How to Save Money on your Mortgage

Well, it’s not a rocket science and anyone can do it. Moreover, we are just sharing the simplest of ways here that can help you save some dollars on your mortgage. If you are planning to buy a new home and willing to take a home loan, you need to consider various aspects related to it. The ideal thing to do is to seek assistance from a financial broker or else you can also use a Home Loan Repayment Calculator to know how much it would cost.

You need to set a budget first
Yes, that’s the most important one and you need to work on your expenses to manage your mortgage repayments conveniently. There could be things that you might need to cut, especially related to your spending to stick to your budget.

Next comes lowering your debts
Cancel the unnecessary number of credit cards you own. Instead of having multiple credit card payments, consolidate them to make one single payment every month. Moreover, it is wise to reduce your credit card limit as well and use it only when needed.

Think of paying more than the minimum
Another good thing you can do is splitting the mortgage payment and paying them fortnightly, as it will help to save money on interest charges. Doing this will take the principal amount down and you will save thousands of dollars in paying interest throughout the loan term. If you get some extra funds, put them in your mortgage account. It will make a difference in the long term.

Arrange for direct debit
Direct debit of your mortgage repayments from your bank account will help in making them always on time. This way, you will not miss any of your repayments and there will not be any additional charges incurred to you due to missing payments. Make sure the bank account you select is the one where your pay comes in.

For any financial hurdle, speak
That’s true; if you are facing any difficulties in meeting your mortgage payments, speak to your lender first. Do not wait until you get in real trouble as the way out is so much harder.

If you need more personalised assistance related to your mortgage, speak to our financial brokers. They are always ready to help.

How to Deal with the Growing Prices of Properties? Let’s Take a Look… Part II

This blog is in continuation to the one written earlier under the same title and the introduction.

It’s not just you, most of us feel like buying a new home is too far to reach. Not just because of the affordability and choice, rather all those news of hike in property prices also lowers the enthusiasm every time they pops up on media and internet news. However, just like others, this sad story too has an ending, means the ways through which you can deal with property price growth, both mentally and financially to move ahead.

Here, let’s know what the remaining things are -

Do Some Math to Increase Affordability

Yes it’s true. If you want to make your house more affordable by simply doing some creative calculations, start with a home loan calculator and some trustworthy help from a home finance broker. Like an event of the lifetime, the historically low cash rate at present helped to keep interest rates low too, which eventually means the cost of buying a property has gone down.

Ideally, don’t just rely on others to do the math for you. Start visiting the websites where you can compare home loans from different lenders, calculate repayments and find out how much you can save with them. Additionally, do not forget to take the advantage of added bonuses like offset accounts that can lower the amount of interest you pay towards a loan.

Be a Czar of Property

A tycoon, a mogul, a kingpin… you can be called by any of these by owning a four bedroom family home in the suburbs that seems to be out of reach, however, a small unit to rent out from it can help you own it within your reach. While you rent, you'll be gaining some capital that will be of great help in your monthly repayments.

Now, what’s the deal? Why to wait? Start now and soon you will be living in your dream home. If you have any specific needs, you can always Book a Free No Obligation Consultation with the property experts at Loans Direct.

Limit Your Monthly Expenses Prior To Applying For a Home Loan in Australia

Buying a home is a biggest financial commitment of your life. So it has become more important for you to prepare yourself mentally as well as financially before you buy. It helps you to increase your borrowing power and increase the chances of quick approval of home loans. Here are some important points that you should implement in your life that reduces the mental and financial pressures while buying your first home.

Curbing your spending habits

It is obvious that if you have less financial commitments, then you tend to be more spontaneous with your spending. You buy everything that you like without even give it a second thought. However, if you have decided to buy a home, then the money you spend will need to go towards saving a home deposit.

Calculate home loan interest rates in Australia

The official website of homebuilders, financial brokers, and real estate websites come equipped with free home loan calculator in Australia. This allows the borrower to check how much they can potentially borrow prior to apply for a home loan from one of the banks.

