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 real estate. Show all posts
Showing posts with label real estate. Show all posts
Wednesday, February 8, 2012
Tuesday, October 4, 2011
The Reserve Bank Keeps Rates On Hold And Hints At A Rate Cut.
The Reserve Bank Of Australia has decided to keep the official cash rate on hold at its meeting today. Great news for all mortgage holders. More great news may be ahead, as the Reserve Bank Governor, Glenn Stevens also indicated a possible rate reduction in his statement today.
With all the turmoil in the financial markets at the moment, like the sovereign debt issues in Europe and the United States, some small concerns over growth in Asia and share market volatility, inflation in Australia seems to have abated somewhat.
Real concerns by many Australians of a possible increase in unemployment, house value declines and uncertainty with the global economy has seen spending cut back and an increase in savings. These factors have contributed to inflationary pressures abating, and may give the RBA some real consideration and scope for an easing of current monetary policy (a rate decrease). Lets hope so. Certainly many businesses would welcome a rate decrease, especially those in the retail sector, which have been hit hard by a decrease in spending in recent times.
The official 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.
Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth. While temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States. Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries.
It will take more time for evidence of any effects of the recent European and US financial turbulence on economic activity in other regions to emerge. Thus far, indications are that economic activity is continuing to expand in China and most of Asia. Nonetheless, recent events have led forecasters to reduce their estimates for global GDP growth, which is now expected to be about average this year and next. Prices for commodities have declined over recent weeks, though in general they remain high.
Australia's terms of trade are very high, which has increased national income considerably. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. In other sectors, cautious behaviour by households and the earlier rise in the exchange rate have had a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended. While there remain good reasons to expect solid growth over the medium term, the indications are that the pace of near-term growth is unlikely to be as strong as earlier expected, due both to local and global factors, including the financial turmoil and related effects on business confidence.
Underlying inflation stopped falling and began to increase earlier this year. The Board has been concerned about the prospect of a further pick-up over the period ahead, but over recent months has been weighing the question of whether a period of weaker than expected conditions would contain that pick-up in inflation. Recently revised data show a pick-up to date in the underlying pace of price rises that was less sharp than initially indicated. Moreover, with labour market conditions now a little softer and households more concerned about the possibility of unemployment rising, the likelihood of a significant acceleration in labour costs outside the resources and related sectors is lessening.
Taking into account all the recent information, the path for inflation may now be more consistent with the 2–3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme. This assessment will be reviewed on receipt of further data on prices ahead of the Board's next meeting. An improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary.
The Board noted that financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets. The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined.
At today's meeting the Board judged the current cash rate remained appropriate. As always, 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 some mortgage information, or to speak to a qualified mortgage broker, please contact me anytime.
With all the turmoil in the financial markets at the moment, like the sovereign debt issues in Europe and the United States, some small concerns over growth in Asia and share market volatility, inflation in Australia seems to have abated somewhat.
Real concerns by many Australians of a possible increase in unemployment, house value declines and uncertainty with the global economy has seen spending cut back and an increase in savings. These factors have contributed to inflationary pressures abating, and may give the RBA some real consideration and scope for an easing of current monetary policy (a rate decrease). Lets hope so. Certainly many businesses would welcome a rate decrease, especially those in the retail sector, which have been hit hard by a decrease in spending in recent times.
The official 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.
Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth. While temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States. Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries.
It will take more time for evidence of any effects of the recent European and US financial turbulence on economic activity in other regions to emerge. Thus far, indications are that economic activity is continuing to expand in China and most of Asia. Nonetheless, recent events have led forecasters to reduce their estimates for global GDP growth, which is now expected to be about average this year and next. Prices for commodities have declined over recent weeks, though in general they remain high.
Australia's terms of trade are very high, which has increased national income considerably. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. In other sectors, cautious behaviour by households and the earlier rise in the exchange rate have had a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended. While there remain good reasons to expect solid growth over the medium term, the indications are that the pace of near-term growth is unlikely to be as strong as earlier expected, due both to local and global factors, including the financial turmoil and related effects on business confidence.
