You may be concerned about whether your dream of owning a home has been temporarily derailed. Perhaps you’re questioning how competitive your current interest rate is, or what steps to take towards your property investment goals.
Having a skilled professional by your side is invaluable. Mortgage brokers are equipped to guide you through your property journey, amidst the current market conditions. Here are several questions that we encourage you to ask us.
Our role extends beyond connecting you with lenders, offering insights beyond loan processing.
Your borrowing capacity is influenced by various elements including your deposit, savings history, income, expenses, equity, and credit score.
Some banks have previously revised their lending criteria to minimise high-risk lending, impacting how much you can borrow. It’s important to speak to us to get a clear picture of your borrowing capacity.
Whether you should buy now depends on your specific financial situation and goals. While some may benefit from current opportunities, others might find it better to wait. Let’s discuss what’s aligned with your current situation.
Choosing between fixed and variable rates is a personal decision, influenced by your financial goals and market outlook.
Locking in a fixed rate might seem appealing if you are wanting certainty around what your regular mortgage repayment will be. However, this decision should be made with a clear understanding of the terms, including potential limitations and fees for early exit.
If your home’s value has gone up or you’ve paid down what you owe on it, you might be able to refinance and use that equity to fund purchases such as an investment property.
Let’s say your house is worth $850,000 and you’ve got $420,000 left on the mortgage. That gives you $430,000 in equity.
You can use that equity as security to borrow for things such as a new home, renovating your home, or even a new car.
Banks typically let you borrow up to 80% of your home’s value, less the debt you’ve still got on it (this is your “useable equity”). You may be able to borrow more if you take out Lender’s Mortgage Insurnance (LMI).
Bridging finance might be a suitable option if you’re in the process of buying a new property while awaiting the sale of your existing residence. It can also provide funding to construct a new home while you reside in your current home.
This form of short-term borrowing supplements your main mortgage and is generally structured as interest-only until your property is sold and the principal can be repaid in full.
While bridging finance can provide the flexibility to purchase your next property without the need to align settlement dates precisely, it’s crucial to consider the associated costs. We can discuss whether this option is right for you, or we may suggest alternatives.
It’s normal to have questions when making these sorts of decisions. We’re here to support you and clear up any questions you’ve got. Reach out to Fornaro today.
