Realising Your Goals

Going from dream to homeowner might seem like a daunting journey, but as long as you’re prepared, buying your first home can be a relatively smooth process.
Before you start your house hunt, there are a few things to consider. Firstly, making sure that buying a property is right for you. One of the key factors in making this decision is looking at your budget and working with a lending specialist to determine the costs involved and setting a safe and affordable purchase range that you can comfortably manageable and still allows you to achieve all your other life goals.
Knowing your limits financially helps you set your home ownership goals, giving you the confidence to decide the type of property you would like to buy.
Setting clear home ownership goals in the early stages is important for a smoother journey through the house hunting and loan hunting stages.
We hope you find these snippets of information useful as you begin your home ownership journey.
Going from your current home to your next home might seem like a daunting journey and with it comes a few questions you would like to answer. Preparation can make buying your next home a more rewarding journey.
Before you start your house hunt, there are a few things to consider.
A lending specialist will work with you to understand each of these options and help you choose the strategy that works with your life plans.
Knowing your limits financially helps you set your home ownership goals, giving you the confidence to decide the type of property you would like to buy and start your property search.
Setting clear home ownership goals in the early stages is important for a smoother journey through the house hunting and loan hunting stages.
We hope you find these snippets of information useful as you beign your journey into your next home.

Everything you need to know about purchasing an investment property in Australia

There are certain things all savvy property investors do, especially when they’re starting out. Understanding the responsibilities of property investment and if it’s the right decision for you is the first step.

Setting out a strategy and researching suitable areas for property investment will help set you on a successful path as a property investor. And of course, setting your budget and making sure you are spending within your means is critical.

Once your strategy and finances are in order, it’s time to find the right investment loan.

Buying an investment means preparing for the long-term management of the property. Finding the right tenants early on, means that the ongoing management is easy and stress free.

As you embark on your property investment journey, we hope these tips are helpful.

Refinancing can give you access to equity you have built up in your home, or could simply save you money by consolidating personal debts or moving to a more competitively priced loan.

There are many reasons why you may want to consider refinancing your home, car or personal debt. No matter what you’re trying to achieve, when you refinance you’re essentially swapping your existing loan for a new one, so it’s important to do your research and make sure you’re switching to the right loan.

A home loan is a long-term commitment and it’s important to understand the ins and outs of refinancing and decide if it’s the right option for you at the moment.

Over time it is easy to end up with multiple personal debts each with their own set of fees and possibly high interest charges. Simplifying them all into one loan could make managing the finances a little easier and maybe save some money along the way.

The most important thing to know is that there are different types of refinancing to suit your circumstances. Whether you’re looking for lower monthly repayments, want to consolidate your debts or access the equity in your home, there’s plenty of choice available.

Home loans for renovations.

As homeowners, we all want to add value to our property and the best way to do that is through renovation. Whilst the idea of renovating is simple enough, the reality is that improvements to the home cost money. The good news is that there are plenty of choices available if you need to take out a loan to complete your renovation.

Whether you take out a personal loan, add the renovation cost to your current home loan or take out a new home loan to cover the costs, there’s plenty of options to consider.

And remember, before you borrow any more money, make sure you plan your renovation. Which areas of the home do you want to improve? As always, preparation will help you maximise results.

As you begin your renovation adventure, we hope these tips will help you get the most out of the experience.

 

How Renovation loans work

Renovations loans will be different for everyone – the amount you need to borrow, your existing loan balance, your property value and what the type of renovation you’re undertaking are the most important factors to consider. The most important first step you must take is getting a valuation done on your property. Greater Finance can organise a free valuation for you.

The three main options for renovation loans are:

  1. Getting a personal loan to cover renovations costs

  2. Adding the renovation total to your existing home loan

  3. Finding a new home loan

 

Personal loans for renovations
A personal loan can be a good option for small renovation projects, such as fitting a pool, where the cost is fixed in advance. You can pay off the balance earlier than you would by adding extra to your mortgage – typical personal loan terms are three to five years. And, with a personal loan, you’ll have fixed regular repayments enabling you to build in the cost to your budgeting. But on the downside a personal loan can attract a higher interest rate than a mortgage and the qualifying criteria can be stricter.

Key points:

  • This is an unsecured loan and will attract a higher interest rate

  • The loan term will be shorter than your home loan term

  • Personal loans have quicker approval processes and are easier to obtain

 

Add the renovation cost to your home loan

If you have an existing home loan you can use the equity you’ve built to fund your renovation project. This is one of the most popular ways Australian’s fund their renovation projects but it’s important to know you can be limited in the amount you can borrow by the value your lender puts on your property.

