Articles Archives - Page 2 of 30 - MO'R MORTGAGE OPTIONS

2023: Interest rates and the economy

Despite many experts weighing in on the debate as to where rates and the economy is headed, there’s still varying opinions as to how - and when – things will play out. Rather than adding to the noise on interest rates, we’re not going to add our own predictions here. Instead, we’re going to summarise the key thoughts and ideas being shared by leading economists, so you can get an idea of where things might be headed. What can we expect for the rest of 2023? Market commentators … [Read more...]

Which one should you choose – redraw or offset?

Both redraw facilities and 100% offset accounts can help to reduce the interest incurred on your loan, but they work in different ways. Let’s take a closer look to see which option might be appropriate for you. What is redraw and how does it work? A redraw facility allows you to make additional payments into your home loan, and then access these funds should you wish to take them out of the loan at some point later in the future. For example, just say you received … [Read more...]

Before you return that phone call from “Lenny” the lender, please read this

We’ve spoken to a few clients recently who have received phone calls from their lender. It all starts out innocently enough. ‘Lenny’ wants to know if you’re happy with your current loan. He wants to know if things are all ticking along as they should. And he wants to know if there is anything he can help you with. The next thing you know, you’ve been locked into a fixed rate loan you weren’t sure you actually wanted or you’ve somehow agreed to increase your credit card limit. We don’t … [Read more...]

What makes your debt tax deductible?

There are two kinds of debt in this world: the kind that is tax deductible and the kind that isn't. Knowing the difference and how to structure your finances accordingly, can significantly improve your cashflow, opportunities and overall financial position. So what makes debt tax deductible or not? Non-tax deductible debt Let's start by clarifying that we're talking about whether the interest on a debt is tax deductible. A non-tax deductible debt (also known as 'bad debt') … [Read more...]

Why can’t I borrow as much as I’d like to? (Ways to boost your borrowing capacity)

When lenders determine your borrowing capacity, there’s a few factors they take into consideration. We take a closer look at each of the factors here. It’s helpful to understand what factors might be limiting your borrowing capacity, should you wish to maximise it. Income When performing servicing calculations, a lender is simply trying to determine that at the end of the month - after your income has come in to your account and living costs/monthly commitments have come out – … [Read more...]

Does your pre-approval give you the buying coverage you think it does?

You know that conversation you had with your local bank? The one where you walked away from the appointment thinking you were pre-approved? Well, we’re sorry to be the bearer of bad news. But there’s a fair chance you’re not as covered as you think you are. Your pre-approval may not be a pre-approval after all If you haven’t provided recent payslips or supporting documents and/or you haven’t signed a loan application, there’s a very good chance you don’t actually have a … [Read more...]

What is a credit file and how can it impact my loan application?

What is a credit file/ report? A credit report is a statement that summaries your personal credit history and provides a snapshot of your current credit accounts. Lenders use your credit report as part of their decision to approve (or decline) your application for finance. What kind of information does my credit report contain? Your credit file shows all credit accounts held in your name over the last few years (for example - credit cards, later-payment accounts, personal loans, … [Read more...]

3 things you need to do now if you have a fixed rate loan

If you currently have a loan that’s fixed at a rate much lower than variable rates, you may be feeling quite comfortable with your position right now. As variable rates continue to rise around you, you’re happily sleeping at night knowing that for the next 6/12/24 months, your interest rate – and monthly repayment – will remain the same. However, now is not the time to be complacent. Because when your fixed rate loan term expires, you will need to be prepared – and able to pay for - quite a … [Read more...]

Increasing Interest Rates: What can you do about it?

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4 things you can do now to prepare for a property purchase

As the saying goes, ‘What goes up, generally comes down.” Given we’ve seen record growth in property prices over the last few years, it’s not inconceivable that we may see a flattening (or evening out) of property prices over the coming year. 1. Start your research now What are you looking for in a property? If it’s a home to live in, where do you want to live? What features are you looking for? What’s your list of non-negotiables? Being able to answer these questions should form … [Read more...]