Dec 22

Finding the best Mortgage Broker available

Published in Untagged  by 0 |
One of the few things that you will find an excess of is mortgage brokers. In some areas, more mortgage brokers exist than banks. If you can find a good broker, the process of purchasing a home could be easier and quicker for you. How do you find the right mortgage broker to help you and your family with one of the most important purchases you will make in your lifetime. Good and bad brokers are everywhere and a bad broker could make the purchase of the biggest investment in your life, difficult and possibly more expensive than necessary. You want to avoid the bad broker who is only concerned about getting the highest commission he or she can. Most brokers have only your best interest at heart but all it takes is one to ruin someone's home buying experience. Mortgage brokers get paid by the bank and some will use this situation to their advantage. Finding the best mortgage broker is not impossible if you do some research first. Learn about the brokers in the area where you are interested in buying a home. Check out the references of the brokers and see what prior customers or clients have to say about the broker. Some of the people who can help you might be independent or part of a larger organization. You might recognize the name of the company but you should not count on the company's reputation without doing some background research. You can check newspapers, websites, and recommendation from people you know to see who the best mortgage broker might be. At least you should be able to narrow down the choices to a select few brokers. Once you have narrowed down your choices, you can arrange one-on-one meetings with the brokers. Most times, you can get a feel for the personality of the broker once you have met them in person. During your meeting, you can learn a great deal about the professionalism and ethics of the mortgage broker when you meet them in person. The broker should be positive, outgoing, and knowledgeable. Plan for the meeting and think about what questions you might have for the broker. You will need to be sure to ask how long it takes them to get formal approval on a loan and what the deadline is on the financial clause in the contract. You could consider asking if the broker has any connections or affiliations with a particular bank. Because they have a connection with a certain bank does not make them someone you should not do business with. However, you need to be aware of the connection when it comes time to their recommendation. You can find a great mortgage broker to help you with your purchase by doing the research on the possible choices. If you know what you are getting into, you will be in better shape to take advantage of the resources of a great broker. A good mortgage broker can speed up the process and make sure you get the best possible loan at terms that benefit you.
Dec 16

Do you need a Mortgage Broker

Published in Untagged  by Vicky Edema |

Most people do not think they need a mortgage broker to help them to get a loan or buy a home. These people would be very wrong. A broker can help you to get your mortgage easier, quicker, and more efficiently. Take advantage of any help you can get because a mortgage broker can go through your circumstances to help determine what your individual requirements might be for the mortgage you are seeking.

[...]


Dec 15

Home loan Finance Done Right

Published in Untagged  by 0 |

Most people make one big mistake when it comes time to buying a new home. Imagine spending days, weeks, or months searching for that perfect place that you hope to buy, finding it, and then realizing you do not have the home loan finance to buy it. It is a lot like fooling yourself into thinking you can have anything you want without having the means to pay for it. Do not put yourself through the heartache that many people will go through when they are ready to buy a home.

[...]


Dec 14

Creative Ways to Get a Cheap Home Loan

Published in Untagged  by Vicky Edema |

Two primary ways to get a cheap home loan is to shop around for a lender and getting the most out of your equity. Even if you have bad credit or a lack of credit, you can still procure a cheap home loan as long as you have some equity in your home.

First, look around and do some research on the possible lenders that might be able to help you. Each lender will offer different interest rates. Shop around and gather the different possibilities then go online and see what some of the online lenders may offer. Offline lenders are often able to offer lower prices because they have little or no overhead. Many online lenders can provide a cheap home loan faster and more efficiently. After gathering quotes from lenders, you can compare them and determine which can provide you the best options.

Equity is an important way to maximize your cheap home loan. Equity is the amount of money that you have paid for your home against the amount that is still left to be paid. To get the most you deserve, make sure you do not ask for more than the equity you have built up in the home itself. If you ask for less than what you have in equity, a lender will be more inclined to provide you with a cheap loan because they do not have to worry about what would happen if you default. Asking for so much less than what you owe, will provide you with a better opportunity to get what you are looking for in a cheap home loan.

