Package-loans-VS-basic-loans-under-variable-rates

Package Loans VS Basic Loans Under Variable Rates

The mortgage market is full of options as lenders try to attract business in a competitive landscape.
Getting advice from a mortgage broker can be a great way to get an idea of what type of home loan will suit your situation, but it’s also good to educate yourself on the types of products that are out there.
Let’s take a look at two main categories when considering a home loan product: package loans versus basic loans.

Do good things come in packages?

Package loans have become very popular in recent years and account for more than 50% of loans written by major lenders.
Package loans usually combine your home loan with other common financial products, which may include a mortgage offset account, transaction or savings account and credit card. They are eligible for interest rate discounts off the standard variable rate, fee waivers on loan approval and valuation fees.

Basic home loans are not packaged with anything. They are ‘no-frills’ loans where you save money on upfront and ongoing fees, because you don’t have the flexible features that cost more to administer but often allow you to save much more money long term.

What a fee-ling

In return for packaging products, lenders will make it worth your while by charging one annual fee for multiple loans, rather than separate fees for each product.
If considering a package loan, find out whether that one annual fee includes the other home loan fees you may not know about, such as an application fee, property valuation fees, redraw fees, switching fee (from variable to fixed and vice versa) and offset account keeping fees. Other fees to be aware of are the application or establishment fee, bank solicitor fee and settlement fee, when setting up your home loan.
These can vary in price, but average between $150 and $700. They are usually nonrefundable but major banks are often happy to waive these fees, so make sure you ask ahead or negotiate, as this could be the difference between choosing a package or basic.

Rate expectations

Banks will often give you a discounted rate for package loans. Market comparison platforms generally find that interest on average package loan products is between 0.25% and 0.5% lower than average standard variable rate loans.

That saving alone is more than enough to make up for the annual fees which can be higher than what you would be charged for a basic loan.

Unique borrowers can benefit

Flexibility is the key for borrowers such as property investors or the self-employed who want to free up cash flow and maximise future borrowing power. Features such as interest only repayments, line of credit and others will appeal to investors as long as they choose the package that suits their strategy, while credit cards and transaction accounts are useful to small business owners.

Break it down to the basics

So when would it be better to shun a package for a basic home loan? You may just want a simple, no frills home loan that you can quietly pay off. 

Basic loan products will likely offer you the low interest rates you want, but there may be loan features and loan flexibility that you may not realise you need.

 

 

Refinance-cash-rebates-What-you-need-to-know

Refinance Cash Rebates – What You Need to Know

A lot of banks seem to be offering cash incentives at the moment to tempt you to jump ship from your current lender and refinance with them.

Sums of between $1000 and $4000 are being offered up for borrowers that could use some extra funds in their account, with the added bonus of switching to (at least what they think) will be a better deal.

But just because they throw you a wad of cash, it doesn’t mean you’ll be better off over the long term… or even the short term.

Why do banks offer cash?

These incentive deals, nicknamed ‘cashback loans’, but actually known as refinance cash rebates, usually pop up in a competitive market for lenders. Banks need your money on their books and in times like these, when interest rates are so low, more people than ever want to be paying off a mortgage. It is also a time of unprecedented disruption in the mortgage space. Online only banks, second tier lenders and financial startups are emerging for a slice of the market. So banks need to stand out from their competitors.

At some point, banks came to the conclusion that offering cash was a good incentive. Maybe borrowers would be low on funds at the moment due to the strains of COVID, or would like the opportunity to pay off a bit of debt, or even buy something they need without having to use credit.

The survey says yes… sometimes

A recent study found that one in three borrowers were planning to refinance in the coming months. Of these, one in four surveyed would choose a cashback offer over a low interest rate. One in three millennials would opt for cash, but just one in 10 baby boomers.

Overall though, nearly half of the borrowers surveyed (46%) would opt for the lower interest rate over a cash rebate.

The good news for borrowers at the moment is that you may not have to choose one option or the other, because you can now get cash rebates on loans that already have super low interest rates.

What you should use the rebate for

The whole point of a rebate is that it is there to cover the costs of moving loans to another bank.

