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Many people
benefit from the free AFS Personal Choice Assessment Program. It is
our mission to provide you with greater access to information so that
you are able to make a choice that best suits your needs, both now and
in the future. To find out more about the free AFS Personal Choice Assessment
Program go to Contact Us.
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Why Auswide Finance
Solutions? |
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We will
come to you with a range of products and assess your needs by using
the free Personal Choice Assessment Program. You will get the
same product as you would by going to the lender without the hassle
of having to do the leg work.
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How
is the service free? |
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We are
paid by the lenders for referring business to them. The products offered
may not vary in interest rates or establishment fees ...
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Why
would you arrange your loan through us? |
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We do
not show bias towards a particular lender or range of products, but
rather help fulfill your needs through our Personal Choice Assessment
Program.
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What
is Lenders Mortgage Insurance? |
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When you
borrow more than 80% of the value of a property, the lender will normally
require you to take out Lenders Mortgage Insurance. This insurance protects
the lender and covers the difference between the outstanding loan debt
and the realised sale price of the property, if it is sold under a mortgage
sale.
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How
much deposit do I need? |
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The more
deposit - the better. As a general rule 20% is a good target as a minimum,
but lenders may lend with less deposit, more than likely requiring Lenders
Mortgage Insurance.
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Why
can a Portable Loan be important? |
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Portability
in the loan is the ability for you to be able to transfer your loan
from one property to the next without incurring new establishment fees
and other costs.
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Do
I need a Line of Credit? |
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Similar
to a personal loan secured against your property. Usually revolving
or reducing. A revolving line of credit allows you to drawdown as you
require to the pre-arranged limit. Ideal for investors who can use one
loan to buy and sell property without having to re-apply.
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What
is negative gearing? |
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This
is a strategy used for minimising tax on your income. Your investment
property runs at a loss with the costs of maintaining the property being
greater than the rental income received. This net tax loss is then offset
against your salary income.
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What
will I need to have a loan assessed? |
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A copy
of the contract of sale for property purchases and a Certificate of
Currency of insurance. Three recent pay slips which also includes up
to date summary. If self employed then previous 2 years financial statements,
sometimes year to date statements or cash flow forecasts may be requested.
Group Certificate for previous financial year and first home buyers
should also provide copies of their savings account to support genuine
savings for a period of at least six months. If re-financing you will
need to supply evidence of a satisfactory repayment history for a six
month period, usually copies of current loan statement, also a current
rates notice. If building/construction loan is required then council
approved plans will have to be supplied as well as a fixed price builders
contract.
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What
factors are used by lenders to access loans? |
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Some of
the factors lenders take into account when assessing loans include:-
- Length
of employment, asset accumulation, savings history, capacity to repay
and credit reports.
- The
LVR (amount you wish to borrow against the value of the property)
and the location, condition of the property and size may be considered.
The lenders may also require an independent valuation of the property.
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What
costs associated with buying a property might I incur? |
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Some costs
associated with buying a property may vary from lender to lender, fees
such as establishment or application fees, valuation fees and ongoing
service/administration fees. Where the Loan to Value Ratio (LVR) is
greater than 80%, the Lenders Mortgage Insurance (LMI) premium will
be payable. Mortgage Registration, Mortgage Discharge (if refinancing
an existing loan), Stamp Duty and Title searches as well as solicitors/conveyancing
agents are fees that need to be considered.
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Fixed
or Variable Rate Loan? |
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Both types
of loans have advantages and disadvantages. If you are on a Fixed Rate
and the Reserve Bank raises the rate, your repayments stay the same
for the period the rate is fixed. Some people find this an easier way
to budget, knowing exactly how much each month the repayments are without
them changing. Remember though the opposite is also the case, if the
Reserve Bank lowers the rate your repayments are still the same, and
fixed rates often limit or sometimes even prohibit additional repayments
reducing your ability to pay off the capital borrowed sooner.
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Disclaimer:
The information contained in this website is considered general information
only. The information should be used as a guide only and is provided by
Auswide Finance Solutions.
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