After the unexpected decision by The Reserve Bank Of Australia yesterday to keep the official cash rate on hold, there is much speculation today that the banks may increase their standard variable rate mortgages.
We have heard from the banks that the cost of borrowing money has increased since the credit crunch, and at the moment shows no signs of easing, with the crisis with sovereign debt levels, especially in European countries.
Most, if not all banks have increased there lending margins by at least 1% since the credit crunch, so there has been a considerable cost to all mortgage holders already.
I guess the interesting point is, if or when funding does get cheaper, will the banks pass on the cheaper rates to there customers? I guess we will see.
On the positive side, there is still much competition between the banks and lenders. Some of the smaller banks and lenders are offering extremely competitive rates these days. A mortgage broker is only a phone or email away, to see if you could save money with your current home loan. It really only costs nothing more than a little bit of your time to compare you current home loan.
It is important though, when thinking about switching your current home loan, to consider the fees, like mortgage exit fees, application fees, government fees, as these costs may impact any possible savings a new home loan may give you.
A good mortgage broker will take into account these fees, so you will get an idea of how much you may save when considering new home loan.
If you would like to contact a mortgage broker in Perth, please contact me anytime. Also too, please leave any comments below, we love reading what you have to say.
Showing posts with label debt consolidation. Show all posts
Showing posts with label debt consolidation. Show all posts
Wednesday, February 8, 2012
Sunday, July 3, 2011
Why Get Pre Approved Mortgage Finance?
This is an email question from Thom in West Leederville. His question asks – I am considering buying an investment property, and I am wondering whether I should get pre approved mortgage finance? What are the benefits if I do? And what cost is involved?
This is a good question, and one I get asked all the time. Ok, firstly lets look at what pre approved mortgage finance is.
With pre approved mortgage finance, you would generally meet you’re your mortgage broker, and learn how much you could borrow. Then once you have decided on how much your pre approved home loan will be, you will need all the paperwork required to get a home loan.
Most banks or lenders, with pre approved mortgage finance, check the paperwork, do a credit check, and then, hopefully pre approve your mortgage application. Also too with pre approved mortgage finance, the pre approved home loan limit, is an up to amount, so if you find a cheaper property, or don’t need to use the full pre approved home loan limit, then that is fine. For example, if you have a $400,000 pre approval in place, but only need a $250,000 home loan, then that is ok, as your limit you applied for was $400,000.
If you need more than your pre approved limit, provided you have talked to your mortgage broker beforehand, and have ascertained how much you can borrow, you should be ok to increase the pre approved amount, with your application.
Pre approved mortgage finance, with most banks and lenders generally has no cost, and the pre approval lasts on average for 3 months, with most lenders. It is important when you are speaking to your mortgage broker to know all the possible costs associated with any pre approval mortgage application.
If your pre approved mortgage finance expires, it still generally costs nothing with most banks and lenders, to apply for another pre approval.
There are many advantages to pre approved mortgage finance. Some advantages include –
You know how much you can borrow
You have the peace of mind knowing that you finance is pre approved.
A real estate agent may take your offer more seriously, knowing that you have pre-approved finance in place
The pre-approved finance may give you more negotiating power on the property you are thinking of purchasing, as your finance has been pre approved, giving the seller more confidence in your finance application.
Because you have a pre approval in place, most banks and lenders, will be quicker assessing your home loan application, as they have already done part of the work with your pre approval application.
A pre approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property. The bank or lender will still generally speaking value the property you have brought, re check your paperwork, and do employment checks. Generally speaking though, if your home loan has been pre approved, your formal finance application (when your find the property),. Should be more than likely approved.
If you have any comments, please leave below. If you would like more personal finance information, or to use my services as a mortgage broker, please contact me anytime.
This is a good question, and one I get asked all the time. Ok, firstly lets look at what pre approved mortgage finance is.
With pre approved mortgage finance, you would generally meet you’re your mortgage broker, and learn how much you could borrow. Then once you have decided on how much your pre approved home loan will be, you will need all the paperwork required to get a home loan.