Underlying inflation stopped falling and began to increase earlier this year. The Board has been concerned about the prospect of a further pick-up over the period ahead, but over recent months has been weighing the question of whether a period of weaker than expected conditions would contain that pick-up in inflation. Recently revised data show a pick-up to date in the underlying pace of price rises that was less sharp than initially indicated. Moreover, with labour market conditions now a little softer and households more concerned about the possibility of unemployment rising, the likelihood of a significant acceleration in labour costs outside the resources and related sectors is lessening.
Taking into account all the recent information, the path for inflation may now be more consistent with the 2–3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme. This assessment will be reviewed on receipt of further data on prices ahead of the Board's next meeting. An improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary.
The Board noted that financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets. The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined.
At today's meeting the Board judged the current cash rate remained appropriate. As always, 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 some mortgage information, or to speak to a qualified mortgage broker, please contact me anytime.
Tuesday, August 2, 2011
The RBA Keeps Interest Rates On hold.
The RBA Keeps Interest Rates On hold?
Some great news for mortgage holders today, as The Reserve Bank of Australia kept the official cash rate on hold, at 4.75%. There had been high speculation that the RBA may increase the official cash rate today, but thankfully mortgage holders have been spared a rate rise.
There is still an expectation that the RBA may increase the cash rate in the coming months, but they look like they are taking a wait and see approach, as there is still a fair bit of uncertainty with both European and American public finances.
Credit growth in Australia has declined in recent months, and low by historical standards. House prices too, have also softened over recent months, and with a few other factors, may have helped the RBA decide to keep rates on hold. I personally think this is a great decision for us all.
The official statement from Glenn Stevens, Governor: Monetary Policy Decision: -
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, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries both contributed to the slowing. It is still not clear how persistent this slower growth will be. The supply-chain disruptions are now gradually abating and commodity prices have softened of late, though they generally remain high. In China most indications suggest only a mild slowdown so far.
The central scenario for the world economy over the next couple of years envisaged by most forecasters remains one of growth below the pace of 2010, but at or above long-term averages. Downside risks have increased, however, as concerns have grown over the outlook for the public finances of both Europe and the United States.
Australia's terms of trade are now at very high levels and national income has been growing strongly. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. But in other sectors, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The resumption of coal production continues, but a full recovery of flood-affected production now looks unlikely before early next year. Precautionary behaviour by households also looks likely to keep some areas of demand weaker in the near term than earlier expected. Overall, growth in real GDP through 2011 is now likely to be at about trend. Over the medium term, overall growth is still likely to be at trend or higher, unless the world economy deteriorates noticeably.
Growth in employment has moderated and the unemployment rate has been little changed, near 5 per cent, for some time now. 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, though productivity growth remains weak.
Year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year. As these effects reverse over the next couple of quarters, CPI inflation should decline. But measures that give a better indication of the trend in inflation have begun to rise over the past six months, after declining for the previous two years. While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation.
It is appropriate under such circumstances for monetary policy to exert a degree of restraint. Most financial indicators suggest that it has been doing so, as a result of the Board's decisions last year. Credit growth has declined over recent months and is very subdued by historical standards, even with evidence of greater willingness to lend. Most asset prices, including housing prices, have also softened over recent months. The exchange rate is high. Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.
At today's meeting, the Board considered whether the recent information warranted further policy tightening. On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. 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, please contact me anytime. I work the Perth metro area.
Some great news for mortgage holders today, as The Reserve Bank of Australia kept the official cash rate on hold, at 4.75%. There had been high speculation that the RBA may increase the official cash rate today, but thankfully mortgage holders have been spared a rate rise.
There is still an expectation that the RBA may increase the cash rate in the coming months, but they look like they are taking a wait and see approach, as there is still a fair bit of uncertainty with both European and American public finances.
Credit growth in Australia has declined in recent months, and low by historical standards. House prices too, have also softened over recent months, and with a few other factors, may have helped the RBA decide to keep rates on hold. I personally think this is a great decision for us all.
The official statement from Glenn Stevens, Governor: Monetary Policy Decision: -
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, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries both contributed to the slowing. It is still not clear how persistent this slower growth will be. The supply-chain disruptions are now gradually abating and commodity prices have softened of late, though they generally remain high. In China most indications suggest only a mild slowdown so far.
