House and land package:

There are substantial benefits of building a new house on your own vs buying an established property. Every state has a threshold on stamp duty concession and first homeowners grant (FHOG).

For example, in WA for an established brand-new property you will get FHOG grant if your property value is less than $430k whereas you have to pay stamp duty as well, however, if you are building on your own by taking house and land package, then the threshold for stamp duty concession and FHOG grant is $750k with the land value up to $300k. Moreover, you will be paying interest on land only during your construction period.

Home Advantage Package:

This package is suitable if you want to have all your main banking needs (Home loan, Credit Card, Transaction Account, Insurances) with one annual fee. Some of the features include a free redraw facility, loan split, Construction loan, additional repayment without penalties, competitive interest rates, and many more. Please consult us for some more features and advantages.

Bridging Loan

It’s a short-term loan that will bridge your financial gap between buying a new property and selling the old ones. You may qualify for this loan if you are wanting to buy a new house or build a new house by selling the old house and want to get a loan during that bridging period when the old property is still under sales process. With this loan, you can capitalise your interest rate, additional or lump sum repayments without penalty, normal LVR requirements apply to a new home, competitive interest rates, and other features. Please contact us to know more about this feature.

Equity access & Investment Property:

As we know that the population in Australia is growing consistently and an average of 40% of the Australian population are renting which is growing every year. You can invest the equity amount in an investment property and increase your leverage by utilizing the rental income from an investment property. This is a long-term positive cash flow investment strategy. We are providing services on restructuring your mortgage to obtain an additional loan from an equity amount if applicable to invest in the investment property which will generate positive cash flow that can supplement your life. It is necessary to make a smart decision about the location you’re buying the property and the area which has a positive phase of the price cycle ongoing as the property also grows over time.

Your aim is to have the investment property positively geared. If your gross yield or the income from the property is higher than the outgoing cost such as mortgage repayment, then the property is said to be positively geared. If a property is positively geared, then the positive cash flow will happen, and your expenses may be covered by the rental income and tax deduction.

If you are owning an investment property and aiming to get a rental income from an investment property, as a property investor, you may have a fringe benefit of tax deductions, however, owning a property simply to get a tax benefit does not make a good sense.

Please seek advice from a certified practicing accountant (CPA) to know more about the tax threshold, tax law, and deductions in an investment property. The above scenario is just a general statement.

 

However, there are certain things to be considered before accessing equity. The reality is that withdrawing equity to use elsewhere does add an element of risk. It’s important to get advice from a professional such as a mortgage broker, before deciding to go down that path. There are also some considerations that you will need to take into account.

• 1. When you buy your first property, you might be able to access very high LVRs. For first home buyers, this can be as high as 95% or even more in some instances. When you look to accessing the equity in another property, most lenders will limit that to only 80%, to make sure they have a degree of comfort should market conditions change or your personal situation does.
• 2. If you are able to go above that 80% threshold, you would be looking at paying Lenders Mortgage Insurance (LMI), which can be a sizeable upfront cost.
• 3. You still need to be able to service the loan that you take out. Just because you have the equity available to you, a lender will still be assessing your financial situation and your ability to service any debts before they let you access any equity you have in other properties.

(Pease note that equity release loan can also be used for other purposes like purchase of a car, investment into the share market and your interest rate will be the same as your home loan rate which is significantly lower.)

 

Debt consolidation

Debt consolidation is the process of bringing all the existing loans into one loan. If you going to consolidate your loan, you need to make sure that you are paying less, and you can afford the new repayment system. You need to calculate and compare your current repayment if it is going to be lower or not.

Off the plan property purchase:

Off the plan property purchase is the process of signing a contract to buy a property that is yet to build or under construction. In this purchase plan, you will agree to buy the property under a certain deposit which is not yet in the final stage of construction with a fairly logical assumption of its substantial growth over time. There are some risks and benefits and associated with this property purchase strategy as you will not be physically inspecting the complete structure of the property and you have to depend on the information provided by the developer. There may be some risk factor involving in the loan application process for off the plan purchase. So, it is advisable to consult a mortgage broker to assess your current circumstances, borrowing capacity, and financial goals.

Refinance:

Most of the lenders will charge loyalty tax for the customers who are with them for a long time.  Many home loan clients thought that loyalty is an award, but it is not. Lenders will provide incentives such as higher discounts for a new customer, but you may have been paying more interest as a loyal customer than the new customer, and they might have charged you a loyalty tax as well. Thus, it is better to review your loan products, interest rates and if you think that you are not getting the right deal, it is better to change your lender by refinancing your loan. For a 30-year loan term, if you are paying 1% less, that will add value up to $87,000. This means you can pay your mortgage faster which makes you be free from mortgage stress. If you are not sure whether you are paying loyalty tax or not, or if you think you can save your home loan by refinancing, please contact us, we will provide you a free assessment service. Please contact us to know more about our other products and services.

Car Loans: