Archives for February 2016

Lenders Mortgage Insurance

What is Lenders Mortgage Insurance? Lenders Mortgage Insurance (LMI) is a fee charged by the lenders, generally when your deposit is less than 20% of the purchase price. LMI can be paid as a once-off lump sum at the time of settlement but in many cases it is added into the loan amount and paid off over the life of the loan. This is known as 'capitalising the LMI'. Why is Lenders Mortgage Insurance charged? Even if you have a strong credit history and have always paid your bills … [Read more...]

What is an Offset account?

What is an offset account? A 100% Offset transaction account can be a great tool to help you save interest on your home loan. Depending on your lender, it can work just like any other bank account with money coming in and money going out. Like a normal transaction account, you can deposit and withdraw funds from your offset account whenever you like via eftpos, atm, internet banking or visiting a branch. However, because it is linked to your home loan, it can help you reduce the amount of … [Read more...]

What is a Fast Refinance and how do you get one?

You’ve reviewed your options and made the decision to refinance. After all, it looks like it's going to put almost $5,000* a year in interest charges back into your pocket. Why wouldn't you go ahead?! Your application has been approved, you’ve signed the loan documents but now your existing lender is delaying the process. They don’t want you to discharge your home loan and they’re doing everything they can to hold up the process. A "fast" refinance might be the solution. A "fast" … [Read more...]

Always read the Fine Print

We get it. Reading the fine print of a contract can be particularly boring. Especially when you’re bursting with excitement to get into your new home and work out the best place for your brand new couch. But, it pays to be thorough. With regards to the Contract of Sale for your new property purchase, we always recommend you seek legal advice. It's extremely important you understand what you're agreeing to and what's included (and not included) in the agreement. Here's just a few things … [Read more...]

Increase your savings: it’s all in the planning

We all know it's important to save money. Whether it's for a 'rainy day,' an unexpected event, or to help you buy a house at some stage. Here are a few tips to help you ramp up your savings effort. Put your goals in writing: Setting a financial goal will make it much easier to save. Make a conscious effort to track your expenses so you can see where your money is going and cut back where you can. Some of us actually have no idea where our money is going, until we properly analyse … [Read more...]

RBA Interest Rate Decision – February 2016

At its meeting today, the RBA Board decided to leave the cash rate unchanged at 2.0 per cent. Here's part of the statement issued by Glenn Stevens, Governor: Monetary Policy Decision. Recent information suggests the global economy is continuing to grow, though at a slightly lower pace than earlier expected. While several advanced economies have recorded improved growth over the past year, conditions have become more difficult for a number of emerging … [Read more...]