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Timeline Photos

Timeline Photos

Your first step may be to review your financial situation and most importantly your biggest liability - YOUR HOME LOAN! Private message us today on the Aisling Financial page to see how much you could potentially save.

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The Reserve Bank of Australia has delivered the decision of its monthly board meeting. Board members have decided to cut the official cash rate to a record low of 1.50 per cent. In a strongly divided result, 23 of the 41 (56 per cent) experts surveyed by financial comparison website finder.com.au believed that the Reserve Bank would slash the official cost of borrowing today. Many of the experts cited July’s low inflation results as the main reason for the RBA’s decision. “The RBA will be hesitant to push the cash rate lower than it already is, however the June quarter inflation figures are well below the RBA’s target band of 2-3 per cent, making an August rate cut likely,” Robert Montgomery of Infrastructure Partnerships Australia said. QUESTION 1: DO YOU HAVE AN OWNER OCCUPIED HOME LOAN WITH A BALANCE OF $150,000 OR MORE? QUESTION 2: DO YOU HAVE AT LEAST 20% EQUITY IN YOUR PROPERTY? QUESTION 3: IS YOUR CURRENT INTEREST RATE OVER 4.00% IF YOU ANSWERED YES TO THESE QUESTIONS, THEN WE BELIEVE THAT YOUR INTEREST RATE SHOULD POTENTIALLY BE BELOW 4%. PRIVATE MESSAGE US TO SEE HOW MUCH YOU COULD SAVE!........VARIABLE RATES FROM 3.79% (COMPARISON RATE OF 4.01%).......3 YEAR FIXED RATES FROM 3.69% (COMPARISON RATE OF 4.87%)

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Timeline Photos

THE FOLLOWING INFORMATION HAS BEEN TAKEN FROM THE NAB RESIDENTIAL PROPERTY SURVEY FOR QUARTER 2 2016. IT IS PARTICULARLY CONCERNING FOR THE VICTORIAN MARKET. WITH LENDERS PLACING FURTHER CONSTRAINTS ON FOREIGN INVESTORS, WE NEED A STRONG FIRST HOME BUYER SEGMENT TO KEEP THE MARKET BUOYANT. ANY FIRST HOME BUYERS WHO ARE STRUGGLING TO GET A FOOTHOLD IN THE PROPERTY LADDER, FEEL FREE TO PRIVATE MESSAGE US TO GO OVER YOUR OPTIONS. 'FHB owner-occupiers accounted for 21.7 per cent of new property sales nationally, up from 19.1 per cent in Q1, with WA the strongest market for these buyers at 34.7 per cent and Victoria the weakest at 11.7 per cent. FHB investors, on the other hand, accounted for a smaller proportion of new property purchases than in Q1, down from 14.4 per cent to 11.1 per cent nationally. FHB investors in established property followed suit, dropping in every state and from 11.2 per cent to 9.7 per cent nationally. The greatest impediment to property purchase, according to property professionals, is employment security, with access to credit and prices also representing important constraints. Following May's interest rate cuts, concerns about rate hikes are 'not at all significant' in WA, and only 'somewhat significant' in the other states.'

