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Home Loans Budgeting

Your Checklist For Moving House on a Budget – 2024 Edition

Checklist For Moving House on a Budget
This is the all-in-one blog for moving house on a budget.

Moving to a new house can be an exciting yet stressful experience, especially when trying to stick to a tight budget. Proper planning and strategic decisions can distinguish between an affordable move and one that drains your savings.

This checklist for moving house on a budget provides practical tips and insights on moving without breaking the bank so you can enjoy a smooth and cost-effective transition to your new home.

We’ve also included a checklist with all of the potential costs of moving house in Australia at the bottom of this blog.

Moving House On A Budget – The Top 10 Considerations

1. Planning Ahead

Planning ahead is one of the most crucial steps in moving house on a budget. The earlier you start, the more time you have to make cost-effective decisions and avoid last-minute expenses. Here are some steps to help you plan effectively:

  • Create a Moving Checklist: Follow the guide below and list all tasks that must be done before, during, and after the move. This will help you stay organised and ensure nothing is forgotten.
  • Set a Realistic Budget: Determine how much you can spend on your move. Use the comprehensive checklist at the bottom of this blog to consider all potential costs, including packing supplies, transportation, and any professional services you might need.

Starting early and having a clear plan can spread expenses over time and reduce the financial strain.

2. Is Your New House Close To The Essentials?

Adapting to your new surroundings is crucial. Consider these factors:

  • Proximity to Essentials: Check the distance to the nearest supermarket, hospital, and other vital services. A closer location can save you time and transportation costs.
  • Schools: If you have children, research nearby schools. A school within walking distance can save fuel costs and provide a safer commute for your kids.
  • Public Areas: Evaluate the accessibility to parks, recreational areas, and other community amenities.
  • Bus Stops and Train Stations: Identify the nearest public transport options and consider how they fit into your daily commute. Public transport can reduce the need for a car, saving on fuel, maintenance, and parking fees.
Assess The Accessibility Of Your New House To The Essentials

3. Visit The New House To Check For Maintenance Issues

Before moving in, thoroughly inspect your new house for any maintenance issues. Here are key areas to check:

  • Utilities: Ensure electricity, water, cable, and internet services are installed and functioning.
  • Repairs: Look for any overlooked flaws that might need fixing, such as leaky taps, faulty wiring, or cracked walls.
  • Prioritise Practicality: Focus on essential repairs rather than luxurious upgrades. For instance, fix any immediate issues in the kitchen, living room, bathroom, and bedroom, and save major renovations for later when you’re financially stable.

4. Decluttering and Downsizing

One of the best ways of effectively moving house on a budget is by reducing the amount of “stuff” you’re taking. It’s important to view moving as an opportunity to declutter and downsize your belongings. Here’s how to go about it:

  • Benefits of Decluttering: Fewer items mean less packing, fewer boxes, and potentially a smaller moving truck, all saving money.
  • Strategies for Decluttering: Go through each room systematically and decide what to keep, sell, donate, or recycle. Ask yourself if each item is something you truly need or love.
  • Selling, Donating, or Recycling Items: Hold a garage sale, use online marketplaces, or donate items to charity. Recycling can also be an eco-friendly way to dispose of unwanted items.

By decluttering, you’ll save on moving costs and start fresh in your new home with only the essentials.

5. DIY Moving vs. Hiring Professionals

One of your biggest decisions is moving yourself or hiring professional movers. Each option has pros and cons, and the right choice depends on your situation.

  • Pros and Cons of DIY Moving: Moving yourself can be cheaper if you have friends and family to help, but it’s labour-intensive and time-consuming. It can also be risky if you don’t have experience moving large items.
  • Cost Comparison: Professional movers can be expensive, but they bring efficiency and expertise. Get multiple quotes and consider factors like distance, the number of items, and any special handling requirements.
  • Choosing a Cost-Effective Moving Company: Research thoroughly if you opt for professionals. Look for reviews, ask for recommendations, and get detailed quotes to avoid hidden fees. Facebook groups can be hidden gems for finding well-priced movers.

Balancing cost and convenience will help you decide the best approach for your move.