The central scenario for the world economy over the next couple of years envisaged by most forecasters remains one of growth below the pace of 2010, but at or above long-term averages. Downside risks have increased, however, as concerns have grown over the outlook for the public finances of both Europe and the United States.
Australia's terms of trade are now at very high levels and national income has been growing strongly. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. But in other sectors, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The resumption of coal production continues, but a full recovery of flood-affected production now looks unlikely before early next year. Precautionary behaviour by households also looks likely to keep some areas of demand weaker in the near term than earlier expected. Overall, growth in real GDP through 2011 is now likely to be at about trend. Over the medium term, overall growth is still likely to be at trend or higher, unless the world economy deteriorates noticeably.
Growth in employment has moderated and the unemployment rate has been little changed, near 5 per cent, for some time now. 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, though productivity growth remains weak.
Year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year. As these effects reverse over the next couple of quarters, CPI inflation should decline. But measures that give a better indication of the trend in inflation have begun to rise over the past six months, after declining for the previous two years. While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation.
It is appropriate under such circumstances for monetary policy to exert a degree of restraint. Most financial indicators suggest that it has been doing so, as a result of the Board's decisions last year. Credit growth has declined over recent months and is very subdued by historical standards, even with evidence of greater willingness to lend. Most asset prices, including housing prices, have also softened over recent months. The exchange rate is high. Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.
At today's meeting, the Board considered whether the recent information warranted further policy tightening. On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. 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, please contact me anytime. I work the Perth metro area.
Saturday, July 30, 2011
How Much Deposit Do I Need To Buy A $475,000 Home In Western Australia?
How Much Deposit Do I Need To Buy A $475,000 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 $475,000 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 $475,000 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 $475,000 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 ($475,000 Property).
Property Purchase Price - $475,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,700 (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 - $479,650 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
You will need $23,750 deposit, as a first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $479,650
Minus Your Deposit - $23,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $448,900
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 $475,000 property, with a $448,900 home loan, the mortgage insurance fee would be approximately $14,316 (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 $448,900
+
Mortgage Insurance Fee $14,316
Total Home Loan $463,216
Your approx repayments on a $463,216 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,112.96 per month,
Buying Your Next Home Or Investment Property ($475,000 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 $475,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $475,000
Transfer Stamp Duty - $16,578
Settlement Agent Fee - $1,700 (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 - $496,228 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
Plus Fees (as above) $21,228
Total Deposit Required $44,978
You will need $44,978 deposit, as a non first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $496,228
Minus Your Deposit - $44,978
Home Loan Required - $451,250
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 $475,000 property, with a $451,250 home loan, the mortgage insurance fee would be approximately $14,391 (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 $451,250
+
Mortgage Insurance Fee $14,391
Total Home Loan $465,641
Your approx repayments on a $465,641 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,129.26 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $475,000 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, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
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 $475,000 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 $475,000 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 $475,000 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 ($475,000 Property).
Property Purchase Price - $475,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,700 (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 - $479,650 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
You will need $23,750 deposit, as a first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $479,650
Minus Your Deposit - $23,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $448,900
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 $475,000 property, with a $448,900 home loan, the mortgage insurance fee would be approximately $14,316 (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 $448,900
+
Mortgage Insurance Fee $14,316
Total Home Loan $463,216
Your approx repayments on a $463,216 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,112.96 per month,
Buying Your Next Home Or Investment Property ($475,000 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 $475,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $475,000
Transfer Stamp Duty - $16,578
Settlement Agent Fee - $1,700 (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 - $496,228 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
Plus Fees (as above) $21,228
Total Deposit Required $44,978
You will need $44,978 deposit, as a non first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $496,228
Minus Your Deposit - $44,978
Home Loan Required - $451,250
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 $475,000 property, with a $451,250 home loan, the mortgage insurance fee would be approximately $14,391 (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 $451,250
+
Mortgage Insurance Fee $14,391
Total Home Loan $465,641
Your approx repayments on a $465,641 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,129.26 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $475,000 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, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Sunday, July 17, 2011
How Much Deposit Do I Need To Buy A $450,000 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 $450,000 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 $450,000 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 $450,000 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 ($450,000 Property).
