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BUYING A NEW HOME
Topics covered:
Please scroll down for details and descriptions of each
Investment Home Loan
Debt Consolidation and Refinance
Self Employed
100% Home Loans
Reverse Mortgages
Do you have Credit Problems?
Bad Credit Home Loans
Debt Reduction
Investment Home Loan
Looking to invest in real estate? We help property investors to purchase many different types of property, whether it be an inner city apartment or an outer suburban house. We know which lenders from our panel to compare depending on your investment circumstances. For example, some lenders will not consider certain types of inner-city apartments, but others will. We can do the running around for you to find out, saving you precious time & energy.
Here is a quick guide to some of the things a person might consider when purchasing an investment property*:
- What type of property do you want to buy?
- Will you manage the property yourself or use a rental agent?
- Where will you buy?
- Do you know what the tax benefits are? ( speak to your accountant )
- How long will you keep the property?
- How much equity can you contribute to the purchase of the property?
- Can you afford to make the loan repayments if the property remains vacant for an extended period?
- Do you have enough funds to make a deposit, or do you need to use a Deposit Bond?
Don't forget, Townsville Financial Services can help you obtain a Home Loan Pre-Approval, usually valid for a 3 month period, so that you can check on your initial borrowing eligibility before you begin looking at specific investment properties.
Give us a call today to discuss your investment home loan needs, or simply complete the quick enquiry form on the website and a Townsville Financial Services consultant will contact you.
* This is a general guide only and does not constitute advice in any way. We recommend you speak to both an accountant and a financial planner when considering purchasing an investment property
Debt Consolidation and Refinance
Would you like to consolidate a number of debts into one? We specialize in helping people consolidate debt. Often people come to us with a number of credit cards and personal loans in addition to their home loan, and are finding it difficult not only to keep up with the payments, but also to keep track of it all!
If you are in this situation or simply wish to consolidate a high-interest debt with your home loan, then give us a call and we can compare a number of lending options for you. Often consolidating credit cards and personal loans with a home loan will result in a lower overall repayment.
Alternatively, you may be simply seeking to refinance only your home loan to obtain a lower interest rate or pay less fees. We can quote lender product options to you quickly & efficiently so that you can decide if it is beneficial to refinance. We also encourage you to take into account all the costs of refinancing to make sure that you come out ahead at the end of the day.
We are very experienced with the refinancing process and will guide you all the way to make it as quick and painless as possible.
Call us today to discuss your consolidation or refinancing needs.
Self Employed
It is now a lot easier to obtain a home loan if you are Self-Employed, even if you have only been self-employed for a short period of time. There are generally 2 broad types of self-employed loans in the market - Full Documentation loans and Low-Documentation loans ( known as 'Lo-Docs' ).
A full documentation loan for a self-employed person will normally require that you have been self-employed for 2 years or more, and have 2 full years of Business & Personal taxation returns available to prove your self-employed income.
However, a Low-Documentation loan, as the name suggests, requires a lot less in the way of documents to provide to the lender. Normally you will simply sign a declaration stating your annual income from self-employment, rather than providing tax returns. This particularly suits self-employed people who simply have not done their latest tax returns and perhaps have a complex tax situation.
There are many different types of Low-Documentation loans. Some lenders will still require you to have a history of self-employment, and an ABN, of 2 years or more. Others will require less but may impose other conditions. Some lenders will only require you to have an ABN for a day or more, if you are not borrowing more than a certain amount.
Confused yet? We don't blame you - but that is what we are here for! If you are self-employed and need assistance in comparing your options, then give us a call today.
100% Home Loans
Do you need a 100% Home Loan? Many more lenders are now offering 100% Home Loans, and you no longer need to pay a higher interest rate, with many lenders now offering you the same rate & fees whether you borrow 100% or 50% of the value of the property.
When you borrow 100% of the purchase price, you will usually need to pay what is known as Lenders Mortgage Insurance ( LMI ), which is an insurance cover that the lender takes out to protect themselves. The borrower, however, must pay the premium cost, which is normally calculated as a percentage of the loan amount. It is very important to note that LMI is not to protect or benefit you in any way - it is only for the benefit of the lender. LMI is almost always payable when you borrow more than 80% of the value of a property.
Are you an Investor? Did you know that if you have 20% or more equity in your owner-occupied home, that some lenders will allow you to borrow 100% for investment purposes? Ask us more if this suits your property investment strategy.
Townsville Financial Services will help to guide you through the maze of 100% home loan products, and save you valuable time & energy.
