Home Loans Australia News
Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.
Tue, 26 February 2008
Payday Loans Can Powerful Tool For Those In Financial Need
If you are in a tough financial situation, and find yourself needing cash and your next paycheck is several days away a payday loan just might be the solution to all of your financial needs. If your think you have seen those ads for the fast cash payday loans, and you and others you know assume right away that they are scams, maybe you should think again. Sure they do charge more interest than a more traditional loan for the cash that they lend you until your next payday, but you know what, there are plenty of people who need money immediately, and have been saved by a easy, simple fast payday loans that give you cash when you need it.
Yeah, I know that I am well off now, and really want very little in my life but this was not always quite the case, just as it is not the case for millions of Americans today that work hard and live from paycheck to paycheck. There was a time when I was on the edge of absolute abject poverty with not a thing in the world. It had gotten so bad that the banks were threatening to repossess my car, which would have meant that I would not have had a vehicle to travel to and from work, and if I lost my job I would only get deeper in debt and had zero income. I needed money pretty darn bad. So, I decide to look into getting money through a payday loan advance.
By money, I mean almost a thousand dollars. It's strange to have all that cash in transferred to your bank account when your used to your balance never being over a couple of hundred dollars, and knowing that you can not spend any of it on luxury items. It is all set aside for important bills, which I paid and I was no longer worried about losing my car, or anything else for that matter. The payday loan I received saved my job, and my car.
I had suddenly gotten enough to get back on my feet again. The process of getting my payday loan was really quite simple. I filled out the forms on the Internet and gave them all of the information they requested, including my bank account number and bank routing number. Very quickly I was informed my loan was approved and the money would be in my bank account within twenty four hours, and sure enough the money was tin my account the next morning. I did not have to beg a loan officer to ignore my bad credit, or convince someone that the reason I needed to borrow the money was for a good cause. There was absolutely no embarrassment on my part or judgments from the payday loan company. I did not even have to fax the payday loan company any documents, the whole process was just easy.
Several weeks after I got my loan, I paid it off. Since I paid the loan off on time the company let me know that I could get another loan with them without any problems if I needed it. I took the up on that offer several months later; I borrowed less money this time to make sure I had enough cash for my vacation. Payday Loans can be a powerful tool to help those in financial need, if used correctly.
Source: http://powerfulpaydayloans.com/
Wed, 05 March 2008
Do you have all the right Info on Credit Card Debt?
Are you drowning in credit card debt? Many people around the world (not just Americans) are. The root cause of America’s problems with credit card debt stem from a lack of education by American consumers in how credit cards (and debt) and interest actually work. If you’re drowning quick and need info on credit card debt, this article can be thought of as something of a life preserver.
The first thing to know about credit card debt is a formula called the Rule of 72. When you put money on a credit card, there’s interest to pay. Interest is the annual percentage of the initial amount borrowed that you have to pay extra each year for the average balance on the card. In a very simple case, if you borrow $1,000, at 18% interest, and maintain an average balance of $1,000 you’ll have to pay $180 in interest during that year. The rule of 72 is how banks and credit card companies make their money. Divide 72 by the interest rate you’re being charged, and you’ll have the time frame (in years) in which your accumulated interest payments on your credit card debt will equal the amount borrowed. In the example above, 72 divided by 18 is 4, so if you float your balance around $1,000 for four years, you’ll have paid roughly $1,000 in interest.
The best way to use a credit card is to pay the balance off every month in full. Unfortunately, credit cards make it really prominent to see the minimum monthly payment which is usually a payment that covers the interest and about 25 cents to a dollar of the total amount owed. If you’ve gone overboard on credit binging, that may not be doable. However, it’s usually possible for most people to dig themselves out of the hole with some fiscal discipline. It takes planning, effort and the right info on credit card debt .
The first step: Start by sorting all your info on credit card debt in descending order of interest rates. If you can make a transfer from a higher rate card to a lower rate card, do so.
Second, figure out what your minimum payments are. Now, look at what you bring in each month, and save a month’s worth of receipts. Look at what you can trim out of your budget to pay down those debts. If, for example, you go to a coffee shop every morning, that’s an additional $5 to $7 you spend every working day. Over a 21 day working month, that’s $105 dollars. If you always eat out for lunch, that’s an extra $5 there as well. We’re not saying give up all the luxuries in your life; but try and limit your Starbucks consumption to, say, every Friday, or every payday, and make coffee at home before you leave instead – a home brewed cup of coffee costs you about a nickel, rather than $5.
Next, go through your list of credit card debts. Set each card to get a payment of at least 10% over your minimum payment each month; devote all the extra to paying off the highest rate card you’ve got. Leave your credit cards at home; if you need some electronic way to pay for things, get a debit card from your bank and have it deduct straight from your checking account. Hopefully this info on credit card debt helps with a method or two on ways to improve your credit and debt standing.
Source: http://www.beatlandscreditrepair.com/
Mon, 17 March 2008
How To Get A Bad Credit Home Equity Loan
Home loan competition is red hot at the moment and consumers should be focused on taking advantage of this. The hot competition in the home loan market means there are thousands of different loans now available. If you’re not sure you’ve got the best home loan for you seek advice from a financial adviser or undertake a review of your loan with an industry accredited mortgage broker.
Borrowers should also be cautious not to take what appears to be the cheapest interest rate. In many cases there are fees, charges and conditions that may impact the real cost of loans with that particular lender. You need to be particularly cautious and do your homework to ensure that you get the best possible outcome.
Refinancing can sometimes result in lower interest rates, lower (or no) monthly fees and reduced charges for features on your loan. The savings made can then be used to boost your repayments which could cut years off your loan, saving you even more.
Even a small improvement in the interest rate you’re paying could end up reducing your monthly payments significantly and saving you thousands. Refinancing can also be very worthwhile if you want to borrow more for renovations to add value to your property.
Many people assume that their bank will offer them the best deal on offer but this is not always the case. They don’t necessarily have the best products, nor do they provide you with the right advice to meet your specific needs. An accredited mortgage broker can help you compare your current home loan to hundreds of alternatives from a wide range of the most popular lenders in around an hour. They can also help you co-ordinate the process and paperwork associated with refinancing.
Source:http://www.realestate.com.au
Sat, 22 March 2008
Online Refinancing Option
Although the Internet is useful for handling important matters, some people are leery about obtaining a loan through online mortgage brokers. Online refinancing is becoming increasingly popular. Most mortgage websites include comprehensive information about refinancing. The objective is to lessen nervousness and increase your trust in a lender or broker. Home buyers may complete applications online and receive a quote within a few hours. Through online refinancing, homeowners receive two quotes. If refinancing by way of a mortgage broker, the broker will obtain estimated quotes from different lenders. Requesting estimated quotes from various lenders will not lower credit scores. Homeowner can browse lenders and compare rates. Next, homeowners may select a lender from the brokers list and request an official quote. Upon reviewing an applicant's credit rating, lenders send an official quote highlighting the best interest rate and closing fees.
Source: http://home-loan-rate.blogspot.com/
Thu, 27 March 2008
Refinance Your Home Loan
by LetYourMortgageMakeYouRich.com
A Home Equity Line of Credit is just one Option
You can refinance your home loan a number of different ways depending on your credit worthiness. You might even consider refinancing for a shorter amount of time in order to save thousands of dollars in interest in the long run.
Of course, you'll need to discuss your options with your lender and find out what kind of interest rate you can get for different types of loans. If you intend to refinance your home loan for a home equity line of credit, your interest rate and terms would be quite different than if you were refinancing in order to save money on interest. Your mortgage broker will be able to advise you as to what your best options are.
While a home equity line of credit will be there when you need it for either unexpected expenses or a major purchase, you should ask your mortgage broker a lot of questions because if you refinance your home loan as a home equity loan you have the choice of obtaining a lump sum or setting up the home equity line of credit.
Check with more than one lender before you refinance your home loan. Make sure you understand the different loan terms available and the risks involved with each. If you will not have a fixed rate of interest, make sure you understand on what criteria it fluctuates. Is it tied to the prime rate? Don't let anyone talk you into anything, especially something you don't quite understand.
Make a comparison study of the different types of loans and interest rates available. You can literally save thousands of dollars depending on how you finance your home. Be patient and do plenty of research so you will get the best deal available.
Fri, 11 April 2008
Bad Credit And Your Home Equity Loan
Low interest rates home equity loans have become increasing popular. The collateral of your home provides an easy way to secure an equity loan, and even homeowners with poor credit can obtain a home equity loan quite easily. Caution must be exercised to balance your debt payments, though, when using a home equity loan to avoid foreclosure.
There Are Few Restrictions On What You Can Use Your Home Equity Loan For.
Low rates home equity loans can finance any need, but you must choose a type of home equity loan carefully to ensure you can repay according to the loan terms. One type of loan may offer balloon payments, offering a lower monthly payment with one large lump sum due at the end of the loan. Others types of loans may offer higher monthly payments that divide the borrowed amount equally over the life of the loan. Your situation may be best suited for either one.
Shop Around Before You Make Your final decision.
If you choose a home equity line of credit, be sure to shop around carefully. As a rule, your credit limit will be assigned based on a formula: 75% of your home's assessed value minus the amount that you still owe on the home. However, the specific credit limit that you receive will be partially based on traditional credit factors such as credit history, employment status and ability to repay.
Your annual percentage rate, or APR, is partially determined by your credit rating. Shop around to find the best APR for which you are eligible. You also need to compare closing costs and similar financial factors in order to find the best overall deal. Interest rates on home equity loans are generally variable, which means that they are tied to a fluctuating publicly available index. Your interest rate is, by law, required to have a certain cap above which it may not rise.
Did you know?
A home-equity line of credit (HELOC) is a variable-rate loan that works much like a credit card and, in fact, sometimes comes with one.
Don't Be Surprised If There Are Some Additional Fees.
Make sure that you have a clear understanding of all the fees that will be involved in your home equity loan. You may be required to pay upfront closing costs, an application fee, a property appraisal fee and other charges. You may also be charged annual maintenance or membership fees as well. If you only plan to use a small amount of your available credit line, you might end up paying hundreds of dollars for the privilege
Home equity loans are ultimately secured loans. Your home serves as the collateral for your loans. Therefore, it is quite important that you fully understand the way that your loans will be handled. There are many factors to consider when choosing among the various low interest rates home equity loans that are currently on the market.
Have A Repayment Plan In Place Prior To Taking The Loan.
A clear strategy is the best goal to have for repaying your low rates home equity loans. Paying more than the minimum monthly payment is one strategy to repay a loan and rid yourself of debt sooner. Setting aside a special fund to repay the balance on a balloon payment is another alternative. No matter what, making timely payments every month is necessary to avoid a foreclosure on your home. Whatever your decision, be informed and make the best choice for your situation.
In the end, the final choice for your home equity loan will be up to you. Use these valuable tips for making the best choice on your next low interest rates home equity loans.
Source:http://www.financeandbusinessfacts.com/
Sun, 20 April 2008
Personal loans for homeowners – one of the numerous rewards for being a homeowner
By Amanda Thompson
You no longer look at the pictures of homes cause you yourself bought one. Well, you know how you got that, it was a huge investment. Now that you are facing some financial issues and you are thinking of taking a loan to cope with monetary crisis. Taking loans is a growing phenomenon. And this has a lot to do with the changing configuration of the current economic scene. Monetary and fiscal requirement of the people have increased and in turn led to increase in loan borrowing. So, it is not exceptional that you are looking for loans. If you are a homeowner in the pursuit of personal loan, all I can say is “you are fortunate”.
Personal loans for homeowners are one of the most universal loan types available. You must have encountered it in its one form or another. It is know by many names like homeowner loans, secured loans, homeowner personal loans, mortgage etc. Personal loans for homeowners are straightforward loans which can be moulded to fit in any circumstances whatsoever.
Personal loans for homeowners exclusively deal with homeowners which mean they are unavailable to tenants. Homeowner personal loans are a great instrument for exploiting the equity in your home, to further your interests in any fashion you desire. Equity is difference between the market value of the home and the total debt against it in the form of mortgage or lien. Lien is the right to take another’s property if an obligation is not discharged. Personal loans for homeowners can be highly profitable and can save a lot in terms of your money. In case you are taking personal loans for homeowners you need to look carefully for one erroneous step would land you on alien grounds.