Property Purchase Price - $450,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,600 (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 - $454,550 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
You will need $22,500 deposit, as a first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $454,550
Minus Your Deposit - $22,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $425,050
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 $450,000 property, with a $425,050 home loan, the mortgage insurance fee would be approximately $13,555 (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 $425,050
+
Mortgage Insurance Fee $13,555
Total Home Loan $438,065
Your approx repayments on a $438,065 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,947.57 per month,
Buying Your Next Home Or Investment Property ($450,000 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 $450,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $450,000
Transfer Stamp Duty - $15,390
Settlement Agent Fee - $1,600 (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 - $469,940 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
Plus Fees (as above) $19,940
Total Deposit Required $42,440
You will need $32,440 deposit, as a non first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $469,940
Minus Your Deposit - $42,440
Home Loan Required - $427,500
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 $450,000 property, with a $427,500 home loan, the mortgage insurance fee would be approximately $13,634 (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 $427,500
+
Mortgage Insurance Fee $13,634
Total Home Loan $441,134
Your approx repayments on a $441,134 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,964.56 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $450,000 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, Western Australia, 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 $450,000 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 $450,000 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 ($450,000 Property).
Property Purchase Price - $450,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,600 (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 - $454,550 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
You will need $22,500 deposit, as a first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $454,550
Minus Your Deposit - $22,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $425,050
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 $450,000 property, with a $425,050 home loan, the mortgage insurance fee would be approximately $13,555 (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 $425,050
+
Mortgage Insurance Fee $13,555
Total Home Loan $438,065
Your approx repayments on a $438,065 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,947.57 per month,
Buying Your Next Home Or Investment Property ($450,000 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 $450,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $450,000
Transfer Stamp Duty - $15,390
Settlement Agent Fee - $1,600 (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 - $469,940 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
Plus Fees (as above) $19,940
Total Deposit Required $42,440
You will need $32,440 deposit, as a non first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $469,940
Minus Your Deposit - $42,440
Home Loan Required - $427,500
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 $450,000 property, with a $427,500 home loan, the mortgage insurance fee would be approximately $13,634 (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 $427,500
+
Mortgage Insurance Fee $13,634
Total Home Loan $441,134
Your approx repayments on a $441,134 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,964.56 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $450,000 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, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
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.
Monday, June 13, 2011
How Much Deposit Do I Need To Buy A $425,000 Home
How Much Deposit Do I Need To Buy A $425,000 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 $425,000 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 $425,000 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 $425,000 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 ($425,000 Property).
Property Purchase Price - $425,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,550 (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 - $429,600 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
You will need $21,250 deposit, as a first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $429,600
Minus Your Deposit - $21,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $401,350
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 $425,000 property, with a $401,350 home loan, the mortgage insurance fee would be approximately $12,799 (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 $401,350
+
Mortgage Insurance Fee $12,799
Total Home Loan $414,149
Your approx repayments on a $414,149 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2783.21.48 per month,
Buying Your Next Home Or Investment Property ($425,000 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 $425,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $425,000
Transfer Stamp Duty - $14,203
Settlement Agent Fee - $1,550 (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 - $443,703 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
Plus Fees (as above) $18,703
Total Deposit Required $39,953
You will need $39,953 deposit, as a non first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $443,703
Minus Your Deposit - $39,953
Home Loan Required - $403,750
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 $425,000 property, with a $403,750 home loan, the mortgage insurance fee would be approximately $12,875 (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 $403,750
+
Mortgage Insurance Fee $12,875
Total Home Loan $416,625
Your approx repayments on a $416,625 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,799.85 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $425,000 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.
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 $425,000 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 $425,000 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 $425,000 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 ($425,000 Property).
Property Purchase Price - $425,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,550 (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 - $429,600 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
You will need $21,250 deposit, as a first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $429,600
Minus Your Deposit - $21,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $401,350
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 $425,000 property, with a $401,350 home loan, the mortgage insurance fee would be approximately $12,799 (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 $401,350
+
Mortgage Insurance Fee $12,799
Total Home Loan $414,149
Your approx repayments on a $414,149 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2783.21.48 per month,
Buying Your Next Home Or Investment Property ($425,000 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 $425,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $425,000
Transfer Stamp Duty - $14,203
Settlement Agent Fee - $1,550 (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 - $443,703 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
Plus Fees (as above) $18,703
Total Deposit Required $39,953
You will need $39,953 deposit, as a non first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $443,703
Minus Your Deposit - $39,953
Home Loan Required - $403,750
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 $425,000 property, with a $403,750 home loan, the mortgage insurance fee would be approximately $12,875 (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 $403,750
+
Mortgage Insurance Fee $12,875
Total Home Loan $416,625
Your approx repayments on a $416,625 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,799.85 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $425,000 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, 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.
