As the mortgage market becomes more complex, it pays to think about your options. A mortgage broker will negotiate with banks, credit unions and other credit providers on your behalf to arrange loans that suit you. Mortgage brokers can not only help you select a loan but manage the process through to settlement as well, dealing with any unforeseen hiccups that can occur.
The documents you will need but are not restricted to: i. Bank statements confirming savings ii. Other bank statements for existing loans and credit cards covering the most recent month’s transactions iii. Rental letter from managing agent showing current rent is paid (if applicable) iv. Employment letter or contract v. 2 most recent and consecutive payslips vi. PAYG summary, which is your group certificate from the last financial year vii. Tax return for the last financial year viii. Rental income statements (if applicable) ix. Family trust statements (if applicable) x. Other investment statements like dividends (if applicable)
For the purchase of a home you need as little as 5% of the purchase price, plus government costs such as stamp duty. Some states have government incentives to assist with a purchase as well.
You can see us before you find your property, car or any financing needs. We can help you work out the loan amount with repayments that fit into your budget. You can immediately schedule a time to meet Zejna, that suits you. She can call you at a scheduled time, or meet you virtually or visit you at your home or office. We also have a variety of offices across Melbourne therefore doing a face to face appointment of one of these locations is also on offer.
Each state has its own legislation surrounding the First Home Owners Grant. You can either review your state’s legislation here http://www.firsthome.gov.au/ or just let ZK Finance know that this is your first home and we’ll do all the hard work for you.
There are three main types of loans: i. Fixed rate- The interest you repay is fixed and doesn’t change with national interest rates. This can be higher than the lowest variable rate. ii. Variable Rate- The interest you replay changes when national interest rates change. iii. Combination or split loan- You can split the loan between a fix rate loan and a variable rate loan.
LMI is the insurance you pay to protect the lender from risks associated with granting you a loan of more than 80% of the property’s value. If you default on your loan and the property must be sold as a result, the insurance company pays the lender the shortfall if the property fails to cover the balance of the loan.
You may not have to pay LMI if you borrow 80% or less of the property’s purchase price but that is not guaranteed.
1. Firstly, it means that you know exactly how much you can spend on a home and all the uncertainty surrounding not getting a loan is non-existent. It also means that you can settle quickly, if it’s a possibility, and shows the realtor that you are serious about purchasing a home.
2. Pre-approvals are usually valid from between 3-6 months. If you have not found a property in that time, it is possible to get an extension with a few updated documents like recent pay slips.
Basically, every person’s situation is unique. At ZK Finance, we take into consideration your financial goals, capacity and other variables to figure out exactly which home loan is going to work best for you.
It depends in what context you are using them. In a scenario where you have a property that you currently reside in and you want to purchase a bigger property and move into that, whilst keeping the existing property as an investment property, they will affect the tax deductibility of the loans over the property in different ways.
Yes, once the fixed rate has expired. If you are adamant that you want to change to variable then you will generally be charged a fee for breaking the fixed rate before it expired.
1. Extra repayments are an excellent way to pay off your mortgage faster so the answer is yes you can, but the terms and conditions may vary with individual products.
2. Making extra repayments can be as easy as setting up direct debit for a higher amount or you can make lump sum payments. However, with a fixed loan rate, there may be a limit as to how much extra you can repay.
3. Yes, but there may be fees involved with individual products.
1. An offset account is an account that is linked to your loan account. The money you put into this account can offset the amount you own on the loan and you’ll be charged less interest the more money that goes into this account.
2. The main advantage is that is allows you to save money on the interest of your loan without actually paying the funds into the loan itself. You can also withdraw on this account at any time without penalty. However, offset accounts are usually only associated with variable loans that have higher interest rates or loans that have a lot of features, including extra fees.
The Australian Tax Office looks at what the equity(money) is being used for, rather than where it comes from. If you are using it for an income producing investment then most likely it’s tax deductible, however it’s always best to check with your accountant.
By law, this is a rate that all lenders must display next to their advertised interest rate and takes into account some of the fees and charges associated with the loan. It will give you a more accurate representation of the loan’s interest rate once the fees and charges are added.
It generally takes 2-4 weeks to get a loan approved. However, it can take longer depending on loan type and other circumstances. If you need a loan approved quickly because you want to purchase a house at auction or have a deadline for a cooling off period, please let ZK Finance know so that we can try to expedite the process.
The easiest way is to request a copy of your credit file here http://www.mycreditfile.com.au/
Solicitors and conveyancers ensure that the title of the property has been correctly changed according your state’s current land title laws. They also search for unresolved property disputes and rates owing by seller (basically who gets paid what) so you are not charged for a period that you did not own the home.
Residential properties are houses, units, villas, townhouses, terraces etc, mostly somewhere where people reside. Commercial properties are shops, factories, offices, warehouses, service stations etc where a business is generally run out of.
It is not necessarily any harder than someone who has a company job. It can be slightly more paperwork but the main thing you will need is tax returns.
Full-Doc loan is where the lender can verify your income from payslips, tax returns etc. A Low-Doc loan is for self employed applicants and is used where tax returns are not available, instead BAS statements and/or a letter signed by the accountant is used.
An SMSF can purchase Residential or Commercial property, with or without a loan but there are strict requirements around this.
We can assist you in getting finance for your car purchase through your business (subject to approval).
Equity from your home may be at a cheaper interest rate but it’s always important to consider your long term security. If you can’t make the repayments on an equipment loan they repossess the equipment, if you have borrowed against your home to buy the equipment and can’t make the repayments, they repossess your home. Consider also if you have borrowed against your home, these funds are not readily should you want to move somewhere else or upgrade your home.
