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Home Equity Loans Australia

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  • 8/14/2019 Home Equity Loans Australia

    1/4INSIDE Living with your home loan Lenders mortgage insurance Tips and tricks to save a deposit

    Its the start of a bright, bold and

    happy new year - and perched at

    the top of your New Years

    Resolutions list is your goal of

    becoming a property investor.

    But where do you begin? There

    are many aspects to consider.

    Research, research, research.

    Be sure to read as much as you can

    about investing in property, including

    industry magazines, property and/orinvestment columns, radio programs,

    TV shows and reputable property and

    investment websites. You may also

    like to consider attending seminars

    held by reputable organisations and

    nancial services businesses that are

    licensed in Australia. Be sure to add

    books written by licensed Australian

    advisors to your list, too.

    Do your sums and seek advice.

    Find out whether you can truly affordto make the investment. Consult with

    your nancial advisor and talk to your

    accountant to determine whether you

    can afford mortgage repayments,

    factoring in interest rates, taxes, and

    clarifying whether it is likely to affect

    any social security payments or benefts.

    Determine your strategy.

    There are many ways to invest and you

    may not want to put away all your spare

    cash into superannuation, for example.

    Work out your personal motivations.

    What are your personal goals in life?

    What will ultimately bring you

    satisfaction and contentment? What

    your friends, family or peers want for

    themselves does not necessarily apply

    to you. Consider what you want to

    achieve nancially over a period of

    time whether thats a ve year, ten

    year, or twenty year period and so on.

    It is also an idea to consider what your

    comfort zone truly is, in regards to

    how long you want to invest the

    money for and when you ultimatelywant to reap the rewards from your

    investment strategy.

    Continued on p2...

    Summer / Autumn 2008 Newsletter

    Awarded toMortgageChoicebyAustralianBankingandFinanceMagaz ine

    Invest today for a better tomorrow

    Did you know that up to 60 different areas of the law could makethe difference to the purchase of your property?

    A solicitor or conveyancer will help you understand the legalobligations of the purchase of property and advise you on anymodications to the contract to ensure your needs are met. Even if

    you believe its a standard contract its wise to discuss it in detail toensure you understand the commitment you are making and themeaning of the more technical terms that may be used.

    During the course of the purchase, the solicitor or conveyancerwill assist you with:

    Conducting extensive searches into the land title, developmentplans, council zoning, and any restrictions and ownershipinterests on the property

    Ensuring the transfer of ownership to you stays on track and assist

    with ensuring that both sides of the party full their obligationsIf you are purchasing an apartment, your solicitor or conveyancer

    will also review the strata minutes, which will provide informationregarding noted building structural issues, the Body Corporate,common area problems and any noted trouble with neighbours.

    ENSURE PEACE OF MIND WITH YOUR NEW HOME PURCHASE

    Wishing you peace, happinessand prosperity for 2008.

    As we begin the new year, MortgageChoice would like to say a special thank

    you to all our clients, friends, family andbusiness partners for your supportduring 2007.

    Its also time to look ahead to thepromise and opportunities of theupcoming year.

    With 2007 being a year lled with

    multiple interest rate rises, its importantto be aware of your current nancialsituation to ensure that you are preparedfor the year ahead and will achieve the

    nancial goals that you aspire to.

    Mortgage Choice Limited302 Charman Road CHELTENHAM VIC 3192

    Phone 03 9585 7779Fax 03 8610 0365

    www.mortgagechoice.com.au/cheltenham1This franchise is independently owned and

    operated by The Finassist PartnershipABN 51 426 348 068

    Anthony SmithPh:9585 7779

    Fax:8610 0365

    Mob:0413 439 761

    anthony.smith@mortgagechoice.

    com.au

    Gary MackertichianPh:9585 7779

    Fax:8610 0365

    Mob:0418 155 565 [email protected]

    Mark BoultonPh:03 9533 5340

    Fax:03 8611 7915

    Mob:0 403 047 147

    [email protected]