The step is to have your current bank do a valuation on your property to determine it’s current value. Once the bank has calculated the properties current value it will tell you what your Loan­to­Value (LVR) ratio is and will have a rough estimate of how much they lend you for your renovation project. Most lenders won’t have much of an issue lending you enough money so that you’re LVR is at 80%. Any higher than that and you’ll have to prove the ‘purpose of funds’ and potentially pay Lenders Mortgage Insurance (LMI).

An example:

Ben bought a property in 2010 for $700,000 and in 2015 his home loan balance was $600,000. He wanted to renovate his kitchen and his bank sent a valuer to his property who valued it at $850,000. Ben’s LVR was 70% and his bank said they would lend him $80,000 as that would increase his outstanding loan balance to $680,000 and that would be 80% of the current value of the property.

Key points:

  • Your loan balance will increase and so will your repayments

  • You may be able to reset your loan term

  • If you increase your LVR over 80% you will have to pay LMI

  • You are limited to your existing lenders property valuation

 

Finding a new home loan for your renovations

Another common strategy for home owners needing money to fund their renovations is to switch their home loan to an entirely new product and/or lender. There can be several benefits for both purpose of the renovation and the interest the borrower pays over the life of the loan.

One of the most common catalysts for switching your home loan is when a borrower’s existing lender places a lower ­than ­expected value on the borrowers property, limiting how much the borrower can spend on their renovation.

The reason a valuation is so important is because lenders will use the current value of your property to determine your LVR which will impact how much equity you have and how much additional money you will be able to borrow.

Valuations can differ greatly different between lenders

When you want to use equity in your property for renovation, you may want your property valuation to be as high as possible. This is because it will lower your LVR and increase your potential budget for your renovations.

With valuations being so critical to renovation loans, it’s important to know that banks all use different valuers, and they may value your property differently. If you use the wrong valuer, you may not be able to borrow the money you need to consolidate your debts, renovate your property or make an investment.

A case study:

Adam bought a house for $900,000 in 2012 and took out a loan for $800,000. By 2015 his loan balance was $750,000 and he wanted to access some of his equity to renovate his property. His current bank had a valuer asses that his house was worth $1M. Unsure if that was the right value of his house, Adam approached a mortgage broker who had another lender value his property at $1.2M.
Adam ‘s current lender assessed his LVR to be 70% and said he could access up to $50,000 for his renovations, without having to pay LMI. The second lender assessed his LVR to be 58% and said he could access $210,000 for his renovations without having to pay LMI. In this situation Adam would be able to borrow an additional $170,000 for his renovations by selecting a lender whose valuer thought his property was worth more.

 

Does it matter what I’m renovating?

Depending on the scope and area of your property you’re looking to renovate, you may find some lenders more willing to accommodate your renovation loan. In all renovation cases, lenders are looking to see that you’re adding value to your property and what level of expertise is required.

Greater Finance can help you with business finance for business expansion, commercial investing, equipment, leasing, buying and property purchases.

It makes good business sense to have a simple and flexible commercial loan structure when you grow your business. We can also help with refinance of commercial properties, retail shops, industrial land, factories and offices, as well as cash flow lending.

We make it easier for you to buy a commercial property or refinance the loan you have now. Greater Finance helps investors and business owners with loans to achieve their goals.

We can help you with commercial finance features like:

  • Overdrafts
  • Term loans
  • Cash flow finance
  • Commercial purchase SMSF
  • Hire purchase
  • Chattel mortgage
  • Leasing finance

At Greater Finance we will help you understand your commercial finance options and work out which loan structure is right for your business or investment portfolio.

Security for business and commercial loans

Like a home loan, your business or commercial finance loan will need security. This might include:

  • Residential property
  • Commercial property
  • Assets of your business such as stock
  • Guarantee of directors supported by residential/commercial property
  • Commercial loan borrowing power

With lending criteria tightening, the knowledge and experience of a good commercial loan specialist is invaluable.

The amount you can borrow is on a case-by-case basis. A good commercial loan specialist can help work out your borrowing capacity based on criteria like the industry you’re in and the type of security you have.

Generally, your borrowing capacity is worked out as what’s known as an ‘interest coverage ratio’. This is your company’s earnings before interest and taxes (EBIT), divided by interest expense. Interest expense is a ratio used to work out how easily you can pay interest on outstanding debt.

A business loan secured by cash flow, partly secured by property, or a combination of both, may need an interest cover of three times or more.

Whether it’s a sports car, a family car, or even a first car, not many of us have the cash on hand to buy a vehicle outright.

But just as there are all kinds of cars on the market, there’s also a huge range of loans available. And just like with cars, some will be more ‘you’ than others.
That’s where we can help. Instead of simply accepting the loan your car dealer offers you or if you want to purchase a vehicle privately, we put you in control – helping you choose from a panel of lenders, to find the loan that’s right for you.
Best of all, we do all the legwork (and all the paperwork).
So if you’re ready to get in the driver’s seat with your car loan, contact us today.

