Mobile Mortgages

If you are struggling to make the monthly payments on your multiple debts and bills, don’t panic! There are many others like you and the solution can be found right here.
An increasingly growing number of people are taking control of their finances through a debt consolidation loan. The best time to act is NOW!

What is a Debt Consolodation Loan?

Debt consolidation is taking out a single loan with one provider to pay off many other outstanding loans, credit cards and other debts… to make your life easier.

How can a Consolidation Loan Help?

A consolidation loan can increase your weekly cash flow, helping you can get back on your feet again. Combining your debts into one easy consolidation loan also simplifies your financial situation – you have just one weekly or monthly bill to pay and keep track of!

Variable home loans have the flexibility to fit with your lifestyle. They give you the option to make lump-sum repayments, or repay the loan completely, without having to worry about early repayment charges. They’re ideal when interest rates are falling. Plus, you can change to a fixed home loan whenever you choose.

Your home loan , for most people, is the largest financial commitment you will ever make.
Rising or falling interest rates can have a huge impact on how much you pay back each month and how much you pay in interest over the life of the loan, which is really the most important part when considering your home loan choices.

By switching loans you could save yourself thousands of dollars in interest or perhaps you would like to take advantage of features offered by another lender or loan.

Before you decide to refinance your current home loan, work out how much it will cost you to switch to the new home loan.

Depending on your current interest rate and any terms you may have signed for when taking out the loan your current lender might charge you fees to exit your current loan, and a new lender will charge you fees to take out the new loan.

Work out whether reducing your interest rate with a new loan outweighs the costs of switching from your existing one. The lower the exit and start-up fees, the more you stand to gain by switching.

If the fees are high it may not be worth switching or may be better to wait and switch later. Ask yourself: ‘Is the cost of switching worth the potential interest rate saving.

Drop us a line if you would like to know just how much money you could save with a new home loan.

Last week an application for a long term self-employed borrower with clean credit, a strong deposit and very good bank account conduct was presented to one of our specialist lenders. They did not require GST returns as the applicant was not in a GST registered profession.

They approved a $450,000 mortgage over a residential property being purchased for $650,000 (RV at $640,000 = 70.31% LVR) using the new No Financials 75 product.

The loan was approved 9 October and will settle on 16 October.

What is your property worth?

If you fail to meet your interest payments, your property provides the bank with security. They are allowed to take control of it and sell it to recover the money they leant you in the first place, plus any interest you have failed to pay.

The bank therefore needs to know that you property is worth more than the amount they are lending you. Otherwise they might sell it and not get all their money back.

If the amount you want to borrow is small compared to the value of your property, the bank may not need proof of the value of the property. As the amount gets bigger in comparison to the property’s value, the bank may ask for a rates notice – which gives the council valuation for your property. This is held to be a general guide to the property’s value, but not strictly accurate (as it may be up to 3 years old).

If the amount is large in comparison to the value of the property, banks will typically require a valuation to be done by a registered valuer. A valuation more than six months old is held to be outdated. One that is three to six months old may be accepted, or may also be deemed outdated depending upon the lender

The most common mortgage types are ‘Principal and Interest’ and ‘Interest Only.’

Principal and Interest is a loan where you are making payments of the interest for the amount borrowed, plus repaying small amounts of the amount itself (the principal). Therefore the amount of money you owe slowly reduces.

Interest Only is a loan where the only payments you are making are for the interest itself. The amount of money you owe remains unchanged.