Posts Tagged ‘Loan Types’

Capped Home Loan

April 22nd, 2010 47 Comments
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Capped Home loan“Capped”, it usually means that there is a limit or there is a certain boundary that cannot be crossed.   A capped loan similarly would mean that the interest rates have a limit set to them, and cannot go above a certain point.  This is of course limited to a certain period, which may be a number of years.

Due to the fact that a loan is capped, this simply means that no matter how high the interest rate goes up, the boundary is what would have been agreed upon in the capped loan contract.  However, when interest rates go down, the interest you pay can also go down.  This is because the cap is only applicable upwards and not downwards.

Currently, most capped home loans on offer have a 7.5% cap until 2012.  Any interest above 7.5% would not be allowable.    The lowest capped loan on offer is set at 7.49%, so one has to decide based on the product features which capped rate loan would be most suitable. The expert consensus, however, seems to be that interest rates will stay low for the next few years. These rates will then slowly go up once again as the effect of the subprime mortgage crisis in the United States slowly settles, and the real estate market begins to recover.

People who are on the fence can therefore, take a chance with this loan product.  It has the flexibility of a variable rate loan, and the cap is akin to a fixed rate loan where the rates are inflexible.

With the help of the experts on home loans, it would be much easier to gain access to a capped home loan.  They can also advise you if getting such a loan would be wise, and even offer different products which may compare in price to such a loan.  So do not hesitate to try and benefit from various home loan products, as they could save you a lot of time and effort.

No Deposit Mortgages for Easy Loans

April 21st, 2010 104 Comments
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In essence banks and lenders do require a deposit of around 20% before they approve loans of any kind.  This is to ensure that they are not exposed to too much risk, understanding that no deposit loans is very risky business.

However, it is a fact that there are ways to get a 100% deposit home loan.  This does not mean that they come at the same price.  Because of the additional exposure taken on by banks there are usually additional costs to these no deposit loans, but several people are willing to pay these additional costs in order to get into the real estate market earlier.

So what are the ways to get a no deposit mortgage?  There are a number of strategies that work.

One way is by paying LMI or what is commonly known as Lender’s Mortgage Insurance.  The payment of premiums for this type of insurance can eliminate the need for a 20% deposit.  It is a win-win situation as banks are protected from risk, while at the same time borrowers don’t need to save 20% deposit and can get into the real estate market as quickly as possible.

Another means of getting a no deposit home loan is by mortgaging another property.  The other property will serve as replacement for the deposit, and works in the same way as LMI in reducing the risk that the bank is exposed to.

Finally there is the guarantor.  The guarantor will pay where the borrower will be unable to pay.  With the help of a guarantor no deposit home loans are possible.

We at the home loan experts have access to all these types of no deposit mortgages.  We can help you select what we feel will work the best for you.  If you want to learn more about these types of loans, do not hesitate to contact us.  We will answer and provide you with quality information based on your enquiries.

Owner Builders in Australia

April 21st, 2010 18 Comments
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Australians are known for their innovation and the desire to live the Great Australian Dream of owning a home on a 1/4 acre block of land.  While most people choose to pursue this dream by buying an existing house, some choose to build their homes to their specifications and with their own designs.  They likewise would want to handle the ordering of materials, the scheduling of construction, and other details on their own.

These people are the owner builders of Australia, who build their own homes from scratch without the help of construction companies or licensed builders.  Such a practice has become a growing trend, and a lot more people are choosing to go at it on their own and enjoy the additional control and extra savings.

The only limitations you have is your creativity, the budget you have and in some cases the lack of creativity of the local council!  Aside from that you are totally in control.  However, this control can sometimes work against you, as there is always a tendency to overspend when it comes to the finishings of your home. Who wouldn’t want their home to be perfect?

Owner builder home loans

There are a lot of joys and advantages to being an owner builder.  However, one of the main disadvantages is the difficulty of procuring a home loan.  This is because banks and non-bank lenders are somewhat wary of financing an owner builder project.  There are more risks involved, and there is no guarantee that the project will be finished, hence the apprehensions of the major banks.

With the help and aid of specialist mortgage brokers such as the Home Loan Experts, you will be provided with sufficient choices of lenders who trust owner builders and allow them to borrow enough to complete the project.  You can view their webpage on owner building or call them on 1300 889 743.

How does the process work?

If you don’t understand how the process of building a home actually works, then we would strongly recommend that you read the Owner Builder Guide. This will explain the steps involved in building your home, and how to get the most from your sub-contractors and suppliers.

Happy building!

90% Home Loans Available

March 25th, 2010 54 Comments
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When getting a loan, especially for your first home, you would like it to be as easy on the budget as possible.  This is because if it is a first home purchase, this would mean that you are just starting out, and you may not be as financially capable now as there are a lot of expenses to attend to.  The nice thing about purchasing your first home even on a loan is the fact that the government is more than willing to help out.  First home buyers often get a home owners grant, and discounts on lenders mortgage insurance.

Another thing about purchasing a first home is it would be ideal to pair it with a 90% home loan.  These loans are the most common, and banks and lenders are not that conservative when granting first home buyers a 90% loan.  Of course they require some items such as at least 5% genuine savings, and deposits are normally required especially without LMI premium payments.

Of course whether or not to pay LMI is a personal decision, and not necessarily required when applying for a 90% home loan.  This is particularly true where a deposit has already been made, as LMI is often required only when no deposit, or only a minimal deposit is made.

Those who are financially capable may try for an even larger loan of 95% of the value of the property, in that way they only need to worry about 5% of the purchase price as the 95% in already covered by the loan.

