An offset account is a popular financial tool for Australian homeowners. It’s a simple yet powerful way to reduce the amount of interest you pay on your home loan while keeping your savings accessible. But like any financial product, it comes with both costs and benefits. Here, we’ll break it all down in a way that’s easy to understand, so you can decide if an offset account is the right fit for your financial goals.
Commercial property finance secrets exposed
When financing a commercial property purchase the mainstream mentality is,
A common challenge for business owners when seeking finance is the need to have current (latest) financials, with the current year, not more than 18 months old (generally).
Having current financials certainly gives borrowers the widest selection of lender options available and therefore the best chance of securing the most competitive finance terms available. Read more
A lease doc loan is a simplified loan application process some banks use to assess commercial investment property finance deals.
It is not available for residential property loans.
If a deal meets the lease doc policy, then this can substantially reduce the amount of paper work required as compared to a standard / full doc commercial / business loan application.
What is a family guarantee?
A family guarantee is typically a means by which parents can support their child in getting onto the property ladder by using the equity in their home to reduce the size of a cash deposit and / or avoid the need to pay Lenders Mortgage Insurance (“LMI”).
Read on to understand what this means for you.
What is Lenders Mortgage Insurance (“LMI”)?
Lenders Mortgage Insurance or LMI is a one-off insurance premium payable when you take out a new loan. The LMI premium is added onto your home loan and payable over the loan term.
Read on to find out how you might be able to avoid LMI on your property purchase…
What is a construction loan?
A construction loan is a loan from a bank which allows you to either build a new home or complete a major renovation on an existing home.
What is a fixed rate lock?
When taking out a fixed rate loan, it is important to understand that the fixed interest rate is set on the day of drawdown / settlement, not necessarily the advertised rate when you apply for the loan.
After the tightening of lending standards over the past 12 months, it looks like things are loosening which will provide a big boost for,
This is because, earlier this week the Australian Prudential Regulation Authority (APRA) who is responsible for overseeing the prudent lending standards in Australia announced that it had begun consultation with major lenders or ADIs (Authorised Deposit-Taking Institutions) to ease lending standards for new and existing residential mortgage applicants.
A question that I’m continuously asked by my clients is, “Should I fix the interest on my home loan?”. And fair enough too — if there are ways to save from paying unnecessary fees to the banks, we should be onto it.
So here are my 5 questions to ask yourself, to determine whether fixing your loan is right for you.
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