Australians Turn to Share Accommodation Amidst Rising Prices
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Australians Turn to Share Accommodation Amidst Rising Prices

It’s getting more and more expensive to live in capital cities in Australia, and many are choosing to share accommodation to cut living costs. Flatmates.com.au reports a surging demand for shared living spaces across the country – the domain’s data for October 2023 shows an alarmingly low vacancy rate of about 0.8% nationwide when the balanced market is at 2-3%. Let’s look at how share accommodation is impacting the living conditions in cities, and what to expect in the coming years. More Aussies Considering Share Accommodation Rental prices hitting historic highs has led many renters to seek larger accommodations, aiming to distribute the rent burden among housemates. Share accommodation experienced a surge in demand compared to 2022, with a marked 15.6% increase versus the previous October. The considerable traffic encountered before the usual peak of December suggests that there’s an unexpected demand for share accommodation, defying the seasonal dip seen in winter. Claudia Conley, Flatmates.com.au’s community manager states, “It’s evident that more Australians are turning to shared living spaces due to persistent rental market pressures and an ongoing cost-of-living crisis.” Who are choosing shared accommodation? Data indicates that even though about a third of the market are 25 to 35-year-old working adults, older 45 to 65-year-old members have increased by 10% over the last 12 months. In short, share accommodation works for a diverse group of people that includes international students, young professionals, parents, families, migrant workers, and even older sharers. Share Accommodation Demand Likely Long Term  Share accommodation has rebounded. Compared to pandemic levels where individuals moved back home or opted for solitary rentals, nowadays the working age groups are choosing to re-enter the shared housing market. And it’s no question that the main factors driving this surge include living costs, steep rental market conditions, and a rise in domestic and international migration heightening the demand for housing. Conley explains that financial constraints drive 80% of flatmates’ audience to choose shared accommodation. Indeed, as long as individuals grapple with inflation and rising financial issues, opting for shared accommodation in the housing market is likely to stay long-term. With the Reserve Bank of Australia (RBA) announcing a cash rate increase to 4.35% plus further hike predictions, it’s going to be a continuous financial struggle for most home buyers and renters. At this time, as much as 1.5 million mortgage holders are already in stress of repaying loans, and a further 1 million are “extremely at risk”. Top Suburbs for Flat Mates Certain suburbs are facing a predicament where a surplus of individuals is seeking share accommodation, but available homes and units are few and far between. For instance, Sydney has six of the nation’s most in-demand suburbs: Elizabeth Bay, South Coogee, Clovelly, Curl Curl, and Barangaroo. Meanwhile, Western Australia’s Perth has a surge in demand too, in suburbs like City Beach, East Perth, Mosman Park, and Highgate. Across capital cities, those who allow their properties for share accommodation are single first homeowners, young couples, and empty nesters. However, more families are also open to renting out their vacant rooms when their children move out for college. Nonetheless, the uptick in listings offered as shared accommodation is still outpaced by Aussies’s huge demand for homes and units. Want to learn more about home ownership in Australia? Let’s schedule a quick chat about your mortgage options. Call or email us today to get started.

Can Co-Living Solve Housing Financial Stress?
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Can Co-Living Solve Housing Financial Stress?

Homeowners and home seekers alike are experiencing a housing crisis, as major cities in Australia have pushed rent and property prices. Inflation and property shortage have made it difficult for low and middle-income earners to find a suitable dwelling. Hence, people are continuing to pursue alternative housing options to grapple with rising costs. One such answer is co-living or shared living, which opens up parts of the home to additional residents to make a common and social living space. In a recent study, it was found that 40% of Australians consider shared living due to financial struggles. Co-living is challenging the traditional notion of housing. But is it the better choice for students and young professionals? Let’s explore the potential of shared living and how it plays a role in resolving the housing crisis. Co-living Australia What is co-living? It is a housing model that involves sharing living spaces with other residents apart from the owner-occupiers. The home is designed to facilitate communal building and social interaction. In a co-living setup, residents maintain the privacy of their bedrooms while partaking in communal areas like kitchens, living rooms, and co-working spaces. Some examples of shared living include shared homes, buildings, and purpose-built communities. Co-living is marketed to young professionals, students, and any single individual seeking a modern home setup that allows for more networking, and social engagement. But perhaps the most welcome aspect of shared living is the lower costs. Because there are several shared spaces, co-living is more budget-friendly compared to renting an apartment on your own or maintaining a single detached home. Critics of such a setup note that co-living could sacrifice privacy. Sharing living spaces can cause disagreements among tenants over things like noise levels, time using shared spaces, etc. Another challenge is stability. Many co-living properties only offer short-term leases. This will not suit home seekers who are after a more stable living situation. Builders and investors can also experience regulatory and legal issues, as co-living may have a tenancy and building code laws that differ from single-detached home development. Co-living as Investment Property  Investors these days are eyeing co-living properties for a smart financial move. Why? Because they promise better returns, especially in terms of rental income. This boost in rental income primarily comes from an innovative approach: housing multiple tenants within one property. Unlike typical residential properties where one tenant occupies the whole space, co-living properties divide their units into multiple bedrooms or mini apartments. These individual spaces give tenants privacy, while they share common areas like kitchens, living rooms, and co-working spaces. This shared living model may provide a solution for both home seekers and investors alike. Investors can pull in multiple rental incomes from one property, which significantly boosts their overall rental yield. This efficient use of space turns into a smart investment, outperforming traditional housing setups. Co-living properties can also potentially cut down the risk of vacancies; if one tenant moves out, others keep paying their rent share and provide a steady cash flow for property owners. Rental seekers could then have no trouble finding housing even in the supply shortage being felt today. Another financial perk for investors and renters: utility costs are shared. No one bears the full burden of these costs, and it will keep the income flow going while reducing risks. Explore Co-Living Investment Given that things are still highly favorable for landlords in the housing climate, many investors are in a strong position to explore options like co-living. It can make for a more diversified portfolio if your financial circumstances allow. Have any questions? Talk to us about capitalizing demand on shared living or co-living spaces and how to approach such a property.

What are the Requisites for a Real Estate Commercial Loan?

What are the Requisites for a Real Estate Commercial Loan?

Real Estate Commercial Loan are types of mortgage that are granted over the purchase of commercial property. This is different from a home loan as it does not require an LMI for low-deposit loans and have shorter loan repayment terms. Properties purchased for business use are considered commercial loans. A perfect example would be office blocs, hotels, shopping areas, and warehouses. To be able to finance such purchase, your business may require a commercial real estate loan. This is also the case if you want to purchase an existing business. There are many options available out there and the process can be complicated and daunting. You might want to seek help from a mortgage broker to make the process easier. Real estate commercial loan also comes in fixed, variable and combined interest rates, just like home loan packages. It also offers interest-only repayments for a certain period of the loan repayment term. Common Types of Real Estate Loans How to Qualify for a Real Estate Commercial Loan Commercial real estate finance is less stringent compared to residential mortgages. Banks are not constricted with lending policies. Banks do not have legal obligations to provide proofs that the applicant is indeed capable of repaying the mortgage. However, there are still a set of documents required when applying for a real estate loan. Applying for a Real Estate Commercial Loan Provide the necessary information and documentation your lender requires for the application. The type of property and amount you will borrow also affects the requirements needed to process your loan. Provide the following on your application. Ideally help from a mortgage broker is advised for a better experience and more efficient process. Personal Information and Work Details. Similar to home loans, you will need to provide personal information, proof of identity and proof of source of incomes when applying for a commercial loan. You may need to provide your ABN and full contact information as part of your loan application. Financial Information.  Details about your assets and liabilities are required in your application. Cash flow projections and the amount of your saved deposit is also required by some lenders to be able to determine your ability to keep up with repayment. Commercial Property Details. The lender also requires the details of the property that you want to purchase. This includes the location, features as well as a professional valuation to be able to determine its worth. Current lease agreement and existing tenants are also required for purchasing investment properties or an existing business. Other Relevant Information. Your lender may request several other details concerning your loan application. Additional requirements are needed, depending on how huge your loan will be. A mortgage broker can help you prepare the application and help you address all the necessary criteria to give you the best possible chances of getting your real estate commercial loan approved. In the event of a refused or delayed approval, a mortgage broker can also help you adjust your application and increase your chances of getting the finance that you need.

Why You Need to Keep Up With Home Loan Repayments
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Why You Need to Keep Up With Home Loan Repayments

What happens when you miss a home loan repayment? Before you are faced with this situation, you should act fast even before or after missing a home loan repayment. If you feel like you won’t be able to fund your check or if you are honestly going to be late for loan repayment, fix the situation ahead and increase your options on how to resolve this issue by talking to your lender in advance. Missing a mortgage repayment is not the worst situation you can get into when taking out a home loan. Your lenders are more than happy to help. Here are the basic things you need to know when you are about to skip or fail to repay your home loan. 1. Arrears management fees may be applied due to late payments. Late payments or non-payments are clauses included in your mortgage agreement or contract. Revisit your home loan documents to get a more accurate idea on how much additional rates or fees will cause you if you continue skipping on your mortgage repayment. 2. Dishonor fees charged and applied to direct debits, periodic payments and cheque payments from your account that were rejected due to insufficient funds. There are also fees included in bounced checks, failed direct debits or scheduled payments and the like. Be aware of these amounts that you need to worry about. 3. Default interest rates are usually charged on overdue payments These percentage or amount is also included in the mortgage contract that you signed during your home loan release. 4. Home loans may be withdrawn and force you to settle the full amount of you mortgage in cash. This is one of the biggest fears most homeowners worry about when they fail to pay their mortgage on time or if they continuously default. However, talking with your lender gives you options on how to resolve this. 5. Enforcement costs such as legal fees and court documents will be passed onto you In the event that you fail to coordinate with your bank and continued missing payments on your mortgage, your lender may resort to legal actions. You will be the one responsible fo the fees and other expenses this legal action may incur. Missed a Payment? Here’s what you should do. Contact your lender Your lender can never access and help you with your current situation unless you inform them about your current dilemma. You will need to provide the following information to your lender. Talking to your lender about your financial issues may be stressful and can sometimes be stressful, but this can happen to anyone.  Taking action simple means that you are willing to fix the problem as soon as possible and is a good sign for most lenders. Usually, lenders will only take notice after two missed payments, but are still dependent on your loan-to-value ratio. It is really ideal to talk and coordinate with your lender instead of finding an quick escape route. Borrowing money to repay your debt will just make it even harder for you to repay your loan. Interest rates will accumulate and you may end up cash-trapped in debt.

Home Renovation: Why Aussies are Renovating Not Selling
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Home Renovation: Why Aussies are Renovating Not Selling

Spring is typically all about selling homes, but the coming season is instead busy with home renovations. It seems that property owners are opting to renovate rather than sell, according to a new study. Aussie Home Loans surveyed 1,000 Australian homeowners and found that about 54% of homeowners are choosing to renovate instead of selling because of steep costs. We dive deep into the study findings and determine why more homeowners plan to renovate, what this means for home loans, and what are the best practices when renovating or selling your property this spring. Study: Aussies are Renovating Homes More Than Selling  In this latest study assessing homeowner decisions, it was found that rising interest rates are the main reason for the renovation trend. In fact, a whopping 73% of respondents decided to stay and invest in their current home instead of relocating because of the ongoing interest rate hikes. And even though close to a third of those surveyed feel that they need a larger and more modern home, they felt that they could not afford to buy such a property in today’s climate. The majority of those who decided to renovate plan to reside in the home (64%), with only 28% opting to sell the refurbished property. Only 9% of renovators are considering renting out their property. Home ownership is as expensive as ever, which means more families are remaining in their existing properties for longer even though they’re no longer satisfied with their dwellings. Homeowners remain even if the home may be too small, or it may not have updated furnishings and interiors. Selling is less of an option these days because clients prefer to build on their existing equity rather than facilitate selling and buying again in the same market. For many, it is not worth the stamp duty costs and agent fees involved in the process. Real estate experts note that spring will look different than previous years because there will be less homes put up for sale. Changing economic circumstances, rising rates, and tightening household budgets impact the spring selling season. How Are These Renovations Financed?  As regards funding, there are two main sources of renovation money that homeowners plan to access: one is to refinance the current home loan, and the other is to dip into savings in the home loan offset account. Homeowners who plan to refinance plan to push the Loan to Value Ratio (LVR) to either 80-85% to 90%. They will be using existing equity that they’ve already built from years of paying off the mortgage. Meanwhile, those who plan to use savings understand that doing so will impact the repayments more – as the money sitting in the offset account will be decreased. Are these moves worth the cost? The research shows that property owners are willing to push higher on the LVR bracket, use their savings from the offset, or even pay LMI to be able to renovate their current homes. It shows that Australians are willing to incur risk to improve their current dwelling and have a home where they can remain longer. Talk to a Mortgage Broker About Home Renovation Financing  Home renovations may also need the expertise of mortgage brokers. They are the go-to professionals to source the appropriate financing for property owners.   There are different scenarios when renovating, and a broker can help navigate things. For example, a smaller renovation (e.g., kitchen) may require loan restructuring that lets you stay with the current lender but free up a few thousand dollars cash. A larger scale renovation, meanwhile, may require a construction loan to be pulled off. Homeowners who want flexible access to funds can consider an offset or redraw, and those who plan to refinance can find the support and knowledge of multiple lenders offers. Brokers could support renovators by estimating costs of construction and valuation of the home, presenting renovation vs. relocation options, and streamlining refinancing or current home loan restructuring, whichever the client needs. If you’re thinking about renovating your home, feel free to consult with Intellichoice loan professionals. We’ll help navigate loan refinance terms and lay out options on how you can spend in the most efficient way even amidst rising costs. Let’s talk today!

