How Owner Builders Can Secure A Mortgage Loan
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How Owner Builders Can Secure A Mortgage Loan

ByDarin Hindmarsh

Getting financing as an owner builder can sometimes be difficult – only with the wrong people and the incorrect approach in applying. You can still maximize your chances of getting approved, despite how stringent and tough lending criteria can be for most owner builder home loans today. Continue reading to learn more. Lenders and banks have become very conservative when it comes to owner builder mortgages. They see it as too risky and the worry of an unsuccessful or income construction makes it skeptical for banks to proceed with such applications. Buying a real estate is way more different than an owner-occupied construction loan. Most banks would require enough equity, savings or a guarantor that increases security on your loan, are factors that may help increase your chances of being approved for a loan. However, the average Aussie will have a hard time complying to all these requirements. You can still stand out and get approved with an owner builder loan application. Here are some tips you can do to increase your chances of a guaranteed approval. Create an Appropriate Your Budget What makes banks and lenders hesitant with owner builder loan applications are the possible changes in the costing of your project. Some may tend to overspend, or the licensed builder may have a hard time keeping up with the expenses while waiting for drawdowns to be released. Ensure that your estimates are as accurate as possible. Contingency is another important factor that you should include in your estimate. If you are not a licensed builder, you can expect no more than 60% of your build cost as the maximum amount of loan that can be approved by your lender. Consider Getting Pre-Approval Getting a pre-approval before entering an owner builder agreement would give you an idea on how much you can get in terms of the loan amount. Having an idea on the maximum loan-to-value ratio the bank or lender might approve you for a mortgage. This can help you decide if you can indeed handle the extra amount that you may need to be able to work on an owner build. In a pre-approval, you will be able to know the loan repayment terms of your mortgage as well as extra repayments that you may be required of when approved. Fees and charges apply for some terms on your loan too. You will get a better idea on this through a pre-approval. Through a pre-approval, you can also determine if you can avail other types of mortgages instead. There are different types of loans you can avail in the event that you see yourself unfit or needing a different kind of loan instead. Seek Expert Advice It would be ideal to talk or seek advice from someone knowledgeable when it comes to applying for owner builder mortgages. An Intellihcoice mortgage broker can guide you in understanding the process of applying for an owner build as well as explicit advice you on how you can improve the chances of getting approved. Apart from taking your hand throughout the process, a loan specialist can also seek the best deals and loan features that work well with what you need and what you can afford. Talking with a loan specialist can also help you understand home loan repayments as well as other aspects of your loans such as offset account, stamp duty and other small details such as interest-only repayments or variable rate mortgage. They will also help you determine the different objectives you should set your eye on when applying for an owner builder. Speaking with your financial adviser or accountant can also give you an idea of how much you can afford and what you can do in terms of your personal finance to be able to afford a mortgage application. They can also advise you in budgeting and inform you about areas in your finances that you can improve. 4 Basic FAQs Answered for Owner Builder Mortgage Applications Requirements for Applying You will need to facilitate your lender, bank or loan specialist with your owner builder permit, project plans, and cost estimates. Your budget and copy of your builder’s insurance are also required in your application. Other documents will be required by other banks and lenders. Get a loan specialist to make the work faster and less stressful on your end. How much can you borrow? A licensed builder can borrow more compared to those who are now. Eight percent of the total construction cost for a full doc loan can be availed by a licensed builder, while those who are not can get anywhere from 50%-70% of the total construction cost. If you are not a licensed builder, you might want to save first prior to applying for an owner builder loan. Are there still banks that offer owner builder mortgages? At present, there are quite a few banks and lenders who still carry owner builder loan products. Most of them are leaned into believing that going over budget or not being able to complete a build. A licensed builder is considered as less risky borrowers, but most banks would still likely offer owner builder loans in their financial products. That is what makes Intellichoice different from other financial services. We are connected to several banks and lenders that are still happy to provide an owner builder mortgage for you. Intellichoice find ways, and we make sure that our way is favorable, economical and just the right for you. After getting approved, what happens next? After an owner builder mortgage approval, the lender will release the funds to you in progress payments and not in lump sums. Each stage of construction, a valuer will assess the work done and if approved will authorize the lender to release the next drawdown payment. Speak with a mortgage broker today to take you one step closer to your dream home.

What Are The Requirements of Basic Aussie Home Loans 2019?
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What Are The Requirements of Basic Aussie Home Loans 2019?