For more information on 90% home loans it would be best to consult the experts on home loans.  They can provide you with the necessary information required on how to get a 90% loan.  They can likewise advise and update you on the benefits and discounts that first home owners get when purchasing their first home.  In this way your dream of owning your own home may finally become a reality.

Home Loans at 85%

March 24th, 2010 22 Comments
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There is no question that needs of people change and should be flexible and be able to adjust to the times.  The same thing goes for loans. Through the years the number of home loan products have grown to adjust to the changing times and changing financial climate.  Furthermore, the real estate business has been booming in Australia hence because of intense competition banks and lenders are busy formulating and developing products to suit the different tastes of the various borrowers.

Now the banks and lenders have come out with a new product which is the 85% home loan.  This loan is perfect for those who would like to purchase a dream home without worrying too much about strict compliance with the requirements that banks and lenders often require.  There are just certain requirements that one must meet before being allowed to get this type of loan.

The first thing to ensure before getting this type of loan is that you have a clear credit history.  Those who have a line of bad credit need not apply.  You should also have a regular source of income and a stable employment.  Hence, those who are on probation, or are only employed casually or on a project basis cannot qualify.  Because the loan is set at a fairly high 85% of the property, you should make good money with whatever employment or business you have before your loan is even approved.  Assets to support your income are likewise a plus, and if you have enough then it is highly likely that your loan will be approved.

For more information on how to get an 85% home loan it would be best to consult the experts on home loans.  They can assist you in fulfilling the necessary requirements in order to get an 85% home loan.  With their guidance, they can take you step by step through the loan procedures, and increase the chances that your loan is approved.

Loans while in Bad Credit

March 24th, 2010 21 Comments
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Bad days and good days are common in life. This also applies to the income we earn and the unpredictability of certain circumstances such as our health, natural disasters, death, and other events beyond our control.  Due to this fact, there are times when we are in good credit, and have a good credit score, and in other instances we have to cope with bad credit.  Once in bad credit loans become scarce, and hardly are offered.  Your bad credit rating has made most banks and lenders avoid you like the plague.  This is normal as banks and lenders are hesitant to take unecessary and uncalculated risks.  Dealing with a person already with a bad credit rating is a clear and obvious risk, and simply dealing with you would already be a mistake in their eyes.

Fortunately, there are other lenders who see your plight as an opportunity to make some income, and at the same time help you get a loan even when in bad credit.  Due to the risk involved they may charge you higher interest rates, but this is understandable as the risks in dealing with people with bad credit are substantially higher.  The problem is there are only a handful of these non conforming lenders, and they may be hard to find.

To enable you and help you get a home loan while on bad credit it would be best to consult the experts in home loans.  They can lead you and help you find an appropriate lender who is sympathetic and understands your situation.  They can show you the proper steps to be taken to get a bad credit home loan.

Great Information on Home Loan Forums

March 3rd, 2010 3,063 Comments
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When you are looking to get a home of your own, you are willing to do a lot of research on the options available to you.  This is because buying a home is usually the most expensive purchase of your life, and any savings made because of a cheap loan can be substantial.

The first steps to take should be to look for a home that is ideal for you and your family.  Once you find the home that you feel is within your budget, then try to look for information on home loans.  However, be prepared as you may be in for a shock.  You may be shocked to find out that there are a whole lot of home loan products out there.  Going through each and every type of loan product, and understanding each and every product will take a lot of your time and effort.  To this, also add the fact that the terms used in real estate and mortgage industry are not that easy to adapt to.  This is especially true if it is the first time that you are getting a loan.

The trick is to find a place where you can get quick and reliable information on the different types of loans available.  You could read home loan articles, go to each bank and lender, or you could simply visit home loan forums.  When you visit these forums you will have instant access to information on nearly every type of home loan.  Of course, familiarization is important so a little research on certain terms should do a borrower good.  Once you’ve done your homework you already have an idea on what type of home loan you would like to get.  Armed with that information feel free to ask away on home loan forums on whatever loans you are interested in.  The response should be quick, accurate and helpful.

Once you get the information you require, then you may begin your loan application and take the first steps to owning the home of your dreams.

Get the Right Home Loan

June 22nd, 2009 27 Comments
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When you are getting a loan to buy a home, there are many things you need to learn. With many different types of loans programs with various fees, terms, conditions, and guidelines that are require in order to obtain a loan. You need to be a well informed shopper.

Your Loan officer has many things to do, there is much paperwork involved. Appraisals, title search, and closing documents to be prepared. Ask your lender to tell you about each and every loan you qualify for. After you know all the options, and programs available you can make a well informed decision, and obtain the loan that is right for you. Do you want a fixed rate or an adjustable interest rate mortgage? Do you want a 15 or 30 year term? Once you learn about the different types of loans, these will be a few of the many questions you will be able to answer.

Purchasing a home is a big decision, and getting a mortgage to pay for it is a long term commitment. So a welled informed home buyer is a happy home buyer. Before you go out looking for that new home, go see a loan officer and get a preapproval.

This will give you a guideline of much money you will be able to borrow, and what type of home you can afford. Many Real estate agents, and sellers, will not show you a home for sale unless you are prequalified. Everyone time is very valuable so you don’t want to waste it by looking at homes you can’t buy. That is like window shopping it’s no fun. When looking at homes ask about any special financing that may be available for that home. Some sellers may have special arrangements with a particular mortgage company that can save you a lot of your hard earned dollars. Everyone needs a place to live so after you find your dream, and make your purchase using a knowledgeable and helpful loan company. And you have the perfect financing in place you can then turn your new house into a home and make your dreams come true.