Keep some things in mind while looking for personal loans for homeowners. First sort out why you need homeowner personal loans. Personal loans for homeowners are offered for many reasons like home improvement, wedding, education, debt consolidation, buying a car and cosmetic surgery. The thing worth appreciating about personal loans for homeowners is that the loan lender is not concerned about the purpose the loan is taken for. Thus, homeowner personal loans cater freedom along with many other things.
Personal loans for homeowner allow you to borrow amount from $5,000 to $500,000. The amount you can take is dependent on your income and the equity in your property. Taking money that is more than you require or that is beyond your ability to repay is a serious slipup that should be avoided. Homeowner personal loans allow you to borrow upto 125% of your property. With personal loans for homeowners you might be tempted to borrow more than required. Avoid not fall into this lure for there is nothing worse than an unpaid debt.
Personal loans for homeowners would invite lower interest rate, in fact the lowest in the market. Homeowner personal loans require your property as a security. Under no circumstances forget the fact that you can lose the property under non repayment condition. The terms and condition along with repayment terms are very pliable. The interest rate on homeowner personal loans is dependent on many things like the loan amount, the loan term etc. Start by researching about interest rates. Keeping an eye on the current interest rate trends and key economic indicators will anticipate good chances of finding lower interest rates and saving money.
Personal loans for homeowners are appealing due to the fact that they offer money to even sub prime borrowers. 9% of the mortgages in the last year were sub prime, amounting to 388bn pounds in money. Bad credit with homeowner personal loans is compatible. Bad credit with homeowner personal loans would mean comparative higher interest rates. Loan lenders are eagerly considering homeowner loans applications with bad credit. If you are in the loan race for homeowner personal loans, it would require you to know your credit score. You would be paying more as interest rate if you have bad credit score.
With online application process, you get quotes from various loan lenders to compliment your financial condition and expectation. The options with personal loans for homeowners are stretched along the length and breadth of the loan market. Personal loans for homeowners are easy on interest rates, they conform to your loan expectations and you can protect your repayment in case of adversity by applying for payment protection. Is there more? Yes – you can have personal homeowner loans even if you are sub prime borrower or self employed or unemployed. With personal loans for homeowner, everything is possible. Isn’t that promising? All I can say is “if you are a homeowner, you are fortunate.”
Thu, 29 May 2008
18 Personal Loan Tips For Intending Borrowers
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.
Avoid unsecured loans if possible
Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.
Be honest in loan applications
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Can't get a standard loan? There are alternatives
If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.
Check your statements for errors
There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.
Consider smaller lenders too
When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.
Do you have to take out a personal loan at all?
Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!
Do you qualify for a 'relationship discount'?
Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.
Don't just take the dealer finance
--------------------------------------------------------------------------------
YOUR VERY OWN ONLINE BUSINESS FOR FREE??
READ MORE
Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.
Don't make multiple applications
Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.
Don't rely solely on comparison rates
All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.
Have the right information when applying
What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.
Personal lease applications will require:
· proof of current employment
· income details or tax returns
Business lease financing requires more detailed information and may include your:
· balance sheet
· tax returns
· cash flow projections
· business plan
Confirm with the lender what you will need before the interview.
Have you considered a credit card?
Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.
Honesty counts
Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.
Keep accurate records
Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.
Know what interest rate applies
When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.
Look beyond the banks
Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.
Try lenders with whom you are a regular customer
Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.
Understand what's on offer
Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?
Source: http://www.money-tips.com.au/
Wed, 11 June 2008
9 Ways to Stretch Your Income
Here are some great tips for stretching every dollar.
1. Save a penny, keep a penny.
Dump your pocket change into a jar each night.
Invest it in a high-interest bearing account at the end of each month.
Woman's Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.
Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.
2. Use your computer.
You can save big money by shopping online, if you know where to look.
Do a Google search for coupon codes before you start shopping from online merchants.
You can also purchase a local coupon book for offline purchases (The Entertainment Book, for example.) I use mine all the time for groceries, oil changes, and dining out.
3. Write letters.
Whether you love the product or hate it, write the manufacturer a letter.
A company that receives a complaint is bound to make amends.
On the same token, many companies will acknowledge--and encourage--your satisfaction with coupons and discounts.
--------------------------------------------------------------------------------
YOUR VERY OWN ONLINE BUSINESS FOR FREE??
READ MORE
4. Shop smart.
Look at the grocery store ads before heading off to the store.
Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.
5. Ban impulse buying.
Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.
6. Watch out for "nickel and dime" expenses.
Those little snacks and coffee stops can easily add up to more than $500 per year.
7. Shop around.
Research purchases on the internet.
Before making a big online purchase, visit http://www.dealtime.com and http://www.mysimon.com.
8. Refinance your home.
Signing a few papers can save you big money on your mortgage payments. In fact, if you refinance and consolidate your debts into your home mortgage you'll find that your monthly outgoings can decrease dramatically.
It's really not as big a hassle as you might think.
Ask your friends and family for the name of a good mortgage broker
9. Examine credit card use.
If you're paying credit card debt, you're paying not just 17 percent more for your purchases than you need to, you're also missing out on the money that the sum could earn for you if you had invested it.
Try calling your credit card company and ask if there’s a way to lower your rate.
One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I'd made a long time ago.
The most important thing is to recognize that you control your finances. Empower yourself with smart spending.
Source:Susie Cortright
Fri, 20 June 2008
16 Simple, Everyday Ways to Save Money
Here are 16 of the simple, everyday changes that have worked for us.
1. Use a coupon, absolutely whenever possible. I was really surprised by how many money-saving opportunities are out there when I knew where to look.
For local purchases, get an “Entertainment Book” each year and you will save on those inevitable everyday expenses ranging from dining out to accommodation and admission to movies, theme parks, etc.
For online purchases, stick to the reputable retailers. You certainly will not save any money if you are the victim of fraud or if you are simply unable to return an item. And before you start shopping, always look for a coupon code that will allow you to save on your purchase. In the past, many online retailers sent out promotional codes as a series of letters or numbers that could be entered at checkout. Now, many retailers use a button or text link that automatically activates your coupon when you click through, so it is often a good idea to find the coupon first, before you start to shop.
2. Shop around. The internet is an amazing tool for researching products and retailers, as well as for comparison shopping. We make nearly all of our large purchases online. It is also important to know where to shop. For holiday gifts, plan ahead and check out the big online discount stores. Many offer significantly reduced prices on trusted brands. And you can get great delivery rates too, even on large gifts. I once had an enormous game table shipped to me for $2.50.
3.Keep a running list of gift ideas for your loved ones. I have found that when I am confident that a gift is perfect for the recipient, I am much less likely to overspend. But that kind of inspiration rarely hits me during the pre-Christmas rush, so I need to keep a list going the whole year through.
4. Budget. Of course, it is important to know what you are really spending. For years, the budget I had in mind was really more of a “wishful thinking” budget. But this quickly led to debt. It pays to get realistic. Whether you use a computer program or a simple ledger book, make sure you know where your money is really going.
5. Save for the future. Take 10 percent of your income and put it in savings, right off the bat. Now you know what you need to cut back on (or how much more you need to earn) to shore up the deficit.
6. Plan ahead. You will want to make sure you have money in the bank for emergencies. Experts say you should have three to six months of living expenses set aside, for those just-in-case times. It sounds like a lot, but start socking away money each month, and it will add up fast.
7. Get organised. When your home is organised, you will be less likely to spend money on items that are already hiding in the nether reaches of your closet and drawers. The same goes for your refrigerator and kitchen cupboards. Purge and organize before you shop.
8. Simplify. There is a certain romance to the “simplify your life” movement. And having too much stuff really does weigh us down. Take a look at everything in your home. If it does not add joy, beauty, meaning, or usefulness to your life, give it away. And when you are tempted to buy something new, it must pass the same test.
On a quarterly basis, go through your house and ask yourself these same things again. Go through your closet, attic, garage, and basement and purge those items that do not add genuine joy, beauty, meaning or usefulness to your everyday life.
9. Reduce, reuse and recycle. A simple lifestyle, for me, is about reducing my urge to over-consume. It is about being kind to the environment. It is about spending less money on material things, so that I have more time and money to spend on memories with my family. Make changes that will help the environment and your purse at the same time. Install water saving kits on your toilet. Write on the back sides of paper. Use reusable containers in your lunches. All these little things really do add up, and it is important to show our children how we can all be part of the solution.
10. Shop without your kids. I know that if I get a shopping cart at Coles and I do not have a list, I will spend $150. If the kids are with me, I will spend even more. This is another reason it makes sense to do your shopping online. You are less likely to purchase the incidentals.
11. Make sure that your credit card is paying you back via an incentive program. I found a credit card that allows me to earn points on my daily purchases toward our annual vacation trip, including airline miles and hotel accommodations. Since most of my expenses each month are incurred at the grocery store, I found a card that rewards specifically for these types of purchases. Of course, you will need to make sure that you are paying off your balance each and every month. Paying a high interest rate on your credit card will quickly negate any savings you accrue on your incentive plan.
12. Lower your interest rates. If you are carrying a balance on a credit card, give the credit card company a call to see if they will give you a lower rate. Sometimes, it is just that easy.
13. Shop around for insurance. The money you pay for car, home, life and health insurance can vary greatly. Do some research to find out if you are getting the best rate.
14. Be wary of the influence of TV commercials and print ads, especially on your children. We hear fewer cries of “I want that!” when we keep our kids programming to those channels rely less on advertising dollars, such as the ABC and some pay TV channels.
15. Play “Time Warp.” This is a technique I first learned from “My Monastery is a Minivan,” by Denise Roy, and I use it quite a lot. It goes like this: When you are tempted to make a purchase, mentally fast-forward through the life of the item. For example, in her book, Roy thinks she needs new candleholders. She imagines spending time at the mall to find them, soon having to clean them, and then, years down the road, packing them in the giveaway box. She shirks the purchase and soon rediscovers the heirloom candleholders that are packed away right in her own home.
I like to play this "fast forward" technique in reverse, too, asking: What new clothes did I buy last season? (Sometimes, I can not remember). Where are those "I have to have it" items now?
16. Keep your mind on abundance. When you are thinking about money, it is really important to get out of the poverty mindset. Too often, when we are focused on saving money, we are living from a perspective that focuses on lack and scarcity, which tends to bring about more of the same. It has been really helpful for me to make a conscious effort to see the world as infinitely abundant and to rest in the notion that my needs will be taken care of. This is generally a simple matter of thinking more about what I *do* have than what I do not have.
All my days of penny-pinching have certainly proven to me that it truly does not take money to make us happy. Many of my fondest memories have occurred in the smallest homes. My child’s favourite playthings tend to be the inexpensive items that were never designed to be toys at all.
And it is the simple, everyday pleasures that are the sweetest, when enjoyed together.
Source: Jamie Jefferson
Mon, 30 June 2008
Getting the Most Out of Your Bank
Having a bank that meets all of your financial needs is an asset that many people don't appreciate. If you have a bank that doesn't meet all of your needs, however, it's pretty easy to tell. In order to get the most out of your bank, you may need to investigate the services that your current bank offers, or you might have to find a new bank entirely that offers the services that you need.
Here are a few tips to help you to find out which financial services your bank offers, to help you find a new bank if your current bank simply doesn't offer the services to meet your needs, and to help you take advantage of special offers and account features so as to get the most out of your banking experience.
Explore the Options Your Bank Offers
The first thing that you should do in order to make sure that you're getting the most out of your bank is to explore the features that your bank offers in order to make sure that they meet your needs. Request information from your local branch office on all of the account options and features that the bank currently offers, taking them home to read over them at your leisure and determine whether or not you're missing out on certain advanced account features.
When reading the information, be sure to look out for any common features that you've heard advertised to see if your bank currently offers them... you should also be on the lookout for any features that are offered free of charge that you currently do not use, or any that are offered free elsewhere that your bank currently charges for.