ByDarin Hindmarsh

Just about all loan providers have particular requirements for assessing a mortgage application. This specific set of criteria will establish approval of your application. There are numerous loan companies to pick from, a few have a few things added, however, the majority have similar specifications for the borrowing party. Below are a few of the typical conditions banking institutions are looking for in a borrower. 1. The kind of borrower lenders look for in Aussie Home Loans applicants Loan companies give preference to select borrowers in the following areas: Age preference You should be no less than 18 years of age to obtain a home loan approval, several loan companies are reluctant to give loans to older borrowers too, specifically at age 55 and over. If you are a within the older borrower category, you need to supply a penned payoff strategy. To show your capacity to pay back your home mortgage, the lending company may confidently provide you with a short-term home loan. Residency preference Loan companies will need to know if you are an Australian permanent resident. On the other hand, if in case you don’t hold a permanent residency in Australia, you are not ruled out from taking out a loan. For example, a non-resident married to (or has a de facto relationship) a person holding an citizenship in Australia or who has a permanent residency in Australia, lenders will evaluate your loan application like that of a resident’s application. In other situations, loan companies may possibly put restrictions on the sum you could take out as a loan. You may also need to provide a bigger deposit amount. In certain instances, you may possibly be required to get the authorization of the FIRB – Foreign Investment Review Board. Scenario Are you currently taking out a mortgage as a company, an individual, or as a trustee? Lenders make it possible for companies as well as trustees to take out a loan, however, they will need certain documents and will probably use varying lending requirements set up. Nonetheless, note that not all groups or companies qualify for mortgage loans. Limited Liability Companies or what is known as LLCs, certain clubs and associations are not given approval for mortgage loans. 2. The kind of employment lenders look for Loan companies will assess your present work condition in order to see whether you’ve got a steady income source. The manner in which your income source is evaluated would rely on your kind of employment or employment status. For PAYG employees PAYG employees are those who get a payslip that shows tax withheld. If you are in this category then you must have a rather effortless time showing your earnings. However here are a few points that loan providers would like to see: For Self-employed individuals Most of the time, it is harder for self-employed individuals to supply income records but there are loan companies who give attention to offering financial loans to these types of borrowers. You will need to submit an application on a particular kind of mortgage loan. This is referred to as the low documentation or low doc mortgage loan. Because you don’t have payslips, there is a need to supply alternate documents to demonstrate your earnings, for example, tax returns, Business Activity Statements, or a written letter from your accountant. 3. Where are you at with your finances? Loan companies will evaluate your financial background, routines and general position by means of investigating the factors below: Cash flow (income) Loan companies evaluate your earnings to figure out your capacity to pay back your mortgage loan. The income information provided will help the loan company compute the actual loan payment you are able to afford and manage. For PAYG employees, by presenting your most recent payslips (at least three payslips), the loan company can establish an average amount that you can pay. Nevertheless, PAYG employees also have other income sources aside from their regular pay. A few of the other income sources loan companies will acknowledge are the following: Creditworthiness Loan companies take a look at your credit rating to evaluate your debts and repayment background. There are various credit companies that could provide you with your actual credit score. Credit ratings from credit agency Experian vary from 0 to 1,000 whilst those coming from credit agency Equifax vary from 0 to 1,200. In case you have had a few hard sections within your credit rating, you may still find loan companies who could possibly assist. A few loan companies focus on assisting borrowers who have a bad credit file and can present mortgage loans to borrowers who got defaults, judgments, writs, as well as dismissed bankruptcies. Monthly Expenses All lenders evaluate monthly spending to figure out what is the disposable income. Monthly expenses include the current bill, household goods, food, and optional spending. In order to compute disposable income, loan companies can make use of the home expenditure technique that computes the average expenses on fundamental consumer items and optional discretionary goods, or possibly the Henderson Poverty Index, this will take 2 presumptions depending on a household survey in Australia. Assets Assets include cars or any type of vehicles under your ownership, any stock shares you own, your superannuation and virtually any other properties under your name. Liabilities Liabilities pertain to any kind of financial obligations you have. This includes credit or bank cards, loans, car and truck loans, and debts through HECS/ HELP. Keep in mind that contained in the credit card debt evaluation, loan companies will look into the merged credit limit of your credit cards instead of the amount you owe. Thus, should you have a credit card you don’t use, be sure to cancel it or lessen its credit limit. Deposit If you have savings in deposit, this shows loan companies that you’ve got financial control. Some of the deposits may come from sources such as gifts and inheritance, but lenders would like to see that a minimum of 5% of your savings account comes from genuine savings, meaning money you kept in your account for three months at the least. Keep in mind that should you possess lower than 20% deposit, you will be required to pay for an LMI or lenders mortgage insurance, an insurance plan which will cover your loan provider in case you default on the mortgage. This could put a large amount on the overall price of your mortgage loan. Nonetheless, it is possible to obtain a mortgage loan with no downpayment. One of these means will be the usage of guarantors, members of the family, normally parents, who offer their property as security for the mortgage loan. This specific security will serve as a downpayment, removing the requirement to save for your own. When you need more info on guarantor loan products, you might find our guidebook useful. 4. The total amount you’re taking out as a loan The total amount of the loan you’re getting likewise impacts how loan companies evaluate your application. Below are a few reminders for the loan amount: 5. The kind of property or home you are purchasing The property or home you would like to purchase serve as security for the mortgage loan. It shows that in case you default on the mortgage, your loan provider will market the property or home to get back the amount of money they have loaned to you. As a result, loan companies cautiously browse through the kind of property or home you’re looking to purchase. Lenders will look into the following: Location. A number of loan companies have prohibitions on which areas they’re going to lend in. A number of non-urban locations, unfavorable places or places of oversupply could deal with this kind of limitations. Nature: Lenders would want to find out if you’re purchasing a house or perhaps a unit. In case you are purchasing a unit, remember that loan companies usually have stricter requirements for this kind of property. Loan companies will likewise be interested in a property that already has installed water source and electricity, is zoned intended for home use and is entered without having to drive through someone else’s premises. Size: The size of the property is generally appropriate just to units, with many loan companies demanding a minimum of 50sq.m. At the same time, land size is highly relevant to non-urban properties. In case a property is located on over ten hectares, a number of loan companies will not likely think of it. Some other loan companies will take into account land sizes as much as 100 hectares as hobby farming. Title: The property or home have to have a strate or freehold title with no encumbrances. Should you default on the home loan, the lender would prefer to sell the property or home with no prohibitions. 6. What’s the basis for purchase (why are you purchasing the property?) Finally, loan companies would want to understand why you’re buying the property or home, because it will determine the kind of mortgage you may get, and also the total you could borrow. Owner-occupied: In case you are purchasing is an owner-occupier, you can expect to deal with fewer prohibitions and presented a mortgage having a lower rate of interest. Investment: Although investors deal with tight lending requirements and increased rates of interest, it is possible to at times take out larger loan amounts since loan companies will presume leasing earnings can help you support your mortgage loan. In case your circumstance falls beyond these circumstances, don’t get disappointed. Several loan companies are prepared to adjust their requirements and take into account your application depending on its value.

