Author: Frank Barragan

Refinance your home loan in 6 easy steps   Refinancing your home loan can be a smart move, especially if your current loan isn’t working for you or you feel you’re paying more than you should be. Below, we outline the main steps involved and some key questions you should ask. 1. Know what you're looking for The first step is to ask yourself why you want to refinance. You might feel that your home loan lacks flexibility. Or you might be approaching the end of a fixed rate term and the options from your current lender aren’t particularly attractive. Or it might just be a matter of wanting a lower interest rate. Whatever the case, having a clear idea of what you want out of your home loan will help you narrow your search to those that are most likely to suit your circumstances. 2. Ask your lender for a better deal Before you commit to switching, it’s worth speaking with your current lender to see if they’re willing to give you a better deal. Depending on what you’re a...
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  How to save money on your investment property   Whether you’re taking your first steps up the property ladder or adding to your portfolio, investing in property can be a solid way to build wealth. But that’s not to say it won’t cost you along the way. On top of the hefty home loan deposit, there are a number of expenses you’ll need to budget for, including building inspections, council rates and home insurance. Thankfully, there are plenty of ways you can bring down the cost of owning an investment property. We explore a few of them below. Use negative gearing deductions Australia’s tax system lets property investors deduct any losses on their property against other sources of income, such as salary, wages or business income. So if your rental property is running at a loss - that is, your expenses are greater than the income you receive from rent - you might be able to claim a deduction and reduce the amount of tax you pay. Claim borrowing expen...
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What happens if my home loan application is denied?   So you’ve finally decided to take the plunge and purchase your first home, but you’ve hit a bump in the road and your home loan application was declined. What now? Fortunately, a denied home loan application doesn’t have to mean the end of your journey. Below, we explore the reasons behind a rejected application and what you can do next to get back on track. Why was my home loan application denied? Understanding why your application was denied is essential to not making the same mistakes twice. With so many factors your lender has to consider before you get approved, it’s easy to miss something. Here are some common reasons you might find your home loan application is denied. There’s no evidence you can pay it off. If there isn’t evidence you can service your debt, your lender might reject your application. It’s important you provide evidence of consistent income so your lender knows you can pay even if ...
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        What documentation will I need to apply for a loan?   Other than the loan application itself, lenders normally require documentation confirming your identity and substantiating your income as well as statements confirming all credit facilities you hold (personal loans, car loans, credit cards, AfterPay etc.). These can take the form of :   Drivers licence Birth Certificate or Passport Recent pay slips or proof of income Tax returns or Assessment notices Current Bank statements My Very Best To You Always,  
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What is the First Home Owner’s Grant?   The First Home Owner’s Grant or FHOG is a national scheme funded by the States and Territories of Australia and administered under their own legislation. Those who meet the scheme’s criteria are eligible for up to $10,000. For more information visit www.firsthome.gov.au My Very Best To You Always,  
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          What happens with my personal information?     Our Privacy Policy ensures that any personal information collected by us will be used only for the purpose indicated. We will not give your personal information to other organisations for their marketing purposes. My Very Best To You Always,  
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      Do I need a deposit?   Purchasing a property is a major financial commitment. Lenders like to see proof that you are able to put some of your own funds towards a purchase before they will lend money to you at standard rates. In general you are required to have at least 5% deposit of the value of the property being purchased. Obviously, the greater the deposit you can save, the better, and deposit requirements are changing all the time.     My Very Best To You Always,  
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        Will my other debts affect the amount I can borrow?   The more debt you have, the less you will be able to borrow. The process of finding out how much you can qualify for involves examining your income and comparing it to your debt ratios. These are variables that help determine how much you can borrow. If you have an excessive debt ratio, this reduces the amount of finance eligibility. By examining your credit profile we can give you an idea of what you can borrow. If you have credit card problems, do not be embarrassed to discuss them honestly with us. If you have credit problems we can assist the process by obtaining a copy of your credit report to help in determining your ability to qualify for finance. We can sit down with you and examine your entire financial situation to best position you prior to submitting your loan application. My Very Best To You Always,  
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      What is Lenders Mortgage Insurance?   Lender’s Mortgage Insurance (LMI) does not protect the borrower should they be unable to make mortgage repayments. It protects the lender from any losses resulting in the sale of a property due to default by the borrower. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage, usually 80%, of the lender’s valuation of the property. Some lenders will allow you to add the LMI premium to your home loan; others require you to pay it up front. My Very Best To You Always,  
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        Are there Advantages of Using Finance Brokers over Banks?   Most definitely YES!   Finance brokers will source the best loan for you depending on your financial circumstances from a huge range of products and lenders. 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 at their own institution. Although a bank or lender may offer their best available product, they won’t tell you if another bank has an even better product or deal for you. The role of a finance broker is to research the best loan for you (against other products available on the market) and recommend this to you based on your individual financial situation. Could you imagine trying to work out the difference between 20-30 different loan products? That would take you ages! This is why brokers get paid for what they do. They invest their tim...
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