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If you are in the middle of paying off your home via a mortgage, you are probably finding that the payments can quickly eat into your monthly finances. The home loan interest rate payments on your home loan, in particular, are variable and can cost you thousands of dollars more than you need to be paying over the course of time. You may have taken out a mortgage with a less-than-ideal home loan interest rate simply because you needed to purchase a home right away, or maybe you didn’t qualify at the time for better rates. You may have resigned yourself to dealing with these frustrating high payments, but there are ways to lower your home loan interest rate.

Look in to refinancing

The most common way to lower your home loan interest rate is to refinance your home. Refinancing is the process of paying off your first loan with a second mortgage, which has a much better interest rate. Refinancing is an ideal option if interest rates are much lower now than they were when you originally took out your mortgage, or if you didn’t have the greatest rate to begin with, but your credit score has improved now, enabling you to get something better. If you decide to refinance your home, it is very important to work with an experienced mortgage broker to make sure that you are getting the best possible deal. After all, there’s no point in refinancing if you end up with a new loan that is just as troublesome as the old one.

Pay back your loan faster

If you have cash to spare, there are actually a few other ways that you can lower your mortgage rate quickly. The first is to make extra payments on your mortgage whenever you can. What this will do is lower the total remaining balance on your mortgage, which means that the interest left on it will be lower as well. The quicker you can pay off your mortgage, the less you will pay in interest. This can save you thousands of dollars over time. You can also choose to refinance to a loan with a shorter term, which may mean that your payments look higher on paper, but you will likely pay much less in interest in the long run.

Talk to your current lender

If you are truly struggling to pay your mortgage every month, and it is affecting your ability to live comfortably by eating into your money available for food and general living expenses, that’s when you need to have your mortgage broker talk to your lender. Your lender may be able to lower your rate, and will likely be willing to do so in these circumstances.

If you think you are paying too much for your loan, get in touch with Seajay Mortgage Brokers today – we would be more than happy to help you find an option that suits your needs.

Investing in real estate is a great choice for anyone looking to grow their financial assets over time. You have many potential money-making opportunities, whether you decide to improve the home and sell it, rent it out or use it as a holiday home. Real estate will always add value to your portfolio, but you need to make sure you approach your investment wisely. It can help to work with a mortgage broker, who can help you find a loan with the best interest rates and features for your situation. Here are four pieces of investment property advice to get you started with your property search.

Take your time when researching

One of the most detrimental things you can do when looking for your first investment property is to rush into a purchase. Once you have made the decision to buy a property, you will probably be excited, and it can be tempting to purchase the first property that appeals to you. However, it is important that you give yourself the time to weigh up the pros and cons of any big decision before you make it. Read up on the investment process from experts who really know what they are doing, and then consult with a professional mortgage broker who can help you with the purchase process.

Compare interest rates

Interest rates on investment properties are usually higher than they are on other types of properties, so you will want to compare all of your options to make sure you are getting the best deal. Remember that interest rates will affect you and your finances for years to come, so they are an extremely important factor to consider. While comparison rates are a great way to compare apples with apples, there are a number of other factors that should be taken into account before you choose a loan. This is where it is important to consult with a mortgage broker, because they can help you find low rates quickly.

Save up for a deposit

Don’t forget that you will need to put down a substantial deposit on your investment property when you purchase it. You’ll want to make sure that you can really afford it with money left to spare – after all, there will be plenty of operating costs on your investment property. Give yourself some time to really budget for that deposit.

Find a balance between price and quality

Fixer-uppers can be very high-stress, especially for a first-time investor, so they may not be the best choice for you. However, most people can’t afford to invest in a home with a huge price tag either. Give yourself a budget, and look for a great house that you can afford that needs only minor renovations.

Think you’re ready to take the plunge and invest in property? Get in touch with us to talk about your mortgage options, including pre-approvals and refinancing.

 

If you are investing in property for the first time, you may find yourself overwhelmed by the many new terms and concepts that you will be working with. Real estate investment is a great way for anyone to make a solid passive, supplemental income. Don’t be intimidated by the process – with some good, in-depth research and help from professionals, you will be able to get started investing in property. Here is a basic guide to some of the terms and concepts that you will be exposed to in your first real estate deal, and what they mean for you.

A glossary for investing in property:

Effective gross income

This is the total amount of income that a property is expected to make from all operations. This generally includes an allowance for vacancies and collection losses. This term is used to refer to rental properties, and is sometimes abbreviated as EGI.

Flipping

This is the process of buying an extremely low-value property, investing time and money into rehabilitating it, and then selling it for a huge profit. Although you have likely seen many shows on TV about investors who make their careers flipping houses, it may not be the most practical use of your time for a beginning investor.

Expense ratio

This is the ratio of your total property expenses to your EGI. It is usually expressed in a percentage, and can be used to determine if a property’s expenses are worth the investment. Properties with a lower expense ratio are more desirable.

Market rent

This is the expected rental price that the property would receive right now if it were on the market. This figure is determined by current rents on comparable properties in your area during the time of evaluation.

Depreciation

This is the loss in property value over time. This number can be projective, (ie. the expected depreciation) or in terms of the actual depreciation of the property.

Holding period

This term refers to the length of ownership of an investment.

ROI/Capitalisation rate

These related terms refer to the overall amount of profit you will make from your investment. ROI stands for return on investment, and it is a broad term referring the overall amount of profit. The capitalisation rate is more specific, and it is determined by calculating your gross annual income from the investment, divided by the cost of the property. This is expressed as a percentage to see how much a property will generate.