Your Ultimate Guide to Construction Loans Australia 2025
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Your Ultimate Guide to Construction Loans Australia 2025

ByDarin Hindmarsh

A construction loan is your go-to option when you want to build your dream home in Australia. A regular mortgage is used to purchase an existing property. Construction loans are also used to finance major renovations on an existing home or an incomplete construction that requires a little, or a lot of work before you can finally call it your home. Interest Rates for Construction Home Loans Securing a relatively low-interest rate is what you would want to achieve when applying and getting approved for a construction home loan. In Australia, current interest rates for construction home loans ranges from 3.74% to 4.19% for loans with 70% to 80% maximum LVR. For 95% LVR home loans, interest rates start from 5.34% and 6.40% for owner occupier construction loans with 90% LVR. Interest rates mainly depend on the current market, thus varying, together with your profile risk as a borrower. The amount of down payment you can afford also has a take on how high or how low your interest rates will be. A bigger down payment often enjoys a lower interest rate. However, most lenders would require a 20% deposit of the total cost of your build, especially if the value if your lot is not significant. A good credit standing also counts a lot in reducing your risk as a borrower – thus lower interest rates for you to avail. Application fees and on-going fees are sometimes included in your home loan application. Upon approval, you will be required to pay for these fees together with your down payment. Application fees can go anywhere from $350 to $360 while on-going monthly fees may cost you as low as $8 a month, while for some $250 annually. Construction Loans Features Depending on the loan you’ll acquire, features such as redraw, and additional repayments may not yet be accessible. However, these features will be available after every construction phase. You might want to have extra cash handy to be able to continue with the construction even without a redraw being released by the bank. A clear idea on how the process of drawing down and accessing funds should be facilitated during the contract signing on your loan. The construction timeframe should be clearly understood by both parties as this plays a big role in assigning drawdown periods during the construction of your home. 4 Top Things to Consider When Applying for Construction Home Loans It would be ideal to create a thorough assessment of these areas on your application as well as after the approval of your mortgage to ensure less stress and success in your home building. 1. Is a home and land package ideal for a construction home loan? You can only take out a construction loan if you are working with a licensed builder or if you are the licensed builder that is about to work on a home construction or major renovation. If you buy a land and then build a home, you may have to apply for two mortgages. One for the land and another one for the actual build. If you have already purchased a lot prior to applying for a construction loan, this might be a feasible project on your end. 2. Is a licensed builder required to build your home? Most banks and lenders would feel more secure in approving a construction loan for you if you are a licensed builder or if you are working with a licensed builder. Constructing a home is a big project. There are the risk and unexpected circumstances that you may encounter during the build. Experience and expertise also increase the chances of a safe, secure and successful construction. Check if you are indeed working with a licensed builder through this post. 3. Are there clauses involved in applying for a construction loan? A finance clause is sometimes included for construction loans in Australia when working with vacant lands or properties. This is very common when the lot is purchased via a private treaty sale. Including finance in your construction loan contract has many benefits. 4. What happens if there are changes in the construction contracts? Sometimes, your lender may require making your construction loan amount higher. Material costs and other prices concerned with the construction might go higher even before you get approval or result on your application. To be able to prevent this, you can do the following tips Finalize and complete your building contract before sending it to the bank, your lender or your mortgage broker. Create an agreement with your contractor about reimbursing or discounting items in the event of changes in prices during the construction period. In return, you can also commit to paying with your own money any excess that may be incurred on top of your loan amount when prices change during the construction period. Intellichoice’s Mortgage Brokers can do the heavy lifting and help you secure the mortgage you need to fund building your home. Applying and getting approved for a construction loan is more challenging than your regular mortgages. Owner builder loans are even more different. Whether you are taking out a loan to build or renovate, the process will be the same and the construction process can be both stressful and efficient. The risks are there with so many stages of construction to worry about. However, your success depends on getting a licensed contractor that has proven their skills in completing projects such as yours. Another success story would be knowing how to find the best comparison rate for your loan and getting approved with loan repayments favorable on your end. Get the best options with Intellichoice. Call us at 1300 55 10 45.

