Pre-approval can put you in a position of greater power when it comes to buying property.

There’s a critical phase to house-hunting online and in the real world that puts you in a position of power. 

It’s called pre-approval and it’s free, lasts at least three months and gives you a clear guide on property prices in your buying range. Not having it can cause all sorts of headaches, like discovering you can’t borrow the amount you need for the property you love, and these days, most Agents won’t even talk to you if you don’t have a pre-approval in place as the market is so competitive. So it pays to get yourself sorted with your finances before you start the serious house-hunting and negotiating.

What, precisely, is pre-approval? 

Put simply, it means a lender has indicated that they would be prepared to lend you a certain amount of money with which to buy property. It means you can accurately fix the settings on your property search portal to the maximum amount you’re likely to be lent. And if you did find a property you like, you’d be in a position to make an offer. You’ll also be more attractive to sellers because you’re “good to go” and you won’t make the mistake of falling in love with a $900,000 stunner when you’re likely to be lent $700,000. 

Seven steps to getting pre-approval

1. Book in to see us so we can get the property party started.

2. We’ll review your fiscal footprint (credit history and financial situation).

3. We’ll work out your capacity regarding repayments (how much you comfortably can afford to repay).

4. We’ll cross reference your needs with 60 banks and lenders and their various loan types.

5. We’ll settle on a lender who is a good match for your plans and position.

6. You’ll leave with a number to start home-hunting intelligently…

7. And that number is valid for up to half the year!

Take that next step towards greater power when you start your house-hunting journey with Homeward Finance. Speak to one of our Mortgage Brokers today on

Article source: www.loanmarket.com.au

Disclaimer: This document provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Homeward Finance Pty Ltd ACN 641 670 519 is authorised under LM Broker Services Pty Ltd Australian Credit Licence 517192 and is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.

Considering refinancing? What you need to know.

Refinancing your home loan doesn't have to be complicated, however, it pays to seek expert advice to ensure it’s in fact, right for you. Here are our four steps to getting your loan refinanced :

1. Home loan comparison.
   We’ll scour the market and compare home loan rates, interest, fees and features to determine if refinancing is right for you.

2. Let’s see where you’re at.
   We’ll check in on your current mortgage balance(s), interest rate(s), the amount of time and money remaining on your current home loan(s), mortgage documents, exit fees and any other additional costs. This will help you make a smarter decision when we’re shopping around.

3. Research.
   Have a think about the type of loan you want, including features, fixed or variable, and options like linked offset accounts. We’ll then compare over 60 banks and lenders, all of their loan options, to see what’s right for your current situation.

4. Application time.
   Once we’ve found the right home loan for you, it’s time to get all the paperwork together, which we’ll help you with, and kick off the application process (woohoo!).

If you’re ready to refinance or would like to have a chat, let’s talk! We’ll help you understand your options and take that next step to see how you could save more, sooner. 

Article source: www.loanmarket.com.au

Disclaimer: Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Keep room in your budget for home loan fees

When you’re planning for a mortgage it can be easy to only focus on the biggest expense - the value of the property. 

It makes sense - home loans and deposit calculations will be largely determined by the house price but when preparing your finances it’s just as important to be aware of the additional fees which come with home borrowing, these could include: 

Home loan application fees

These cover things like the administration costs.

Market valuation of the property

This can change from lender to lender and is sometimes included in the loan application fee.

Lenders Mortgage Insurance (LMI)

This is what protects the bank on the off-chance you default on your loan before you've had a chance to build up your equity. Generally you'll have to take out this insurance if you have a smaller-than-usual deposit (as you'll be considered a bigger risk).

Monthly administrative chargers

These occur once your loan has been approved and will most likely be added to your repayments.

Stamp duty

This is the tax levied by all Aussie states and territories on the purchase of a property i.e when you buy your first home or investment property - stamp duty will be involved.

The amount of stamp duty changes from state to state, territory to territory and depends on a few factors like location, purchase price and property purpose.

Moving fees

There are a few costs to think about for your move in day, these include:

• Movers 

• Car hire if you’re moving furniture from place to place yourself 

• Cleaners 

• Painters 

• You get the jist!

