Blog | Mortgage Broker Melbourne

Investing in Property Types in Melbourne the Proper Way for Foreign Nationals

July 17, 2011 by Mortgage Broker Melbourne Leave a Comment

Property types in Melbourne vary. As one of the cities with the biggest growth in real estate (the other being Perth and Sydney) finding a property in Melbourne is exciting, but there are certain guidelines one has to take into consideration to ensure there is a financial return and a healthy spread of risk.

As one of the countries increasingly becoming popular to foreign nationals both for leisure and business purposes, it’s not surprising to see a lot of foreigners flock down to the city Down Under and look for properties they can use either as an investment or residence.

Anyone who wishes to settle temporarily or permanently in Australia will definitely need to have somewhere to stay. Whatever the purpose may be, an individual will take delight in the fact that there are different property types in Melbourne available.

Apartments, condominium units, single-family houses, even commercial spaces are easily available for everyone. Both rural and urban areas can provide tourists and even locals the opportunity to have their own slice of the housing pie.

If you’re a foreign national and wants to make sure if investing in various properties in Australia is the right decision, take a look at the different property types in Melbourne and why the demand for each is great.

Commercial spaces/buildings

Investment property is one of the more popular choices for foreign nationals. There are a lot of businesses that need a place. Purchasing a commercial space or building and leasing them out to companies is always a good way of getting a good return on investment.

Single-family homes

Presently, 70% of Australia’s population owns a residential property. This is very indicative of how much people desire to get their own home. Buying a house will be good if you intend to permanently live in Australia. But if you just want to use it as an investment, you can have it leased to families looking to have a place to stay.

Apartments

Australia is becoming one of the hottest tourism spots in the world. Melbourne is one of the cities that people flock down to because it’s a great place to visit. Tourists who are intent on staying for weeks are most likely going to look for apartments instead of hotels just so they can save more money.

Holiday properties

Tourism is a major industry in Australia. Other foreigners who come and visit the country will want to stay somewhere that’s comfortable and near tourist destinations. Holiday properties provide those two. You can count on a steady stream of income by investing on holiday estates.

It is important that you take care of all the legalities first before deciding on any property types Melbourne. Acquiring properties by foreign nationals is covered by certain laws mandated by the respective government agencies so it’s best to familiarize yourself with that first. Property types in Melbourne

Mortgage Rates Melbourne—Why Choosing Fixed Mortgage Rate Loans is Better

July 15, 2011 by Mortgage Broker Melbourne Leave a Comment

Understanding Mortgage Rates Melbourne will keep you from not being able to pay mortgage Thinking of taking the next step and investing on a house?

This could probably be start of the realization of one of your many dreams and you are excited to sign mortgage papers. But before you get way ahead of yourself, you need to consider several important things to make sure that everything turns out well in the long run. The first thing you must do is to see if mortgage rates in Melbourne are favorable.

Getting your own home will require you to spend money, but it doesn’t mean you don’t need to be careful of how much you are putting out. If you can help it, wouldn’t it be nice if you can spend little and save more?

Studying the different types of mortgage before making a purchase will tremendously help you in the long run. You will more money and be spared from severe headaches that most homeowners are experiencing now.

The common pitfall of making a purchase without studying available options is that some individuals find themselves paying more than they expected. Even though their mortgage term has already ended, they are still making payments. Others would be horrified to realize that they have paid more than they should because of low mortgages that they didn’t study previously.

You don’t want your dream of getting a home turn into a nightmare. That’s simply unfair for you. But what happens will eventually boil down on you. Your actions today will determine how much you are going to suffer in the future.

So if you don’t want any type of suffering, better carefully think about the mortgage you are getting.

Settling for a fixed mortgage rate is highly recommended. Although some people would think that this type of mortgage calls for higher payments, this actually saves you more money.

Here are the benefits of having a fixed mortgage rate:

Borrowers are offered security. Since you and the lender agrees on a certain rate, no matter how high interest rates go, you will still be paying the same amount until the end of your term. This is great for individuals who are on a budget.
Fixed mortgage rates provide homeowners the opportunity to have a stable financial plan.
Borrowers don’t need to worry about the need to refinance due to a high interest rate.
Longer fixed mortgage rates are also more affordable.
There are lesser risks for the borrower.

This type of mortgage also has its disadvantages. It is up to you to decide whether you’re willing to take a chance on fixed rates or adjustable rates. The choice, after all, is up to you. But since the mortgage rates in Melbourne at present are highly favorable, there is no reason why you shouldn’t take advantage of them.