CALL MARK BARNES

Or

Send Me A Message

Going from dream to homeowner might seem like a daunting journey, but as long as you’re prepared, buying your first home can be a relatively smooth process.
Before you start your house hunt, there are a few things to consider. Firstly, making sure that buying a property is right for you. One of the key factors in making this decision is looking at your budget and working with a lending specialist to determine the costs involved and setting a safe and affordable purchase range that you can comfortably manageable and still allows you to achieve all your other life goals.
Knowing your limits financially helps you set your home ownership goals, giving you the confidence to decide the type of property you would like to buy.
Setting clear home ownership goals in the early stages is important for a smoother journey through the house hunting and loan hunting stages.
We hope you find these snippets of information useful as you begin your home ownership journey.
Going from your current home to your next home might seem like a daunting journey and with it comes a few questions you would like to answer. Preparation can make buying your next home a more rewarding journey.
Before you start your house hunt, there are a few things to consider.
A lending specialist will work with you to understand each of these options and help you choose the strategy that works with your life plans.
Knowing your limits financially helps you set your home ownership goals, giving you the confidence to decide the type of property you would like to buy and start your property search.
Setting clear home ownership goals in the early stages is important for a smoother journey through the house hunting and loan hunting stages.
We hope you find these snippets of information useful as you beign your journey into your next home.

Everything you need to know about purchasing an investment property in Australia

There are certain things all savvy property investors do, especially when they’re starting out. Understanding the responsibilities of property investment and if it’s the right decision for you is the first step.

Setting out a strategy and researching suitable areas for property investment will help set you on a successful path as a property investor. And of course, setting your budget and making sure you are spending within your means is critical.

Once your strategy and finances are in order, it’s time to find the right investment loan.

Buying an investment means preparing for the long-term management of the property. Finding the right tenants early on, means that the ongoing management is easy and stress free.

As you embark on your property investment journey, we hope these tips are helpful.

Refinancing can give you access to equity you have built up in your home, or could simply save you money by consolidating personal debts or moving to a more competitively priced loan.

There are many reasons why you may want to consider refinancing your home, car or personal debt. No matter what you’re trying to achieve, when you refinance you’re essentially swapping your existing loan for a new one, so it’s important to do your research and make sure you’re switching to the right loan.

A home loan is a long-term commitment and it’s important to understand the ins and outs of refinancing and decide if it’s the right option for you at the moment.

Over time it is easy to end up with multiple personal debts each with their own set of fees and possibly high interest charges. Simplifying them all into one loan could make managing the finances a little easier and maybe save some money along the way.

The most important thing to know is that there are different types of refinancing to suit your circumstances. Whether you’re looking for lower monthly repayments, want to consolidate your debts or access the equity in your home, there’s plenty of choice available.

Home loans for renovations.

As homeowners, we all want to add value to our property and the best way to do that is through renovation. Whilst the idea of renovating is simple enough, the reality is that improvements to the home cost money. The good news is that there are plenty of choices available if you need to take out a loan to complete your renovation.

Whether you take out a personal loan, add the renovation cost to your current home loan or take out a new home loan to cover the costs, there’s plenty of options to consider.

And remember, before you borrow any more money, make sure you plan your renovation. Which areas of the home do you want to improve? As always, preparation will help you maximise results.

As you begin your renovation adventure, we hope these tips will help you get the most out of the experience.

 

How Renovation loans work

Renovations loans will be different for everyone – the amount you need to borrow, your existing loan balance, your property value and what the type of renovation you’re undertaking are the most important factors to consider. The most important first step you must take is getting a valuation done on your property. Greater Finance can organise a free valuation for you.

The three main options for renovation loans are:

  1. Getting a personal loan to cover renovations costs

  2. Adding the renovation total to your existing home loan

  3. Finding a new home loan

 

Personal loans for renovations
A personal loan can be a good option for small renovation projects, such as fitting a pool, where the cost is fixed in advance. You can pay off the balance earlier than you would by adding extra to your mortgage – typical personal loan terms are three to five years. And, with a personal loan, you’ll have fixed regular repayments enabling you to build in the cost to your budgeting. But on the downside a personal loan can attract a higher interest rate than a mortgage and the qualifying criteria can be stricter.

Key points:

  • This is an unsecured loan and will attract a higher interest rate

  • The loan term will be shorter than your home loan term

  • Personal loans have quicker approval processes and are easier to obtain

 

Add the renovation cost to your home loan

If you have an existing home loan you can use the equity you’ve built to fund your renovation project. This is one of the most popular ways Australian’s fund their renovation projects but it’s important to know you can be limited in the amount you can borrow by the value your lender puts on your property.

The step is to have your current bank do a valuation on your property to determine it’s current value. Once the bank has calculated the properties current value it will tell you what your Loan­to­Value (LVR) ratio is and will have a rough estimate of how much they lend you for your renovation project. Most lenders won’t have much of an issue lending you enough money so that you’re LVR is at 80%. Any higher than that and you’ll have to prove the ‘purpose of funds’ and potentially pay Lenders Mortgage Insurance (LMI).