Australian Expat Home Loans: Getting a Home Loan When Living Overseas
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Australian Expat Home Loans: Getting a Home Loan When Living Overseas

ByDarin Hindmarsh

Building a career and reaching for your dreams may require working overseas and leaving Australia. However, even while building for the future, the typical Aussie would want to go back and call Australia their home. Here is where getting a home loan when living overseas comes in the picture. It is possible to secure a mortgage loan, even for Aussie expats while they are working and living overseas. However, the question lies on whether it is an easy feat and if the rates for such mortgage applications are as competitive as getting a regular home loan. Securing Expat Home Loans Outside Australia Several banks and non-bank lenders offer expat mortgage loans to Aussies living overseas. Although there are certain terms and conditions that are related to such applications, this is good news for Aussies who dream of owning a property in their homeland. 5 Top Things to Remember When Applying for an Aussie Expat Home Loan in Australia? Every Australian citizen living in Australia or overseas is entitled to apply for a mortgage to secure and purchase an Australian property. 1. Expats do not need to obtain approval from the Foreign Investment Review Board This belief can sometimes “scare away” Aussies who are looking into investing in their own personal property in Australia. As long as you are a resident, you can take out a loan and purchase a land and a property, all while working and living overseas. 2. Higher interest rates apply with expat mortgage loans Contrary to popular belief, interest rates on loans applied to purchase a home while working and living overseas are just about the same as regular home loans. Although some lenders charge higher than others, Intellichoice can help you secure a loan with the best possible rate and conditions suitable with your budget. Prior to applying, you should weigh your options and compare what other banks and lenders offer. 3. Loan amounts have smaller LVR for expat mortgages The amount you can borrow is not based on your current location. It all depends on several other factors such as the current exchange rates in the market, the foreign debt you may have incurred, foreign tax rates as well as other factors that can affect your capacity to repay a mortgage. However, if you will compare the LVR offered to an Aussie living overseas vs an Aussie in Australia on the same property, the LVR of the Aussie residing in Australia is relatively higher by 15%-20%. This will require an expat to save a larger deposit or to provide equity from the other investment properties they own in Australia. Your foreign income, foreign currency, and its buying power can also contribute with your loan approval as well as the terms and conditions your mortgage may require. A negative gearing on the current economy you are working for can also contribute to the amount you can borrow. 4. Expats are required to return to Australia to process documentation This is true but is not required. If you are approved for a mortgage and will be required to process documents, you may or may not return to Australia to do so. If you are unable to return to process your application, you simply need to have your documents couriered overseas witnessed by the Australian Consulate or Embassy. A Registered and Enduring Power of Attorney can also help you save a trip back to Australia. 5. Working with a mortgage broker saves you time and resources In applying for an Australian Expat Mortgage, it would be essential to work with a mortgage broker to process your application. Maintaining a good communication with your broker also ensures that your application is on track and working towards your intended purchase. Where Can an Aussie Expat Secure a Mortgage? It would be ideal to invest in a home in Australia while living and working overseas. With a wide array of options available and logistic issues, one might find it challenging to secure a mortgage while outside the country. Talk to an Intellichoice mortgage broker today for your mortgage needs. We can connect you to several banks and non-conforming lenders that can provide a mortgage for you. Intellichoice’s advantage over a direct application with a bank or lender is the level of expertise and financial knowledge we have established with our clients for more than 16 years. Expect easy communication and speedy service with our experienced loan specialists.