Most banks or lenders, with pre approved mortgage finance, check the paperwork, do a credit check, and then, hopefully pre approve your mortgage application. Also too with pre approved mortgage finance, the pre approved home loan limit, is an up to amount, so if you find a cheaper property, or don’t need to use the full pre approved home loan limit, then that is fine. For example, if you have a $400,000 pre approval in place, but only need a $250,000 home loan, then that is ok, as your limit you applied for was $400,000.
If you need more than your pre approved limit, provided you have talked to your mortgage broker beforehand, and have ascertained how much you can borrow, you should be ok to increase the pre approved amount, with your application.
Pre approved mortgage finance, with most banks and lenders generally has no cost, and the pre approval lasts on average for 3 months, with most lenders. It is important when you are speaking to your mortgage broker to know all the possible costs associated with any pre approval mortgage application.
If your pre approved mortgage finance expires, it still generally costs nothing with most banks and lenders, to apply for another pre approval.
There are many advantages to pre approved mortgage finance. Some advantages include –
You know how much you can borrow
You have the peace of mind knowing that you finance is pre approved.
A real estate agent may take your offer more seriously, knowing that you have pre-approved finance in place
The pre-approved finance may give you more negotiating power on the property you are thinking of purchasing, as your finance has been pre approved, giving the seller more confidence in your finance application.
Because you have a pre approval in place, most banks and lenders, will be quicker assessing your home loan application, as they have already done part of the work with your pre approval application.
A pre approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property. The bank or lender will still generally speaking value the property you have brought, re check your paperwork, and do employment checks. Generally speaking though, if your home loan has been pre approved, your formal finance application (when your find the property),. Should be more than likely approved.
If you have any comments, please leave below. If you would like more personal finance information, or to use my services as a mortgage broker, please contact me anytime.
Sunday, June 26, 2011
Why Compare Your Mortgage?
This is an email question from Steve in Leederville. His question asks - I have had my home loan for a couple of years, and have noticed that some banks are offering cheaper interest rates. My question is, should I compare my home loan?
It is important to know what your home loan interest rates are. It is also important to know if you are paying monthly or annual fees, and the features that your current home loan has.
You may be able to save a fair bit of money too, if another or new home loan product has come to the market, and may suit your current needs better.
A call or email to a mortgage broker, may help you get through the maze of comparing your home loan. Mortgage Brokers are paid commissions by banks or lenders, and most mortgage broker do not charge a fee (I Don’t, if your not sure, just ask your broker).
A good mortgage broker, should compare your current home loan, to other products on offer, plus the possible costs associated with either switching your home loan with your current lender, or switching to another bank, versus the savings you may receive.
It really costs nothing to compare your home loan, just a little bit of your time. In the case with Steve, the email question, we were able to switch his home loan to a different mortgage with the bank he was with, saving any possible exit fees. Steve’s interest rate was reduced from 7.4% to 7.1% on his $300,000 home loan. His savings were approx $66 a month, which is quite a significant saving. The bank fee, to switch his loan was $300, so the fee to switch the loan, will be repaid within the first 5 months of starting his new home loan.
If you would like a home loan health check, or to speak to a qualified mortgage broker, please contact me anytime.
It is important to know what your home loan interest rates are. It is also important to know if you are paying monthly or annual fees, and the features that your current home loan has.
You may be able to save a fair bit of money too, if another or new home loan product has come to the market, and may suit your current needs better.
A call or email to a mortgage broker, may help you get through the maze of comparing your home loan. Mortgage Brokers are paid commissions by banks or lenders, and most mortgage broker do not charge a fee (I Don’t, if your not sure, just ask your broker).
A good mortgage broker, should compare your current home loan, to other products on offer, plus the possible costs associated with either switching your home loan with your current lender, or switching to another bank, versus the savings you may receive.
It really costs nothing to compare your home loan, just a little bit of your time. In the case with Steve, the email question, we were able to switch his home loan to a different mortgage with the bank he was with, saving any possible exit fees. Steve’s interest rate was reduced from 7.4% to 7.1% on his $300,000 home loan. His savings were approx $66 a month, which is quite a significant saving. The bank fee, to switch his loan was $300, so the fee to switch the loan, will be repaid within the first 5 months of starting his new home loan.
If you would like a home loan health check, or to speak to a qualified mortgage broker, please contact me anytime.