An example:

Ben bought a property in 2010 for $700,000 and in 2015 his home loan balance was $600,000. He wanted to renovate his kitchen and his bank sent a valuer to his property who valued it at $850,000. Ben’s LVR was 70% and his bank said they would lend him $80,000 as that would increase his outstanding loan balance to $680,000 and that would be 80% of the current value of the property.

Key points:

  • Your loan balance will increase and so will your repayments

  • You may be able to reset your loan term

  • If you increase your LVR over 80% you will have to pay LMI

  • You are limited to your existing lenders property valuation

 

Finding a new home loan for your renovations

Another common strategy for home owners needing money to fund their renovations is to switch their home loan to an entirely new product and/or lender. There can be several benefits for both purpose of the renovation and the interest the borrower pays over the life of the loan.

One of the most common catalysts for switching your home loan is when a borrower’s existing lender places a lower ­than ­expected value on the borrowers property, limiting how much the borrower can spend on their renovation.

The reason a valuation is so important is because lenders will use the current value of your property to determine your LVR which will impact how much equity you have and how much additional money you will be able to borrow.

Valuations can differ greatly different between lenders

When you want to use equity in your property for renovation, you may want your property valuation to be as high as possible. This is because it will lower your LVR and increase your potential budget for your renovations.

With valuations being so critical to renovation loans, it’s important to know that banks all use different valuers, and they may value your property differently. If you use the wrong valuer, you may not be able to borrow the money you need to consolidate your debts, renovate your property or make an investment.

A case study:

Adam bought a house for $900,000 in 2012 and took out a loan for $800,000. By 2015 his loan balance was $750,000 and he wanted to access some of his equity to renovate his property. His current bank had a valuer asses that his house was worth $1M. Unsure if that was the right value of his house, Adam approached a mortgage broker who had another lender value his property at $1.2M.
Adam ‘s current lender assessed his LVR to be 70% and said he could access up to $50,000 for his renovations, without having to pay LMI. The second lender assessed his LVR to be 58% and said he could access $210,000 for his renovations without having to pay LMI. In this situation Adam would be able to borrow an additional $170,000 for his renovations by selecting a lender whose valuer thought his property was worth more.

 

Does it matter what I’m renovating?

Depending on the scope and area of your property you’re looking to renovate, you may find some lenders more willing to accommodate your renovation loan. In all renovation cases, lenders are looking to see that you’re adding value to your property and what level of expertise is required.

Greater Finance can help you with business finance for business expansion, commercial investing, equipment, leasing, buying and property purchases.

It makes good business sense to have a simple and flexible commercial loan structure when you grow your business. We can also help with refinance of commercial properties, retail shops, industrial land, factories and offices, as well as cash flow lending.

We make it easier for you to buy a commercial property or refinance the loan you have now. Greater Finance helps investors and business owners with loans to achieve their goals.

We can help you with commercial finance features like:

  • Overdrafts
  • Term loans
  • Cash flow finance
  • Commercial purchase SMSF
  • Hire purchase
  • Chattel mortgage
  • Leasing finance

At Greater Finance we will help you understand your commercial finance options and work out which loan structure is right for your business or investment portfolio.

Security for business and commercial loans

Like a home loan, your business or commercial finance loan will need security. This might include:

  • Residential property
  • Commercial property
  • Assets of your business such as stock
  • Guarantee of directors supported by residential/commercial property
  • Commercial loan borrowing power

With lending criteria tightening, the knowledge and experience of a good commercial loan specialist is invaluable.

The amount you can borrow is on a case-by-case basis. A good commercial loan specialist can help work out your borrowing capacity based on criteria like the industry you’re in and the type of security you have.

Generally, your borrowing capacity is worked out as what’s known as an ‘interest coverage ratio’. This is your company’s earnings before interest and taxes (EBIT), divided by interest expense. Interest expense is a ratio used to work out how easily you can pay interest on outstanding debt.

A business loan secured by cash flow, partly secured by property, or a combination of both, may need an interest cover of three times or more.

Whether it’s a sports car, a family car, or even a first car, not many of us have the cash on hand to buy a vehicle outright.

But just as there are all kinds of cars on the market, there’s also a huge range of loans available. And just like with cars, some will be more ‘you’ than others.

That’s where we can help. Instead of simply accepting the loan your car dealer offers you or if you want to purchase a vehicle privately, we’ll put you in control – helping you choose from a panel of lenders, to find the loan that’s right for you.

Best of all, we do all the legwork (and all the paperwork).

So if you’re ready to get in the driver’s seat with your car loan, contact us today.

CALL MARK BARNES

Or

Send Me A Message