Business, Equipment & Home Finance for SMEs
While increasing interest rates and softening property values are challenging for many, they provide an opportunity for lowly geared borrowers looking to buy an investment property. There are many factors to consider when purchasing an investment property, the most important being property selection – however others to be aware of include: Investment Property Finance - [...]
Mortgage Offset Accounts are a popular tool that many borrowers use to reduce the interest they pay on their home loans and to pay them off faster. Most Lenders offer Mortgage Offset accounts, however how they work can vary from Lender to Lender. Borrowers can also use strategies to increase the amount offset. How Mortgage [...]
Many businesses and homeowners are asking the question, "should I refinance to get a better deal"? (This is not surprising given the recent rapid rate increases with the prospect of more to come). According to the Australian Bureau of Statistics, "the value of borrower refinancing of owner-occupier housing loan commitments between lenders rose 9.7 per [...]
The federal government first home buyer Home Guarantee Scheme is designed to help eligible applicants purchase their first home. According to the National Housing Finance and Investment Corporation, since launch, the Scheme has assisted more than 61,000 people purchase or build their first home. The intent of the Scheme is to help Australians with less [...]
With interest rates rising, a question I am regularly asked by clients is, “should I fix my home loan interest rate, or is it better to stay variable?” The answer is that it depends on your situation & whether fixing the rate, will provide greater certainty and peace of mind. However, whilst fixing your rate [...]
Many people in Australia use negative gearing to build long-term wealth. It is, however, not without risks, and it is critical to understand how it works before embarking on this journey. In this post, I'll focus on using negative gearing to purchase investment property, however, many Australians also use it to buy shares. What is [...]
It is easy to overlook important investment property risks in an environment where values have been steadily increasing They may not be immediately apparent, but they do exist and should not be ignored: Property Investment Risk - Poor Property Selection Poor property selection is one of the fundamental property investment risks that need to be [...]
Over the past decade, we have seen an increasing number of individuals turning to property investment to create wealth and secure their future. As prices have escalated, more homeowners have looked to use the increased equity to move into property investment. Key Drivers of Property Investment The key drivers of property investment over the past [...]
When you apply for finance to purchase a home or investment property, Lenders will assess your application both on the actual interest rate and importantly, their Loan Assessment Rate. It is also applied to both new and most existing borrowings. (An Affordability Margin is also likely to be added to most business type borrowings) The [...]
A key element of Home Loan eligibility that often confuses and frustrates borrowers is the degree to which Lenders now review an applicant’s monthly expenditure. Even experienced borrowers or investors are surprised by the granular detail involved! Home Loan Eligibility - House Expenditure Method (HEM) In the past, Lenders determined your home loan eligibility by [...]
