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8/14/2019 Home Equity Loans Australia
1/4INSIDE Living with your home loan Lenders mortgage insurance Tips and tricks to save a deposit
Its the start of a bright, bold and
happy new year - and perched at
the top of your New Years
Resolutions list is your goal of
becoming a property investor.
But where do you begin? There
are many aspects to consider.
Research, research, research.
Be sure to read as much as you can
about investing in property, including
industry magazines, property and/orinvestment columns, radio programs,
TV shows and reputable property and
investment websites. You may also
like to consider attending seminars
held by reputable organisations and
nancial services businesses that are
licensed in Australia. Be sure to add
books written by licensed Australian
advisors to your list, too.
Do your sums and seek advice.
Find out whether you can truly affordto make the investment. Consult with
your nancial advisor and talk to your
accountant to determine whether you
can afford mortgage repayments,
factoring in interest rates, taxes, and
clarifying whether it is likely to affect
any social security payments or benefts.
Determine your strategy.
There are many ways to invest and you
may not want to put away all your spare
cash into superannuation, for example.
Work out your personal motivations.
What are your personal goals in life?
What will ultimately bring you
satisfaction and contentment? What
your friends, family or peers want for
themselves does not necessarily apply
to you. Consider what you want to
achieve nancially over a period of
time whether thats a ve year, ten
year, or twenty year period and so on.
It is also an idea to consider what your
comfort zone truly is, in regards to
how long you want to invest the
money for and when you ultimatelywant to reap the rewards from your
investment strategy.
Continued on p2...
Summer / Autumn 2008 Newsletter
Awarded toMortgageChoicebyAustralianBankingandFinanceMagaz ine
Invest today for a better tomorrow
Did you know that up to 60 different areas of the law could makethe difference to the purchase of your property?
A solicitor or conveyancer will help you understand the legalobligations of the purchase of property and advise you on anymodications to the contract to ensure your needs are met. Even if
you believe its a standard contract its wise to discuss it in detail toensure you understand the commitment you are making and themeaning of the more technical terms that may be used.
During the course of the purchase, the solicitor or conveyancerwill assist you with:
Conducting extensive searches into the land title, developmentplans, council zoning, and any restrictions and ownershipinterests on the property
Ensuring the transfer of ownership to you stays on track and assist
with ensuring that both sides of the party full their obligationsIf you are purchasing an apartment, your solicitor or conveyancer
will also review the strata minutes, which will provide informationregarding noted building structural issues, the Body Corporate,common area problems and any noted trouble with neighbours.
ENSURE PEACE OF MIND WITH YOUR NEW HOME PURCHASE
Wishing you peace, happinessand prosperity for 2008.
As we begin the new year, MortgageChoice would like to say a special thank
you to all our clients, friends, family andbusiness partners for your supportduring 2007.
Its also time to look ahead to thepromise and opportunities of theupcoming year.
With 2007 being a year lled with
multiple interest rate rises, its importantto be aware of your current nancialsituation to ensure that you are preparedfor the year ahead and will achieve the
nancial goals that you aspire to.
Mortgage Choice Limited302 Charman Road CHELTENHAM VIC 3192
Phone 03 9585 7779Fax 03 8610 0365
www.mortgagechoice.com.au/cheltenham1This franchise is independently owned and
operated by The Finassist PartnershipABN 51 426 348 068
Anthony SmithPh:9585 7779
Fax:8610 0365
Mob:0413 439 761
anthony.smith@mortgagechoice.
