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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

Avoid these Common Mortgage Mistakes:For many homeowners, it's easy to get caught up in all of the excitement, and stumble into one or more of these embarrassing mortgage mistakes. Unfortunately I see it very often.Getting a Standard Variable Rate loan:Banks love nothing more than putting customers into a Standard Variable Rate. They heavily promote the extra flexibility and offset facility. The reality is it is very rarely worthwhile for the average customer to pay the higher rate for the extra features.Even if you have a large amount of money to put in an offset account, you could achieve much the same thing with a basic loan with a redraw facility and pay a much lower interest rate. If you want a fully featured loan, compare the costs of these extra features to the lender's cheaper products. Or better yet, push for a liefetime discount package on the standard loan and get the best of both worlds.Honeymoon Rates:There's an old saying - 'if it sounds too good to be true, it probably is'. This is the best way to describe 'Introductory Rate' home loans. Don't get me wrong, there are some great offers out there, and a low rate in the first year or two can make all the difference to your weekly budget. But to avoid future pain, it's best to base your comparison on the rate that you will pay when the honeymoon is over.Rate Rises:Part of the loan application process is to work out what you can afford to repay, based on current interest rates. But did you consider what would happen to your budget if interest rates were to increase? Many Australians have been caught out in the past, with disastrous consequences. The best way to avoid becoming one of these cautionary tales is to be mindful of both your purchase price, and the impact that future rate rises will make on your loan repayments. Savings Fatigue:It was a long and difficult journey to save that deposit. You might have taken on extra work, missed out on overseas travel, avoided fine dining or sacrificed your cable TV. But now is not the time to let your hair down - especially if you haven't reached your settlement date. After you hand over the deposit, you'll still need to ensure that you can cover stamp duties, conveyancing fees and moving costs. For the unlucky few, there could even be unexpected maintenance costs after you settle. (It's funny how the hot water service always seems to hang in there until the worst possible moment). So try to keep your good money habits going a bit longer.Don't blow the budget:Most of us take the time to think about how much we want to spend before we start making an offer on our next home, or gesturing wildly at an auction. But sometimes we get carried away and don't want to risk missing out on our dream home. So who really wins in this scenario? The vendor and the real estate agents of course! Not the proud new home owner, who has just committed to a purchase price and mortgage that he can't really afford.Inflexible loans:Just like electronics and furniture, when it comes to a mortgage you get what you pay for. There are some very cheap (and nasty) options available to borrowers. Some of these might seem appealing but it's important to consider the features that you need in a loan - today and a few years down the track. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

Cure your confusion today - 9 steps to purchasing your first home.Do you start to get a headache when you think about everything involved in getting a home loan? Don't despair. Many other borrowers have felt the same way in the past. It can seem a little overwhelming at first, but really, there are 9 simple steps that will carry you from tenant to proud home owner with minimal fuss.1. PreparationThe first step is to get all of your ducks in a row, ready for your meeting with a mortgage broker. Make a list of all of your assets and your liabilities, taking into account your living expenses, loan repayments and student debts etc.Spend some time looking at the different loans available, so that you can be ready to ask plenty of questions when you meet your mortgage broker.2. First MeetingYour mortgage broker will have his/her own way of doing things, but usually will give you a run-down of their panel of different lenders, what fees and commissions they charge, and the information they need from you.The next step will be a discussion around your financial position, how much you need to borrow and what sort of loan products might be best for you. Your mortgage broker will then collect all of the relevant information needed to complete your application.3. ApplicationYour mortgage broker will review your application and make sure that all of the details are accurate and complete. They will provide some information to the lender about your ability to service the loan and then they will submit the application on your behalf.4. Pre-approvalIf all goes well between your mortgage broker and your chosen lender, the next step is Pre-approval, or Conditional Approval. This allows to you start looking for a property, because the lender has advised you that you're likely to be approved, and the approval amount. There will be some conditions attached, and nothing is guaranteed.5. ValuationThe lender will investigate the value of the property you choose to make sure the market value is similar to your purchase price, and also to ensure that they are happy with the property itself.6. Unconditional ApprovalOnce you meet all of the conditions that the lender sets out, you will receive unconditional approval.7. Letter of OfferYour letter of offer makes it all official, and it's important to make sure you understand all of the conditions, fees and details contained within the document. It's a good idea to ask your solicitor or conveyancer to help at this stage if you're unsure.8. Mortgage DocumentsThe mortgage documents will usually arrive with your letter of offer, and they outline the contract between you - the borrower, the lender and the State Revenue Office. This should be carefully reviewed by your solicitor or conveyancer.9. SettlementThe settlement date is the big one - when the money actually changes hands, all of the different costs are settled and you can then take possession of the property. This step should be handled by your solicitor or conveyancer in conjunction with the legal representatives of each party involved.If everything goes according to plan - this is the part where you pick up the keys, grab a bottle of bubbly and start celebrating. Congratulations - you're now a property owner! ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