And there are quite a few costs involved. You will incur such expenses as government fees for discharge of title, discharge of mortgage, title registration, costs of title searches, settlement fees and solicitor documentation fees. If you go ahead and break a fixed rate mortgage term, you will also incur early exit fees.

So if you do opt for a loan with a cash rebate, don’t start planning your next holiday or big retail purchase without first covering off those costs.

Of course, putting that rebate straight back into your loan will save you even more when interest is taken into account.

For your consideration

While the rebates are usually enough to cover the costs of switching lenders, the savings made could dry up quickly if the loan is less flexible than your previous one, or if it doesn’t suit your specific needs.

Lower interest rates add up to significant savings over the life of a loan, usually much more than a few thousand dollars’ worth.

Of course, not many people these days choose a loan and stick with it for the full term – you may change homes a number of times – so if you refinance regularly, you can make good use of the incentives on offer at any given time.

Before you do take the plunge however, make sure you read the fine print. Most lenders will have a minimum loan amount that qualifies for the rebate. If you have a relatively small remaining balance on your loan, you may not qualify as it may not be worth their while to get you on board for a small amount only. Also, many of these deals are restricted to owner occupiers only, so if you are building an investment portfolio, you may not be eligible.

Independent financial advice will help you decide your best option.

 

 

Home-Expenditure-Measure-(HEM)-explained

Home Expenditure Measure (HEM) explained

There have been stories emerging in recent years about banks getting a little too familiar when assessing home loan applications. “Why did you spend all that money on duty free at the airport a few months back?”
“That was a big bill at that fancy restaurant, how often do you dine out at the top end of town?

These may not be exact quotes, but they are the types of questions people are being asked when applying for home loans these days. Don’t worry, the bank’s loan assessment team aren’t following you on flights or spying from adjacent restaurant tables, but they do have a forensic level of access to your expenditure.

It’s a far cry from the days of banks just approving loans that are around five times your yearly income, give or take a 2.25% repayment buffer in case of a rate rise or rainy day.

Times have changed

A decade of events like the GFC and royal commission on banking have forced banks to get serious about responsible lending. Regulations have been put in place so stop borrowers being approved for finance they are unable to cope with.

Meanwhile the ready availability of more and more consumer behavior data makes it easier to predict if you will be unable to service a loan. One feature of this brave new lending world is that lifestyle expenses are now taken into account when assessing loan applications.

You might say “I work hard, I can afford a mortgage, what I spend my spare money on is my business”. Well that’s true, but who a bank lends money to is their business too, and they now have to make snap judgements on whether it’s wise – and legal – to lend money to you. So, like it or not, your lifestyle spending habits go hand in hand with your loan serviceability. And that’s where the Home Expenditure measure (HEM) comes into play.

OK, so what is it?

Dreamt up by an economic think tank a number of years back, the HEM is a standard guide that lenders use to estimate what a potential borrower might spend on annual living expenses. That figure may then be added to whatever algorithm a lender uses to assess a loan application. The HEM is believed to be used for the great majority of home loans applied for each year.

The HEM takes into account the borrower’s location, their dependents, their total income (some lenders include rental income as part of the total gross income) and the type of lifestyle they live. Most borrowers fall into the ‘basic’ lifestyle category, estimated to spend just over $32,000 a year, while those considered ‘lavish’ spend closer to $60,000.

Items considered ‘absolute basics’ include food and supermarket, coffee, lunches and takeaway, entertainment (includes cigarettes and alcohol), domestic and international holidays, hairdressing and grooming, media streaming and subscription services, phone, internet and pay TV, utilities, transport, communication, kid’s clothing, while ‘discretionary basics’ may be gifts, private health fund, private education, fashion and childcare.

The HEM calculates the median spend on absolute basics, plus the 25th percentile spend on discretionary basics.

How do banks use it?

Ordinarily, if you apply for a loan, the bank will ask you to estimate your weekly or monthly spend on various expenses. They then compare your estimation to what the HEM tells them about people with a similar profile to you (those living in your neighbourhood, with the same number of kids, similar income, etc).
To be conservative, the lender will often use the higher of the two estimated spends when figuring out whether you can afford the loan. 

