Other Financing

For most people, purchasing a home is a better financial decision than renting long term. We understand that with the high cost of real estate, saving for a deposit has never been harder.

Almost half of first home buyers get assistance from their parents to help with their deposit. Affectionately known as the bank of mum and dad, parents are able to contribute in a couple of different ways.

Through an informal cash loan (or gift). This can be done via your parents savings or refinancing their home loan and accessing cash this way. Along with your own savings, this will increase your deposit, reduce the amount you need to borrow and potentially eliminate the need for lender's mortgage insurance (LMI).

A security guarantee allows a family member to use equity from their own home (or holiday home) to provide additional financial security to your lender.

With both of these options, you will still need meet the lenders serviceability requirements. Meaning you will need to demonstrate to the lender that you can afford to make the repayments on your mortgage once you have taken care of your current ongoing expenses.

A variable-rate home loan means that your interest rate may increase or decrease at any time during your loan. This means that each time the Reserve Bank of Australia changes the official cash rate and/or your lender adjusts their variable home loan rate, your repayments will change.

Variable home loans often come with additional features available, like the ability to have an offset, a free (or low cost) redraw facility and allows for extra repayments.

You should be aware that as the interest rate may fluctuate over the life of your home loan it may make budgeting more challenging.

Not sure whether to go variable or fixed? Speak with one our home loan experts and they can assist you to decide based on your own financial situation.

Fixing the interest rate on your home loan can give you the peace of mind and make your budgeting easier. Typically, fixe terms last anywhere from 1 year to 5 years.

While having a fixed-rate loan offers a level of certainty, there are a few things to consider if you're looking at this option for your home loan. There may be additional charges, and you may have less flexibility to make additional repayments and redraw may not be allowed.

You should also consider that the interest rate may be higher than a variable rate and if interest rates go down, you are locked into the fixed period.

If you think that a fixed rate home loan is too restrictive, a variable or split loan may be a better option for you.

It's also important to be mindful of revert rates. When your fixed period ends, the rate will revert to the current variable rate and you will need to be aware how this will affect your budget.

Applying and having pre-approval before your start your looking for your home is one way to be prepared and lets you know your budget ahead of time.

Also known as indicative approval, approval-in-principle, or conditional approval, having pre-approval lets real estate agents and vendors know you are serious.

While pre-approval is not an absolute guarantee that your mortgage will be approved, it gives you a realistic indication of how much you can afford, based on your current financial position and should allow for a shorter approval time as most of the work is done.

Be aware that not all pre-approvals are the same. You need to complete a full assessment of your financial position to have the best indication that your loan will be approved when you find your dream home.

Just remember - never sign an unconditional contract. Even with pre-approval, you should always include a finance clause.

Lastly, pre-approved loans are valid for up to 3 months, so don't apply too early but you also have time to make the right decision and find your dream home.

Whether buying your first investment or you are a seasoned property investor, Finance Brokers NSW can help you build your property portfolio.

Investing in property is a great opportunity to build your long-term wealth however, it is essential to understand your borrowing power and make suitable choices to help you grow and diversify your portfolio.

When purchasing an investment property you won't always need a cash deposit; you may be able to use the equity in your existing property. Equity is the difference between the current market value of your home less the amount of money you still owe.

It is important, to know your risks. Through our personal and industry experience, our mortgage brokers will work with you to help you fully understand what is involved.

These days, more and more Australian's are working for themselves. Unfortunately, that can mean you may need to jump through even more hoops when proving your income and your businesses cash flow.

While the guidelines differ between lenders, most mortgage lenders require proof of at least two years of steady self-employment. However, some lenders may still consider your application favourably if you have just one year of self-employment but can prove a two-year history in a similar line of work.

Thankfully, Finance Brokers NSW have years of experience arranging loans for self-employed clients. We understand what it's like to be self-employed and can tailor a loan arrangement to suit your needs and fit your lifestyle.

A reverse mortgage allows those on a pension or fixed income the opportunity to borrow money using the equity in their home as security. Unlike a standard loan, there are no repayments.

You will still own your home and can continue to live there for as long as you wish. The loan, including interest, fees and charges will be payable when you or your estate sell your property.

The amount you can borrow depends on your age. Generally if you are 55-60 you can borrow 15-20% of the value of your home less any money still owing. The amount generally increases by 1% for every year over 60. Funds can be taken as a lump sum, line of credit or regular payment to supplement your income.

Interest on a reverse mortgage is calculated daily and charged monthly. As your are not making repayments, the interest costs will continue to grow and reduce the equity in your home. The longer you have the loan, the more the equity in your home will reduce.

It is also important to note that the interest rate on a reverse mortgage is likely to be higher than a standard home loan and, if it calculated at a variable rate, any changes to the interest rate will impact the amount of interest you pay.

Moneysmart.gov.au have a useful reverse mortgage calculator which you may find helpful.

Before deciding on a reverse mortgage, there is a lot you should consider and we strongly recommend you seek legal and/or financial advice as well as talking through your options with your family.

Make an appointment to speak with one of reverse mortgage specialists and they will be happy to discuss your financial options.