The secret way to save a Deposit - without sacrificing your lifestyle.One of the biggest challenges for many first home buyers is finding a way to save enough for a deposit. For those of us who couldn't wait to leave home and find some freedom - moving back in with parents is not always an appealing option. And if you're still in your twenties you might not feel ready to sacrifice your social life, and commit to a few years of watching movies on the couch.Well, it might surprise you to learn that there's a secret way to save that deposit, live comfortably and still enjoy the odd dinner at a restaurant. It doesn't involve moonlighting, or donating your organs on the black market. And it might even allow you to travel a bit, or enjoy a little luxury while you watch your bank balance grow.So what's this big secret?Well, let me ask you a question first. How much do you spend per year on your living expenses right now? Not food, but costs associated with renting your place of residence. The figure should include rent, utilities, internet connection and any maintenance that you're responsible to pay for.For most couples, this figure would easily add up to about $25,000 per year.How quickly could you save a deposit if you didn't have to pay anything towards your household expenses? Pretty fast - I would imagine. That's the benefit of house-sitting.Offering your services as a house-sitter allows you to live comfortably while saving money at the same time. Let's face it - if you're looking for a house-sitter, chances are that your house is pretty nice to start with.You don't need to charge a fee for this service, because you're saving tens of thousands just by living in someone's home and not paying rent and household bills.You could experience different areas before you commit to buy in a particular suburb or town. This could give you an excellent opportunity to really research your purchase before you jump in head-first with a 30 year mortgage.Depending on your work situation, you might even be able to do some travelling, and see a bit of the world while you continue to save.If you're interested in doing some house-sitting while you save your deposit, there are a couple of websites that you can browse for opportunities:www.mindahome.com.auwww.aussiehousesitters.com.auwww.houseminders.com.auThis concept isn't for everyone, and it might not suit those who already have a lot of nice furniture. But if you don't mind moving around a bit, and perhaps walking a dog or feeding a cat - this could be a great opportunity to save your deposit in no time at all. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

Did you know that three in 10 mortgages arranged by mortgage brokers are in rural and regional areas, improving access to home lending for rural and regional Australians � in locations where there may be few or no bank branches. www.afgonline.com.au/broker/keep-competition-alive/youtu.be/zsjxPB6ITRg ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

2 weeks ago

"With fewer first buyers taking out home loans than a decade ago, one might have concerns for the future of the Great Australian Dream.Just because you can�t afford what or where you want to buy first up, doesn�t mean you should forego property altogether. The longer you leave getting into the market, the harder it may become. Property prices may increase beyond your reach or the cost of living in general may climb, making it harder to save for a deposit.While you may not be able to afford your dream home now, you can still take steps to help you afford it in the future.Be prepared to compromiseWhile location remains the main mantra when it comes to property, many buyers may have to compromise on where they stake their first claim.Rather than honing in on houses, consider an apartment, or even older units, which often have bigger floorplans and greater scope for renovating and redecorating.If scoping inner-city or even middle-ring suburbs, set your sights on outer suburbs with greater affordability. You may have to commute further if you work in a CBD, and it may take longer to get to the beach on a hot summer�s day, but living on the urban edge can have lifestyle advantages.You can escape quicker for a tree change, with many outer suburbs bordering bushland or national parks.Amenities and infrastructure, such as shopping centres and hospitals, are often newer on the city fringe.Your area is likely to be full of other first-home buyers, which often include young couples and young families, bringing energy and a greater sense of community to a neighbourhood.Buying in newer, outer suburbs also means newer houses or apartments, which usually means fewer maintenance and repair costs, and more contemporary building materials, d�cor and landscaping.You may find that once you are in the market and have paid down some of your first mortgage, you are in a stronger financial position to revisit your original desired location.Make a moveIt�s a bold idea � and certainly not for everyone � but is the quest for your first property an opportunity to live in a totally new city or region?Apparently around one in three of us was prepared to pack up and move interstate to improve our financial lot in 2012, if the ING DIRECT Financial Wellbeing Index of that year was anything to go by.The reality is around 300,000 to 350,000 Australians move interstate each year4, according to the latest available data from the Australian Bureau of Statistics. While many may move for family or work reasons, first home buyers looking for more affordable digs could also be part of this migration.Before you call the removalists consider:Financial security � can you secure employment before you make the move?Lifestyle � what local hobbies, amenities and attractions will help you have a fulfilling personal life?Family � if you have a partner and/or kids, will they be happy in the new location?On the flipside, relocating to a new state, city or town is a potentially exciting opportunity to experience new people and places, and pocket some savings along the way.Become a rent-investorThere�s no rule that says you have to live in your first property. Many first home buyers are challenging convention by rent-investing � renting where they want to live and buying an investment property in a more affordable location.The objective for these renters is to buy where they can afford to get a foothold on the property ladder. That could be another suburb in the same city or a town in an entirely different state.As with any investment, the key is to choose a property on financial merit, not emotion. Are you looking for capital gain over time or high rental yields right away?The investment property can be positively geared, where the rent exceeds the cost of the mortgage and upkeep to give you a profit, or negatively geared, where the rental income is less than the cost of owning and managing the property, creating a tax deduction.Seek legal and financial advice so you are well informed about how renting and taking on an investment property impacts your finances and tax obligations.Maximise incentivesVarious grants and stamp duty concessions are offered in each state and territory to give first home buyers a leg up. As at February 2017, here�s a snapshot of what�s available and where, do bear in mind that things could change, so double check before you commit.For more information, visit www.firsthome.gov.au" www.firsthome.gov.au ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

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