Second Chance Finance Personal Car Loans
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Second Chance Finance Personal Car Loans

ByDarin Hindmarsh

Are you having a hard time applying for a car loan due to bad credit? A second chance finance car loan or bad credit car loan is the option for you. There are many reasons why you ended up with a bad credit. You may have lost a job a few years back, dealt with a bankruptcy or sickness or simply a few missed payments that you honestly forgot to fulfill. Whatever your reasons are for having a bad mark on your credit file, it does not necessarily mean that you cannot afford to pay for car financing. Just like regular loan applications, a second chance finance will require almost the same requirements as a regular car financing application. The only difference is it looks beyond your credit score and will measure your capabilities to repay a loan, regardless of your credit history. The process may take longer than a regular financing application but is simply a standard operational procedure to measure the risk a finance company is about to provide you with. Rejected by a Bank or Car Dealership? Do not despair. A bad credit rating is not a curse. A rejection from a bank or car dealership is not the end of the line. This is the reason why second chance car financing is for. People deserve a second chance after being declined or knocked out with a loan application. The application process need not be stressful and painful for you. However, you might want to ask help from a bad credit car loan specialist. It would be ideal to talk to a financing specialist a few months or even more from the date of your rejected loan application. During this time, you might want to reduce debts, pay off credit card balances and save for a down payment for your intended car purchase. The most ideal way to improving your chances in securing a loan – either a regular loan or a second chance loan – is to improve your current financial situation. Even if a bad credit car loan will look beyond your credit score, it does pay attention to your credit history. On time bill payments, regular payments on other personal loans, and good accounts on your credit file are plus points on your application as well as key in getting better rates and better deals for your intended financing application. How Do Second Chance Financing Works? Prior to applying, you might want to check if your current financial situation can handle paying for monthly payments plus car maintenance costs. A $20,000 car at 5% interest rate will require you to pay around $400 a month for 60 months or 5 years. Bad credit car loans come with higher interest rates ranging from 10%-20%. Even if you purchase a much lower brand or model, you may have to shell out at least $200 a month to repay a 5-year car loan. If your current finances can handle this, you might want to take that first step in acquiring your very first car. Sticking to your budget can be quite difficult with so many options available for you. The key here understanding how much your budget can handle. Together with a monthly car payment comes additional cost for gasoline, car maintenance, together with your usual utility bills and personal needs. Be honest with your source of income and financial capacities when dealing with a loan application. The more honest you are, the more workable your loan features and payment terms will be. Try to avoid no credit check car loans. Some of these schemes can do more damage than good to your dreams of owning your own car in the long run. Although there are non-conforming lenders that offer no check loans, the risk for them are higher, thus higher interest rates to be the burden on your end. Some interest rates can go outrageously high as 30% and will burden your finances in the long run. Seek help from experienced consultants with special personal loans. Worried about commission fees? These are usually covered by the bank or financial company, so you’ll have one less worry about extra payments that can come together with your purchase. A pre-approval is also a good idea. Consultants with specialists training will guide you through the right path of a successful application. As for extra payments, some lenders require a one-time payment fee while other requires monthly accounting fee or surcharges. Be sure to be aware of this and include it in your computation when comparing for the most budget-friendly car financing for you. Bad credit loans may also require a certain amount for deposit so you might want to prepare for this as well. Upon approval, your loan will be secured by the vehicle you have purchased. Despite being a secured loan, it will come with a higher interest rate – higher than regular car loans, due to the risk associated with the bad marks on your credit file. Working with Intellichoice can help you secure a better interest rate and favorable deals from one of your reputable lenders. We do more than half the work for you. Simply provide us with your target vehicle purchase, financial details, and car loan application documents and we’ll find what’s best for your circumstance. Ready to apply for a second chance car financing? Dial 1300 55 10 45 to talk to a car loan specialist today.

Requirements for Owner Builder Home Loans 2025
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Requirements for Owner Builder Home Loans 2025

ByDarin Hindmarsh

In most banks in Australia, the application for owner builder home loans can sometimes be limited to those who have a license to build. It can be quite difficult to come by for owner builders who would want to go through the path of building their own homes. Luckily, there are non-conforming lenders and financial institutions that provides owner builder home loans for owner builders that can provide security for a mortgage. Qualifying can sometimes be difficult but is not impossible. Working hand in hand with experienced owner builder home loan specialists can make a huge difference in your application. Requirements for Owner Builder Home Loans Application If you are an owner builder and would want to finance your project through a mortgage, here are the requirements that you need to prepare. Getting Approved for Owner Builder Construction Loans For licensed builders, the maximum amount of mortgage that can be approved when applying is 95% of the total project cost. This includes the cost of the land plus the cost included in the construction of the home. However, bot all lenders can provide 95% LVR. The allowable amount to be borrowed varies from one borrower to another, depending on their financial circumstance. If you are not a registered builder, but an Owner Builder you will most likely get 60% of the projects to build cost-and that’s if you can even find a bank who provides Owner Builder Loans. At Intellichoice, we can do as much as 75% loan to value ratio (LVR) for licensed or permitted Owner builders. You will need to show some experience in project managing a build or have someone with a background in the construction industry providing support. Attempting to build a house can be very complex and is not something to be undertaken lightly. Most lenders, including the major banks, have ceased receiving applications for Owner Builder Home Loans. Intellichoice has specialised in providing loans for owner builders for the past 16 years and still has a range of lenders that can help secure your building loan Australia wide. Get better interest rates and deals through one of our trusted lenders. Provide the requirements and documents mentioned above to be able to proceed with your application. It would be ideal to have the construction cost ready or the loan amount you have in mind. It will be ideal to proceed with your loan application with an experienced owner builder home loan specialist to be able to fully understand the terms and condition included in your mortgage application. Why Have Banks Stopped Entertaining Owner Builder Loans? Banks have ceased receiving applications for Owner Builder Construction Loans for quite some time due to the risk involved in the process. There are instances during the construction wherein people involved in the project change plans, go over budget or for some, they were unable to complete the construction right after a progress payment. This became too much to handle for banks, thus declining most owner build loan applications. Licensed builders who have more experience in handling and delivering a construction project can be considered as lower-risk compared to owner builders. Intellichoice caters such clients as well. We have Low Doc Construction Loans available for those who fall under this circumstance. You can also work with a licensed builder to proceed with your owner build. However, don’t start with your build project without sitting down with your contractor and your mortgage broker. Fill in the gaps of details you would want to address on your project prior to proceeding with the loan application, much more with the actual construction. Be careful when dealing with contractors. Ensure that you are indeed dealing with a licensed dealer through the suggested tips from this post. What is a Low Doc Construction Loan? For licensed builders who are seeking to develop a property or construct a home of their own, it would be ideal to apply for a Low Doc Construction Loan. Unlike other mortgage applications, you do not have to provide proofs of income when applying for a Low Doc Owner Builder Loans. Learn more about Low Doc Construction Loans by visiting this link or talking to an Intellichoice mortgage broker today.

