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Back in March 2020, at the start of the pandemic, 13.38% of new borrowers were choosing fixed-rate loans and 86.62% were choosing variable. But in March 2024, a staggering low of only 1.40% of new loans were fixed, compared to 98.60% variable, according to the Australian Bureau of Statistics.The reason so many borrowers are going variable right now is because of a widespread belief that interest rates are at or near their peak, which means variable borrowers would benefit from any future rate cuts. Conversely, in July 2021, when interest rates were at record-low levels, 46.02% loans were fixed, while only 53.98% were variable.If you’re wondering whether fixed or variable is right for you, here are the main pros and cons of each option: Get expert help comparing fixed & variable loansHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Variable-rate loans scale new heights of popularity

Find the Best Commercial Property Loan & Real Estate Finance Broker When it comes to securing a commercial property loan or navigating the complexities of real estate finance, finding the right broker can make all the difference. A skilled commercial property loan and real estate finance broker can help you access the best loan options, negotiate favorable terms, and guide you through the process with expertise and efficiency.If you're in the market for a commercial property loan or seeking assistance with real estate finance, it's essential to partner with a broker who understands the intricacies of the industry. In this blog, we will explore the importance of finding the best commercial property loan and real estate finance broker, the key qualities to look for in a broker, and how working with the right professional can streamline your loan process and maximize your real estate investment opportunities. What is a Commercial Property Loan?A commercial property loan is a type of loan used to purchase real estate property that is intended for business or investment use. Unlike residential loans, commercial loans have different eligibility criteria, terms, and rates.Various types of properties are eligible for commercial property loans, including office buildings, retail spaces, warehouses, and more. Understanding the specific requirements for each property type is crucial when seeking financing.How to Qualify for a Commercial Property Loan Qualifying for a commercial property loan can be a complex process, but there are several key factors that lenders consider when evaluating a loan application. Here are some tips to help you qualify for a commercial property loan:Credit Score: Your credit score is a critical factor in determining your eligibility for a commercial property loan. Lenders typically look for a credit score of at least 680, although some may require a higher score. Before applying for a loan, it's a good idea to check your credit score and take steps to improve it if necessary.Debt-to-Income Ratio: Lenders also consider your debt-to-income ratio when evaluating your loan application. This is the ratio of your monthly debt payments to your monthly income. Ideally, your debt-to-income ratio should be below 43% to qualify for a commercial property loan. To improve your chances of qualifying, pay down your debts and increase your income.By understanding these key factors, you can take steps to improve your chances of qualifying for a commercial property loan.Why Work with a Commercial Mortgage Broker? Working with a commercial mortgage broker can offer numerous benefits, including access to a network of lenders, expert advice on financing options, and assistance in negotiating favorable terms.When working with a finance broker, the process typically involves assessing your financial needs, comparing loan options from various lenders, and guiding you through the … [Read more...] about Best Commercial Property Loan & Real Estate Finance Broker

Are you in the market for a new car and looking for the best car loan to finance your purchase? Working with a car loan broker can make the process a lot smoother and help you secure the best deal on your car loan. In this article, we will discuss how to choose the right car loan broker, finding the best car loan for your new car, working with a car loan broker for used cars, the benefits of choosing a fixed rate car loan, and getting the best deal on a car loan from dealerships.How to Choose the Right Car Loan BrokerWhen selecting a car loan broker, there are several factors to consider to ensure you find the best car finance option for your needs. A reputable car loan broker will work with a network of lenders to help you secure the most competitive loan terms and loan amount. They should also offer pre-approval services to streamline the car loan application process and provide you with financial security.Some essential questions to ask a car loan broker include inquiring about their fees and charges, understanding the car loan options available to you, and discussing your repayment options. By using a car loan broker, you can save time and effort in finding the right car loan for your specific circumstances.Finding the Best Car Loan for Your New Car When purchasing a new car, it's crucial to understand the different car finance options available to you. Whether you opt for a fixed rate loan or variable rate loan, a car loan broker can help you navigate through the complexities of car finance and secure the best car loan deal.Securing pre-approval for your car loan can give you an edge when negotiating with car dealerships, as you will know the loan amount you are eligible for and can focus on finding the right car within your budget. By working with a car loan broker, you can ensure a smooth and hassle-free car buying experience. Working with a Car Loan Broker for Used CarsWhen considering purchasing a used car, exploring asset finance options can provide you with the flexibility needed to finance your purchase. A car loan broker specialising in used car finance can help you find the best financing options, tailored to your specific requirements.Repayment options for used car loans may vary, and it's essential to discuss the terms of the loan agreement with your broker. Whether you're looking for a fixed rate loan or variable rate loan, a car loan broker can assist you in finding the most suitable repayment plan for your budget. Benefits of Choosing a Fixed Rate Car Loan Opting for a fixed rate car loan offers financial security and stability, as your interest rate remains unchanged throughout the loan term. Understanding the advantages of a fixed rate car loan, such as predictable monthly repayments, can help you make informed decisions when choosing the best car finance option for your new or used car.Factors to keep in mind when selecting a fixed rate car loan include comparing … [Read more...] about Get the Best Vehicle Finance Broker for Your Car Loans

