Purchasing a New Home
Before you start your house hunt, there are a few things to consider. First and foremost, making sure that buying is the right decision for you can set you up for a smooth buyer journey. One of the key factors in making this decision is looking at your budget and determining what you can comfortably afford.
Knowing your limits financially helps inform your decision in choosing the right home loan and when you’ve found a product that suits your budget and lifestyle, the next step is being pre-approved for that loan.
First Home Buyers
General rules that apply for the FHOG.
- All applicants must be over 18 years of age.
- The purchase must be done as a person, not a company or trust.
- It must be the first purchase of property by the purchaser or co-purchaser.
- Any purchaser(s) must be Australian citizens or permanent residents.
- The property will have to be occupied by the purchaser for a period of time (time varies between states).
- Only one grant will be given to couples or partners purchasing a property together.
- The value of the property will have to be below a certain value (amount depends on the state).
Refinancing your Existing Home
Refinancing can give you access to equity you have built up, or could simply save you money by consolidating debts or moving to a more competitively priced loan.
The most important thing to know is that there are different types of refinancing to suit your circumstances. Whether you’re looking for lower monthly repayments, want to consolidate your debts or access the equity in your home, there’s plenty of choice available.
Renovating or Building
Can I get a loan to renovate my property?
There are two main options:
- A personal loan – which is unsecured
- Mortgage finance – secured on the property
The right option for you will depend on the scale of the renovation and your financial situation.
Investment Properties
Property investment in Australia is a popular way to generate wealth – it’s an asset you can see and touch and you can generate income from first day you own it.
Why existing home owners might choose to buy an investment property
Existing property owners who have paid off at least 10 per cent of their property value, can borrow to purchase another property without having to put down a deposit or make a large upfront financial commitment.
When you have more equity in your existing property, banks will lend you higher loan amounts so that you can potentially purchase higher value rental properties. One of the biggest advantages of having equity is that you may not have put down a deposit on the investment loan as your existing property is security for the loan.
Call Sydney Select Finance
0414 625 366 or email donna@sydneyselectfinance.com.au
Consolidating Debts
The two biggest advantages of this are:
- You can consolidate your repayments into one easy payment
- You can pay a lower interest rate on the debt as interest rates on home loans tend to be less than personal loans
Examples of debts you can consolidate
- Business debts
- Australian Tax Office Debts
- Personal loans
- Credit Card debt
- HECS debts
- Court ordered payments
- Divorce settlements.