Build-to-Rent Housing in Australia
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Build-to-Rent Housing in Australia

Is build-to-rent (BTR) the answer for making up the housing shortage in Australia? A report commissioned by the Property Council of Australia has shed light on how a balanced investment approach to BTR housing could be instrumental in pushing towards the ambitious goal of providing 1 million homes by 2029. Let’s discuss how build-to-rent homes figure in today’s real estate climate, and how it will move forward. Build-to-Rent Housing in Australia The concept is straightforward – BTR dwellings are constructed exclusively for renting purposes. In this model, a developer or institutional investor assumes ownership of the entire residential complex and offers the apartments for rent rather than selling to owner-occupiers. Build-to-rent is now holding the promise in a nationwide housing crisis. In high-density areas, housing is placing more and more financial pressure on home buyers as well as property investors. BTR can potentially mitigate the lack of housing supply as they could build more homes in cities that have increasing demand. Several changes have made rental much more in demand. For one, the number of people per household has dropped from 2.6 to 2.5. This may not sound much, but the RBA estimates that this increases housing demand by at least 120,000 homes. Indeed, tenants have chosen to have more space since the lockdown experience the previous years. Important Legislation for Build-to-Rent Homes Accommodating rising demand means the government should step up in regard to housing supply incentives. And this is already happening at the federal level. For instance, rental allowance for investment in BTR has gone up from 2.5% to 4%. Recent data indicates that international investors are pivotal in contributing 85% of Australia’s build-to-rent market. Retail properties in the country enjoy high rental yields, which makes them appealing to foreign investors. In fact, commercial properties get an average of 9% return. The more deductions and tax incentives investors have, the more there will be long-term uptake of BTR investment. Collaborating with local developers, investors are engaged in constructing purpose-built, high-quality rental properties in prime locations across the nation. Experts observed that the growing demand for affordable housing, along with Aussies preferring urbanised areas have rendered build-to-rent developments attractive. These initiatives are not only providing much-needed housing for a burgeoning population but are also drawing significant foreign investment. It is, therefore, critical that investments in BTR developments need to be eligible for better rates. For instance, instead of foreign players being limited through a managed investment trust that is taxed at 30%, an alternative may be to change policies and place 15% withholding tax rate, at an incentivised tax rate of 10% for investors that will inject affordable housing elements in their BTR housing projects. Investment in build-to-rent housing emerges as a vital component in Australia’s journey towards meeting its housing targets while also addressing the escalating challenges of the rental market. Investors are keen to see more BTR builds not only to major cities but also to outer city limits dues to better property prices. It will take a comparative analysis as to the pros and cons of each option-ownership vs build to rent before making a definitive decision for Australians

Moving House Checklist After a Successful Home Loan
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Moving House Checklist After a Successful Home Loan

Moving to your new home is exciting. Finally having a place you can call home is personally satisfying, it is an achievement. However, moving to a new home is not always easy. Depending on the things you own, and the furnishings you would want to include in your new home, you may have to pack a lot of stuff and move it from your current location to your new home. To make your move a less stressful and inconvenient one, here is a checklist of things you can follow for an easy and successful moving house. Things To Do 1 Month before Moving House After your home loan is approved, you have a month or so to prepare to move from your apartment or house to your new home. You may need to rent a truck or a moving company to help you with moving. Here are some considerations to look into. Delays in the settlement can be quite common. If you are to book removalists, a book for around a week after your settlement. If you are renting a truck, it would be advisable to give your managing agent an advance notice. Renting a trolley would also be advisable if you are moving large pieces of furniture. Blankets, plastic and bubble wrap can also be necessary to protect your furniture during the move. You might want to consider these activities prior to moving out of your old home. Preparing Your New Home for Your Arrival Preparing your personal belongings is not the only things to consider before moving homes. You need to prepare your new home as well. Here are some areas you can look into to prepare your new home for your move. Cleaning your new home In most states, the vendor is NOT obligated to clean the home before you move in. You might want to do it yourself after the purchase settlement or you can book a cleaner to do the work for you. Same is true with your old home. You should leave it clean when you move out. You might want to buy supplies of cleaning materials that can be used during your move. You may need to do a few touches even after the cleaners are already through cleaning your homes. Utilities and Services Cancel all services and utilities in your old home and if possible, transfer it and have it installed in your new home. You’ll find it comfortable to have your utilities and services already available in your new home when your home. Children and Pets You might want to ask a family member or a friend to be in charge of the kids, or your pet on the actual moving day. You do not want them to be among the possible chaos you’ll experience during the move. Redirecting Mail Advise the Australian Post that you are moving into a new address so all your letters and correspondence will be delivered to the new address. The Home Layout Prior to the move, you should provide a layout of each room in the new home so your movers would be able to place the furniture, especially the big and heavy ones in their respective places. A furniture placement layout would be so useful. Basic Necessities Set aside towels, bed lines, pillows, pieces of clothing and other items that you may need during the first night in your new home. Medications, toiletries and first-aid kits should be ready as well when you move into your new home. Things to Do a Day Before the Move You are a few hours away from leaving your old home and settling into the new one. Defrosting and emptying your refrigerator should be done a day before your move. Valuable items like jewelries and paintings should be kept with you and not in the moving truck. You might also need to recheck every detail about your move to ensure a smooth flow during the actual day of the move. Moving Day! It is exciting to finally move to your new home. It would be ideal to avoid visitors or keep them to a minimum to keep things in order. Here are also some points to remember. In Your Old Home At Your New House To make your moving house a memorable experience, rather than a stressful one, create a checklist and keep in mind important details you need in moving to a new home. This tips from Intellichoice can help you a lot in your venture and new chapter in life, now in your new home.

How to Reduce Home Loan Rates?
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How to Reduce Home Loan Rates?

Getting a home loan approved and repaying for one is a tough feat, even to those with good credit standing. Easier repayment scheme begins with getting a low mortgage rate approved on your application. Here are some tips you can follow to reduce your home loan rates and get the best deals possible for your mortgage. Keep Your Credit Scores High One of the perks of having a good credit standing is you get better deals in terms of loan interest rates. Most lenders will see your credit history as a roadmap of how are you in terms of your finances. Your credit history also reflect your creditworthiness as a person. Approving and releasing a loan is a risk for most banks and financial institutions. Having a good credit score to attach together with your home loan application makes you less of a risk. To learn more about your credit scores and how it affects your home loan application, you can check out this article  What Does My Credit Score Say About My Finances. Consistent Work History To repay a loan, you need to have a constant source of income. Thus, a long and consistent work history is a good sign for banks and non-conforming lenders to consider granting a home loan for you. The longer and the more steady your source of income is, the more likely you’ll have a better interest rate attached on your home loan repayment. If you have multiple jobs in a short period of time, lenders might see you as someone unreliable in terms of repaying a loan. You might still get a loan, but the interest rates would not be that favorable and the loan amount you might get approved are lower, compared to an individual with a more consistent work history. Know your Options With a good credit score and a good work history on your belt, you have plenty of home loan options available out there. Get a home loan specialist to help you compare which bank or lender can offer you the cheapest possible mortgage available out there. It is very easy to compare interest nowadays, thanks to the help of the internet and loan specialists. Ask Your Bank or Lender for a Better Rate Loyal bank clients tends to get deals and better rates for loans from their bank – if they have the courage to ask. You might get a NO for an answer, but imagine getting a YES minus the expectations. There is nothing wrong with asking and hoping to get a better interest rate from your bank or lender. Save for a Bigger Deposit A bigger deposit will require you less money to borrow. A smaller loan amount is also equivalent to a lower interest rate and a shorter period of time to repay the loan. In Australia, paying for a downpayment lower than 20% of the total value of your property will require you to pay for Lenders Mortgage Insurance. LMI is an additional amount you’ll have to shoulder in this scenario. Thus, paying for a 20% or more than 20% deposit will give you bigger savings in repaying for your home loan. You may not appreciate the amount of savings you’ll get at present, but in the long run, you’ll see thousands of savings in your loan interest if you apply this principle. To compute how much your LMI will be, you can head to this post How to Use an LMI Calculator. Get a Shorter Loan Term The most common loan term for homes purchased in Australia is 30 years. However, banks and financial institutions provides incentives to applicants who commits to pay their mortgage in a shorter period. Taking out 10-year, 15-year or a shorter loan term reduces interest rates, thus reducing the total interest you’ll be required to pay on top of your actual home loan value. Set Up Automatic Mortgage Payments Some banks offers an interest rate discount if you set up your mortgage payments automatically from your bank account. Setting up automatic payments gives your bank or lender the assurance that you will never be late in paying for your mortgage. If you plan to close your account or change banks, be sure to update this with your mortgage lender to be able to set up a new automatic mortgage payment. Refinance Your Mortgage Refinancing an existing mortgage can help your reduce the current interest rate that you are paying for in your current loan. You can ask your mortgage specialist if the current interest rate prevailing in the market is lower than your current interest rate. To know more about refinancing a home loan, you can read this post How to Apply for a Refinance Home Loan for more details.

Top Reasons Why You Need to Get a General Insurance

Top Reasons Why You Need to Get a General Insurance

In Australia, there are many types of insurance offered in the market. General insurance covers almost everything that does not involve life. General Insurance covers non-life insurance policies. This may include: Although these types of general insurance may vary, depending on the financial institution or the financial company, but are generally within the following categories. To categorize the following types of non-life insurance into a smaller segment, you can use these categories to segregate one from the other. Life has risks, but you can opt to protect what you consider as valuable in your life through an insurance. Loss or any kids of event that affects your non-life properties are protected  if you have the proper insurance for it. Without it, any damage to these properties will leave you with nothing. General insurance includes protection from theft, burglar and unexpected incidences. You do not have to constantly worry. Below are more specific reasons on why you should get a general insurance. Insurance Gives You Peace of Mind Now knowing what the future has in store for you, or in this case, the properties that you have invested your money into can be stressful. Getting an insurance gives you peace of mind. What if your home catches fire and turns everything into ash? Will it leave you with nothing? Getting an insurance helps you avoid that. It is your weapon against uncertainty and other risks or misfortunes. Loss of Property Will Not Be a Complete Liability Calamities, whether man-made or by nature are threats to your acquired assets. If you have a general insurance that covers for this unexpected instances, you do not have to worry about this. In the event of damage or total loss of property, you insurance covers the value of your property or a portion of it, depending on the clause included in your insurance policies. Profitable for Businessmen Insurance almost covers everything, depending on the policy that you will get. But, it is guaranteed that the insurer will handle any future risk. In a business, investing in insurance for your office building, your vehicle fleet, goods as well as other aspects that affects your business will protect you from any loss or misfortune that may arise in your workplace. Emergencies are Manageable The future can be unpredictable. Getting yourself or your properties insured gives you a practical alternative. If you loss a vehicle due to an accident or theft, your can insurance will replace your vehicle with a unit or value. Insurance for vehicles may also cover hospital bills for persons involved in the car accident. Repairs Can Be Covered Too Some car insurances covers car repairs and other minor, some major repairs involved in using your vehicle. Depending on the insurance policy you cover, you might add a small participation fee when repairing issues in your vehicles. However, parts and consumables are rarely included in insurance covers. General insurance is one of the best options you can take to enjoy a risk-free and worryless life. The premium you will pay will secure your property and assets from any mishap or unfortunate event you may face in the future. Being secured gives you more enjoyment over life and the material things that you have procured.

