Financial Guidance

FHB/Upgrader

LIFE CAN HAVE UPS & DOWNS

If you are looking to buy but you are unsure of your borrowing capacity we get an understanding of where you want to be and undertake a thorough review of your current situation to determine your borrowing capacity giving with your needs and goal. From there once you bave selected the lender that meets your needs a preapproval can be arranged (please see FAQ) which till give you peace of mind that the loan is approved and only requires you to find the perfect home.

The 3 main benefits are :

The certainty of your ability to purchase a property for a particular amount,
The assessment period at the bank is already done so you can own your next property sooner and lastly
A preapproval signifies strong intent to purchase to the Real Estate agent with any offer you make.

Divorce

WE CAN GUIDE YOU THROUGH TURBULENT TIMES

We understand a family break up and going through a divorce is an extremely difficult situation for everyone involved.

How we can help:

We will get to understand where you want to be once separation is complete and determine how best to achieve this for you.
We arrange upfront bank valuations over residential properties to confirm the actual equity available to you that the banks will lend you money on.
We assess your post separation lending capacity to ensure what is agreed on can be honoured and ensuring your are in the best position.
We liaise with the banks on your behalf allowing you to focus on more important matters in your life and help you to move forward

Life changing events

LIFE CAN THROW YOU UPS AND DOWNS

Life can sometime present difficult obstacles in your path which can impact your ability to get a loan with a main stream bank.

We thoroughly appreciate your situation both past and present to ensure we can explain that to our specialist lenders who are the leaders in providing competitive loan products and options for people who may not fit the exacting requirements of the big banks.
If you are currently with a specialist lender we will review all your options to determine the best way forward.

YOUVE GOT QUESTIONS, WE’VE GOT ANSWERS!

There are 2 main reasons why more then 60% of loans are arranged by a mortgage broker and that aside from being ethical business practice is that we are required by law to ensure your best interests are met in the lowest rate products from over 30 banks and ensuring it meets your needs to the letter, secondly at Keating finance we manage the process from beginning to end giving you one point of contact and a stress free and enjoyable experience so you can focus on the other important things in your life.

By the bank you choose when you are satisfied and the loan has settled (you own your home). The bank have 2 sales channels in their branch network which they rely on the staff in them to assist clients that walk off the street and pay the staff wages and the other is the broker channel which is where they pay a commission for introducing your valued business to them.

A preapproval is where you have determined the amount you want to borrow and the loan product and type but not the home so we arrange to have the bank assess your application based on your current situation and they can conditionally approve the loan by assessing your current situation tmeaning all you need to do is find your dream home or investment property.

If you are paying more than your minimum scheduled home loan repayments. This means you’ll have money available to take back out – if you want to.

Offset account -An offset links a transaction account to your variable rate home loan. The money in that account offsets the interest on your loan balance. This is how you can pay less interest with an offset account. The more money you have in the offset account, the less interest you pay on your home loan.

An example of how an offset account works

Say you’ve taken out a 25-year mortgage for $500,000. Now, suppose you pay an average interest rate of 3.5% p.a.

We’re going to assume you have, on average, $10,000 sitting in your linked account.

Over the life of your loan, you’d save $13,663. Effectively, you end up paying off your loan sooner – your 25-year mortgage ending 5 months early.

Fixed rate – A fixed interest rate loan is a loan where the interest rate doesn’t fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments

Variable rate – this is a loan in which the interest rate and hence repayments can go up, down or stay the same. The interest rates are determined by a number of factors including the Cash rate determined by the Reserve Bank of Australia

Lenders Mortgage insurance – (LMI) is a one-off, non-refundable, non-transferrable premium that’s added to your home loan. It’s calculated based on the size of your deposit and how much you borrow. The more you contribute to the purchase price of your property, the lower the cost will be. LMI protects the bank (not the borrower) against any loss they may incur if you are unable to repay your loan.

Loan to Value Ratio – (LVR) – is the amount you’re borrowing, represented as a percentage of the value of the property you’re buying. The bigger your deposit, the lower the LVR will be.
The Loan-to-Value Ratio is calculated by dividing the loan amount by the purchase price or valuation of the property you’re buying, expressed as a percentage.

For example, let’s say that you’d like to borrow $450 000 and the property price is $600 000. The LVR of the home loan would be calculated like this:

($450 000 loan ÷ $600 000 property value) x 100 = 75% LVR

Guarantor – A guarantor is someone who agrees to be responsible for repaying a debt owed to the bank under a loan provided to another individual, if the borrower(s) can’t make their repayments. A guarantor supports the loan by providing the bank with additional security such as a property they own. By providing a guarantee, the bank may lend to the borrower in situations where they may not have been able to secure the full amount on their own.

This usually relates to a family guarantee – Under a family security guarantee, a family member with sufficient equity in their home can use it as a security guarantee for your loan.

The person providing the security is known as the guarantor. The guarantor doesn’t give you or the lender any money. However they will have to accept the obligations associated with entering into a guarantee. And you will still need to make the repayments.

The guarantor’s security doesn’t cover the entire loan amount, just a portion of it. This is usually the amount needed to reduce your loan-to-value ratio (LVR) to 80%. The guarantee is limited to this amount.

If the security guarantee reduces your LVR to 80% you won’t pay Lenders Mortgage Insurance.