Is one phone call all it takes to secure a lower rate?

With official interest rates trending downward, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal.

But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there?

Continue reading Is one phone call all it takes to secure a lower rate?

Why you should consider a Home Loan Health Check!

Within the home loan industry there are numerous offers to provide a review of your current loans, whether they call it a “Home Loan Health Check”, “Loan Review”, or similar.

What does this mean? Continue reading Why you should consider a Home Loan Health Check!

Fixed V’s Variable Interest Rates – Pro’s and Con’s

With Australia currently enjoying historically low interest rates there are many borrowers asking themselves “should I fix the interest rate on my home loan?”

Indeed at many social functions the topic of interest rates is often raised and it seems that there are many views and opinions on the best strategy, which just adds to the confusion for many of us. Continue reading Fixed V’s Variable Interest Rates – Pro’s and Con’s

Interest Only Loans – Time Bomb or Hiccup?

Over recent months it has been very noticeable that banks have been increasing interest rates and tightening credit policy for interest only loans, regardless of whether they are for Investment or Owner Occupation.

The appetite for interest only lending has diminished significantly and through pricing and policy banks are encouraging borrowers to consider principal and interest repayment options. Continue reading Interest Only Loans – Time Bomb or Hiccup?

Why use a Mortgage Broker?

Mortgage Brokers (also often referred to as Finance Brokers, Mortgage Planners or Credit Advisers) act as an intermediary between lenders and borrowers to negotiate loan facilities.

Over the last 10 – 15 years the usage of Mortgage Brokers in Australia has increased consistently and it is now estimated that approximately 1 in every 2 new home loans in Australia is sourced through a Mortgage Broker.

So why do so many borrowers utilise a Broker rather than going to their local Bank? Some of the benefits and reasons include:

Continue reading Why use a Mortgage Broker?

What is a Family Guarantee Loan

Lets face it, the amount of money a first home buyer needs to save to get a foot in the door of the property market can look to be a mountain to high to climb for many first home buyers.

This has seen the emergence of Family Guarantee Loans over the last decade or so.

But what is a Family Guarantee Loan?

Continue reading What is a Family Guarantee Loan

The “Bank of Mum & Dad”

There are many kids in Australia who have treated their parents as a ‘bank’ as they have grown up. Whether it was getting the newest game or latest technology before they had saved enough pocket money, or even as big as asking for assistance to buy a car in their late teens.

But these days with the cost of housing many kids are seeking much larger withdrawals and assistance from the ‘Bank of Mum & Dad’ to help them get into property ownership.

Continue reading The “Bank of Mum & Dad”

What is Lenders Mortgage Insurance (or LMI)?

Lenders Mortgage Insurance, commonly referred to as ‘LMI’, is an insurance that covers a Lender should a borrower default on their loan and the lender incurs a loss.

As a general rule LMI is payable on Home Loans where the loan to valuation ratio (LVR) is greater than 80% and allows borrowers purchasing property to potentially gain a loan at up to 95% of the purchase price of a home.

Continue reading What is Lenders Mortgage Insurance (or LMI)?