Secured cheap home loans are a very popular because they are very easy to secure even when someone has bad credit. Due to the low risk associated with this type of loan, lenders will still offer cheap rates and are not worried about repayment. One of the convenient ways that this type of loan works is that it can allow you to take a short-term loan instead of having to commit to a long and drawn out loan.

If you do take advantage of a cheap home loan, you need to be sure to pay attention to the fine print and make sure you do not miss a payment. Another advantage to taking out this type of loan is that you can help to rebuild your credit history at the same time. You can use the loan to help improve the value of your home, pay off medical bills, or even taking a holiday trip. The loan could be sued to take care of other bills. Consolidating some debt can also be accomplished with a cheap home loan.

Many organizations exist to help you get the best cheap home loan possible. With a little research and some homework, you should be able to find one that wants to provide you with a cheap home loan that will get you what you need out of the equity in your home and still be affordable.
Dec 10

Carefully consider your investment loan to build wealth and maximise your financial position

Published in Untagged  by Vicky Edema |

When you enter the investment market one of matters to which you should givfe careful, consideration is your investment loan. Most financial planners and accountants will generally recommend that you gear your investment to gain tax benefits. Gearing your property acquisition with an investment loan will generally provide you with a negative gearing benefit. Negative gearing applies when that the rental, business or dividend income you receive from your investment property, business or share portfolio is less than the costs associated with your investment as well as the interest on your investment loan. The “negative” shortfall between your investment income and the costs plus interest on your investment loan is an allowable deduction against your normal salary or self-employed income.

 

By claiming the shortfall that results, primarily being the interest on the investment loan, as a deduction against your normal gross income you reduce your annual income and as a result the tax you pay.

 

When considering an investment loan there are a few important matters you should check out:

  1. Make sure you have an interest only component in your loan from the outset particularly if you already have existing home loan or personal / credit card debts. The reasons for this are two-fold:

            (ii)        Rather than making a principal and interest payment on your investment loan you should keep your payments on the investment loan to a minimum and use any surplus cash to reduce any personal or home loan debt. This is because the interest you pay on personal debt                      is not deductible. You are paying interest on anything other than an investment loan in after tax dollars. This makes personal borrowings very expensive – often termed “bad” debt because of the non-deductibility factor.

            (ii)        By just paying interest only on your investment loan you are not reducing the loan balance nor the deductible interest that you can claim on the investment loan.

 
  1.  If you have a home loan or personal debt at the time you are taking out an investment loan then you should look to include an investment line of credit within your investment loan package. This will provide you with access to funds to meet any shortfall in the interest repayments on the investment loan as well as any unexpected or standard costs in relation to your investment e.g. you may have a vacancy factor that was not factored into your cash flow – you draw on the investment line of credit to meet the regular monthly shortfall or any unexpected shortfall as noted above. By utilising the line of credit to meet the any costs or interest shortfall on the investment loan you are avoiding subsidising these costs with your personal income. Instead of using your personal income to meet the shortfasll costs you can instead apply what you would normally have paid to making an additional repayment to your non-deductible home or personal loan. This is a much more tax efficient way of using your personal income as opposed to using it to subsidise your investment loan and other costs associated with say, an investment property.
Dec 10

Investment Loan choices should be well considered

Published in Untagged  by Vicky Edema |

Many borrowers entering the investment loan market are happy enough to run with their existing bank who invariably will recommend a simple 25 year investment loan on a principal and interest basis with a 5 year interest only term initially. As a general rule the bank will not look at restructuring your existing loan to ensure that your investment loan is the best suited for you not just from a flexibility point of view but also from a taxation perspective. It is more likely that they will not wish to disturb any existing home loan you may hold fwith your bank for fear that you may consider a refinance and they lose you as a customer..