Is it accurate?

Banks have been criticised for relying too heavily on the HEM because it is often deemed to underestimate what people spend on lifestyle and may therefore leave them stuck, unable to pay off a loan. Banks have therefore been pressured to take extra steps in conducting their due diligence in verifying spending.

That is where some of those questions about your big one-off splurges may be asked. You may “conveniently forget” to include some of your more frivolous spending habits in your own estimations, but be called to answer for them anyway, which may make you seem untrustworthy. Honesty is the best policy when applying for a loan.

 

 

ZIN-Last-Call-For-2020

Last Call For Property Finance In 2020

If you can remember back to when we were able to go to the pub, ‘last call’ always signified that the bar was about to close for the night and this was your last chance to get a beverage.

‘What? Already?’

The end of the night can creep up on you, because time flies when you’re having fun.

However, you don’t have to be having fun. Time can also speed by when there’s a lot happening…like the year 2020 for example.

We’d barely begun picking up the pieces from the deadly bushfire season, when we were thrown into pandemic panic… if you can believe it, that first lockdown was now more than seven months ago.

While it’s felt like a long year for many (shout out to our poor friends in Victoria especially), it’s about to be all over.

So ask yourself, when it comes to your finance goals, what have you been able to achieve?

And is there enough time to make the rest of the year count.

Bank backlog

If you were still planning to buy property this year, you’re running out of time. An average settlement period of six weeks would take you through to Christmas, and that’s after you’ve sourced the property and made a successful offer.

If you’re in a position to offer a shorter settlement to the vendors, you might be able to get the deal done, but if you need to borrow money from the bank, that could be a whole new kettle of fish.

The pressure put on the banks by COVID and its financial mess means many have a backlog of loan and other applications they will need to get through before assessing yours.

There are stories out there at the moment about buyers picking up great property deals, only to run out of time to settle before the bank is able to pick up and process a loan application that they would be all but certain to grant.

The flipside is that if you don’t need finance approved, you may be able to swoop in and pick up a property from an eager vendor while your competition struggles to get their finances sorted.

As government grants and economic stimulus begin to wind up, there will be a lot of people looking to offload assets to free up capital or get rid of some of their debt.

A motivated seller may mean you pick up a property for $50,000 cheaper than you otherwise would have and that will be money you have earned on the way in when the market gets back into the swing.

Get in shape for summer

There is never a wrong time to make sure your finances are in the best health possible.

Look at the interest rates you are paying on investment properties or your permanent place of residence.

Chances are, you will be able to get a better deal by refinancing, or even calling up your own bank and threatening to look elsewhere unless they give you a rate reduction.

Especially since the RBA dropped rates yet again. With the official rate set at 0.1% there are now lenders offering rates below 2% and RBA Governor Philip Lowe says it will realistically be at least three years before rates look like rising again, so you’re in a strong bargaining position for a better deal.

Prepare for next year

While you’re at it, look at whether you can get a better deal in other areas affecting your household budget.

If you have been with the same energy provider or health insurer for longer than a year for example, you are missing out on a better deal from elsewhere.

Pick up the phone and you may save thousands and make sure you’re ready to start the new year with maximum borrowing power freed up.

Set your 2021 goals now and get the jump on those that do so in January. Make plans and get what you need into place to make sure next year is a great one.

And talk to a Zinger Finance strategist to see what you need to do to get finance ready for your 2021 goals.

Emotional-Rollercoaster-Of-Signing-Your-First-Mortgage

Emotional Rollercoaster Of Signing Your First Mortgage

Whether you’re an owner occupier or an investor, signing off on your first mortgage usually comes after a lengthy ride on an emotional rollercoaster; a ride which doesn’t actually end when you sign the contract! No, it keeps hurtling along until settlement, and even then you are only just beginning to deal with decades of ups and downs that come with property ownership.

When you go through the process, it’s hard to believe that there are so many home owners already out there! How did they all do it?