6. Packing Tips For Moving House

Efficient packing can save you time, money, and stress. Here are some tips to pack like a pro without breaking the bank:

  • Collect Free or Cheap Packing Supplies: Ask local stores for free boxes, use your suitcases and bags, and buy packing materials in bulk if needed.
  • Efficient Packing Strategies: Pack heavy items in small boxes and light items in large boxes. Use clothes, towels, and blankets as padding to save on bubble wrap and packing paper.
  • Labelling and Organising Boxes: Clearly label each box with its contents and the room in which it belongs. This will make unpacking easier and help movers place boxes in the right rooms.
  • Meal Prep with Unused Pantry Items: Before the move, plan your meals around what you have in your pantry to reduce waste and avoid extra grocery expenses.

These packing tips will protect your belongings and streamline the moving process.

Packing Tips

7. Saving on Moving Transportation

Transportation is often one of the biggest moving expenses. Here are some ways to cut down on these costs:

  • Choosing the Right Truck Size: Select a truck that fits your needs without being too large. Overestimating can lead to unnecessary rental fees.
  • Sharing a Truck or Using a Freight Service: If you’re moving long-distance, consider sharing a truck with someone else or using a freight service. This can be more affordable than renting a full truck.
  • Finding Affordable Rental Options: Shop around for the best deals on truck rentals. Look for discounts, compare rates, and consider renting during off-peak times.

By optimising your transportation, you can keep one of the biggest moving expenses under control.

8. Be Organised With Changing Your Utilities and Address

Managing your utilities and addressing change efficiently can prevent unnecessary costs and headaches. Here’s how:

  • Planning Utility Disconnections and Reconnections: Schedule disconnections and reconnections ahead of time to avoid extra charges. Ensure utilities are up and running in your new home when you arrive.
  • Avoiding Extra Charges: Avoid cancellation fees and overlap periods when paying for utilities in both homes. Timing is crucial.
  • Updating Your Address Efficiently: Notify important parties, including banks, insurance companies, and postal services, of your move. Use online services to streamline the process.

These steps will ensure a smooth transition and avoid any surprise bills.

9. Tips To Find Cheap Deals On Wi-Fi And Other Household Bills

Saving on household bills can significantly help when moving house on a budget. Here are some tips:

  • Compare Providers: Use comparison websites to find the best Wi-Fi, electricity, and gas deals. Look for bundle deals that combine multiple services for a lower price.
  • Negotiate: Don’t be afraid to negotiate with service providers. Often, they have promotions or discounts that aren’t advertised.
  • Usage Plans: Choose plans that match your usage. For example, a basic plan might suffice if you use the internet primarily for browsing and emails. Look for plans with higher speeds and data limits for heavy streaming or gaming.
  • Energy-Saving Practices: Implement energy-saving practices to lower your electricity bill. Simple steps like using LED bulbs, unplugging electronics when not in use, and setting your thermostat wisely can make a big difference.
  • Review Regularly: Periodically review your service plans and bills. Technology and offers change, so staying updated can help you switch to better deals as they become available.

Every little bit helps when moving house on a budget.

Tips To Find Cheap Deals On Wi-Fi And Other Household Bills

10. Budgeting For Mortgage Repayments

One of the biggest financial commitments when moving house is the mortgage. Here’s how to budget effectively:

  • Understand Your Repayments: Know the exact amount you need to pay each month, including principal, interest, taxes, and insurance.
  • Create a Mortgage Budget: Allocate a portion of your monthly income for mortgage repayments. Make sure this amount fits comfortably within your overall budget.
  • Emergency Fund: Set aside savings for unexpected expenses. Ideally, you should have 3-6 months’ living expenses in an emergency fund.
  • Refinance Options: Monitor interest rates. Refinancing your mortgage when lower rates can reduce your monthly payments and overall interest costs.

Be Financially Ready When You Move House

Following these tips can make your move more manageable and financially secure.

Financial preparedness is crucial when moving house on a budget. Budgeting can provide great relief if you are not financially ready or feel overwhelmed before moving house. If budgeting alone isn’t enough, a home loan could provide a helpful boost.