Shop Around to Find the Right Bank
Should the services that your bank offers not meet your expectations or needs, you might want to consider shopping around at other banks in the area in order to find a bank that does offer the features that you want. This doesn't mean that you should close your current accounts right away, or at all... many individuals will keep accounts at several different banks so as to keep their money separated for different purposes.
Request the account features that different banks offer, comparing them to each other and to your current bank, so as to find the local bank that best meets your current needs.
Take Advantage of Special Offers
Many banks will have special promotional offers for new customers, or have special deals that they offer current customers in appreciation of their continued business. In both cases the offer is usually a temporary one, as is the case with most promotional interest rates or special account features. However, even a temporary interest rate or promotional account feature can save you some money for the term of the promotion, so it's well worth the time to investigate the offer further to see if it's worth it.
You should be aware of services that are free during the promotional period and that are charged for later... if it's not a useful feature, you need to make sure that you cancel it before you begin to get charged for it.
Online Account Management
One useful tool that many people don't take full advantage of is online account access and account management. The online tools may allow you to check balances, transfer funds from one account to another, or even pay bills directly from your account... it largely depends upon your bank and the specific features that they offer.
Source:Bill Stone
Mon, 07 July 2008
Good Debt Versus Bad Debt
Some people see debt as a curse, and other people see it as a friend. It can be used to make you miserable, or it can be used to make you wealthy beyond your wildest dreams. The trouble is, how do we know what is good and what is bad?
Well it basically boils down to this. Good debt puts money in your pocket after you have paid for the debt (interest), and bad debt takes money from your pocket on an ongoing basis. In todays society, the world has gone through an explosion in bad debt. In the United States for example, for every $1 a person earns, they spend $1.20. In Australia things are getting worse too. We spend $1.02 for every dollar earned. Back in the 1980's we would earn $1 and save 20c.
The single most influencing factor in this curse of bad debt is the credit card. It is so easy to get a credit card these days, and even school kids have them. Most people I know have several of them, and you know what, they max them all out. People get caught in this vicious circle of paying one card off with another, and still the interest bill compounds at an alarming rate.
It is not only credit cards that are doing the damage, it is also the ability to get three years interest free furniture and home appliances with no money down. This is a huge trap, and when people live beyond their means and do not have the means to pay back their debt in the given time they are hit with massive interest rates and so the cycle continues.
So that is bad debt, and I didn't even include cars, holidays and clothes, all charged up on your card! You get the picture.
Now onto good debt. Personally, I love good debt, and any wealthy person will tell you the same thing. With good debt you can purchase income producing assets that put cash in your pocket, even after the interest bill is paid. Some examples of this include property, shares and stocks, and your own business. It even includes things such as art, wine and other rare collectibles.
By leveraging other peoples money to buy such things, you are after a time able to put yourself into a fantastic financial position, and you can now begin to pay cash for those bad debt items like expensive clothes and exotic holidays.
When I was at school there was never any lessons on good and bad debt, and I'm pretty sure they still do not teach effective money and debt management. It is unfortunate that in a society such as ours, that the government does not teach this to every man, woman and child as it has a massive impact on our lives. Just look at the sub prime fallout in the States to see how people who overextended themselves are now really in trouble.
There is a way out if you are in bad debt, and there are resources out there to financially educate yourself before you do get into any trouble.
We only have ourselves to rely upon to shape our financial future, and the longer we leave it the harder it gets. Eradicate the bad debt from your lives, and begin to live without that heavy weight around your neck.
Written by:Clint Maher
Sat, 12 July 2008
Credit Secrets - What They Are Not Telling You
Credit plays a dual role in our society; sometimes a lifesaver, and at other times a murderer.
Trying to float above imminent economical disaster is a daily exercise for the majority.
So, credit companies often seem to be our rescuer, offering attractive interest rates, interest-free repayment periods and extended credit limits.
But, what they don't tell you at the time you apply for credit could be the knife edge you've been trying to avoid all along.
With the credit secrets they never disclose, you could be ignorantly heading for disaster
You can reduce your credit worthiness by applying for a lot of credit facilities: it's a fact.
The more credit you apply for, the more it's likely to reduce your credit rating.
The credit secret is that to the creditor, you're a high-risk customer who would spend easily, someone whom they can charge a higher interest rate from (it's usually clarified in the fine print that you don't tend to read).
They don't want you to pay the whole bill: yes, that's why they have a minimum monthly payment invoice.
The credit secret here is "the less you pay on a monthly basis, the more interest gets charged on your credit remainder."
In the end, you pay almost double the actual credit, because of the prolonged payments.
Low introductory interest rates don't last very long: they lure you with minimal interest rates, such as 4%, for the first six months or so. But, if you delay even one repayment, the interest goes up immediately.
The credit secret? Baiting you ... hook, line and sinker!
Additional fees are always added: if you think your credit repayments are subjected to a mere late payment fee, think again.
Credit cards are subjected to inactivity fees, overlimit fees and transaction fees, while other credit facilities carry additional fees calculated on overdrafts, failure to maintain a minimum balance and account closure.
Knowing these credit secrets will give you an advantage over the money sharks, and save you thousands of dollars over the years.
Written by:Taylor Leonard
Sun, 20 July 2008
Cash could be king
Don't rely on China's boom to carry you through a bumpy time.For years we've been told diversity is the key to investing because while one asset class struggles, another will be doing well and level out the bumps for a consistent return...
.
Well, it looks as though we could be in one of those periods where cash is the only saviour. So it's time for an investment reality check to see where we are in the cycle.
ECONOMY
The US is in recession (we just have to wait for the official confirmation) and it looks as if Britain will follow. Some believe both economies are in for hard landings as they suffer from the credit crunch and plummeting property prices. As inflation starts to rear its head, the US hasn't much room to move, official interest rates being so low. Lift rates to fight inflation and it runs the risk of pushing that economy deeper into recession.
As for the Australian economy, we're in much better shape than either Britain or the US for a couple of reasons. First, the Australian Government is flush with cash after a string of budget surpluses has allowed a series of slush funds to be built (future, infrastructure fund, education, hospital funds and so on). There is plenty of money to throw at the economy if we come to a screeching halt.
Second, while I still think the Reserve Bank went too far in the last back-to-back rates rises, it has room to cut rates if the economy slows too much. Our official rates are among the world's highest, so there is plenty of room to cut.
Third, there is the China and India argument. Economists say that while those countries continue to keep buying our commodities, the mining boom will continue and that will underpin the economy.
Economists reckon there is no sign of the boom slowing, and they expect it to continue for years. I'm not as confident on this front. Sure, China has a big domestic market to feed, but it is an export-based economy and if its customers in the US and Europe start ordering less because their economies are in recession, it must have an impact on China's growth.
Sharemarkets are also lead indicators on the health of economies and companies. It worries me that the Shanghai stockmarket is down more than 50 per cent since the start of the year, and India is down 40 per cent.
But with mortgage approvals dropping to an eight-year low and consumer confidence the worst since the 1991 recession, average Australians are preparing for the worst.? SHAREMARKET
When boring old listed property trust GPT gets into trouble I really start to worry.
Then there's retailing star Harvey Norman, down from more than $7 in November to $3, the banks continually pounded, and now even BHP is back around $40. The sharemarket looks ugly, even the energy stocks (which have cushioned the full impact) dropping back.
As I've said before, this 5000-point level on the ASX-200 will be a critical indicator. If the markets bounce up from there solidly, some experts will be happier. If the market drops below that, there is a lot more pain to come.
Now I know there are many investors just itching to get back in the market and take advantage of some of these "cheap" blue chip shares. But I'm not yet convinced. There are three things you can do when looking at the sharemarket - buy, sell or sit on the sidelines. I'm still leaning towards the last.
Some say the resource stocks are good buying, but while they haven't come down as much as others, they're still pretty expensive when you look at the uncertainties ahead.
If you can't help yourself, talk to your broker and maybe start nibbling at some of the blue chips, but I think it is just too dangerous to take a major position believing this is the bottom of the market.
RESIDENTIAL PROPERTY
Banks have clamped down on financing, and auction clearance rates are terrible for the minority brave enough to openly sell. A mate looking for a house in Melbourne told a real estate agent he was disappointed with those available. "Don't worry," the agent said. "I've another 30 in this price range whose owners aren't game enough to publicly list them in this environment."
The best advice in residential property is just don't be forced to sell. If you're doing it tough with higher interest rates, do everything to hang on, because a forced sale could crystallise a big drop in value.
Investing for rental yield could be an option, depending on the property, but tread carefully.
CASH
Cash is king.
It's pretty hard to go by an 8-9 per cent guaranteed return in this environment, for the time being anyway.
Source:http://www.financialservicesonline.com.au
Sat, 26 July 2008
5 Tips to Compare Mortgage Quotes
5 Tips to Compare Mortgage Quotes:
1. Mortgage rates can change daily, and sometimes even multiple times per day depending on economic factors. For accurate mortgage rate comparisons, try to get quotes on the same day!
2. For most loans, the lender's rate sheets have pricing based on a lock period, which are offered in increments such as 15, 30, or 60 days. A lock guarantees the rate for a specific time. Longer lock periods usually have higher rates. Compare mortgage quotes for similar lock periods.
3. Increasing the mortgage rate will decrease the points, while reducing the rate will increases the points. Mortgage quotes have tiered pricing that allows you to buy the rate, or the points up or down. Compare quotes with the same number of points, such as, zero points, or one point.
4. Compare the APR , and have lenders quote the loan points separate from other fees. In addition to standard title, escrow, or appraisal fees, lenders have other fees with names like, processing or underwriting fee. Property taxes, home insurance, and pre-paid interest are not lender fees.
5. Approximate credit scores can be used for general mortgage quotes. If you want a firm rate, the lender will need to run your credit report, but the rate is subject to change until locked. Lenders normally use the middle of 3 credit scores from the borrower who is the primary wage earner!
Source:Posted by Handy Saputra
Mon, 28 July 2008
7 Cash Flow Steps to a Healthy Budget
The word budget can strike fear into even the strongest of people. If there is one thing very few people are ready for when they leave the safety of home for the first time it is dealing with money. There are not too many people who even know how to balance their chequebook after they open their first chequeing account. So creating a budget can be a scary proposition for anyone who isn't good at keeping track of their money.
But if we look at a budget in a different light then maybe it will be easier to live with what it is. And all it is is a cash flow plan. All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around.
Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget. Start with a piece of paper and a pencil; you can save those fancy budgeting software packages for later.
1. Write down your monthly income. If you are a salaried worker this should be easy. If your income is not that steady then add up the past three months worth of income and average it by dividing by three. This will give you a good starting point.
2. Start writing down all your monthly expenses. Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.
3. Here's the scary part for most people. Subtract the expenses from the income and see what's left. You will either have a positive cash flow or negative cash flow. Unfortunately in this day of increasing debt most people have a negative cash flow.
4. Once you have your monthly cash flow laid out in front of you you can start assigning your money to your expenses. As you make those payments throughout the month write them down to see how your spending lines up with what you have budgeted for that particular item.
5. If you have a negative cash flow then you can start looking at everything you have written down and find areas where your spending may not be in the best interest of you financial goals. As you do this you can free up money for more important financial considerations.
6. The first time you do a cash flow plan it probably won't work out quite right. It normally takes about three months to get everything working right while you figure out where your money has been going every month. Be patient with your budget and before long it will start working and you will regain control of your money.
7. Once you are comfortable with your written budget and you have better control of where your money goes and what it does then consider investing in some budget software such as Quicken. It can make your cash flow plan much easier and with the added features like retirement and tax planning it can give you a solid financial future.
By using these 7 cash flow steps you can begin your budget quickly and easily. Only by taking back control of your money can you improve your financial future for you and your family.
Written by:Andrew Bicknell
Tue, 05 August 2008
Ten Ways to Thrive in Uncertain Economic Times
Even in the worst economic environments some people will be more successful and resilient than others. Why? Because some people simply have a better psychological relationship to earning and spending money. This allows them to make the most of the opportunities around them and avoid common mistakes.
If you want to weather uncertain economic times and build a strong wealth foundation, you need to have the best relationship with money you possibly can. Here are a few tips to help you do just that!