Sydney Home Prices Spurring Relocation
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Sydney Home Prices Spurring Relocation

Sydney is getting too expensive to reside in, and many are choosing to leave the capital in favor of better home and unit prices. According to the Regional Movers Index, a whopping 80% of Australians who moved from a capital city in the past year are Sydneysiders. There will always be active internal migration happening all over the country, but Sydney has the biggest chunk of clients leaving due to steep home costs. Sydney Homes Getting Too Pricey Capital city properties have appreciated faster than regional areas, and experts note that prices have been rising despite higher mortgage rates simply because there is more demand than supply. While the exorbitant home prices already drive many Aussies away, there is always a robust market in this capital city.  Over the last three months leading to October 2023, Sydney has witnessed a surge in home values, observed in 91.4% of house markets and 87.4% of units. The capital city’s median price for houses is $1,121,196 while units now are at $832,222, quite out of reach for many professionals and families. Notably, the significant rise in value was registered in these suburbs: Five Dock, Oyster Bay, Penshurst, Concord West, and Concord. Meanwhile, the fastest rate of price growth was recorded in areas like Ormond, Hampton East, Kingsbury, Northcote, and Thornbury, showing increases ranging from 4.4% to 6.7%. Eliza Owen, CoreLogic’s Head of Research, attributed Sydney’s rising home prices to increased demand and the supply being unable to keep up. The demand surge has been due to household sizes shrinking since the pandemic and the resurgence of student migrants from overseas. Renters aren’t faring great, either. Many tenants are forced to move out of Sydney homes as current rates add as much as $700 per week on single detached dwellings. Data on rental rates show that the more cost-effective locations tend to be 20km away from the CBD. Migration Away from Sydney Towards Regional Areas Despite the recent trend of property prices staying robust in capital cities compared to regional areas, there has been a noticeable movement of Australians leaving cities for regional locations. The number one reason? Affordability. It is a significant driver in migration and compels homebuyers to explore alternative regions. The Regional Australia Institute (RAI) notes there has been a slight increase in capital-to-regional migration levels compared to pre-COVID-19 averages. Constant rate increases plus a surge in job advertisements – 91,400 jobs advertised in regional Australia – meant that individuals could make the practical jump to relocating outside capital cities. The Snowy Valleys Local Government Area (LGA) in southern NSW enjoyed a 200% net migration boost. But the most favoured destination for internal migration remains Queensland’s Gold Coast, which attracted 16.7% of total migration from 2022-2023. Economists note that Sydney will cater to a group of home buyers who are less interest-rate sensitive, clients who can access the bank of mum and dad, and those who have built up considerable savings and don’t want to miss out on a property.   Otherwise, the price cap for buyers who are basing home prices on national median averages would still be priced out of the most coveted Sydney suburbs. Need help securing a home loan? Talk to our experienced mortgage brokers. We’re always available for a quick chat to discuss your options.

Gold Coast Property Market Remains Strong
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Gold Coast Property Market Remains Strong

The Gold Coast property market is defying a slowdown in population growth and continuing to be a ray of sunshine in real estate trends. The Gold Coast appears to have a downward trend in population compared to previous estimations. But the housing sector appears to remain robust. The Gold Coast Shines Colliers published a Gold Coast Market Overview, and data indicates a projected population figure of 915,611 by 2041, lower than the anticipated target of over one million. Even so, this shift in projections hasn’t significantly impacted the property market. Why is Gold Coast property going strong despite a dip in population? Experts like Steven King of Colliers suggest that the scale of future population projections is key. Because the Gold Coast is a maturing city, with high numbers of migration and new investment property projects down the pipeline, it’s in a very good position to continue enjoying high demand and unlikely to fall off a cliff in the medium to longer term. Among the anticipated events is the city’s hosting of the 2032 Olympics, which means there will be transport and road expansion, and the development of a light rail system that will connect northern suburbs to the south and vice versa. Another concrete reason why the Gold Coast is robust is the region remains an appealing destination for both domestic and international migrants, especially migrants from Sydney and Melbourne. In fact, the influx from these capital cities drives as much as 77% of the Gold Coast’s population increase. Gold Coast Suburbs Expected to Grow  As outlined in the Colliers Market Overview, the Ormeau-Oxenford precinct within the city is projected to witness the lion’s share of forthcoming population expansion, accommodating an estimated 103,000 additional residents from 2021 to 2041. “The anticipated growth will predominantly occur in areas like Coomera, Helensvale, and Hope Island, poised to experience the most substantial population surge,” the report highlighted. At the same time, Gold Coast North is expected to welcome around 35,000 more Australians during the same period. Labrador and Biggera Waters are forecasted to bring the most growth. King emphasized that the Gold Coast remains an important destination for home buyers and investors, citing limited property supply, robust tenant demand, and healthy rental rates as key factors for its appeal. Residential Growth Seen More in Units  Internal migration means there’s a big demand for residential development on the Gold Coast. But the supply has to keep up with this surge of homebuyers and renters. Queensland, for instance, is already grappling with a huge backlog of residential projects, as issues of construction costs, higher interest rates for project plans. The impact of construction lags is particularly felt in large-scale projects – unit and townhouse approvals already outweigh house construction approvals. Data also showed that home seekers prefer newly introduced developments that provide better residential amenities over older generation buildings. Recently launched apartments in premium locations are popular with investors. However, potential buyers are also cautious with new residential projects, ensuring that the developer has an established track record. Projects that are already making headway in construction look much more appealing than approved plans that haven’t commenced. Interestingly, three major projects started as build-to-rent have switched to build-to-sell. This points to internal migrants, mostly Sydneysiders, homing in on the city’s natural landscapes and idyllic lifestyle. Gold Coast maintains its glimmer when it comes to property. It’s the top pick for retirees and migrants from other capital cities like Sydney and Melbourne. Even with interest rate hikes, Gold Coast’s housing market has withstood without much downsizing and is predicted to be resilient in the coming years.

All About Prefab Homes Australia

All About Prefab Homes Australia

In the world of construction, there’s a term that’s been gaining momentum in Australia in recent years: prefab. Prefab is short for prefabrication and is an innovative but old-school construction method that has become as relevant now as ever. Prefab is being touted as one of the best solutions in the ever-growing housing concern across the country. Prefab currently holds just 5% of the $150 billion construction industry but is forecasted to gain 30% by 2033. In this article, we look at what prefab is, what are the reasons to consider building a prefab house, and all the essentials you need to know as a potential homeowner or owner-builder. What is Prefab? Prefab, short for prefabrication, is a type of construction that involves the manufacture of building components or entire structures in a factory setting before they are transported to the construction site for assembly. Think of it as constructing using pre-molded building blocks. These components can include wall panels, roof trusses, modules, or even entire rooms with fixtures already in place. Prefab allows construction to happen in a factory – any part of a building can be fabricated at a place other than the build site. Hence, it can also be termed as an off-site construction, off-site fabrication, or off-site manufacture. Prefab is akin to putting together a giant puzzle, with the ultra-precision of factory standards. How has prefab worked in Australia? First item-when was the first prefab house used in Australia? Answer …some were shipped here on the first fleet-I know as I have walked through the remaining ones that were restored in Victoria.  The method first gained popularity in the post-war period, when there was a need to address the growing issues in housing supply, population growth, and labour shortage after the war. Prefab became the efficient and affordable answer to building homes. The common materials back then used concrete, steel, aluminum, and unfortunately, asbestos cladding. The brevity in design and conscious choice of affordable materials formed consumers’ notion that prefab meant utilitarian, cold, and hard. But nowadays, prefab has come a long way, far from mass-produced boxes. Customisable, better quality, and sustainable homes are what prefab dwellings provide – long gone are the utilitarian and plain structures decades ago. It only takes days (approximately 10-12 days) to build a typical prefab modular home. They are built indoors, which means it’s unaffected by poor weather conditions and can be completed much faster than a traditional build. In terms of having them fixed to site and services connect-well that depends on manufacturing style-if it was Volumetric (came on the back of a truck) or as a Kit of parts-or as a tilt up, or somewhere in between.  Types of Prefab Homes Australia Here are two main types of prefab builds: Modular Homes This type of prefab is manufactured and constructed off-site to be assembled on the property. The components are modular, sectional, or volumetric three-dimensional units, meant to be portable and relocate even after construction. The beauty in modular homes is that individual modules can be joined to create larger spaces, and the entire structure can be customised to be a multi-level build should the design need it. These homes also come with electric fittings and water connections and are actually move-in ready once they are assembled on-site. Up front, modular homes are the most expensive type of prefab homes because they have the materials and structural units that resemble traditional home builds – of course with the advantage of being assembled faster in a factory setting. Kit Homes Kit homes also comprise of prefab components that are pre-cut, pre-sized, and pre-shaped, but the difference from modular homes is that a kit home arrives disassembled and would need to be put together by the owner or owens builder. These structures comprise of different ‘panels’ that form the building envelope, stair cores, load-bearing walls, and lighter partitions. Because the components and panels are in parts, kit homes are greatly customisable, with configuration options limited only by the homeowner’s imagination. Kit homes arrive much faster than modular homes, sometimes as little as a few weeks, but the caveat is that the owner will be in-charge of the installation on site. So, in some cases, even if you have the components ready, assembling them together might take longer. You’d want to hire a professional contractor who is well-versed in prefab installation. It is also important to consider that while kit homes are cheaper than modular builds, they do not always include electricity and water fittings. Adding these features will add costs to a kit home. Why Choose Prefab Homes? Prefab homes have several benefits that are relevant in the Australian housing sector: Speed. One of the key advantages of prefab housing is the speed of construction compared to traditional brick and mortar homes. While traditional construction can be hampered by weather delays, onsite mishaps, and tradies coordination, prefab components are manufactured in a controlled environment that eliminates the usual distruptions. Once on site, assembly may take days to weeks rather than months. Prefab expedites construction period significantly. Quality Assurance. Prefab components are manufactured to strict quality control standards. They aren’t subject to the variables that come with on-site construction. Structures are more likely to meet or exceed building codes and standards, reducing chances of rework. Factory precision also enables integration of advanced sustainable solutions before assembly. Safety. Health and safety are easier to control in a factory, where prefab elements are manufactured and sometimes assembled. Professionals can, for instance, work at waist height, and use machinery that can make tasks seamless. In contrast, traditional home construction has different variables (e.g., slippery floors, inclement weather, etc.) that could impact safety hazards. Sustainability. Australia, like much of the world, is moving towards sustainable practices. This applies to construction as well, and prefab is a great alternative that meets sustainable goals. It can potentially reduce waste, conserve energy, and optimise materials usage. As prefab is made in a controlled factory environment, there are precise measurements, fewer mistakes, and minimal excess in materials. Many prefab materials are also recyclable and are from sustainable sources. What About the Cost of Prefab Homes? While the uptake for prefab housing is still in its early stages, the manufacture and assembly are costlier than traditional build for residential homes. In fact, modular homes are about 15% to 50% pricier than traditional dwellings. Even though there are fewer labour trades involved and a more condensed construction period, there are still other expenses unique to prefab housing. For instance, the company may need to travel long distances to transport the modules or kit home to the site. This may add more fees or cause damage to the structure. Assembly may also rack up fees – builders use a crane or a helicopter in on-site work.    Conclusion There is a considerable housing demand in the country, and as cities continue to grow, the construction and housing industry faces both opportunities and challenges. Prefab is an accessible solution, having been used for the last 20 years but far from maximized. No longer the cookie-cutter, post-war cheap housing box, prefab now features advanced designs, customisable modular spaces, and environmentally efficient solutions ready for Australia’s extreme conditions. It is still a more expensive option, but with renewed interest and support from the government, it may well be the answer to ramping up sustainable housing.