  • Budgeting: Create a detailed moving budget that includes moving company fees, utility setup costs, and any immediate repairs.
  • Consider a Loan: A home loan can help cover expenses if you’re short on cash.

If you need help financing your move, apply with the Australian Lending Centre. We provide effective support to ease the financial burden of moving.

The Complete Cost of Moving House Checklist

The Complete Cost of Moving House Checklist

Pre-Move Expenses

  • Building and Pest Inspections: Costs associated with inspecting the new home for structural integrity and pest control.
  • Property Valuations and Surveys: Fees for professional property valuations and land surveys.
  • Conveyancing Fees: Legal fees for a solicitor or conveyancer to handle the sale and purchase contracts.
  • Real Estate Agent Fees: Commission for the real estate agent, typically a percentage of the sale price.
  • Stamp Duty: State government tax on property purchases.
  • Deposit or Down Payment: Initial payment made when purchasing the new home.
  • Cleaning Services: Costs for deep cleaning the old and new homes.

Packing Supplies

  • Boxes: Purchase of new boxes or costs associated with acquiring used boxes.
  • Packing Materials: Bubble wrap, paper, foam peanuts, tape, and markers.
  • Specialty Boxes: Wardrobe boxes, dish packs, and custom-sized boxes for valuable items.

Moving Services

  • Professional Movers: Fees for hiring a moving company, including labour, transport, and insurance.
  • DIY Moving Costs include truck or trailer hire, fuel, tolls, and equipment rental (trolleys, furniture pads).
  • Special Handling Fees: Extra charges apply for moving large, heavy, or delicate items like pianos, art, or antiques.

Transportation Costs

  • Rental Truck or Trailer: Costs of hiring a moving truck or trailer.
  • Fuel: Petrol or diesel for the moving truck.
  • Tolls and Permits: Highway tolls and any necessary moving permits.
  • Travel Expenses: Accommodation, meals, and travel costs for long-distance moves.

Utility and Service Setup

  • Disconnection Fees: Charges for disconnecting utilities at the old home.
  • Connection Fees: Charges for connecting utilities at the new home.
  • Deposits: Security deposits for new utility accounts.
  • Mail Redirection: Fees for setting up mail redirection with Australia Post.

Storage

  • Short-term Storage: Rental fees for storage units if there’s a gap between move-out and move-in dates.
  • Long-term Storage: Costs for extended storage solutions.

Home Repairs and Improvements

  • Repairs in Old Home: Fixing any damages or required improvements before selling or moving out.
  • Repairs in New Home: Prior to moving in, immediate repairs or modifications are required.
  • Cleaning Supplies: Products for cleaning both the old and new homes.

Insurance

  • Moving Insurance: Additional insurance to cover potential damages during the move.
  • Home and Contents Insurance: Insurance premiums for the new home.

Miscellaneous

  • Pet Care: Boarding or pet care services during the move.
  • Childcare: Childcare services on moving day.
  • Temporary Accommodation: Hotel or rental costs if there’s a delay in moving into the new home.
  • Meals: Eating out due to lack of kitchen access during the move.
  • Time Off Work: Lost wages if taking unpaid leave for the move.

Post-Move Expenses

  • Replacement of Household Items: Buying new furniture or appliances for the new home.
  • New Locks and Security: Change locks and install security systems in the new home.
  • Decorating: Painting, new curtains, and other decor-related expenses.
  • Welcome Packages: Gifts or essentials for the first few days in the new home.

These potential costs can add up quickly, so planning carefully when moving house on a budget is crucial. The more organised you are in the buildup to your move, the smoother and more financially manageable the move will be.

Categories
Home Loans Self Employed

How To Get A Home Loan Self-Employed

how to get a home loan self-employed
Are you self-employed and worried that you don't have the documentation required to get home loan approval?

Being self-employed, while rewarding, takes a lot of work and commitment. When it comes time to purchase a home as a self-employed individual, it can be incredibly daunting. Traditionally, banks do not favour those who are self-employed. Preferring those who can demonstrate a sure and steady income from a third party. How to get a home loan self-employed is possible though, and you don’t have to settle for a less competitive rate. 

What Types Of Loans Are Available To The Self-Employed?

