Loan Ranger Home Loans

18/10/2020

Do something Today that makes you Happy

15/10/2020

Did you know that you can obtain a home loan even though you are in a probation period with your work?

15/10/2020

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.

13/10/2020

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)

12/10/2020

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.

11/10/2020

Fill in the blank: If I had a $1,000 to give away, I would donate my money to _______

08/10/2020

Tip: Watch your credit card limit! Even if your balance is zero, the higher your limit the lower your borrowing capacity.

08/10/2020

Top Five Reasons Why Your Loan Would Be Declined

It can be extremely disheartening to have your loan application declined, especially if you already have a property in mind. The best response is to treat the rejection as a positive learning experience, and an opportunity to strengthen your financial position so your application will be successful next time.

Here we look at some of the more common reasons your loan application would be declined and how you can turn the situation around:

Insufficient income
Lenders calculate your borrowing power based on the balance between your income and your financial commitments. If the balance is insufficient to pay off a potential loan, they will not approve your application.

You have two options – you can reduce your financial commitments by tightening your budget, or you can find a way to increase your income. One or both of these strategies will create a larger balance between your income and expenditure, giving you more funds to funnel towards paying off a loan.

1. Bad credit
Your future lender wants to see that you have a good history of repaying loans promptly and responsibly. If you’ve actually been the prudent type who avoids debt, you won’t have much evidence that you are a reliable borrower – you can fix this by using a credit card to demonstrate that you will make prompt and reliable repayments. However, it will be more difficult to prove yourself a good risk if you have a history of defaulting on loans, so you may need some time to improve your credit record before applying for a new loan.

2. Excessive debt
Lenders will look at every aspect of your financial position, and will pay particular interest to any outstanding debts you already have. If the lender can see that your debt repayments exceed your income and assets, they will be wary about lending you more money.

The solution here is to reduce your debt before taking on more financial responsibility. Start with the highest interest debts first and reduce any other regular outgoing payments, so you can demonstrate that you have the income to manage your loan.

3. Insufficient savings
Your savings not only provide a deposit and a buffer, they also demonstrate that you are a good risk who is committed to achieving your long-term goal. If your application is knocked back due to your lack of savings, start by putting aside a small amount from each pay, and watch it build. Keep in mind that a sudden windfall such as an inheritance does not demonstrate your ability to save! You need to show consistency and self-discipline. Even three months of regular savings can be enough to convince a lender that you are a good risk.

4. Irregular income
Today many people choose a more flexible approach to working than the traditional 9 to 5 job with a regular salary. If you are self-employed or do contract work, or even if you have switched jobs recently, a lender might be concerned that you will be unable to handle regular loan repayments.

However, as more people shift from traditional employment, there are lenders responding to the challenge. Look for a lender who specializes in home loan products specifically for people with irregular income.

5. Unsuitable property
Sometimes it’s not your financial situation that causes the problem. The property you want to buy may be a bad risk, or perhaps you are proposing to pay more than it is worth. In this situation, the lender will see that you cannot redeem the value of the loan and they will turn down your application. When a loan is declined for this reason, the lender is actually doing you a favour. You want your investment to be as profitable and manageable as possible, so listen to the lender’s advice and find a property that has more potential to be a good investment.

Overall it helps to see your lender as an astute and helpful business partner who wants to ensure you are in the best possible position to manage your loan. When your loan is declined, look at this as an opportunity to strengthen and improve your position so you will get the right loan package for your needs, you can make repayments comfortably without any additional financial pressure, and the property will build into a good investment for you.

06/10/2020

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.

05/10/2020

Finding the right property for you

Property-hunting is a stressful exercise – you are embarking on one of the biggest financial investments of your life, and you know you’ll have to live with your decision every day. Yet too many people rush into a property purchase, only to feel financially trapped in an unsuitable choice.

The problem is that many properties on the market are presented in an attractive and appealing way, prompting you to make an emotive impulse decision. You can avoid the hazards of saying “I love it! Let’s buy…” about the first property you see, if you follow this 8-step preparation plan before starting the search to ensure you can identify the property that is exactly right for your needs.

Residential or Investment
You probably already know the answer to this question – do you want a new home to live in, or are you planning to rent it out as an investment property? Either way, you are making a long-term investment, so you need to plan carefully to ensure you can hold onto this property for long enough to profit from the appreciation in value.

Setting a budget
Ask a mortgage broker or financial advisor for assistance in setting a limit for the maximum you can comfortably afford to pay for a new property. Yes, it can be tempting to go over your budget if you find The One, but even a $50,000 increase in price can have a huge impact on your ability to comfortably cover interest payments and build equity. If anything, set a conservative budget so you can manage the payments more easily and have some leeway for any future financial crisis.

House or apartment
Now you can start thinking about lifestyle choices! If you have your heart set on an apartment, remember to calculate for body corporate fees as these can be a significant additional expense. With a house, you need to consider how much additional home maintenance you are committed to completing – do you want your weekends to revolve around maintaining the garden and the pool? If not, you can look for a more low-maintenance home.

Location, Location, Location
Next you want to identify the suburbs that are most suitable for your needs. Choose locations where the homes are within your price range, and then narrow down your search to incorporate essentials such as proximity to schools, shops and public transport. Before you even look at any properties, work out how you will travel to work each day – is it a long commute? Will you spend long periods stuck in traffic? Are there suitable public transport alternatives?

If you are looking for an investment property, you need to consider these questions from the perspective of your future tenant. What kind of facilities and resources will they require?

What are your “must-haves”?
Before you start looking at houses, write down a list of essentials. If you are buying the property as a couple, you should both write your own list and compare. For example, how many bedrooms must you have to live comfortably as a family, and perhaps also to provide a spare room for visitors?

Again, you need to consider these questions on behalf of your target tenant. If you are planning to use the property for investment purposes, your “must-haves” would include the utilities and amenities (such as air conditioning) that will make life more comfortable for a potential tenant.

Where will your furniture go?
One of the best indicators that you’ve found the right property is that you can mentally place your furniture in the various rooms. Even if you are not sure, try mentally “walking through” the house, to figure out where you will eat your meals, where you will place the television and the computer and how you will utilize any outdoor space. This exercise will help you identify any potential issues with the layout of the property.

Take some time to consider
Even when you are sure you’ve found The One, take some breathing space to think about it. While a property purchase is one of the biggest financial decisions of your life, many people rush into the commitment, without taking some time to think about the pros and cons of a particular property. Walk away from the property, check your “must-have” list and your budget, so you can consider the decision from a detached practical position. Then view the property again to see if it still surpasses all your expectations. If you are purchasing as a couple and one of you has reservations about a particular property, then it is no longer up for consideration.

Seek expert guidance
Before purchasing the property, bring in the experts. Have the house inspected for any potential issues with structure or electricals to ensure that the house is safe and doesn’t need any costly repair or maintenance work. If you are planning some renovations, check whether you will be permitted to make the changes – if not, you might prefer to look for a different property. Just as importantly, seek financial advice from a mortgage broker to calculate your best options for a mortgage so you can pay off the house more comfortably and efficiently with a minimum of financial stress.

04/10/2020