http://www.xclusivefinancialservices.com.au/

Xclusive Financal Services, Arubi Avenue, Clyde North (2026)

05/10/2022

Looking to invest in property to create wealth, security & freedom?

Sometimes you need to be creative to find the right solution!
Private message me to set up a meeting to explore your options.
(we'll cover your borrowing capacity, loan structuring, property options, repayment options, rates etc)

05/10/2022

Once you’re settled and financially secure in your home, you might be ready to start thinking about purchasing a second property as an investment.

Planning ahead
Make sure your first property is secure before looking towards the purchase of a second property. If you are struggling to manage payments on your first property, expanding your property portfolio will not improve your financial position. You will need to demonstrate to a lender that you will be able to manage two home loan repayments, and you will need a back-up plan for any unforeseen issues such as temporary unemployment.

Choosing the right property for the right price
Start by calculating whether you can manage additional payments and responsibilities. You need to calculate in advance how much rental income you will need to make in order to cover loan repayments. From here, you need to look at the type of properties you can afford, and work out how much rental income they will bring in. If the incoming figures don’t balance outgoing expenses, you will need to reconsider how much money you can borrow or the type of rental property you can afford.

Remember to calculate in all the additional costs of purchasing a property – building inspections, stamp duty, legal fees and insurance.

Boosting your borrowing power
When looking for a home loan, you can expand your options by reducing your current debts, increase your current property repayments and saving a deposit. A lender will look upon you more favourably, if you can demonstrate that you are a good risk, with regular savings, a secure budget and growing equity.

If you have been in your first home for long enough to build up equity, you may have the option of using this equity to secure finance against the value of your home, which you can use to invest in a second home. There are three ways you can finance the purchase using equity: refinance your mortgage; take out a line of credit; or secure a bridging loan. When you refinance your mortgage, your home will be revalued and then you can withdraw cash based on the equity in relation to the new value. A line of credit loan is a separate home loan, that extends credit based on the equity in your property. You can decide how much of the credit limit you need to use, and only pay interest on the amount you do use. A bridging loan is most useful if you wish to sell the first property after purchasing a second property.

Seek expert assistance
Balancing two properties can be challenging. An investment property has different requirements than a residential property, and it can be hard work to manage tenants while maintaining the property. A real estate agent has the resources to keep the property tenanted, and deal with any issues such as emergency maintenance.

You also need to stay on top of your financial situation to ensure that the investment property does work out to be a profitable investment. A mortgage broker or financial adviser can provide expert guidance so you can make the best of your investment.

04/10/2022

How to narrow down what you want in a home

Before you can find the perfect home, you need to know exactly what you are looking for – and as you may come across desirable homes that include only a few of the features on your list, you need to know which features are the most important to you. As a further complication, you will generally be working on this list with your spouse or partner, who may have different priorities to you!

So how do you work out what you are looking for in a home?

Identify the “needs” and the “wants”
Write your list of desirable features while your partner does the same. Hopefully, your lists will tally fairly closely!
Now divide the list into two separate columns – “needs” and “wants.” The “needs” list could include anything from “must be walking distance to school” to “must be accessible for wheelchair.” The minimum number of bedrooms may be non-negotiable, although you may be prepared to negotiate on the number of bathrooms or whether the kitchen has been recently renovated.

Two important items to include on your “needs” list are the size and location of the property. This is an essential starting point because this is the information that will give you a rough idea of the price of your future home. If you realise that the price of a property that size is unattainable for your budget in your desired location, then you need to reconsider either size or location.

Negotiating the “wants”
Once you have pinpointed a suitable location for your future home, you can start looking at properties that meet the other “needs” on your list. This is when the search for a home can become difficult for couples, particularly if they are looking at the future home from different perspectives. One partner might be more preoccupied with the level of renovation or maintenance required, while the other partner could be concerned about whether it is a family-friendly home, particularly if this partner stays home all day with children.

You can minimise stress by “window shopping” for houses online before going out together to view houses. Looking at photos online is a more clinical way to appraise whether a house meets your respective needs and wants, and can cut down on the number of houses you agree to view directly.

Avoid burn out and regret
It’s important to agree that if one partner says “No, absolutely not,” then the house is off the list. A family home is a huge financial and emotional investment and you don’t want to compromise your future by rushing into a situation that will make one partner unhappy or uncomfortable. However, it’s also important to check that neither of you has burnt out from looking at houses – to the point where even the perfect house looks bad! If it is too difficult to find the house of your dreams, your best option is to take a break for a few months, build some more equity and then when you are both refreshed and enthusiastic, start the search again.

