We’re located at 767a Nicholson St, Carlton North in Melbourne. For locals, that’s the Brunswick Road end of Nicholson Street.

No! One of the reasons I made the leap from a bank manager to mortgage broker was so I could offer my customers real options. The only criteria I use in determining which bank to lodge a loan with is what is best for you. 

I am accredited with 30 lenders and they all want your business. I receive payment from the lender you choose. For a lender, it’s similar to paying commission to a bank manager based on home loan sales.

Your credit file is one of your most important financial assets. It is a record of your financial history and includes information such as

• Your name
• Address
• Date of birth
• Your credit history (past and present).  

It also contains a list of companies or persons who you have applied for credit with. It will show if you have any credit defaults, which may impact your ability to obtain finance. All lenders will check your credit file as the first step in assessing your loan application. 

Your credit file is important because lenders, mortgage insurers, employers, and others may obtain your credit report from credit reporting agencies to assess whether you can manage your finances responsibly.

 For example, lenders will use your credit report information to decide whether you can get a loan. A good credit rating gives you financial options, whether you choose to use them or not.

If you ever want to apply for a home loan, personal loan, credit card, open a bank account or even set up a mobile phone contract, it's important to have a good credit score.

Safeguarding this file is an important part of the financial application process.

Call us today on (03) 9380 8844

Visit us at 767A Nicholson St Carlton North, 3054

Or drop us an email: [email protected]

This phrase is bandied about a lot but it’s an ethical consideration for all good mortgage brokers. While a lender may loan you a maximum borrowing amount, it’s essential that you determine your own borrowing capacity when searching for your new home. A good mortgage broker would never encourage you to borrow outside your ability to repay. Why not have a look at our borrowing calculators or give me a call to discuss if unsure.

People are often confused by the difference between the deposit required by the Real estate agent (REA) and the amount required by the bank to qualify you for a loan.

A deposit is what the REA will ask for, in order for you to secure the property. This is usually 5-10% of the purchase price.

Generally, lenders want to see a savings history (over a minimum of three months) that equates to 5% of the purchase price. For example, to qualify for a loan for 400k, you will need to 20k in genuine savings. But remember, there are alternatives to general savings. Feel free to book an appointment to go through your options.

When purchasing a home, most lenders will request that you show proof of “genuine savings”. This is to show that you have a deposit, but more important, that you have an ability to save money.

You’ll need to have at least three months’ worth of savings to assess your genuine savings.

A lender may ask to see bank statements to show you are contributing on a regular basis, and to prove you haven’t borrowed an amount of cash to put in your account for show.

A few examples of genuine savings are:

• Regular deposits to your savings account over a three-month period;
• Term deposits that have been active for three months;
• Equity in an existing property;
• Gifts from family, or an inheritance that has been held in your savings account for a minimum of three months.

There are a number of loan products with different lending institutions that allow for a "payment holiday". Some examples of situations when a payment holiday could be needed include maternity leave or financial hardship. Note: please take careful note that a repayment holiday is not an interest-free period. The interest accrued in this time will be added on to your loan. 

Not all lenders and products offer this feature, and you should consider first if this is a viable option.

There are a number of great initiatives for first home buyers.

Grants

In Victoria first home buyers are entitled to a $10,000 grant for new properties. These include house and land packages, off-the-plan purchases and properties that have never been lived in. Your new home can be a house, townhouse, apartment, unit, or similar. But it must be valued at $750,000 or less, and never have been occupied previously. 

Stamp duty

When you buy your home in Victoria, you will have to pay land transfer duty (Stamp Duty). How much you pay depends on your property's value, what you're using it for, and whether you are eligible for any exemptions or concessions.

Established homes are no longer eligible to receive the first home owners grant. However, if you are buying an established home as your first home and you meet the FHOG eligibility criteria, you may be entitled to a first home owner stamp duty concession. 

If you are an eligible first-home buyer who buys a new or established home, you will be exempt from paying duty if:

• The dutiable value is $600,000 or less
• Your settlement date is on or after 1 July 2017,
• At least one of the purchasers uses the property as their home and satisfies the residence requirement, and
• The dutiable value is $600,000 or less

If the dutiable value value is more than $600,000 but not more than $750,000, you will pay a concessionary amount of duty. The concession applies on a sliding scale. The closer the dutiable value is to $600,001, the greater the concession. 

Invest the time to develop a list for your ideal property. Different people will value different things in a property, and the important thing to remember is satisfying your own check list. Things to consider are:

• proximity to your work, friends and family;
• proximity to schools;
• proximity to shops and services;
• availability of transport; and
• availability of hobbies and interests

Inquire about free property reports on potential properties in your price range and neighbourhood. 

