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Sandra & Peter Erdel - Lift Lending Peakhurst
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How many ways can you buy a swimming pool?Question: How many ways can you buy a swimming pool?Answer: At least 8 different ways that I can think of.And not all of those ways may be suitable for everyone - here is my list.Not everyone wants a swimming pool either. But perhaps a new car, maybe a boat, a motorbike or a decent holiday? A caravan or a new garage? An aeroplane even?Doesn't really matter what it is, but if you need to spend a serious amount of money, it may be worth looking at some of the things you can do with your home loan to facilitate your new purchase. You see, 6 of those 8 different ways I mentioned actually involve your home loan, so it's probably worth a look first, just to make sure.That's where I can help. It doesn't cost anything to check out what would work for you, and then you can actually make an informed choice.The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential.What do you think?Contact me and we'll see where you stand. www.mortgageaustralia.com.au/email/files/8waystobuythatpool.pdf
Don't kick yourself later - ask these questions today and avoid loan confusion.There's nothing worse than walking out of an important meeting, only to realise that you forgot to ask some important questions. One of the most important meetings you will have when you enter the property market is your initial meeting with a mortgage broker.In order to get the most value out of your appointment, and improve your chances of being approved for a loan, you need to come along prepared to answer a host of questions about your finances and your living situation.But don't forget to ask some questions of your own. After all, the goal is to find the right loan for you, which won't happen if you don't speak up. When meeting with your mortgage broker, remember to ask:Which loan is right for my situation? There are a range of loans available but your mortgage broker should be able to help you decide which ones best fit your lifestyle.What is my borrowing power? This is usually based on your income and financial commitments, and it can vary greatly from one lender to another.What percentage of the property can I borrow? It's important to know how much you need to put down as a deposit, and also whether you need to pay other upfront costs, or whether they can be included in the loan amount.Will I have to take out LMI? Lenders Mortgage Insurance covers the lender in case you become unable to make your repayments, and there is a shortfall when the property is sold. Some lenders require borrowers to pay this amount upfront.Which loan offers the best rate? Some loans might offer a good introductory rate, but it's important to look at the ongoing rate once the honeymoon period is over.What flexibility does the loan offer? Can I make changes down the track? What if I want to make a lump sum payment in the future?Is the rate fixed or variable? Variable rates are usually lower, but keep in mind that they can change frequently. Fixed rates are a little higher but they provide some certainty for those on a strict budget. However fixed rate loans are usually a lot less flexible than variable rate loans.What will my repayments be? It's important to look at your budget and make sure you're not over-committing yourself.How much is the loan establishment fee? This is another cost that is often payable upfront, so you will need to ensure that you have funds available at settlement if this is the case.Are there any ongoing fees associated with the loan? Monthly account keeping fees can vary between lenders so it's important to make sure you compare your options.Are there any conditions to be aware of such as discharge costs, fees to change the loan? Not asking this question could be very costly if you're planning to refinance down the track, or make a significant lump sum payment in a few months.
What you need to know about the most important part of your home loan:Are you an expert on all lending related topics? That's okay - most people aren't. If you're still trying to understand the truth about interest rates, you're not alone. Here are a few answers to the questions you were too embarrassed to ask.How are interest rates determined?The Reserve Bank of Australia (RBA) sets the official interest rate or 'cash rate' which takes into account a whole list of factors about how the economy is performing at that point in time. The RBA meets once a month to review the inflation rate, unemployment figures, CPI, PPI and retail sales, and from that information they decide whether to increase, decrease or leave on hold the official cash rate.The cash rate is the interest rate that the banks and lenders will pay to the reserve bank. If this increases, your lender will usually pass the cost onto you - the borrower. If the cash rate decreases - the reserve bank intends that the savings should also be passed on by your lender - but this isn't always the case.By moving the interest rates up and down, the RBA tries to keep the Australian economy in check, by either slowing things down to keep the cost of living under control, or speeding up spending to help boost growth in certain areas.What are the different types of interest rates?The two main types of interest rates are Variable and Fixed.Variable rates are usually a bit lower, and you pay the best going rate at the time. If the cash rate increases, your lender will increase your variable interest rate. But if the cash rate decreases, your repayments will usually go down.Fixed interest rates are locked in for a period of time -usually just a couple of years - so that you know exactly how much you will need to budget for. This can be helpful for borrowers on a strict budget who can't afford a lot of interest rate rises in the short term. However you will usually pay a higher interest rate overall if you choose this option.Which interest rate is best for me?The decision of whether to choose a variable or fixed interest rate should be made after carefully considering your own personal needs and commitments. A mortgage broker should be able to help you weigh up the pros and cons to work out the best option.
Another session of product and policy training. Staying up to date with the latest lender offers so we can offer them to you.
6 Tips to Avoid a Bad Purchase:You searched the web for properties that fit your criteria, and one in particular caught your attention. The photographs paint a lovely picture, and the agent swears that this one is something special. But before you get to the open house, be sure to take a moment and remember that you have a job to do... 1. Ignore the trimmingsIt's easy to be romanced by the lovely scented candles, flat screen television or pricey bedspread, but the reality is - you're not shopping at a department store. This is an important purchase, and when the designer furniture is removed from the house you don't want any surprises. Make an effort to look past the decorations and really notice the layout, condition, features and drawbacks. 2. Look up, and all aroundTake a good look at the ceilings and walls - water damage and leaks can be costly to fix, but the good news is that usually they are difficult to hide as well. Try to use all of your senses and be on the lookout for smells and sounds that might indicate a problem with the property. 3. Check out the neighboursYour grandparents would probably tell you to buy the 'worst house on the best street'. There's a lot to be said for location, and part of the formula is to be surrounded by neighbours who maintain or improve their properties.Try introducing yourself to the neighbours and see what you find. If the elderly lady next door says "I'm glad they decided to sell that house - we need new fences and they won't pay up" you might like to leave some room in your budget! 4. What's most expensive to fixIf the kitchen and the bathroom are a lovely shade of brown and you would like to renovate as soon as possible, make sure you can afford it. These are usually the most expensive rooms to improve, and you need to know what you're in for. If in doubt, ask a tradesman to inspect the property with you before you make an offer. 5. Ask lots of questionsIt pays to ask plenty of questions - a great one is 'why are they selling?' If you have twins on the way, and the agent says 'they want to have another baby', you might like to consider whether the property is big enough for you. It's also a great idea to ask how much the current owners are paying for their utilities. Some houses, by design, tend to generate very large heating and cooling bills, so these are all important considerations. 6. If in doubt - organise a building and pest inspectionUnless you really know what you're looking at, it always pays to arrange a building and pest inspection. This can be added as a condition when you make an offer on the property. If the vendor is not willing to allow an inspection, you might like to run screaming down the street before making a very costly mistake.