Anticipation

The first leg of the property journey can be exciting. You have set a goal, know what you need to do financially to get there and now it’s just about making it happen by making sacrifices and saving money. Every savings milestone achieved comes with the reward of satisfaction and the excitement of that end goal becoming closer.

Feeling overwhelmed

Once you have saved enough for a deposit, the next stage can be tough because you’re flinging yourself into something you wouldn’t know the first thing about… mortgages.

There are so many products and lenders, with different rates and features, and you have no idea which is the right one for you. There are complex words, epic amounts of fine print to read and understand, and many potential roadblocks to your eventual loan approval. Don’t go in blind, engage a mortgage broker, as they will be able to show you the best options for you, empower you to make a choice and even set up the preapproval process for you. They will also demonstrate what different purchase prices would mean for your budget, which will help you realise how much you can actually afford to spend.

Hope and hopelessness

Now it’s time to find the property you want to buy. You hit up open homes, auctions and spend hours scanning real estate portals to find the right property. You begin each week with a spring in your step and feel a tinge of excitement every time a new listing lands in your suburb of choice; but as this continues on for days, weeks and months, the hope turns to doubt, the tinge of excitement becomes instant cynicism; and that initial hopefulness can flip to the opposite. Just ask anyone who was looking for a property in the middle of Sydney’s recent boom. Some were looking for more than a year.

The best thing to do is remember that it won’t last forever. And the joy you will feel when you finally get there will be worth it.

Four seasons in one contract

You’ve found the right home and made an offer within your budget. This part of the process is an emotional rollercoaster in itself. You feel excitement and nerves as you wait for your offer to be accepted, then joy when it is! Though this turns back to some anxiety when you realise there is still time for someone to come up with an offer over the top of you, so you need to get down there with your deposit and sign the contract right away. This can often mean a quick trip to the solicitor or conveyancer for final checks and read-throughs to make sure there is an appropriate cooling off period, in which time any outstanding pest, building or strata inspections can be done. This time between acceptance and signing the contract can feel like an eternity, but it is of the utmost importance that you get everything right. The stress turns to relief when the deposit changes hands and the contract is signed by both parties and you can allow it all to sink in.

Settlement city

The period between signing and settlement can be stressful too, as you may need to wait for final loan approval from the bank. The reality is that you have taken a sizable gamble and risk losing your deposit, and your new home, if something happens to cause your finance to be rejected by the lender. You realise that pre-approvals are much easier to get than official approval and there may be some back and forth with the bank in question if they need you to clarify spending or send further documents to prove you can make your repayments. However, if you have a good mortgage broker, they will have been on top of any potential hurdles and will also help explain and respond to further bank requests.

And when the settlement date arrives, it’s happiness, pride and relief all at once. You did it! And you have taken the first steps towards your future. 

The Difference Between A Financial Strategist And A Broker

When an average Australian feels sick, they go to a GP and if their situation is pretty standard, that GP finds them a solution. However when they have a unique issue that requires a level of expertise beyond the powers of that regular GP, they are referred to a specialist. Sure, the GP may have a good general understanding of the illness, but it takes someone who has dedicated their professional life to having the absolute BEST understanding of that area of medicine to get the patient the outcome that they need.

It’s similar when it comes to buying property. A first home buyer, upgrader, or any other would-be owner-occupier can visit a mortgage broker and find out the loan product that suits them.
It’s a simple fix. The broker has relationships with a number of lenders, they can negotiate interest rate deals with them and recognise aspects of a customer’s finance that may be the difference between getting a loan approved or rejected and make sure the necessary elements are in place before an application is made. They can then prescribe the lender best suited to the client (out of the ones in their ledger) for this particular property purchase. In short, they have a great general understanding of the mortgage world.

See a specialist


There is nothing wrong with a good broker, but not all will take the time to analyse whether the short term loan solution they are offering up is actually the best strategy for your long term goals. So, if you’re a budding investor who wants to make a purchase now, without affecting a long term goal to buy 6, 10, 20 or even more properties, a regular mortgage broker may not cut the mustard. You will need to see a specialist… a financial strategist.