If you do a search for home loans as a self-employed individual the chances are that the first results you’ll see references to ‘low doc’ loans. Low doc loans or low document loans require less paperwork than traditional home loans. They are offered to the self-employed as they require less proof of conventional income. There are other reasons lenders will promote lo doc loans such as:

  • Higher interest rates. Low doc loans always incur higher interest, meaning more profit for the lender.
  • Cheaper to process than standard loans.
  • Easier to process as less paperwork.
  • Less for lenders to check or comprehend about your business. 

Of course, with a little more work and attention to detail, you can gain access to other standard home loans such as:

self employed home loan

Why Can It Be More Challenging to Secure A Loan When Self-Employed?

Ultimately, any lender determines the success or failure of a loan application based on the borrower’s ability to pay it back. For those employed by a third party or PAYE borrower, it is easy to demonstrate income. Both amount and consistency of earnings. 

When you are self-employed, this is much harder to quantify. Not only will you have fluctuations in income, but your business will incur profit and loss. Additionally, they will try to determine the future viability or issues your business may face and how this would impact your ability to service the loan. 

It is a lender’s legal responsibility to ensure a loan can be repaid by the borrower. So while the mountain of paperwork may seem excessive, it is done with both yours and the bank’s interests at the forefront.

home loan

How To Get A Home Loan Self-Employed

If you are self-employed and want to pursue a home loan, there are some steps you can take to make this an easier process. Just as you would pay attention to detail and be prepared in business, so should you be in your loan application. 

  1. Engage the help of a specialist broker such as the Australian Lending Centre. They will do the leg-work and shop around different banks and lenders to find you the best offer. Avoid going straight to your personal financial institution as they may not have the best option.
  2. Get your financial paperwork in order. This is one of the major steps in how to get a home loan self-employed. You will need at a minimum the last two-years financial statements, tax returns and notice of assessments. Ensure all of the information has been lodged with the tax office or it may not be counted as valid. 
  3. Read up on the process. Applications can take significant time and each lender may approach the criteria and assessment differently. Understanding how you will be assessed can help you prepare and feel less frustrated at changes or delays. 
  4. Plan ahead. To the best of your ability try to forecast your earnings and expenditures. Avoid overextending yourself and having to try to refinance later should the worst happen. This would mean more paperwork and counts as a new application to most lenders. 
  5. Credit History if you have a bad credit score, as with any loan, this will create issues. Do a check on your credit rating and implement some simple steps to improve it in the short term and boost your chances of success. 
  6. Cash flow. Think about where you ‘park’ your funds for payment of GST and invoices. Utilise these funds to save interest prior to submitting to the ATO. 
  7. Clarify your employment status. If you are a contractor or sub-contractor it can change how you are perceived for loan purposes and make life easier. 
  8. Itemise your add-backs. Add-backs are business expenses that are once off or ‘go-away’ if the business is sold. Examples of this would be insurances, facilities upgrades, or loan interest. Itemising these can help to better assess the profitability and income of the business. 
  9. Proof of ABN registration for a minimum of two years. 
home loan self-employed

Make Your Dream A Reality

Don’t let being self-employed put you off from pursuing your dream home. With careful planning and expert advice from the Australian Lending Centre, your loan application can be easier than you think. If you’re unsure about how to get a home loan self-employed and are looking for guidance, competitive rates, and support, contact us today.

Categories
Home Loans Bridging Finance

Top Tips for Buying Property at an Auction

Buying your property at auction
Buying your property at auction

A great way to get the home of your dreams is buying your property at auction. If you’re lucky, you may even score a great price for it. However, if you’re not experienced in buying a house at an auction, this may turn into a roller coaster ride of hell that you’ll just wish you never got on in the first place. This is where some handy tips for buying your property at auction come into place. If you do it without any experience backing you, not only do you risk losing a lot of money, but you may also have to deal with the fact that the house you had your eyes on may not be within your budget.

On the other hand, if you feel like investing in a home using an auction, you may want to arm yourself with some auctioning tips. Since the competition in Australia’s real estate is pretty hard, you won’t stand a chance if you don’t suit up, stand tall and do your research.

