Need help with a Sydney home
loans - first home buyer loans and home refinance loans we offer in Sydney NSW -
Blacktown Toongabbie Seven Hills Pendle Hill Wentworthville Westmead Northmead
Girraween Prospects Marayong Quakers Hill Kings Park Kings Langley Glenwood
..... any suburb in Sydney.
WE HAVE
ACCESS TO MANY LENDERS, A BETTER SERVICE FOR YOU.
We visit you, analyse probable products with BETTER TERMS
. We help you obtain first home grant or refinance loan.
1. Different Loan
Types
Standard Variable Rate
The Standard Variable Rate loan based on the official Reserve
Bank rate. Reserve Bank Rate varies with time depending on the market, how
strong or weak it is. If rates go up so do the amount of your regular loan
repayments and on the other hand the Reserve Bank drops their official interest
rate, then your repayments will be accordingly reduced. Sometimes we have seen
certain banks raise/reduce variable rate without Reserve Bank changes.
This type of loan is more flexible. Since rate is derived
including charges for other features such as the ability to make extra
repayments or to split the loan. Within this product banks may induce certain
categories with certain discounts to attract customers examples are a honeymoon
rate or professional packages. Less features or more fees a loan has, it is
given to customers with a lower face value of Interest Rate. We advise you not
to be fooled with so called Lowest Interest Rate Loans.
Fixed Rate Home Loan
Fixed Rate loans are based on a set interest rate for a
pre-determined period of time that might run from a few months to many years. If
the Reserve Bank changes its interest rate, either for better or worse, up or
down, this will have no impact on your regular repayment under a Fixed Rate
schedule.
What is
"best & when" is a
multi million dollar question, a question that is not answered even by Financial
Experts, if you step in to right loan at right time, you will save thousands of
dollars.
Split Loan
The split loan of 50/50 or 60/40 are the most common to reduce
risk.
Line of Credit
Line of Credit loans give you access to funds when necessary. No
interest charge if funds are not drawn. Normally interest is higher on such
facilities.
2. Risk
& Interest Rate
Interest rate is assessed as per the risk involved. A loan application
need supporting documentation to assess this risk. Assessment is normally based
on
1) Identity of a customer & residency
2) To prove income & repayment ability
3) Security against the loan
A customer identified by the lender per 100% points and living in Australia
is less riskier person than a person living overseas.
Similarly a person has a proof of income with Tax Returns is less risky to a
person giving self certified income letter.
Lending money up to 80% value on Australian Property is preferred to 100% and
also to lending money 50% on a overseas property
Bank decide Interest Rate Fees & Charges. Some lenders take more risk
than others. Then their interest would be higher.
Depending on type of documents a customer submit, a loan is classified as
1) Full Doc - All verified documentation that are lo risk to lenders
2) Lo Doc - Some information could be verified while others not, a lesser LVR
will apply
3) No Doc - Least LVR will apply so that bank will have a recovery if
customers cannot pay their loan
3.
Mortgage & Insurance
A further way of protecting Lenders Funds is through Mortgage Insurance,
higher the risk customer is forced to pay more insurance premiums but this
insurance cover do not protect customers.
Non-conforming Home Loan
Non-conforming loans are designed for borrowers that don’t
meet 'standard' bank criteria. In most cases non-conforming loans will attract a
higher rate of interest.
Bridging Home Loan
This is a temporary loan which allows a buyer to complete the
purchase of a new property before selling their existing property. It is useful
for borrowers who want to finance the building of a new home while still living
in the old one. Given the high risk to the lender associated with this kind of
loan, the bridging loan will usually attract a higher interest rat
4.
Fees & Charges
1) Application & Valuation Fee
2) Settlement Fee
3) Account Keeping Fee
4) Transaction Fees
5) Exit Fees
6) Switching Fees
There are many fees lender may charge from you. Sometimes they are so high, a
second thought of looking at them is well worth to save money.
5. How To Save
Your money kept in a savings account or cheque account earn very little
interest income. Offset accounts could help you to earn more, they pay little
more than what you are paid otherwise, namesake 100% offset does not mean much.
Some lenders offer your money to put to your loan account direct and to take out
when you need them. These accounts help you save 100% interest against your loan
and may have Fees & charges to set up. Sometimes interest rate applicable is
higher too yet it helps you save in the longer run.
Many debts consolidating to one is Debt Consolidation Loan. Some customers
consolidate loans and save interest + fees.
A loan for investment purpose may help you to claim losses against income for
Tax purposes. This is called negative gearing. A day asset is sold if that asset
has created wealth you will pay tax on that created wealth. What is legally
allowed as concessions your tax agent will help you to claim.
Additional repayments is a safer way to reduce your loan quickly.
5. Help
To know about a product you need to walk into a lender. If not happy another
lender. In the process you will not understand most jargon they say to you.
There is a good chance that you get lost in the process. Most time you talk to a
staff member who is not qualified to deal with information.
When you realize you are lost in the process, many look at Lowest Advertised
Interest Rate as the decision maker. When they come to know the mess they have
gone in to, it is too late to out as heavy penalty charges are in place.
So it is a good idea to seek help from a professional. Lenders treat MFAA membership
as a recognition to work in mortgage lending field. They serve many lenders so
to some extent they are not biased. Most lenders pay equal commission to them
but some may pay higher to induce a broker for more leads. Mortgage Brokers are
subject to disclose their remuneration to combat this deficiency and to make
sure they do the right thing to their customer "finding a better
loan".
OUR FREE SERVICE
- There are loan solutions to suit your circumstances no matter
whether you have bad (poor) credit or good credit rating, investor or a owner
occupied buyer (include first home). Our commitment to you is that we analyze your existing finance strategies with
a view to help you to obtain a better product. This may help you to select an
appropriate loan to overcome your current difficulties.
Tell us what you need & make our consultants find it for you. It
is that easy. 
will help us identify