1) Study Success, Don't Focus on Failure.
Most of us know plenty of examples of people who do not make enough, save enough, or who use money poorly.
How many examples of prosperous, successful people can you easily call to mind?
Decide what true and healthy prosperity looks like to you.
Then interview people, watch the news, and collect examples until you have a list of 50 wealthy, admirable, and inspiring people. Write this list down.
When you feel discouraged or unmotivated - read your list.
You will notice just by doing this that you see more opportunity and you are able to impress your boss or close more sales without even trying hard.
2) If In Business for Yourself, Collect "No Thanks" Responses, Don't Try to Get Clients.
In a tough economy, we often get scared and push too hard.
Often this can make it harder to get sales.
Instead, make a game of how many calls you can make, free consultations you can offer, talks you can give, articles you can publish, how many ways you can improve your product or service, etc.
Assign yourself points for each activity. Play with someone else. When you both get enough points, go do something outrageous and fun.
When you focus on the "no" not the yes you get less discouraged and stay more consistently engaged- which is particularly important when you are trying to sell in a tough market.
3) If You Work for Others, Don't Try for a Raise or a Better Job.
Instead try to figure out how you can add more value and make more money for your company.
Make it a game - how much better can you do this month than last? Document your efforts and your results.
Then you will be in a good position to ask for a raise or to present your case to a better employer.
4) Be a Language Detective.
What are you and others around you really saying about money?
Do you talk about money struggle, how money can be a pitfall or the evil ways of the rich?
Do others around you talk that way?
Listen and learn, and then change the messages you speak and hear to support your new core beliefs.
You will feel better and others will notice the change too.
5) Forgive Yourself Unconditionally for Your Money Past.
Fear and negativity from past experiences will affect the unconscious signals you send out to others as well as your own confidence and self discipline around money.
Even if you are not aware, of it a bad attitude about money could be affecting your opportunity.
To start a serious change, create a forgiveness letter to yourself and read it aloud to yourself every night for 30 nights before going to sleep.
You may also wish to talk with a coach or therapist about issues that come up as a result. This will help clear your way psychologically for new abundance.
6) Stop Making Money a Secret.
Tell someone you love about your debt or your earning goals.
When you don't talk about what you make, what you owe, or what you spend, and you are afraid to ask others about their money - you increase the shame and confusion about it.
Challenge yourself to go talk to five people about money - ask and tell all and give yourself the gift of real world perspective.
7) Stop Moving the Goal Post for Your Projects.
Some people say they want to put $5000 in savings, but when that goal has been met, it quickly becomes "not enough."
Give yourself the room to appreciate what you have done and accomplished. Make a list of 50 "successes" you have had over the last six months and keep it handy.
This will help keep you motivated and moving. If you want to move on to bigger goals, make sure you know that they are separate goals and not extensions of previous ones.
8) Make Saving Money a Reward.
Whenever you do something wise or good, take one dollar and put it in a jar.
Let this positive energy stay in there and grow for six months to a year. Then take out your savings and invest it in something that will have a long-term impact on your happiness (for example: education or training, savings, investments or anything that will have a long-term impact on your net worth.)
9) Focus On Quality Not Price.
Try not to haggle very often. In many cases, this creates an unconscious belief in lack. Either a thing is worth the energy or money is being asked or it is not. If it is, give it willingly. If it is not, look and ask for higher quality or a more satisfying purchase - not lower price!
10) JUST DO IT!
Complete those tasks you know are undone and are nagging at you and draining your mental and emotional energy. You know you need to return those library books, call your aunt, move your 401k, change your insurance, or whatever your personal procrastination items are.
The more unfinished business we have the more impulse spending we tend to engage in. Unfinished business leaves us feeling drained and keeps us in a state of inaction and denial. Both things are bad for your money. You will find that when you complete (or consciously decide to take off your list) unfinished to-do tasks, your start making better money choices.
Experiment with these ten tips and you will end up BOTH spending less and earning more. And that after all is how wealth is built in ANY economy!
Written by: Mari Geasair
Mon, 11 August 2008
Money Buddy guide to … buying your first house
The task of buying the perfect home for you and your family can be a daunting prospect, with the necessary financial considerations a seemingly endless list of outgoings. So where do you start?
The First Home Owner's Grant
In July 2000, the Federal Government established the First Home Owner's Grant, designed to assist first time buyers with the cost of purchasing a home.
To be eligible for the First Home Owner's Grant, the following criteria must be fulfilled:
The purchaser must be an Australian citizen or permanent resident buying or building their first home in Australia.
The property must be a recognised house, home unit, flat or other self-contained fixed dwelling, specifically designed for residential purposes.
The Grant must not have been claimed previously.
The home must be occupied by the applicant within twelve months of purchase settlement or building completion.
Application for the Grant must be made within twelve months of settlement or building completion.
If the home costs less than $7,000 dollars then the amount paid under the Grant will equal the purchase price.
The tax-free, one-off payment of $7,000 is not means tested, so any first home buyer who meets all the criteria is eligible. Applications made in joint names will only be entitled to one payment for the single property.
The different State and Territory Governments around Australia also have additional eligibility criteria, such as minimum age limits and periods of occupancy. All are different so check with your local authority for their specific details.
How much can I borrow?
Every lender is different but as a general rule of thumb, most lenders will offer owner-occupiers up to 95% of the total purchase price. Some loans are designed to cover the full purchase price, however these loans often come with limitations, higher fees or additional conditions attached, so always remember to read the fine print.
The total amount loaned will depend on a number of variables, such as family income and expenditure.
Saving for your home
A deposit is just one cost associated with buying a house. Others include:
Loan application fees.
Stamp duty.
Legal costs.
Insurance – including mortgage cover, home buildings and contents.
Inspection fees – including building inspection, pest and termite inspections.
Utility connections – water, electricity, gas, telephone.
Council rates.
By setting realistic goals, cutting back on unnecessary costs and keeping to a budget, saving for your first home doesn't have to be an impossible task.
The home buying process
First and foremost you need to know how much you can borrow. Without this information your house hunting could turn out to be a big waste of time. Most lenders offer a pre-approval service in which you can find out exactly how much you can borrow, even before you begin your search.
Have a good idea of what you are looking for including location, size, type of dwelling and price. Don't be pressured into making a decision by the real estate agent; take your time, because it could end up being the most expensive mistake of your life.
When you finally find that perfect home, transfer of title is a necessary legal process. This can be completed through either a solicitor or conveyancing firm. There are kits available to help you complete this process yourself, however it is a complicated procedure and not recommended for the novice.
And, finally, take all the advice you can find. This is an important and expensive exercise so, once it's all over and done with, you need to be able to relax and enjoy your new home.
Source:http://www.moneybuddy.com.au
Mon, 18 August 2008
Which Credit Card is Right for You
If you're in the market for a new credit card, there is a bewildering array of cards to choose from. There are even more incentive offers, so how can you decide on the card that is best for you? Here are some of the factors to consider.
What Kind Of Payer Are You?
The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card.
If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.
Taking An Interest
Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.
Compare Credit Cards
Want to know which card is right for you? Why not check out our credit card comparison page to view a table comparing features and benefits of some of the most popular cards. Click here.
Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.
Look At The Fees
There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.
Getting Some Cash Back
Some credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending – and spend it again with a variety of high street and online retailers.
Paying attention to these items will help you to choose a credit card that will match your financial situation.
Source:Amanda Cherry
Sat, 23 August 2008
Bad Credit Home Loans
What options do you have in attaining a home loan with really bad credit? Can it really be done? Are bad credit loans worth it?
What is a home loan?
A home loan refers to the money the home buyer must borrow from a bank or a home finance institution to purchase a piece of real estate, generally secured by a registered mortgage to the bank over the property being purchased.
With really bad credit you may be turned down for home loan financial help as you are considered a risky case. Although bad credit situations are risky, not all lenders consider it so, some even specialize in such loans that approve bad credit. Attaining a bad credit home loan, can offer you the well deserved reprieve from your debts to get your finances in order during times of despair. Don't hold back your dreams due to a poor credit situation as bad credit home loans are available and can be found with a little searching.
It is very important for bad credit new home loan borrowers to become familiar with certain common terms you will encounter when applying for bad credit home loans. Be an informed consumer and understand the home loan obligation you are signing on to. Make sure you are familiar with these terms before you start scouting for a suitable bad credit home loan product to fit your needs.
Principal: The total amount of debt, the principle excludes interest and late charges remaining on a loan.
Refinance: Paying off your existing home loans with the proceeds from a new loan.
Variable rate loan: The interest rate on these bad credit loans fluctuates in response to changing market conditions. As the interest rate fluctuates, your monthly payments will be adjusted up or down depending upon your agreed upon terms.
LTV/LCR: LTV is an acronym for the loan to-value ratio while LCR stands for the loan-to-cost ratio. Both are terms used by various home loan lenders to determine the loan amount that a person is eligible for based upon the total cost of the property you intend to purchase.
Appraisal: A written analysis of the estimated value of the real estate prepared by a qualified appraiser.
Prepayment: Repaying the home loan before the agreed date the loan was due. Be aware some programs can have a penalty for prepayment.
Penalties: Home loans can contain umerous penalties like the above mentioned prepayment penalty, late payment fees, check bounce penalties, there are many. Bad credit loans can have even more. Take the time to read the terms of the loan and don't be afraid to ask for clarification of any item you are not sure on. Be aware and understand the loan documents to know all the fees and penalties.
Sales deed: The sale deed transfers the ownership of the property in exchange for a price paid or considered. This document is required to be registered but in most cases the title company will take care of this.
Home Loans: Be careful with your bad credit home loans terms and conditions. Do not be intimidated, read it thoroughly before signing the home loan agreement. Don't be bullied because of your bad credit, there are loans designed for your bad credit situation and remember they are getting your business. You are in the drivers seat. Clarify anything that does not make sense or does not look right, trust your instincts and get the best home loan terms with confidence.
Source:ReallyBadCreditOffers.com
Fri, 29 August 2008
Choosing The Right Home Loan For You
The current home loan market in Australia is characterised by high interest rates. Official interest rates are at a 12 year high, and standard variable home loan rates are hovering around 9.6%. This means that Australian households are spending more of their income on mortgage repayments than ever.
The global credit crunch has also made it more expensive for banks to lend money to home buyers. The banks are finding it difficult to secure cheap funds, and this added expense is passed onto borrowers. The result is high interest rates that seem unlikely to substantially decrease in the near future.
Importance of comparing home loans
With high interest rates showing no signs of decreasing, getting the best home loan is more important than ever. The number of foreclosures continues to rise as home owners find it increasingly difficult to make their mortgage payments. Carefully researching all of your loan options can help prevent you from finding yourself in a dire situation.
Speaking with various lenders is a way to gather some of the basic information. However, lending institutions are businesses, so they're unlikely to tell you about the loans their competitors have to offer. They'll focus solely on the benefits of their institution's loans. It's up to you to find and review all the various types of loans that are available to you. Without doing independent research you won't get a complete picture of the market.
Another reason it's important is that there are numerous different types of home loans available. Each offers different terms and has its own pros and cons. These are a few of the most common home loans:
•Low doc
•First time home buyer
•Fixed rate
•Variable rate
•Honeymoon
•Split loans
Determining which type of home loan best suits your needs and finances is the best place to start. That way you can focus solely on the types that most appeal to you.
How to compare home loans online
For potential home buyers, a good place to begin your home loan research is on a financial product comparison site. These are sites that help you make side-by-side comparisons of the various home loans being offered. Mozo.com.au is one of the most comprehensive home loan comparison sites on the web. It provides you with comparisons, detailed descriptions, relevant news articles and a variety of financial tools and calculators.
Having all of the information in front of you is the easiest way to compare available home loans. Mozo.com.au returns search results based on criteria you select. You can shortlist home loans and compare rates, fees and features side-by-side.
In addition to comparing home loans, Mozo.com.au is a place to perform a lot of other home buying research as well. One rather unique feature is a set of user ratings and reviews on the loans featured on their website. Borrowers can glean a lot of valuable information from the honest feedback provided by people who have personal experience with a particular lender.