Here are some tips for buying your property at auction

Don’t bid before visiting the auction

Auctions aren’t always 100% sure and the ones holding the bidding will try as much as possible to make you see only what is nice and great about the house – while conveniently glossing over the negative sides.

So before bidding all confidently on an auction, make sure that you are completely aware of what you are trying to buy. Getting a home is as important as it is expensive, so you may want to find out all there is to know about the auction before placing your bid.

Ensure you visit the property prior to the auction
Buying your property at auction

Make sure you are prepared when buying your property at auction

Imagine finding the home of your dreams, bidding on the home and then realising you can’t actually buy the property. Heartbreaking. Don’t let this happen to you. Before you start attending auctions, make sure you have been pre-approved for a home loan. This immediately puts you in a better position, as you are more aware of your spending capabilities. At the same time, you want to make the process as seamless as possible.

Set your budget

Regardless of whether you have been pre-approved or not, you must ensure that you have set a budget. If you don’t want to go into personal financial bankruptcy, you may want to set a budget before confidently throwing your money at an auction. It would be very awkward if you realised at some point that you can’t afford to pay the bid. Therefore, establish the amount of money that you can borrow from the bank – or the sum of money that you already have in your possession.

Arrive early

When buying property, make sure you get to the auction nice and early. This will give you more time to assess the property. Look at the landscape, observe the competition(are they looking at the contract) and give yourself some time to calmly gather your thoughts.

Bid low and slow

Whilst there are many bidding strategies involved in buying a property, we would recommend that you start low and slow. Whilst a big bid can get things moving quickly, it may actually backfire in the long run. Big bids are uncontrollable. If the market is strong, those bids will come about anyway.  If you start bidding earlier on, and slower you are in more control of the situation. The first minute or so of bidding is typically the most nerve-racking. As such, keep the auction going to settle nerves.

Research the market

Make sure you do research on the current housing market
Make sure you do research on the current housing market

Before you attend an auction, make sure you are aware of the median house price in the location. Familiarise yourself with what has been sold in the area. Look at the size of the house, what’s nearby and how it will fit within your lifestyle.  There are many apps and websites such as realestate.com.au which have a whole database of information available at your disposal. Utilizing this information will put you in a better state to make a more informed bid.

Keep to yourself

When attending an auction, don’t spell your entire financial situation to a real estate agent. Keep information such as budget or willingness to pay to yourself.

Get professional help

You know the saying, “better safe than sorry.” A buyers agent can help you deal with the stress and jargon of purchasing a property. Of course, this may be costly, but it will potentially bag you the house of your dreams. Buying agents can bid on your behalf or assist you in understanding the auction process.

Stand confident

When you go to a job interview, you know that you need to dress properly in order to impress and act like you know exactly what you are doing – even though you may not. Well, if we were to take into consideration the top tips for buying a property at auctions, this also applies to a bid for a house. If you look confident and knowledgeable as you bid, this can actually work in your favour. Don’t be afraid to call out your bids loudly and with an ease of confidence. This will dictate that you are serious and not willing to back down.

This is how you can safely land the house of your dreams. Do you have any other tips for buying your property at auction? We’d like to hear your thoughts. Or if you want specific advice on borrowing money before you go on an auction, gat in touch.

Categories
Mortgage Refinance and Refinancing

How Can I Pay Off My Mortgage Quicker?

money bag home and mans hand in sunlight represent the benefits of paying off mortgage quicker

A mortgage is a debt. Therefore, failure to pay on time can cause you massive problems and drive you into stress. The idea of paying off all your mortgage can be pretty unnerving. There is a need to formulate a plan on how to go about the whole repayment process. So, how can you pay off your mortgage quicker?

Having no plan means you will be less likely to live a debt-free life as you will be having issues with your lenders for failing to submit your periodic payments. If you become trapped in a bad cycle of debt and you cannot make loan payments, the banks can opt to sell your home to recover any capital. Don’t be in debt all your life, or risk losing your dream home. Instead, pay your debts off quickly and live financially free.

The following are some free and easy steps you can take pay off your mortgage quicker

Refinancing your home loan

During your financial analysis and review, you may find out that your home loan doesn’t meet your needs. In such a situation, you will need to consider refinancing your mortgage. Bargaining your current rates with your already existing mortgagees or shifting to a new lender that offers a lower interest rate may bring about an increase in savings and help cut down the duration of your principal and interest loan.