com.au
Gary MackertichianPh:9585 7779
Fax:8610 0365
Mob:0418 155 565 gary.mackertichian@mortgagechoice.com.au
Mark BoultonPh:03 9533 5340
Fax:03 8611 7915
Mob:0 403 047 147
mark.boulton@mortgagechoice.com.au
Chris HowittPh:9333 4370
Fax:9333 4376
Mob:0401 334 599
chris.howitt@mortgagechoice.com.au
Craig MicallefPh:9308 9163
Fax:9308 9257
Mob:0417 655 577
craig.micallef@mortgagechoice.com.au
Stephen ForresterPh:03 9773 3438
Fax:03 8610 0365
Mob:0409 250 347
stephen.forrester@mortgagechoice.com.au
Jill OConnorPh:9585 7779
Fax:8610 0365Mob:0412 647 506
jill.oconnor@mortgagechoice.com.au
Mitch JonesPh:03 9773 3438
Fax:8610 0365
Mob:0412 881 907
mitch.jones@mortgagechoice.com.au
NEWS FROM
MORTGAGE CHOICE
8/14/2019 Home Equity Loans Australia
2/4
...continued from p1
Think about the type of investmentyou are looking for, too.
Do you want whats known as an
incomeinvestment (a type of
investment that gives you an income
from earning interest but generally
has little or no capital growth) or a
growth investment, which, as well as
earning you income, increases thevalue of your original investment.
Know your market.
Find out everything you can about
the area in which you intend to
purchase. Are prices increasing,
decreasing or stagnating? Are there
any major infrastructure projects
planned in the area? What are the
average prices like? While weighing up
the pros and cons behind your
decision, seek an independent
evaluation that includes all recent
comparable sales and rentals in the
local area. Is the value of your
property likely to increase over time?
Seek an independent evaluation.
Secure your paperwork.
Get into the habit of keeping your
paperwork in good order contracts,
policy documents and so on. Keep it in
a le that is easilyaccessible it will
come in handy when you need to refer
to any documents relating to yournancial affairs as well as bringing you
peace of mind.
Dont be pressured into signing
anything you are not
comfortable with.
Be careful not to let other people
pressure you into a decision you are
not comfortable with be prepared to
say no! Seek the assistance of a
solicitor before signing anything. And
steer clear of get rich quick schemes
or other promises to make you anovernight millionaire.
See a reputable mortgage broker.
Choosing a property loan to suit your
lifestyle and nancial circumstances is
paramount. This is where a reputable
mortgage broker can assist you.
Mortgage Choice loan consultants can
meet with you to discuss your loan
options and tailor a loan product for
your needs, from its panel of leading
lending institutions. A Mortgage
Choice loan consultant can assist you
with your property loan either at one
of their ofces during business hours
or they can make an appointment at a
time thats more convenient to you.
A mortgage brings the thrill of homeownership, but once the champagnestops fowing its essential that youcan live comfortably with yourloan. Try our few simple steps toget the most from life and yourhome loan.
Life will be a lot easier if you onlyborrow what you can comfortably repay- even after allowing for possible ratehikes. If you can manage it, additional
repayments will fast track your way tomortgage freedom.
Even small extra payments can have abig impact. On a $250,000 mortgage,paying just $50 more each month on a30 year mortgage could trim your totalprinciple and interest repayments by upto $51,379 (assumes interest of 8.25%).
A redraw facility lets you tap intothese additional repayments a realplus for meeting unexpected bills.
Offset accounts are also worth
considering. Rather than being paidinterest on your spare cash, any savingsare used to reduce (or offset) theinterest on your loan. It means more of
your regular repayments go towardswhittling away the principal.
Many mortgages, including line ofcredit loans, accept salary deposits,letting you use your loan as a one-stop-shop. Cash can be redrawn when itsneeded, while any surplus goes toreducing the mortgage. This way everycent is put to work paying off the
balance. But you do need to bedisciplined about withdrawals.
If your loan is truly testing yourmettle, think about renancing. It may
be possible to nd a loan that suits youbetter. Karen and Peter Orr recentlyrenanced, discovering their loan can bea useful nancial tool. Karen explains,Refnancing gave us a better deal on ourrate, and it also meant we could tap intoour home equity to access low-interest
funds to build a new swimming pool.
