Key Mortgage Solutions

14/03/2024

19/02/2024

Ever wonder why Banks do valuations? Click the link below to find out

14/02/2024

🏡🏢 Undecided between buying a house or a unit? Click the link below for helpful tips to assist you in making the right choice! 🛠️💡

01/02/2022

REFINANCING TO RENOVATE

Is 2022 the year when you add that extension or extra bedroom to your home? Perhaps you turn an empty basement or the space under your house into a mini apartment that’s Airbnb-able.

If you have owned a home for a few years, price jumps 2021 will have added to your equity. This means you can refinance and fund an upgrade.

Connect with us to find out more.

30/01/2022

PROPERTY NEWS

The market is going up!

The market is about to go down!

Rate rises are imminent…

Are you tired of the headlines? Remember, property is a long game. The best time to buy is always in the past. The second best time is usually right now. And no matter what you do, it takes time to see results.

You don’t need to panic too much about what the newspapers say.

Focus on a strategy that will meet your personal goals.

27/01/2022

ARE YOU READY FOR A RATE INCREASE?

Interest rates have been at historic lows for some time now.

However, they can’t stay that way forever. At some point, rates will go back up and borrowing money will cost more.
And when this happens, will you be ready?

Now is the time to start thinking about how you would accommodate a future interest rate hike. It helps to calculate what your repayments could look like in a couple of years time so you can be ready to accommodate them.

To prepare your finances for an increase in interest rates, start putting some savings away or adjust your budget so it’s not stretched to the max and there is room to increase your mortgage repayments.

One of the best things you can do is get in the habit of making extra repayments while you have the budget to do so. This will help to minimise your loan... and when there is a rate rise, you’ll barely even notice it.

Want to know how to handle the ever-changing home loan environment? Reach out today.

26/01/2022

WHY YOU NEED A BROKER ON YOUR SIDE

A mortgage broker is a professional who acts as the middleman between buyers and lending institutions.

Around 60% of home loans are done using mortgage brokers. Here’s why they are so popular:

– Reduce stress: Work with a broker and they will do most of the heavy lifting for you. That way you are free to get on with everyday life without your home loan taking up every second of your time.

– They have the know-how: The ins and outs of home loans are complicated. Unless you are very financially savvy yourself, you are better off using the advice of a broker who lives in this world full-time.

– Brokers know the maths: There are a lot of numbers to be crunched when it comes to figuring out which loan is the right one and how much you can afford to borrow. Let your broker present you with a range of possibilities to help you decide which loan will work best.

– They’re on your side: You pay your broker to go into bat for you. They work hard to find you the best deals and communicate with lending agencies for you, saving you from email or phone call overload.

– They’re often free: Many brokers charge a commission to the lender, meaning that you aren’t out of pocket for their expert advice.

Join other savvy Australians and get help with your home loan from a professional.

24/01/2022

GST AND PROPERTY

Goods and services tax (GST) has been part of Australian finances since 2000. Even still, it can be confusing.

The GST is a tax on the sale of goods and services in this country… so does that also apply to the sale of investment properties?

Like so many things when it comes to finances and investment, it depends.

If you buy an existing residential property and then sell it, there will be no GST involved at either end. Existing properties are considered ‘second hand’ so no GST applies.

However, if you are selling a newly developed residential property, say a newly built home, then GST must be charged. Land with no existing dwelling and commercial properties must also include GST at point of sale.

You will also have to register for and charge GST if the turnover you receive from the property in question exceeds the ATO GST threshold or if the ATO considers you an ‘enterprise'. You will be considered an enterprise if, for example, if you buy land with the express purpose of redeveloping it to make a profit.

Don’t panic if this is a bit confusing!

Just get in touch to find out how the GST relates to your property sale or purchase.

21/01/2022

https://www.news.com.au/finance/reno-decision-that-can-boost-your-homes-value/news-story/a0b8b0c010cab9905cc163ff2b9b354f

This article was created in sponsorship with Westpac.

21/01/2022

APPLYING FOR A LOAN

Do you use now pay later services like Afterpay? They’re easy and let you get what you want without paying money upfront but they can have an impact when it comes time to apply for a home loan.

You see, the thing that concerns lenders the most is your ability to pay back the money you borrow. This means they will look at as much of your spending history and credit history as they can.

In theory, if you use Afterpay responsibly, make your payments on time and don’t accumulate too much debt at any given time, things should be fine.

However, buy now, pay later is essentially credit with another name. Lenders will look into your credit score and credit card repayments… and AfterPay may count towards this.

Along with this, while Afterpay won’t run a credit check to open an account, they do reserve the right to check your history if you are defaulting on payments. The more credit checks you have on file, the less money a lender will be willing to give you.

The less involvement with debt and credit you have, the better it will look when you apply for a loan. Afterpay and other buy now pay later services are a form of debt. If you can’t avoid them completely, be wary and always pay the bill on time.

18/01/2022

TERMINOLOGY EXPLAINED

LVR stands for loan-to-value ratio. It is the percentage of your property’s value covered by your loan.

The higher your deposit the lower the LVR.

It is calculated as, (loan ÷ property value) x 100 = LVR.

So if you borrow $750k to purchase a $1 million property, the sums say your LVR is 75%.

Lenders love an LVR of 80% or lower, otherwise they might want to chat with you about lender’s mortgage insurance (which I’ll cover soon).

17/01/2022

REFINANCING

Is it time to renovate and upgrade? A pool or a kitchen makeover can add considerable value to your property.

2021 saw such an immense rise in property values that you may not even realise how much equity you are sitting on.

With the increase in equity comes an increase in borrowing power. Now is the perfect time to use your equity to borrow so you can renovate your place or install a pool. You get a better home and if you play your cards right, your equity will only grow.

Reach out to me to find out more.