Financial brokers play a vital role in the world of finance, serving as intermediaries between buyers and sellers of financial products and services. They help individuals and businesses navigate the complex world of finance and make informed decisions about their financial futures.If you're new to the world of finance, you may be wondering what exactly a financial broker is and what they do. In this article, we'll explore the role of financial brokers in finance, and how they can help you achieve your financial goals. What is a Financial Broker? A financial broker is a professional who acts as an intermediary between individuals or businesses seeking financial services and the institutions that provide them. They assist clients in finding suitable financial products and services that meet their specific needs. A financial broker may specialise in various areas such as mortgages, securities, or insurance.Financial brokers are required to obtain specific licence and certifications to operate legally within the financial services industry. Regulatory authorities oversee their activities to ensure they adhere to ethical standards and guidelines. It is essential for clients to verify a broker's credentials and licensing before engaging their services to protect their financial interests.There are different types of financial brokers available in the market, each specialising in specific financial services. Some common types include mortgage brokers, investment brokers, and insurance brokers. These professionals provide expert advice and facilitate transactions on behalf of their clients to ensure their financial goals are met efficiently. How Can Finance Brokers Help You? Finance brokers can help you in a variety of ways when it comes to managing your finances. Here are some of the key ways that finance brokers can assist you: Access to a Wide Range of Financial Products and Services: Finance brokers have access to a wide range of financial products and services from various providers. This means that they can help you find the best financial products and services to meet your specific needs and goals. Expertise and Knowledge: Finance brokers have extensive knowledge and expertise in the world of finance. They can help you understand complex financial concepts and make informed decisions about your finances. They can also provide you with personalised advice and guidance based on your unique financial situation. Time-Saving: Working with a finance broker can save you time and effort when it comes to managing your finances. Instead of having to research and compare different financial products and services on your own, your broker can do this for you. This can help you make more informed decisions more quickly and efficiently. Factors to Consider When Choosing a Finance Broker When selecting a finance broker, clients should consider factors such as the broker's qualifications, industry … [Read more...] about What is a Financial Broker? Understanding The Role of a Finance Broker

Property buyers are being forced to compete hard in many markets around Australia, so how can you improve your chances of securing your dream home? Here are five tips to beat out other buyers: Have a home loan pre-approval in place. This will make you look more attractive in the eyes of real estate agents, because it will position you as a serious buyer who can move quickly if their client accepts your bid. Build good relationships with agents. Real estate agents work for vendors, not buyers, so they prioritise their clients' interests. But if you can establish a good working relationship with agents – even while keeping some of your cards up your sleeve – they might favour your offer over those of other buyers. Be realistic with your offers. If you're buying via private treaty, avoid the temptation to begin with a lowball bid, otherwise agents will take you less seriously than the buyers who are making serious offers. Make an offer before the auction. If you're buying via auction, get ahead of the competition by making an offer before the auction. If your price matches what the agent expects to get at auction, they might tell their vendor to play it safe and accept your offer. Be flexible around settlement. Tell the agent you're willing to accept different settlement conditions (assuming that’s possible). This might include a short or long settlement, or a scenario in which you let the vendor rent the property for some time before you move in. Get in touch if you need a pre-approvalHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Five tips to beat out other buyers