Wednesday, May 18, 2011
How Much Deposit Do I Need To Buy A $325,000 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 $325,000 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 $325,000 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 $325,000 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 ($325,000 Property).
Property Purchase Price - $325,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,300 (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 - $329,250 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
You will need $16,250 deposit, as a first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $329,250
Minus Your Deposit - $16,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $306,000
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 $325,000 property, with a $306,000 home loan, the mortgage insurance fee would be approximately $9,758 (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 $306,000
+
Mortgage Insurance Fee $9,758
Total Home Loan $315,758
Your approx repayments on a $315,758 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2121.99 per month,
Buying Your Next Home Or Investment Property ($325,000 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 $325,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $325,000
Transfer Stamp Duty - $9,785
Settlement Agent Fee - $1,300 (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 - $339,035 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
Plus Fees (as above) $14,035
Total Deposit Required $30,285
You will need $30,285 deposit, as a non first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $339,035
Minus Your Deposit - $30,285
Home Loan Required - $308,750
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 $325,000 property, with a $308,750 home loan, the mortgage insurance fee would be approximately $9,847 (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 $308,750
+
Mortgage Insurance Fee $9,847
Total Home Loan $318,597
Your approx repayments on a $318,597 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,141.07 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $325,000 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 $325,000 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 $325,000 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 ($325,000 Property).
Property Purchase Price - $325,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,300 (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 - $329,250 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
You will need $16,250 deposit, as a first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $329,250
Minus Your Deposit - $16,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $306,000
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 $325,000 property, with a $306,000 home loan, the mortgage insurance fee would be approximately $9,758 (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 $306,000
+
Mortgage Insurance Fee $9,758
Total Home Loan $315,758
Your approx repayments on a $315,758 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2121.99 per month,
Buying Your Next Home Or Investment Property ($325,000 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 $325,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $325,000
Transfer Stamp Duty - $9,785
Settlement Agent Fee - $1,300 (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 - $339,035 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
Plus Fees (as above) $14,035
Total Deposit Required $30,285
You will need $30,285 deposit, as a non first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $339,035
Minus Your Deposit - $30,285
Home Loan Required - $308,750
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 $325,000 property, with a $308,750 home loan, the mortgage insurance fee would be approximately $9,847 (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 $308,750
+
Mortgage Insurance Fee $9,847
Total Home Loan $318,597
Your approx repayments on a $318,597 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,141.07 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $325,000 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.
Thursday, February 24, 2011
How Can I Use Equity To Buy An Investment Property?
This is an email questions from Doug in Mount Lawley. I have a current home with plenty of equity, how can I use that equity to buy an investment property?
The first thing we will look at is, what is equity. Equity is the value of your property compared to the value of the mortgage that you owe on it. For example, if you have a property worth $500,000 and your home loan is $150,000, you have $350,000 in equity.
In Doug’s question, he has plenty of equity, as seen in the example above. He has a house worth $500,000 and a home loan of $150,000. He wants to buy an investment property in Melbourne, even though his home is in Perth. This is ok with most banks and lenders, as generally they will lend against any Australian property. He wants to buy a property for around $300,000 and also wants to borrow the associated fees, like transfer stamp duty and settlement agents fees, which will be around $17,000.
Doug has enough income to support the new loan, plus most banks and lenders will look at the proposed rental income to help support the new loan application.
As far as property value, Doug’s property was valued at $500,000 by a bank valuer. The new property purchase price was $300,000. The banks will look at the combined property value, which in this case is $500,000 plus $300,000, which equals $800,000. The banks will lend up to 80% of the combined property value without mortgage insurance. 80% of $800,000 is $640,000, so Doug can borrow up to $640,000 without mortgage insurance. Most banks and lenders will lend up to 95% of the property value for an investment property, but any loan to property value above 80% will be subject to Lenders Mortgage Insurance.
