Residential Archives – FinanceCorp
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05 Nov What type of loan is right for you?

The array of mortgages available helps a good credit adviser to tailor a package to suit your needs. Here are just some of the options.   Fixed-rate mortgages With a fixed-rate loan, you know exactly how much you’ll pay per fortnight or month for the fixed period of the loan (usually one to five years).   Variable rate mortgages Repayments can change during the life of a variable-rate loan, so you may pay more or less as interest rates rise or fall. If you’re fairly sure that rates are set to fall, this is a good...

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05 Nov What to look for at an open house

There’s an old saying that you should never judge a book by its cover, and this is true for houses – after all, who would buy one having never seen more than the front door? Open inspections are opportunities to really flick through the pages, and here’s how to take full advantage. Really use your senses Sniff, peer, listen and feel as much as you can. Your nose might pick up a mouldy or musty smell that may mean damp. You might spy small or hidden cracks that could mean structural issues....

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05 Nov What is the best time of year to buy a house?

While spring is renowned as the time that sellers dust off their properties and place them on the market, this doesn’t mean it is necessarily the best time for buyers to go shopping. One of the biggest issues with shopping in spring is the flood of other buyers looking to snag their dream homes, which increases competition and housing prices. “There is typically a seasonal uplift in buyer numbers over the last quarter of the year, which means the benefits of a higher number of options to choose from are offset by...

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05 Nov What is LVR?

The mortgage industry is a wide, wondrous world with a language all of its own. One of the many acronyms bandied about is ‘LVR’, which stands for ‘loan-to-valuation ratio’. Here’s what it means. When you are working out what amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the loan-to-valuation ratio (LVR) is one of the most important considerations.   In the simplest terms, the LVR is the percentage of the property’s value, as assessed by...

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05 Nov What documents you need to apply for a loan

Applying for a loan is a very big step, and it’s not always straightforward. To help make it simple, here is a handy list of the documents you are likely to need when you meet with your finance manager. You are ready to buy a home, you just need a mortgage. Before you go rushing off to meet with your local finance manager, be sure that you have a few documents on hand to prove your identity, income, assets and liabilities.   Identity You will need two of the following three: passport; driver’s licence; and photo identification,...

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05 Nov What to consider before renovating

The decision to renovate is a common sticking point for homeowners, who can spend hours weighing up the cost benefits. Whether your motivation is to add value to your property or to add a touch of your personality to the home, renovations are expensive, and debt often follows. By working with a finance manager, you will be able to find solutions that benefit your long-term goal, rather than hindering future plans. While your finance manager can’t assist you with forecasts on future property values, he or she can help you reassess your current...

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05 Nov What counts as genuine savings in a loan application?

If you apply for a home loan, particularly if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to lenders that you have a satisfactory amount of savings. This is to demonstrate your ability to funnel a portion of your income into repayments. Although it can differ, in most cases lenders generally look for consistent additions to savings over a period of at least three months and preferably a year or more. This means that the following are not considered...

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05 Nov  What comes first: the property or the loan?

It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan. Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation. But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may...

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05 Nov What can you expect your property manager to do?

A property manager’s role includes collecting rent, of course, but they also manage your relationship with the person who lives in your property, so it is important to find a property manager who will do the best job of keeping the tenants happy and will get you involved only when you want to be. Property managers market the premises, select tenants and organise the lease. They coordinate the payment of rent and call tradespeople to make repairs when necessary. However, further to these duties, there are subtle elements of property management that...

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05 Nov What are investment lending caps?

In an attempt to curb the high competition of the Australian housing market that locked out many would-be first home buyers, the Australian Prudential Regulation Authority (APRA) in late 2014 signalled its intention to keep a close eye on a suite of concerns, including the levels of residential lending to investors. APRA’s communications at this time flagged an increased focus on: High-risk lending The interest rate buffers used in serviceability assessments The rate of growth in investment lending Lenders were strongly encouraged to restrict their investment lending to 10 per cent growth. APRA explained that...

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