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Home Loan

RAMS variable interest rate lowered

Mon, 2008-11-10 12:24 — administrator

RAMS Basic Home Loan rate reduced to Call% p.a.

To ensure it continues to offer a cheaper alternative to the major banks, RAMS is today reducing its standard variable rate to just Call%. Read more

Banks Reduce Variable Interest Rate

Mon, 2008-10-20 08:05 — Broker

Banks announce further home loan variable interest rate cut.

Most banks reduced their standard variable interest rates by 0.80 percent following the Reserve Bank of Australia lowering of the cash rate by 1 percent at the October 2008 meeting.

Certain banks have announced a further reduction to their standard variable home loan interest rates in the past few days of an additional 0.25 percent.

An important note to consider is that there are still differences between different banks and lenders standard variable home loan interest rate. Read more

Interest rate increases

Tue, 2008-04-29 15:07 — Broker

29 April 2008

Important changes from FirstMac

Interest rate increases

Due to continued deterioration in global credit markets and pressure on the cost of funds, FirstMac has had to adjust its interest rates. While FirstMac has passed on rate increases over recent months to help recover higher wholesale funding costs, FirstMac are continuing to monitor the situation to ensure the longer term viability of their busines.

1. Existing borrower rates Read more

How Much Can You Borrow

Fri, 2008-04-18 17:26 — Guest

How Much Can You Borrow Home Loan Calculator Read more

Home Loan Requirements

Tue, 2008-04-15 12:17 — Broker

Home loans are offered with many different options and additional features which may or may not be cost saving and of benefit. Listing which features are important or optional will help you shortlist potential lenders and home loan types. Home Loan Types.

  • Variable interest rate home loan
  • Fixed interest rate home loan
  • Line of Credit home loan
  • Introductory rate home loan
  • Reverse Mortgage

Income verification levels available for home loans are as follows. Read more

Property Information

Tue, 2008-04-15 11:44 — Broker

Full details about the actual property to be purchased or refinanced will help in determining which loan and lenders may be suitable. Property details required are as follows. Read more

Income and calculating servicability

Tue, 2008-04-15 11:17 — Broker

All income types should be considered when applying for a home loan. Different lenders may not accept some types of income or may only accept a lesser percentage of certain income types.

Some types of income to declare are as follows. Read more

  • PAYG income, wages or salary permanent full-time employment 2 years +
  • PAYG income, wages or salary permanent part-time employment less than 1 year
  • PAYG income, wages or salary permanent part-time employment less than 2 years +
  • PAYG income, wages or salary permanent part-time employment 2 years +

Assets

Tue, 2008-04-15 10:35 — Broker

Providing a list of assets and approximate valeus of these assets will help a lender assess a home loan application.

A list of assets could include any of the following with value estimates if applicable. Read more

  • Property
  • Bank account balance
  • Business value
  • Furniture and home contents value
  • Deposit already paid towards purchase
  • Stocks, Shares and other investments
  • Superannuation
  • Motor Vehicles
  • Business plant and equipment
  • Other assets

Liabilities

Tue, 2008-04-15 10:12 — Broker

The next group of information required for preparing a home loan application is the liabilities each applicant has.

These liabilities can be grouped into 2 parts, liabilities that will continue following settlement of a proposed home loan and liabilities that will cease following settlement.

For example a home loan applicant who is presently renting and is applting for a home loan to purchase a home to live in has a rent liability that will cease following settlement of the proposed loan.

Liabilities - specify the frequency such as weekly, monthly, annually etc. Read more

Personal Information

Tue, 2008-04-15 08:51 — Broker

The first step in choosing a home loan and subsequently applying for a home loan is to gather personal details for each applicant and guarantor if applicable as follows. Read more

  • Title
  • Surname
  • First Name
  • Middle Name
  • Date of Birth
  • Gender
  • Driver Licence Number
  • Marital Status
  • Number of dependants per application and their ages
  • Home Phone
  • Work Phone
  • Mobile Phone
  • Email
  • Residential address/s for the past 2 - 3 years
  • Occupation

Home Loan Application

Tue, 2008-04-15 08:32 — Broker

Choosing and applying for a home loan requires a specific range of information as follows.

  • Personal information for all applicants
  • Liabilities for all applicants
  • Assets owned by all applicants
  • Property to be purchased details
  • Home loan requirements

This information will enable a finance broker to shortlist a range of loan and or lender options for a home loan applicant to choose from. Read more

Home Loan

Mon, 2008-04-14 20:57 — administrator

Home Loans are available in many different shapes and sizes and are offerdwith a range of options that can become confusing to say the least. Reasons for applying for a home loan can be just as varied. Reasons could include but not be limited to; Read more

Commonwealth Fixed Interest Rate Home Loan Increase

Thu, 2008-04-10 10:42 — Broker

Commonwealth Bank have announced they are continuing to experience significant increases in the cost of funds, as a result of sustained market volatility. The announcement states that while Commonwealth continue to absorb some of these costs, it has become necessary to pass on a proportion of these costs through increasing the interest rate on a range of fixed rate home loan products.

These rates apply to all new fixed rate loans, and are effective Monday 14 April 2008.

Commonwealth 1 Year Guaranteed Rate and Fixed Rates will change as follows: Read more

Home Loan Deposit

Mon, 2008-04-07 12:00 — wes@ability
Deposit for a home purchase can be made up of three different stages.
  • The total available deposit available to contribute toward the purchase.
  • The holding deposit usually payable when an offer is accepted but prior to the contracts of sale being signed and exchanged.
  • The 5 or 10 percent deposit usually payable following exchange of contracts for sale.
When there is only a limited deposit available a 5 or 10 percent deposit requirement can usually be avoided by obtaining a deposit bond or deposit guarantee. Read more

Borrowing Capacity Loan Serviceability

Sat, 2008-04-05 02:00 — administrator

Loan serviceability takes into account all available income such as wages, pensions, self employed income etc then takes away an allowance for living expenses and other liabilities such as other loans. Hopefully there is a positive cash surplus remaining and this cash surplus will determine the maximum loan amount the borrowers can afford.

Because many lenders use different policy and calculations to establish borrowing capacity there are almost allways differences in the maximum home loan amounts various lenders are willing to lend. Read more

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