Tuesday, June 7, 2011
The RBA Keeps Interest Rates On Hold
Some great news today for mortgage holders in Australia, with the decision by The Reserve Bank Of Australia to keep the official cash rate on hold at 4.75%.
It has been an interesting year to date, with many natural disasters possibly causing Australia’s biggest fall in GDP (Gross Domestic Product) in 20 years. Although inflation has increased this year, the RBA expects that this will possibly dissipate as recovery from the natural disasters occurs.
There is still some worry with the sovereign debt crisis in parts of Europe, and credit growth in Australia still remains quite subdued. There has been some softening in some housing markets around Australia; hence the RBA has decided that the current official cash rate of 4.75% is appropriate.
Lets hope they stay on hold for a while.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.
Australia's terms of trade are reaching very high levels and national income has been growing strongly. Private investment is picking up, led by very large capital spending programs in the resources sector, in response to high levels of commodity prices. Outside the resources sector, investment intentions have been revised lower recently. In the household sector thus far, there continues to be a degree of caution in spending and borrowing and a higher rate of saving out of current income. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand. The resumption of coal production in flooded mines is taking longer than initially expected, but production levels are now increasing again and there will be a mild boost to demand from the broader rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has softened, as have housing prices. The exchange rate remains, in real effective terms, close to its highest level in several decades. If sustained, this could be expected to exert continued restraint on the traded sector.
CPI inflation has risen over the past year, reflecting the effects of extreme weather and rises in utilities prices, with lower prices for traded goods providing some offset. The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
It has been an interesting year to date, with many natural disasters possibly causing Australia’s biggest fall in GDP (Gross Domestic Product) in 20 years. Although inflation has increased this year, the RBA expects that this will possibly dissipate as recovery from the natural disasters occurs.
There is still some worry with the sovereign debt crisis in parts of Europe, and credit growth in Australia still remains quite subdued. There has been some softening in some housing markets around Australia; hence the RBA has decided that the current official cash rate of 4.75% is appropriate.
Lets hope they stay on hold for a while.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.
Australia's terms of trade are reaching very high levels and national income has been growing strongly. Private investment is picking up, led by very large capital spending programs in the resources sector, in response to high levels of commodity prices. Outside the resources sector, investment intentions have been revised lower recently. In the household sector thus far, there continues to be a degree of caution in spending and borrowing and a higher rate of saving out of current income. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand. The resumption of coal production in flooded mines is taking longer than initially expected, but production levels are now increasing again and there will be a mild boost to demand from the broader rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has softened, as have housing prices. The exchange rate remains, in real effective terms, close to its highest level in several decades. If sustained, this could be expected to exert continued restraint on the traded sector.
CPI inflation has risen over the past year, reflecting the effects of extreme weather and rises in utilities prices, with lower prices for traded goods providing some offset. The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
Thursday, June 2, 2011
How Much Deposit Do I Need To Buy A $400,000 Home.
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $400,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($400,000 Property).
Property Purchase Price - $400,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $404,450 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
You will need $20,000 deposit, as a first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $404,450
Minus Your Deposit - $20,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $377,450
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $377,450 home loan, the mortgage insurance fee would be approximately $12,037 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $377,450
+
Mortgage Insurance Fee $12,037
Total Home Loan $389,487
Your approx repayments on a $389,487 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2617.48 per month,
Buying Your Next Home Or Investment Property ($400,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $400,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $400,000
Transfer Stamp Duty - $13,015
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $417,465 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
Plus Fees (as above) $17,465
Total Deposit Required $37,465
You will need $37,465 deposit, as a non first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $417,465
Minus Your Deposit - $37,465
Home Loan Required - $380,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $380,000 home loan, the mortgage insurance fee would be approximately $12,118 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $380,000
+
Mortgage Insurance Fee $12,118
Total Home Loan $392,118
Your approx repayments on a $392,118 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,635.16 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $400,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Lets look at how much deposit you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $400,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($400,000 Property).
