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Posts Tagged ‘Mortgage loan’

Has your mortgage had a check-up lately?

• A quick annual check-up is a great way to keep on top of your home loan and make sure you’re still getting the best value
• Let’s face it, no one wants to shell out more for their mortgage than they need to; that’s why it’s well worth keeping a watchful eye on your home loan.
• It’s easy to get into the routine of paying your fortnightly or monthly repayments. But should your circumstances change, say for example you get married or have a child, you may be paying for features you no longer need or that there’s simply a cheaper loan available.
• If any of the following happens, it may offer the ideal chance to take a home loan health check to see if your loan is still performing at its best:
• Rates rise and fall – Rates go up and down over time so it’s worth keeping an eye on how your repayments are impacted. You might want to consider fixing all or part of your mortgage if rates look like they’re on the rise. A fixed loan guarantees a set interest rate for an agreed term which will protect against rate rises. Alternatively if rates look set to fall, a variable rate might best suit your situation.

Updated products: New loan products hit the market all the time so it’s a good idea to keep an eye out to see if another loan may be better suit your situation.

Which mortgage type to choose?

• Standard Variable: Normal P&I owner-occupier home loan, (the traditional home loan that pays your loan off “slowly” over a 30 year term. Normally the Bank wins by receiving a big interest margin.
• Honey moon” Standard Variable: First 12 months offer a discount interest rate, (revert to Standard Variable rate from 13th month). The first year is a great discount, but the Bank reverts you back to the Standard Variable rate from year 2 to 30.
• Discount Variable: Similar to Standard Variable, however interest rate offers an ongoing discount. A sensible borrower option, as the interest rate is discounted for the term of the loan, just make sure the features suit your needs.
• Line of Credit, (Equity Loan): An interest only variable rate loan that operates as an “all in one” loan facility with salary paid into it and $$ access via debit card and cheque book. Popular for investment or debt reduction purposes, but a lot of borrowers find it’s like a giant credit card and your debt never seems to go away.
• 100% Offset Account loan. A standard variable P&I home loan with a “linked” transaction account. Income and $$ can redraw from the transaction account. Both splits are assessed daily and interest is calculated on the “net” difference between both loan balances, and P&I interest is calculated on the difference, so you can save years off your loan term and save significant interest expense, if your income is in “surplus” against your expenses, in most instances. Popular with borrowers wishing to minimise their mortgage interest paid.

Your own personal situation may alter over time so it’s worth checking that your mortgage still meets your needs. You may change from a salaried role to self-employment or perhaps you’ve taken a role with a lower salary. You may even be thinking about securing your future financial security through a property investment. Whatever the change to your lifestyle, there’s likely to be a mortgage to fit.

Things to think about your current mortgage:

• Am I managing my repayments? Do I want to pay more or less?
• Am I paying unnecessary fees?
• Do I have other debts I’d like to combine with my home loan? Would this save me money?
• What features might I like to incorporate into my loan?
• Do I want to draw the equity out of my property and purchase an investment?

You’re mortgage doesn’t need to be static. The good news for Australian borrowers is that lenders are evolving all the time, which means there’s not only new products coming on to the market, there’s also a fair amount of competition between lenders for your business. If you feel that your loan my not meet your needs right now, and in the future, give your broker a call to discuss your options

Fast Funding offers a large range of home loans for residential, investment and commercial properties.

Buying a home – it’s your dream. Turning this dream into a reality is our job as financing professionals.

Fast Funding is all about options – listening to your needs and providing you with the best loan from a variety of lenders to suit your finance needs.

Our finance specialist will assist you in selecting the best loan product for your new property purchase, or to refinance your existing debts and consolidate if need be.

Loan options

Our loan options include:

* Variable and or fixed rates
* Full documents Loans
* Lo doc (If you don’t have financials)
* Equity Tap ( release the equity in your home)
* Offset accounts
* Professional packages
* First home-buyer loans
* Construction and renovations loans
* Refinancing and debt consolidation (see mortgage check up)
* Split loans
* Commercial Loans