Setup a high interest savings account

You should open a high interest saving account that will allow you to earn interest on the money you save. It will enable you to earn more in a shorter span of time. However, make sure that you will read all terms and conditions thoroughly and aware about how interest is paid to you.

Credit Cards

Credit Cards reduce your borrowing power and affect the credit rating score that create hindrance in the loan approval process at a later stage. To maintain good credit rating, you should reduce your credit limits so that you will get an alert if you ever cross it. It will curb your spending habit that you may have. 

Vital Tips That Eases The Process Of Repayments When The Rates Are Higher

In January 2014, according to the RP Data-Rismark Home Value Index, home values across the combined capital cities increased by 1.2%, however, the rate of value growth over the month was slower as compared to the 1.4% increase in December 2013. Moreover, the combined capital city home values increased by 9.8% over the period of 12 months until January 2014. Thus, it will be interesting to see if the trend is replicated in 2014 on houses and units across the combined capital cities.

Such factors definitely influence the scope of financial services of banks and other lending institutions. As a result, they offer financial products with amended terms and guidelines to those interested to own a house or property in cities like Sydney, Perth, Adelaide, Melbourne, Hobart, Darwin, etc. However, before applying for a loan, it is always recommended to compare all the best possible option and choose the best among the rest, which fits according to your needs and requirement. 

 

1. The first factor that everyone should consider while choosing home loans in Australia is understands the rate of interest on the loan amount.
2. The second vital thing to consider is looking for the repayment options. Here are the three points, which definitely help to lower your repayments and make easier for you to become financially stable during the repayment period:
   • One of the immediate things you can do is to contact a financial advisor who will definitely help you with all available refinancing options in order to reduce the burden of repayments.
   • As interest rates are changing so often with the passage of time, once the rate of interest is reduced, then it should be advantageous for you to refinance at much lower interest rates.
3. What if the rising interest rates start affecting your home loan repayments? To counter such instances and impacts on your repayments, here are some steps to follow that can help to reduce the acts of rising interest rates:
   
   • Consolidate all your debts: Consolidating all your debt into your home loans, such as personal loans and credit card bills will save you for paying much higher interest rates.
   • Increase your loan term for repayment up to 25 to 30 years: It will greatly reduce the amount of monthly repayment as you get the extended time limit to pay off all your debts. It is recommended to seek the assistance of financial advisors to know about the best possible options.
   • Select the Fixed-rate home loans: Always consider for the fixed rate home loan if you exactly want to know about the amount you have to pay on a monthly basis.

Thus, by keeping in mind these simple tips, you can possibly ease the process of repayment of your home loan in Australia.

Loans Direct Mobile App - A Handy Calculator for Financial Experts and Brokers

There are number of calculators available online to make noteworthy calculations related to interest rates, repayments, loan estimation, etc. However, if you are a mortgage broker, going from pillar to post to provide efficient expertise to the clients seeking financial consultancy, you must definitely try mobile app by Loans Direct, which help home loan brokers and financial service providers to make all the necessary calculations on the go.

This app is a great tool for Mortgage Brokers to deal with a host of clients each day of their lives. Often client’s queries demand the brokers to be well equipped with a tool that helps them make calculations at the spur of the moment; thus, the app is designed to make instant calculations on various financial aspects and keep the clients updated.

A number of meetings are held outside of the office, this loan calculator app enables the brokers to make the following calculations anytime and anywhere:

• Loan repayments: One just has to enter the interest rate applicable on any purchase, the full term of the loan and the amount one has borrowed to get the minimum monthly repayment and the amount of interest paid.
• Total borrowing limit:  The portable calculators help the brokers assist their clients by providing an estimate of the maximum one can borrow, keeping into consideration one’s income and expenditure.
• Repayment frequency - For weekly, fortnightly and monthly payments on an interest only loan or to repay a loan over a set term on a principal and interest basis
• The mortgage brokers can save their clients some money on interest and charges on loan, by making quick calculations on the lump sum payments.
• For the first home buyers, the mortgage brokers can quickly assess the client’s eligibility and usefulness of the Grant.

You can download the app free from Google’s Play Store or from our website www.iloansdirect.com.au