Home Loans for Consumers
Buying a home is often the biggest financial commitment that people will undertake. In most circumstances, it will require borrowing a significant sum of money to complete the purchase.
Whether it is your first home, a home upgrade, a holiday home or an investment property, it is likely to take many years to pay off the home loan debt.
Different lenders have different sweet spots and niches. So finding the most suitable option amongst a range of lenders, is critical for his clients.
As a mortgage broker, Paul welcomes the introduction of Best Interests Duty (BID). This means that brokers MUST ensure that they act in the best interests of their clients.
Investment Home Loans
Having a sound investment strategy is critical to achieving your goals and aspirations. Therefore, seeking advice from your accountant is critical to formulating your investment strategy or plan. Paul will work with your accountant to ensure the strategy aligns with these plans and help find the most suitable Home Loan.
Lenders generally reward clients who request repayments of Principal and Interest (P&I), with a lower interest rate. However, if the strategy is for repayments to be interest only, i.e. only repay the interest on the investment loan, that will form the basis of the loan application.
If you already own a property you may be able to purchase an investment property without a cash deposit, if that is consistent with your strategy.
Choosing the right property profile and tenant, together with the tax benefits, may help cover a significant percentage of the monthly loan repayment.
Investment Loan Options
Almost all lenders offer investment property loans. Although, in 2017-18 the Reserve Bank placed restrictions on some lenders. This was because they believed those banks had a heavy reliance on investment home loans, compared with owner-occupied home loans.
The chosen lender should offer a loan that is consistent with your plans and specific lending requirements.
Borrowing to acquire the next investment property generally gives you a number of taxation advantages. But, obviously, not all properties will fit into your strategy, likewise with the investment home loan.
First Home Buyers
Purchasing your first home can be a daunting process for the first home buyer. Paul offers a no obligation consultation for anyone dreaming of buying their first home.
There are a number of “traps” to avoid when buying the first home and Paul can provide important tips when dealing with real estate agents and others. Remember that real estate agents act for the seller, not the purchaser.
A lot of first home buyers don’t fit into the “box” that many banks expect them to be in. It may be possible to qualify for a home loan with as little as a 5% deposit*.
Some of the major lenders are now only lending up to 90% of the property value, others up to 95% of the property value. Whereas, in the past, it was possible to borrow up to 100% of its value.
* Conditions apply.
Paul will help make the process as simple as possible.
He will guide you through the journey and help find the right home loan for your from his extensive panel of lenders.