Filed Under: Buying a Home, Mortgage Tips Tagged With: different mortgage rates, how to buy a house

Move In to a House without Paying for Mortgage Deposit!

July 13, 2011 by Mortgage Broker Melbourne Leave a Comment

Move in without mortgage deposit How important is a mortgage deposit amount when trying to purchase a home in Melbourne?

Believe it or not, individuals can buy a home in Australia without having to pay for any down payment. If you are worried that you may not be able to save enough money for a mortgage deposit, then your worries are all for nothing. With No Deposit Home Loans available in most lenders, any borrower can own a house without paying for a deposit.

This, of course, doesn’t mean you just move in to a house without spending anything. There will be some moving costs and a few other fees that you need to settle before moving in. But they will surely be not as expensive as having to pay for a down payment.

Entering the Melbourne mortgage market is very easy with No Deposit Home Loans. Here, you can take out a loan and move in without saving and paying for the deposit. There are times when the interest rates drop significantly or home prices in a certain area are good, some people would feel like it’s the right time to buy a property. However, they may not have enough money saved because they decided to make a purchase instantly.

No Deposit Home Loans are perfect for these instances. You can borrow 100% of the amount and not have to pay the 10% deposit. This should give you more time to save more money to pay off the loan.

These types of loans are definitely advantageous to any person. Imagine being able to buy a house without spending thousands of dollars. It’s like seeing a pair of sneakers at the mall and you decided to buy it immediately using a credit card.

But while this sounds really cool, there is a slight downside. Although borrowers are not required to pay the mortgage deposit, there are some fees that need to be settled. They are, however, not hard on the pockets.

Also, since you are borrowing an amount higher than what you actually have in the bank, you could end up paying a higher interest rate. Some lenders may even ask you to pay for Lenders Mortgage Insurance as well as other fees.

This is why you need to find a reliable broker, sit down, and discuss your plan thoroughly. He or she will be able to provide you with information that will help you decide if this is the right loan type for you.

Filed Under: Buying a Home Tagged With: mortgage deposit, move in to a home without payment

Different Melbourne Home Loans That You Can Easily Qualify For

July 11, 2011 by Mortgage Broker Melbourne Leave a Comment

Melbourne home loans are available to practically everyone who wishes to have their own home. No matter what income bracket they may be from, there will be a home loan type that fits their needs.

Now that rates are falling, it is the perfect time to go hunting on a house. There are different home loan products individuals can take advantage of these days. With the help of Melbourne home loan experts, it will be very easy to locate a property and get approved for a home loan.

Home loan products are customized to meet the needs of borrowers. Based on your income, status, or preferences, you will find a specific type of loan that you can qualify for. Here are some of the home loan types you can shop for:

First Home Buyer Loans

People purchasing a home for the first time have a wide range of options—fixed and variable rates, low doc loans, or no-deposit home loans. The great thing about buying a home for the first time is that you can be eligible to a grant that can provide you $7,000.

Basic and Standard Variable Rate Loans

These types of loans provide borrowers a lot of flexibility. Borrowers can choose to make higher repayments to save on interest rates and take out years off their loan terms. In case the Reserve Bank of Australia slashes rates, your monthly payments will be reduced. However, if the rates go up, you will have to pay more. But if you make sure that you pay more on your repayments, you will still be able to save money in the long run.

No-Doc and Low Doc Home Loans

Borrowers who can’t present proof of income or statement of assets and liabilities and other important documents will still be able to qualify for a home loan with this product. This basically allows anyone to have a shot at being a homeowner.

However, this type of loan can pose a lot of risk for the lenders so, to compensate, they may charge higher fees.

No Deposit Home Loans

This type of loan doesn’t require borrowers to save up for the deposit because there will be no down payment. All a borrower needs to pay for are moving costs and some fees. This is great because anyone can buy a house without spending a lot of time trying to save on high down payment costs.

The only problem is that due to the recent global crisis, a lot of banks took out this loan from the products they offer, although there are still some lenders who offer this.

Investment Home Loans

Investment home loans allow borrowers to purchase properties that they can use as a source of income for the coming years. Different people take advantage of investment loans, and it is the best time to spend money on something that is profitable. Melbourne home loans experts will make sure that you find getting approved for this type of loan is convenient.

Becoming a homeowner is not a problem in Melbourne, especially if you have experts helping you. So don’t wait any longer and start shopping for really good rates.

