Q: I am a fit, female 61yrs living alone, paying $1500 rent a month and fully employed.
Am I able to buy a place of my own?
All my money is in VicSuper
A: Hi Toni
The answer is yes. What lenders will look at is not just your ability to repay the loan now but also in the future and whether that will put you in financial hardship when you stop working/retire.
How much you want to borrow, what you own and how much is in your Super will be important factors for the lenders to consider.
Happy to discuss further to explore your options.
My contact number is 0400889022
Q: We are looking at a new loan and want to know what the difference is between redraw and offset account. Does interest rate change if we did have the offset?
A: Hi Drew
Very good question and one many of us most likely take for granted at the moment as the majority of lenders will offer the offset as part of a package deal which means an ongoing fee of some sort with a lower rate.
Redraw means you are taking money you have access to straight from the mortgage. This is money where you have made extra repayments over and above your lender required amount.
This is transferred to another account like a savings account so you will then use that money (ATM or eft pls or net transactions). It also takes time (sometimes up to 2 business days) especially if you transfer it from a different bank.
The offset means pretty close to the same thing in that it allows you to access money over and above your requirements. But the account is not the mortgage itself (it is a seperate account) and you can pretty much use it straight away without the need to transfer it anywhere.
Whether you choose to have an offset or a normal loan with redraw however depends on your specific set of circumstances and needs. A good broker (or banker) should explain that to you when you meet.
Hope that answers your question.
Love to continue the conversation.
Q: We have recently taken out a mortgage but have had to go with a loan that has a higher than average interest rate because of a small issue on my husbands credit file. Assuming we make payments early, how long until we can refinance at a lower rate?
A: Hi Michelle
Your question is very interesting and many people in similar circumstances also do not fully understand what their next move should be or when it should be done.
To get you a more accurate answer I would need understand what is on the credit file and when it will "fall off" the file. Yes past mistakes is not a true reflection of what you are 7 years later.
That said the usual way is to approach the current lender and ask them for a better product/rate once you have a history of repayments behind you. Most will be willing to "re-price" your loan and give a more acceptable rate. So aim for 12 months of making your repayment obligations on time every time before you negotiate.
Another more mainstream lender will only entertain your situation if the credit file has changed. As a result they won't take into account your good conduct with the higher rate lender anyway.
Hope that helps. Happy to discuss further to clarify any questions you may have.
Q: Our house is at the front of a 1200 square metre block and we are thinking of building a granny flat out the back to rent out and obtain additional income. Apart from obtaining council approval and building quotes, is there anything we need to be aware from a finance perspective?
A: Hi David
That is a very interesting question and one that is getting more and more popular than you might think.
From a finance perspective, there are a few things to consider. Apart from your normal income, when looking at how much finance you can borrow, some lending institutions will differ on whether they will include the rent on the "granny flat" or not as additional income.
Then there is the question of how you want the process to go. Do you want to do it as a construction loan where the lender controls how much money you can draw out for the build Or do you want to just simply get a chunk of money out (accessing your equity) and using that as and when needed. How you proceed will of course depend on your own individual situation.
I am in Melbourne, I would love to continue the conversation with you further.
0400 889 022
Q: Looking at getting my first credit card for fairly minor purchases. At the moment I'm thinking the best option is a no annual fee, low interest card such as Coles MasterCard. Can anyone offer tips or advice for someone new to the market ?
A: Hi Michael
It is a very interesting question given there are so much options in the market yet not a lot of people know how to properly use one.
At the very cheapest end I would get a debit card linked to my existing savings account. This is usually free and is also a "master card" or "Visa card". It's my own money and I can use it to purchase things from the net. Because it is my own money there is no interest or fees. Speak to your existing bank where you have a savings account.
When you talk about an actual credit card (whether it is a low rate or platinum), the one thing to bear in mind is the interest rate charged. These can range from 10-24%. All these cards have an interest free period but only if you pay the full balance of the statement every single month. Missing 1cent of that balance will forfeit your internet free period and every purchase you made will have interest charged to it.
Some cards have gimmicks like points via purchases or air points. But the real issue is that somewhere along the way you will forget to pay the full balance and end up paying interest.
So the only way to get the full benefits of a credit card is through discipline.
Hope that makes sense.
Looking forward to speaking to you further if you have any questions.
Q: If you could pay up to $600 a week off a mortgage, approximately how much could you borrow currently?
A: Hi Dan
Unfortunately banks and lenders will not loan you money based on how much you can repay.
As brokers we try to work out how much you can borrow based on how much you earn, how much you owe (and its associated monthly commitments) and what your estimated living expenses are. From that we would be able to work out how much you can borrow.
This figure will of course change depending on product and lender. It is from this that we can then work out how much the repayments are.
Love to continue the conversation and learn more about you and what your needs are.
Looking forward to your responses.
Q: I need a financial advice on my business, can you help??
A: Hi Pushpinder
Can I ask what the question is?
If it is outside my scope, I will point you in the correct direction.
Q: What's the maximum variable interest rate that I should be paying on my home loan? Not fussy about the lender - I just want to know the range of rates that are considered acceptable if I refinance.
A: Hi Justin
That is a very interesting question. May I ask if there is purpose you are hoping to achieve by refinancing your current loan other than the obvious search for a lower rate?
The reason I ask is that the rate offered will depend on a few things such as who you are, what you want to do and how much you want to borrow.
Looking forward to your response and to continuing this conversation!
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