1.. To save money
By far and away the biggest reason people chose to refinance their home loan is ‘To save money’. Lowering your mortgage payment can also save you hundreds of dollars per month that could be used to pay your home loan off faster, pay for the kids education, update your car.
What would you spend the extra savings on?
2.. To access funds for various personal or financial goals
Other uses for a lump sum in cash are literally endless – you could use your equity to buy your family that long overdue overseas holiday you’ve always wanted or even use it to invest in a business or shares
3.. To release equity for property investment
Property investment is currently one of the most popular ways of building wealth for your future. Whilst saving the deposit to purchase a second property may be difficult for many, rapid rises in property values over the least few years has provided an opportunity for many to refinance and release equity in their home to use as a deposit instead.
4.. To renovate or extend your home
Renovating or extending your current home to meet the needs of your growing family or changing lifestyle is often a better option than purchasing an entirely new home. By renovating or extending, you will be able to create the home that exactly meets your needs and if you’re careful about the improvements you make, perhaps even increase its value at the same time. Even though you will need to access your equity, you may in the end also improve the value of your home to offset this cost.
5.. To consolidate debts
Your home loan interest rate is probably the lowest form of interest you will need to pay on any loan in Australia. Credit card interest rates can be as much as four times higher than your home loan interest rate and this can make credit card debts difficult to pay off. Other expensive debts like car loans or personal loans can also prove to be a drain on your finances.
Click here and let’s see what is possible
Did you know that $1,000 extra on your Credit Card limit can reduce your borrowing capacity by up to $5,500 with some lenders? This can mean the difference between owning a property and not.
Let’s assume our client, Ian, earns 80Kpa. and has a credit card of 10K, no other debts and is single…Now, let’s see how much we can borrow with this 10K card limit and for the exercise we’ll pick Homeloans Ltd as the preferred lender…
10K = 520,074
9K = 524,429
8K = 528,783
7K = 533,137
6K = 537,492
5K = 541,846
This shows that for every $1K of extra credit card limit, your borrowing capacity in this instance reduces by approx. $4350.
TIP: When your bank sends you an invite to increase your credit card limit have a bit of a think before blindly accepting their offer. With this example, bigger was to better.
Conveyancing is the process under which the ownership rights of an estate of land is transferred from seller to purchaser.
The primary role of the conveyancer is to ensure that the property is transferred to the new owner free of any other interests. Secondary to this the conveyancer co-ordinates on time settlement of the transaction by liaising with each of the relevant parties (the vendor and his/her conveyancer, lender, real estate agent, and the purchaser and his/her lender, and the settlement agent).
The conveyancing process starts on the signing of the contract of sale and concludes with the successful post settlement Registration of the Certificate of Title.
When acting for a purchaser who has signed a contract, the conveyancer undertakes the following:
1. Conducts a Title search to obtain up to date information as to a. the registered owner of the property b. encumbrances registered on title, and; c. any dealings affecting the Title but not yet registered.
2. Investigates ‘Off Title Restrictions and Interests’ including but not limited to: a. Zoning (permitted use) b. Rates & outgoings c. Road proposals via Vicroads d. Heritage e. Land Tax f. Building approvals
3. Review & validation of the Section 32 Vendor’s Statement & The Contract
4. Manage Section 27 Deposit Release request
5. Arrange for discharge of the vendor’s mortgage and any caveats over the property prior to, or at settlement.
6. Provide a Statement of adjustments covering apportionable outgoings to be paid at the day of settlement.
7. Preparation of Transfer of Land documentation
8. Co-ordination of final inspection
9. Co-ordination of the settlement appointment. 10. Attends settlement and the exchange of documents.
Post settlement the conveyancer:
1. Prepares a Notice of Acquisition for the local Council and water authority.
2. Completes Title registration
3. Co-ordinates payment of Stamp Duty.
Thanks to Craig Hemer
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