Filed Under: Buying a Home, Buying Investment Property Tagged With: types of home loans in Melbourne

Low Doc Loans Melbourne—How to Get Home Loans without Presenting Proof of Income

July 9, 2011 by Mortgage Broker Melbourne Leave a Comment

Buy a Home with Low Doc Loans Melbourne Having problems getting your loan applications approved because you lack some important papers like financial statements or tax return? Low doc loans Melbourne is here to help you.

There are quite a lot of self-employed individuals that can’t provide the necessary documents when applying for a home loan. Although they have a regular income and some assets, producing such papers in a certain period of time can be tough unlike those who are employed in companies.

Even individuals who have had bad credit history can take advantage of low doc loans to apply for a home loan.

Low doc loans (low documentation loans) are designed to help people who can’t qualify for a traditional home loan. Although borrowers will still need to go through the normal application process, they are not going to be required to submit papers like proof of income, assets and liabilities.

This offers people who can’t be eligible for traditional loans the opportunity to have a place they can call their own given that they get help from the people who know best. Low doc loans Melbourne providers can help anyone transform their lifelong dream of becoming a homeowner a reality.

There are 3 types of low doc loans:

Account statement type loan – this requires more proof of income prior to approval

Self-income loan – borrowers only need to present a statement of income to qualify for the loan. No verification is necessary.

Asset lend loan – borrowers will not be required to present a declaration of income since the loan is secured by the value of the assets.

There is just one downside for such loans: the borrower may pay higher interest rates.

Low doc loans can be considered as heaven’s gift for borrowers who are finding it difficult to produce necessary papers to prove their eligibility. You can basically get a home loan approved without presenting anything. However, since this puts the lender at a lot of risk, lenders may make up for it by charging a higher interest rate or lenders insurance.

Some would think that paying more is a disadvantage, but if one thinks about it carefully, such loans allow for very easy approval. The extra costs would definitely be worth every cent paid.

Filed Under: Buying a Home Tagged With: buy a home with no requirements, low doc loans

How Much Can I Borrow to Buy a Home?

July 7, 2011 by Mortgage Broker Melbourne Leave a Comment

“How much can I borrow to buy a home?”

This is probably the question running through your head if you have decided to purchase a home but is a little bit unsure if you could afford it.

Fortunately for most borrowers, there are different means to help determine the amount they can borrow from lenders. Stuff like mortgage calculators or simply consulting with mortgage brokers can help accurately predict the amount one can realistically afford when trying to take out a loan.

The reason most people want to find out the amount they can borrow is that they want to be able to determine if their monthly salaries can afford to add another payable. This is a prudent thing to do. If you are interested in investing in a property, it is wise to identify first if you will be able to afford it. Your monthly paycheck may be big, but you have to consider the fact that you are paying for other things like food, utilities, credit cards, etc. and adding another item can make things a bit tough for you.

You need to make sure that there’s still some money left in your bank.

Here are 3 things you can do to determine the amount you can borrow:

Use a mortgage calculator. There are various mortgage sites that have calculators visitors can use to determine how much they can borrow. This is probably the easiest and most convenient method you can utilize.
Do the computation yourself. There is a simple way that will help you pretty much predict how much you can afford if you do take out a loan. You just take into consideration the money you earn each month and then subtract from it your expenditures. It may not be a very accurate figure, but you will be able to have an idea how much money you have left each month for an additional expenditure like mortgage.
Consult a mortgage broker. This is a no brainer. Brokers are experts. They will be able to help you answer your question. If you want to know if it’s a good time to buy a property, what type of loan you should get, and how much you can borrow, they are the people you need to run to for help.

If you’re still asking “how much can I borrow?” then it’s best to check out a reliable mortgage broker or lender. They will give you the answers you need.

Filed Under: Buying a Home Tagged With: cost of buying a home, how much can i borrow

Fixed Rate Loans Melbourne—Protect Your Home by Getting Fixed Monthly Payments

July 5, 2011 by Mortgage Broker Melbourne Leave a Comment

Fixed Rate Loans can serve as protection for you It is important for many homebuyers to get a fixed rate on their loans because it helps guarantee that they will be able to keep up with the monthly mortgage payments no matter how the economy turns out in the future. It is for this reason that fixed rate loans Melbourne providers are more than willing to grant interested buyers this option.

How does a fixed rate loan help an individual?

The answer can be summarized into one word: protection.

It protects homeowners from the interest rate hikes in the future. With fixed rate loans, borrowers and lenders agree on a fixed amount of monthly payments for a certain period of time. Usually, the time frame is between one and five years. Borrowers will know exactly how much they need to pay each month.

