Author: Frank Barragan

  Is the cheapest interest rate always the best? Not necessarily. There are several things to look at when searching for the right loan. Even though a lower interest rate might be appealing, if the loan is not set up with the correct structure or you are not aware of all the fees and charges, it may actually cost you more in the long run. It is important to seek recommendations from your broker and discuss products such as offset accounts, particularly for investors as they can preserve your future tax benefit.   Also, for self-employed borrowers, there are several lending options available not offered by all banks. Once again, your mortgage broker can discuss the range of strategies and options offered by many lenders as opposed to one or two products that a bank would discuss with you. Many bank employees may not have the wealth of knowledge about the loan products available in the market place, as they will be limited to the products available to them.
Read More

    What is a low doc loan? This is a term used to describe the extent and type of financial information you’re able to provide when you apply for a home loan. If you’re unable to provide pay slips or up-to-date financial statements then a low doc loan might suit you better than a more traditional loan (e.g., if you’re self-employed or a contractor). My Very Best To You Always,  
Read More

What is redraw? A redraw facility gives you easy access to any additional repayments you’ve made on your loan without going through a complete application process. If your loan has a redraw facility, you can request access to these funds online or over the phone and funds are usually credited to your account within 24 hours. My Very Best To You Always,  
Read More

    What government charges may apply when I buy a home? Stamp duty is a state tax that is imposed when the ownership of a property changes. Other fees that may apply are land transfer registration fees and mortgage registration fees. For more information about buying a home and stamp duty in your state, visit the Australian Government’s MoneySmart website. My Very Best To You Always,  
Read More

    What is meant by ‘Principal and Interest’?   Principal and Interest is the standard type of repayment for most home loans. The borrower makes regular repayments that include a portion of the principal repaid and the interest that is charged on the outstanding loan amount. Over time the principal portion of the repayment will increase and so the outstanding loan balance also reduces. My Very Best To You Always,  
Read More

        What is meant by ‘Interest-only’?     This is a repayment type that allows you to make regular repayments that only incorporate the interest charged on the loan, over a set period of time. This means that the outstanding loan balance remains relatively unchanged during the term of the Interest-only period. Lenders generally offer Interest-only periods between one and five years. After the initial Interest-only period the loan reverts to Principal and Interest for the remaining term of the loan.   My Very Best To You Always,  
Read More

What is a comparison rate? The National Consumer Credit Protection Act 2009 (Cth) stipulates that any advertised interest rate must also include a comparison rate. A comparison rate is calculated in accordance with a standard formula which incorporates known establishment, ongoing and discharge fees into the interest rate. It is designed to provide you with the ability to compare the ‘true cost’ of different loans. However, the comparison rate does not include any ‘event-based costs’ such as redraw fees or fees that are not known at the time the comparison rate is provided. My Very Best To You Always,  
Read More

How to maintain a good credit score When you are applying for a loan, the first thing lenders will do is check your credit score – and this will have a strong impact on their ultimate decision. So what is your credit score and how do you maintain a good score that will impress lenders? The five elements of your credit score Your credit score is a three digit number designed to indicate how likely you are to meet your credit obligations. Lenders will look at your score to decide whether they are prepared to give you credit for a loan. The score is calculated based on five elements of credit history information – your payment history, your level of debt, your credit age, your mix of credit and enquiries. You could look at your credit score like a school grade, where different subjects have different weighting on your overall mark. Pay your bills promptly Payment history makes up 35% of your “grade.” This is based on your ability to pay your ...
Read More

  Would you like to shave 10 years off your mortgage? How much interest could this save you? It’s not rocket science, it’s simply a matter of making more repayments more often and making sure you’ve got the best mortgage for your situation. Of the millions of homeowners, only some are getting out from under mortgage payments years, sometimes decades, before their neighbours. How? They make an effort to pay off their mortgage early. The average home loan is now over $400,000 NSW), but living mortgage-free is not a pipe dream. You may only need to find an extra $200-$500 every month so that you can exceed your mortgage payments. While many think they can’t afford that, you’d be amazed at how much money you can save on a monthly basis. KNOW YOUR BUDGET Suncorp Bank executive manager of personal lending Tony Meredith says many people don’t know exactly where their money go...
Read More

  Five Reasons why you need a Mortgage Broker For most people, buying a home or an investment property are the biggest financial investments of their lives. A mortgage broker can help streamline the costly and confusing process, while saving you valuable time and money. Here’s how: Simplifying the home loan process While this is an overwhelming first-time experience for you, your mortgage broker can efficiently guide you through the entire process, from the application to the property settlement. With their assistance, you can handle all the complexities of paperwork and legal details. They can also give you the right advice to ensure your application is approved promptly. As a result, you have the peace of mind of delegating the process to an expert who will keep you informed every step of the way. Fast comparisons With so many banks and lenders offering different deals, it ca...
Read More