Given the state of Australia's home loan market, now is no time to make a hasty decision. Utilise the tools available to you by visiting a site such as Mozo to easily and efficiently perform home loan comparisons.
By: Mozo
Tue, 09 September 2008
Home Loans: Hot tips for borrowers
Buying a home is one of life's biggest purchasing decisions for most Australians. Here are 27 ways that can help you save big money on your home finance ... both before and after you've committed to your loan.
1. Add up those home loan fees
Once you've saved up the deposit for a home, don't forget to take into account all the extra fees that come with buying a house - some or all of these: stamp duty, legal costs, disbursements, mortgage insurance, pest inspection report, survey report, builder's report, strata inspection report, loan application fee, valuation fee, registration fee, sundry fees like refinancing or switching fees.
On a mortgage loan of $300,000, expect to pay at least $15,000 in fees. With mortgage insurance, this will rise to about $17,470.
2. Additional repayments
Making additional repayments beyond what's required in your minimum monthly repayment is one of the best ways to reduce the total interest paid and term of your loan.
As a rule of thumb, every $1 in extra repayments you make early in the life of your loan saves around $2 in interest over the term of the loan, depending on the level of interest rates.
Consider either one-off lump sum payments when you have spare cash or commit to increasing your regular repayment amount.
However, make sure that your loan allows you to make additional repayments without penalty.
Fixed-rate and basic (or 'no-frills' loans) often have restrictions on extra repayments or charge a fee for the privilege.
3. Ask about 'professional package' discounts
If you're earning more than $50,000 a year, or $80,000 or more with a partner, ask lenders and brokers about the "professional packages".
The home loan interest rate is usually discounted by 0.5 per cent on which ever loan you choose. Relationship discounts are also available from banks and credit unions for those borrowers who consolidate a range of planning business with the one institution.
Home loan discounts, savings account fee waivers and credit card annual fee waivers are commonly offered.
4. Be careful of 'honeymoon' intro rates
Home lenders entice borrowers to their home loans with attractive low introductory rates.
These rates may be up to 2 percentage points below the standard rates for home loans and look therefore look very attractive.
But these "honeymoon rates" only last for six months to a year before automatically reverting to the standard rate offered by that lender.
By all means take advantage of these discounted rates but don't let them dictate your choice of loan.
It is far more important to compare loans by felxibility of features and the standard rate that you will face for years into the future.
The 'comparison rate' that lenders must publish for each loan is a much better tool with which to compare the true interest and fees costs of different loans.
5. Beware fixed rates
Attractive when interest rates are rising, fixed-rate loans also lock you in for a fixed term and as such are less flexible than variable-rate loans.
You may not be able to make additional repayments or pay the loan out early without facing high penalty charges.
Fixed rate loans suit borrowers who really value the certainty of knowing exactly what their future repayments will be – property investors and borrowers on a tight budget, for example.
Borrowers trying to beat rate rises by picking the right time to lock in to a fixed rate are playing a risky game.
Such borrowers are taking a gamble on the future and the longer the period you fix, the more of a gamble it is.
Predicting interest rates three to fives years into the future is something akin to picking Lotto numbers.
6. Can't get a standard loan? There are alternatives
If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market.
A number of non-bank lenders offer loans which especially cater for this type of borrower.
The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.
7. Caution the key in current housing market
Home owners and property investors would be wise to adopt greater financial caution amid uncertainty in the outlook for property prices and interest rates.
Continued growth in household debt, easy lending practices, top-heavy house prices and the upturn in the interest cycle make a case for protecting yourself against the increasing chances of a property downturn.
In the current climate, there are number of simple steps that both prospective buyers and existing borrowers can take to avoid their investment being put at risk:
New borrowers:
allow for higher interest rates of up to 1 percentage point when budgeting for repayments over the next two years
maximise your deposit and try to keep your LVR as low as possible, 90 per cent at the most
ensure personal debts like credit cards and car loans are under control before committing to a property loan
buy for the long term, short-term speculation is more risky now than ever
Existing borrowers:
make extra repayments where possible to reduce your exposure to higher rates and falling prices
consider switching at least part of your loan to a fixed rate BUT check the flexibility of such loan arrangements. Extra repayments? Early payout penalties?
consider carefully further borrowing against the equity built up in your home – can you afford higher repayments if rates are 7 or 8 per cent?
rather than for further spending, use home equity finance to consolidate existing higher-interest debt at the lower home loan rate.
8. Check if there are ongoing fees
Many banks now charge monthly or annual administration fees on home loans.
When comparing the cost of different loans, don't just look at the interest rate, look at the 'total cost of borrowing'.
Many lenders are using 'average annual percentage rates' (AAPRs) as a means of comparing the true or total cost of loans.
Although this measure incorporates fees as well as the interest rate, they can be misleading because an AAPR will vary on a particular loan depending on the amount borrowed.
9. Check your statements for errors
There are claims that more than 50 percent of home loan statements contain calculation errors.
Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender.
We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.
10. Compare loan features, not just rates
The more flexible the loan, the higher interest you'll pay.
A variable loan which allows you to draw against repayments or offset savings against the mortgage will have a higher rate than a basic loan.
Always compare loans with the same features when looking for the best interest rate.
11. Consider a portable loan
A portable home loan allows you to sell one property and move to a new one without having to refinance, ie. pay out the old loan and take out a new one.
This saves application and legal fees.
Most lenders will insist that the loan amount required for the new property is no greater than the existing amount borrowed.
12. Do you need a redraw facility?
A redraw facility allows you to make additional repayments on your mortgage, and then have access to the additional repayments if you need to.
However, the facility is normally only available on "Standard Variable" loans, which are more expensive than basic variable loans.
Before you choose the more expensive loan, make sure you understand the conditions attached to the redraw facility as it may include a minimum amount and a fee every time you use it.
13. Do your homework
There are so many home loans on the market these days with an increasing variety of rates, fees and features that it really pays to shop around.
14. Don't fall foul of the taxman
If you're an investor in rental property, take a note of these common problem areas the ATO finds with deduction claims.
Legal fees are only deductible if they're associated with taking out a loan to buy property - not for the actual purchase.
These fees can be claimed along with other borrowing costs but not in the year of purchase.
They must be depreciated over the life of the loan.
Another deduction scrutinised by the Tax Office is depreciation, relatively easy to calculate for new properties but harder for established homes.
Investors may try to determine these on their own but can pay a quantity surveyor to do it.
This usually costs at least $500 but often results in a higher depreciation claim.
The other area targeted in ATO audits is travel expenses associated with rental properties.
Travel claims are allowed for the investor to do repairs, collect rent or carry out inspections.
The property does not have to be interstate.
A yearly per-kilometre claim can be made no matter where the property is.
15. Don't rely solely on comparison rates
All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest.
Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings.
They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.
16. Ensure your mortgage broker really delivers
Getting a broker to arrange your loan can certainly save a lot of time and hassle, but borrowers really must ensure the service they expect is the one that's delivered.
Ensure the broker fully explains in writing why his or her loan recommendation is the best for your circumstances, not just the loan that earns the most for the broker.
Ensure brokers also fully outline all upfront and ongoing "trail" commissions they will earn from lenders for your loan business.
Never pay a broker a fee yourself unless the broker is prepared to rebate some or all of their commission earnings to you in return.
17. Keep accurate records
Keep accurate records of your deposits and ATM transactions.
It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.
18. Look beyond the banks
Get a feel for what's on offer across the wide range of financial providers around these days.
Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.
19. Look for flexibility
When taking out a loan make sure it offers the flexibility to meet the changing circumstances you will undoubtedly experience over the 10 to 25 years of your loan.
The ability to make extra repayments, redraw extra repayments, fix the rate on a portion of the loan, or refinance to another loan if need be are all features to be considered.
Most fixed term and rate loans and some basic loans don't allow you to make additional repayments, or charge a penalty for doing so.
Make sure you understand the terms and conditions before taking out your loan.
20. Make the most of rate falls
If monthly repayments drop because interest rates have fallen, try to maintain the old repayment levels.
This means you will pay off more of the principal with each repayment, reduce the term of your loan and the total amount of interest paid.
21. Make your surplus cash work harder
Use cash savings to help pay off your loan quicker.
Remember the old saying 'a dollar saved is a dollar earned'? If you have a home loan at 7 per cent, every extra dollar you pay off the principal is another dollar you are not paying 7 per cent on each year.
If you instead put that extra dollar into a savings account you are only going to earn 2 or 3, perhaps 5 per cent at the most. Therefore putting savings into your loan earns you twice as much as a savings account.
These days, redraw facilities available on most standard variable loans allow you to take back those extra payments if needed anyway.
See also ‘Offset accounts and all-in-one loans’ below.
22. Pay your loan off quicker with fortnightly or weekly repayments
Converting your monthly repayment into two fortnightly or four weekly payments can reduce the term of your loan in two ways:
because there are more than two fortnights or four weeks in every month, dividing your original monthly repayment into two or four means you actually pay more over the course of a calendar month.
when interest is calculated daily, the more frequent repayments result in less interest being charged to your loan over the course of a month.
23. Quit smoking
If you smoke a pack of cigarettes a day, it is costing you almost $3000 a year.
Quit, and put the daily saving of $8 or so aside and pay an extra $240 each month off your mortgage.
24. Save interest with offset accounts
Offset accounts not only save you home loan interest, they help beat the taxman as well.
Savings in offset accounts are subtracted from the outstanding loan amount each month so interest is charged only the net amount.
Interest paid in cash to your savings account is taxable, but the same interest used to offset home loan interest is not – a tax effective way to reduce you home loan.
However, to get the most from an offset account, look for accounts which offers a 'full offset', ie. paying interest at the same rate charged on your home loan.
Redraw facilities and line-of-credit loans make use of your savings in much the same way.
25. Save with a line-of-credit loan
Disciplined borrowers can make use of the increasing range of line-of-credit loans, also called salary account or all-in-one loans, which offer the chance to make every spare dollar work to reduce your home loan.
These loans allow your income to be paid directly into the loan account to reduce the loan outstanding sooner than waiting for the repayment due date.
You are also effectively making larger repayments because you only withdraw the money you need to live on each month, leaving all surplus cash in the loan account to reduce the balance.
In this way, the loan can be paid off much quicker and thousands in interest saved. Line-of-credit borrowers must be disciplined, however, and not withdraw more money over time than is going in.
Income you bank must exceed your total expenses by at least the value of your principal-and-interest loan repayment before there is any financial benefit.
26. Use your home equity to borrow
The more you pay off your home loan, the more of the property you own or the more 'equity' in the property you build up.
With a more flexible planning system these days, it is possible to borrow against this equity for further investment; a second property, shares etc.
The advantage of borrowing against this equity rather than taking out a personal, investment or business loan is that the interest rate will invariably be lower – the better the asset you put up as collateral, the better the terms a lender will offer.
Nothing beats bricks and mortar security (in this case, your home).
27. Win rate discounts for bulk business
It's possible to get home loans with interest rates discounted by up to half a percentage point lower than the standard variable rate.
The big banks and some smaller lenders offer a package of discounts and bonuses to those who conduct all their planning with them.
These packages require a minimum loan of $150,000 -$250,00, using the lender's credit card, opening a transaction account, and having an above-average income. An annual fee for the package may apply.
Borrowers can save nearly $19,000 in interest on a $200,000 loan over 25 years if the rate is cut from 7.07 per cent to 6.57 per cent.
This will reduce monthly repayments by $63 and borrowers can save more than $25,000 in interest if the monthly $63 saving gets put towards the loan at the lower interest rate.
The package may also include fee-free planning and discounts on products such as margin loans, insurance and personal loans.
The packages are generally not promoted actively: the customer has to seek them out.
http://www.financialservicesonline.com.au
Sun, 21 September 2008
Chance to slash mortgage
THE Reserve Bank has handed you a huge opportunity. And I mean - at a conservative estimate - tens of thousands of dollars huge...
There were months of media speculation about whether the commercial banks would pass on a Reserve Bank rate cut. When it came, they virtually fell over themselves to do so.