A financial strategist can help you focus on the long game. You may want to buy your first investment property and quickly release equity to also pick up your second. A financial strategist can show you how to do this without running into problems in the future when you want to be financing properties 6, 7 and beyond.

Debt strategy


Financial strategists can help you build a debt strategy; which is a plan for both accumulating debt and then removing it in the following years to free you up for further investments. They can help you with ways to structure your debt so that banks will be open to keeping on lending you money. They can educate you on features that you may not have known existed, such as security swaps, portable loans, the best ways to use debt to maximize cashflow and minimize tax and even the odd tweak that could take you forward after being stuck with one or two properties only in your portfolio.

The ability to keep moving forward and expanding now will see benefits compounded by being more invested for longer and allow you to live life on your own terms in the future.

Talk to Zinger


At Zinger Finance we have a team of strategists that specialises in helping clients build large property portfolios. We can assist everyone from first timers right up to sophisticated property investors. The Property Investor Program includes a free financial health check; advice on how to reduce debt, free up equity and leverage assets; a long term financial strategy with a step-by-step action plan; ongoing care in the form of regular portfolio reviews to make smart adjustments when interest rates, laws, policies and regulations change; and a raft of other features. You can find us at zingerfinance.com.au, by calling the office on 1300 367 925, or emailing the team at info@zingerfinance.com.au.

 

What Is A Guarantor Loan?

What is a guarantor loan? Is it right for me? How does it work?

A guarantor loan could help you to buy your first property without a deposit.

But, is it right for you? And will it stand in the way of your financial independence further down the track

What is a guarantor loan?

Let’s say you are 18 years old. You have just come out of the probation period of a new job and are earning a regular income. You want to buy your first property but you haven’t been able to save up a deposit.

Your parents, on the other hand, have a house that they have paid off. Mum and Dad still have some working life ahead of them and want to help you get started on your property journey.

A guarantor loan would allow them to put up their property as collateral, along with the one you want to purchase, in order to cover the deposit amount.

This way, you could get finance for the property without needing to raise a cash deposit.

How does it work?

Each of you would have to get independent legal advice before executing this strategy.

Then, your parents would sign to give you access to their debt-free property to guarantee the deposit component of the loan.

Your parents’ property, and the one you are buying, would be cross collateralised, which makes you financially tied to your parents.

You would still be able to access whatever first home buyer benefits are applicable as the purchase would be in your name.

What implications are involved?

Madhu Ramana, CEO of Zinger Finance, says you should only use a guarantor loan as a last resort.  He says there are many implications involved in this sort of structure.

After settlement, your parents will receive information about every credit-related activity you undertake.

“Because your parents are guarantor on the debt, they will be exposed to everything you are doing on a credit note,” he says.

This means that if you want to release equity further down the track, apply for a credit card or apply for a car loan, they will need to sign off on it.

You are basically tied to their hip – they have to give their formal approval on every credit application you make.

Another major thing to consider is that, as a guarantor, they are exposed to extra risk. If you are self-employed and come up against major liabilities, they risk facing financial hardship or even losing their house. 

If your parents are close to retirement, the arrangement may impact their pension.

Who would it suit?

Guarantor loans may be helpful for young adults starting out in their career whose parents own their home outright and are middle aged. Often, it is the parents themselves who guide their grown up child in this direction.

Who wouldn’t it suit?

For self-employed people who face liabilities or sporadic income, guarantor loans wouldn’t be a good choice.

It also wouldn’t suit anyone, whether they be a borrower or guarantor, who wants to build a property portfolio quickly.

Is there a better way to go about it?

Madhu says that while guarantor loans have their place in the world of finance, there are other ways to go about it without tying yourself to your parents.

“Should people take out guarantor loans? If that is the only choice, then by all means. At least you’ve now got an extra asset,” he says.

“But if there are other choices, then I would say to use that as the last resort.”

He compares it to working out at the gym. Let’s say your personal trainer had you doing bench presses – and your parents were sitting on top of the weight.

Instead of this heavy arrangement, Madhu says you could work out to a comfortable level without your parents needing to be there.

