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Home Loans Bridging Finance

Top Tips for Buying Property at an 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.

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Debt Consolidation Bad Credit Loans Home Loans

10 Reasons Your Home Loan Was Denied

Most people believe a good life is having that killer home and a stable job. But what happens when you try to apply for a loan and get rejected?  It can become increasingly disheartening to hear the same 9 words –  “we are sorry your loan application was denied.” In this article, we dig deep and reveal the reasons why your home loan was denied.

Understanding the reason behind your loan denial is a valuable learning experience. This reason helps you to pinpoint the areas of your financial life that need to be polished. You can always improve on this and reapply for the funding.

 Let’s dive right into the ten reasons why your home loan was denied

Poor Credit History

Credit history is simply a record of a borrower on debt repayment from several sources, including banks, collection agencies, or credit card companies. Potential creditors such as the Australian Lending Centre and other mortgage lenders use your credit report or information to decide whether they will give or deny you a loan. Your credit information is the right way for lenders to tell whether you are a risky investment or not. Having a poor credit history will deny you a home loan.

If you check your credit score and you find that you have defaults, blackmarks or court judgments, it is highly recommended that you remove these otherwise you will struggle to secure funding. There are specialised credit repair agencies that can assess your credit situation and work towards removing these negative listings.

Insufficient Income/Asset Documentation

One of the big reasons why your home loan application may be denied is due to your income or debt ratio. Your income is an excellent measure of whether you can or cannot afford the home. ALC is likely to enquire about your assets and, more specifically, your liquid assets. They’ll want to identify what you have saved to raise a down payment, pay closing costs, and make monthly loan payments once you close your loan.

You have to make sure that you have sufficient income or assets before you apply for a home loan. It is essential to have your resources in a certified account, at least two months earlier, to applying for a home loan. It is because banks and lenders regularly ask for your two latest bank statements. Also, make sure you verify your assets for a down payment, closing costs, and reserves.

Down Payment is Too Low

Typically when you buy expensive things on credit, you need to make a down payment. The down payment amount usually covers a portion of the market price of the home. Lenders look at the upfront amount as an investment in their future home. A low upfront may not put their minds at ease. To certify your home loan application, consider having a more significant down payment, or else your home loan will be declined.

Problems with the Property

Sometimes you are not the cause of a home loan denial. It is not always your fault. Your home loan denial may be due to problems with the property you want to purchase. Therefore before you apply a loan for a particular home, do thorough investigation and research about the property.

Inadequate Employment History

Your employment history is essential when it comes to a home loan approval. You should have a consistent job history when applying for a mortgage home loan. Most lenders will consider two years of steady employment history to process your loan. By doing so, they only want to be assured that you can hold on to a job long enough to repay the debt. Make sure to keep all your payslips and any tax information. You will want to make the process as easy as possible for lenders.

Inaccurate documentation

Home loan lenders want to know everything about you, and therefore, leaving out any information may raise the alarm. It is always good to provide all the required details and fill out all the sections on application forms.

Reduced Debt to Income (DTI) Ratio

Most lenders look at DTI Ratio before awarding a home loan. DTI Ratio is simply a sum of your monthly payments divided by your monthly income multiplied by 100%. You should always aim at 45% and below.

Unpaid Taxes

Taxes are significant to a country’s income. A due fee is another debt that can haunt you. It can lead to a robust rejection of your home loan application. Make sure to work through old debts before applying for a home loan.

You Asked for Unreasonably Low Loan

Most lenders give loans based on how much interest they will make. The lower the investment, the lower the benefit they will gain. Therefore, you should understand that lenders make money from interests that are higher on high loans than small loans. They factor their profit against their risk, so it is unlikely for them to approve a low loan request.

Bulky transactions

Just like receiving huge money, large transactions may raise red flags when applying for a loan. You should not make large transactions as you near a home loan application period. Stick to low operations and always be ready to explain the purpose of the transactions. Valid documents should accompany this.

Final Thoughts

Now that you have learned and you are well aware of the reasons that can lead to your home loan denial, you only need to rectify what is dragging you behind.  Make sure that all the above are taken care of before requesting a home loan, or else it can get rejected. If your loan is denied, remember it is not the end. Focus on building positive financial habits that will help you increase the likelihood of securing a loan.

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Mortgage

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

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.