Property Purchase Price - $400,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $404,450 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
You will need $20,000 deposit, as a first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $404,450
Minus Your Deposit - $20,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $377,450
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $377,450 home loan, the mortgage insurance fee would be approximately $12,037 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $377,450
+
Mortgage Insurance Fee $12,037
Total Home Loan $389,487
Your approx repayments on a $389,487 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2617.48 per month,
Buying Your Next Home Or Investment Property ($400,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $400,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $400,000
Transfer Stamp Duty - $13,015
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $417,465 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
Plus Fees (as above) $17,465
Total Deposit Required $37,465
You will need $37,465 deposit, as a non first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $417,465
Minus Your Deposit - $37,465
Home Loan Required - $380,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $380,000 home loan, the mortgage insurance fee would be approximately $12,118 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $380,000
+
Mortgage Insurance Fee $12,118
Total Home Loan $392,118
Your approx repayments on a $392,118 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,635.16 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $400,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Monday, May 30, 2011
How Much Deposit Do I Need To Buy A $375,000 Home In Western Australia
How Much Deposit Do I Need To Buy A $375,000 Home.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $375,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($375,000 Property).
Property Purchase Price - $375,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $379,350 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
You will need $18,750 deposit, as a first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $379,350
Minus Your Deposit - $18,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $353,600
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $353,600 home loan, the mortgage insurance fee would be approximately $11,277 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $353,600
+
Mortgage Insurance Fee $11,277
Total Home Loan $364,877
Your approx repayments on a $364,977 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2452.09 per month,
Buying Your Next Home Or Investment Property ($375,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $375,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $375,000
Transfer Stamp Duty - $11,828
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $391,178 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
Plus Fees (as above) $16,178
Total Deposit Required $34,928
You will need $34,928 deposit, as a non first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $391,178
Minus Your Deposit - $34,928
Home Loan Required - $356.250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $356,250 home loan, the mortgage insurance fee would be approximately $11,361 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $356,250
+
Mortgage Insurance Fee $11,361
Total Home Loan $367,611
Your approx repayments on a $367,611 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,470.46 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $375,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $375,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($375,000 Property).
Property Purchase Price - $375,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $379,350 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
You will need $18,750 deposit, as a first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $379,350
Minus Your Deposit - $18,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $353,600
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $353,600 home loan, the mortgage insurance fee would be approximately $11,277 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $353,600
+
Mortgage Insurance Fee $11,277
Total Home Loan $364,877
Your approx repayments on a $364,977 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2452.09 per month,
Buying Your Next Home Or Investment Property ($375,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $375,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $375,000
Transfer Stamp Duty - $11,828
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $391,178 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
Plus Fees (as above) $16,178
Total Deposit Required $34,928
You will need $34,928 deposit, as a non first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $391,178
Minus Your Deposit - $34,928
Home Loan Required - $356.250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $356,250 home loan, the mortgage insurance fee would be approximately $11,361 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $356,250
+
Mortgage Insurance Fee $11,361
Total Home Loan $367,611
Your approx repayments on a $367,611 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,470.46 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $375,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Tuesday, May 24, 2011
How Much Deposit Do I Need To Buy A $350,000 Home In Western Australia
How Much Deposit Do I Need To Buy A $350,000 Home.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $350,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $350,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $350,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($350,000 Property).
Property Purchase Price - $350,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,350 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $354,300 (Including The Fees)
Deposit Required $17,500 (5% of $350,000)
You will need $17,500 deposit, as a first home buyer to purchase a property costing $350,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $350,000 in Western Australia –
Purchase price (including fees) - $354,300
Minus Your Deposit - $17,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $329,800
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $350,000 property, with a $329,800 home loan, the mortgage insurance fee would be approximately $10,518 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $329,800
+
Mortgage Insurance Fee $10,518
Total Home Loan $340,3188
Your approx repayments on a $340,318 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2287.05 per month,
Buying Your Next Home Or Investment Property ($350,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $350,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $350,000
Transfer Stamp Duty - $10,735
Settlement Agent Fee - $1,350 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $365,035 (Including The Fees)
Deposit Required $17,250 (5% of $325,000)
Plus Fees (as above) $15,035
Total Deposit Required $32,535
You will need $32,535 deposit, as a non first home buyer to purchase a property costing $350,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $350,000 in Western Australia –
Purchase price (including fees) - $365,035
Minus Your Deposit - $32,535
Home Loan Required - $332,500
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $350,000 property, with a $332,500 home loan, the mortgage insurance fee would be approximately $10,604 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $332,500
+
Mortgage Insurance Fee $10,604
Total Home Loan $343,104
Your approx repayments on a $343,104 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,305.77 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $350,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $350,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $350,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $350,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($350,000 Property).