Self-Employed? Here’s How to Secure a Home Loan Australia
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Self-Employed? Here’s How to Secure a Home Loan Australia

Self-employed individuals usually assume that obtaining a mortgage would be much harder than salaried workers. And while this is true in some cases, it is by no means an impossible task. It just means that due to the irregular income streams, you would have to verify income and creditworthiness more so than the standard client. Lenders are generally risk-averse; they will view a self-employed individual riskier because a business’ revenue goes through ebbs and flows. Banks might look at salaried workers in a better disposition as they have a more straightforward income stream. That said as Australian small businesses employ so many people, lenders have many tools to gain insight into credit worthiness of the self employed sector.  So how exactly should a self-employed borrower apply for a mortgage? Here are the essentials to make your application smooth and successful. Home Loans for Self-Employed It’s a common misconception that obtaining a mortgage is inherently more difficult for self-employed applicants. In reality, the basic criteria for home loans are consistent regardless of your employment nature. If you show a strong credit history, sufficient liquid assets, and a history of stable income streams, you will be able to get a home loan. What is challenging for self-employed clients is how to demonstrate their income. Tax deductions and write-offs utilised by self-employed individuals can lead to a low net income on tax returns, which can affect mortgage qualification. Showing a low net income or even a loss on tax returns means making mortgage an even tougher climb. To navigate the mortgage application process when you are self-employed, consider these important steps: Determine Self-Employment Status: You’ll typically be considered self-employed if you own a business, have a partnership, or receive income verified by 1099 forms. Self-employed applicants with a 25 percent or greater share in a business or partnership are usually classified as self-employed. Prepare a Business Explanation: While a full business plan isn’t mandatory, providing documents that showcase the health of your industry and the demand for your services can bolster your application. This might include supply reports, tax returns indicating revenue growth, and professional websites that demonstrate your industry expertise and success. Gather Necessary Documentation: Be prepared to provide additional income documents due to your non-traditional income structure. This could include business licenses, proof of business insurance, articles of incorporation or partnership agreements, and other relevant permits. Shop Multiple Lenders: Seek out loan officers experienced with self-employment mortgages, as they can advocate on your behalf. Mortgage brokers can also guide you to lenders specializing in self-employment mortgages. Consider Non-Qualified Mortgages: Non-qualified mortgages (non-QM) offer looser income verification criteria, making them suitable for self-employed individuals. These mortgages consider alternative factors, such as average bank statement balances, as indicators of creditworthiness. However, be prepared for higher interest rates and additional closing costs when opting for non-QM mortgages. What Home Loans are Available for Self-Employed Clients? While self-employed borrowers are eligible for all types of mortgage, some mortgage types may be more suitable for you than others. Here are the options: Fannie Mae and Freddie Mac Loans – These traditional conforming loans have strict approval requirements and require a 20% down payment. This type of loan may not suit most self-employed people, but if you are at least 5 years in in the same business, you may have a bigger chance. FHA Loans – FHA loans are products guaranteed by the Federal Housing Administration. Down payment is much lower at 3.5%, with the government backing the rest of the loan. VA Loans – VA loans are available to both current and former members of active-duty service. Eligible borrowers can have 100% guarantee of the loan, which means zero downpayment to secure the home.  Non-conforming Loans – Non-conforming or specialist loans are suitable for borrowers who don’t meet the criteria for traditional home loans due to credit issues, irregular income, or unique financial circumstances. While these loans can be more flexible, they often come with higher interest rates and less favourable terms than a conventional loan. Guarantor Loans – Self-employed borrowers who may not meet the lending criteria or have the deposit can consider a guarantor loan. This involves a family member using their respective property as security for the home loan. Considering a home loan as a self-employed individual means going through the same processes as a conventional home loan but doubling down on ensuring creditworthiness and having a good income. It’s essential to assess your financial situation, consult with mortgage brokers experienced in self-employed mortgage application, and explore tailored options from both bank and non-bank providers.

Home Loan Australia: Refinance or Renegotiate?
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Home Loan Australia: Refinance or Renegotiate?

This year has marked the end of most fixed-rate mortgages, with hundreds of thousands of home loans transitioning back to variable interest rates. Experts note that this is a peak transition period for homeowners, with more than 86,000 fixed-rate mortgages expiring every month from July to December.  To contend with rising rates, mortgage holders are asking the question: Should I refinance or renegotiate? Refinancing can be a way to reduce monthly repayments, but it’s not even an option for many who are overstretched in their home loans. For those who do have the capacity to refinance, it’s a matter of timing whether refinancing the loan will save money, or simply renegotiating will be better.  Let’s discuss how to decide between refinancing or renegotiating with your current lender based on trends and forecasts in the housing market. Refinancing Relieves You of Loyalty Tax  Mortgage experts in Australia know one thing: loyalty might mean paying more for owner-occupiers. It’s evident in the RBA data, where new mortgage borrowers get a variable rate of 4.79%, lower than existing home loans that average 5.29%. New borrowers are always given better rates than existing home loan clients. Higher rates paid by existing customers are termed as ‘loyalty tax’, and these simply offer higher rates because the lender is confident that their existing clients are satisfied with the mortgage arrangement.  The reality is banks rely on clients not being proactive or aware of the savings they could get and just continue paying the mortgage at the same rate they got at the onset.  But home loan stats suggest that as much as 0.5% of savings are available if a mortgage holder moves on to the rate that new clients get. In actual numbers, that would be an average of $110,000 in savings over a 30-year home loan. Per year that’s about $2,000 difference given the current average mortgage of $500,000. Experts advise that either refinancing or at least renegotiating your mortgage per year could deliver considerable savings in the long run. Refinancing is all the talk now, but serviceability is something that can make many borrowers miss out. In a survey of 1,000 respondents by InfoChoice, only one in five mortgage holders have successfully refinanced their home loan. So, while clients aim to refinance, only a few are eligible due to eligibility requirements.  Renegotiating is More Straightforward  Refinancing can bring huge savings, but if you prefer your current lender or are unable to refinance right now, renegotiating is another option. It’s a more direct proposition. The main benefit is a quicker and easier process than refinancing as you won’t have to go through the application process with a new lender. Clients can make the call every year or a couple of years down the road. Talk to your lender and discuss what are the competitor rates versus the current rate – let the lender know that you are well informed about the market and your lender’s website offers. It’s worth checking in with the bank as you’ll experience their best offer if you do so.  And one important tip? Let your lender know that you are working with a broker. Brokers have access to competitive rates, so you have a better negotiating stance if the lender knows you have options. Talk to a Mortgage Broker  The mortgage climate is critical this year, with the bulk of fixed-rate home loans reverting to variable rates. About 60% of monthly home repayments are expected to rise, and so clients are continuously finding avenues to manage this surge in mortgage costs. While the RBA has stabilized the cash rate, and mortgage holders are still managing to make repayments despite the fixed rates ending, the housing market is still rife with supply concerns, increasing prices, and significant mortgage costs for owner-occupiers. Don’t wait too long before considering renegotiating or refinancing, as you may struggle to get a good rate by then.  Want to be proactive? Discuss your mortgage statement, rate, and loan features with our brokers. We have decades of experience assisting clients in applying for a new loan, renegotiating, and refinancing. We’ll handle things on your behalf and work towards the best rate for your situation. 

Pepper Money Loans: What Do They Offer?
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Pepper Money Loans: What Do They Offer?

Pepper Money Loans had been known to be Australia’s leading non-bank specialist lending institution that works through several affiliated mortgage brokers. They are also a wholesale funder for several non-bank financial institutions. This non-conforming lender has been a trusted and reliable partner to Intellichoice Finance through the years. Specialist lenders were first designed to cater to people who have bad credit and to those who could not provide enough supporting documents to prove their income. But today, specialist lenders have extended their services to those who are good borrowers but are not able to receive funding from banks and LMI providers. Pepper Money Loans Offer Pepper Money offers varied home loan products, personal loans, and car loans. All loan categories are designed specifically to meet the needs of those who are not able to meet the requirements of traditional banks. Pepper Money Loan Feature Pepper Money Home Loans Pepper Money offers three primary home loan types depending on your income and your ability to pay. The Pepper Essentials. This is a key home loan for those with a good credit history. Ideal for those who can meet the requirements of the bank or just falls short of the standard lending criteria of traditional lenders. The Pepper Easy. This is a near prime loan created for those who have some negative marks on their credit record. Generally, this home loan structure are for those who falls outside the standard lending requirements of a traditional lender like banks. The Pepper Advantage. This is a specialized loan created for those with bad credit score. This type of home loan comes with a higher interest rate however it is more competitive compared to other specialist lenders in the market. For all pepper loans, there’s a Full Doc loan type if you are able to prove your income source with tax returns or payslips. And a Alt Doc if you fall under the category of self-employed. You have to provide proof of income by submitting BAS, an accountant’s letter or a bank statement. Pepper Money Personal Loans Pepper Money offers unsecured personal loans with an option of either a fixed or a variable rate and a repayment term of 1 to 7 years. You can borrow up to $50,000 max or $5,000 minimum. No upfront fees. Personal loans offered by pepper loans are ideal for those who have an immediate need for cash but do not have the assets to guarantee the loan. Variable rate Fixed rate Pepper Money Car Loans Pepper Money offers car loans from a wide range of packages. One of these packages can suit various needs. What can you expect from Pepper Money Car Loans? Competitive interest rates. Expect to receive fixed interest rates from 7.99% per annum or depending on your circumstance. Get help directly from a lending specialist like our loan brokers in Intellichoice. A lending specialist can answer all your questions quickl and can offer you the right package according to your needs. It’s safe and secure. Pepper Money had been assisting many Australians since the year 2001. They are backed and funded by several top financial institutions

Australia Property Listings and Prices Rising
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Australia Property Listings and Prices Rising

The number of new listings is finally starting to climb, as property prices are also bouncing back. March has recorded gains across national property prices according to price indexes. In a recent analysis by CoreLogic, the Home Value Index found a 0.7% rise in home prices for July. PropTrack’s Home Price Index recorded a 0.16% rise.    For homebuyers and sellers, the revitalising market will have implications. Let’s look at why the market has changed and what this means for Australians. What Drives Price and Listing Increase?  Property prices and listings move according to housing market trends, and any upward movement encourages buyers and sellers to be active in the market. Homebuyer sentiment is now improving after the pause in cash rate hikes. Indeed, after successive rate hikes, the RBA announced its rate pause in April. And this much-needed break gave way to buyer confidence and in turn, provided an uptick in the prices. Australian home prices have reversed most of the declines experienced in 2022 – which has actually sunk at the same levels during the pandemic. With home values rising for the past five months, there will likely be more players in the housing market (both sellers and buyers) that otherwise were not participating when the market was in decline last spring. What about listings? Since August, the number of new listings added to the Australian market was 3.3% above the previous five years’ average. The number of new listings has risen, but analysts note that it is not because of struggling mortgage holders who are selling their homes. A more robust listing across the country means more activity in the sector, better home valuations, and better overall selling conditions. Based on years passed, the trend is that 0.5% in new listings come from every 1% increase in home values per year. Indeed, better listings is an indicator of bigger activity in the market. So now is a good time for buyers, as better listings mean more options for homebuyers all over the country. Listings may also be improving because sellers are trying to beat the spring rush that has traditionally made competition more vigorous amongst vendors in the housing market. While mortgage holders are seeming to hold off the effects of mortgage stress, it’s likely to see the costs become more evident through the second half of the year. Borrowers may need to sell up if repayments get too overwhelming. Opportunity for Sellers and Buyers Listings increases amidst the RBA’s rate hike pause is an opportune time for sellers to put up the property for sale. Resilience is pretty evident in the middle and more affordable parts of the market, which is what first-time home buyers and investors focus on over premium housing. Potential homebuyers may have more options now, which means a broader selection of available housing especially across areas in Regional Victoria, Melbourne, and Hobart. Of course, with credit conditions remaining tight, there’s likely to be conservative growth in purchasing activity unless there are more government schemes that support homeownership. Buying a home involves checking market trends and being on top of government updates. Using a mortgage broker gives you access to these insights and more – all for better decision-making. Talk to our mortgage professionals today to make the process easier. We’re available whenever you need us!