Home loan repayment is a crucial aspect of homeownership, but what happens when you encounter financial difficulties that make it challenging to meet your monthly obligations? In such situations, being able to defer your mortgage payments can provide some relief. Let's talk about the details of home loan repayment deferral. Understanding Home Loan Repayment DeferralDeferring your home loan repayments involves temporarily postponing the payment of your mortgage for a specific period. This can be beneficial when you are facing financial hardships or unforeseen circumstances that affect your ability to make timely payments.When you defer your home loan repayments, the repayment amount usually gets added to the loan balance, extending the life of the loan. This allows you to address immediate financial concerns without defaulting on your mortgage.If you are considering deferring your home loan repayments, it’s essential to get in touch with your lender to discuss your situation. They can provide guidance on the deferral process, eligibility criteria, and how it may impact your loan terms.What Is Mortgage Deferment? Mortgage deferment is similar to loan repayment deferral, where you can temporarily postpone your mortgage payments. It is a useful option during financial hardships but may have implications on your credit score and overall financial health.Delaying mortgage payments through deferment may not directly impact your credit score, but it can show up on your credit report. It's crucial to understand the potential consequences and how it may influence your creditworthiness.If you are facing financial difficulties and considering mortgage deferment, reaching out to your lender is advisable. They can guide you through the process, assess your situation, and determine if deferment is a viable solution for your circumstances.The Difference Between Defer and Forbear Defer means you can temporarily stop making monthly payments towards your home loan balance. However, it's important to note that fees and charges may still be added to your loan during this period.On the other hand, if you opt to forbear on your mortgage repayment deferral, you may enter into a payment arrangement with your lender to help with repayments. This could involve making minimum repayments or agreeing on a higher monthly payment that will be payable at the end of your deferral period. Terms and conditions for this loan in the future will be outlined by your lender.Keep in mind that before deferring or forbearing on your loan, it's crucial to understand the terms and conditions set by your lender, who should hold an Australian Credit Licence.Dealing with Financial Hardship and Loan Repayment When experiencing financial hardship that impacts your ability to make mortgage repayments, explore all available options, including deferment. Selling your home is a drastic measure that should be considered after exhausting … [Read more...] about Home Loan Repayment: Can You Defer Your Mortgage Payments?

When you're looking to buy a home, you have a big decision to make - should you use a mortgage broker or go directly to a bank? Mortgage brokers can be really helpful, but there are also some things to consider.On the plus side, mortgage brokers have access to lots of different loan options from many lenders. This means they can shop around and find you the best deal. They also know all the ins and outs of mortgages, so they can guide you through the process and make sure you understand everything. This can be really valuable, especially if it's your first time buying a home. The downside is that you'll have to pay the broker a fee for their services. But many people find that the money they save on their mortgage makes up for this.What is a Mortgage Broker and How Do They Help?A mortgage broker is a professional who acts as an intermediary between borrowers and lenders, helping individuals secure home loans. Mortgage brokers assist home buyers in finding the most suitable loan options that align with their financial circumstances and requirements. They work closely with clients to understand their needs and financial goals, ensuring they find a loan that fits their specific situation. One of the key advantages of using a mortgage broker is the access to a wide range of loan products from various lenders. Brokers have relationships with multiple lenders, enabling them to offer a diverse selection of mortgage options to their clients. Additionally, brokers can help navigate the complex mortgage process, providing guidance and support from application to closing.While mortgage brokers offer valuable services, there are some drawbacks to consider. Brokers may charge fees for their services, which can add to the overall cost of obtaining a home loan. Additionally, some borrowers may prefer to work directly with a lender to ensure transparency and directly negotiate terms.How Does the Mortgage Process Work with a Broker?When working with a mortgage broker, the application process typically involves an initial consultation where the broker assesses your financial situation and goals. The broker then shops around for loan options on your behalf, presenting you with suitable choices based on your needs. Once you select a loan, the broker assists with the paperwork and liaises with the lender to secure approval.In Australia, using a mortgage broker can offer numerous benefits, including access to exclusive loan products and competitive interest rates. Brokers have in-depth knowledge of the local housing market and lending landscape, allowing them to provide tailored advice to home buyers.Working with a mortgage broker provides personalised guidance throughout the home loan process, whereas going directly to a lender may limit your options and personalised assistance. Brokers can help you navigate complex financial terms and ensure you find the best mortgage deal for your circumstances.What Are the Pros and Cons of Using a … [Read more...] about What is a Mortgage Broker Good For? Why You Should Use a Mortgage Broker

Despite the rise in inflation and interest rates over the past two years, “nearly all borrowers continue to service their debts on schedule”, according to the latest Financial Stability Review from the Reserve Bank of Australia (RBA).“Households with lower incomes, including many renters, have felt these budget pressures acutely,” the RBA said.“Most mortgagors have experienced an increase in their minimum scheduled payments of 30–60% since the first increase in the cash rate in May 2022. Sharply higher housing costs (for borrowers and renters) and broad-based cost-of-living pressures have weighed heavily on the budgets of many households and contributed to very weak consumer sentiment.” Nevertheless, borrowers have found a way to get by.“While housing and personal loan arrears have increased since late 2022, they remain below their pre-pandemic peak,” the RBA said.“At the same time, a small but increasing share of borrowers have requested and received temporary hardship arrangements from their lenders, which has contributed to arrears rates remaining a little lower than would have otherwise been the case.”Need a home loan? Let’s chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Borrowers staying on top of mortgages, despite higher cost of living