If rising rates are making yourmortgage a tough task master, it may be
worth xing, since this gives thecertainty of knowing what yourrepayments will be. Anthony OBriendid just that 12 months ago, and nowhes thumbing his nose at rate hikes. Axed rate hasnt just meant savings oninterest, explains Anthony. Its alsoallowed me to budget for mortgagerepayments. As a self-employed worker
with an irregular income, thatsdenitely helped me live with my loan.
Your home loan can also streamlinedebt management. Consolidating otherdebts, including credit cards, into yourmortgage can make for easier moneymanagement, often reducing the totalmonthly repayment you have to make.
Sticking to a disciplined repaymentschedule and controlling credit cardspends can mean valuable savings intotal interest. And thats something wecan all live with!
Have you started reading aboutpurchasing a home and comeacross the term Lenders MortgageInsurance but unsure about
what exactly it means to you?
Lenders Mortgage Insurance, orLMI, is a type of insurance taken out by
banks, building societies, credit unionsand non-bank lenders, designed to
protect the lenders in the event that theborrower cannot meet their repaymentobligations and the funds from sellingthe borrowers assets dont cover theloan. LMI is generally a one-off paymentmade at the outset of a home loan and
it is generally requiredfor borrowers whohave less than a20% deposit.
Lenders MortgageInsurance cansometimes be confused with MortgageProtection Insurance (MPI), whichcovers you, the borrower, for the
payment of your mortgage instalmentsin the event that you are affected byunforeseen circumstances such asunemployment, illness or death. This typeof insurance is paid annually and variesaccording to the outstanding loan balance.
Lenders Mortgage Insurance
Living with your home loan
8/14/2019 Home Equity Loans Australia
3/4
Singling out a great opportunity
Saving has rarely been easy for most people andsaving the deposit needed for a home can be difcult.But with planning, commitment and a few smartstrategies its possible to build a decent nest egg.
A vital rst step is to establish a savings goal usuallybetween 5% and 20% of your ideal property value. Thisgives you something concrete to work towards plus abenchmark of your saving achievements to date, which mostlenders will want to see. Revisit your household budget for aclear picture of how much you can realistically tuck away ona regular basis. Adding lump sums likeyour annual tax refund will turbo-charge your deposit.
It can be counter-productive tobuild savings if youre also carryinghigh interest debts, so aim to reduceoutstanding credit card balances orpersonal loans by repaying more thanthe minimum. Lenders will enquireabout existing debt commitmentswhen you apply for a home loan,and in addition to helping build adeposit, reducing personal debtdemonstrates you have the disciplineto manage a mortgage.
Now, make building a deposit your key nancial goal.This may mean sacricing a few of lifes luxuries but yourcommitment will be amply rewarded. Its often a goodstrategy to save rst and spend whats left. Stay on top ofyour savings target by asking your employer to pay part ofyour pay cheque into a separate savings account or
arrange a direct debit of your own.
Once you have a rm idea of how much you can save,shop around for a suitable investment vehicle. Some of thebest short-term returns as high as 7% annually - are
offered by online savings accounts. Websites likewww.infochoice.com.au offer comparison
tables of a wide range of accounts.
Be sure to read the ne print on anyaccounts though. Some offer tieredrates, only paying top interest on
balances over a certain limit. Itsimportant to have every cent working foryou, so look for a decent rate that appliesacross the board. And keep an eye out forregular account fees these can quicklyeat in to your savings pool.
Tips and tricks to save a deposit
Congratulations to the winner of theSpring / Summer 2007 MortgageChoice Its Your Choice promotion.
Steven Caruana of Highgate Hill inQLD has won $6,000.W
INNER
8/14/2019 Home Equity Loans Australia
4/4
Thats all the time we need to show you how to get the real savings you want on your mortgage.
With a Free Mortgage Choice Home Loan Health Check, your local Mortgage Choice consultant can help you
nd out if your current home loan is the most suitable one available or if there are other products out there that
better address your specic needs. With the backing of Australias leading mortgage broker - youre in safe hands.