Assuming yours delivered the full 25 basis points, your required repayments will soon drop by about $17 a month for each $100,000 you have borrowed, or $43 for each $250,000.
With cost pressures seeming to grow by the day, that's welcome news. It gets better, though.
The cut takes the Infochoice benchmark variable rate (IBVR) - a weighted average rate that reflects the discounts people commonly receive on the quoted standard variable rate - from 9.3 per cent to 9.05 per cent.
That means you will now pay almost $13,000 less in loan interest over the life of a $250,000 home loan, $25,818 less on a $500,000 loan and $38,726 less on a $750,000 one (25-year term).
But here's where the enormous opportunity lies: if you can manage to leave your repayments at their current level, you will keep from the bank - and for yourself - far more. For example:
* What is now a $43 overpayment on a $250,000 mortgage will save you $17,000 in loan interest.
* What is now an $86 overpayment on a $500,000 mortgage will save you nearly $35,000.
* And what is now a $129 overpayment on a $750,000 mortgage will save you just under $52,000.
In all three cases you will also repay your loan a whole year early.
Bear in mind, too, that this is the effect of maintaining your repayments when there has been just one rate cut. Some economists are predicting more like four in the next year in a bid to stimulate economic growth and buffer Australia from the global credit crisis.
How would a full 1 per cent fall change the figures? If the IBVR moved from 9.3 to 8.3 but you held your repayments steady, you would save $49,408 in interest on a $250,000 loan, $98,305 on a $500,000 loan and $147,773 on a $750,000 loan.
Yes, that much. And remember, it's not cost you one cent beyond what you are used to paying. In all instances you would also be debt-free 31/2 years sooner.
The reason keeping your repayments at the same level when rates fall is so powerful is that, immediately, less goes towards interest and therefore more to paying down your principal. The lower the rate drops, the more dramatic the effect.
So maintaining repayments come what may is one of the smartest ways to beat debt. With your mortgage outlay, if at all possible, the only way should be up.
What do you do to make sure you get the savings on offer? Nothing. Unless you say otherwise, your bank is unlikely to reduce the amount it debits for your monthly repayments. They are typically much quicker to adjust direct debits for rate rises because they are out of pocket if they don't.
Of course, for you to get the full benefit of what will now be extra repayments, your bank will need in future to cut its interest rates at pace with the RBA. And with profits squeezed courtesy of the credit crunch, none will commit to that.
Still, every little bit helps.
SOURCE: Nicole Pedersen-McKinnon - Sydney Morning Herald
Sun, 28 September 2008
A Useful Guide On Home Mortgage
It would be in your best interest to go for a mortgage plan that does not include the payment of a private mortgage insurance. Private mortgage insurance is a common feature of a mortgage plan, especially the ones that are traditional in nature. Private mortgage insurance, more often than not, drains your pockets and leaves you with practically next to nothing in terms of savings.
It is important that you understand the function of mortgage brokers. A mortgage broker is an individual who is in the best position to give you advice about mortgage home plans. You can go to a mortgage broker to obtain the best mortgage plan for your needs. Never think you can do it all on your own if you aren't skilled and experienced in such matters.
The strength of your financial ability ultimately determines the repayment period of a mortgage loan. A low income earner often has a longer repayment period because he or she pays lower for monthly dues. A high income earner often pays higher each month for his or her mortgage and as a result, has a shorter repayment period.
If you want to apply for a mortgage loan in California, you will firstly have to be a resident of California. Mortgage loans in California come with different interest rates and payments. Before you apply for mortgage in California, you should make sure that you have analyzed your economic strength properly.
If you don't take the time to search for low interest rate mortgage loan plans, you may end up with a plan that you will regret. Getting a mortgage loan plan that has a low interest rate demands intensive search and a little bit of extra time. To get the best mortgage loan quotes at the fastest time, you should make use of real estate websites online.
Mortgage refinance options depend on a number of variables such as the equity of your home. You must have a steady source of income to refinance your mortgage. Many people have different reasons for refinancing their homes. You should have a good reason for refinancing your home mortgage.
Do not search so much for low interest mortgage loans that you forget to search for other features such as monthly payments. The terms and conditions of any mortgage agreement you enter into matters a great deal. Avoid mortgage loan deals that come with too much consequences and penalties.
There are lots of online mortgage companies that are leading mortgage providers. For the internet enthusiast, the right mortgage loan plan is simply a click away. Intensive search on the internet will enable you to strike a gold mine in mortgage loan information.
By: JohnJamespnp
Sat, 04 October 2008
Cardinal Principle Of Homeowner Personal Loans – It Is A Solution For Any Sort Of Financial Funding
By Amanda Thompson
You bought a house and you were promoted to the position of a homeowner. It was perhaps the most important decision of your life. Now you are taking a loan and it is going to be a decision that will affect your financial plans henceforth. What if we join these two life changing things – homeowner and loan? The result is ‘homeowner loan’. The result is a Good loan but there is a scope for improvement. Let us join ‘personal’. The result is Homeowner personal loan. Now, that is one commendable loan type.
If you are a homeowner, I bet you have not yet realized the positive energy it exudes. Especially, in connection to loan borrowing. More and more loan lenders are lining up with exceptional innovations to provide homeowners in UK with homeowner personal loan. The homeowner personal loan is secured against your property. It is a secured loan with numerous advantages. The only disadvantage is that you might loose your assets in face of repayment failure. This is however one major drawback with homeowner personal loan.
The numerous rewards with homeowner personal loan include lower interest rate, adjustable repayment options, low monthly repayments, can borrow large amounts. The list is exhaustive. But there is more. Homeowner personal loan offers solution which other loan usually do not. Homeowner personal loans can be legally used for any purpose that you want to and are available to all homeowners. Homeowner personal loan have an extensive list of things that can be included under its applicability. Homeowner personal loan offer financial funding for home renovations, new auto loans, paying off credit card debts and consolidation of loans. With a Home Owner Loan you can borrow from £5,000 to £75,000 with repayment terms of between 5 and 25 years. The variety offered by homeowner loans in UK is increasing briskly.
One of the most prevalent usages of homeowner personal loan is for debt consolidation. The intention of getting a consolidation homeowner personal loan is to considerably reduce the monthly payments. The homeowner personal loan for debt consolidation is like a boon for people today. Many homeowners are having trouble due to credit card debts and other pilling bills like store card bills. Not only consolidation homeowner loans bring down the interest rate but also prosper convenience. Instead of going to various loan lenders for repayment of loans, you have one single consolidated loan which takes care of the repayment of all other bills.
Another major advantage of homeowner personal loan is especially meant for people with adverse credit. Many loan lenders offer a sympathetic outlook towards people with adverse credit. Homeowner personal loan come with security in the form of your property. This considerably reduces the risk of the loan lender. He can claim your property in case you don’t pay. Here goes the thing about loosing the property. But it is like the worst case scenario. It is not that hard with keeping up with monthly payments of homeowner home loan. However, getting a homeowner personal loan with adverse credit wont be a difficulty. Yet the interest rate of homeowner personal loan with bad credit may be higher. Compare loan rates before settling on your homeowner personal loan.
Release the equity on your home with homeowner personal loan. Get home renovations like a new kitchen or bathroom, go out on a luxurious holiday, apply for the education you want, get your sports car, or speed boat, save money through consolidation……. With homeowner personal loan – do anything.
Thu, 16 October 2008
No Doc | Low Doc Home Loan.
A "Lo Doc" or sometimes call "Lo Doc Home loan" are mortgage or home loans where documentation for verification of your income is not required. However, all other documentation is.
No Doc | Lo Doc home loans work for you.
These loans are ideally suited to self-employed, independent contractors, investors, credit rating impaired, ex-bankrupt or clients with arrears on current mortgages and borrowers who have been rejected by traditional lenders. Including people with suitable incomes but to meet bank verification takes valuable times and money.
Low Doc Home Loans (Low Document) are usually slightly more expensive than traditional loans due to the higher risk profile.
This is primarily for people who are looking to purchase investment properties, residential or refinance existing housing property and don’t have PAYG or current taxation returns confirming their income, which normally sustains a standard investment loan.
There are 3 main types of Low Document or No Document Loans.
No Ratio Loans
These loans are for lenders who may not wish to disclose their incomes, Thus there is no debt to income ratios for the lender to consider. Good credit and abundant assets the No Ratio borrower has makes up for the lender not considering the borrower’s income information.
Lo Doc | No Doc home loans take the nightmare out of applications for self employed applicants.
If gathering income documentation's is going to be a logistical nightmare, then this loan can offer a quick and easy process.
No Doc Loans
To get credit the No Doc loans requires the least amount of documentation. The lender evaluates your loan request with the minimal amount of financial information from the lender and maximum privacy is assured.
Stated-Income (Low Doc) Loans
If your income fluctuates week to week, month to month, the Stated-Income, or Low Doc loans are the most attractive. However unlike the No Doc Loans, the Low Doc Loan does require the lender to disclose earnings, usually for two years, and might need to show tax returns and bank statements.
If you think a No Doc or Low Doc loan is right for your situation, talk to a mortgage expert. It might be beneficial for you to pay a higher rate for this loan. A good mortgage banker can also show you how to obtain the necessary documentation.
Source: Finance Unlimited
Mon, 20 October 2008
The rate debate: fixed vs. variable rate home loans
Home loans generally have either a fixed or variable interest rate, or a split rate - a mixture of both. A fixed rate home loan is taken out for a set period with a set interest rate; when this period ends you can fix the rate again, or switch to a variable interest rate which fluctuates with the market.
Variable and fixed rate loans are more or less appropriate in different financial environments, and for different types of lender.
Fixed rate home loans
Fixed rate home loans have traditionally been associated with rigid conditions, but with flexible new products available, and interest rates relatively low, fixed rate loans are currently quite popular in Australia (though not as popular as standard variable rate loans). The majority of fixed-rate home loans allow extra repayments and include redraw facilities.
A fixed rate home loan can be good if you want to carefully budget your repayment - knowing exactly how much you need to repay means you can plan accordingly and gives you a degree of certainty and security.
However, some fixed rate loans still charge you for making early repayments, which means that if your financial situation becomes more positive you will often have to either pay a fee, or keep the loan for the original term and pay the full interest amount.
If choosing a fixed rate loan, you also need to consider fairly carefully the term of the loan – usually between one and five years, but sometimes up to ten. The most popular fixed-rate loan term is three years - which seems to allow borrowers a sense of security with a certain degree of flexibility, but the choice of loan term needs to suit your specific situation.
Variable rate home loans
Variable rate home loans usually provide options and flexibility, but they can also be risky in a rising interest rate market if you’ve overcapitalised on your loan. The important thing to do when taking out a variable rate loan is to plan and budget for hikes in interest rates, and make sure that you’re able to meet your repayment obligations should rates rise.
Variable rate loans can include a range of extra features, and some loan products have low introductory, or “honeymoon” rates for an initial period before reverting to the standard rate. (More about home loan types.)
What do the experts say?
A number of experts suggest that fixed loans are a better option if there is an expectation of interest rate rises in the medium to long term. However, they also warn that the benefit gained may not be enough to counter the fees you could pay to switch from a variable to a fixed rate loan.
As with any home loan advice, the key is to examine your own financial situation, and only consider a change if the fees to make the change are outweighed by savings benefits.
Some experts point out that fixed rates rarely fall below the standard variable rate for a long period, and when they do it is usually a good idea to fix at least a part of your loan. Remember that you don’t have to fix all of your home loan, but you can split the loan between fixed and variable rates with a split rate loan.
Split rate loans: the best of both worlds?
A split rate loan allows you to split your loan amount between fixed interest and variable interest rates. This means that regardless of the economic situation your loan will be partially suited to it. However, it will also mean that you will be unlikely to receive the full benefits of a choice one way or the other.
Such a choice may suit your particular situation if you need some security, but also want the chance to pay off some of your loan ahead of time.
Choosing the loan that’s right for you
In the end your choice of a loan should be determined by your situation and your own financial priorities. It is difficult even for experts to make predictions about which direction interest rates will go in the long term – your choice needs to be made with your own financial goals in mind, and take account of your income stream and need for security or flexibility.