Switch to a biweekly payment

As an alternative to one monthly fee, you can submit a half-sized payment every two weeks. What I mean is that, if your average mortgage amount per month is $10000, you will pay $5000 every two weeks. The impact on your budget for this mode of payment remains the same as that of one monthly payment. The only difference is that a biweekly payment schedule will lead to an increase in the annual full-sized amount by one (13) instead of the usual 12 out of the 52 weeks of a year. The concept behind this idea is that you will be making an extra payment every year without soliciting around for the additional capital.

Make your mortgage priority

You can secure a debt-free lifestyle much sooner by using the extra cash to make supplementary payments on your mortgage. There is no sense in paying for things you don’t need

Make more recurrent payments

Since interest on mortgages is calculated daily, submitting payments more frequently may aid in reducing the interest you clear over the term of your mortgage so that sooner you are a debt-free person. Take advantage of your lenders policies as some lenders may allow you to shift from monthly payments to fortnightly repayments.

Maintain the steadiness of your repayments

Interest rates can decrease. You should keep repaying your mortgage even when the prices are higher. When the rates are lower, the excess money will come off your principal, and this money can support you pay off your mortgage quickly.

Assess the market

There is always competition in the market. In a tight market, your mortgagees will still compete for your enterprise, so you should take some time every year to do a mortgage check and find out what promotions are out there. Don’t just sit and forget about your mortgage. There is always an opportunity to save. Take it.

Dedicate any Bonuses into your mortgage

How much you pay towards your unsettled principal balance matters can play a large role in reducing your overall balance.

Over time, you might find yourself with extra funds and lack a better way to put it into use. Situations under which you can find yourself with excess funds include; a bonus from work, tax refund, and inheritance. Choosing to dedicate these funds to your mortgage payment means serious progress towards your mortgage.

 Make use of a mortgage pay off loan calculator

A Loan calculator can be an excellent tool for assessing how long you have until your financial freedom. The calculator can be used for other debt types as well, and it is not just limited to how to pay off your mortgage quicker.

Focus beyond big banks

Big Banks fund and support small banks. Unlike most big banks, smaller banks are ready to compete for their customers harder.

Other than personalized services they offer, most smaller lenders offer mortgage options the big lenders don’t. These options typically include lower interest rates, flexible loan terms, higher lending ratios and lower ongoing loan rates. Above all, alternative lenders are more empathetic to your financial needs.

Consider Downsizing

Shifting from a large house to a relatively smaller one is a harsh step. Nevertheless, if you are determined to pay off your mortgage ultimately, consider selling off your large house. Use the profits gained to purchase a smaller, less expensive home and pay part of your mortgage charges.

The profits you get from selling your bigger home may allow you to pay cash for a new house ultimately. Similarly, you can decide to go for a smaller mortgage. Either way, you will have succeeded in reducing your debt. The lower your balance, the quicker you can pay.

Take Away

Paying off your mortgage quicker is usually a sensible decision. Over the mortgage term, It can save you thousands of money in interest payments. Quickly take a look at all the above steps on how to pay off your mortgage quicker and expect to be among the debt-free persons sooner.

Categories
Mortgage

When Is It Best to Apply for a Mortgage Without Your Spouse?

bad credit home loans

Applying for a mortgage is a tough decision to make, especially when you have a spouse and/or kids. There are cases when in fact it’s best to apply for a mortgage without your spouse. We’ll tell you all there is to know about mortgages and what helps you get your application approved, or what could get it dismissed.

Although starting a marriage and looking for a home might be a dream come true for most of us, applying for a mortgage is a rational decision to make. This takes time and ultimately, it might be smarter to apply separately for it.

Let’s see when it’s the best time to apply for a mortgage without your spouse:

If One of You Has a Bad Credit Score

Applying for a mortgage with your spouse means that both of your credit scores will be put on display for the lender to check and compare. Unfortunately, even if one of you has an excellent score, the one with the bad credit can bring both of you down.

