When considering buying a house, you may look at the option of building a new one instead... this can be a great option as new houses often come with building guarantees; they do not reqire a large amount of maintenance and you can influence the finished design to your tastes. This will ensure that your new house is exactly how you want it.
However, building comes with an element of risk too, which is only overcome by preparation and good management. It is important to be prepared when applying for a construction loan.
Our full article on construction/build loans
+ our TOP 10 TIPS is right here!
Contact us anytime if you'd like to discuss your build options.
Thursday, August 12, 2010
Sunday, August 8, 2010
PRODUCT REVIEW - Revolving Credit
What is a Revolving Credit Facility?
It is a transactional account which is essentially a large overdraft facility and operates in the same way. All or part of the mortgage can be set up as a revolving credit. The pre-approved credit limit of this facility is loaded onto a cheque account and you can choose to repay as much or as little as you like each month - as long as the balance of the facility remained within its limit at all times.
Some facilities have reducing credit limits which reduce each month along the lines of a table mortgage.
If you want maximum flexibility with your home loan then this facility offers that. It works best for people whose income fluctuates or they are on large incomes or receive regular bonuses - all enabling extra payments into the facility; thus reducing interest!
The most important things to remember with a Revolving Credit facility are to:
It is a transactional account which is essentially a large overdraft facility and operates in the same way. All or part of the mortgage can be set up as a revolving credit. The pre-approved credit limit of this facility is loaded onto a cheque account and you can choose to repay as much or as little as you like each month - as long as the balance of the facility remained within its limit at all times.
Some facilities have reducing credit limits which reduce each month along the lines of a table mortgage.
If you want maximum flexibility with your home loan then this facility offers that. It works best for people whose income fluctuates or they are on large incomes or receive regular bonuses - all enabling extra payments into the facility; thus reducing interest!
The most important things to remember with a Revolving Credit facility are to:
- set in up correctly at the start
- understand fully how it works
- review its progress regularly
.. so that you are maximizing the benefits this type of facility provides!
Our full article is available here.
If you want more out of your mortgage and want to know how to refinance and restructure to maximise benefits - CONTACT US anytime no obligation.
Buying commercial or industrial property
Commercial or industrial property can be a good investment if you understand the risks associated with this type of asset and the manner in which the Banks assess the risk.
It is a popular misconception that the same lending 'rules' apply when bank and non-bank lenders assess the risks associated with commercial and industrial properties, as they use with residential loan applications.
One factor that remains the same for both commercial and residential property when assessing risk profile is the location. Good commercial locations especially those in city centres, will carry less risk to capital protection, value growth and tenant demand, than those in less desirable locations such as regional towns and rural locations.
Read our full article here...
For a free no obligation consultation today, contact our specialist mortgage broker in our commerical team. We have extensive skills, experience and knowledge in this area - view our past projects here.
It is a popular misconception that the same lending 'rules' apply when bank and non-bank lenders assess the risks associated with commercial and industrial properties, as they use with residential loan applications.
One factor that remains the same for both commercial and residential property when assessing risk profile is the location. Good commercial locations especially those in city centres, will carry less risk to capital protection, value growth and tenant demand, than those in less desirable locations such as regional towns and rural locations.
Read our full article here...
For a free no obligation consultation today, contact our specialist mortgage broker in our commerical team. We have extensive skills, experience and knowledge in this area - view our past projects here.
Thursday, August 5, 2010
Interest Rates on the move
It didn't take too long before one of the major banks made their move! Floating rates have risen slightly but the fixed rates are on the decrease.
Why does this matter to you?
Because when considering how much a person can borrow the banks normally use the 2 and 3 year fixed rates to calculate the servicing... so, a reduction in those rates increases the borrowing power of you - the buyer!
If you are looking at buying or refinancing give us a call or email us and we'll determine, fairly quickly, just how much you are able to borrow!
Why does this matter to you?
Because when considering how much a person can borrow the banks normally use the 2 and 3 year fixed rates to calculate the servicing... so, a reduction in those rates increases the borrowing power of you - the buyer!
If you are looking at buying or refinancing give us a call or email us and we'll determine, fairly quickly, just how much you are able to borrow!
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