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Refinance and Refinancing

Why Should You Consider Refinancing Your Home Loan?

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 Interest Rates

Are You a Victim of High Mortgage Interest Rates?

In recent years, many of us became victims of high mortgage interest rates without even realising. This problem affects mostly the home loans because their term is the longest. But how can you know if you are in such a situation, too?

High Mortgage Interest Rates – Are you a victim?

Verify your current loan

In the case of home loans, the term is rarely shorter than 25 years. Most probably, when you have signed for the loan, you have checked it thoroughly and chosen what was the best for you at that moment. As the years have passed, the circumstances may have changed. For example, if you have opted for some flexible features, such as an offset account that you no longer need, it would be a good idea to downgrade your loan to a basic one now.

If, after verifying your current loan, you decide that you are a victim of high mortgage interest rates, you may consider getting a better rate from another provider.

Check the refinancing costs

As you decided to switch to a newer loan or provider, you may be so excited about the savings you can make that you simply forget about the refinancing costs. Don’t rush to conclude that your mortgage interest rates are the worst on the market and you can completely change the situation by changing lenders.

In most of the cases, calculating the refinancing costs will discourage you from making a change, as they are higher than the savings. Check to see if you have paid the lender the mortgage insurance and establish what are its terms and conditions, as well as the discharge fee. Also, calculate the costs of the application and valuations fees if you opt for a new lender.

Analyse the options

If, after calculating the refinancing costs, you still consider that you need to refinance, analyse all the options before making a decision so that you avoid being a victim of high mortgage interest rates once again.

This analysis should include a comparison of the loan types, in order to decide if a variable, split or fixed rate loan is suitable for you. If you don’t need any flexible features, don’t opt for them, because your mortgage rate will increase.

Another important aspect of this evaluation is to check the potential providers. Find out which of them have the best deals, who is reliable or not, etc. Moreover, read the contract carefully and don’t be afraid to ask all the questions you have before signing for a new loan.

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Home Loans

Fast Track Your Mortgage Repayment

Did you recently check the present status of your home loan and the progress you are making? If not, it is about time you did that. Why? Tracking your mortgage could genuinely help you to save a great amount of money while, at the same time, you can make your mortgage repayment increasingly faster.

This way, the thought of financial freedom can become a reality sooner than you think. Consider the following tips.

Fast Track Your Mortgage Repayment

  • Make smaller payments on a regular basis

One simple way of fast tracking your mortgage repayment is by dividing your loan into smaller amounts of money that you pay more often, on a regular basis. While this will help you to pay off your loan faster, it will also contribute to diminishing the lifespan of the loan, as well as the amount of interest you pay.

Let’s say that you make your mortgage repayment once per month. Instead, you should think of making fortnightly repayments. If you pay $2400 per month, divide this sum in half and, instead, pay $1200 fortnightly. This means that instead of paying $31,200 per year, you will only pay $28,800.

  • Increase the sum you typically pay

Believe it or not, by adding as little as an extra $10 to the amount you usually pay on a regular basis as mortgage repayment, you can genuinely reduce the lifespan of your loan. A good idea would be directing your tax returns, bonuses and gifts into your mortgage. It takes discipline and willpower but it is a possibility you should take advantage of.

  • Don’t diminish mortgage repayments when interest rate drops

In the light situation in which the interest rate is smaller than normal, and, as a result, your mortgage repayments are diminished, don’t fall into the trap of paying less. If you continue paying the same sum of money, you will manage to make considerable progress with your loan, decreasing the amount of interest.

  • Opt for an offset account

If it’s a viable possibility, consider opting for an offset account. A mortgage offset account is linked to your loan. The monthly interest is calculated by subtracting from your loan the sum that you have in your offset account. You can consider directing your savings into this account. The main advantage of an offset account is that it will save interest while you can benefit from accessing your savings account as well.

  • Consider a better deal

And last, but not least, your mortgage should meet your individual requirements and financial situation. If you feel overwhelmed by your mortgage repayments, consider talking to your broker about changing your loan. You can talk about making additional repayments, or look into refinancing options.