Building and pest inspections

Before you move into your new place, building and pest inspections will be done to ensure there aren’t any issues with the building itself and that there aren’t any pests lying around that could cause damage to your new home.

The legal stuff

During the home loan process, you’ll be using solicitors and conveyancers to prepare all the documentation required and be the contact for the bank and the person you’re purchasing your property from.

These fees and others will vary from lender to lender - a mortgage broker (like me!) can tell you which ones will apply to you and help you budget for them.

To get more detailed information on your situation, let’s talk! 

Article source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Rock bottom rates = time to refinance

It's never been so cheap to borrow…

Low rates aren’t just good news for the influx of first time buyers racing into get their first loan. This is also the right time for existing mortgage holders to capitalise on lender competition and super low interest rates. 

Despite interest rates dropping to historic lows, less than ten percent of mortgage holders in Australia have refinanced. That means millions of customers are paying extra interest…for no reason or benefit. That’s the definition of crazy! Especially when you have a broker like me that's here to do the heavy lifting for you. 

Do you know your home loan interest rate? 

If no, you aren't alone. About half of surveyed home loan holders don’t know their rate! Let's talk and I can help work out the savings available.

Three great reasons to refinance:

1. Leverage equity. Refinancing a home loan can allow you to free up the equity in your assets to buy another property. 

2. Redeploy repayments. Lock in lower rates before they rise again, so you can choose to pay more off the principal or perhaps take on a second property.

3. Better fit. This can be a great chance to consider a different product type, consolidate other debts, shave years off your loan, or access exclusive deals. 

Competitive home loans are ever changing and paying extra interest on an uncompetitive loan is the price paid for not reviewing and refinancing. At the end of the day, interest is just a payment to the bank for the privilege of borrowing their money. Interest is not going towards the value of your home, so there is no benefit to paying more of it. Just to be plain.

No lender will offer you a deal if you don’t ask. Let us compare over 1000s of other loans for you, and see if you can save you a $#!% tonne. Get started now or give us a call to make an appointment on (08) 8179 0500.

Article source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Understanding different loan types

Getting your home loan right at the beginning can put you in a winning position later. This means understanding what each type of loan is, and whether or not the features suit and meet your needs in both the shorter and longer term.

So whilst it’s important to choose a loan with a competitive interest rate, low fees and a mix of features that suit your needs, it’s good to be in the know with the types of loans on offer.

Here are some of the main loan types to look out for:

Variable rate loan. The rate of this loan has the ability to go up or down as the market changes. Variable rate loans give you flexibility to pay additional funds into your loan and have an offset account, but can also leave you open to rate rises which is something you need to factor in.

Fixed rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises. You are limited to how many extra repayments you make during the fixed term.

Split loan. A combo of the two loans above. You can lock part of your loan as fixed and the other part as variable.

Introductory rate loan. Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.

Construction loan. If you want to build a home or change the structure of your existing home, this is your loan. Most construction loans are interest only for the first year while the build is underway and interest is charged on the amount you draw down on from the loan for building repayments.

At Homeward finance we can run you through the features of each loan and which one could work for you, simply call us on (08) 81790500. Or if you’re ready to start the process, click here to begin!

Article source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Home loan fees explained

If you’re thinking about buying a new home, these are the first three questions you’re going to want to answer.

1. How much can I borrow?

2. What will my repayments be?

3. What fees will I pay?

A lot of people don’t love maths, so they put these calculations in the later basket. But why don’t we work together to get the answers you need, now. We can also discuss the other fees that might crop up, like:

Application fees. A processing fee from the bank for setting up your loan. Some charge it, while others do not.

Lenders Mortgage Insurance (LMI). This one protects your bank or lender if you can’t pay your loan. It’s only applicable if your loan poses a higher risk to the bank or lender – typically when borrowing more than 80% of the purchase price.

Building and pest inspections. Usually around $300-$600 (depending on your property size) this check ensures your building structure is sound, undamaged by pests, and termite-free!

Ongoing loan fees. Your lender may hit you with a regular charge for maintaining your loan. Some waive it, while others might only apply it for specific functions, such as accessing your loan redraw.

At Homeward Finance, we’re here to shine a light on all the hidden fees and charges of buying a property, so why not get in touch with us today to find out more on (08) 8179 0500 or click the link below.

Loan source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.