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Q: I am keen to use the equity in my home to invest - maybe real estate. Maybe another option. Does anyone have any firm advice on the available options at the moment?
A: Hey Jimmy,
You have a few options. If you have equity in your current home, you can either cross collateralise (use your house as security) to purchase an investment property. This means you don't need to fork out any of your own cash towards the new purchase. The good thing about this is that if you have great equity, your LVR (loan to value ratio) may be under 80% which means you won't be charged LMI (lenders mortgage insurance).
In addition, you'll be rewarded a better rate by the lender with a LVR under 80%.
Alternatively, you can access your equity in cash, which you can use to out towards your purchase such as your deposit, stamp duty, government, and solicitor fees.
I live in Cronulla myself, more than happy to grab a coffee with you to discuss!
Regards,
Daniel Berti
Berti Financial
0402 503 739
www.bertifinancial.com.au
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Q: Can someone please advise the advantages doctors get with homeloan mortgages, and/or point me in the direction or a broker/financial advisor in Perth that specialises in doctor loans?
A: Hey Rhys,
Depending on your profession, you may be eligible for the Medico package. Which means you are able to borrow 89.99% without having to pay Lenders Mortgage Insurance (LMI). This package comes with an annual fee of $395.
Last week I assisted my client with purchasing a property valued at $1.6m and I saved them over $40,000 by waiving LMI.
Don't hesitate to ask if you have any questions!
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
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Q: If I am refinancing to another bank, will I need to pay stamp duty?
A: Hey Lewis,
If you're refinancing, then no, you won't be charged stamp duty again. The only time you'll be charged stamp duty is when you purchase land. However, you'll be charged a government fee (around $220) for registering the title with the new lender. Also, keep in mind that your current lender will charge you a discharge fee which ranges from $350-500.
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
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Q: How do I establish a good credit rating?
A: Hey Alistair,
People believe that getting finance on a car is the best way to build a credit rating. However, you may not need a new car or have the funds to purchase it with cash so this may not be the best option for you. Alternatively, you can apply for a low fee credit card with a $500 limit and not use it (just pay the annual fee). That will build a good credit rating. Plus, if you're not using it, you won't miss a repayment or be late, ever!
To maintain a good credit rating, don't apply for credit too many times in a short period of time and stay on top of your bills.
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
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Q: How does a guarantor home loan work? We have a 10% deposit which needs to include costs for stamp duty, expenses, etc. This is not quite enough and we are interested in the guarantor option.
A: Hey Bill,
A guarantor home loan is when an immediate family member (your parents) use their home as security. Usually guarantors secure 20% so you steer away from lenders mortgage insurance. If you wish to proceed, they will need to sign the application form with you as your guarantor. You will have two splits (two loans) one as your normal loan and another for the 20% that is secured against your parents home.
There's another option if your parents don't want to go as guarantor... If your parents currently have a loan against their home and are happy to top up their mortgage and give the funds to you as a gift, you can do this to steer away from having their home secured against yours.
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
Bill Vasiliadis
8 years ago
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Q: Do home loan lenders look more favourably at applicants with permanent roles over casual roles despite the income?
A: Hey Bill,
Lenders don't necessary look favourably towards your status. They do however, prefer you to be employed for at least 3 months and not on probation.
There are 3 main factors for a lender to assess:
1. How long you have been working for your current employer
2. How long you have been in the industry (profession/occupation)
3. What your payslips show for your year to date income.
In other words, if you have been working casual for 2 years, you won't have less of a chance or looked at unfavourably compared to someone who has worked full time for 2 years.
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
Bill Vasiliadis
8 years ago
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Q: Should I go for a fixed or variable interest rate on my homeloan?
A: Hey Pru,
It all depends on what you'd like to achieve.
Best thing to do is ask yourself if you'd like to budget and know your repayments won't change. If that's the case, then go fixed.
But if you want to make additional repayments, have a little more flexibility, have features such as an offset and redraw to access any extra repayments, then go variable.
Based on the current market right now I would recommend considering a fixed or split (half fixed, half variable) option.
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
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Q: Unsure if my husband and I should take out life insurance and what institution should I approach?
A: Hey Antonella,
As just finance brokers, legally we are can't give you personal advice, only general as we are not qualified to do so.
I have a partnership with ALI Group, I highly recommend having a chat with them to discuss the benefits and types of cover available so you have the peace of mind knowing you're well informed. One of the benefits of ALI Group is you can organise the amount of cover based on the amount you'd like to pay for your premium!
If you're happy to let me know your email, I can forward all their information to you (types of cover and etc.) for you to look into and compare!
Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au
Antonella Samperi S
8 years ago
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Q: We have recently had some bad luck and have ended up falling behind in our mortgage. I've tried talking to our bank, but they don't seem very interested in coming to the party on some type of plan. Will I be able to re finance and consolidate other debts?
A: Hey Michelle,
Contact your bank again. Always keep them updated and don't ignore the arrears departments (credit solutions) calls. You can apply for financial hardship, which means they will hold off on your repayments for an agreed amount of time or organise a payment plan. But in saying this, the reason for falling behind must be valid. For example: self employed, sole trader unable to work due to illness.
Depending on how far behind you are will determine the banks agreement/actions they will take. As I previously worked for a major bank in credit solutions I can advise you their steps of procedures.
If you don't want to stay with the bank, you can look at refinancing and consolidating your debts, which will help you get back on track.
Stay positive!
All the best.
Regards,
Daniel
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Q: Are banks still able to penalise you for paying out the loan early?
A: Hey Josh,
Only if your loan is fixed you will receive a breakage fee. The break fee is an interest adjustment (depending on how long until your fixed term ends, it can be in the thousands)
If you have a variable rate and win the lottery (fingers crossed!) you can pay it out in full with no penalty.
In saying this, there is a discharge fee which is around $300 but it's not a penalty.
Regards,
Daniel
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Q: Is there an ideal time to refinance a home loan?
A: Hey Justin,
If your loan-to-value ratio is under 80% (which I can work out for you) and you're not locked in with a fixed rate, then it's a great time to refinance. It's always good to review your loans every 2 years.
We can refinance you with a lender that will provide you a discount for the life on the loan at a lower rate that your currently on and put more money in your pocket, towards your loan or towards a holiday ;)
If you want some quotes (obligation free) don't hesitate to ask!
