Factors that Can Affect A Home Loan

A Home Loan is no small thing. It is a  long term commitment that usually stays with you 15 to 30 years of your life. Because of this, so many important things have to be thought about and planned for and so many factors will decide whether you will get a Home Loan or not.

These factors can be divided into two. The first one would be those that you need to think about before applying for a Home Loan and the second would be the factors about you that lenders have to consider before approving your Home Loan.

Let's first consider you.

Before you can choose the mortgage for you, you have to review your financial situation and project if your housing needs might change in the future with your Home Loan. You can ask yourself these questions to help you with this:

How long do you think you plan to stay in your house?

- Are there expectations for your financial income to increase over time which could allow you to pay more off your Home Loan?

- What do you think are the significant expenses you might make in the future that could affect your capability of paying your monthly payments? School fees, starting a business, starting a family, etc are examples of things that may affect your financial situation.

The next step is to assess the level of risk you are ready and comfortable in taking. Remember a Home Loan takes a long term commitment. Decide on what mortgage rate you think you can work with. Variable interest rates can be risky since interest rates change and can vary where as with fixed rate home loans can be a safer option if you like to know what your payments will always be.

The third step is to determine the term of the loan you want.   Most terms are 15, 20 and 30 years. Usually, a shorter term means higher monthly payments. This is good for people whose incomes are higher than average and are stable. But, most average income earners go for long term periods because aside from a smaller monthly bill that can fit their budgets.

The last step is to assess the closing costs of a Home Loan and the lowest interest rate that you can get.

Now, let's consider the factors that might affect the approval of your Home Loan from lenders. There are ten of these which are the following:

1. Credit report. When you apply for a loan the credit provider can take your credit history into account when deciding whether to give you a loan.  Credit history reports are available from Veda Advantage (previously known as Baycorp Advantage), Dun and Bradstreet, and Tasmanian Collection Service.  For more information about Credit Reports click here

2. Credit Cards. Always be sure to keep your credit card payments on time as poor credit card history can affect your chance of getting a home loan.  Some banks may require you to reduce your current credit card limit. 

3. Outstanding Credit. Pay off as many if not all credits before applying for your home loan.  The less you owe the better.

4. Income. The steadier your income the better.  Avoid changing jobs before applying for a Home Loan.  The longer you have been in your current employment the better it is.

5. Available funds. Make sure that you do not make purchases that could consume your available funds before buying a home. Aside from a down payment, you have to consider other expenses such as legal fees, stamps duty etc.

6. Deposit.  The bigger the deposit the better! 

7. Interest rate. Interest rates fluctuate all the time and if you have a variable loan your payments will also fluctuate an will determine how much you will have to pay each month.

8. Price Range. From your current financial assessment of your situation and by figuring out your debt-to-income ratio, will determine how much you are able to borrow . A lender will not approve a Home Loan with payments you can't meet.

9. Lender. Know your lender and inquire about the statistics concerning those Home Loan applications.  This is where dealing with a mortgage broker has it's benefits.  A mortgage broker will know which lending providers will best suit your financial needs.

10. Your honesty. Be honest when filling out all the paperwork involved with your home loan application and the lender requires from you to  process your loan  application.

For more information regarding Home Loans contact the team at Equity Access Australia call 1300 655 616

Firstly what is a relocation loan? There are a number of variations, but essentially they are most commonly used if a purchaser has entered into a contract to purchase and are relying on proceeds of the sale of another property, with later settlement date. The financial institution lends the client the funds required to purchase the new property using both properties as there security for the loan. Once the other property is sold the loan is either paid out or reduced to what is referred to as the residual mortgage.

The loan is used to bridge the period between settlements, using the client’s equity in their existing property. These types of loans also have the name ‘bridging finance’, which is not as popular a term, as it brings back memories of expensive loans with high interest rates.

Most modern day loans are much more appealing, as the interest rates are in most cases the same as the standard products the institutions offer. The loans generally allow for a six to twelve months bridging period, but can vary depending on the institution. Interest over this period will be charged on the full mortgage, however most lenders only require that repayments during this period be calculated on the anticipated residual mortgage. At settlement unpaid interest is paid and the loan is reduced to the residual mortgage or paid out in full.

This type of loan often appeals when there is a shortage of good property for sale. Many people are reluctant to sell if they have not found a new home to purchase, particularly if prices are rising. If there is good equity in your existing property this can become a viable option. The most attractive feature of these loans is that most institutions base their affordability calculations on the residual mortgage, the benefit being that you can qualify without income if you are not left with residual mortgage after settlement.

Whenever considering a relocation loan it is most important that you have a very realistic appreciation of the value of the property you wish to sell. I say this, as many people do not realise that you can control the price you pay for a property, however you can only achieve the best price the market has to offer at any given time when selling. Remember, the longer the selling period, the more interest accumulates at peak mortgage level.

Relocation loans are an excellent product if used appropriately. A realistic expectation of your property value and a comfortable residual mortgage repayment could make this a very viable option.