Source:Money Buddy.com
Wed, 29 October 2008
Five Worst Credit Card Mistakes
Listed below are five worst mistakes most credit card holder make. If you can avoid these mistakes, you will benefit a lot.
1. Too many credit cards:
In most cases, a single credit card is sufficient to meet all the credit needs in a person's life.
More than one card leads to greater temptation resulting in inviting greater credit risk over a long run.
Multiple credit cards or credit accounts leave the lender with a question that the account holder must be spending all the money on the card.
2. Misunderstanding introductory rates:
Introductory rates on them are often low.
Many people get enticed by these rates. However, they give least attention to the rates that are levied once the introductory period is over, which can be as high as 20 percent.
3. Not reading the fine print:
This is the most common credit card mistake committed by a majority of people.
This is one strategy that companies apply to escape from legal entangles and also attract customers.
Most of the terms and conditions, including the interest rates, at the end of the introductory period are written in a fine print at the bottom or at the end of the brochure.
It is important to read these conditions in order to have a better understanding about the benefits offered by a particular card.
4. Making minimum payments:
This is another common mistake committed by consumers.
Credit cards should be used only during emergencies.
People should understand that credit cards offer money on credit but are not a form of income.
It is important to pay off the credit at the end of every month. With minimum payments, the trouble is going to increase further.
This is because the interest rates on the balance amount will be higher making it difficult to pay off loans for a long time.
5. Paying bills late:
When one wants to pay the credit card bill, it is better to pay that well ahead of time.
Most of the companies charge late-payment fees.
Apart from this, late payment of bills gets reflected in the credit reports, thereby making it difficult to obtain loans at better terms when one goes for any loans in the future.
Source:Pauline Go
Tue, 04 November 2008
Home Loan Information
Due to the global financial situation, banks are being much tighter when it comes to lending and residential house prices throughout the country may be on the back foot.
However, with two recent interest rate cuts and continuing uncertainty in the share market, now is a good time to look for opportunities in the property market.
Which ever way you look at the Australian residential property market, the long-term fundamentals are still there. With strong immigration levels and a rising birth rate as major contributors, Australia’s population continues to rise and… there are not enough homes to go around.
Rental vacancy rates are at, or around the lowest on record, so for investors looking for good returns with long term capital growth potential, property continues to offer great opportunities. Add to this the governments increase to the First Home Owners grant and we see potential for more activity in the housing market over the coming months.
Bruce Watt
Australian Residential
Property Planners
Sat, 08 November 2008
Best Home Loans Australia Has to Offer
Home Loans Australia may or may not be a company but it's the most common search term used by Australians who are looking for information on the best home loans Australia has to offer.
In fact the best home loans Australia has on offer changes almost daily. Banks continually change their product line up and tweak their offers to attract different segments of the market all the time. In order to find the best home loans Australia has at any one time you need to locate a favourite web site that continually updates the information and provides links to various unbiased information sites.
It's all a matter of choice but as a guide to what to look out for here are some tips on choosing your best sources of information as you search for the best home loans Australia has on offer.
1. Individual Banks and Lenders sites will only contain information about their own products. Sometimes the information may say things like "Winner of Best Home Mortgage 2006" or something similar. This may be misleading, simply because the category of the award may not suit your circumstances or needs. Also it does not mean that it is the best rate. Awards are judged on different criteria and you need to know what these are before you can judge the products they are claiming to be the "best".
2. Not all banks or lenders have sites that fully explain how their products work. It is a simple fact that home loans are very complex and each individual applicant will have special differences. It is these differences that make choosing the best home loan from web site information almost impossible.
3. Generic information sites like infochoice and Cannex have an amazing amount of information that may point you in the right direction. They also offer an unbiased approach. However, they also have so much information that it is difficult to fathom your way through the information which is relevant to you.
4. Mortgage Brokers often have the most relevant information to make your decision making easier. This is because they can filter out the less pertinent products and information and narrow your choice. This certainly makes life easier for you, provided you choose the right Broker.
5. Most Mortgage brokers sites are difficult to find and often they fall into the same category as the banks, ie a lot of information but nothing specific to your needs.
6. Look for Blog sites where you can see how up to date the information is. Anything more than a week or so old may indicate stale information.
Don't despair however. Once you find a Mortgage Broker you can trust, either through a recommendation from a friend, or simply calling a few and comparing their approaches, you will be well on the way to finding the best home loan Australia has for you.
You can ask the same questions and see what answers you get. Hopefully the information you receive will be consistent and your choice will then probably be based on how comfortable you felt during the discussion.
Source:By Expert Author: Mikey Haydon
Wed, 19 November 2008
Benefits of Paying Your Mortgage Down Early
LetsGetCredit.com Exclusive
There are two schools of thought on the practice of paying down a mortgage early versus taking that extra money and investing it. This article will discuss the benefits of paying down your mortgage early.
The obvious benefit of paying your mortgage early is the reduction in how much interest is paid. At the beginning of a mortgage, such a large amount of every payment goes towards interest and so little goes towards the principal that it’s almost appalling. By paying the extra amount each month, you chip away at the principal of the loan much faster, meaning you pay much less in the long term life of the loan.
You actually need to alert your lender that you want to extra cash applied to the principal of the loan because some lenders (crafty as they are) will credit the account as a future month’s payment. You should send an email telling the lender to apply the extra money to the principal and ask for confirmation.
Not only do you save on interest, but you also will find yourself mortgage-free at an earlier age. Some people find the idea of being completely debt-free incredibly appealing.
How much should you increase your payments? It depends on your personal goals. Here are some sites with mortgage calculators to help you figure out how long it will take you to pay off your mortgage if you pay different amounts:
www.fool.com
www.vertex42.com
www.bankrate.com
www.interest.com
You can also find out exactly how much interest you will save yourself from paying if you run the numbers on this online calculator at www.move.com. For example, if you paid off your $200,000 thirty-year home mortgage in fifteen years (with a fixed interest rate of 5.4%), you’ll only pay $92,243 in interest instead of $204.302.
Those numbers can be shocking – especially to those who didn’t realize they agreed to pay that much interest in the first place!
Some people decide to get a shorter loan (a fifteen-year loan instead of a thirty-year loan, for example), but this locks you into a tighter payment schedule, which means you may end up getting burned if you lose your job or become disabled or decide you want to apply that extra cash elsewhere (say for an adoption or to help an elderly parent in need.)
While many people argue you’d make more if you took that extra money and invested it, you have to ask yourself if you’re disciplined enough to actually do that. Many people find it’s easier to write the check for more each month on their mortgage payment than it is to take the time to invest more.
Paying off your mortgage early will definitely save you money. The question that remains is the following: Would you save even more money if you invested that extra money and took the tax deductions off the interest paid on the mortgage payments? A lot of that answer depends on your ability to discipline yourself to make those investments, and to choose your investments wisely.
Tue, 25 November 2008
Getting Home Mortgages Online
In the past, getting a home mortgage often meant trudging to the bank or spending hours on the phone trying to complete an application. Not only was this time consuming and frustrating, but often buyers were left confused and blinded by all the technical jargon being used by the financial experts and sales staff.
The Internet has changed the way we do many things over the past decade or two, and these days using the Internet can save us a great deal of money and hassle in many ways.
These days, the majority of people look at getting home mortgages online, and this is because this method of getting home mortgage offers a whole host of benefits. You can eliminate the worry, hassle, and inconvenience of looking for a mortgage when you go online, and you won’t have to worry about being pressured by sales people as you have full control when you use the Internet to try and get your home mortgage.
Some of the benefits of getting home mortgages online include:
The ability to browse mortgage deals and make applications from the comfort of your home or office and at a time that suits you.
Being able to compare a wide range of home mortgage deals at the touch of a button without having to call around to a variety of lenders.
Being able to calculate how much you can borrow and what your payments will be through the use of online mortgage tools.
The ability to complete your application quickly, simply, and efficiently online and submit it electronically for processing.
Being able to get an instant decision in principle from a wide range of lenders.
The ability to get far better deals with a much wider range of lenders to choose from, many of which often offer special reduced rates for Internet customers.
These are just a few of the many reasons why getting home mortgages online has become such a popular method of searching and applying for this type of loan.
Source: Credit & Mortgage Index
Wed, 10 December 2008
Adjustable Rate Mortgage Loans: Covering the risk involved
Adjustable-rate mortgages (ARMs) are loans with interest rates that change.
After you refinance your previous mortgage or perhaps after purchasing a home thanks to adjustable rate mortgage, a time comes when start to wonder about the future when the introductory offer or period will come to an end.
There have been a number of cases where homeowners who had financed their home using variable interest rates mortgage loans were shocked to see the new adjusted interest rates and thus, the newly adjusted monthly payment. Once you have read this article, you will learn how to avoid falling into a mortgage payment crisis and how can stay safe from a possible financial disaster.
First of all, start by searching the internet and reading the newspapers. Plus do a little research and you will find that a lot of people bought their homes during the recent boom in housing. While the idea was right, the basic mistake they made was buying a house that they could not afford. That was not just a mistake, that's what you call a blunder. A huge number of such homeowners bought these homes by getting qualified for loans using interest rates only. You might be wondering why? Well that's simply because they could not get approved for the general mortgage terms and conditions that are generally very safe and secure.
It's a well known fact that owning a home is a dream and specially buying a home that looks just like your dream home can be very attractive but, it should not cost you financial disaster. The biggest mistake that you people make in their financial lives is purchasing beyond limits. It can be a car, a home or anything else for that matter. Never make a purchase that is going to cost you an arm and a leg. Look at it this way; you will never be able to enjoy your house if it causes you a financial disaster.
In most of the oases, homebuyers can afford to pay their dues during their interest only or option period but once that ends, they find themselves trapped, unable to make monthly payments.
If you have already acquired one of these loans, do not get worried. Start by reviewing your contract to find out exactly when the interest only or option period ends. Usually, this would last for around 4-6 years. Once that period ends, your mortgage loan will be converted to a standard adjustable rate mortgage which will be amortized for the remaining part of your loan period.
Basically, what it means to you is suppose that your mortgage loan was for thirty years in total, including 5 years of the interest only period. After the first 5 years, your mortgage payment will now be based on a 25 year payment schedule. Does not sound like a lot does it? But actually it means that after the interest only or option period, your monthly repayment dues will be higher not only because of the interest rate going up but also because you now have 25 years to repay the loan amount instead of 30. This is where it differs from the conventional mortgage and this is why a normal mortgage loan is a lot safer than an adjustable rate mortgage loan.
To conclude, chances are that you may not be able to repay the loan after your loan has been converted and. And if it does happen to you, then remember that you are not the only one. If you want to avoid it, start taking measures now and review your contract as soon as possible or get in touch with your lender immediately and ask them about your interest only period.
Once you know when your introductory period is going to end, you can start taking actions to avoid any trouble in the future. Try to get your mortgage refinanced. If you can not quality for that then you might not be able to afford the remaining payments. You can either start a second job, start saving more money or may even consider selling your home.
Source: Credit & Mortgage Index
Sun, 21 December 2008
Mortgage Refinance
A refi or refinanced mortgage is a mortgage that is paid off by talking out another mortgage.
The most important thing that folks should consider when refinancing their home, but often don’t, is what the total cost of the new mortgage loan will be as compared to the old mortgage loan. Sure the monthly payments may be lower, but what about the total cost. Many lenders and mortgage brokers will often glamorize the lower interest rate and fail to mention there will be an increase in the total mortgage cost. Sure, the total cost of the loan can be found on the settlement documents, but at the time of signing, do you think you’ll have a copy of your old loan documentation to use for comparison? The point here is to be sure you compare your old apples to the new apples – compare the total costs of the loans. Most of us want a lower interest rate at no additional cost; do not be blinded by the better interest rate alone.
Getting cash out of your refi will often bump up the interest rate on the new mortgage because most lenders are of the opinion that borrowers who need cash may have some financial distress and therefore are considered to be a higher risk and given a higher interest rate. However, if the new interest rate is low enough that a slight bump would still be lower than the interest rate on the original mortgage, the slight bump could be considered inconsequential.
