Lenders’ mortgage insurance (LMI) is a non-refundable, non-transferable charge that is often applied to your home loan. It applies to situations where the borrower does not have enough savings or assets to meet the usual asset requirement of 20% of the asset value. LMI is a type of insurance that protects the lender rather than the borrower. The higher the percentage, the higher the premium, as the lender’s risk of loss is considered higher.

A mortgage offset account can help you lower the interest rate on the loan. The mortgage is linked to an account where you may deposit your salary and other funds. These funds can subsequently be used to pay your bills. If you have a $200,000 loan and $5,000 in your offset account, for example, the amount of interest you pay will be computed on only $195,000 ($200,000 – $5,000). Instead of paying off your current mortgage, you can use these funds towards a new deposit. With Extra Repayments/Redraw facility you can make extra payments for unexpected expenses that may occur. Some loans with this feature allow you to miss a mortgage payment if you have enough cash in your account to cover it.

Upfront costs

• Stamp Duty – A stamp duty is a duty or tax imposed by the state government on certain transactions, including the purchase of your first home. The amount depends on the purchase price of the home.
• Lenders mortgage insurance – LMI is applicable on loans when the deposit is less than 20% of property value.
• Legal Costs – It includes conveyancing and title searches costs on your new home.
• Building and pest inspections – this is a report on the structure and condition of the home
  you’re purchasing.
• Home and contents insurance – Covers the expense of replacing or repairing your personal
  belongings in the event of theft, loss, or damage.

Pre-approval is a guarantee from Lender that, the property you want to buy has been appraised and we have all the information we need from you, you may proceed with our financial support if the final checks are successful. The term "conditional approval" indicates that a lender has evaluated your financial status and has proposed an anticipated loan amount that may be officially authorised after you find a property.Pre-approval is a guarantee from Lender that, the property you want to buy has been appraised and we have all the information we need from you, you may proceed with our financial support if the final checks are successful. The term "conditional approval" indicates that a lender has evaluated your financial status and has proposed an anticipated loan amount that may be officially authorised after you find a property.

Yes. The stamp duty cost can be deducted from the loan's principal. The stamp duty will be paid from the money you put down on your loan as a down payment. The amount of stamp duty you owe depends on where you live and how much your house is worth.

You can get in contact with one of our friendly team who can assist you with, at the time of the loan application.

When considering a home upgrade, a significant dilemma arises regarding the sequence of transactions: should one purchase a new property prior to selling the current one, or vice versa? We frequently assist individuals who are looking for upgrade but are uncertain about the optimal order of these actions.

If you’ve successfully made an offer on a new property and secured a signed contract for your current home, you’re in a great position. Many people choose to align their settlement dates, selling their old property just days before acquiring the new one. If you use the same Conveyancer or Solicitor for both transactions, they can easily coordinate these settlements to your advantage.

Navigating any of these options can be quite difficult, and having support in this balancing act can be extremely beneficial. It’s essential to have a reliable team when involved in simultaneous buying and selling. This process requires a considerable time commitment for hosting and attending open inspections. Furthermore, it’s important to have a comprehensive understanding of your financial situation, as well as the legal and administrative issues that require careful attention.

The refinancing process starts by reviewing the fees charged by your current lender for changing loans. Then, exploring different home loan options to identify a more favorable deal. If you choose to proceed with refinancing, a formal loan approval needs to be secured with the new lender.

If you opt to renegotiate with your current lender, the process is generally more straightforward, but you may need to prove your capacity to repay the loan.

Equity refers to the portion of your property that you truly own, which is calculated by taking the total market value of the property and subtracting any outstanding debts or loans secured against it.

For example, if your home is valued at $300,000 and you have a mortgage balance of $200,000, your equity in the property would be $100,000. This equity can increase over time as you pay down your mortgage or as the value of your property appreciates in the real estate market.

When refinancing with a different lender, it is important to be aware that you may incur discharge fees or break fees, depending on your current home loan and lender. Furthermore, you should take into account any associated costs that may arise when securing a new loan, including application fees and property or valuation fees. Nevertheless, these expenses may appear minor in comparison to the potential savings achieved through refinancing.