The bank will pay more attention to the negative score even if the other score could balance the negative one. As a general rule, it would be best for both spouses to have a medium rating, rather than big discrepancies.

In Case of Identity Theft

There’s nothing worse than applying for a mortgage and finding out that someone has used your name, destroyed your credit score, made many debts and, in addition, had a high credit usage.

To avoid this, check your credit score regularly. As rare as it is, identity theft is hard to prove and it also takes time to sort out the situation.

If your spouse has fallen victim to this sort of crime, but you’ve already found the perfect home, applying for a mortgage on your own is a wise decision.

In Case of Excessive Debt

A high credit card usage is considered to be over 20% of the current loan you’ve taken. Applying for a mortgage when your spouse’s debt has a high-income ratio might come with a denied mortgage application.

If the loan is still approved, consider that you’ll have to deal with higher interest rates, so it might be best to choose to apply on your own.

If There Is No Credit Score

Let’s say that maybe a person has saved money, and never had to take on a loan. From the bank’s point of view, that individual presents a risky application. By not knowing anything about his/her finances and not having any proof that the applicant is trustworthy, the bank will be sceptical in approving the loan.

Your spouse’s non-existent credit history or a short one will certainly be detrimental when applying for a mortgage.

Start by checking both of your credit scores and then talk to a mortgage specialist to give you some advice. He/she will surely tell you if it’s best to apply together, or on your own.

Categories
Refinance and Refinancing

Why Should You Consider Refinancing Your Home Loan?

Short Term Loans

People take a home loan refinancing into consideration when they’re no longer satisfied with their actual home loan or when they want to make some house renovations.

Refinancing becomes a choice when your lending needs have changed or when your home loan is starting to pose difficulties.

  1. Home Loan Refinancing has lower interests rates

This is the main reason why Australians take into consideration refinancing their mortgage. The easiest way to figure out if it’s worth the trouble to switch your home loan is to calculate if the costs of the refinancing will be paid off in the next two years.

Interest rates and fees can build up, so don’t just look at the lower interest rate that comes with refinancing. Take into consideration all the fees implied in the process.

  1. It’s more compatible with your renovation project

Home loan refinancing brings benefits to homeowners who desire to invest in structural renovations that aren’t compatible with personal loans.

Refinancing allows you to use the equity in your property as collateral. This is an option only if the value of the house outpasses the cost of renovations.

Some home loans don’t offer the option for a construction loan, so you may just have to go into refinancing in order to find one that fits your needs.

  1. Consolidating debts is a good option

Home loan interests rates are lower, and this is why many people add their personal loan or car loan to their mortgage. Dividing the payments over the course of the next 25 to 30 years will ensure much smaller monthly payments, but raise the interest rates.

You could benefit from this option of refinancing if discipline and regular payments are something that you’re used to. You could add a personal loan to your house loan, but instead of paying it off for 25-30 years, choose to pay it over the course of the next five years. This will allow you to sort your personal debt faster and even save almost 75% of the interest rate that you would have spent by prolonging the payments to suit your house loan.

  1. Refinancing offers flexibility

If you’ve come to the point where a fixed rate isn’t your best alternative, and you want and actually can pay out the loan faster, then home loan refinancing is an alternative. Being able to pay according to your income will get you out of debt faster, and it also comes with the split facility, a redraw facility, and an offset account.

  1. When mortgage payments are too big

Sometimes, our finances can’t support the mortgage payments and we’re forced to look for an alternative that requires a smaller amount per month. Even though the interest rates could go higher, there are times when our budget isn’t able to cover the payments, so refinancing is in order.

Home loan refinancing comes with advantages and disadvantages, so before taking the step, see if it will suit your needs!

Categories
Home Loans

5 Ways to Leverage Your Home Equity

personal loans australia

Tapping a home equity is now more natural just like mowing the lawn. If you are a homeowner and you want to maximise your ownership of your property, you should realise that there are more than enough reasons to finally cash in on your home equity. You may use the money to get into viable financial activities that you surely would benefit from in the future.
Leveraging could be risky but only if you would use it to get into deeper financial pitfalls. You could possibly avoid any risk of leveraging your home equity by using it to increase or boost your personal wealth. Here are some suggestions on how you could effectively and successfully leverage your home equity.