 

The fact is the banks are doing a disservice to you if this is their approach. The reality is that when you are looking for an investment loan you must consider your other borrowings because if you properly structure your investment loan with any existing home loan debt then there are benefits for you.

 

In the past borrowers have simply accepted that they need to draw on their personal income to subsidise the shortfall that occurs on a negatively geared investment (i.e. the rental income from the property does not cover the interest payments on the investment loan and other outgoings (rates, maintenance etc) incurred by the investor. It is also fair to say that in the past, loan structures have been simplistic stand alone facilities.

 

Today you are able to structure your total portfolio so that within the one mortgage you have various loan accounts each of which are flexible and offer opportunities to minimise your tax. The multiple loan accounts are necessary within your portfolio because:

1.      your home and investment loans are not mixed (the ATO views mixed loan accounts dimly and will require that any principal repayment into a mixed home and investment loan facility be apportioned between the 2 accounts. You are not able to apply the total amount to reduce your non-deductible home loan debt first – a much more tax efficient option.

2.      The cost benefit you will enjoy with the multiple accounts in that for accounting purposes income and expenses for each investment property are easily identified. Saves you in accounting fees!

3.      you can include a capitalising line of credit as one of your accounts if you have built up equity in your home property. It is advantageous to put an investment line of credit loan into the mix because this not only provides you with a safety net to cover off any vacancy factor on the investment property (which might put a strain on your cash flow) but also and more importantly it allows you to draw on the line of credit to meet any shortfall in the interest payments on the investment loan or other maintenance costs associated with the investment property. By utilising the line of credit to service any shortfall in interest you receive a two-fold benefit: 

            (i) you can use more of your personal income to reduce your home loan non-          deductible debt – instead of subsidising the cost of the interest on your            investment loan.

             (ii) by borrowing to meet the interest rate shortfall you increase the amount of        deductible interest you can claim under your investment loan borrowings.
Feb 02

Why Use a Mortgage Broker

Published in mortgage brokerhome financefirst home buyer by Vicky Edema |
The main reason people go to mortgage brokers is to get access to a greater range of mortgage options, for better service and for the mortgage broker's ability to negotiate with lenders. A mortgage broker offers loans from a panel of financial institutions, including banks and non-banks. Using a mortgage broker is now an essential part of scouring the market for the right home loan. In simple
Feb 02

Use a mortgage broker to save time and money

Published in mortgage brokerhome financefirst home buyer by Vicky Edema |
Usually clients are busy people who don't want to spend their precious time searching for the best mortgage deal but still want the best deals available. They do need a qualified professional such as a mortgage broker they can trust to review the market and to look in detail at their circumstances. A mortgage broker can and provide them with full mortgage information, the most competitive and
Feb 02

Mortgage broker the way to go in Australia

Published in mortgage brokerhome financefirst home buyer by Vicky Edema |
If you are in the market for a home loan then your best course of action is to obtain assistance from an experienced mortgage broker who is also accredited with the national industry body, the Mortgage Finance Association of Australia (MFAA). By dealing with a mortgage broker who is a member of the MFAA you are not only assured of the knowledge, experience and training of the mortgage broker but
Feb 02

Mortgage Brokers in Australia will save you time and money

Published in mortgage brokerhome financefirst home buyer by Vicky Edema |
A mortgage broker offers loan products of various lenders. Essentially, a mortgage broker is a loan provider who serves as a contact between borrowers and lenders. A mortgage broker will learn the needs of the borrower and start researching the market for the best loan deal from lenders offering that particular type of mortgage loan. Mortgage brokers usually work with numerous lenders,
Home
My Choice Home Loans
Commercial Finance
Our Lenders
Why Choose My Choice
Contact Us
Apply Now
Application Process
FAQ
Tips & Hints
Newsletter
Customer Testimonial
Useful links
Dispute Resolution
Hardship
Deposit Bonds
Insurance