You may be missing out on great deals and important information that could save you thousands of dollars. Did you know that most lenders only pitch one or two loan products to customers? However, this is just a small fraction of the number of loans that are actually available in Australia.
“If you want to get a grasp of the wide variety of products out there, consider a mortgage broker.” (afgonline.com.au)
Not only does a mortgage broker work for you and not the lender, but they can help you find the loan that best suits your needs.
Set up a line of credit to help your investment property
Afgonline.com.au pointed out in their recent article that if you are negative gearing an investment property, you will have a shortfall between your costs and rental earnings. You can fund this gap with a line of credit (LOC) using the equity in your home or another property.
“Say you have a gap of about $500 each month for your investment property, including interest and other costs, such as repairs and rates. You could set up a LOC for $20,000 to fund these expenses for a period of time, which may give you a little more financial breathing room. How long the LOC holds up will depend on interest rate fluctuations and your rental costs.
Like interest on your primary investment loan, the interest on this LOC is tax deductible, providing its sole use is to cover your investment expenses. ” (afgonline.com.au)
Can I get home loan with poor credit ratings?
The poor financial record makes things harder but it doesn’t mean that you cannot have a home loan. As afgonline.com.au pointed out in their article:
“Lending criteria have tightened in the wake of the global financial crisis but there are still plenty of loans up for grabs for those with a blemished track record or little financial backing. Be prepared, however, to pay a higher interest rate than the standard offering.” (afgonline.com.au)
One of the best ways to find out your options is to use a mortgage broker. They will be able to help you find loans with less stringent criteria and help negotiate with the lender on your behalf.
Are there ways to avoid lender’s mortgage insurance if you don’t have a 20% deposit?
Lender’s Mortgage Insurance (LMI) is a one-off payment by the borrower when a loan exceeds 80 percent of the property’s value. It covers the lender’s risk if the borrower defaults, but does not cover any loss by the borrower.
“One alternative to paying LMI if you have less than a 20 percent deposit is to secure a guarantor to cover the extra stretch. It’s usually a family member who is willing to put forward their property as security. One of the common myths that can scare the family off is that the guarantor is then responsible for the entire loan. Not true. They only need to guarantee any amount beyond the 80 percent loan-to-value ratio (LVR). Although it’s a good idea for a guarantor to seek both financial and legal advice before committing.” (afgonline.com.au)
Let us help you!
With interest rates at their lowest levels in decades, it pays to check whether your current home loan is still right for you. It’s a time consuming task that many people put off, even though they may have the potential to save significant amounts of money.
At Option, our primary concern is: how much money and time we can save you. That means we work extremely hard to make sure we find your best loan option, check on your current home loan and let you know whether you could save by switching. If you do decide to switch, we’ll do all the legwork for you to make it as easy as possible.
The cost of this consultation is 100% covered by us. Why? Because your future is important to us.
Every client we serve, we want to go above and beyond for. We want to make sure your financial future is secure – and if we do that well, you’ll be able to get your next property sooner.
How it works?
At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be in touch.
Make your life changing decision and contact us today!
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References:
https://www.afgonline.com.au/learn/home/home-loan-industry-insights/