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Mortgage myths debunked
Time and time again, we are asked about common myths about obtaining a mortgage. We have complied some of the main ones we hear all the time and would like to debunk them. You may be closer to obtaining a mortgage than you think. Here are the top three myths
LVR. What is it?
You would have more than likely heard the term LVR if you have spoken to a finance professional about your home loan options. LVR or Loan to Value Ratio is the percentage that the bank will lend against the value of your property. For example, if your home is worth $1m, and you borrow $500,000 […]
Living expenses. How do they impact your loan?
The more you earn, the more you spend. That’s the common belief among lenders. Lenders also believe where you live determines your living expense. If you live in an affluent area, then your expenses are likely to be more than someone living in a lower socio-economic area. These days, with open banking being becoming more […]
Interest only loans
An interest only loan is when the bank will ask you to only pay the interest component of your loan repayment and not your principal amount. Compared to a principal and interest loan where you are required to reduce the loan balance with each repayment. The loan balance remains the same on an interest only […]
How to improve your credit score
Your credit score is one of the major things a lender considers before deciding if you are worthy for a loan. Your credit score is based on personal and financial information that’s kept in your credit report. You can access your credit report for free from the many reporting agencies that operate in Australia. Every […]
Do you receive government support?
Many people believe that low-income earners or people that receive Centrelink support do not qualify for a loan, but that’s not always the case. Stay at home mothers (or fathers) usually qualify to receive Family Tax Benefit or parental leave from Centrelink, depending on their overall household income. Lenders will allow you to use that […]
Buying a property with someone other than your spouse?
It’s usually a great idea at the time, and many siblings or family members consider joining their savings to buy a property together. The double income and the combined savings usually allow you to buy a bigger and better property, which may mean that you make more gains in the future, compared to the property […]
Bridging finance. What is it?
You have outgrown your current home and need to upgrade. This means you either turn your current property into an investment and purchase a new property. The other option is that you sell your current property and buy another. The latter could be quite stressful when trying to coordinate settlement of the sale of your […]
Are you self-employed?
When applying for a home loan, a lender must be satisfied that you can afford the loan you are applying for. Usually, they will review payslips, tax returns and other income to determine how much you can afford if you are employed by somebody else. Lenders assess self-employed income a little different, as It’s not […]
Are you a professional?
Did you know lenders offer certain professionals discounts and additional loan features that they don’t offer the other borrowers? Medical Professionals (doctors, surgeons, dentists, optometrists, physiotherapists), sports and entertain professionals, legal professionals and accountants meeting a certain criteria are offered higher loan amounts, better interest rates and don’t pay lenders mortgage insurance. The banks view […]