Car Loan Refinance 2019: Loans for People with Bad Credit

Car Loan Refinance 2019: Loans for People with Bad Credit

A bad credit car loan makes it possible for you to secure your dream car. With a stable job and another source of income, you have managed to pay your car finance regularly and ahead of time, building your credit positively in the process. You have better control over your finances and even managed to eliminate debts on your credit file. Do you think you deserve more? Yes, you do – through a car loan refinance. Car loan refinance are available both for regular borrowers and people with bad credit. Through a refinance, you can get a better interest rate than the one that you had on your initial bad credit car loan. How to Qualify for a Bad Credit Car Loan Refinance Responsibly pay off your car loan monthly payments in full and on time to create a good impression on your credit historyEliminate as much debt as you can. The least debts you have, the more extra money you’ll have to save or afford a better car or any other personal need you might see fit. Create several sources of income or ask for a generous increase in your pay A steady source of income is always considered as a low-risk client for banks. The higher this steady income is, the better deals you’ll have access too. Pay your other monthly dues on time You might have been religiously paying for your car loan on time, but how about your other financial obligations? Multiple defaults can damage whatever good you have put into paying for your car loan in full and on time. Do the same with your other monthly dues such as phone lines and other utility bills. Revisit and review your credit report for possible errors and items that can be removed from your file Some of the items you can look at are the following: Advantages of a Bad Credit Car Loan Refinance If you have ticked most of the qualifications for a bad credit car loan refinance above, you can consider yourself as a borrower with a correctible credit. Here are some of the advantages you might enjoy in a car refinance. Better Interest Rates The interest rates improve as your risk as a borrower decrease. Check if a refinance could give you access to a lower interest rate making it easier and faster for you to pay for your loan. It May Help Increase Your Cash Flow If you still owe $5000 for your auto loan and get a refinance amounting $7000, you’ll be able to pay for your auto loan balance and have an extra $2000 to be spent on your other needs. Lower Monthly Payments A refinance can be applied with a longer loan term, thus easing you with a few hundred dollars monthly in payments that can be allocated elsewhere on your budget. A bad credit car loan refinancing is not essential but can be beneficial, depending on the prevailing rates in the market and your credit-worthiness as a borrower. Interested in refinancing a car loan or even a home loan? Talk to an Intellichoice loan specialist. We are ready to help.

Australia Home Prices: The Latest
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Australia Home Prices: The Latest

Thinking of entering the real estate ladder? Current home buyers are up for a challenge as Australia’s home prices have reached record levels, especially in several capital cities. The latest data is from the PropTrack Property Market Outlook August 2023 Report, which outlines residential property forecasts for the year ahead. Numbers suggest that property prices will increase by 5% by the end of 2023, with the costs to be felt more significantly in larger capital cities.  Major Cities Expected to Raise Home Prices  National home prices soared to record levels, and this has been attributed mainly to the stiff competition of homebuyers in a very limited supply. Even with higher interest rates for home loans, Aussies are keen to buy a home and have not dampened the demand (and price) for housing. Cameron Kushner, PropTrack director of economic research, notes that “We saw price increases despite rising interest rates and reduced borrowing capacities and anticipate moderate price increases to continue over the coming months.” Which cities should one expect higher prices? Data analysis indicates that all capital cities will have price growth over the remainder of the year, apart from Hobart and Darwin. Perth Highest in Price Growth  Among the major cities, Perth is projected to have the highest price growth between 4% to 7%, now at a median price of $604,000. As much as 98.1% of home and unit markets in the city rose in value in a span of three months. The city is expected to reap the biggest home value growth nationwide. This growth is followed by Sydney and Adelaide at around 3% to 6%, albeit each has vastly different median prices. Sydney homes are already at $1,070,000, and Adelaide is at $697,000. Brisbane’s forecast is slightly lower at 1% to 4% at median rates of $773,000, while Melbourne and Canberra are likely to report lower growth compared to other cities. Home prices are impacted by supply and demand. As listings have only started their uptick, homebuyers have been limited to limited stock. In fact, across capital cities, the volume of total property listings are at historical lows.   Some Cities Are Flat or Report Decline While most capitals project price growth, the housing market in Canberra, Hobart, and Darwin remained still price-wise or even experienced price declines. Canberra’s unit market is particularly down, as suburbs like O’Connor reported negative growth at 4.1%. Hobart and Darwin both saw quarterly declines based on surveys. Declines across Hobart’s property prices showed a 3.2% fall across the likes of Sandford.    The Takeaway Home prices in Australia are best described as multi-speed, with certain areas accelerating in home value while others remain flat or decline. Data forecasts note that cities like Perth, Sydney, and Adelaide will increase prices due to inventory levels being quite low and demand going strong. Experts predict that price growth in capital cities may be short-lived, especially since a revival in new listings could balance seller competition and put a brake on the pace of price increases. Need to buy a home? Chat with our home loan professionals about your options. We work with clients all over Australia, so get in touch today to get started.

Are Non-Bank Lenders “Filling the Gap” in Commercial Property?
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Are Non-Bank Lenders “Filling the Gap” in Commercial Property?

Australia has been experiencing housing supply shortages due to several factors. From rising construction costs, delayed materials supply, inflation, and continuous interest rate hikes for commercial loans, homes, and rental unit supplies have been unable to accommodate all the demand. Traditional banks have scaled back lending due to higher risks associated with commercial property loans. Hence, investors are seeking other sources of funds. One sector providing an avenue for investors? Non-bank credit lenders. These institutions are increasingly more relevant amidst the country’s housing bottlenecks, as they provide alternatives for commercial property borrowers who cannot be serviced by banks that scale back construction lending. What are Non-Bank Lenders?  Non-bank lenders do not hold authorised deposit-taking institution (ADI) licences, which means they do not offer savings accounts, term deposits, and consumer deposit products. But they are still regulated, being required to comply with Australian Securities and Investments Commission regulations, Consumer Laws, and National Consumer Credit Protection Laws, and hold an Australian Credit Licence. Even without deposit licences, private lending already has around $75 billion per year in credit housing market shares. The non-bank lending sector represents less than 5% of outstanding credit in Australia, but it is steadily grown since 2015 as per Reserve Bank of Australia (RBA) data. This growth primarily revolves around mortgage lending, with an increasing number of substantial lenders branching out into vehicle loans, self-managed super funds (SMSF), and both residential and commercial construction. What Non-Bank Lenders Offer  Investors kept a cautious outlook in 2022 with cash rate hikes and construction delays, but many are still willing to invest in real estate provided they find quality programs, even though 2022 seemed a distant time and place from where we find ourselves now.  As traditional banks have enforced more stringent commercial property lending requirements, investors are leaning toward private credit lenders. The reality is many Australian investors (individuals and SMEs alike) fit the borrower profile that private lenders can cater to. While big banks are more set in their serviceability requirements, i.e., credit score, collateral, etc., non-bank lenders tend to be more accommodating. For ThinkTank CEO, Jonathan Street, their private lending performance sound and conservative underwriting policies that support income-producing property development. He notes that non-bank lenders are often more adaptable to market demands, focusing on specific borrowers and market segments seeking alternative loan products. Not All Commercial Property Are Equal Non-banks offer a helping hand to investors who are turned down by traditional banks. But there are certain real estate assets that have better potential than others. Investors in the residential market, in particular, the build-to-rent sector, warehouse construction, and industrial property have the upper hand over office and retail spaces. Lenders prioritise the chronically undersupplied residential market as well as the resilient industrial property builders, and for good reason: investors expect returns from 9% to 11% often with a 30-40% equity buffer. So going non-bank is still going to be a tough proposition for investors who want financing for office and retail segments. Until work-from-home and online shopping growth stalls, lenders will be less keen on these brick-and-mortar properties. Want to explore borrowing from non-bank lenders? Let our loan professionals guide you. Reach out today for a free consultation.

How to Apply for a Refinance Home Loan
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How to Apply for a Refinance Home Loan

Applying for a refinance home loan is a good step to improve your finances. However, there are a few things to consider to fully maximize the advantages of a home loan refinancing. Getting a good grasp on how your home loan works make it easier for you to weigh if merging your personal loans into one amount, repaying it through a refinance and paying back that refinance is indeed a cost-saving move on your end. Do you think a refinance home loan is good for you and your finances? Be sure to do your research before you opt for this path in getting your finances in order. Here are some information and tips on how you can proceed with a home loan refinance application and if a refinance on your mortgage is indeed the right decision for you. Your 2019 Guide in Applying for a Home Refinance Understanding Your Current Home Loan In the first place, you should be aware of the in and outs of your home loan. In the event that you failed to do so, now is the time to fully understand how your current home loan works. Think about the things that you like and you do not like about your loan makes it easier for you to decide whether it is time to refinance a loan or not. If the disadvantages are more than the  advantages, it is indeed the perfect time to find something better. Take into consideration the interest rates as well as the type of interest that could be possibly applied with your mortgage refinance. It is also important to know whether consolidating your debt or getting access to your equity would make your refinance favorable for your financial situation. Know Your Options You can compare home loans online or through the advice of a mortgage broker. Working with a broker gives you access to several banks and lenders that may suit your requirements and your financial situation. Doing your research on your own limits you to sources that you know about. Most of the legwork would be via your broker, if you decide to ask help from one. A mortgage broker, like that from Intellichoice can help you secure the best deals possible for your mortgage refinance. How Much Does a Refinance Cost? There are fees involved in terminating a loan earlier than the loan term as well as in applying for a refinance. Some lenders may not require one or the other but it is beneficial to know these extra details involved in a home refinance. Working with a mortgage broker would make it easier for you to determine which is cost-efficient for your refinance application. The Actual Application Now that you have weighed your option and has finally decided on which home loan application to take. If you are getting help from a broker, you can simply submit the requirements to them and they will forward it to the lender or bank on your behalf. Whether you are refinancing with your current lender or with a new one, you should be able to determine if you can afford repaying your new loan or not. Here are the basic requirements that you will need to prepare for your refinance home loan. It will take at least a week for your application to be processed by the bank or the lender. House Valuation After your application has been pre-approved, your lender will then ask a third party to do a valuation on your property. This will determine how much your home is worth and make take a week to process. After valuation, here is where you settle exit fees if you applied a refinance from a different lender. Final Approval After being pre-approved and complying to the requirements your bank or lender requested, the formal approval of your home loan refinance comes next. The process will include the following aspects. Mortgage Contracts – similar to your first home loan, a refinance is binded by a actual contract that indicates the amount of the loan or mortgage refinance, terms of the lending as well as the repayment term, fees and other features included in your loan. Direct Debit Forms – You can nominate an account where your repayments can be automatically debited as you begin the repayment of your mortgage. Terms and Conditions – This booklet or document provides an outline of the term and conditions of your loan as set by your lender. Take time to read this because such documents are unique from one lender to another. Mortgage and Land Forms – This a form issued by the government that permits your lender to register their interest in the property or title that you own. Such documentation also confirms that the mortgage is held by them. Discharge Form – This is a document you will need to sign if you are getting a refinance from a different lender. Welcome Pack – This is not always a common feature after a loan approval, but some lenders do welcome their new clients with a Welcome Pack. This usually includes the new loan details as well as the client’s internet banking set-up. Still having a hard time deciding if a refinance is indeed the best choice for you? Talk to an Intellichoice mortgage specialist to help you decide and make your move in getting your home loan refinanced. Owner building a home from scratch? Is financing a major concern to pursue with your construction? An Owner Builder Home Loan is the answer. Learn more about this financial product and take the first step in constructing your own home.