Another item to consider when refinancing is the additional settlement costs for the new loan, which may be added to the total loan cost unless these expenses are paid in cash. By spreading these expenses out over the total length of the new loan, a break-even period can be determined where the addition of this extra cost becomes cost effective. For those individuals who are not planning on carrying a mortgage for a long period of time, this break-even date is essential information when considering a refi.
Source: Mortgage Translator
Fri, 02 January 2009
Spend or Save?
Should we all take every cent and stash it under our bed until it becomes noticeable?
Should it be straight forward.
There is a difference between spending money and spending money wisely.
We've been brought up in a consumer world, purchasing our flash screen televisions, luxurious cars and beautiful homes and receiving a letter in the mail informing us have we forgotten about the bank.
The world has accumulated huge debt and many people are hurting as a result of the 2008 Financial crisis.
I've been taught to only buy what you really need and save the rest.
The best things in life are free or so the saying goes, we don't always need those luxury items regardless if we are young or old.
However, our busy lifestyles get to us and it gets harder and harder as we go along and that bank card saves the day to buy that nicety to live comfortably, or so you think...
So ask yourself, what do the wealthy do?
They use credit cards but why aren't they are debt?
Well, they may be in debt to a certain degree, but this is referred to as 'good debt' and is managed properly.
Credit cards are simple tools used by the wealthy whereas the poor use them as fast money and this is where we, as a country go wrong.
We have created this mindset of using someone else's money to stroke our own greed and not using our own.
More or less, to have now and pay later.
Sure, credit cards are great - in fact, they are one of the best tools you can use, however many aren't taught this and get swooped into spending what's not theirs.
Technically, money is worthless but what it represents, makes our world go round and until you inhabit the fact that money means nothing, you will always be emotionally attached, therefore money controlling you and your life.
So what do I suggest:
* Spend what you can afford - never overbuy
* Don't skimp on important necessities like fresh fruit & vegetables.
* Think abundance, believe everything is within your grasp but don't be greedy
* Put money aside when you can but don't be a scrooge.
* Relax and enjoy money. It can bring happiness, but that's up to you.
The worst thing you can do now is pull all your money out of the bank.
Our Australian banking industry & economy is strong by all regulations that have been put in play over many decades. If everyone pulled out their money, how would the economy survive, on bread and water?
At the end of the day, you will do what you want though I would recommend just thinking about your current situation. Sit down outside, enjoy the sun and fresh air and think of what to do next.
Thinking on emotion is the worst possible way, it will always lead to mistakes...
Sat, 17 January 2009
No Deposit Home Loans
Need a "no deposit" home loan? Internet Home Loans make borrowing for a 100% home loan possible.
YES, you can borrow 100% of the purchase price for your home or current value of your home. In some cases, more than a 100% finance to allow funds for costs or to consolidate other debts.
Some examples:
First home buyer, borrows 100 per cent of the purchase price then uses the $7000 first home owners grant and government stamp duty concessions to cover all or part of the costs.
A 106% home loan could be used to cover purchase price plus costs.
Consolidate debts using 100 percent home loans.
Borrow 100% of the purchase price and combine this with a personal loan to cover costs and/or consolidate other debts.
Use family equity, that is, a family property used as a second security property. Excellent way to avoid mortgage insurance costs.
There are many ways to secure your 100% home loan. 100 percent home loans are not limited to first time home owners. However, the first time home buyer can take advantage of the first home owners grant and the relevant state government stamp duty concessions to achieve home ownership sooner! In some cases, none of your own funds will be required at all.
Not all home loan lenders offer a 100% home loan finance and those that do offer a no deposit home loan have vastly different policies and costs. Your allocated mortgage broker will help by sorting through these complex policies and find the right home loan lender to match your 100 percent home loan needs.
100% home loans or a no deposit home loan provides a great entry point to home ownership. Why pay a landlord when you may qualify for 100 percent home loans?
Source:internethomeloans.com.au
Thu, 12 March 2009
Home Loan Approvals Up 3.5pc
The number of home loans approved for owner occupiers has risen as lower interest rates and improved housing incentives flow through to the market...
Official figures show almost 56,000 loans were granted to owner occupiers in January, in seasonally adjusted terms.
That is 3.5 per cent more than the previous month but below economists' expectations of a 4 per cent rise.
Westpac economist Andrew Hanlan says the rise has been driven by first home buyers, with lending up 60 per cent since August.
"It's certainly clear that housing demand, or demand for housing finance has been in recovery now for five months," he said.
"That comes as no surprise given the change in interest rates and the Federal Government's incentive for first home buyers."
SOURCE: ABC News
Thu, 09 April 2009
Apply for Home Loan- How Much to Borrow?
To find out exactly ‘how much you can borrow?’ we will help you establish what sort of property you can afford to buy, where you can afford to live, and most importantly, we will get you started on your way to receiving the best and most appropriate home loan for your unique situation.
Take the first positive step in sorting out your home loan! Choose a home loan prduct from the right hand column on this page. Submit the form confidentially to find out how much you can expect to borrow for a home loan based on your current income and existing expenses. An Financial Services Online .Cconsultant will contact you ASAP to inform you on your current “Borrowing Power”
Mon, 25 May 2009
Home Loans for Improvements
Home improvement loans are loans specifically designed by loans companies to help you fund an essential home improvement project!
Home improvement loans provided by loans companies are secured on the value of the borrower's property. The amount available to the borrower is subject to the equity in their property and their ability to repay home loans when their outgoings and other loans are taken into account.
Loans to make improvements to your home that will increase the market value.
A home improvement loan is one that is issued by the lender on the basis that you use the amount of the loan to make improvements to your home that will increase the market value.
Typically a home improvement loan is offered by your existing mortgage lender, where the equity value in the house acts as security for the lender. Where this is the case, the amount you can borrow may be determined by the amount your improvements will add to the market value of your home.
Home improvement loans can be arranged at the same time as you are buying the property. This is as long as the total amount of mortgage and home improvement loan will not exceed the value of the property.
The reason why you would want to get this loan from your mortgage lender is that you may be able to obtain the same interest rate on the loans that you are paying on your mortgage, which cannot be beaten with a personal loan.
Home improvement loans are in some ways an extension of your mortgage, in that the first port of call for someone wanting to carry out major home improvement work on their home would be their mortgage lender. It is, however, a separate loan, which can be paid back over a different period.
Loans secured for home improvement are flexible in duration.
The mortgage lender will not discourage this home loan, as it is in their interests for improvement work to be carried out on the home they are lending on, considering that they effectively own it until the mortgage is repaid.
Loans secured for home improvement are flexible in duration. The loans are independent of mortgage loans and are typically available with loans repayment terms of between two years and twenty five years.
There are countless home improvement projects that can be undertaken using improvement loans. New interior decoration can be funded by loans for home improvement, as can the purchase and installation of a fitted kitchen, bathroom or conservatory.
If you want better storage in your home then loans secured for home improvement can be used to purchase fitted bedroom furniture or to develop unused spaces in your home.
Loans for home improvement can be used for garden improvement too, such as landscaping the garden.
Larger loans for home improvement can be used to design and build an extension to your home!
Fri, 10 July 2009
Low Doc Loans
Lo Doc loans are an abbreviation for Low Documentation Loans. They are also sometimes referred to as No Doc Loans but mean very much the same thing. If you have limited financial records then this type of loan may suit you. These types of loans are becoming increasingly popular are are often replacing the more traditional form of loan where a person would need to provide much more information in order to get approval. A huge choice of Lo Doc & No Doc Loans are now available
Low Doc home loans are available for up to 90% of your property valuation. You may be earning income which is hard to prove in the paper based format required by many home loan lenders. The bottom line is, you know how much you earn and can afford, so why the need to present mounds of paperwork to prove it?
Low documentation home loans are available for all purposes including first home loans, investment home loans, equity home loans, home loans for business purposes, home loans for investment purposes… in fact a low documentation home loan can be used for all of the same purposes as a fully documented home loan.
Home loan interest rates were historically increased for lo doc home loan applicants. Now, with the competition for business, many home loan providers will allow you to access the same home loan rates as you would with a fully documented home loan. Yes, your lo doc loan rate or your no doc loan rate may be as competitive as if you had all the documentation in the world!
No doc home loans provide an excellent solution for the home loan applicant nt that prefers to disclose as little as possible about their assets and liabilities. No Doc home loans are available with little more than name, address and property details required. With no doc home loans, there is no declaration of income required only your personal declaration that the repayment is affordable. This is an excellent home loan solution for the person, or company, that is asset rich but cash poor.
Online lenders make the process of home loan application even easier. They provide free quotes at competitive rates and can sometimes outperform the major banks because their overheads are usually lower. No need to make interview appointments because all you need is access to the internet. Here is a list of online lenders that offer competitive rates on a range of products with superior service:
• www.homeloans.quoteplease.net
• www.homeloans.advice-please.com
• www.homeloan.capital-life.com.au
Fri, 21 August 2009
First Home Buyers Pay Attention!
Exciting times! It’s time to buy your first home! But …. How do I apply for my first home loan? How much deposit do I need for my first home loan? Can I have a 100 percent home loan with no deposit? How do I apply for the first home owners grant?
These are normal questions, amongst many others that a first time home owner needs answers to.
Your very first home loan type will depend on your own unique circumstance. Correct presentation of your home loan application to the right lender will make all the difference to your dream of buying your first home. We know what they are looking for in your home loan application.
An excellent approach is to secure a formal pre-approval for your first home loan that will meet your requirements. There is no fee charged for this service and by having a formal pre-approved home loan in place, you can then go shopping for your first home with an accurate understanding of how much your lender is likely to lend you. The rest is easy!
Your allocated broker will help you secure your Government first home loan grant and an unconditional home loan approval. Then comes the home loan and mortgage documentation… something that can also seem a little daunting for the first time home owner. Again, your broker will be available to help you by guiding you with “what happens next?.
From your first contact and home loan qualification all the way through to settlement, your allocated home loan broker is at the ready to answer all the first home loan questions you will have and make the dream of being a first time home owner into a reality.
www.internethomeloans.com.au
Mon, 04 January 2010
Home Loans Australia- Tips
If you are searching for a home loan it is extremely important to do some research to find the best deal. Get several quotes then compare the options and possibilities that each offer. Online home loans may be your best solution, often with the best home interest rates and lowest fees and costs.
Even a 1% lower interest rate can potentially save you thousands of dollars over the term of a loan bearing in mind that most loans are taken over 25 to 30 years.
Try to secure the best home loan rate possible, and keep in mind the payment period, overall sum and dynamics of the repayments. Here are few handy tips when applying for a home loan. Pay close attention because they influence the rate of interest you will be paying for in years to come.
1. Credit score
Your credit score is a major factor in determining loan eligibility. It doesn’t only influence your interest rate, but also influences your possibility of even being eligible for a home loan. It is the same for most other credit applications..
If you have a poor or bad credit history your credit score is likely to be low. Ask your lender what your options are. Some offer loans tailored for people in a less than favourable credit capacity. Others may offer you some advice on how to improve a poor credit history. For example you may consolidate any smaller loans, start a budget and work towards accumulating some savings. This will show potential lenders your commitment and ability to repay a home loan.
2. Debt to income ratio
It is likely that your lender will require some personal financial information. This will give a brief snapshot of your financial position. You will need to provide information on your weekly or monthly income. If you are self employed you may need to have previous years tax records available. All other income such as dividends, rental income, social security payments, etc should also be provided as this will all count towards how much you will be approved to borrow.
Next you will need to provide your debt information. This will include your credit card limit, car loan and all other loans or financial obligations. The larger the margin between what you earn and what you owe will be a major factor in determining how much you can borrow.
3. Down payment or Deposit
Many lenders will offer home loans with a low or no deposit. You need to bear in mind that a higher deposit will reduce the amount of mortgage insurance required. Ultimately, a larger deposit is better and will make the whole loan approval process more likely. Often it is wiser to search for a cheaper property if your deposit is relatively small.
BOOKMARK THIS WEBSITE
To add Home Loans Australia to your favourites, simply
click here.
|
home |
news |
links |
|