Contact us today if you need assistance working out your borrowing capacity and getting a pre-approval for finance in place.

03/10/2022

Is Debt Consolidation Right For You?

A debt consolidation loan combines all your outstanding debts into one, so now you only have one debt at a reduced rate of interest and lower monthly payments than the combined cost of all the consolidated bills. If you have become overwhelmed with multiple debts and you are struggling to make minimum payments on any or all of them, rolling all these into one repayment can be easier and less stressful to manage.

Another reason to consider a debt consolidation loan is if you want to focus on paying off a mortgage. By lumping all your other debts together, you can simplify repayments, and enjoy the benefits of a reduced interest rate. This gives you more funds to channel into your primary debt, increasing your equity.

Reassess your current loans
Before securing a debt consolidation loan, you could investigate whether switching your home loan would be beneficial. If you can find a home loan with lower interest and lower fees, you could channel the savings into repaying your debts. As your property is your primary asset, it is important to protect this asset while you reduce your debt.

A credit card balance transfer – where you move credit card balance from one card to another – gives you access to a honeymoon period where the new card has lower interest for a certain time period. While this can be helpful if you can pay the debt off promptly, it can also aggravate the situation.
Negotiating with individual creditors might help you buy some time or even reduce or cancel the debt.

Double-check the figures
Before signing off on a debt consolidation loan, check that this is actually the cheaper option. The loan is meant to reduce your overall costs and interest rate, so make sure this is the case. Avoid any “honeymoon” deals where the interest jumps drastically after a certain timeframe, as you don’t want to dig yourself deeper into unnecessary debt.

Set up a budget
You don’t want to start collecting additional debts on top of the consolidation loan, so stick with one credit card for emergencies and set some strict limits on your spending. Make it your priority to reduce this loan. If necessary, speak to a financial counselor to discuss any issues you have in relation to spending.

Make regular repayments
Just because the original creditors have stopped bothering you doesn’t mean the debt has been wiped clear. Focus on paying off the debt within a realistic and efficient timeframe with regular repayments. By reducing all your other debts, you can focus on paying off your home loan, as this increases your equity and improves your overall financial position.

Talk to a financial adviser
A good financial adviser can help you decide whether a debt consolidation loan is the right strategy for you. If you are determined to reduce your debt and increase your equity, debt consolidation can be an efficient and effective option.

30/09/2022

Tip: Did you know you can split your home loan e.g. have one half as a variable rate home loan and the other half fixed... giving you the best of both worlds - flexibility and security!

(To ascertain if this strategy is appropriate for you, click the message button above for a professional take on your situation)

28/09/2022

Don't let this happen to you!
Get a broker to find the right loan & get approved.
Message me to give you a professional take on your situation.

28/09/2022

Questions to ask your broker

1. What are your qualifications?
Before discussing your own finances, check that the mortgage broker is fully qualified to give you professional guidance. As a minimum requirement, an Australian mortgage broker should have a Certificate IV in Finance and Mortgage Broking, and they should operate under their own Australian Credit Licence (ACL) or as a credit representative under another entity’s ACL.

2. Do you have a range of lenders?
One of the main benefits of consulting a mortgage broker is that they have the ability to sort through a wide range of products from a wide range of lenders on your behalf. This saves you the stress of trying to assess all the different products on the market in order to work out what is best for your needs.
If you feel that your broker is only offering you a limited number of products, feel free to ask why, or to find a broker who can give you a more comprehensive view of your options.

3. What kind of clients do you specialise in?
You want a mortgage broker who is highly experienced with your particular situation. If you have a steady job, a decent-sized deposit and you are looking to buy a residential home, then your loan will be fairly straightforward. But if you are planning to build an investment portfolio, if you have a complicated financial history or even if you are self-employed, you will need to find a broker who knows from experience how to help you.

4. What is the best loan for my circumstances?
Your broker should be asking you plenty of questions in order to make a decision about the best loan for you. They should also give you a few different options and explain the relative pros and cons of each one, so you can make an informed decision.

When your broker explains why they chose a particular loan for you, they should cover the interest rate, the interest rate type and structure, along with the loan features and loan to value ration (LVR).