What Does My Credit Score Say About My Finances
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What Does My Credit Score Say About My Finances

Your credit score is a reflection of your finances. Your credit report is accompanied by a credit report that includes a list of your debts or credit standings. This includes your bill payments, utilities, loans and credit cards. There report also includes your savings account, giving you a bigger picture of how your finances are. Knowing your credit score allows you to see areas where you can improve to build your credit and improve your credit score in the process. Recent studies and surveys show that most Aussies are not aware of their credit scores. There are a couple of reasons why Aussies tend to shy away from knowing their credit score and where their current personal finances stand. The fear of seeing where their finances stand is of the main reasons why Australians tend to avoid having their credit scores checked. Twenty percent are afraid that discovering a bad credit score might affect their chances of getting a rental lease. Around 19% thinks that getting their credit check might damage their credit score more. Ten percent are simply embarrassed for their partners to see what their credit score is. The truth is, it is scarier to be unaware of what your credit score is. Identifying where your credit score stands is the first step in getting your finances corrected, or improved. Your Credit Score vs Your Personal Finance A perfect credit score is somewhere at 1000 points or 1200 points in Australia, depending on the agency where you’ll get your credit report. However only 1 percent of the population has a score of such and Intellichoice has yet to encounter one. Credit scores are measured via a 5-point scale in Australia. They are classified as Excellent, Very Good, Good, Average and Below  Average. Your position helps lenders and banks determine the amount of risk you have as a borrower. For a perfect or Excellent credit score, Equifax requires 833-1200 points. The lower your credit score is, the riskier banks and lenders see you as a possible client. Excellent (833-1200) – This score is one of the least likely credit scores out there. To fall under this percentile, you need to be on top of all your liabilities for the next 12 months in Australia. Very Good (726-832) –  This score puts you at the second-highest percentile in terms of credit activity. Bad marks on your credit history are most likely at the minimum in this credit standing. Good (622-725) –  Negative marks on your credit history are less likely for the next 12 months. You are under the mid-range or the average tier of credit active users from Equifax’s data. Average (510-621) –  Such credit score pose a higher risk for banks and lenders in terms of approving you for a loan. This score places you at the least number, or the bottom population of Equifax.s active credit users. Below Average (0-509) – This is the lowest tier in terms of credit scores. Such position will unlikely give you the best rates and opportunities when applying for a loan or getting a loan approved. However, you are still qualified for less conventional loans, but with higher interest rates due to the risk that you have as a possible candidate for a loan. You can get a copy, for free of your credit score from several online providers. Equifax is just one of these. The results may differ depending on the reporting agency that you reach out to, but it will give you an almost accurate view on where you finances stands. You can get a free copy of your credit report from the following. Now that you are aware of your credit score, you can begin repairing or improving areas in your finances that will help achieve a better credit score, suited and beneficial for your aspirations of getting a mortgage or financing approved. There are many ways on how you can improve your credit score. However, it can be quite a challenge if you have several black marks on your credit history. Understanding your credit score is the first stem in getting your finances straight and building your credit.

Buying a House in 2025: What You Need to Know
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Buying a House in 2025: What You Need to Know

Beginning a new year in a new home would be a great gift for yourself and your family. However, buying a new home is not a walk in the park even if you have the resources to do so. Buying a home involves a process, and the process may take longer if you require home finance to pursue your purchase. Buying a home would be a great way to welcome and start your 2019. Australia is a land of opportunity when it comes to real estate this 2019. However, the property boom in Australia is different from the usual lavish towns and coastal areas. Here are some of the not so popular places in Australia where you can purchase a property and take advantage of the market slide in Aussie. New South Wales Areas like the Queanbeyan, Rutherford and Orange are included in the best areas where you can start buying a house in 2019. First home owners grant are available for all three even though Queanbeyan is located almost right at the ACT border. Median prices of properties in Queanbeyan are around $530,000, $400,000 in Rutherford and $395,000 in Orange. Sales of homes in Orange have increased by 7.5% over the last year, making it indeed an ideal place to start your home investment. Victoria In Victoria, you could consider investing a property on the suburbs and make the most out of the savings that you’ll get when you buy a house in this current market. Some places you can look into investing a new home this 2019 includes Golden Square, Sebastopol and Wangaratta. The median house prices in Golden Square is $325,000. Although a suburb, the are is a good location where you can easily access a finest collection of Victorian building showcased in the inland cities of Australia. It is an hour and a half away from Melbourne so you’ll still get access to the busy city, conveniently, even via public transportation. Sebastopol has house offerings of $275,000 on the average while Wangaratta properties are at $295,000. There is also a big 15-20% increase in new home purchases in Wangaratta, creating a good impression on the neighborhood area. Queensland Some of the least popular suburban areas ideal for buying a home one a budget in Queensland includes Kirwan, South Mackay and Wavell Height. Median prices of housing properties ranges from $300,000, $295,000 and $680,000. Even with floods to worry about, Queensland is still considered as one of the most prefered places to have a home. An estimated 25 billion dollars worth of property is also expected to be invested in Queensland, giving possible homeowners enormous options for their future homes. Western Australia Perth can be considered as a favorite option for home buyers and growth in housing purchases is still expected to grow in the region this 2019. However, Perth did not make it to the top 3 suburbs where you can take advantage of the decline home prices in the region. Median prices of homes in Spearwood is at $470,000, Joondalup at $510,000 and Spearwood at $800,000. South Australia Enfield, Port Augusta and Ascot Park made it to the top 3 spot of towns in South Australia where you can invest in a home this 2019 for a fraction of the cost. Enfield is a little town near the port areas where you can buy a home for $450,000 on the average. Port Augusta has a median house price of $140,000. It is a good place to start for investors over the next few years. A $5 billion worth of energy will be thrown in the area in the coming years and could see a considerable growth spurt soon. Ascot Park properties are meanwhile tagged with a median of $475,000. Looking into these less popular suburbs and towns in Australia gives you an opportunity to invest in a growing town and see a potentially large return of investment in the very near future. It is also a good place to start building a family or buying your new, or first home for 2019. Planning on taking the owner built route? You might want to check what an Owner Builder is and how it can help you pursue your dreams of building your own home.

No Credit Check Loans: Are They For Real?
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No Credit Check Loans: Are They For Real?

No credit check loans are real, but there are clauses and conditions attached to it. To be able to understand if a no credit check loan is indeed beneficial on your end, continue reading this post. There are personal loans that do not require a credit check. However, no credit check loans can be costly, requires a higher interest rate and may require additional details on your contract terms. Higher interest rates, additional fees, and other clauses may be included in your personal loan compared to a loan application that would go through the usual process of credit checking. No Credit Check Loan Available in Australia There are a few personal loans you can apply for without having to worry about a credit check in Australia. However, they may require stricter requirements and will look into your income source more, due to the lack of a credit check. Here are some of the options available for you. Payday Loans A payday loans has a maximum credit limit of $2,000 and can be paid anywhere from 3 months to a year. Establishment fees starts at 20%, monthly fees starts anywhere from 4% and your interest rate might be  twice as your loan amount. The bad thing that comes with a payday loan is that some clients end up getting another payday loan just to keep up with the payments of their current payday loan. It would really be ideal to think very seriously about trying out this loan option and the possibility of getting strapped with debt. Secured Personal Loans with No Credit Check A secured personal loan requires a collateral or insurance you can offer to your lender. If you fail to repay your loan, your collateral could be seized and will be sold by your lender to be able to secure an amount to repay your loan. Unsecured Personal Loan with No Credit Check Some lenders will approve you a personal loan without having a form of insurance or collateral you can offer to secure your loan. However, since the risk of losing money is higher for your lender, your application will undergo a strict check on whether your current income can indeed repay a loan. Higher interest rates are also applied to riskier loans such as this one. Although personal loans might be a good idea for those small emergencies or situations that may solve your immediate needs for cash, it does come with steep interest rates. No credit check loans are for real, but it has negative consequences in terms of fees and high interest you’ll have to shoulder for to be able to repay your loan. Think twice before applying for one. Avoid being cash strapped and trapped in debt.

Basic Financial Considerations For The First Home Buyer
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Basic Financial Considerations For The First Home Buyer

Are you planning to buy your first home? Are you really ready to take the plunge? There are several considerations to keep in mind before securing your very first home. Your budget, the location, the neighborhood, the loan term, and many other factors help you decide if it is indeed time for you to buy your very first home. Buying a home for the first time is an exciting move in your adult life. With prices of homes decreasing this 2019, this is indeed a good timing for first time home buyers to finally get the dream home that they want. However, there are still a lot of consideration and factors that you should be aware of before taking out a home loan or purchasing a home outright. Here are some tips you can follow to be able to ensure that your first time home purchase is indeed a good and budget-wise investment. Can Your Finances Afford a Home Loan? Before applying for a mortgage, you might want to understand and see where your finances are. Are you even aware of your credit score, your assets, and your liabilities? You should be realistic with what you can afford and how you can repay a home loan in the event that you get a mortgage approved. A home loan calculator can give you an idea if your current finances can afford paying for a home loan. Review Your Budget and Eliminate Debt Your debt-to-income ratio tells about your capacity to repay a loan. If your DTI ratio is above 30, you might want to clear off debts prior to applying for a home loan for better chances of approval and better interest rates on your mortgage. Eliminating or reducing debt also improves your credit score. Better credit scores will get you better deals on your home loan or any other personal loan you might consider applying for. Better interest rates gives you better savings on your loan repayments. Less debts and monthly obligations in terms of payments will also make it easier for you to repay your mortgage, without hurting your personal finances during the duration of your loan term. Getting a Pre-Approval Being prequalified for a loan gives you a bigger picture on what lies ahead on your actual loan application and loan repayment.The process is almost synonymous to an actual loan application because lenders will pull out your financial records to do the process. You’ll get a better idea on how much loan you’ll get approved and the repayment scheme you’ll have to commit with to repay your mortgage. Save Up For Your Down Payment In Australia, you can apply for a 95% LVR home loan, thus will require 5% of the total value of your real estate property as your deposit. However, a low deposit like this may require you to pay for Loan Mortgage Insurance or LMI. It would be ideal to save up for at least 20% of your property value to avoid paying for such insurance. An 80% LVR mortgage also has higher chances of approval. Saving up for a higher down payment also allows you to enjoy a lower loan principal amount. The lower your principal amount is, the less interests you’ll have to pay for. Talk to a Trusted Mortgage Broker For more detailed explanations on the areas that you do not understand in applying for a home loan, it would be advisable to talk with a mortgage broker. You do not have to worry about paying for a fee. Mortgage brokers are given a commission by the bank or the lender for every successful loan application. This will be shouldered by the lender or the bank, and not by the client. The expertise and experience of mortgage brokers from Intellichoice Finance can help you secure your first home, through a home loan smoothly and within your financial situation. Call us today and take that first step in successfully securing your first dream home.

Investment Property and Home Loans: How Are They Connected?
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Investment Property and Home Loans: How Are They Connected?

Are you looking into investing in property through a home loan? There are several factors to consider when investing in a property, even more, when you are financing this purchase via a home loan. An investment property is an ideal venture you could explore when aiming to put your money into something that grows and earn profits. However, investing in a home or a property that would later be sold to earn profits, entails knowledge and sacrifice. Entering the real estate world is definitely not a walk in the park. If your finances are not abundant, you need to control your budget to be able to afford a property you’ll invest into. A home loan might also be necessary to fund your investment property. However, being cash limited is not a hindrance for you to access a mortgage for an investment property in Australia. But, it is essential to have a long-term plan on how you will afford paying for a mortgage without hurting your regular financial needs, while making a profit out of your property investment as well. Sound complicated? We can help you through the process. How Much Do You Need? To be able to apply for a mortgage that is to be used to invest in a property in Australia, you need to determine the amount that you will need for the deposit as well as the amount you should have to repay your mortgage. It is most common to be able to afford 20% of the total value of your investment property. This is the ideal amount you need to save up to be able to get the best rates possible and to avoid paying for LMI or loan mortgage insurance. You can still go for a 95% LVR and pay as little as 5% for the deposit. But, this will require you to pay for LMI. To give you an idea, here is the average cost of deposit you’ll have to save for when buying a home in Australia. Sydney – $51,000Melbourne – $41,000Brisbane – $27,000Adelaide – $23,000Perth – $24,000Hobart – $23,000Darwin- $25,000Canberra – $34,000 If your budget are not within these median home values, you might want to explore properties in the regional areas. Measure Your Financial Health A mortgage calculator can help you understand if your current finances can afford repaying the mortgage for the property that you have in mind. This monthly repayment amount should not affect your monthly budget to be considered as a good investment. Your debt-to-income ratio will play a big role in determining whether you are able to repay. Most banks and lenders are looking into an average of 30% debt-to-income ratio. For an income for $6,500, you should have around $1,950 available for regular loan repayments. This is true, regardless of buying a property to be transformed into your home or getting a mortgage to fund an investment property. Eliminate Debt Before jumping into real estate investing and getting a mortgage to fund your investment property, it would be ideal to eliminate current debts that you have. Paying for debts while repaying a mortgage could likely weigh you down in terms of your finances. Prioritize letting go of the items that could make it hard for you to repay a loan. Consolidating your debts would be a good idea. This could help you save in interest rates and make it manageable to pay your debts, now compiled in a single account. Get Help From a Mortgage Broker Your first attempt or even your second attempt in investing in a real estate property can be risky. You can have miscalculations, assumed the wrong things and numbers and your lack of experience may contribute to a less successful attempt in investing. To avoid this, you might want to enjoy the convenience and expertise a mortgage broker offers. Mortgage brokers can confidently guide you through the process of purchasing a property and using a mortgage to fund your venture. Working on this with help, instead of testing the waters alone could save you thousands and avoid possible problems you might face in the future as you begin to repay your property investment. Talk to an Intellichoice Mortgage Specialist today and get the help that you need.