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Bad Credit Loans

Avoiding Mortgage Defaults with Bad Credit Personal Loans

Sydney and Melbourne both have been marked to have a greater chance of mortgage defaults. Both capitals are noted to have been using a large percentage of their household income to pay off their mortgages and this indicates that they may be in trouble of having defaults on their mortgage. Moody’s Australian Housing Affordability Measure reported that, as of March 2015, families with income earners (minimum of two) require an average of 27 per cent on their household income to make repayments on home loans; this is the same as the previous year. However, these two capital cities have their housing affordability measure increase from 32.8% to 35.1. Learn how to get bad credit personal loans to avoid mortgage defaults.

What does this mean? The report indicates a “credit negative” for new housing loans in these two Australian cities. Mortgages at this time are less affordable and when that is the case the chances of delinquent payments and worse defaults are noticeably higher. The interest rates can also increase dramatically and the current low interest rate that Aussies are enjoying lately will be quickly replaced with a much higher rate, this again can result to increased number of mortgage defaults. If that happens loan holders can still have an ally in bad credit personal loans to help them avoid getting defaults. A lot of people who have bad credit history will benefit well from these unsecured loans, provided they are able to find the right company to connect with.

Time for Bad Credit Personal Loans

How can bad credit personal loans help someone who is in Sydney or Melbourne? Actually bad credit personal loans can be accessed all throughout Australia with the right type of lenders. So if you are outside of these two key cities you can still find a company that can help you secure this loan. What exactly is a bad credit personal loan? It is an unsecured loan that can be facilitated by a company that assists people who have bad credit history. If you are one of those people who have bad credit history then you have experienced having been declined for credit. And if you are in need of refinancing so as not to default on your mortgage then an unsecured personal loan is the way out. There are several companies across Australia that can help you get a loan to re-finance your home loan or even bad credit personal loans to keep you from defaulting on your mortgage.

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First Home Buyer News

Should you access superannuation for buying a house?

It is every young family’s dream to buy a house to make into a home but with rising property prices, it is becoming more difficult for first home buyers to enter the market. A young family might not have much in the way of savings and it can seem impossible to come up with the minimum amount needed for a deposit on a mortgage. The Australian government, under Treasurer Joe Hockey’s suggestion, is considering letting people access their superannuation account for the purpose of putting that money towards buying a house.

Superannuation for a new home

The retirement funds are generally not allowed to be accessed until a person is the age of 60 but the federal government is taking a lead from other countries such as Switzerland, Canada and Singapore and thinking of letting people dip into their retirement funds early to invest into a home. The idea has gotten a lot of backlash from the opposition government and it probably should. Although the money is for that person to spend however they want, it also serves as a safety net to make sure that people can afford their needs when they get older. Instead of having the capital being held by the government at a secure interest rate and knowing it will be there in the future, it might soon be possible to take a risk and use some of that money in the real estate market.

The proposal hopes to have several positive and negative effects. Getting young families into homes is a major goal of the current administration. But the goal also includes letting people become more self-reliant and less dependent on the superannuation scheme. The 5% taken out of Australians’ pay cheques is usually something that all Australians are looking forward to one day. However there is a possibility that many will not have as much as they might have had when it comes time to enjoy their golden years if this proposal gets approved.

The access to retirement funds might just fuel home prices higher and have a muted effect on making homes more affordable. Any large decision like buying a home is already big enough and maybe it is not the best decision to risk your superannuation funds on the volatile property market. There are many ways to get the loans needed for a mortgage and with the current low interest rates it could be wiser to leave your superannuation alone and buy a house the old fashioned way.

The old fashioned way being; acquiring a home loan or a debt consolidation loan from a trusted bank or a trusted lender, usually at a more competitive rate. Speak to a financial consultant about the right type of loan for you and your family to buy a new home.

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Interest Rates

4 Reasons Why the Australian Reserve Bank has not Cut Interest Rates

Australian Reserve Bank has not Cut Interest Rates

The Reserve Bank of Australia (RBA) has slashed interest rates to 3%, a record low, in November 2011. For the last 15 months, it has refused to increase or further cut it. The central bank has decided to leave the rates unchanged during its first policy meeting for this year, which was held in the first week of February. As it seems, the monetary policy of the country keeps the mode on a wait-and-see program.

Interest rates were last trimmed down to help spur possible growth after the then decade-long mining boom had indicated clear signs of losing its momentum. The economy somehow slowed in the entire 2012 because export demand for raw materials coming from the country eased.

