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Sandra & Peter Erdel - Lift Lending Peakhurst
www.liftlending.com.au Provides mortgage and lending product support to meet personal and investme
Introducing the new home building methods that can save you a lot of time and money.![]()
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In the past, prefabricated houses would connote images of tackiness and shipping container living, but prefab housing is now enjoying an avant-garde revival.![]()
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Today's prefab houses consist of high end materials, follow strict green building practices and are designed by leading architects. Often they have substantially better thermal ratings than brick homes, meaning they actually cost a lot less to heat and cool.![]()
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Some new builders even start with a traditionally built lower floor, then build a prefabricated second floor, being less expensive and much faster than building a standard two-storey home.![]()
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To find out more, download my short introductory PDF article to this style of home that is growing in popularity - Absolutely Prefabulous.![]()
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www.mortgageaustralia.com.au/email/files/absolutelyprefabulous.pdf
How to save money and get rid of your mortgage sooner:![]()
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Do you like to dream about a time when your mortgage will be a distant memory? It could be sooner than you think. Provided you're willing to put in the hard yards, there are a few simple ways to save money and pay off your loan ahead of time.![]()
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- Create a really good budget![]()
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There are budgeting tools available that can help you to plan your household expenses and look for ways to save more. The most important thing is to remember all of your expenses. If you forget about your car registration because it only comes in once a year, your budget might be thrown into disarray.![]()
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When you first put together your budget, try using bank statements or online banking records, as well as any paper receipts in order to account for every household expense. ![]()
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Don't forget to leave some room in the budget in case you need something unexpected - like medicine, a new work outfit, or maybe an anniversary present for your partner. (Although, if this one is unexpected you should give yourself a slap on the hand!)![]()
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- Consider an offset account for your savings![]()
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If you're trying to save as much as possible and get your mortgage down sooner, you can't go past an offset account. The idea here is that you can deposit your money into the account, it's linked with your mortgage but you can access it whenever you want. ![]()
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When your lender calculates the interest on your loan, they will only charge you for what you owe minus your savings. This can save you a lot of money over the life of your loan and allow you to pay it off sooner.![]()
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- Manage your expenses on a credit card - but be very careful.![]()
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If you're fantastic with money, and I mean, really really responsible, it can be helpful to manage your household expenses on a credit card. By leaving your money in savings for longer, you could be earning interest, and with an offset account you could be saving interest on your loan. ![]()
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This theory only works if you pay your credit card off in full at the end of each month.![]()
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The danger here is obvious, but if you have a lot of self-control it can be very helpful in managing your budget to run everything through a credit card. If you have a credit card with a good rewards program, you could even start to rack up quite a points balance.![]()
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- Align your mortgage repayments with your salary.![]()
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If you get paid fortnightly, it can make life a lot easier if you set up fortnightly repayments on your loan. This will help you to create a budget that makes sense to you - and is easier to stick to. ![]()
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But try to give yourself a day or two between salary and mortgage payments, in case something goes wrong from your employer's end.![]()
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Make the most of interest rate reductions by saving the extra money in an offset account, or making voluntary repayments against your loan. ![]()
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It's tempting to spend that extra money on fun stuff, but if you don't mind being a bit boring then you will reap the rewards in the long term, and get your loan paid off sooner than planned.
The truth about the real costs of borrowing - don't get caught short!![]()
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Many borrowers I work with don't have a clear picture of the upfront costs they may be up for when taking out a home loan.![]()
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As well as loan application fees, there are settlement fees, stamp duty, mortgage insurance and more.![]()
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Some of these can be added to the loan amount, but sometimes doing this can push you into a higher mortgage insurance bracket, resulting in even more fees!![]()
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Knowing your fees is the first step, knowing how to manage them is the next.![]()
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Have a look at my quick guide to knowing your costs. www.mortgageaustralia.com.au/email/files/borrowingcosts.pdf
If things have changed recently - a Home Loan Update may be in order.![]()
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When I speak to clients I am often surprised at how much their lives have changed since we last spoke. ![]()
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Some have married or unmarried, had children, changed jobs, bought a car, got carried away with their credit cards or even changed their financial goals all together!![]()
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Sometimes real life gets in the way of our best laid plans and juggling the family finances becomes a challenge.![]()
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If your life has changed, it is definitely worth spending a little time for a financial check up. It doesn't cost anything for me to take a look at your situation and see if there is any way I can help you get set for the next set of changes in your life.![]()
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Don't worry about wasting my time if you don't need a new loan. My job is to give you ongoing guidance on the lending options which are right for you and your future.![]()
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We might not need to change anything at all. However, the banks change their loan offerings constantly and it can be hard to keep track of whether you are in the best loan or could be getting a better deal elsewhere. ![]()
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Satisfy your curiosity and give yourself some peace of mind.![]()
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Give me a call today.![]()
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Or if you prefer, you could even just fill out this form and fax or email it to me and then I'll get back to you with some ideas.![]()
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Looking forward to catching up with you soon. www.mortgageaustralia.com.au/email/files/lifeandfinanceupdate.pdf
Did you hear about this great win for home buyers?![]()
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Australian home owners scored a win on July 1 2011 when lenders were banned from charging exit fees on home loans, making it more enticing for borrowers to shop around for a better deal.![]()
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Exit fees were generally charged for the first four or five years of a mortgage to discourage borrowers from switching to a competitor before the lender had made a profit on the loan. Unable to now charge exit fees on variable loans, many lenders are making sure they cover their costs upfront with higher set-up fees.![]()
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If you are thinking of switching, you should make sure you get all the facts and compare like with like so what you gain in the short term isn't lost in the long run. Take into account loan establishment fees, ongoing account fees, the cost of any property valuations required by your new lender and settlement fees when doing your sums on how much you will be saving by switching.![]()
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Exit fees also shouldn't be confused with break fees on fixed rate loans. Lenders can and do still charge a fairly hefty fee if you exit a loan during a fixed term.![]()
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Break fees on fixed rate loans are usually based on: the interest rate you locked in, compared to the current market interest rate; the length of time remaining on your fixed-rate term; and your original loan amount. They can run into thousands of dollars, and remain a formidable deterrent to fixed rate customers thinking of a switch.![]()
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One of the best ways to get a helicopter view of what it will cost you to switch and what you stand to gain is to talk to your local Mortgage Broker. That way you can be sure if you close the door on your current loan, you are stepping forward financially.