Please feel free to call us with any questions you may have regarding any type of loan you may be interested in or to find out what loan is right for you.

Equity Access Australia Phone 1300 655 616

What does the future hold?  With increasing inflation and the Australian dollar value who knows whether the spate of interest rate rises the country has been perceptible to, is over.  No body knows.  It is likely that there could be more interest rate rises on the way.  Although there are many economists predicting rates to stay on hold for at least the remainder of this year. 

What can we do to protect our selves against the increased burden of interest expenses and living costs?

Know your position.

• Firstly sit down and assess your asset and liability position.  If you are not sure how to do this, then please call us, and we will be happy to assist you with this.
• Then work out your budget.  Include all income you receive (Net of Tax) and include all your current expenses.  Set yourself a budget that is realistic and workable for you and your family.
• Work out all your commitments eg. loans and credit cards and find out what interest rates you are currently paying on these facilities. 
• Then I recommend calling a professional mortgage broker to see what can be done to reduce your cash flow by either consolidating your debts, restructuring your lending or fixing a portion of your current lending. 
• Once you have seen a professional mortgage broker, then assess your new commitments and ensure that the restructure or consolidation will in fact save you money each month. 
• Be wary that you are not encouraged to refinance your home loan without being aware of the cost involved to refinance, eg, break costs from current lender.  It may be best to increase or restructure your facility with your existing lender to avoid costs. 
• To ascertain whether refinancing is a viable option for you, please ask your mortgage broker to work out how much you will save on an annual bases by refinancing your home loan. 
• Some lenders are offering rebates on refinancing costs should you change lenders which can offset some of the expense of doing your refinance.  Ask your Mortgage Broker which lenders will offer you a rebate. 
• Lastly make sure know you have a goal to strive for, whether that be reducing your mortgage by a certain amount each year or maintain your current debt level until children are a certain age so then your can start your debt reduction program. 
• In this current environment please try to avoid missing home loan payments or neglecting to pay phone or credit card accounts, see a professional before there is a problem.  Missed payments or credit defaults will seriously impair your options, and negate strategies which may assist your cash flow in times of need.

Please call our office if you need any help or advice in managing cash flow and working towards your goals for the future.

Equity Access Australia – Home Loan Specialists Phone: 1300 655 616

Comparing your existing Home Loan against some of the latest and best Home Loan deals around can be a daunting task.  When you think about all the things you need to compare, such as interest rates, loan set up fees, ongoing fees, and of course there's those nasty exit fees which we're not always aware of or for that matter take notice of when we are shopping around for the best Home Loan deal around.  At Equity Access Australia we look at the whold Home Loan deal ensuring you're aware of all the important components of the home loan.

Doing a Home Loan Comparison Check on your existing Home Loan could potentialy save you $1000's off your current Home Loan if there's a better Home Loan deal available for you.

For first Home Buyers when shopping around for the best Home Loan deal, it can be easy to get lost and confused comparing all the loan options available and then trying to work out which is the best home loan, with the best options and flexiblility you want and of course at the best interest rate possible.

Why not take advantage of a Complimentary Home Loan Camparison Check to either see if:

• Your existing loan is still the best Home Loan deal around,
• It's possible to reduce your loan repayments,
• It's possible to reduce the term of your loan,
• There's a better loan available for you!

Either way when you book a Complimentary Home Loan Camparison Check you'll soon know after talking with one of our experts if you've already got one of the best Home Loan deals around or if there's a better Home Loan deal available for YOU!

At Equity Access Australia we take the time to source the best Home Loan deals around ensuring we find the best Home Loan deals for YOU!

Phone Equity Access Australia 1 300 655 616

With interest rates being a key focus there has never been a better time to reduce the potential sting of rising interest rates than now.  There are so many great home loan deals available at moment and so many good ones to chose from, so much sot that it can be quite overwhelming working out what’s the best loan and is it the best Home Loan for you. 

That’s where mortgage brokers can be the best source of information for you when it comes to sourcing a home loan.  Mortgage Brokers work on a daily basis sourcing and researching the best home loans available and help our clients on a daily basis find the best home loan for them.  At Equity Access Australia we deal with leading banks like ANZ, Commonwealth, National Australia Bank, other well known traditional lending institution as well as non traditional lending and institutions and we get a pretty good idea of what’s a good home loan deal and who's got the best home loan deal for you.

With interest rates still an uncertainty there are clear indications interest rates will be rising again and there’s no better time than now for you to take advantage of a Free Home Loan Health Check with Equity Access Australia to ensure you still have the home loan that's right and the best for you.  Please call our friendly home loan team at Equity Access Australia on 1300 655 616 to see what we can do for you and how much we could potentially save off your Home Loan for you.

