A family guarantee home loan could save you thousands of dollars if you have family members who are willing to help you out with your purchase. Basically, one of your family members will provide their home or investment property as additional security to keep the loan below 80%, which means you save on Lenders Mortgage Insurance (LMI). There are 2 types of Family Guarantee or Family Pledge loans: • ...
Negative Gearing and Property Investment
Guest Blogger: Craig Ball from PRECISION BUSINESS ADVISORY Creating wealth through purchasing an investment property is a well-established practice in Australia. By definition, ‘negative gearing and property’ is where you borrow to acquire the property and the interest expense on the loan exceeds the rental income you receive from the tenant. The Benefits The attraction of borrowing or gearing to ...
What’s Lenders Mortgage Insurance or LMI?
Lenders Mortgage Insurance (LMI) is taken out by the lender (the bank) and paid by you (the customer) to protect the bank in the event that you cannot meet your home loan repayments. Therefore, in the event when the lender sells the property, if there is a shortfall between the mortgage amount and the sale price, the lender is covered. Loans more than 80% of the property price will generally need lenders ...
Step by Step First Home Buyer’s Guide
Your first home is one of the biggest financial decisions you will make. Understandably, it can be very exciting but confusing at the same time. You may have questions including What is involved in buying a home? How much deposit is required? How does the First Home Owner Grant Work? Do I need Mortgage Insurance? Where do I even start? There’s a lot to take in! We have therefore ...