    Chris HowittPh:9333 4370

    Fax:9333 4376

    Mob:0401 334 599

    [email protected]

    Craig MicallefPh:9308 9163

    Fax:9308 9257

    Mob:0417 655 577

    [email protected]

    Stephen ForresterPh:03 9773 3438

    Fax:03 8610 0365

    Mob:0409 250 347

    [email protected]

    Jill OConnorPh:9585 7779

    Fax:8610 0365Mob:0412 647 506

    [email protected]

    Mitch JonesPh:03 9773 3438

    Fax:8610 0365

    Mob:0412 881 907

    [email protected]

    NEWS FROM

    MORTGAGE CHOICE

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    ...continued from p1

    Think about the type of investmentyou are looking for, too.

    Do you want whats known as an

    incomeinvestment (a type of

    investment that gives you an income

    from earning interest but generally

    has little or no capital growth) or a

    growth investment, which, as well as

    earning you income, increases thevalue of your original investment.

    Know your market.

    Find out everything you can about

    the area in which you intend to

    purchase. Are prices increasing,

    decreasing or stagnating? Are there

    any major infrastructure projects

    planned in the area? What are the

    average prices like? While weighing up

    the pros and cons behind your

    decision, seek an independent

    evaluation that includes all recent

    comparable sales and rentals in the

    local area. Is the value of your

    property likely to increase over time?

    Seek an independent evaluation.

    Secure your paperwork.

    Get into the habit of keeping your

    paperwork in good order contracts,

    policy documents and so on. Keep it in

    a le that is easilyaccessible it will

    come in handy when you need to refer

    to any documents relating to yournancial affairs as well as bringing you

    peace of mind.

    Dont be pressured into signing

    anything you are not

    comfortable with.

    Be careful not to let other people

    pressure you into a decision you are

    not comfortable with be prepared to

    say no! Seek the assistance of a

    solicitor before signing anything. And

    steer clear of get rich quick schemes

    or other promises to make you anovernight millionaire.

    See a reputable mortgage broker.

    Choosing a property loan to suit your

    lifestyle and nancial circumstances is

    paramount. This is where a reputable

    mortgage broker can assist you.

    Mortgage Choice loan consultants can

    meet with you to discuss your loan

    options and tailor a loan product for

    your needs, from its panel of leading

    lending institutions. A Mortgage

    Choice loan consultant can assist you

    with your property loan either at one

    of their ofces during business hours

    or they can make an appointment at a

    time thats more convenient to you.

    A mortgage brings the thrill of homeownership, but once the champagnestops fowing its essential that youcan live comfortably with yourloan. Try our few simple steps toget the most from life and yourhome loan.

    Life will be a lot easier if you onlyborrow what you can comfortably repay- even after allowing for possible ratehikes. If you can manage it, additional

    repayments will fast track your way tomortgage freedom.

    Even small extra payments can have abig impact. On a $250,000 mortgage,paying just $50 more each month on a30 year mortgage could trim your totalprinciple and interest repayments by upto $51,379 (assumes interest of 8.25%).

    A redraw facility lets you tap intothese additional repayments a realplus for meeting unexpected bills.

    Offset accounts are also worth

    considering. Rather than being paidinterest on your spare cash, any savingsare used to reduce (or offset) theinterest on your loan. It means more of

    your regular repayments go towardswhittling away the principal.

    Many mortgages, including line ofcredit loans, accept salary deposits,letting you use your loan as a one-stop-shop. Cash can be redrawn when itsneeded, while any surplus goes toreducing the mortgage. This way everycent is put to work paying off the

    balance. But you do need to bedisciplined about withdrawals.

    If your loan is truly testing yourmettle, think about renancing. It may

    be possible to nd a loan that suits youbetter. Karen and Peter Orr recentlyrenanced, discovering their loan can bea useful nancial tool. Karen explains,Refnancing gave us a better deal on ourrate, and it also meant we could tap intoour home equity to access low-interest

    funds to build a new swimming pool.