Perfect Timing: Apply for a Car Refinance with Bad Credit?
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Perfect Timing: Apply for a Car Refinance with Bad Credit?

ByDarin Hindmarsh

Are you having a hard time repaying your car loan, or would you simply want to trade or finance a new unit? You can simply refinance a car loan to be able to get a new car or to get a more favorable interest rate and feature for your loan. But what if you suffer from bad credit? This article may help. There are options available for you to refinance a car loan even with bad credit. There are certain lenders that facilitate clients who would want to refinance an auto loan. Why Do You Need to Refinance a Car Loan? Avail lower interest rates The current interest rate that you may have been paying for with your current car loan may not be higher than the prevailing interest rates in the market. If you would want to save a few hundred dollars on current monthly payments, a refinance might be a good idea. Lower monthly payments Lower interest rates help in reducing your monthly repayments. Although, it is important to check if there are fees including in terminating your car loan early and then reverting to a refinance. A car loan specialist from Intellichoice Finance can help you understand more about the process and which option would be favorable to you financially. Trade your car to a new make or model If you are planning to upgrade your current vehicle to a new model or a different brand, a car refinance would be ideal for you. It is advisable to apply for a car refinance, earlier than sooner if you would want to upgrade to a more high-end vehicle so the value of your current automobile would be higher. The longer you hold of your car refinancing the less the value of your current vehicle will be. What to Do When Applying for a Car Refinance with Bad Credit Review your credit file and credit score Your credit score and credit file still matter even when applying for a bad credit car loan. Non-conforming lenders will check how you came about such status on your credit file. Unlike regular banks and lenders, non-conforming lenders believe in second chances and will help you secure financing despite your credit history. A bad credit rating is not the end of your application. Understanding how you arrive at such circumstance is a priority for most lenders. Coordinate with a car loan specialist A car loan specialist can help you understand your financial circumstance and if you can qualify for a bad credit car loan. What’s good with asking help from a loan specialist is that no inquiry is posted on your credit file. If you failed to qualify during the assessment of your requirements for a bad credit car refinance, it will not appear on your credit file and will not do any further damage on your credit score. Compile a list of possible options for car finance There are literally hundreds of possible banks and lenders you can apply for a bad credit car loan. You can save thousands if you find a loan suitable to your needs. You can compile a set of free quotes you can obtain online to be able to compare. If you aid the use of a car loan specialist, you can ask them to compile a list of possible options for you, together with each’s advantages and disadvantages. If you would really want to fully understand the options available for you, a loan specialist would be ideal to make the process of comparing easier. Improve your credit score It would be ideal to wait for items in your credit report to be removed prior to applying for a bad credit car refinance. However, you should be smart in choosing which items to be removed. Accounts that have been paid regularly and in full would be a good credit history your credit file could boast for. Keep the good accounts and try to remove the ones that are indeed bad for your credit history. Waiting for a bankruptcy to be removed for a month or so would be favorable for your refinance application. Get rid of outstanding debts to increase your chances too. Qualifying for a car refinance with bad credit score would also be beneficial for your credit history if you religiously pay for your loan on time. Why Consider Applying for a Car Refinance? Financing a car refinance with bad credit may be challenging for people with bad credit but is not impossible. The main key to increasing your chances for approval is improving your credit score. The application process may take time but every step is essential. It would also be ideal to refinance a loan if the interest rates for car loans have dropped – meaning a lower monthly payment to pay for. Watch out for hidden fees and the possibility of a longer term on your refinance. There is no specific time frame necessary to apply for a car refinance with bad credit. Take your time comparing to be able to arrive with the best possible result and circumstance for your financial situation.