Continue reading “5 Ways to Leverage Your Home Equity”
Categories
First Home Buyer

Top 5 Ways to Save for a Home Deposit

how to save for a deposit

House prices logically increase every year. It is not surprising that it gets more difficult for first time homebuyers to finally buy and own their own dwellings. If you are considering buying your own house for the first time, you should not despair. If you would be more strategic, you could surely find creative ways to save for the major purchase.

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First Home Buyer

First Home Buyers Being Priced Out

bad credit home loans

In recent times it has become even harder for Aussies to get their foot in the door of the property market. First home buyers are quickly being priced out of the market, as investors are snapping up properties right in the midst of a housing shortage.

It seems as though our buoyant economy and strong job prospects have spurred established home owners to invest in property or upgrade their homes.

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Bridging Finance

Bridging Finance

bridging finance

Home owners have been making the most of rising property prices.  Sydney, Melbourne, Brisbane and Adelaide all had significantly more properties up for auction than on the same weekend last year, with 1991 homes listed, which was up from 847 last year.

According to Australian Property Monitors, the total weekend auction revenue was up $208 million on the same time last year.

Auction clearance rates in Sydney reached 70.7% at the weekend, up 6.7 percentage points from the same weekend last year.  But Melbourne was by far the busiest city for auctions, with 1072 properties listed for auction, 75.5% of which were sold.

Australian Bridging Finance

If you are selling or have recently sold your property and are in need of a quick short term loan, you should consider bridging finance.  Bridging finance is a very popular way to receive funds and fast, while waiting for your property to settle. Bridging finance is commonly used to assist with the completion of purchasing a new home before settlement on an existing property takes place.

Bridging finance can also be used to access funds for your business, or simply to pay some bills.  Whatever the reason is, if you need a short term loan or cash advance, call us today.

We have our own in-house funding pool, which allows us to facilitate short term funds for a range of personal, business or investment needs. Our loans are hassle free, and approved quickly which sees our clients returning to us time and time again.

A short term loan through the Australian Lending Centre offers competitive interest rates, requires minimal financials and gets approved quickly.

To speak with a consultant today to learn how Bridging finance or a short term loan from the Australian Lending Centre could assist you call 1300 138 188 or simply fill out the enquiry form to your right.

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Refinance and Refinancing

Consumers Unhappy With Their Mortgage

refinance home loan

In the financial market today, competition among banks and lenders tends to run high to try and land clients. As the consumers are first pulled in by flashy mortgage offers and promises, once the initial honeymoon stage phases the consumers find something they are unhappy with.

In a recent report released by a professional in the industry, they claim about 47% of current mortgage holders are not satisfied with their current mortgage. The majority of the unhappy mortgage holders feel that changing their home loan will be too hard or cost too much in time and money.

Refinancing is the solution to the misconception that changing home loan providers will not improve their situation. Choosing to refinance your home loan is a great option to take advantage of lower interest rates or to source additional cash available from the equity in your home. As this is becoming a more well-known issue, providers are offering increasingly competitive rates and incentives to choose a refinancing product.

Australian Lending Centre has done the leg work and found some of the most competitive refinance products available on the market today, which ultimately will save you time and money as we’ve done the research for you.

Through the refinance process, your current home loan will be paid out in full and you may be able to also pay out additional loans or release some funds in your home loan for a project such as home renovations. The new home loan will often utilise a lower interest rate and also should provide you with a lower monthly repayment.

In addition to refinancing, Australian Lending Centre offers products such as debt consolidation that will allow you to control and eliminate your debt. Debt consolidation focuses on all the debts you have; a personal loan, credit cards, etc and combines them all into one lump sum loan. Similar to refinancing, it creates an easier loan to manage with one low interest rate and one monthly payment. As we have many lenders available, we are sure to provide you with excellent options.

If you are unhappy with your current mortgage or are drowning in debt repayments, contact Australian Lending Centre today on 1300 138 188. Our debt consolidation consultants will assist you in find the best option. Alternatively, complete the enquiry form on the right and a debt consultant will contact you shortly.