    If rising rates are making yourmortgage a tough task master, it may be

    worth xing, since this gives thecertainty of knowing what yourrepayments will be. Anthony OBriendid just that 12 months ago, and nowhes thumbing his nose at rate hikes. Axed rate hasnt just meant savings oninterest, explains Anthony. Its alsoallowed me to budget for mortgagerepayments. As a self-employed worker

    with an irregular income, thatsdenitely helped me live with my loan.

    Your home loan can also streamlinedebt management. Consolidating otherdebts, including credit cards, into yourmortgage can make for easier moneymanagement, often reducing the totalmonthly repayment you have to make.

    Sticking to a disciplined repaymentschedule and controlling credit cardspends can mean valuable savings intotal interest. And thats something wecan all live with!

    Have you started reading aboutpurchasing a home and comeacross the term Lenders MortgageInsurance but unsure about

    what exactly it means to you?

    Lenders Mortgage Insurance, orLMI, is a type of insurance taken out by

    banks, building societies, credit unionsand non-bank lenders, designed to

    protect the lenders in the event that theborrower cannot meet their repaymentobligations and the funds from sellingthe borrowers assets dont cover theloan. LMI is generally a one-off paymentmade at the outset of a home loan and

    it is generally requiredfor borrowers whohave less than a20% deposit.

    Lenders MortgageInsurance cansometimes be confused with MortgageProtection Insurance (MPI), whichcovers you, the borrower, for the

    payment of your mortgage instalmentsin the event that you are affected byunforeseen circumstances such asunemployment, illness or death. This typeof insurance is paid annually and variesaccording to the outstanding loan balance.

    Lenders Mortgage Insurance

    Living with your home loan

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    Singling out a great opportunity

    Saving has rarely been easy for most people andsaving the deposit needed for a home can be difcult.But with planning, commitment and a few smartstrategies its possible to build a decent nest egg.

    A vital rst step is to establish a savings goal usuallybetween 5% and 20% of your ideal property value. Thisgives you something concrete to work towards plus abenchmark of your saving achievements to date, which mostlenders will want to see. Revisit your household budget for aclear picture of how much you can realistically tuck away ona regular basis. Adding lump sums likeyour annual tax refund will turbo-charge your deposit.

    It can be counter-productive tobuild savings if youre also carryinghigh interest debts, so aim to reduceoutstanding credit card balances orpersonal loans by repaying more thanthe minimum. Lenders will enquireabout existing debt commitmentswhen you apply for a home loan,and in addition to helping build adeposit, reducing personal debtdemonstrates you have the disciplineto manage a mortgage.

    Now, make building a deposit your key nancial goal.This may mean sacricing a few of lifes luxuries but yourcommitment will be amply rewarded. Its often a goodstrategy to save rst and spend whats left. Stay on top ofyour savings target by asking your employer to pay part ofyour pay cheque into a separate savings account or

    arrange a direct debit of your own.

    Once you have a rm idea of how much you can save,shop around for a suitable investment vehicle. Some of thebest short-term returns as high as 7% annually - are

    offered by online savings accounts. Websites likewww.infochoice.com.au offer comparison

    tables of a wide range of accounts.

    Be sure to read the ne print on anyaccounts though. Some offer tieredrates, only paying top interest on

    balances over a certain limit. Itsimportant to have every cent working foryou, so look for a decent rate that appliesacross the board. And keep an eye out forregular account fees these can quicklyeat in to your savings pool.

    Tips and tricks to save a deposit

    Congratulations to the winner of theSpring / Summer 2007 MortgageChoice Its Your Choice promotion.

    Steven Caruana of Highgate Hill inQLD has won $6,000.W

    INNER

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    Thats all the time we need to show you how to get the real savings you want on your mortgage.

    With a Free Mortgage Choice Home Loan Health Check, your local Mortgage Choice consultant can help you

    nd out if your current home loan is the most suitable one available or if there are other products out there that

    better address your specic needs. With the backing of Australias leading mortgage broker - youre in safe hands.