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HOW TO PAY OFF YOUR HOME LOAN FASTER? When was the last time you looked closely at your loan, the progress you are making on paying it off and how it compares to others in the market? Analysing your loan could mean savings for you, as well as the opportunity to pay it off more quickly, invest in other assets or reach financial freedom sooner. MAKE SMALLER PAYMENTS, MORE OFTEN To cut the size of your payments, make more of them. This could even see you pay off your loan faster, and therefore pay less interest overall. If you pay your mortgage monthly, consider changing to fortnightly repayments. For example, if your mortgage equates to $2400 a month, cut this in half and pay $1200 each fortnight. As well as having more manageable payments to make, by the end of the year you will have paid off $31,200 rather than $28,800. PAY JUST A LITTLE BIT EXTRA A minimum repayment is just that – for most loans there is no reason you can’t pay more, whether here and there or regularly. By rounding up to a full number or contributing an extra $100 or even $10, you’ll significantly reduce your mortgage. It may also be worth considering putting all bonuses, tax returns and gifts into your mortgage. DON’T DECREASE YOUR REPAYMENTS WHEN INTEREST RATES FALL Even if your repayments are lowered when fees and interest rates decrease, it doesn’t mean that’s all you have to pay and, by keeping your repayments at the same level when interest rates are lower, you will pay down more of the principle with each payment and make speedy progress on your loan. OFFSET IT If you can, use an offset account. A mortgage offset account is linked to your loan and the interest payable on the loan from month to month is calculated by deducting what is in your offset account from your current loan. For example, if your mortgage is $500,000 and your offset account has $10,000 in it, you will only pay interest on the remaining $490,000. An offset account will save interest while still giving you access to your savings. It also means investors can preserve the tax deductibility of the mortgage. FIND A BETTER DEAL Ultimately, your mortgage needs to suit you and your circumstances, or you will wind up paying too much. If you think your current loan no longer matches your situation, speak to a finance broker. They will be able to find the right product for you, as well as negotiating appropriate rates on it. Of course, it is important to make sure that your lender doesn't charge fees for extra repayments, refinancing, or any other steps you take in an attempt to save on your loan. Your finance broker will be able to provide details and make sure you have a loan that lets you pay down your balance sooner.

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Inspirational quote for the day from a truly inspirational man!

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WHAT IS LVR? The mortgage industry is a wide, wondrous world with a language all of its own. One of the many acronyms bandied about is ‘LVR’, which stands for ‘loan-to-valuation ratio’. Here’s what it means. When you are working out what amount you can borrow to purchase or refinance a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the loan-to-valuation ratio (LVR) is one of the most important considerations. In the simplest terms, the LVR is the percentage of the property’s value, as assessed by the lender, that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80 per cent of the property value, making your LVR 80 per cent. LVR is important because different lenders and loan types have different maximum LVRs, and some lenders will only lend up to a certain LVR for smaller properties or properties in certain areas. Most lenders will finance 80 per cent LVR, or higher with lenders’ mortgage insurance (LMI), while low doc loans may be limited to 60 per cent LVR without LMI. Several lenders in the market will also offer pricing incentives for loans with an LVR of 80% or under, whereas mortgage insured loans will incur a higher interest rate.

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Enjoy your weekend! :)

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HOW TO BUY A HOME WHEN YOU'RE SELF-EMPLOYED Self-employed borrowers often come up against the challenge of not being able to present a raft of payslips and tax returns to back up their loan applications. But this need not stop you buying your dream home. Many lenders offer low-doc loans for self-employed borrowers who can’t hand over payslips and employment records. This means that, rather than the usual documentation, you prove your ability to service a loan using bank statements, declarations from your accountant and financial records. Of course, as with any mortgage application, you must still prove that your income outstrips your spending and you can service the loan. Getting this right is more than presenting a lender with a few quick sums on the back of a napkin; it takes a solid six to 12 months of preparation. Here are some quick tips: • Speak to a finance broker about how the structure of your business and your taxable income will impact your ability to borrow. • Do your taxes when you should, and always pay your tax assessments on time. • Save. Saving a deposit is obviously important, and showing your ability to live within your means and save is as well. This is key to serviceability – you want to show at least a six-month history of high income and low expenses. • Use a Finance Broker, rather than a bank. Finance brokers have access to specialist lenders that assess applications on a case-by-case basis and tailor their products to self-employed borrowers and contractors, while bank lenders may not. Low-doc loans do differ from standard loans in a few ways, apart from the application process. Lenders offset the extra risk they are taking by lending to a self-employed borrower or contractor by charging slightly higher interest rates and placing some extra rules on loan-to-value ratios (LVR) and insurance requirements. Most lenders will also insist on an LVR of no more than 80 per cent – meaning that under no circumstances will they lend more than 80 per cent of the property value, as assessed by the lender.

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So very true!