| First Home Owners |
| Purchasing your first home can be a daunting
process. Our consultants will make the process as
easy as possible by helping you find the right home
loan best suited to yourself. We can also provide
you with information and organize for you: |
- First Home Owners Grant - How much is it and
will I qualify?
- Stamp duty concessions - Information on the
concessions each state gives to first home
buyers
- Steps in buying a property - A general guide
explaining the steps you need to take to
purchase a property
- How much can you borrow? - If you have at
least a 3% deposit and want to know how much you
can borrow
|
| For more information Contact Precision 1 Finance |
| Refinancing |
| It is a fact that many people are paying a
higher home loan interest rate than they need too.
Also which loan type and repayment structure do you
currently have? |
| Do you have a number of debts, including a home
loan, that you are finding hard to manage? It may be
in your best interests to consolidate your personal
debts into your home loan to reduce your total
monthly outgoings. |
| With the correct loan type and structure you
should be able to dramatically reduce your mortgage
giving you more deposable income for yourself and/or
future investments. |
| If you think that you are paying too much on
your current home loan, or if you are simply unhappy
with your current lender, we can help you determine
whether it will be beneficial for you to refinance
to another loan. Although you may find a cheaper
interest rate elsewhere, other factors, such as the
costs that may be involved in refinancing, need to
be considered. |
| How long has it been since you conducted a
checkup on your home loan? |
| For more information Contact Precision 1 Finance |
| Debt Consolidation |
| Do you have a home loan and one or more personal
debts, such as credit cards, car loans and personal
loans? If so you may be able to save hundreds of
dollars each month by consolidating all of your
debts into your home loan. Instead of paying the 15%
p.a. interest rate that is common to credit cards
and personal loans you may be able to pay normal
home loan interest rates on your personal debts
instead. You can therefore cut down your total
monthly repayments and have the luxury of making
just one repayment each month instead of continuing
the difficulty of trying to manage the repayments on
numerous debts. |
| For more information Contact Precision 1 Finance |
| Self Employed Loans |
| Qualifying for a home loan when you are self
employed used to be a difficult task. Mainstream
lenders would usually ask for your personal and
company tax returns for the past 2 or 3 years. If
these were not available then you usually wouldn't
be able to qualify for a home loan. Nowadays more
flexible lenders have entered the marketplace with
low doc and no doc home loans, which don't require
you to provide proof of income. When this type of
loan hit the market a few years ago the interest
rate was generally higher than standard rates. In
today's mortgage marketplace it is possible to
attain a low doc home loan at normal interest rates. |
| If your tax returns are up to date and you have
been self employed for at least 2 years you may
qualify for some standard home loan products. |
| If your tax returns are not up to date and/or
you have been self employed for less than 2 years we
may still be able to help you qualify for a low doc
or no doc home loan. |
| For more information Contact Precision 1 Finance |
| Investment Loans |
| When Purchasing an investment property it is
important to have the correct investment loan and
structure put in place. Investment property
expenses are tax deductible so if you still have a
debt on your owner occupied property, this should
still be your priority to reduce. |
| Where to attach your investment loans and splits
to which security is also very important for future
purchases and releasing equity this could be the
difference between a good and bad investment. |
| Precision 1 experts help design loan structures
to suit your specific circumstances and investment
needs giving you the greatest financial benefit. |
| For more information Contact Precision 1 Finance |
| Information on loan types |
| Below is a basic guide to loan products
available in the Australian Mortgage Industry today. |
| Basic Variable |
- Low interest rate (lower than a standard
variable loan) no frills loan
- Rate is variable so it moves in line with Reserve
Bank changes
- Limited features (e.g. usually no access to offset
facilities & more expensive redraw if at all)
- Most allow extra repayments
- Most have terms of 25 or 30 years
|
| Standard Variable |
- The most popular type of mortgage
- A higher interest rate than a basic variable home
loan
- Interest rates can move up or down which will
cause your repayments to increase or decrease with
the move
- It is more flexible than a basic variable mortgage
thus allowing you to make extra repayments without
penalty as well as offering other features
- Most have terms of 25 or 30 years
|
| Introductory or
honeymoon rate |
- Offers a low interest rate usually for the 1st
year of the loan. The rate may be fixed, variable or
capped
- Once the honeymoon period is finished the interest
rate usually reverts to the institutions standard
variable rate
- The initial low rate offers a chance for you to
reduce the principal quickly by making extra
repayments
- Can be a disadvantage if the honeymoon rate is
fixed and the standard variable rate decreases
during the period
- An offset facility can usually be used in
conjunction with this loan
- Most banks charge penalties if you discharge these
types of mortgages within 3 to 4 years
|
| Fixed Rate |
- Allows you to fix your interest rate, and thus
your repayments, for up to 10 years
- Once the fixed rate period is finished the rate
will usually revert to the institutions standard
variable rate unless you decide to rollover to
another fixed term
- This is a good loan to be in if rates are rising
but if rates are falling you could be out of pocket
by thousands of dollars
|
| 100% Offset Accounts |
- This is a separate transaction account which
is attached to your mortgage
- The money in the offset account is deducted from
the loan balance before interest is calculated. This
effectively means that your savings are earning
interest at the same interest rate as the home loan.
- The offset account is much like a normal savings
account (i.e. usually offers ATM access and a cheque
book)
- Available on most banks standard variable and
introductory rate mortgages
|
| All in One Loans |
- This is effectively a transaction account and
home loan combined
- Allows you to directly credit your salary to the
account and withdraw your funds via ATM's, EFTPOS,
credit card or cheque book, as you need it.
- An All in One mortgage enables you to decrease
your interest expense by keeping your funds in the
account for as long as possible
- The interest rate may be higher or you may be
charged a monthly access fee for the privilege
|
| Line of Credit |
- Similar to an All in One loan except that you
can draw down on the loan at any time up to the
prearranged credit limit
- This loan has no set term
- A higher interest rate is usually paid for a line
of credit
- A disadvantage is that it is possible for
undisciplined borrowers to reduce the equity they
have built up in their home
|
| For more information Contact Precision 1 Finance |