What are Existing Personal Loan Rates in Australia?

What are Existing Personal Loan Rates in Australia?

There are several personal loans available in Australia. Knowing which personal loan is best and suited for your budget and your financial circumstance is a challenge. Here is a compilation of the existing personal loan rates in Australia. This may help you decide which Compared to other types of loans out in the market today, Personal loans are coming out as one of the most appealing amongst the rest. This is because they can be approved very quickly. Most banks that Lend can approve or reject a personal loan in one to four working days – others even instantly. Another advantage of personal loans that sets it aside from rest is that it only requires one, not several monthly payments and you might find that it’s interest rates are lower than most rates of all your cards. How much you can borrow depends on the purpose you are going to use it for. Secured personal loans generally are loan amounts ranging from $3,000 and up to $80,000 while unsecured personal loans generally are loan amounts ranging from $1,000 to as much as $50,000. Personal Loan Rates In Australia Personal loan rates vary from lender to lender and it’s offered within interest rate ranges. A personal loan rate range offered means the minimum rate to the maximum rate you could qualify for. Advertised vs. Comparison rate In Australia, you could find advertised interest rates as low as 6.99% fixed rate to as high as 16.49% variable rate based on twenty one known lenders in Australia. Some lenders offers a high 9.99% interest rate for people with good credit standing for a 5-year $20,000 loan. The same amount and loan term will have an interest rate of 26% for those with poor credit histories. Comparison rate is simply the interest rate and the fees combined. This is usually found next to the advertised rate and it is comparably higher. The figures provided under comparison rate provides borrowers a better idea of the total cost of the loan. Know The Difference Between Secured and Unsecured Loans Secured vs Unsecured The key difference between Secured personal loans and Unsecured Personal Loans is the presence (or absence thereof) of an asset. On one hand, Unsecured Personal loans lets you borrow funds without the use of a collateral, like land or your car. They rely entirely on your income and how much you earn to repay the loan, this type of loan allows you to construct the terms of how you use your loan amount. You can use your grant to consolidate debt, make huge purchases, or anything under the sun you’d like to use it for. On the other Hand, Secured Personal loans are secured against an asset of your own and can be sold if you do not have the means to pay off your loan. Fixed vs Variable Rates As soon as you’ve decided on what type of personal loan to apply for, its best to examine the interest rates that come with it and work out weather repayments are within your budget. When browsing through personal loans, you will come across Fixed and Variable interest rates which are the two most common. Opting for a personal Loan with fixed interest rates can be advantageous as the rate will be the same for the duration of the personal loan, regardless of market rates. Variable rates on the other hand, fluctuate with market rates. The things you look for when you are comparing personal loan rates in order to get the best personal loan that suits you and your needs are its corresponding fees and charges, Interest rates such as Fixed and Variable, adjustability around repayments whether additional and lump sum, and its customer service. How to Get Personal Loan Rates That’s Handcrafted for You In order to get the best personal loan rates in the market, its best to keep the following factors in mind. Bottom Line Personal Loan Rates Vary from Person to Person. It is Flexible and allows for the best Offer if chosen and constructed carefully with thought and for the purpose it is intended for. Now that you’ve read about the basics, to find Personal Loan Rates in Australia that best fits your specific needs, Its best to keep in mind what you’ve just read and take the time to really look into different bank offers that you feel best compliments you.

How to Improve Your Credit Score
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How to Improve Your Credit Score

There is no doubt that everybody wants the easy way in life. Nobody wants to go through the long hassle waiting in lines and the agonizing days of anxiously waiting for the approval of your loans, mortgages, and the like. The good news is there are ways to improve your credit score. That way approval of your loans, mortgages, and payments wouldn’t have to take too much of your time. What’s a Credit Score All About? Credit scores are used by financial institution and/or lenders to assess whether or not you are fit and likely to pay your credit back. It gives Lenders a brief look on the risks that come when lending to you,  so basically, its best to have a higher credit score than a lower one so you have a greater chance of being accepted a loan or credit. Typically, the average credit score you can get is around the range of 700 to 750. You get much greater odds of approval though when you have a score of 800 and above.   There are two main types of credit scores, namely, Generic and Custom. Generic Credit Scores is used the most, it determines your overall credit risk. Custom Credit scores, on the other hand, is different in a way that it is made based off of the lender’s own portfolio and not the borrower’s. This type of Credit score is used mostly by small businesses and credit unions and can apply only to a particular variety of lending. Keeping a good record of your credit score gives you a chance to get the best out of Lenders and Financial Institutions more often than not, check on the type of account, the age of your account, the number of late payments, and your total debt in general. All these factors contribute to the likelihood of getting approved. “How Do I Improve It?” Thinking ahead and Improving your credit score in the earlier part of the planning process is always the way to go. You can do so by trying out a few of these tips and tricks. Credit Scores are a huge determinant to whether or not you will be able to apply for your loans and the like, and so you shouldn’t take it very lightly. Keep in mind these few tips and hopefully, by the end of it all, you will be able to get a higher credit score and start what needs to be done.

Mortgage Calculator: How to Use Before Applying for a Loan

Mortgage Calculator: How to Use Before Applying for a Loan

Are you planning on applying for a home loan? You might want to use a mortgage calculator to understand if you can afford to repay a home loan once approved. This article helps you understand more about mortgages and repaying one. “Money makes the world go round”, that’s what most people say. Everybody needs money. Every day, every minute, and every second, people go out their ways to spend it which is why Loans are always a big deal. When you want something but you can’t get it people always turn to financial institutions to borrow. That being said, applying for a loan always has to be well thought about before one dives straight into it. There are several things you need to consider to get the best out of your Loan. Its types, Its Interest rates, Its Length, and the most important but underestimated aspect, The Mortgage Calculator.  Do I Really Have to Use a Mortgage Calculator? When buying a home, a car, or even just borrowing money for whatever reason you want to use it for, the more informed you are beforehand the better chances you get to pick a loan that’s best for you. By using Mortgage Calculators, you get the best picture of your financial state overall and you’ll feel more self-assured in the long run, therefore, the more confident and at it ease you get as you go through applying for a loan. Using a Mortgage Calculator is Beneficial because it’s great for discovering your standpoint when it comes to Loan Preparations. Many can say that getting a loan can be loads of work, its Stressful, and Intimidating, not because they are ill-disposed to Pre-planning, but because they do not know where to begin and so getting a head start on using the Mortgage Calculator may be most beneficial for you.  Types of Mortgage Calculators To fully create the best experience with starting out how to plan your future Loans, you must keep in mind that there are different kinds of calculators to use for different kinds of situations.  Mortgage Payment Calculator– A good place to start with when using mortgage calculators is with the Mortgage payment calculator since it can input basic aspects like its Mortgage size, amortization Period, and it’s the interest rate. Although this may be the most simple and easy to use, it may also come off as incomplete in that it doesn’t give you complete information about specific situations.   Mortgage Affordability Calculator– This type of Mortgage Calculator is best used when you want to establish how much mortgage you can afford. This type of Calculator applies the more advanced confederate rules that most Financial institutions use to make you eligible for a mortgage and so it’s especially important to remember that the Mortgage Affordability Calculator is the most important type that you should use before applying for a loan.  Mortgage Insurance Calculator– This type of Calculator is different from the rest because it will tell you how much Mortgage insurance you will have to pay for as well as the total amount you’ll have to pay for once Premium Insurance is added. Mortgage insurance is usually overlooked and taken for granted but with this type of calculator, planning ahead will be a lot more sweat free and you’ll have an even better headstart with all the aspects of applying for a Loan – even the insurance part. Now That I Know All These Things, Where Can I Find Myself a Mortgage Calculator? On one hand, If you’re the type who wants a convenient and Hassle-Free experience, Mortgage Calculators are easily accessible in the interweb. As soon as you type it out, multiple sites pop up and offer accurate and easy-to-use Calculators that can help you get a head start with your future Loan application. On the other Hand, If you’re the type who wants to see to it that you get the best experience with these types of calculators, you can go out of your way to buy Calculators handcrafted for these types of problems in your Local Business Shops or bookstores.  If by any chance, you still have a lot of difficulty with all of this, you can always contact a mortgage broker that’s nearest you, this way you will be able to get the best advice and understand the whole process in a clearer and better picture, therefore, as a result, get the Loan that best suits you and your needs .  Best Luck on your Loan Application Journey! 

Stamp Duty Calculator for 2025

Stamp Duty Calculator for 2025

How much Stamp Duty do you need to pay for this 2019? A Stamp duty calculator can help you determine how much you’ll need to prepare, on top of your home loan deposit. Continue to read this post to learn more. It’s a given fact that people who understand the meaning of ‘tax’ also know the meaning of ‘Calculator’ – and pretty much how to make use of one. But it’s a whole different story when one mentions ‘Stamp Duty Calculator’ , not a lot of people know what it is, let alone know how it works. But, when buying a house a lot, or a piece of land, although taken for granted more often than not, is a very important aspect that if bypassed may be a huge problem later on in the process. WHAT IS STAMP DUTY AND WHY IS IT SO IMPORTANT? Stamp duty, sometimes also called land transfer duty, is a general tax imposed by Australian territories and states on purchases regarding the property. It is present when you transfer land from one person to another. The stamp duty amount that one pays may vary depending on where you are or how much you bought the property for. With different states, different charges also apply and it’s usually more expensive in the inner city suburbs. It’s good to keep in mind that there is a direct relationship between property prices and stamp duty. This means to say that when property prices are high, Stamp duty rates are expected to be higher as well. The law gives you 30 days to pay stamp duty but in other states can go from 30 days and even reach up to 3 months, depending on what purpose of payment it is for or where you are located. Like all other payment these days, stamp duty payments are no exemption, you can pay them online, through banks or mail, credit and debit cards, and even checks. WHAT CAN A STAMP DUTY CALCULATOR DO FOR ME? Stamp duty calculators come in handy when you’re eyeing on a lot or property and you want to work out how much stamp duty or land transfer duty you have to pay to be able to get that lot. This is useful because it allows you to go through more options as it gives you an idea of the amount you are going to expect to pay. Because the stamp duty rates across Australia vary, each state has its own stamp duty scale, and like most things these days, easy to get your hands on. Simply searching for it on the web can give you instant lists and sites. You can expect to find yourself a stamp duty calculator in no time. Its very accessible and can easily be found on the internet. You won’t have to worry too, because it’s usually totally free of charge and super easy to use – not to mention, it’s accurate and reliable as well. If by any chance, you are still feeling a little confused with what stamp duty is and how you’re supposed to use it, It’s always a good idea to consult a specialist that way you will not have to regret or miss out on any big deal later in the future. Head to this page to determine how much Stamp Duty you’ll need to pay for when purchasing a home in 2019.

How to Use an LMI Calculator

How to Use an LMI Calculator

A Loan Mortgage Insurance is an amount that is added on top of your home loan deposit and is required for most home buyers who availed a home loan with less than 20% deposit. If there’s a Mortgage Calculator for Borrowers, there’s also what you call a Lenders Mortgage Insurance Calculator for the Lenders. Both these calculators can be used by lenders and borrowers respectively. Before you can go out and start using a Lender’s Mortgage Insurance Calculator, or LMI Calculator as its commonly called, you first have to thoroughly understand what this is and why it’s so important. A Lender’s Mortgage Insurance is insurance that protects the lender while allowing you to get higher amounts of money to borrow. You should keep in mind that Lenders Mortgage Insurance is only necessary if you are borrowing more than 80 percent of your property value and that It allows you to pay a deposit amount much smaller than that of the usual. Can I Avoid LMI and its Future Costs? There are a Handful of things you can do to effectively minimize or if possible even Avoid LMI as a whole. These things Include: Is an LMI Calculator Really that Important? To give you an idea of the best deals for you, and tell whether or not you are qualified for a Lenders Mortgage Insurance it is best to make use of an LMI Calculator. It simplifies and gives you an idea of what to expect beforehand thus making it more convenient in the long run. Helping you understand your options is one of the benefits of using a Lenders Mortgage Insurance calculator and so choosing to use it helps a whole lot. The fees that come from LMI varies from institution to institution and depends on a lot of things, so using a calculator gives you an idea of what to expect and so brightens your future perspective regarding the whole thing. Where Can I Get Myself My Own LMI Calculator? Assuming that you’ve learned and understood what the Lenders Mortgage Insurance is and how it works, You can now easily compute your expected fees if you’re low on deposit. Finding A Lenders Mortgage Insurance isn’t that hard to do, in fact, it’s super accessible and very easy to find. Just simply looking it up on the Internet and it gives you multiple Pages to Compute your LMI instantaneously. If by any chance you are still having a hard time taking all this information in and loads of questions are still left unanswered, it’s probably a good idea to contact a specialist nearest you. That way you get to understand fully all the things you need to know and learn more throughout the whole process.

