Securing a business loan in Australia isn’t necessarily difficult but knowing how to navigate your way can be the difference between success and failure. 1. Work out what is realistic Find and compare credit options based on the amount of money you need to borrow, how you want it supplied, and the type of security you want to provide (residential, non-residential, or none at all). 2. Do your research It’s not only okay to shop around for the best conditions for you and your business, it’s expected. So the next…

Is the key to saving a home deposit as simple as giving up smashed avo toast for breakfast? Well not quite, but spending less does make a difference. On top of a budget, a savings plan and strategies such as a high-interest savings account, an effective way to save is to reduce or eliminate expenses. Start by understanding your spend It can be easy to lose track of how you’re spending money, especially due to cashless payments and credit cards. Many online banking systems include tools to categorise debits and…

Refinancing your assets to renovate a property is a significant decision that will hopefully improve your standard of living or add substantial value to your property. Refinancing isn’t as straightforward as you might expect. The type of renovation proposed goes a long way to dictating the loan required. If the wrong loan is chosen, you could be left with a pile of unexpected debt. Know your budget Before considering refinancing, you need to have a clear idea of your budget. If you underestimate your budget, you run the risk of…

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…

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:…

The difference between “Restructuring” and “Refinancing” In a constantly changing environment, it is important to ensure that your bank and mortgage are keeping up with both interest rate movements and your own personal circumstances. If not, it may be time for you to change things up as well. When evaluating your circumstances, there are typically TWO options available: Restructuring – (Internally) Refinancing – (Externally) Restructuring (Internally) with your Existing Lender Reviewing your finances does not always have to result in refinancing to a new lender. Often, you can restructure your finances with your…

Purchasing an investment property that already has a tenant means you collect rent from day one, with no vacant period and no lease fees to find a new tenant. The lease just carries on as it did before you purchased the property. Sound good? Of course it does. There are some possible problems to be aware of though. It’s very important to check whether the lease on your prospective investment is current or the tenants are on an expired lease. If the tenants are off-lease, they can give a short…

When I’m reviewing a pre-existing structure for clients who I’m providing advice to for the first time, I commonly uncover that their lending is cross-collateralised. (A practice where all lending is secured by all properties). Its rare I would provide advice for this type of structure as generally it takes flexibility away from a client. For example; *** You have property A worth $1M with an $800K mortgage. Then you have property B also worth $1M and also with an $800K mortgage, all loans are at 80% of property values….

Did you know? If your partner is on maternity leave or is planning to go on maternity leave, this needs to be addressed if applying for a home loan to purchase a property, or to refinance. There are conditions that apply to the application for the bank to allow us to include the income your partner is earning or will be earning when they return to work. Such conditions are; ·        Returning to work within 6/12 months of the refinance/purchase settlement. ·        Having enough cash savings to cover the income deficit in…

Off the plan purchases can be a great way to access any applicable government grants, secure a property now, save up the funds required to settle once the property has been completed in the following 1/2/3 years’ time, and the property may be worth much more than you paid for it at the time of settlement. There are some important mortgage related aspects to consider before you sign the contract for off the plan purchases; ·        Most developers have sunset clauses in the contract, where the contract can be voided by…