No Doc Home Loans Australia: How to Apply and Qualify
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No Doc Home Loans Australia: How to Apply and Qualify

ByDarin Hindmarsh

Getting a mortgage in Australia for individuals with undocumented income can sometimes be difficult. If you are working as a freelancer, a contractor, handling a small business, a self-investor or self-employed, securing loans and financing follows a different process compared to employed people with regular incomes. In Australia, there are low doc construction loans available for business owners and entrepreneurs that can provide tax returns and business registrations as qualifications for applying for a mortgage or a financing. However, what can you do if you do not have any income evidence or documentation to provide to your bank or lender as requirements for a mortgage application? A no doc home loan application is the solution available for your circumstances. How to Get a Mortgage Without Documented Income in Australia? Loan Amount: How Much Can I Borrow with Undocumented Income Unlike regular mortgages where you can borrow up to 95% of the property value, an undocumented income will only get you as much as 65% loan to value ratio with a 2-3% higher interest rate compared to banks and other lenders. Short term caveat loans an get you as much as 80% of the property value, but with interest rates starting at 24% per year. Loan terms are also shorter with undocumented income, compared to mortgages offered to an employed borrower. Regular home loan repayment terms can go as long as 30 years. Loan terms for mortgages without documented income, in Australia, is only up to 3 years interest only. In most cases, the maximum amount per borrower is $1,000,000. How to Qualify for a No Doc Home Loan Generally, a bank or even non-conforming lenders will ask you to provide income proofs. These may include tax returns, bank statements, a letter from your accountant, business activity statements BAS, and other financial documents to verify your income. You will not be required to facilitate such in a No Doc Home Loans. Worried about a credit card debt or any other black marks on your credit file? This will be overlooked by your potential lender in a no doc mortgage loan application. Most lenders will ask you to sign a declaration. This contains your affirmation that you are indeed capable of repaying a loan with the interest and conditions stated in your loan documentation. They will sometimes ask for a signed statement of assets and liabilities from your end. This credit product requires such since it is not supported by financial documents related to your income source. The purpose of your loan also matters. It should not be used for securing a commercial property or for any other business purposes. It should not be an investment that will later be used in a business. Such loans are exclusively for personal and residential purposes and should be signed under your name and not a business. These conditions meet the standards of an NCCP unregulated loan. Lenders are breaking the law if they fail to check the source of income of their clients. Thus, requiring you to sign the declarations mentioned above. This type of mortgage is secured by the property that will be purchased. Even if a lender will not require you any income proof, the property you are purchasing should meet a specific set of standards to qualify. Home Loan Package Options With a significant change in interest rate due to lack of income proof to support your capacity to repay a loan, you are still qualified for loan packages such as Say No to Private No Doc Lenders You can also avail no doc mortgage loans from private lenders. However, it will cost you more compared with a loan from a bank or through a non-conforming lender. Private lenders are much more expensive in Australia. Some charges 2% to 6% more than regular lenders, that’s a lot of savings to consider. Mortgage brokers will also charge you a fee since this private lenders do not offer commissions to them. That’s another item to top your bill. Weigh your options and compute for extra charges that may come into your way. How Can I Avail a No Doc Home Loan? No Doc Home Loans are hard to get by. Only a few banks and lenders offer such mortgage applications. Do not worry because our mortgage brokers got you covered here in Intellichoice. We can find you the right lender that fits your circumstance best. The application process also takes less time and stress with our loan specialists as your guide. Doc loans? we can help you with that as well. Give us a call on 1300 55 10 45 or complete our Home Loan Application Form and we’ll help you secure the loan you need, with the best possible interest rates and offers. Why wait 12 months to get the income documents that you need. Contact us today to begin your application. Interested in taking out a Low Document Construction Loan? Get details from this post – Low Doc Construction Home Loans Step by Step Guide for Application

How Easy Is It to Access A Car Loan in Australia?

How Easy Is It to Access A Car Loan in Australia?

