Hi all,
I know this isnt for an IP as such, but my partner and I are looking to purchase a house together in SA for around 400k.
I was wanting to know what we need to look for in a loan and what questions to ask, or sneaky things we should watch out for.
We have a combined income of approx. 100k and have nearly that much for a deposit too.
I understand that one of us will forgo the 7k FHOG if we purchase together and Westpac will do 7.37% Variable and 7.35% fixed upto five years with restrictions. We plan to pay $1,500 a fortnight.
Other than that, any information hoffered would be appreciated!
Thanks!
~ Rob
Are you interested in using a rate lock to protect you from the fixed interest rate changing before your loan is approved. Westpac provide this for a fee of 0.15% of loan amount for $300,000 cost is $450.
Are you going to have to pay mortgage insurance.
What Stamp Duty and extra hidden costs (allow about $20,000) fees will you have to pay upfront to SA Government or bank and will westpac let you add it to the loan ?
Are you going to have the premier advantage option which has a higher fee but you get a discount on the interest rate?
Is there a monthly fee of $8 on your loan?Hi Brett,
No Mortgage Insurance will be required, as we have the good deposit to start with. We were looking to use about 60k for the deposit, 20k for taxes, etc and the remainder to furnish as we can.
As for the little ins and outs of the premier advantage option.. Im might look into that further… Im not saying we are going with Westpac, they have just been highly rec. by many people.
So yes…
Hi Stera. Sounds like an exciting time for you both – congratulations. If I had only one thing to say to someone it would be this very important point – (fact actually) The cheapest interest rate is not necessarily the best loan. You have obviously worked very hard to save and get in the position you have, so who is to say what you may plan to do in the next few years? A loan product that has no monthly fees, allows for you to 'split' it into a few different parts (ie, one as fixed interest, one as variable, and one as a Line of credit to use down the track for other investment purposes – Example only!!!!!) and perhaps allows you to direct salary credit may be what you need. You will find down the track you will be able to use your home to perhaps fund other personal and or investment expenses down the track so flexibility is important in this scenario. Enjoy your new home – all the best.
Rob
7.35% fixed for 5 years is not that attractive compared to the rest of the fixed rate market.
Richard Taylor | Australia's leading private lender
20% Interest Free Loan
Recently, there is a product in the market. It gives you 20% of the property value interest free.
Traditional Homeloan 400k
Deposit 100k
Loan Needed 300k
Repayment $2,297/monthAdding EFM to Make Purchasing A Home Affordable
Property Value 400k
Deposit 100k
Loan Needed 300k
EFM (20% of the Property Value) 80k
Traditional Homeloan 220K
Repayment $1,745.15/monthThe EFM (Equity Finance Mortgage) is free (zero interest). So you will get a free $68,000 to purchase your property.
However there is a catch. When you sell your property and the property increases in Value you have to pay 40% of your profit to the EFM. So for example the property increases in value to $450,000. You need to pay = ($450,000-$400,000)x 0.4
= $40,000 x 0.4
= $16,000 plus EFM ($80,000)
= $96,000So you need to pay back $96,000 to EFM when you sell your house. I think the idea is good for people who wants to buy a home but has limited amount of deposit. And you will keep the EFM as long as you want until you sell your house.
For a free Consultation, give me a call on 0413 594 675.
Thank You.
Equity Finance & Mortagages Pty Ltd Mob: 0413 594 675
Mortgage Advisor20% Interest Free Loan
Recently, there is a product in the market. It gives you 20% of the property value interest free.
Traditional Homeloan 400k
Deposit 100k
Loan Needed 300k
Repayment $2,297/monthAdding EFM to Make Purchasing A Home Affordable
Property Value 400k
Deposit 100k
Loan Needed 300k
EFM (20% of the Property Value) 80k
Traditional Homeloan 220K
Repayment $1,745.15/monthThe EFM (Equity Finance Mortgage) is free (zero interest). So you will get a free $80,000 to purchase your property.
However there is a catch. When you sell your property and the property increases in Value you have to pay 40% of your profit to the EFM. So for example the property increases in value to $450,000. You need to pay = ($450,000-$400,000)x 0.4
= $50,000 x 0.4
= $20,000 plus EFM ($80,000)
= $100,000So you need to pay back $100,000 to EFM when you sell your house. I think the idea is good for people who wants to buy a home but has limited amount of deposit. And you will keep the EFM as long as you want until you sell your house.
For a free Consultation, give me a call on 0413 594 675.
Thank You.
Equity Finance & Mortagages Pty Ltd Mob: 0413 594 675
Mortgage AdvisorHello
Be careful if you decide to go for a "cheaper" loan. The smaller companies often have c$#$#p service and if you have a 30 day settlement you end up into forced delays due to the incompetence of the bank (this has happened to me in the past). In some ways you are better off getting a loan through the big banks because they generally get the job done quickly.
Another thread had the story of how imcompetent RAMS is so I would never go near them. Do a search on here hopefully there's lots of stories good and bad to help you decide the banks that provide reliable reasonably quick settlement.
At the end of the day saving .2% may not be worth it if the bank screws you around and delays settlement.
Ah Eric is it. Are you refering to the Adelaide Bank Shared Equity scheme.
If you are then Yes we are well aware of it and I was the first broker in Australia to write a deal under the product.
In fact it settles tomorrow and is Rismark's first settlement.If you care do to a search on previous posts you will be aware most forumites are aware of the product.
Should be exicting when it gets opened upto investors.However just to correct your post.
"So you need to pay back $100,000 to EFM when you sell your house. I think the idea is good for people who wants to buy a home but has limited amount of deposit. And you will keep the EFM as long as you want until you sell your house"
The maximum period for the EFM is actually 25 years so if you havent sold by then you will need to refinance the loan.
Richard Taylor | Australia's leading private lender
If you need to know about the loan interest free scheme, I will be available online and mobile. Drop me an e-mail at [email protected] I will process the loan in 2 minutes.
Equity Finance & Mortgage Pty Ltd
Mobile Mortgage Advisor mob: 0413 594 675If you need to know about the loan interest free scheme, I will be available online and mobile. Drop me an e-mail at [email protected], I will process the loan in 2 minutes.
Equity Finance & Mortgage Pty Ltd
Mobile Mortgage Advisor mob: 0413 594 675I think I will not deal with the bank. I like to deal with mortgage consultant because most of the time provides you will get with extra services such as
– you do not have to line up
– provides you one to one selling
– gives you priority
– Visit youEquity Finance & Mortgages Pty Ltd
Eric Mob: 0413 594 675
Mobile Mortgage AdvisorHow far do you go to visit your clients Eric ?
Might have a couple who would like to see a mobile MB
Richard Taylor | Australia's leading private lender
Well I visit the client most of the time. Do you anyone to refer to me?
Sure they are in WA are you ok with that. Are you Licensed to do business in WA.
Richard Taylor | Australia's leading private lender
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