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Home Loans

4 Things to Do to Avoid Defaulting on Your Mortgage Repayment

If you have a current mortgage and you suddenly lost your job or your source of income, you surely are in trouble. Aside from making ends meet for your daily necessities, you have to find ways to continue repaying your home loan. That will be a big challenge especially if you are certain you cannot afford to shoulder your monthly mortgage repayment anymore.

It is a must to avoid falling into a default. Aside from possibly being evicted from your own home, you will not like its long-term effect on your credit history. Try to prevent it from happening. Here are four effective ways to do so.

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Bad Credit Loans

5 Ways to Increase Your Chances of Getting Loans Approved With Bad Credit

It will inevitably be more difficult for you to obtain a loan if you are suffering from bad credit. As you explore your options, you will realise that your choices are limited. Borrowing can also get more expensive. If you are struggling to get loans approved with bad credit then you’ll be pleased to know there are bad credit loan solutions available.

These days, it can still be possible for people with poor credit to get approval for their loan applications. Here are five ways that can help you increase your chance of getting loans approved with bad credit.

The Process To Get Loans Approved With Bad Credit

1. Apply for a loan from a credit union.
While most lenders use credit scores as a basis for approving loan applications, credit unions will be more sympathetic and considerate to lend money even if you have poor credit. Such organisations derive money from individuals and other investors, not from banks. But those are still profit groups. Credit unions, no matter how compassionate, will still aim not to lose money. Those can set specific criteria to approve bad credit loans.

2. Use security or collateral.
This really can give you the upper hand when it comes to getting loans approved with bad credit. Having an asset like your home, land, car, or boat can be an advantage. You can use any of those as collateral to secure your loan. This is because if you are securing your loan against a physical asset, then lenders are more willing to take a risk. Most loan providers will be more than willing to provide you with loans and implement competitive or lower interest rates. However, the loan amount may directly depend on the equity or valuation of the collateral. Just strive harder not to fall into default as it may lead to repossession of the property.

3. Find a guarantor or co-signer.
You can instantly increase your chance of getting a loan approval even if you have poor credit if you can have a guarantor or co-signer, who has a good credit score and a constant source of income. You may ask your family members, relatives, or close friends to do the favour. Just be aware that if you will default on the loan, your co-signer will be forced to pay the loan amount on your behalf. Convince your guarantor that you have no intention to put him/her into a compromising situation.

4. Try to correct your credit report.
If you have doubt about your credit score, then did you know you can check it for free? There can be significant errors that are currently affecting your credit rating. Poor credit may be due to previous unpaid bills that had already been settled. Or your record may have included loans or delinquencies that you really did not incur. Credit rating agencies may also commit errors in reporting. Don’t worry because they are also open to correcting their own mistakes.

5. Declare or present your savings account.
There is no need to have huge savings. Even with small savings, you can possibly prove to loan providers that you are financially stable and you are on track to rebuild or improve your credit record. This can also serve as an assurance that you will have funds to repay your loan if ever you experience a shortage on your regular or fixed income.

By following these 5 simple tips, you can boost your chances of getting loans approved with bad credit. It’s a lot easier than you might think, but if you have any questions then we’ll be happy to help. You contact a specialist here.

Categories
Financial Planning

How Can Financial Distress Impact Your Health

The stress caused by the economic downturns and financial shortcomings can literally make you sick. This is quite logical. In the recent global economic downturn, many evidences were recorded linking financial distress to various health conditions. That link is not surprising.

In 2005, a research was conducted in the US to identify possible health implications of financial distress. That study explored specific health effects that are often and logically associated with financial problems. It surveyed random individuals from across the country.

The results showed that there are various perceived possible effects of financial stress on both physical and mental health. Financial problems and poor health are associated. Stress is the main health impact of job loss, piling debts, loan defaults, and budget shortages. From there, many other health conditions can possibly ensue.

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Bridging Finance

How a Bridging Loan can Help You Secure the Property of Your Dreams

A bridging loan is a temporary loan that is intended to ‘bridge the gap’ that could exist when a homeowner is still selling his house and when he is set to take another mortgage. In other words, when a homebuyer is purchasing a new home before completely selling his current house, the bridge loan can be a source of cash needed to pay the down payment of the new home purchase.

Bridging loans are supposed to use the buyer’s existing house as security. The facility can provide sufficient amount of money to fund the down payment, which is a requirement to buy and relocate to the new move-up home. There is doubt that a bridging loan can help you finally buy your dream house.