There is no worry of getting a notice that your monthly payment has increased by a certain amount.

With fixed rates, you pay exactly the same amount even if the interest rates go high in the near future. The only downside of this is that if the rates fall, you will not be able to take advantage of that; you’ll still pay the agreed amount. However, it is least likely that interest rates plummet.

Borrowers have the option to fix either a part or the entire loan. Of course, consulting a mortgage broker is essential because they will be able to determine if fixing the loan is suitable or not. They will be able to foresee how interest rates move in the coming months and years. If they feel like rates are likely to go up, they can recommend setting the loan on a fixed rate basis.

There may be a small fee associated with fixing the loan, but that would be nothing compared to the security and convenience a borrower will get.

It is ideal for any homebuyer to get fixed rate loans. This will offer a security blanket in case the economy goes sour. You’ll never know what would happen so it’s best to be prepared.

It would also be prudent to consider some of the minor setbacks one could experience from getting help from fixed rate loans Melbourne providers. One inconvenience is that a borrower may have to pay a certain fee should he (or she) decides to get out of the fixed term before it expires. But not a lot of people would want to get out of a fixed rate term unless the interest rates have really plummeted.

Borrowers on a fixed term may also not be eligible to add on features like early repayments. However, since the housing market is increasingly become more competitive, more lenders are extending these perks to fixed rate loan owners.

Fixed rate loans are perfect for homebuyers who want security. These are great for anyone who needs to plan out their monthly finances and not get affected by any hike in interest rates.

Anyone could get this. If you are worried that interest rates may rise in the near future and you want to keep your house, then get your loans fixed through the best fixed rate loans Melbourne providers.

Filed Under: Mortgage Tips Tagged With: benefits of fixed mortgage loans, fixed rate loans

Mortgage Repayments Can Help You Pay Off the Entire Loan in Time

July 2, 2011 by Mortgage Broker Melbourne Leave a Comment

Mortgage Repayments Tips One of the concerns homebuyers have is that even though they have come to the end of their mortgage terms and made payments constantly, they may still not be able to fully own their homes because they still need to pay for the capital of the house. Mortgage repayments can help keep you from still being in debt after so many years.

Typically, homeowners, when they make monthly payments, only the interest of the loan is covered. None of the capital amount is reduced. Overtime, the payments made go to the interest; the entire balance will still be settled at the end of the loan term.

To repay the entire loan, homeowners will have to take out a separate plan to make monthly payments. For most people, pension plans or endowments are used.

If you are going to take out a loan for a home, wouldn’t you want to settle it as soon as you can? Doing so will help keep you from having to worry about being in debt for a very long time.

It’s a good thing that mortgage repayments can help you gradually reduce your interest rates and pay off the entire loan.

How do mortgage repayments work?

A repayment mortgage is one of the most common repayment schemes in the mortgage industry. Also referred to as capital mortgage, this system will slowly pay off the loan by making monthly payments part interest and part capital payments. Instead of the money going to the interest only, part of the payments made will go to the loan balance. That way, your loan will lessen as you continually make payments.

You may have to deal with higher payments, but that will assure you that your mortgage will be paid off after the loan term expires.

In short, the house will truly be yours after several years. No need to worry about making additional payments anymore.

There are different types of mortgage repayments based on the interest rates you are paying. They are the following:

Variable Interest Repayment Mortgage

The amount you pay will vary from time to time depending on the current rates. If the interest rates go up, expect to make higher payments. However, if the rates fall, your monthly payments will be reduced.

Fixed Interest Repayment Mortgage

This will lock your monthly payments because the interest rates are fixed for a certain period of time. Lenders can offer fixed interest rates for 1, 5, or even 10 years. Most of the times, this is good because you don’t need to pay a lot even when interest rates climb. But if they do fall down, you will still pay the same amount.

Discount Interest Repayment Mortgage

This scheme works best for first time home buyers because they will have small first payments for a period of time (discount period). They can take advantage of this time to spend on buying furniture or appliances for the new home. However, once the discount period is up, you may be forced to make up for it.

Filed Under: Mortgage Tips Tagged With: mortgage help, mortgage repayment

How to Reduce Your Mortgage—Simple Yet Effective Tips You Could Be Overlooking

June 30, 2011 by Mortgage Broker Melbourne Leave a Comment

Most homeowners would tell you that they would like to pay off their loans before the term ends. However, some people would find this hard to do because they don’t have enough money. Add to that the instability of jobs these days. One day you have a job, the next day you’re out of work. This can be highly worrisome. If you know how to reduce your mortgage, then you may not have to stress yourself out too much when it comes to paying off your house.

