Latest News Items
Loans for Investing
There are loans available specific to investors and it is important that you do the proper research to ensure that your home loan is the right one for you and your needs. An increase in property prices is ideal for investors; it will not only mean an increased profit when you decide to sell your property but it also allows for rental increases therefore an increase in income.
To get the most out of their loans, investors must search for a property that is in a location that is ideal for their needs. If you are looking for a property to use as a business, it is best to select a property near a residential area where there are a lot of vehicles and residents.
You should also check the properties surrounding the property to determine what kind of business competition there will be. If you cannot find your ideal property immediately, it is a good idea to check surrounding areas for a property whilst monitoring developments in the area you wish to buy in.
It is important though that you have the right home loan for your investment whether it be a residential property or a commercial property
Even if it entails a new set of entry and exit fees, you must not hesitate to refinance investment loans if the new loan will bring more financial benefits. Having a deal with a lower interest rate helps you save more money and the savings that they will incur can be used to renovate or redevelop the property.
In 2008, Australians borrowed about $68 billion worth of loans for investments and $225 billion worth of home loans.
Find the best deal for your mortgage
There's a lot to consider when comparing mortgages. Most first time buyers assume the first place to start a comparison between mortgages is on the interest rate. While the rate is important, you also need to consider the type of mortgage loan.
Comparing mortgages to find the one that best suits your needs
Comparing mortgages should start with the type of loan. Most mortgage brokers provide a range of home loan options.
Basic home loans offer low interest rates but no advanced features, such as a redraw facility or the option to repay the loan faster than planned.
Fixed rate home loans are a good option if you're concerned about rising interest rates. A fixed interest loan has a set interest rate for the entire life of the loan, protecting you against interest rate rises.
Split rate home loans put a proportion of the loan on a variable interest rate and the other proportion on a fixed rate. These loans generally offer all the features of a normal loan, while providing a mixture of certainty (the fixed rate portion) and flexibility (the variable rate portion).
Low documentation, and no documentation home loans are the solution for people without the supporting documentation to get a traditional home loan. You may be self-employed, or recently arrived from overseas - either way, because low doc loans require less documentation they are easier to obtain but generally have a higher interest rate.
Line of credit loans are becoming increasingly popular due to their flexibility and ability to pay off a mortgage faster. A line of credit home loan is a credit facility secured with a first mortgage on a residential property. Similar to a credit card, they allow you to withdraw funds up to a set limit at any time. This means you can withdraw money from the mortgage if you're ever short on funds, or pay extra if you're suddenly flush with cash.
Once you've selected a mortgage type it's time to look for a great deal.
Comparing mortgage rates
Most lenders provide online calculators to help you compare mortgages and work out how much you can afford to borrow. A more useful option is to use a loan comparison calculator. This is a tool which enables you to compare the total cost of two different loan options. It's a great way to work out which option is really the best value for money.
Use a mortgage broker
Mortgage brokers, like eChoice provide a convenient and easy way to compare mortgages. Mortgage brokers do the shopping for you and will help you find the best deal on the market.