Some people dread it, and some people think it’s a good thing. The bottom line is, in Australia if you borrow more than 80% of the value of a property, all lenders will require you to pay lenders mortgage insurance.

The amount of the LMI depends on the loan-to-value ratio. So if you’re borrowing 81% of the value of the property, the LMI isn’t going to be much. However, if you borrow 95% of the property value, the LMI will be much more.

Lenders mortgage insurance does not insure you. It insures the bank against you defaulting. The benefit of LMI is that you would not be able to borrow more than 80% of the value of the property without it.

People who are pro LMI say that it is a way that allows first home buyers and people without large deposits to get in to the housing market earlier, and it is also a great security feature for the bank.

Borrowing for an off-the-plan purchase needs to be organised in a very methodical way. Most loan approvals only last three months, though they can stretch to a maximum of 6 months. When you think about buying off the plan, remember your property will take 1-2 years to construct, by which time your loan approval will have expired. The real loan approval will take place 3 months prior to the completion of your off-the-plan purchase.

One of the benefits of buying off the plan is that you save on stamp duty. As you are paying for the land portion (and if you’re buying an apartment or townhouse), the land portion is smaller and so is your stamp duty. For example, if there are 50 apartments on a block of land, your stamp duty will be cheap that if you alone were paying the stamp duty.

There are a couple of specialist lenders who will give you a form of approval that will last 18 months. However, you will need to supply further evidence of income at the end of the process. Valuations can be tricky in relation to off the plan because you are borrowing against the valuation that won’t take place until the building is complete. It’s a complex process, so please book an appointment with us (or the mortgage broker of your choice) before proceeding, to ensure you’re informed and protected.

Call us today on (03) 9380 8844

Visit us at 767A Nicholson St Carlton North, 3054

Or drop us an email: [email protected]

The idea of property investment is one that appeals to many Australians but is sadly often overlooked because of the misconception that it's only within the reach of the wealthy.

The reality is that with the right finance, planning and strategy, an investment property may be easier to achieve than you think.

One of the key challenges to breaking into property investment is raising a deposit, but there are solutions.

Property buyers are typically required to contribute 10 per cent of the property’s value, and for some , this can be a road block.

But existing home owners may be able to unlock equity, or the increased value- that’s built up in their own home to cover some or even all of the down payment on an investment property.

 We can make this an easy process so you have the 10 percent deposit available and will not have to pay any interest until you find the right investment property.

Using equity in your home is often the easiest way to have the ten percent deposit ready for the auction or sale.

We will arrange the release of this equity for you, and you will generally not be charged any interest until you actually buy the investment property. We will make this process easy for you .

Call us today on (03) 9380 8844

Visit us at 767A Nicholson St Carlton North, 3054

Or drop us an email: [email protected]

Yes, there are fees involved with every refinance. 

Fortunately, they're not exorbitant. There may be a “discharge fee" from your outgoing lender, a government fee (in Victoria) of approximately $225, and there may be an establishment fee for the new lender. All up it usually costs around $750. 

When you refinance your loan, you may get a better rate, and a better loan product but it is important to factor the fees into your refinancing equation. If you're going to save thousands of dollars in interest and reduce your monthly repayments at the same time, refinancing your home loan is worth the effort. But you need to be sure that making the switch will be financially viable for you before you sign on the dotted line.

From time to time lenders will offer incentives to refinance. This may be in the form of a cash bonus . At present a number of the major lenders are offering up to $1,500 cash back to refinance to them. This incentive needs to be factored into the overall assessment of whether a refinance is the best option for you.

Home owners and investors may wish to refinance for various reasons:

• to take advantage of a better interest rate being offered, thus reducing monthly payment amount or loan term;
• better service and products;
• end of fixed rate period;
• end of honeymoon rate period;
• to switch loan from a variable to fixed interest rate;
• to renovate;
• Buy an investment property;
• debt consolidation;
• extend your loan term to reduce monthly payments.

Overall loans should be reviewed regularly and although refinancing is one option, don’t be surprised if staying with your existing lender and negotiating a better loan product and interest rate is the another viable option.

Yes, from time to time lenders will offer incentives to refinance. This may be in the form of a cash bonus . At present a number of the major lenders are offering up to $1,500 cash back to refinance to them. This incentive needs to be factored into the overall assessment of whether a refinance is the best option for you.

The benefits can be enormous. We have had clients who saved $100,000 over the life of their loan with a simple refinance. Interest rates, reducing unnecessary fees and getting the right loan product to meet your needs are key factors.

The benefits of loan restructure or debt consolidation can also deliver significantly reduced payments, and offering more flexibility to use your equity to create wealth is also a major benefit.

Call us today on (03) 9380 8844

Visit us at 767A Nicholson St Carlton North, 3054

Or drop us an email: [email protected]