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The First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme is a new federal government initiative that commenced on 1 January 2020. Up to 10,000 eligible first home buyers in Australia can apply for the Scheme each year. The benefits of the First Home Loan Deposit Scheme It helps eligible first home buyers to buy their first home sooner by providing them with a government-guaranteed loan as part of their home loan deposit. It removes the need for lenders’ mortgage insurance (LMI) on home loans. Most lenders will charge borrowers LMI if their home loan deposit is less than 20%. The cost of LMI…
How Lenders Assess Investment Property Loans
If you’re buying an investment property, it’s important to understand that lenders have stricter loan application criteria that you need to meet. That’s because lenders usually perceive investment properties as being higher risk, especially if you’ll be relying on income from tenants to make your loan repayments. There’s always a risk that any investment property you buy may be untenanted for a length of time. If it ever is, you still need to be able to make your loan repayments. Loan-to-value ratio (LVR) The policies of different lenders vary, but in general, they usually have a lower maximum loan-to-value ratio…
How do bridging loans work?
Bridging loans A bridging loan is a short-term finance to allow you to buy a new property while you’re waiting to sell an existing one. Bridging loans are usually interest-only finance for up to six months if you’re buying an established home, or up to a year if you’re building. How do bridging loans work? A bridging loan provides you with the funds you need to buy your new property. It’s a second loan on top of your mortgage on your existing property. When you sell your existing property, your first mortgage is paid out and the total amount you…
5 Stages of Home Construction and Your Loan Impact
It is wonderful to design and build your home the way you always imagined it to be. But, it can also be long and expensive–that’s why many people are unable to pay the construction cost in advance. Here, a normal mortgage may not meet your needs, and hence, a construction loan comes into the picture. However, most lenders are quite particular about construction loans as you are asking money for something that does not exist yet. Moreover, there is less certainty of the property attracting a good resale price after completion. If anything goes wrong, like the builder doing a…
5 Common Strata Title Property Problems and Solutions
Hello folks! If you have recently shifted to a strata community or are planning to do so, you are about to welcome few changes in your life. Being a resident of a strata title property can prove to be beneficial in certain ways. For example, you do not need to take full responsibility for maintenance of your property. The burden of maintenance is relieved from your shoulders to the strata corporation by paying a certain strata fees for upkeep of the community property. Moreover, it costs much less in terms of investment when you buy such properties rather than a…
Seven Tips for Purchasing a Home Australia
Going for A Property Purchase Is Never An Easy Task. It is always going to require thorough preparation, that too, in advance. It will also involve huge investment, not just in terms of money but also in terms of time and effort. Before stepping into the real estate market, you need to understand whether you are really ready to go for it mentally and financially. Once you have figured that out, you should be aware of all the aspects to consider. This will help you navigate smoothly through the home buying process which can otherwise become quite stressful. To begin with, Get…
7 Renting Nightmares and How to Overcome Them
Buying a property doesn’t always leave you getting to stay in it. Sometimes, we buy it with the intention of investment and renting it out meanwhile. However easy this sounds, all house owners do wonder why their property isn’t attracting a suitable renter or at a price that may help them pay maintenance costs of their investment. While it can be a lot of things related directly to their property, only a few homeowners consider that something outside that perimeter might be bothering the potential renters. And as a smart homeowner, you must know how to iron out those wrinkles.…
What To Consider While Buying Property Off The Plan
In simple terms, Buying A Property off the plan means to buy a property that is yet to be constructed. It involves a person entering into a legal contract to purchase a property before it reaches the final stage of its development. Both investors and home buyers go for the an off the plan purchase, but for different reasons. Buying property off the plan may seem like a tricky option to consider. After all, you are just relying on the promise made by the seller that the property will be developed according to a certain plan on paper. You simply have access…
How To Buy An Investment Property With Low Deposit
Saving money for a deposit to buy investment property is a daunting task. Ask anyone with the experience of buying a home and they will tell you that when they purchased their First Investment Property, it felt like they were running after a speeding train. The more they saved, the more the property prices increased. Today too, many investors miss the chance of getting their hands on an investment property because of not having the required deposit amount. In the current real estate market scenario, there are tighter lending regulations, wherein lenders require that you as investors should contribute a certain…
The Most Popular Time To Buy A Home
There are a lot of factors that come into play while buying a property starting from personal and financial concerns to the condition of the real estate market. Buying A Home Is A Big Decision and you need to be sure that you make the right choice. Apart from finding the right property, the next important thing to consider is when to buy. Going with the common perception, people usually prefer to buy during the spring season. Spring is a bright phase of the year when people want to step into new beginnings. The bright sunshine and cheerful days of the spring season…
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