Buying A Property
Where do I start when buying a property?
Work out your price range based on your income and the amount of equity/cash you’re prepared to put towards your purchase. We can help you by working through your figures to help you determine a price range you’re comfortable with. You can then start researching areas that match your borrowing capacity.
What do I need to do if I’ve seen a property I like?
First of all you can make an offer, taking into consideration the finance you can obtain, your deposit and the settlement date. If you’re buying at auction, you’ll need to make an unconditional offer, so in this case you’ll need to have your due diligence done before making an offer.
If you’re based in Melbourne, and I’m looking to buy a property interstate, can you assist?
It doesn’t matter where the property is located – we can still arrange finance and help coordinate the logistics of your purchase.
What are the tax implications of owning an investment property?
Generally, if the costs associated with financing and maintaining the property exceed the rental income received, then it is viewed as negatively geared which may assist with your tax planning. Be aware that you need to consider taxation issues such as capital gains tax and land tax. It’s imperative that you consult your accountant.
Loan products and features
What is the best interest rate at the moment? What is the best deal out there?
Each financier offers a single or multi “package” product that can be designed to match your financing needs. Interest rates are an important factor, however just as important is the total cost of your finance. We will work through all scenarios with you to design an acceptable finance package.
Is it a good time to fix my loan? What is your opinion on interest rates, will they be going up soon?
Fixing your loan offers certainty over increasing variable rates, however it reduces your flexibility. You should ask yourself the following questions:
- Can I afford to repay my loan if the interest rate soars?
- How much flexibility do I need?
- Will my lifestyle change if variable rates increase?
- Am I planning to sell soon?
Depending on your answers, you may decide to fix the whole mortgage, take a split between fixed and variable or choose 100% variable. As you can see, fixing rates is a very personal choice.
How can I lock in a fixed rate?
The rate that is offered by the lender on the day of the loan’s drawdown is the one you will get. You can fix the prevailing rate at the time of your loan application for up to 90 days. That way, you don’t have to worry about rates increasing before you’ve finalised the loan.
Can I pay extra on my loan?
Variable rate mortgages allow you to make unlimited extra repayments, whilst some financiers allow limited extra payments on fixed rate mortgages. If you need extra funds for another investment or for personal reasons, you can also draw these down from the loan.
If I make extra repayments, can I stop repayments for a while?
Unfortunately, you can’t. You still need to pay the minimum monthly amount, no matter how much extra you’ve paid. If you do want to take a break from your monthly repayments, you can draw down the extra repayments from the loan and use those funds for your monthly payments.
What does a finance broker actually do?
A finance broker is a person or entity that has relationships with various financial institutions and providers so that they can source funds for you to purchase a new home, invest in property, cars, equipment and so on. It is our commitment to:
- understand your financial needs
- find you the best deal from the products on offer
- explain how the chosen product works and its advantages
- assist with the completion and lodgment of your application and liaising with all parties
- give further assistance if you have questions after loan settlement
Our service doesn’t stop there as we keep in touch with you on an ongoing basis for all your financing needs.
How long does it usually take to get finance through yourselves?
It depends on the lender and the type of loan being arranged, but usually between 10 and 21 working days. If you need urgent access to funds, we will choose financiers who have short turnaround times.
How much can I borrow?
Different lenders have different ways of calculating the amount you can borrow. We have access to all lenders’ servicing worksheets and can quickly access your borrowing capacity.
What if I cannot service my loan over the long-term?
We recommend that you speak to your financial planner regarding income protection insurance or life insurance that will provide you with protection against unforseeable circumstances.
How much do I have to pay you, the broker?
If there is a need to charge a commission directly, we will advise you from the outset. However, the commissions payable by lenders usually cover our costs so in most cases there is no need to charge you anything.
How much commission will you get if I take a loan out with you?
We are obliged to disclose the amount of commission we receive, under Australian law. We will let you know the amount of commission we will get, during the application process.
For more information about how we can help with your finance requirements Contact us