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Rate is paramount, but it’s not everything…
Not having the right loan with the features that are important or necessary to you may soon become apparent at a time when you wish to be flexible.

We will structure your lending to reflect your goals but also take into consideration a little more. Our aim is to help you understand how to  make your loan work for you.

We will then help you complete the paperwork, professionally package it with your supporting documentation and submit it to our panel of lenders.

Variable

A standard variable loan means that when interest rates go up or down over the life of the loan your regular repayments pay off both the interest and the principal. Standard variable loans allow you to make extra repayments.  You can also choose a basic variable loan that offers a discounted interest rate but has fewer loan features, such as a redraw facility and repayment flexibility.

Fixed

The interest rate is fixed for a certain period, normally the first one to five years of the loan. This means your regular repayments stay the same regardless of changes in interest rates. At the end of the fixed period you can decide whether to fix the rate again at the applicable interest rate. You may also choose to switch to a variable loan at the end of the fixed term rate.

Interest only

You repay only the interest on the amount borrowed normally for the first one to five years of the loan. Your monthly repayments are lower as the principal is not being paid. At the end of the interest-only period, you begin to pay off both interest and principal.

Low Documentation   

These loans require less documentation or proof of income than normal, but often attract higher interest rates or require a larger deposit because of the perceived higher lender risk. Generally, you will be in a better financial position by obtaining full documentation for another type of loan.

Split rate loans

Your loan amount is split into a variable component and a fixed component. You can decide on the proportion of variable and fixed components. With a split home loan you will experience the flexibility of a variable loan, as well as the stability of a fixed rate loan.

Offset Account

Also sometimes known as an ‘offset transaction facility’, this kind of account lets you reduce the interest you need to pay on a loan, by using your savings to ‘offset’ the interest.

Redraw 

If you’re ahead on your repayments, some loans let you take money back out of your loan, to use it for something else – which can be useful in an emergency….or a new car or extension. (Of course, that adds to the amount left owing on your loan, which you will have to pay back.)

Top Up

A simple way to borrow extra money – for a holiday, a renovation, a new car or anything else you might need – by increasing what you owe on your existing home loan.

Rate Lock

When you apply for a fixed rate home loan, you will receive the fixed rate that applies at the time your loan is settled. This might be different to what the fixed rate was when you applied. To lock in the rate you had before settlement, you can purchase rate lock. At settlement you will get the better of the two rates.

Loan To Value Ratio (LVR)

This value compares the amount you have owing on your loan against the actual value of your property. For example, if your property was valued at $400,000 and your loan amount was $340,000, your LVR would be 85%.

Lenders Mortgage Insurance (LMI)

This is insurance that banks take out – at extra cost to the borrower – to protect themselves in case the borrower ends up not being able to pay what they owe. This kind of insurance is generally only needed if you’re borrowing 80% or more of the property’s value.

Interest In Advance

When interest is charged at the beginning of a period of time instead of at the end. (Only investors can do this on investment properties. It is a way of lowering their tax payments by bringing forward expenses into a tax year.)

Rentvesting

Rentvesting is when you rent somewhere to live and buy an investment somewhere else. It is certainly an attractive proposition to be able to continue your renting lifestyle whilst investing at the same time.

Our traditional views have changed on how we approach investment or purchase our first home. The sacrifices we are willing to make and prioritising our own personal needs now come into play.

With home ownership out of the reach of many on the eastern seaboard, the chance to be “in the market” can be also be achieved in other states and territories and considering property investment opportunities in more affordable suburbs and areas makes sense.

If the median prices continue to escalate as they have, the ability to “have your cake and eat it too” is there as an option.

First Home Buyers

We find as much pleasure in you securing your first home as you do.  Are your sharehouse days over?  As a solo single tired of paying off someone else’s investment?  Home affordability is getting harder but it’s not impossible. We also have partners that can be utilised as a resource in locating what you have your eyes on for your first home or investment.

Complimentary Section 32 Review

Be sure what you see is what you get.
All Boscia Financial Group clients receive a free section 32 report review conducted by a legal firm when we prepare your finance for your new residential home or investment.  

Yes that’s correct, free.. actions speak louder than words.

The Section 32 is a document provided by the seller of real estate (vendor) to an intending purchaser. Its name comes from Section 32 of the Sale of Land Act, which requires a vendor to provide certain information to a purchaser BEFORE a contract of sale is signed.

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The Home Buyers Guide is your must-have source for advice, inspiration and practical tips for the journey to purchasing a home.

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