Property Purchase Price - $350,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,350 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $354,300 (Including The Fees)
Deposit Required $17,500 (5% of $350,000)
You will need $17,500 deposit, as a first home buyer to purchase a property costing $350,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $350,000 in Western Australia –
Purchase price (including fees) - $354,300
Minus Your Deposit - $17,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $329,800
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $350,000 property, with a $329,800 home loan, the mortgage insurance fee would be approximately $10,518 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $329,800
+
Mortgage Insurance Fee $10,518
Total Home Loan $340,3188
Your approx repayments on a $340,318 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2287.05 per month,
Buying Your Next Home Or Investment Property ($350,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $350,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $350,000
Transfer Stamp Duty - $10,735
Settlement Agent Fee - $1,350 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $365,035 (Including The Fees)
Deposit Required $17,250 (5% of $325,000)
Plus Fees (as above) $15,035
Total Deposit Required $32,535
You will need $32,535 deposit, as a non first home buyer to purchase a property costing $350,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $350,000 in Western Australia –
Purchase price (including fees) - $365,035
Minus Your Deposit - $32,535
Home Loan Required - $332,500
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $350,000 property, with a $332,500 home loan, the mortgage insurance fee would be approximately $10,604 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $332,500
+
Mortgage Insurance Fee $10,604
Total Home Loan $343,104
Your approx repayments on a $343,104 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,305.77 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $350,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Sunday, February 13, 2011
Can I Consolidate My Credit Card Debt Into My Home Loan?
This is an email question, which today will be anonymous for personal reasons. The questions asked, I have $65,000 worth of credit card debt, I having problems keeping up with the repayments, and cant seem to pay them down, can I consolidate this credit card debt into my home loan?
Getting into a bit of debt with credit cards these days is quite common. They can be really hard to pay off, as some interest rates on them can be more than 20%, depending on the credit card conditions. In a short answer to the question, Can credit card debt be consolidated into an existing home loan, the short answer is yes, if you have enough equity in your home.
Lets look at what I mean by equity. All banks or lenders lend money against the property value. Most banks and lenders will lend up to 95% of the property value. For example, of you have a property worth $400,000, most banks and lenders may lend up to 95% of this value. 95% of $400,000 is $380,000, so you may be able to borrow up to this amount. When you borrow more than 80% of the property value though, the home-loan will be subject to lenders mortgage insurance, which may be quite expensive if you choose to do this.
In the email question today, this customer has a property worth $395,000, and his current home loan limit was $235,000. He wanted to consolidate the credit card debt into his home loan, which was $65,000. The home loan would increase by $65,000, taking the new limit to $300,000. The customer had income to support the increase in his home loan to $300,000. The other good thing was that with the increase in the home loan to $300,000 and a current property value of $395,000, the loan wasn’t subject to lenders mortgage insurance, as the loan to property value (LVR) was less than 80%.
The paperwork we needed to apply for the home loan increase was 6 months of each credit cards statement, to see that the conduct with the credit card payments was satisfactory. If you are having problems with credit cards or other loans, there are some lenders that may not require these statements.
In this customers case the increase to his mortgage was approved, and we paid out all of those credit cards. The customer also closed all but one of those credit cards to ensure that he wouldn’t max those limits again. In this example, the customers monthly mortgage repayments went up from approx $1,578 a month, to $2,017 a month. The approx credit card repayments were approx $1,800 a month, so the customers monthly commitments were reduced significantly.
The customer is also committing to pay more off per month than the minimum repayment too, as the home loan term is 30 years, and if he was to pay the minimum repayments, the credit card debt consolidated may cost him more in the long term.
If you are thinking about consolidating your credit card or other personal debts into your mortgage, and would like some obligation free information, please contact me anytime, and I can give you your options, and the costs involved to consolidate your debts into your home loan.
If you have any comments, please leave below, or would like to use my services as a mortgage broker, please contact me anytime.
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