We can also assist you in applying for a Deposit Bond if you need to put a deposit on a property but do not have the funds available until settlement (this is often the case when a 100% home loan is used, as the lender does not advance the funds until settlement). Ask us how.
Reverse mortgages
A Reverse Mortgage allows you to access the equity in your home in your senior years when you may not have a high income to service a home loan. Instead of making regular repayments each month you have the flexibility of allowing interest to accumulate against your mortgage. Keeping this in mind it's a good idea to consider how many more years you intend to live in the home and how long it's going to take the interest to eat into your equity. Not taking the entire reverse mortgage in a lump sum is a good way to reduce interest expenses. Also be sure to check with Centrelink to make sure it's not going to affect your pension or welfare benefits. We also recommend you seek legal advice and tell your family of your intentions so there's no surprises when the time comes to liquidate your estate.
When established and managed the right way a reverse mortgage can provide security and allow you to do the things you may not have been able to do in the past. Fix up the house, take a holiday or maybe help out the kids, the choice is yours.
Do you have credit problems?
Did the bank say no?
Few people get through life without a blemish on their credit record. At Townsville Financial Services, we specialise in helping people whose financial situation falls outside normal bank guidelines. Don't be shy in asking for our help.
Is this you?
- Poor credit history
- No savings or deposit
- Short term employment
- Pension or welfare income
- Business lacking financials
- A high income but no deposit
We want to hear from you
Chances are we'll be able to assist in getting the loan you require. If we can't do it now, we'll work with you to help achieve your goals.
Are you experiencing financial hardship?
If you're experiencing financial hardship, we want to try to help in any way we can. If you are seriously in default and things are looking hopeless, please call us.
Bad credit or non-conforming home loans
Bad credit and non-conforming home loans are designed to cater for borrowers who do not meet traditional lending guidelines. You may have a poor credit history such as bankruptcy or defaults. For other borrowers it could be a case of an unusual income source or a lack of savings to put towards a deposit. Maybe you have several debts you're looking to consolidate into one and your lender won't give you the loan you need. Non-conforming home loans give people who would have normally not qualified for a home loan the option to achieve their goals. Non-conforming lenders do often charge a higher rate of interest than traditional mortgage lenders. Be sure to get the full story. Find out what your total establishment costs will be before you start and also what break fees you may be charged should you decide to pay out or refinance the loan down the track. With more than one non-conforming lender in the market, it pays to shop around. Townsville Financial Services will always explain the pros and cons of various loan options to you.
Debt reduction programs and lines of credit
A line of credit is like a massive credit card and if you’re not handling your current credit cards very well you’re not likely to benefit from using a line of credit. While there are some genuine ways of using a line of credit to pay off your mortgage faster, for many people this can also easily create problems that see them with high credit card debt and an even bigger home loan than before. Some mortgage brokers offering debt reduction programs charge large fee’s for their service and may not refund the money if you’re not satisfied with their service. Consider a cheaper loan with a low rate of interest and less fees as this can be a much better option. Always be sure to do your home work before handing over any money or signing any mortgage application. If a mortgage broker is charging you a brokerage fee see if you can find the same service elsewhere free of charge before committing to the deal. All Townsville Financial Services brokers do not charge any fees for their service to you.
Bad credit home loans
Bad credit and non-conforming home loans are designed to cater for borrowers who do not meet traditional lending guidelines. You may have a poor credit history such as bankruptcy or defaults. For other borrowers it could be a case of an unusual income source or a lack of savings to put towards a deposit. Maybe you have several debts you're looking to consolidate into one and your lender won't give you the loan you need. Non-conforming home loans give people who would have normally not qualified for a home loan the option to achieve their goals. Non-conforming lenders do often charge a higher rate of interest than traditional mortgage lenders. Be sure to get the full story. Find out what your total establishment costs will be before you start and also what break fees you may be charged should you decide to pay out or refinance the loan down the track. With more than one non-conforming lender in the market, it pays to shop around. Townsville Financial Services will always explain the pros and cons of various loan options to you.
Debt reduction
Beware of lines of credit and debt reduction programs.
A line of credit is like a giant credit card. If you're not dealing with your current credit card you're not likely to handle a line of credit very well either. While there genuinely are ways of using a line of credit to pay off your home loan sooner for many people this can create a trap that sees them ending up with credit card debt and an even higher mortgage than ever. Some companies promoting debt reduction programs charge large fee's for their service and may not refund the fee if you're not happy with your result. For many people a cheaper loan with a lower rate of interest and less fees is a much better option so be sure to do your home work before handing over any money or signing any documents. Townsville Financial Services does not charge you any fee's for our service.
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