Home loans generally include special features, such as the availability of a redraw facility or an offset account, or the ability to make additional repayments when you wish. Talk to your mortgage broker about your plans for the future – such as whether you intend to start a family or renovate the home – as these plans will have an impact on which features could be more beneficial for you. It’s also useful to consider which features would be helpful in a “worst case” scenario, such as sudden unemployment or long-term health issues.

5. How much can I borrow?
In order to answer this question, your broker should be making calculations based on the information you provide. You will need to tell the broker how much deposit you have saved and your intended purchase price, along with your current income, living expenses and any outstanding debts. It is also important to note whether you are planning to purchase a residential home or an investment property.

6. What fees will I incur on the loan?
While mortgage brokers are generally paid by commission, some will also charge you a fee for their services. There could also be fees for more complex loans, such as if your deposit is less than 20% of the purchase price or if you are refinancing a loan. Ask your broker whether they will charge you any fees before you sign any paperwork.

7. What will the true cost of my home loan be?
Your mortgage broker should be able to tell you how much you will spend on the property in the long term, based on the length of your loan term, the size of your deposit, and whether you are paying principal and interest or interest only. This is an excellent opportunity to assess how you could adjust your payments to reduce the length and overall cost of the loan. Paying a little more of the principal each month, for example, may not cut into your regular budget too much but it could save you thousands over the life of the loan.

27/09/2022

Tip: Paying an extra $20 per week off your home loan cuts 3 years and 2 weeks off your mortgage.

It's time to log onto your online banking and increase your weekly mortgage repayment today... you'll be glad you did!

(*example based on a $350,000 loan at 6% average rate)

26/09/2022

Tips to pay off your mortgage sooner

Your home loan is probably the biggest financial investment you will make, and you want it to give you a sense of security rather than stress. While paying off your home loan might seem a formidable task, there are ways you can reduce your mortgage, and thereby reducing the interest you pay overall.

Make your home loan your priority
Whatever else is going on in your life, the payment set aside for your home loan should be sacred. Set a realistic regular amount to pay off your home loan and stick with a budget for your remaining income. It’s also a good idea to place any lump sums directly into the mortgage, so you can build equity and reduce interest payments.

Avoid “honeymoon” deals
At first glance, some of these cheap rates can seem very tempting. However, once the honeymoon is over, you will find yourself facing a higher variable rate of interest which can mean that you lose any ground you gained with the earlier low rate. These lenders also often set expensive exit penalties, so it is even costly to walk away from the scheme.

Consolidate your debts
Rather than paying off multiple credit cards at varying rates of interest, consider a debt consolidation loan where you combine all your debts into one payment. This generally comes with the benefit of lower interest and it is definitely more efficient than keeping track of multiple repayments. By paying all your other debts off more cheaply and efficiently, you can focus on repaying your mortgage payments faster.

Place lump sums in your mortgage account
By paying any lump sums such as bonuses or inheritances straight into your mortgage, you reduce the capital, thereby reducing the interest you need to pay in the long term.

Pay off the principal / Make repayments at the higher rate
Your goal with your mortgage is to pay off the principal as this will reduce the interest on your loan. Every dollar you pay above the repayment account cuts down the overall amount of your loan, reducing your interest payments over the long term. One strategy is to set yourself the goal of paying off the loan over a shorter time period than necessary. This way, you will make substantial savings by reducing the interest you have to pay, simply by increasing your regular payment.

Another strategy is to pay off the loan as if you are dealing with a slightly higher rate of interest. This way, you will reduce the principal and you won’t feel the pinch if the interest rate does rise. Alternately, you can make more frequent payments, as this also reduces the principal more quickly.

Set up an offset account
An offset account is a transaction account attached to your home loan. The balance of a 100% offset account is deducted from the principal remaining on your loan, reducing your interest rate. For example, if you have $20,000 in your offset account, this amount is offset against your mortgage so your interest payments are charged on $20,000 less than the principal.

Seek expert advice
With different loan products and incentives released regularly, you can benefit from regular expert advice from a mortgage broker to ensure you maintain the best possible strategy to reduce your home loan faster.

23/09/2022

Tip: Don't just repay the minimum on your credit card every month! Doing so may take 20+ years to pay it off.

Instead, create your own plan e.g. Say you decide to pay your credit card off in one year. Take the balance and divide it by twelve. Take that figure and set automatic monthly transfers from your savings account to get rid of that credit card debt quickly.

21/09/2022

Like to know how much you can borrow?

Message me today to get your free borrowing capacity report!

Xclusive Financal Services

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