He says if they are prepared to be a guarantor, then they must be confident that you can handle this amount of debt. 

“You could also do that in a different way in which you could keep your financial affairs totally independent,” he says.

What are your other options?

Instead of being a guarantor, your parents could release equity from their property. Alternatively, they could get a line of credit, and give this to you to use as a deposit. 

Under this arrangement, you would be legally responsible to pay back the loan but your properties wouldn’t be cross-collateralised.

Your parent’s property would still be in their name, and your property would be in your name.

To do this, you would still need to seek legal and financial advice before drawing up a contract. That contract, however, would be between you and your parents. The bank would not be involved.

Madhu says, it is better for each party to stay independent from one another, and reduce the limitations involved.

“Keep the structure simple. Keep your lives independent because you never know what life will throw at each one of you,” says Madhu.


Disclaimer: Please note that the information given in this video blog is only applicable to a number of scenarios and may not be relevant to your financial situation. For more tailored information regarding your own credit report, we would urge you to seek advice from a professional who is privy to your personal circumstances and can give information specific to your financial situation. Please get in contact with our team if you have any questions regarding your own credit report, or would like any help regarding your own finances.

What Are The Different Types Of Loans Available?

Different types of loans available.

Depending on whether you are buying a home or an investment property, there are many different types of loans available.

Let’s take a look at some of the most common ones and who they suit best.

The standard variable rate loan.

As its name suggests, this type of loan has an interest rate that may go up or down depending on the cash rate set by the RBA.

This can be a good option to choose when it looks like the RBA will lower rates.

On the other hand, it may not be the best choice for those who want certainty in the amount they repay each month.

This type of loan would suit clients who are actively trying to expand their portfolio since it allows them to release equity without needing to break from a fixed term contract.

The fixed rate loan.

This is a loan in which interest rates are fixed for a specified term. This means that cash rate movements cannot affect your repayments.

If it looks like a cash rate increase is on the cards, entering a fixed rate term can protect you from spending more on repayments.

It can also help you streamline your cashflow since you are paying the same amount each month.

This sort of loan is not ideal for investors as it doesn’t allow you to release equity for further purchases. On the other hand, it does suit borrowers who are looking to buy one property and want certainty in the amount they repay.

The split loan.

In this sort of loan, it is possible to fix rates for one portion and leave the remaining amount variable. This gives some certainty as to the amount you need to repay each month while allowing flexibility in order to tap into equity.

If you do want to release equity, it needs to be with the same financial institution. Otherwise, you would be liable to pay break costs.

This sort of loan is great for homebuyers who are unsure if they will release equity after a couple of years in order to buy an investment property.

It’s also good for borrowers who are unsure whether rates will rise or fall.

Owner occupier loans.

These loans are for those buying a property to live in. Borrowers usually pay both principal and interest repayments in order to pay off their debt.

There is also an option to pay interest only for the first couple of years. This means you aren’t paying off the principal loan amount, so it is not a viable strategy over the long term. It can be useful for those who have a reduced income over the short term but are expecting to receive more in the near future, such as those on maternity leave.

Interest only investment loans.

Designed for property investors, these types of loans are often structured with interest only repayments for the first couple of years.

Interest rates tend to be higher than what you would get in an owner-occupier loan. This is largely because of the APRA regulations that came in a few years ago to increase lending to owner-occupiers.

Having an interest only loan can be helpful for investors who want to sell for profit after the property has gone up in value.

Investment loans with P+I repayments.

These types of loans are great for property investors who want to pay down their debt and reduce their loan size.

The interest rate is usually higher than what you’d get in an owner-occupier loan, but lower than that of an interest only option.

Line of credit loans.

Line of credit loans are only available to those who have a property. They enable you to borrow against the property’s value by providing a line of credit that is left open for whenever you need it.

You then make repayments and pay interest on whatever portion you use.

Since the purpose of this type of lend can be unclear, banks usually don’t take negative gearing into account for servicing purposes.

A line of credit can be helpful for those with an existing property who want to purchase another one but aren’t sure exactly when they will do it.

Equity release.