Asset Finance Melbourne
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Asset Finance Melbourne

Being a small business in Melbourne is tough. You have so many competitors running like sharks on the ocean of quantum profitability. Besides, there are also many possible causes for its early decay lurking somewhere beneath the water. Unless you prevent these causes, you can never eliminate problems and headaches along the way.  However, if you don’t get your self-informed about these predators, chances are you will be heading to hit the wall too early. So, take control of your business and set yourself free from the cycle of corporate bad karma. What are you waiting for, grab your pen now and have a list of these very important strengths for business to protect its immune system? For your business to gain superhuman strengths just like what the yogis of Tibet have, they should be totally for profit and sales oriented. It should not mean being aggressive with no consciousness, though. Being persuasive yet staying in a meditative state is the best secret business monk like you must live by. You must project this image. Next is being in the now while ethically using effective systems, approaches, and people to get things done, both short term and long term. This is the most kick-ass life-hacks for your business. You don’t need so much motivational videos from YouTube trying to bombard you with new age marketing strategy. Just contemplate on these basic rules and you’re now ready and set. Once you have those formulas, another recipe is to sell services and products that people really want to buy. Providing people with things, they need is a sure way to make cash. These are their everyday stuff in that nirvana state; things for their daily ritual in heaven. If you can manifest this abundance for the consumer universe, the prosperity of your small business will surely come along with fires and chariots.    So, there are good techniques to win the game or the “Lila”. In this age of stock market “kali yoga”, you just must find the right mystery school for this. But what if you are really in a challenging phase of your commercial journey? What if you are running out of capital? Well, prepare for this eureka moment. The answer is Intellichoice! We offer asset finance here in Melbourne with ranges of small interest rate options. We are one of the few mortgage brokers here in Australia that is developed to help people rise from the downward spiraling direction of their business. We can help you obtain important tools, machines, or vehicles for your business. Call this number now – 1300 55 10 45 – and talk to loan experts for your assessment.

Asset Finance Brisbane
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Asset Finance Brisbane

Intellichoice is recognized in Australia as a leading loan management company. Through our cutting-edge approaches on lending and finance, we have helped thousands of Aussies get mortgage approvals without compromising their preference. Our system of assessment is proven to be very helpful. For two decades we enabled many individuals to achieve their business goals. We maintained a very fruitful connection with various lending financiers across the continent. We helped many families acquire a home through our loan assistance. Our up-to-date advice has allowed many clients to recover from their credit problems. We have a specific answer and clear solution to your questions. If you are a small business in Brisbane who’s looking to apply for asset finance, you are on the right track! We can help you succeed for as long as you can provide all the requirements we need and understand our terms. It is not easy, but we can help you simplify the process. First thing you must do is call one of our loan specialists at this number – 1300 55 10 45 – and tell us about your credit situation. We would also be glad to learn about your current financial status so that we can assess how we can help you. Our 24/7 customer service will help address all your concerns so that you can troubleshoot any glitches at any time.          We have the best asset finance offer in Brisbane. For as long as you have completed your requirement, we can help you with your journey. We can connect you to the right loan financiers. You don’t have to worry anymore about losing your enterprise. We will accompany you in times of your financial challenges so that you won’t have to struggle. We will enable you to acquire the materials you need through our well-tailored asset loan offers. You don’t have to complicate things; all you must do is call us at Intellichoice office now and talk to our staff. Learn more by asking questions. Just follow these advices and you are good to go. Do not hesitate! What is Asset Finance anyway? This type of loan has been around Australia for some time. This method is being used by businesses to secure a loan from specific lenders by using balance sheet assets. This serves as collateral. This allows a secure and easy approach to getting working capital for a business. The amount of money to be loaned depends on the value of these assets. Examples of things that can be offered as collateral are machinery, vehicles, computers, and even building infrastructures. If you decide now on getting a finance loan here in Brisbane, just call Intellichoice now.

Business Loans Brisbane
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Business Loans Brisbane

Planning makes you efficient in making decisions. It enables you to see things in advance and imagine possible circumstances. This is very important in running a business. It makes things easy to manage and allows your business goals to be achieved. This is very crucial to those who are currently experiencing financial challenges. Unplanned business decisions are prone to risks. Unforeseen challenges may cause failure in your venture. For you to be able to run your business effectively, you need a well-planned approach. But if you are not that equipped to do this, our company Intellichoice is here to help you.   Our job is to help clients on their business planning and application about their financial aspects. We are a company of loan experts willing to take the risks just to help people succeed. We have hundreds of clients currently benefiting from our successful loan programs. Our group of lenders is fully equipped to provide monetary support for business investors to succeed. They are always ready. And they are committed as much as we are. If you are planning to apply for a business loan in Brisbane, dial these numbers now – 1300 55 10 45 – learn how to get approval.   Loan transactions are generally complicated. Sometimes you get connected to the wrong type of company. If you are not clever enough, chances are you get more entangled with debt. This happened to many of our clients before they decided to work with us. Thanks to our loan experts’ energy, these clients have become resilient. Our group of specialists helped them with all the necessary legwork. They also took care of the paper works. And their smart pieces of advice have enabled our clients to get their credit file fixed. This is how planning and strategizing work. And this kind of support is not easy to get from varying loan management companies in Brisbane. This is mostly exclusive to Intellichoice. Intellichoice helps you deal with tasks most lending companies won’t dare to touch. Our innovative programs assist borrowers without compromising their choices. Our essential knowledge helps both our clients and financiers. This is very important. Without taking care of these dynamics, the balance will not take place. Running your company without proper skills and ability will always get you in trouble. But with our help, this could be avoidable. We will help you save money and time. We will also help you recover, and we will always do this as a commitment to our fellow Australians. Furthermore, settlement timeframe can also be long, tedious, and sometimes very stressful. Most lenders or banks do not really care about the process at your end; it is you who can help yourself or your business gain financial stability and strength during its lifespan. But here at Intellichoice, we believe that your success is also our gain. We understand that finance is the blood on your business veins. It is our job to give you a thorough assessment and efficient technical support that could help your revenue grow. Business loans in Australia vary from company to company but you don’t need to worry because Intellichoice has already gathered the most successful ones that are leading Australia’s financing market. 

Bad Credit Loans Guaranteed Approval Sydney
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Bad Credit Loans Guaranteed Approval Sydney

Some people fail in getting a loan approval because of many different reasons. These vary depending on the person’s attitude towards the issue. One of these is that they do not know how to handle their credit file and their finances. Oftentimes, they don’t really give proper attention to their financial situation. They also don’t pay their bills on time. In some cases, people do not care spending a lot or spending on not so important things. This is a total waste of money. Others just jump to credit offers right away without thinking twice. This is common behavior. But if you want to keep your credit clean and organize your finances, you should continue reading this article so that you can learn the different ways to do it. Ignoring these reminders will not make you succeed in getting a loan. For you not to overspend, you should really be careful on what you are buying. Your hard-earned money is your energy and time used, so do not waste them. Do not ignore small credit issues as they become serious if remain unchecked. If you have old accounts in your file, do not remove them. They leave marks on your record and lenders do not like that. Just move forward and focus on fixing your credit record. If you have credit card balances, you must also pay them. It is important to monitor your credit record as it will enable you to succeed in your future loan applications. In addition, you must also seek help from experts. They have much information you still didn’t know. You must really equip yourself with enough knowledge about how to handle your finances for you to keep your credit record always on a positive level.    Seeking advice from a loan specialist is a very crucial thing to do if you want to succeed in getting loan approval. You must be knowledgeable about this if you truly want to keep a good standing. With, Intellichoiceis the best company to work with in doing this. We can be reached through this number – 1300 55 10 45 – at any time. By calling us, you can for you. Just be cooperative when our staff does the assessment process so that we can clearly understand your current financial standing. In this way, our loan experts can come up with an appropriate solution to your problem. Always remember, keeping a good record in your credit do not only add points for your application, but it is also a way to prevent disorganization and stress.

Bad Credit Loans Guaranteed Approval Melbourne
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Bad Credit Loans Guaranteed Approval Melbourne

If you want to learn the reasons why lenders deny your loan application, you must seek professional help now and change the circumstance. Monitoring and controlling your credit file are very important that is why it will be very useful to consult experts about it. They are the ones equipped with effective loan strategies that have been proven doable and realistic for your credit issues. Many Australians find it expensive and time consuming. The truth is that getting connected to the best mortgage providers here in Australia is not that difficult to do anymore. Intellichoice offers bad credit loans here in Melbourne and we are happy to provide you our well-structured assistance. We serve our clients well and with honesty as they are also the reason for our decades of success. At Intellichoice, although finance is our main goal, we specialize not only in loan assistance but also in various areas of assessment and credit solutions. This means that we also provide helpful ideas for fixing negative credit record with our specific formulas. Our loan experts are some of the most well-trained specialists all over Australia. We know the drill. We have gained an excellent reputation for our company that is why top financiers across the country trust us. They have been with us for so many years and they are the reason why Intellichoice has built a strong connection with our partner lenders. If you are ready to learn, you must talk to our experts as they provide careful analysis that could enlighten you a lot about your financial and credit management. Are your personal documents ready? Dial – 1300 55 10 45 – now and talk to our staffs for your own questions and concerns. Be sure to prepare everything before you call. You might want to write down your questions in advance. Support is very important in so many aspects of our lives including our finances. Just like anything part of our daily activities and objectives, this must be given priority for contemplation and planning. Mismanaged resources often turned out inefficient and sometimes even worse, a burden. This is essential for maintaining a good credit record for your future application. Files with unpaid bills, previous unfixed loans, negative credit transactions, etc. are not a priority for the lenders. If you are having ones, you must make a move and work them out as soon as possible. However, if you feel you have nothing to worry about, just call our office and talk to our experts. Do not waste the opportunity.

Asset Finance Sydney

Asset Finance Sydney

If you are thinking of growing your business but you don’t have enough financial capital for the equipment, try applying for our asset finance. Intellichoice offers asset finance here in Sydney that is unique and very reliable. For more than two decades, our clients have never failed to improve their business. Of course, there were challenges along the course but with our loan experts’ guidance, they find it all very manageable. We are one of the very few companies here in Australia that offers the best kind of loan assistance. We can help you obtain the equipment you need for your business such as tools, machineries, computers, and vehicles for transporting your goods and transactions. We can surely provide you the access!  Asset finance means a type of finance used by businesses to get the equipment or the machineries they need to operate. It includes regular payment charge for the use of the asset or the equipment. This is a way to avoid the full cost of the asset from outright purchasing. This is very helpful to many business operators in creating steady cash flow or income. Our lending partners are also the finest we have in Australia. We are very proud to work with them. They stick with us through thick and thin. In return, we also take good care of this trust. Part of this is because they also benefit so much from our very efficient system of management. And this system of management also helped a lot of our clients through the years. So, it’s win-win cooperation for all of us! If you still doubt these words, do not worry because that is normal. For you to make sure, call our office now (1300 55 10 45) and ask questions from our staff as many as possible. We are willing to explain everything to make you understand clearly. We are just a phone call away! We are always ready to help you get the loan even if you are a small business owner. We know that for you to succeed, you will need trustworthy allies. You should be excited because our financiers are always looking forward to helping our clients achieve their goals. They provide money for very low interest rates. Your success also means our achievement. If you prosper, that means we are truly efficient. Our leasing option will allow you to acquire any equipment you need. If you choose to work with us, we will always be there to guide you along the process.