Wide choice: We have many of Australias leading banks and lenders on our panel
Professional home loan advice
Local knowledge: Were Australias leading mortgage broker because we combine local knowledge with over15 years experience
Fax it to: (02) 9954 4913 or
Mail it to: Reply Paid 74789, Mortgage Choice Its Your Choice Promotion, McMahons Point NSW 2060
NAME CONTACT NUMBER
ADDRESS POSTCODE
EMAIL ADDRESS PREFERRED CONTACT TIME
THE ITS YOUR CHOICE PROMOTION: Call 1800 110 170 to make an appointment with a Mortgage Choice consultant and once youveattended that appointment youll automatically go in the draw to win $6,000. There will be 1 draw and the rst valid entry will win. Winners will be
notied by telephone and conrmed by mail. The opening day of the competition is 30th January 2008. All entries must be received by MortgageChoice at the above address by 5pm Eastern Standard Time on 30th April 2008. The draw will be held at 4pm Eastern Standard Time for the rstdraw on 1st May 2008 at the ofce of Mortgage Choice. The name of the winner will be published in The Australian on the 5th May 2008. *Complete
Terms and Conditions and the privacy notice are available from your local Mortgage Choice consultant or by logging onto the Mortgage Choicewebsite at: www.mortgagechoice.com.au. Authorised under NSW Permit No, [LTPS/07/20443], A.C.T. Permit No. [TP 07/04901], VIC Permit No,
[07/5211], and S.A. Permit No. [T07/4965].
Wintowards..
Its your
You could save $1,000s in 15 minutes, try us!
$6,000
choice!
Privacy: There will be occasions where we would like to send you valuable inormation directly related to property fnance, as well as other related oers, tips and opportunities. However should you wish toreceive only certain types o inormation or nothing at all, please contact your local ranchise principal. Disclaimer: The content o this newsletter is written expressly or education purposes and is based onthe opinions o the authors. The authors and agents or the authors are unable to accept any liability or responsibility whatsoever to any error or omission or any loss or damage o any kind sustained by aperson or entity arising rom the use o this inormation. It is recommended that you seek proessional advice relevant to your specifc circumstances beore acting on the inormation based in this document.
STATE OF THE MARKET
Melbourne has experienced extraordinary growth over the past months. The overall median house price in Melbourneincreased to $431,000, which is up by 13.1% over the year.
In the September quarter the greatest increase in median prices occurred in the middle band suburbswhere the median increased by 8.1% from $390,000 to $421,795. The greater increases in themiddle and outer suburbs indicate that buyers are looking for value outside the veryexpensive inner suburbs.
Increases in the median values for other dwellings were much more uniform withthe inner suburbs increasing by 6.3% from $395,000 to $420,000, the middlesuburbs by 4.6% from $315,000 to $330,000 and the outer suburbs by 2.9% from$240,000 to $247,000.
Written by Real Estate Institute of Australia for Mortgage Choice
Simply call 1800 110 170 to make an appointment with a Mortgage ChoiceConsultant and request to be entered into the draw.
According to MortgageChoices latest independentonline survey, Australianconsumer sentiment for 2008is more positive than it wasfor 2007. 83% of respondentswere condent that oureconomy will be strong next
year, while interest ratesremain the biggest concernfor almost half (45%),followed by economicmanagement at federalgovernment level (25%).
Despite interest rate risesin 2007, mortgage marketgrowth remains steady,demonstrating the greatAustralian dream ofproperty ownership is
moving forward relativelyunabated - a trend thatlooks to continue.
Warren ORourke,National ManagerCorporate Affairs,Mortgage Choice Ltd
Call now on 1800 110 170 or ll in your name and contact details below and
Mortgage Choice Limited302 Charman RoadCHELTENHAM VIC 3192Phone 03 9585 7779Fax 03 8610 0365www.mortgagechoice.com.au/cheltenham1This franchise is independently ownedand operated by The Finassist PartnershipABN 51 426 348 068
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