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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 ...
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  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...
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  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...
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      Why do you need a mortgage broker? A mortgage broker is an independent person or business who specializes in finding the most suitable home loan for a customer, based on the customer’s individual needs and circumstances. Basically, like any broker the mortgage broker liaises between you as the property buyer and the banks or lenders who will lend you the money for your mortgage. So why go to a mortgage broker when you can contact the lenders directly? Open communication Unlike banks and other lenders, the mortgage broker isn’t looking to sell you a specific product whether it suits you or not – the broker wants to give you a full view of the market and find the right product for you. This opens up communication, as the broker needs to find out as much as possible about your requirements in order to select the most suitable loan package. And when you have questions or concerns, your broker will answer ...
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      Questions to ask your mortgage broker When you are going through the home loan and mortgage application process, your mortgage broker can help navigate you through all the paperwork and different loan options to find the right loan for you. While the process might seem overwhelming, you might not know which questions to ask. When you ask your mortgage broker the following questions, you will have a better grasp of why your broker selected this loan as the best fit for your circumstances. You also need to be confident that you feel this is the best loan for your circumstances, and if you have any concerns you can discuss these with your broker before signing on the dotted line. Do you have a license? A mortgage broker is required to have a current license in order to practice in the finance market, and this license should be displayed on their web page or in the office. Without a valid license, your mort...
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      How to choose the best home loan for you Taking out a home loan is a huge financial commitment and it is particularly important to choose a loan that suits your needs, so you can make repayments on your terms without worrying about hidden fees or excessive interest. Yet it can be bewildering to navigate all the different loan options available and pinpoint the loan that is best for you. It is important to keep in mind that lenders are determined to minimize their risk so for every benefit they offer to make the loan seem enticing, there is always another fact protecting their investment. So you need to look at the loan package as a whole rather than being drawn to one particular feature. Choose the right structure for your circumstances You need to consider your financial needs and your plans for the property as you want the loan’s features to cater to your circumstances. For example, you will require...
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      Pros and cons of Guarantor Home Loans As it becomes more and more difficult to break into the housing market, many families are considering the option of a guarantor home loan – generally used when parents provide their house as guarantee for a child’s loan. Basically, if you haven’t succeeded in saving enough for a deposit, another property can be used as equity in order to secure the loan. This is a serious financial step and not one to be taken lightly, so let’s look at the pros and cons of making this decision for your family. The pros Enter the property market sooner. If you are impatient to be in your own home, or if you are confident that your financial situation will become healthier further down the line, you only need a smaller deposit to have your loan approved. Avoid Lender’s Mortgage Insurance If your deposit is less than the 20% threshold, you are usually liable for lender’s mortga...
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      Benefits of a mortgage offset account An offset account is a bank account linked to your home loan. Rather than accumulating interest within the account, the money in the offset account is offset daily against your mortgage, reducing the interest payable on your mortgage. For example, if you have $20,000 in your offset account and a mortgage of $400,000, you will only be charged interest on $380,000 rather than the full $400,000. This can drastically reduce the length of your mortgage and the amount you need to pay in the long term. Tax free interest As you are not earning compound interest from the money in the offset account, you are not liable to pay tax on that money. Instead you are increasing the equity in your property. Flexibility As the mortgage account is like any other transaction account, you can deposit and withdraw funds such as your salary without incurring access fees. As the off...
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      Finding the right property for you Property-hunting is a stressful exercise – you are embarking on one of the biggest financial investments of your life, and you know you’ll have to live with your decision every day. Yet too many people rush into a property purchase, only to feel financially trapped in an unsuitable choice. The problem is that many properties on the market are presented in an attractive and appealing way, prompting you to make an emotive impulse decision. You can avoid the hazards of saying “I love it! Let’s buy…” about the first property you see, if you follow this 8-step preparation plan before starting the search to ensure you can identify the property that is exactly right for your needs. Residential or Investment You probably already know the answer to this question – do you want a new home to live in, or are you planning to rent it out as an investment property? Either way, ...
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  Is Debt Consolidation Right For You? A debt consolidation loan combines all your outstanding debts into one, so now you only have one debt at a reduced rate of interest and lower monthly payments than the combined cost of all the consolidated bills. If you have become overwhelmed with multiple debts and you are struggling to make minimum payments on any or all of them, rolling all these into one repayment can be easier and less stressful to manage. Another reason to consider a debt consolidation loan is if you want to focus on paying off a mortgage. By lumping all your other debts together, you can simplify repayments, and enjoy the benefits of a reduced interest rate. This gives you more funds to channel into your primary debt, increasing your equity. Reassess your current loans Before securing a debt consolidation loan, you could investigate whether switching your home loan w...
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