Lenders mortgage insurance (LMI) may be an added expense, but it offers buyers the opportunity to dive into the property market earlier, without saving up an entire 20 percent of the property’s purchase price as a deposit. What is it? LMI protects the bank or lender, should a home loan go into default, guaranteeing that the lender will get its money back if the property needs to be sold and there is a shortfall in repaying the loan. While a 20% deposit generally provides a good buffer against any drops…
Monthly Archives: September 2022
As was widely expected, the Reserve Bank of Australia (RBA) today increased the official cash rate by 0.50% to 2.35%. This brings the total of increases made since May to 2.25% as the RBA continues to battle a very stubborn inflation foe. In making this latest increase, whilst the RBA have had a close eye on the spiraling cost of living and falling house prices, they have made their intentions to prioritize controlling inflation very clear. Lenders can set interest rates independently of RBA movements, and their responses to this…
Regardless of whether you are a first home buyer or a seasoned property investor – Obtaining a pre-approval should always be part of your first steps when embarking on a property purchase journey. What is a “Pre-Approval” A pre-approval: (Also known as a “conditional approval,” “indicative approval,” or “approval in principle”) Refers to an initial assessment from a lender whereby they agree, in principle only, to lend a certain amount of money to an applicant prior to the actual purchase of a property. There are technically TWO kinds of pre-approvals:…