When purchasing a home, it's not just the purchase price that you need to consider. There are other associated fees and expenses to consider. Below is a summary of costs added you need to consider:

• Stamp duty
• Property valuation
• Legal/Solicitor fees
• Registration transfer
• Loan establishment
• Mortgage insurance (if applicable)

For first home buyers, there are state and federal government grants available that may help with some of these additional costs.

Once the loan has settled, there are other ongoing fees that you may need to consider when working out your budget. Depending on on the property itself, these charges will differ, but it’s essential to consider the below when budgeting:

• Council rates
• Water rates
• Land tax
• Body corporate fees (if applicable)
• Home and contents insurance
• Maintenance costs

We are certainly not trying to put you off from purchasing a home but we are firm believers in your loan working for you, not you working for your loan. That’s why at Finance Brokers, we consider all of these expenses when assisting you to ensure your financial journey is a comfortable one.

Many business owners dream of owning their workshop, warehouse, retail space, professional offices or commercially zones vacant land - and a commercial property loan will help you to achieve this goal.

We have extensive experience in obtaining commercial property. With interest only and principal and interest loan options available, our connections and relationships with our panel of lenders means we can offer excellent commercial finance options - some you may not have even considered.

For small business owners looking for short term capital , an unsecured business loan could be suitable.

Unsecured business loans are generally for small loan amounts, shorter terms and as the name suggests, you don't require collateral, such as a physical assets or property, to secure the loan. The interest rate will generally be higher and the term of the loan shorter.

Before applying for a loan, speak with one our business specialists. They will work to gain a full understanding of your businesses needs and find your the most appropriate finance option to get your business where you want to go.

As the name suggests, a secured loan means that you have an asset (or collateral) to secure or support your loan – such as property, a vehicle, accounts receivable, or inventory. When using the property as security, the bank holds the title until the loan is repaid.

Secured loans are usually for higher amounts, offering longer payment terms and lower interest rates. Offering collateral provides the lenders with more assurances that you can repay on time and if repayments are not made, the bank can sell the asset to recoup the funds.

Applying for a secured loan is more likely to be successful if it is more established, particularly with value assets and a strong credit history. If you don’t think your business will meet the stricter requirements of a secured loan, you might want to consider an unsecured loan.

When you are looking to buy or upgrade your car, motorbike or even a new boat or caravan, we understand it can get a little confusing when there are so many different loan options.

Should you go secured or unsecured or should you consider refinancing and using the equity in your existing home loan? By speaking with one of our experienced brokers, we will work with you to understand your circumstances, make the comparisons and help find the best option to meet your needs.

It's important to talk to us before going to the dealership as we can often beat the dealership's interest rate which means more cash in your pocket - exactly where it should be.

A self managed super fund (SMSF) differs from a normal superannuation fund as the members of the fund are normally also the trustees. They have control over their retirement funds and can make important decisions on where their funds are invested.

A SMSF gives members the opportunity to invest in residential and commercial property as well as the more traditional superannuation approach of investing in cash, term deposits and shares.

A SMSF is not just for those who are self-employed. To find out more, check out Finance Brokers Tasmania's blog What is a SMSF? and then call us for a chat.

Whether you have conservative or grand plans for your home, it can often be hard to save whilst making your home repayments.

Taking out a personal loan to renovate and improve the value of your home is a much more cost-effective solution than using your credit card.

Your loan details will change depending on how much you need to borrow, but once you're approved, you will be sent the agreed amount in full, meaning you can get started asap!

If you've had your home loan for a few years, it may also be beneficial to get it revalued, as you may be able to borrow from the equity of your existing home loan instead.

You have identified an investment opportunity with high return on investment and low risk but you don't have the cash. You could consider taking out an investment loan.

Known as gearing or leverage, borrowing to invest can be a risky business. You have the opportunity to receive bigger returns when the markets go up, but you'll have larger losses if the markets fall as you will still need to repay the loan and interest.

With our extensive experience in the finance industry, we can provide solid advice on whether an investment loan is appropriate for your situation.

It's important to remember that there are a number of options when it comes to financing a vehicle.

A car lease is a financial arrangement whereby a lender purchases a vehicle on behalf of a customer. The lender maintains ownership of the vehicle and the customer makes regular payments for an agreed term.

When the lease is up, the customer may have the opportunity to purchase the vehicle by paying the 'residual value' of the vehicle to the lender or they can enter into a new lease.

Just like renting a house, leasing a car does not grant you complete ownership, and there may even be some restrictions around its use.

If you are not sure whether a car lease, chattel mortgage or a personal loan is the right option for you, talk to one of our helpful brokers.

Personal loans are generally taken out for large ticket items such as a car, boat, motorbike or caravan. You could also use the procees to fund a small home renovation or to pay off and combine credit cards and consolidate debts to help you manage multiple repayments.

Personal loans can be a helpful tool when needed. They are often less expensive than credit cards and other forms of credit. Like a home loan, you borrow a set amount of money and repay it in instalments over an agreed period.

Having multiple debts and repayments can be hard to manage. Consolidating your debt into one manageable weekly, fortnightly, or monthly repayment will help you take back control of your finances and could save you time and money.

While a personal loan makes a lot of sense for most people, it's not the right move for everyone. Talk to one our specialists and we can help you make the right decision for your financial circumstances.