Similar to a line of credit, this sort of loan allows you to tap into a portion of your equity. This is better suited to investors than a line of credit because you receive it as a lump sum amount that you start paying interest on immediately. Many investors tap into their equity and use the lump sum they receive as a deposit for their next property.

SMSF lending.

Most of the major banks have pulled out from this type of lending, with only second tier lenders getting involved.

SMSF lending is full of restrictions. The LVR needs to be no greater than 70% and the properties that you invest in can’t come from certain postcodes that are deemed higher risk. If the property is part of an apartment complex, there are also restrictions on the number of units that can be in the building.

To borrow through your SMSF you must have a statement of advice from a financial planner. It is also best to see a mortgage broker who specialises in this type of lend.

I Have Saved Up My Deposit … What Next?

I Have Saved Up My Deposit … What Next?.

If you have saved up a deposit, and are unsure what to do next, you are not alone.

We often get asked “What next?” by borrowers who are ready to start the loan application process but don’t know where to begin.

Assemble your success team.

Whether you are looking to buy your first home or build an investment portfolio, you will greatly benefit from having the right team of professionals around you.

A good accountant, solicitor and buyer’s agent will help you navigate the buying process. They can offer sound advice about structuring and negotiating as well as your rights and responsibilities.

Don’t forget your broker.

When it comes to borrowing, the most important expert you can call on is a finance strategist.

The biggest advantage of using a mortgage broker is that they have access to a wide range of lenders and products.  

If you have specific needs, a broker can hunt down the best type of loan available. If you deal with a bank directly, you will only have access to that bank’s loans. Keep in mind that they may not have what you are looking for.

A good broker will guide you through the loan application process. They will tell you everything you need to do to get the ball rolling.

They will assess your situation and find the most appropriate loan for you to apply for.

This will help you avoid being knocked back by lenders. It will also help increase your chances of success both now and further down the track.


Disclaimer: Please note that the information given in this video blog is only applicable to a number of scenarios and may not be relevant to your financial situation. For more tailored information regarding your own credit report, we would urge you to seek advice from a professional who is privy to your personal circumstances and can give information specific to your financial situation. Please get in contact with our team if you have any questions regarding your own credit report, or would like any help regarding your own finances.

How To Structure Your Home Loans

How To Structure Your Home Loans.

Whether you are purchasing a home or an investment property, it is important to structure your home loans correctly. This will help you get the most out of your borrowing power over the long term, and ensure you can take action to achieve your financial goals through property.

Things we consider when looking at loan structuring.

At Zinger, we consider loan structuring to be a crucial part of every property purchase. We look at the following aspects when helping our clients get finance:

1) Are we declaring the right debt?

2) Are we over or under declaring owner occupier versus investment debt?

3) Are there any accounting benefits to what the client’s current structure holds.

Structuring doesn’t end after the first purchase.

While it is important to get your structure right from day one, it is also important to revisit it during every purchase you make. 

If you are building a property portfolio, structuring is something that could either help you move forward or hold you back.

Just as a good property investor will constantly review their strategy, a savvy borrower will reassess their loan structure at every step of the way.

Restructuring your loans.

One thing we look at with clients who have become stuck in their current structure, is whether restructuring will help. 

We have helped lots of people who couldn’t move forward with their property investing by reassessing their situation. 

One of our clients had a fairly large investment portfolio as well as a home that they were paying off. 

We went back to when the initial loan was set up and reviewed their accounting information. 

We were then able to restructure their existing portfolio and free up their position. This allowed them to continue on their investing journey.

If you are unsure about how to structure your home loans, the best thing you can do is talk with a broker who specialises in this. Not all brokers put time and effort into setting up loans in the best way for their clients, so make sure you choose one who will listen to your goals and help you tailor a strategy for success.


Disclaimer: Please note that the information given in this video blog is only applicable to a number of scenarios and may not be relevant to your financial situation. For more tailored information regarding your own credit report, we would urge you to seek advice from a professional who is privy to your personal circumstances and can give information specific to your financial situation. Please get in contact with our team if you have any questions regarding your own credit report, or would like any help regarding your own finances.

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