The amount of money you can borrow during the refinancing process depends on your current borrowing capacity. This capacity is affected by current interest rates and the difference between your income and expenses. Furthermore, the property’s value is crucial; borrowing more than 80% of the property’s value typically requires Lenders Mortgage Insurance (LMI), which increases your overall borrowing costs.

Negative gearing occurs when the yearly expenses associated with owning an investment property, including interest payments, strata fees, maintenance costs, and other related expenses, exceed the income generated from that property. This financial loss can generally be used to reduce your taxable income for the year.

An interest-only home loan requires borrowers to pay only the interest during the repayment term, without reducing the principal. While beneficial for property investors, these loans typically have higher overall costs than conventional principal and interest loans. If you’re unsure if this type of loan is right for you, consult a home loan specialist or financial advisor.

Landlord’s insurance provides coverage for your rental property against damages or theft perpetrated by tenants, as well as losses resulting from specific weather-related incidents such as flooding or fire. Additionally, it protects against loss of rental income due to tenant defaults. This insurance also includes liability coverage in the event that an individual is injured while on your premises.

• • Control: Full authority over investment choices tailored to your goals and risk appetite and helps

• • mitigate overall risk by diversifying your portfolio
  • Tax advantages: Potential tax incentives, including reduced capital gains and reduced tax on rental

• • income.
  • Borrowing capacity: Ability to secure loans, enhancing purchasing power and returns with long

• term growth to enhance the savings for your retirement.

The interest rate for SMSF home loan can fluctuate based on various factors, such as the lending institution, the loan amount, the nature of the property being acquired, and the borrower’s credit profile and financial situation. Certain lenders may provide fixed interest rates, whereas others might offer variable rates that are subject to change in accordance with prevailing market conditions.

Applying for an SMSF home loan may seem daunting, but it doesn’t have to be. You’ll need to provide details about your SMSF, including financial statements and investment strategy, as well as personal information like income, expenses, and assets. Once all the necessary information is ready, your application can be submitted and await for the lender’s response. Talk to our mortgage brokers to help you secure a property through SMSF.

Any enterprise, regardless of size, can seek a commercial loan, encompassing both small startups and large, established firms. This principle also extends to loans for commercial properties, provided that the necessary criteria are satisfied. It is advisable to consult with a mortgage broker initially to determine the most suitable loan option for your specific situation

Most financial institutions offer two types of loans: Principal & interest or Interest Only

Few important considerations before considering commercial loans are how much deposit you have in hand. Can you afford the repayments? If you need collateral, what assets you have to offer? What is the loan to value ratio? If you need a guarantor, do you have someone willing to guarantee?

The approval process for a car loan requires up to four days before you obtain the final approval. This timeline may be affected by various factors such as your credit history, income level, identity verification, and the speed at which you submit the necessary loan documentation.

Numerous factors affect your borrowing capacity, along with the terms, interest rates, and duration associated with any specific car loan. Get in touch with our friendly team to know how much you can borrow.

Absolutely, we can assist you with pre-approval. Securing pre-approval can strengthen your negotiating position with the dealer. By understanding your budget and purchasing a vehicle with a pre-approved loan, you can negotiate with greater assurance.

Individuals often pursue vacant land loans for various purposes:

1. To construct a owner occupied home in the future.
2. As a means of investment for potential resale.
3. For agricultural endeavours.
4. To facilitate the development of commercial or residential properties.

Yes, if you are purchasing land without a building contract, you are eligible to apply for a standard home loan. Once you are prepared to commence construction, please contact us for assistance. In the case of acquiring a house and land package, a construction loan is available. The initial drawdown will be allocated for the land purchase, followed by subsequent drawdowns to finance the various stages of construction.

The timeframe for obtaining approval for a vacant land loan can differ depending on the lender and the intricacy of your application. Typically, this process may take few days to weeks depending on the Lender assessment timeframe. Having all necessary documentation in order and presenting a well-defined plan for the land can facilitate a quicker approval.

At Credific Finance, our knowledgeable mortgage brokers are there to assist you for the land and construction loan and help you with your construction loan application when you are prepared to begin your project. You can choose to merge the two loans into a single loan or maintain them as separate entities.