Many first home buyers are not aware of the most basic costs and process associated with buying a home. A lot of them only think about the property price when doing their budgeting and are shocked when they meet with our mortgage specialist who explains all the costs and steps in getting their first property. It's important to know the following 7 most basic costs associated with buying a property and ...
Zero Deposit Family Guarantee Home Loans
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 ...