There are so many home loan options on the market with so many enticing offers of reduced interest rates, holidays, honeymoon periods and more.  There have been conversation on Facebook and on Twitter and on just about every other social networking site there is and the overall concencious is that even with the uncertainty of interest rates one thing for certain is that interest rates always have the tendency to eventually go up.  With this in mind you should always be asking yourself or better still ask a Mortgage Broker like Equity Access Australia if you still have the best home loan there is for you. 

Some questions you should asking yourself about your home loan are:

1.       Is my current loan still one of the best loans there is available?

2.       Does my current loan still suit my needs?

3.       Is there a home loan available with lower interest rates and fees?

4.       Can I combine my existing loans all into one?

5.       How much could I save if I combined all my loans into one?

6.       Should my loan be a fixed loan or should I fix a portion of my loan?

I’m sure you probably have even more as the list could just go on and on.

With the number of home loans currently on the market from traditional banks and lending sources, as well as non traditional finance institutions, the amount of time it takes to shop around and compare could take you days, weeks and even months to compare them all.  Having a Mortgage Broker like Equity Access Australia you can be assured we’ll look after you and the best part of all is our mortgage broking service is completely free for you.

At Equity Access Australia we take the leg work and the headache out of shopping around for a home loan and find the best loan that’s right for you at the same time saving you time and money.  Giving you back the freedom for more time doing the things you enjoy most. 

Call us Equity Access Australia on 1300 655 616

And we’ll help find the right loan and the best loan for you!

Refinancing Could Potentially Save You $1000's

Whether or not to re-finance is a question homeowners like you ask themselves many times while they are living in their home. Re-financing is essentially taking out one home loan to repay an existing home loan. This may sound odd at first but it is important to realize when this is done properly it can result in a significant cost savings over the course of the loan.
 
When there is the potential for an overall savings it might be time to consider re-financing. There are certain situations which make re-financing worthwhile. These situations may include when the credit scores of the homeowners improve, when the financial situation of the homeowners improves and when interest rates are low.
 
This article will examine each of these scenarios and discuss why they may warrant a re-finance.

 
When Financial Situations Change

 
When Credit Score Improves

When Interest Rates Drop
 
Interest rates dropping is the one signal that sends many homeowners rushing to their lenders to discuss the possibility of re-financing their home. Lower interest rates are certainly appealing because they can result in an overall savings over the course of the loan but homeowners should also realize that every time the interest rates drop, a re-finance of the home is not warranted. The caveat to re-financing to take advantage of lower interest rates is that the homeowner should carefully evaluate the situation to ensure the closing costs associated with re-financing do not exceed the overall savings benefit gained from obtaining a lower interest rate. This is significant because if the cost of re-financing is higher than the savings in interest, the homeowner does not benefit from re-financing and may actually lose money in the process.
 
The mathematics associated with determining whether or not there is an actual savings is not overly complicated but there is the possibility that the homeowner will make mistakes in these types of calculations and that's the last thing we want for you.
 
Want to know if re-financing is the right option for you?

At Equity Access Australia we can help you determine if re-financing is worthwhile and if there is an opportunity to save you $1000's  Call us today for an obligation free Home Loan Health Check and let's see what we can do to help you.  Ph: 1300 655 616.

Five Ways to Pick a Winning Introductory Home Loan that's right for you!

There are many things to consider when choosing a home loan that's right for you.  To an untrained eye an introductory home loan also known as honey moon loans can appear to be the cheapest on the market but you need to take into considerations the loan's conditions.  Even though the introductory interest rate is appealing you need to look at the bigger picture.  Below are five ways you can pick a winning introductory home loan to ensure you are still happy after the honey moon period is over.

1.  Check out the revert rate – that is, the interest rate the home loan will revert to at the end of the introductory period.  Is it fixed or variable?  Will you be locked into that rate and how long for?

2.  What are the exit fees and when do they apply?  Are there any upfront and ongoing fees?

3.  Are you able to make extra payments during the introductory period? Or are you locked into only making the monthly required payments.

4.  Check the comparison rate.  Be sure to consider that it may not take into account every fee and charge that the loan incurs. How does the home loan measure up overall against the competition.

5.  The loan features.  What features does the loan have and are they right for you?  Is it fully outlined, including those of the loan it reverts to after the honeymoon is over?

As you can see there is a lot more to picking a winning introductory home loan than just looking at the interest rate.  Be sure to take everything into consideration, not just the honeymoon interest rate.  We have seen many people get caught out and we don't want you to be one of them.  

Contact the team at Equity Access Australia and we will help you pick a winning introductory home loan that's just right for you.  Phone 1300 655 616 and let's see what we can do for you and potentially save you $1000's over the term of your home loan.

With over 25 years experience in the financial services industry, our team at Equity Access Australia have the knowledge and expertise to help meet your lending needs.

Our office is situated in the heart of Broadbeach, at the Oasis Shopping Centre which has free undercover parking, and monorail access from Jupiter's casino.

Our representatives provide a professional service to you, either at our office, or if more convenient, in your home at a time that suits YOU!

We have over 40 lending institutions which we can choose from to find you the most effective finance package for your needs.