In the example above, Doug has a current mortgage of $150,000, plus wanted to borrow $317,000 to purchase the investment property (which includes borrowing the fees to purchase the property). Total loan value (in our example $467,000) against the property value ($800,000) was around 58%, so Doug wasn’t subject to mortgage insurance.
It is important to seek advice from an accountant or financial planner before you purchase an investment property. It important to get the correct structure when buying the new home, and most tax effective beneficial ways for your personal financial situation, before you purchase the property.
By structure I mean how you are going to buy the investment property. Some things to consider may include –
1/ Will you buy the investment property in joint names, with your partner, or is it more financially beneficial and tax effective to purchase the property in only one name, as one partner may not earn as much money, or maybe staying at home or working part time looking after children.
2/ You could buy the property in a trust name, non trading company name, or maybe even buy the property for your self managed super fund (some banks will lend against a property in a self managed super fund, but the interest rates are generally more expensive)
3/ Will you go interest only repayments on the investment home loan? Generally speaking, the interest on an investment home loan will become tax deductible, so your accountant may recommend interest only repayments.
It is important to get the structure correct before you purchase the investment property. Advice from your accountant or financial planner is highly recommended before you purchase the investment property, to maximize the financial benefits for your personal financial situation.
Tuesday, February 22, 2011
What Does A Mortgage Broker Do?
This is an email question from Paul in Dianella. Why should I use you as my mortgage broker? What benefits can you give, rather than going to direct to a bank?
These are good questions, lets have a look at them. As your mortgage broker, I can offer you mortgage information from 25 different lenders. I can help you source your home loan that would be most beneficial to your personal financial needs and goals. If your current bank or lender has said no to you for a home loan, another bank may consider your proposal. All banks and lenders have different credit policies, so while one bank may not consider your home loan, another bank or lender might.
I also offer a personalised service, you deal with me directly, rather than a bank or lenders call centre. I work seven days a week, and after hours, so we can meet at a time and location that’s suitable to you (your home, work, café, my office, etc). I have had a long term relationship with most of my customers. They can call me 7 days a week, to discuss their mortgage needs, get a property report on a house they are considering, or a home loan scenario, if they are thinking of something. It is a really handy service, to have a relationship with a mortgage broker, as it would be with an accountant or financial planner, to discuss your needs as you move through life.
I also take all the worry out of applying for a home loan. I take care and collect of all the paperwork required from you, and will help with things like first home owner grant and REBA applications. I pride myself on my reputation, and try to exceed all my customers expectations, to help make the home loan process as stress free as possible.
Sounds like a big sales spill, and it is certainly your choice when your are thinking about who to use for your home loan, but a mortgage broker can add real value, and offers the same products and interest rates as the banks do.
Tuesday, January 18, 2011
Free Property And Suburb Reports in Western Australia.
When buying a home, whether it be your first home, second home or more, research is everything. There are many price variances with properties within any particular area, so it really needs good research to discover the property that is suitable for you, and what you consider to be good value.
This is where I can help a little. I can offer you free property and suburb reports on any property, suburb or town in Western Australia. These reports are sourced from RP Data, and contain very useful information, which may help you research your property purchase. They may even save you some money, as you learn about the area you are interested in. Even if you own a property, and would like a property report on your home, contact me, and I will email you one. Let’s look at what these reports contain.
Free Suburb Reports.
I can give you all the listings in any suburb in Western Australia for the last six months. These free suburb reports have this information –
How long each property in that suburb has been listed for
If there has been any listing price variances (eg. If the asking price has been reduced)
The actual sale price of all properties that have sold, for the last 6 months in any suburb.
A very handy tool, which will give you some background information on a suburb you may be interested in. Now lets look at what the property reports offer-
Free Property Reports.
The individual free property reports in Western Australia contain this type of information –
How much that property has sold before previously.
Details of the property, like block size, house type etc.
Zoning details.
Demographics and area profile.
Median sale price for the past 10 years in that suburb.
A very handy and useful tool, that will help you in your research, as you decide what is best for you and your family. These property and suburb reports are free, contact me anytime, and I will email you these reports in PDF format. Of course if you are looking for a mortgage broker, I would be more than happy to help you with your home loan.
If you have any comments or questions, please leave below. If you would like more personal mortgage information, please contact me anytime.
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