Over the past year there have been some dramatic changes to lending policies and products. It is quite difficult and confusing for most consumers to keep up to date with everything that has been going on let alone know which product and lender is best for them. What Has Changed? Loan to value ratio (LVR): An LVR is the ratio of the loan amount to the property value. Basically you are limited to how much the lenders or banks will finance depending on the value of the property.
Anybody who has decided to get finance knows how complicated the task is – with dozens of different lenders and hundreds of loan products, it really can be difficult to find a loan that suits your situation. It’s part of the reason why around 40% of mortgages are applied for through a finance broker. Other reasons include: Greater Choice & Convenience. Finance brokers typically have affiliations with many lenders – therefore they can offer a greater range of products than a single bank.
Products, policies and rates are constantly changing. We need to keep up to date with our home loan and make sure it is still suitable. I am sure your circumstances have changed in the past year and I know for a fact that loans have. Lets take another look at the basics of home loan borrowing. What do Mortgage Repayments cover? Normally you would look at having Principal and Interest repayments on your home loan. In effect this means that you are reducing the principal (balance) every time you make a payment.
Have you ever wondered why we need to appoint a Settlement Agent? Or what a Settlement Agent actually does? Here is an outline of the process involved once you have purchased a home. Every property transaction is different, so this is only a guide to the steps a Settlement Agent will take. Step One: When you are purchasing a property through a licensed Real Estate Agent in WA you will be required to sign an Offer and Acceptance Contract.