    Wide choice: We have many of Australias leading banks and lenders on our panel

    Professional home loan advice

    Local knowledge: Were Australias leading mortgage broker because we combine local knowledge with over15 years experience

    Fax it to: (02) 9954 4913 or

    Mail it to: Reply Paid 74789, Mortgage Choice Its Your Choice Promotion, McMahons Point NSW 2060

    NAME CONTACT NUMBER

    ADDRESS POSTCODE

    EMAIL ADDRESS PREFERRED CONTACT TIME

    THE ITS YOUR CHOICE PROMOTION: Call 1800 110 170 to make an appointment with a Mortgage Choice consultant and once youveattended that appointment youll automatically go in the draw to win $6,000. There will be 1 draw and the rst valid entry will win. Winners will be

    notied by telephone and conrmed by mail. The opening day of the competition is 30th January 2008. All entries must be received by MortgageChoice at the above address by 5pm Eastern Standard Time on 30th April 2008. The draw will be held at 4pm Eastern Standard Time for the rstdraw on 1st May 2008 at the ofce of Mortgage Choice. The name of the winner will be published in The Australian on the 5th May 2008. *Complete

    Terms and Conditions and the privacy notice are available from your local Mortgage Choice consultant or by logging onto the Mortgage Choicewebsite at: www.mortgagechoice.com.au. Authorised under NSW Permit No, [LTPS/07/20443], A.C.T. Permit No. [TP 07/04901], VIC Permit No,

    [07/5211], and S.A. Permit No. [T07/4965].

    Wintowards..

    Its your

    You could save $1,000s in 15 minutes, try us!

    $6,000

    choice!

    Privacy: There will be occasions where we would like to send you valuable inormation directly related to property fnance, as well as other related oers, tips and opportunities. However should you wish toreceive only certain types o inormation or nothing at all, please contact your local ranchise principal. Disclaimer: The content o this newsletter is written expressly or education purposes and is based onthe opinions o the authors. The authors and agents or the authors are unable to accept any liability or responsibility whatsoever to any error or omission or any loss or damage o any kind sustained by aperson or entity arising rom the use o this inormation. It is recommended that you seek proessional advice relevant to your specifc circumstances beore acting on the inormation based in this document.

    STATE OF THE MARKET

    Melbourne has experienced extraordinary growth over the past months. The overall median house price in Melbourneincreased to $431,000, which is up by 13.1% over the year.

    In the September quarter the greatest increase in median prices occurred in the middle band suburbswhere the median increased by 8.1% from $390,000 to $421,795. The greater increases in themiddle and outer suburbs indicate that buyers are looking for value outside the veryexpensive inner suburbs.

    Increases in the median values for other dwellings were much more uniform withthe inner suburbs increasing by 6.3% from $395,000 to $420,000, the middlesuburbs by 4.6% from $315,000 to $330,000 and the outer suburbs by 2.9% from$240,000 to $247,000.

    Written by Real Estate Institute of Australia for Mortgage Choice

    Simply call 1800 110 170 to make an appointment with a Mortgage ChoiceConsultant and request to be entered into the draw.

    According to MortgageChoices latest independentonline survey, Australianconsumer sentiment for 2008is more positive than it wasfor 2007. 83% of respondentswere condent that oureconomy will be strong next

    year, while interest ratesremain the biggest concernfor almost half (45%),followed by economicmanagement at federalgovernment level (25%).

    Despite interest rate risesin 2007, mortgage marketgrowth remains steady,demonstrating the greatAustralian dream ofproperty ownership is

    moving forward relativelyunabated - a trend thatlooks to continue.

    Warren ORourke,National ManagerCorporate Affairs,Mortgage Choice Ltd

    Call now on 1800 110 170 or ll in your name and contact details below and

    Mortgage Choice Limited302 Charman RoadCHELTENHAM VIC 3192Phone 03 9585 7779Fax 03 8610 0365www.mortgagechoice.com.au/cheltenham1This franchise is independently ownedand operated by The Finassist PartnershipABN 51 426 348 068


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