Refinance Housing Loan

Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. Generally, borrowers that have a deposit of less than 20 percent of the purchase price of the home will need to pay for mortgage insurance.

Most lenders will require you to pay mortgage insurance if you are borrowing more than 80 per cent of the property’s value.

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. In the simplest terms, the LVR is the percentage of the property’s value, as assessed by the lender, that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80 per cent of the property value, making your LVR 80 per cent

Refinancing a loan can take advantage of lower interest rates to bring down the overall cost of servicing a loan. But it’s not always the optimal choice, or the only, option.

There are many different factors borrowers need to consider when thinking about refinancing a loan.

The first step is to speak to a professional about your needs and whether you can afford to service a different loan structure.

Yes if you are eligible you can simply dividing your home loan into two or more loans. For example, let's say you have a $200,000 home loan. You could divide your loan into one portion being $150,000 and the other $50,000.

It can protect you against rate fluctuations if you, as per in this example, say fix the $150,000 for three years and keep the other $50,000 portion variable with a 100% offset account.

Simple strategies like this can give you security in the home loan market whilst at the same time keeping the flexibility of making extra repayments and redraw with the variable portion.

There are a lot of different options with split loans and every situation is different depending on the client’s needs.

The bank said no

Have you applied for a mortgage only to be told NO!? Sometimes it may be an issue with that particular bank's policy. I can sometimes help by finding you a lender who will initially give you a loan and then put in place a strategy to move you across to your preferred lender at a later date.

An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan.

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 genuine savings:

a cash gift
an inheritance
casino/other gambling winnings
proceeds of the sale of a non-investment asset
government grants and other finance offered as incentives