Net cash flow

This term is used to refer to your monthly income from the property, minus the total expenses the property incurs every month. This is how much money you will make from the property every month.

Think you’re ready to get started investing in property? Talk to Seajay Mortgage Brokers about applying for a loan.

The Gold Coast is one of Australia’s most up-and-coming cities, with a population of over 500,000 people. The area has been growing steadily over the past several years, and is know for its beautiful beaches and waterways.

Located south of Brisbane on Australia’s eastern coast, it has long been known as one of Australia’s best tourist destinations. In the past year, the property market in the Gold Coast has experienced a boom.

Waterfront Gold Coast Homes Providing High Growth

Between 2015 and 2016, many property values on the Gold Coast have shot up between 15 and 25 percent. This is particularly true in waterfront suburban areas, such as Broadbeach, Runaway Bay, and Bilinga.

Demand seems to be particularly high for freestanding, single-family suburban homes.

This is because there is a huge desire to:

• live,
• work, and
• raise children right by the waterfront, where there is plenty to do, as well as great schools and a safe community.

As property values in Sydney and Melbourne, two of Australia’s biggest metropolitan areas, have boomed over the past several years, Gold Coast becomes a particularly attractive option for both locals and foreigners alike who are looking for that beachy Australian lifestyle.

Gold Coast Infrastructure Development Fuels Growth

There are a few different factors that have contributed over the years to the current Gold Coast property market trends.

First of all, the lack of housing stock available made the existing options much more desirable, especially those in valuable locations such as waterfront suburbs.

There has also been an increase in infrastructure development on the Gold Coast over the last several years, which has attracted tourists, and investors along with them. Investors from both Australia and countries overseas, like China and the United States, have seen potential in the Gold Coast, and have started to develop housing options as well as commercial structures in the area.

Opportunities Abound With Gold Coast Property

As property values continue to shoot up, now is a great time for buyers to start looking for a home in the area, before prices increase even more.

Living on the Gold Coast combines the high energy of living in a large city with the calm, laid-back vibe of living by the ocean.  Might be time to take a closer look as part of your investment strategy?

Buying a home for the first time is very exciting, but it can also be very overwhelming. There are many different things to consider and big decisions to make. It is important to properly prepare, do your research, and rely on professional advice when you need it. Here are five first home buyer tips to help you get started.

1. Decide what you really need out of your home.

You have so many different choices when it comes to deciding what kind of home is best for you. Do you want a larger home out in the suburbs, or are you better suited to a cute urban bungalow? Before you get started, write down a list of what’s really important to you. This could include location, size, amenities, proximity to things like schools or shopping, and more. Make sure to include your family in this conversation if they are purchasing the house with you.

2. Give yourself time to save up before the purchase.

Even though you will most likely be taking out a home loan to finance your purchase, you will still have to put down a significantly large down payment. There’s more to it than just making sure you have the money – you’ll want to make sure you still have enough after you make the payment to live comfortably and finance any other home-related expenses, like buying new furniture or fixing up any problems with the house.

3. Be aware of your credit.

We all know that credit can affect our ability to take out a home loan, but sometimes we just don’t manage it the way we should. If you are even considering buying a home in the next five to ten years, start to prepare by paying off all of your bills on time and dealing with any large credit problems. If you still are struggling with credit when it comes time to buy a house, talk to your mortgage broker. They can help you find a solution.

4. Manage your cash flow.

Buying a home is a huge responsibility, and your mortgage payment can really change the way you approach your finances every month. Avoid future problems by making budgeting a habit, and keeping a close eye on where your money goes every month. You may need to cut out some extraneous spending, but you’ll feel better knowing that your finances are rock-solid.

5. Document your income and your taxes.

In most cases, you will need to show proof of your income and your taxes from the past year to buy a home and take out a loan. About a year before you make a purchase, start gathering the records of your income together, so that you have everything all in one place when you need it.

A home loan comparison rate allows you to work out the true cost of your home loan by comparing the total cost among other banks. By law, all lenders must include “comparison rates” in their advertisements for home and personal loans to avoid consumers from being misled when it comes to choosing a home loan.

A comparison rate takes into account the total yearly cost of a loan, not just the interest payable. This number includes the cost of any fees and places them into one easy to compare rate. This means that you could be looking at two loans; Loan A and Loan B which both have a Standard Rate of 3.74%. It would seem based off of the standard rate that both loans are the same and either choice would be ideal. When you look at the two loans’ Comparison rates, however, Loan A has a comparison rate of 4.07% while loan B’s comparison rate is just 3.74%! Clearly, Loan A has a range of fees tied into it and this is something you should be aware of.

Are home loan comparison rates the only thing to take into consideration when choosing a home loan?

No. While it can be tempting to get caught up in the numbers and choose the loan with the lowest comparison rate, this could turn out to not work in your favour. A comparison rate only compares the upfront pricing of a loan. It does not take into account early repayment fees, government charges, as well as the various features a loan could have such as redraws and offset accounts and repayment flexibility. These vary widely among loans and can have a significant impact on the overall cost.

The selection of the best home loan for your situation is all part of a larger evaluation process – it’s not just a matter of selecting the loan that looks the best on paper. To truly maximise your savings and work within your needs, it is best to consult with a professional mortgage broker such as Seajay Mortgage Brokers. We can help you select the best loan for you without any additional fees or charges from us.
Get in contact with us today!