Home Loan Advice
Whether you are buying your first home, a replacement home, or an investment property, sticking your hand up at an auction and signing on the dotted line can be a daunting time. Plenty of excitement around your new purchase and often some uncertainty – did I do the right thing? Have I paid too much?
One thing that you’ll then be faced with is – which Home Loan?
Comparing one Home Loan to another is a bit like comparing mobile phone plans. They make it all so confusing with features, included services etc, it’s a real challenge knowing where to begin.
Working with GNS Group, gives you access to a tailored finance solution for your individual circumstances provided by our referral partners at Finconnect. Their lending manager is a Credit Representative of Finconnect (Australia) Pty Ltd, Australian Credit Licence No. 385888 a wholly owned subsidiary of Count Financial Limited.
If you have never used a Mortgage Broker before, here is a quick run-down:
Your Broker is working for you, not the Bank. Brokers have the skills, experience and tools available to get you a good deal, explain all the different options and make recommendations to you on how to maximise your repayments and to cut your interest bill.
Through Finconnect, their Lending Manager has access to over 16 Banks, Including all of the big Banks. A Finconnect Lending Manager can evaluate what type of loan you need, such as:
- Variable/Fixed Rates
- Owner Occupied/Investment
- Residential Commercial
- Line of Credit
- Constitution Loans
- Interest Only/Principle and Interest
- SMSF Gearing
- Reverse Mortgages
The benefit for you is that a mortgage broker can do all the leg work and shopping around, so you can relax knowing you’re getting your finances sorted.
Contact us to arrange a complimentary consultation with a Finconnect Lending Manager to assess your repayment capacity and to discuss the intricacies of the loan products.
Home Loan Tips
Refinancing your home loan
Our team can arrange an appointment with a Finconnect Lending Manager to review your current home loan to ensure you still have the right product for your needs. Don’t assume that just because your loan was once competitive, it still is. Interest rates change and different types of loans are always entering the market. They will:
- assess your current interest rate
- assess your repayment level
- assess your financial situation to determine whether a better deal can be sourced saving your money, and helping you pay off your loan faster
Tips to pay off your home loan faster
Select a home loan that meets your needs. While the rate is important, it is more important to have an appropriate level of flexibility and function.
1) Pay off as much as you can, as often as you can.
2) Avoid loans that penalise you for making extra repayment
3) Avoid ‘honeymoon’ loans that revert to a higher rate after the ‘honeymoon’ period is over.
4) Avoid loans with high exit costs.
5) Deal with reputable organisations
Fixed or variable interest?
This really depends on your current financial situation. The team at GNS Group can make sure that your investment loan is appropriately structured for tax purposes and can assist in determining the every-day cost of living impact to determine how much you can afford to repay each month.
There are advantages and disadvantages of choosing fixed and variable interest loans, and they are assessed on a per client basis.
Things to consider include:
- fixed interest loan
- variable interest loan
- loan comprising of part-fixed / part-variable interest
Remember however, that if you elect to split your loan into part fixed / part variable, make sure you don’t incur two monthly loan maintenance fees instead of one.
Hidden home loan costs
There are many costs associated with taking out a home loan, which don’t relate to the price of the property.
These hidden costs include:
- Lenders’ fees, including loan application and establishment fees
- Government charges including stamp duty on property purchase and mortgage, and title fees
- Legal expenses
- Inspection costs
Buying your first home
Buying your first home is one of (if not) the biggest financial commitments you will ever make. Stay well informed of what is involved so you don’t make any rash decisions.
Good financial planning advice from GNS Group and Count, along with Home Loan advice from a Finconnect Lending Manager can save you thousands of dollars off your loan and help you own your home sooner!
Can you afford to buy a house?
A credit provider must ensure you can afford to repay a loan without suffering undue financial hardship before lending you any money.
The total amount that you can borrow is determined by three factors:
1) The value of the property you intend to purchase; and
2) The funds you use towards the purchase; and
3) Your borrowing capacity or “serviceability”. Serviceability is your ability to meet loan repayments, and will depend on your income and existing financial commitments. You will need to provide evidence of a continuous stable income.
You must have a budget!
Budgeting your income carefully and understanding your spending habits will help you make regular loan repayments and own your home that much sooner!