Home Loans 101: Understanding loan options

Loan options can be confusing to those new to mortgages, or sometimes even those that have had home loans for years. Here’s a 101 to get you up to speed on loan types: 1) Basic home loans Basic home loans or ‘no frills’ loans offer borrowers a loan with a low interest rate. This interest and … Read more

Six winning strategies for auctions

Auctions are competitive and stressful for most bidders. Here are six smart strategies that could improve your chances of winning. 1. Don’t show your hand Revealing your maximum bid limit to the agent before the auction could encourage them to push you a little further. For example, during the auction the agent might indicate you’re close to meeting … Read more

Understanding first home owner grants and concessions

  Clients of mine recently purchased an apartment off the plan for $550,000 in Melbourne. As (1) they had never owned property in Australia (2) the property they were purchasing had never previously been lived in and (3) the property was valued at under $750,000, they were entitled to a $10,000 First Home Owners Grant from … Read more

Understanding Lenders Mortgage Insurance (LMI)

Clients of mine who are first home buyers have saved a $50,000 deposit and are looking to buy a property for around $550,00. Given that their deposit is around 9% of their purchase price, they are required to pay Lenders Mortgage Insurance (LMI). Based on their deposit amount and property purchase price, the LMI is … Read more

Will interest rates increase in 2017?

Interest rates have been at historical lows for such a long time, home owners could be forgiven for forgetting what it is like for rates to rise.   In recent weeks though, major lenders have increased their fixed term rates, across several loan terms (two, three and five year terms). A rise in fixed rates … Read more

Insurance and protecting your family home

Why do I need life and income protection insurance? One of the questions Mortgage Brokers ask clients is whether they are insured – not just car insurance or house insurance (which everyone should have by the way) but life insurance and income protection insurance.  Brokers are obliged to get clients thinking about how they would pay … Read more

How much can you afford to borrow with your first home loan?

Understanding how much borrowing capacity you have when buying your first home is an essential step for all newcomers to home ownership. The question of “How much can I borrow?” rears its ugly head for all new home buyers. As daunting as it can be, understanding your borrowing power is important – and essential – … Read more

5 reasons why pre-approval makes things a whole lot easier

Whilst it is not a mandatory requirement for home buyers to seek a pre approval, doing so can make things considerably easier. So why might that be?   1) You get a clear and accurate price range Whilst you can use a borrowing calculator to work out your approximate buying power, different lenders have different requirements … Read more