Change your ways

 Securing finance from a lender for a home loan can have a few hurdles to overcome. An experienced mortgage broker can help to ensure your loan application ticks all the right boxes, and your financial details are up to date and in order. Having up to date financials will increase your prospects of an approval and give you access to the highest number of possible lender options and the most competitive deal.

There are two repayment types with home loans – principal and interest or interest only home loans. A home loan with principal and interest (or P&I) repayments is one where you pay back the money you borrowed from the lender – also referred to as the ‘principal’ of the loan – at the same time as you pay off the interest your lender charges you. This means the amount you repay each week, fortnight or month is likely to remain fairly stable throughout your loan, unless your lender changes your interest rate or ongoing fees. Interest-only home loans are loans in which only the interest portion is paid off, not the principal, for the first one to five years of a loan, before the loan reverts to P&I repayments. As a result, your repayments may be cheaper initially but are likely to go up substantially once you start paying off the principal component. In Australia, this type of loan is generally more suited to property investors than people buying a home to live in, although it may also be attractive to people who want cheaper initial repayments on their first home.

Refinancing might be a good option if you need to extend your repayment term or your credit score has improved and you’re able to obtain a more competitive interest rate as a result. Securing a lower interest rate through a refinance reduces your cost of borrowing so you’ll pay less on your personal loan overall.

Care should be taken if you are currently on a fixed rate loan or thinking about fixing your home loan rate as break costs may apply. It is important to discuss your plans and goals with a broker before making a decision to refinance your home loan.

There are no limits as to how often you can refinance your home loan, however, you should take into account the time and costs of refinancing. If you have been placed into a well-priced home loan which suits your needs and requirements, most borrowers would refinance their home loan every 3 to 5 years.

 A small business owner might require extra finances to support the business with additional cashflow, growth and expansion, purchasing stock and equipment, renovations and fitouts for the business premises, or to cover unforeseen expenses such as repairs and maintenance, additional labour costs, insurance premium increases, material price rises, and energy cost increases and they come in different forms.

Term loans: This type of loan involves a principal sum borrowed and advanced to the customer, which is then repaid in instalments over a period. Term loans can be over periods as short as 3 months and up to 10-year terms. Repayments can be monthly, weekly, and even daily. Interest rates can be fixed or variable, and initial interest only repayment terms may be offered.
Overdraft: An overdraft is where the bank authorises a business bank account to go temporarily into a negative balance. There is usually a fee involved for every time the account goes below a zero balance, as well as an interest rate applied to the overdrawn funds. This is short term lending.
Line of Credit: A line of credit is a separate account which can be drawn upon by the business up to the approved limit. Each month the business is required to repay the interest on the drawn funds, however, repayment of the principal is optional provided the interest repayment is being met. These facilities are better suited to businesses with a frequent and ongoing need to access funds on a short-term basis to minimise the impact to the business from the timing of cash inflows and outflows.

 Vehicles come in all shapes and sizes and suit a range of purposes. Are you starting a family? A people mover may be your go to. Perhaps you want to spend more time in the great outdoors? Then a 4×4 is the solution. Need a bigger car to tow a horse float? Those are out there too.

So, you’ve assessed what you’d like in a vehicle, have you thought about how to obtain it? we can help guide you through the process of getting finance for that dream vehicle for both personal and business uses. We are well connected in terms of lenders and have extensive knowledge of the lending process so we are confident we can help.

Pre-approval for a home loan, also known as conditional approval, confirms how much you can borrow from your lender. It is conditional upon the property you wish to purchase being acceptable security, and your lender confirming your income and other information provided in your application.

Pre-approval gives you a clear budget for a new home and lets you know how much you can borrow from your lender. This helps you start your search looking at properties that are within your budget so you can be realistic, and begin thinking about what you can and can’t afford.

If you have pre-approval from a lender, this could put you in a good position when you go to open inspections and auctions, as real estate agents will know you’re a serious buyer who has their finances in order and is ready to make a decision.  For most lenders, pre-approval is valid for 90 days, it can be extended although this will mean resupplying your income and expense information to your lender.