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Financial Planning

Calculating your Net Worth

Your net worth could be an effective indicator of your financial condition. It could measure your annual progress financially. In general, the net worth is the overall sum of all your current assets or properties minus the sum of all your liabilities. This way, you could instantly and clearly see if your assets are still bigger compared to your liabilities, which is the ideal scenario.

Calculate your net worth to determine your current personal financial performance. Do not worry if you think you would obtain a negative figure. Instead, be positive about it and set effective goals to emerge out from the situation. It would surely be helpful and more advantageous if you knew your present financial condition. Furthermore, computing net worth is not as difficult as you think it is.

Categories
Interest Rates

Australian Economy is Growing – Interest Rate Impact

The Australian economy grew 1.2% in the second quarter of fiscal year 2011. That growth exceeded expectations of a 1% economic expansion. This surprised numerous economic analysts and market observers, who mostly predicted a slower growth in the period. According to some experts, the economic boost could be attributed to stronger performance of several sectors aside from mining, which for quite some time has been solely driving growth of national economy.

Investors look at this news as an additional positive development. A better performing Australian economy could translate to better profitability. Most company shares in the market have been rising following the announcement of the better-than-expected economic growth. The local currency is also gaining strength against the dollar, which is ideal for many businesses, especially those that require importation of raw materials. But what is the impact of this news to consumers, particularly to the interest rates?

Categories
Home Loans

Is It a Good Time to Buy Property in Australia?

The Australian property market is not expected to drop, but it is projected to remain steady all throughout this year (2011). Price tags are set to remain within their current levels but would more likely grow moderately in the next two years. This is the unanimous forecast of numerous industry analysts and observers in the country.

Housing market experts note that local property prices could remain flat or slightly rise within the coming months. However, they assert that homebuyers need not worry. Price increases across the country are still low when compared to housing costs in most other developed countries. Thus, it is still the best time to find and buy Australian properties.

Categories
Home Loans

Affordable Homes in Australia

A recent property report has shown that home affordability is better now than a year ago. The Housing Industry Association and Commonwealth Bank First Home Buyer Affordability index was 41% higher than in the corresponding period a year ago.

However the dream of home ownership has become tougher over the past couple of months with the index declining by 5.1% to 152.5 points in the June quarter from 161 index points in the March quarter.

Categories
Home Loans

Share a Home Loan

If you can’t afford to purchase a home on your own, why not consider getting a home loan with close friends or family.

This trend has become increasing popular as many people are trying to take advantage of the first home owners grant boost before it reduces in October, and then cuts out in December.

In today’s economic times, borrowing has changed – most lenders now want to see deposits and a genuine savings history. One way to get into the property market before the boost runs out is to join deposits with a friend or relative.

Categories
Home Loans

NSW Tops Home Loan Default List

As the unemployment rate in Australia continues to rise, up to 1 in 16 homeowners are defaulting on their home loans. Of the top 20 postcodes where mortgages are more than one month in arrears, 19 postcodes are in NSW, data obtained by The Daily Telegraph reveals.

An analysis by the UWS’s Urban Research Centre has found that areas along the M4, Windsor Rd and Canterbury Rd, as well as the Central Coast, are feeling the impact of the alarming recession. The hardest hit is the area around Fairfield and Liverpool, where the latest figures show that the unemployment rate has jumped to 10.5% (the highest it has been since 2001).

The top areas in NSW for defaulting on home loans is Nelson Bay, followed by Raymond Terrace, Katoomba, Greenacre, Guilford, Fairfield, Cessnock and St Marys.

Categories
Debt Management

Home Loan Stress reduced by Stimulus

In April 2009 mortgage stress dropped by 2.8% indicating that the recent Government stimulus payments were most likely used towards home loans.

The total number of households struggling with home loan repayments fell to 568,000 compared with a peak of 900,000 in August 2008.

The stimulus payments have had a noteworthy and positive impact for those who are finding it difficult to make payments on their home loans. However the positive outcome is only temporary and by the end of the year, we may see similar circumstances to those prior to the stimulus packages, especially as we see unemployment rates continuing to rise. Another 400,000 homes could be in severe stress if unemployment reaches 7.5% by the end of 2009.

Categories
First Home Buyer

First Home Buyers Being Priced Out

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.

Categories
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.