Luckily, there are a lot of resources that would help all homeowners pay off their homes a lot more efficiently. Having the right strategy can help you cut down your loan term.

These tips on how to reduce your mortgage will become really handy, so take note of them:

Use an automated system for paying your mortgage. This is good because you make sure you don’t default on your mortgage. This eliminates situations where you spend too much on other things that you run short of cash for the most important thing—your house.

Pay your mortgage as soon as you have the cash. In cases like this, it’s best to make payments the moment you get some money. You can even make weekly payments. That way, you will be able to save more over the course of your loan because you save on interest.

Cut down your expenses. Take a pen and paper and start listing down all your expenses. Along the way, you will see an item or two that you don’t really need. You can take that out from your budget to save more money to pay off your mortgage.

If you get some windfall and you don’t really have something urgent to spend on, make a large payment for your mortgage. This should help shorten your loan term and save you money on interest rates.

When rates are going down, why not increase your repayments? This means you add $20, $30, or even $50 for each payment. This will help you shorten the loan term by as much as 2 years. Simple changes like cutting back on coffee each day or not going out every Friday night will help you accomplish this.

Consolidate your loans.

Mortgage offsetting will help you save money on interest rates. This simply means offsetting your loan by having a savings account. What happens is the how much you have on your savings account will be calculated and subtracted from the actual interest rate of the loan. The interest will only be calculated on the balance. This will greatly reduce the money you will pay on interest over the years.

Consult with a broker. This is probably one of the best ways on how to reduce your mortgage. If you feel like the type of loan you have isn’t suitable for you, you can have it changed. Brokers can help you refinance to a better deal.

Do these things and you’ll soon discover that paying off your mortgage isn’t as daunting as it used to.

Filed Under: Mortgage Tips Tagged With: how to reduce your mortgage, save money on mortgage

Choosing a Mortgage Broker Tips

June 28, 2011 by Mortgage Broker Melbourne Leave a Comment

Tips on choosing a mortgage broker Do you have trust issues? If you’re someone who doesn’t trust someone easily, life can be a bit hard because you don’t get to truly enjoy being with people. However, if you’re trying to get a house, this trait will come very handy when choosing a mortgage broker.

Now, why do you need to have trust issues when looking for a broker? It really isn’t a requirement. All I’m saying is that if you don’t trust people very easily, you will be able to find a really good mortgage broker because, for sure, you will filter them probably a lot more difficult than the judges of Australian Idol chooses those who come to the show.

You shouldn’t pick a broker without getting to know them really well. Don’t take others’ word either because you need to be one hundred percent sure that the broker you’ve found is trustworthy and capable of giving you the best deal.

Brokers are not only skilled in finding you a home; they also know how to save you a lot of money.

So what do you need to do when choosing a mortgage broker?

The first rule in picking a mortgage broker is to get it right the first time. Choosing a terrible one will cost you money—not to mention the wasted time and effort. Unless you have a thing for failure, get it right the first time.

Search organizations. There are different organizations or websites that will connect you with highly-qualified mortgage brokers.

Make sure that the broker you are hiring has enough experience and has adhered to the proper Code of Practice. See if the broker is registered with ASIC. It would be in your best interest to work only with members registered with ASIC.

Never go with brokers that are found through solicitations. Basically, these brokers are begging you to use their services. There’s a reason why they’re throwing themselves at you—not too many people trust their skills. The good ones don’t have to resort to this; they usually enjoy referrals from satisfied clients.

When you’ve narrowed down your list, arrange a meeting with the broker so you can address any question you have. When you do, make sure to ask all the important questions and try to find out the options you have.

Take careful notice of how he (or she) communicates with you. Does the broker use too much technical terms that you barely understand anything he says? If the broker tries to simplify things and explain them to you well, then that’s a sign that your broker will be really helpful.

Get everything in writing. No matter how nice and friendly the broker seems, it’s best to have everything recorded especially specific terms like lender fees, insurance, etc.

When it comes to choosing a mortgage broker, it is always best to have everything settled. You need to trust your broker. But before that happens, you have to make sure that the broker is qualified and possess the required skills, experience, and attitude to help you find a home you can call yours.

Filed Under: Buying a Home Tagged With: buying a home, choosing a mortgage broker, how to find a broker

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