ByDarin Hindmarsh

A car loan is your access to your dream car if you do not have enough cash to finance it. You can either save for a huge deposit to enjoy a low monthly payment. Bad credit car loans are also made available for people with bad credit who would want to finance a car purchase. You pick a color that you want, a make and model that can meet your needs in terms of transportation. Some even plan on where to go first after your car is released. However, what most people fail to foresee is if they are qualified for car financing and if they are indeed capable of repaying it. The price of the car is not the only thing that you should be worried about. There are other costs that come with your purchase. You’ll also need to cover expenses such as stamp duty costs, insurance, chattel mortgage as well as maintenance and servicing costs that come with your purchase. But, beyond that, the main question for you would be how easy or hard it is to access an Aussie car loan. Car Loan Options Available for Australians Car Loan A car loan is usually offered by banks, a car dealership or standalone lenders. With this type of loan, your credit score will most likely dictate the interest rate and loan repayment terms offered to you. A higher credit score gives you access to better deals and low-interest rates. Such loans are available both for new and for old vehicles. Secured Car Loan A secured car loan is a car loan that requires assets, other than the vehicle purchased to secure the loan. These may include equity in a property, boats or even motorbikes that serves as collateral for a loan. Some banks may suggest you opt for such loan options if your credit score is not within their favorable limits. Bad Credit Car Loans Bad credit car loans are for people with black marks on their credit file. Some Aussies may have experienced a trying time in their finances once or twice in their life. Such personal finance issues can be reflected on their credit report. It stays there even after resolving such issues. Debts and other accounts can stay in your credit report for at least 7 years and may affect your chances of getting a loan or financing from a bank. With bad credit car loans, these criteria are being overlooked. Your credit report is still reviewed but a non-conforming lender goes beyond understanding the reason behind such black marks on your credit. Although these type of car loans offers higher interest, this is a great opportunity to give people with bad credit the opportunity to finance their own vehicles. Compare and choose a car financing option that fits your situation. You can even ask help from a loan specialist to be able to fully understand your financial circumstance and find a suitable loan type and lender for you. Intellichoice Finance can help you achieve such. The Car Loan Application Process Banks and lenders will have a different set of requirements for their car loan applications. A non-conforming lender may also have the same requirements as a bank but will require additional information and documents to fully understand a loan option that can work perfectly for your finances. It would be best to have several options on your plate to find what’s the best car loan option for you. A car loan specialist can do this for you, without having inquiries on your credit file. If you would want to do a comparison on your end, you can ask for free quotations from different car loan lenders online to be able to see the different options available for you. It would be ideal to use free quotes or get help from loan specialists and brokers instead of transacting directly with a bank. Every inquiry on your car loan will appear on your credit file with a direct bank application. A rejected application will also appear on your report if you fail to qualify and would hard your credit score in the process. How to Effectively Compare Car Loan Rates and Payment Terms After gathering options on where you can possibly apply for a car loan, you should check these different areas as your benchmark in deciding on which car loan suits your needs and payment capacities the most. Additional fees and charges Some banks and lenders charge additional fees in processing your car financing application. You should be aware of these charges and fees at the very beginning of your application. Some of these fees may include upfront fees, applications fees, monthly accounting-keeping fees, lump sum payments, and other annual fees. These may also include a balloon payment on your end or an early repayment fee. Closing your account may also require you a closing fee. Again, these fees vary from one lender to another. Every financial product varies in terms of additional charges and fees to include on your budget. Always take note of this and add them to your computations to get a better idea of what you are to pay for after you buy a car. Interest rates You can either avail fixed interest rates or varying interest rates on your car loan. A fixed rate is the same all throughout the term of your car loan. Variable rate loans adapt the current interest rates in the market. Although you can enjoy a lower interest rate when the current market is good, the risk of a higher interest rate is still there as the market continuously changes. Create a comparison rate chart together with the fees and charges of every bank or lender you intend to apply a car loan for. Loan amounts, its minimum and maximum, should also be included in your comparison chart. Loan flexibility Some loan allows you to pay extra or in advance and get a discount for doing such. Paying early on your monthly payments can also give you rebates or discounts. Be sure to be aware of these features included in your loan so you can take advantage of it. The possibility of a refinance should also be taken into consideration, if you intend to get a new car after a few years or if you simply want to reconstruct your loan in the future. Check if you can revert from a fixed rate loan to a variable loan, or vice versa, in the event that you need to do so. Shortening a loan term or to loan early for a refinance are also considerations you should check to see how flexible a car loan offer is. Knowing your options and keenly comparing the loan options available for you makes the task of securing a car loan a successful one. This is a general advice you should follow. Car loans usually take 3-5 years to repay so this will affect your personal finances due to monthly repayment in the next three years or so. Read the terms and conditions of your car loan application. Just like when you were applying for a credit card, each bank product comes with a different set of “rules and regulations” that you are required to abide by when you sign a contract with them. Knowledge makes is easy and accessible to apply for car financing. This knowledge and professional help from car loan specialists ensures you of a guaranteed loan approval and a manageable repayment on your end.

5 Steps in Repairing Bad Credit for Guaranteed Bad Credit Car Loans Approval
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5 Steps in Repairing Bad Credit for Guaranteed Bad Credit Car Loans Approval

ByDarin Hindmarsh

A bad credit file can haunt you for years and may make it hard for you to secure a mortgage or get a car financing. Although there are loans available for people with bad credit, a better credit score gives you access to better deals, interest rates and features when applying for a loan. The good thing is, a bad credit score is not forever. You can improve your credit score as well as your financial situation in so many ways. 5 Steps in Improving Your Credit Score Fast Keep your card balances low The very basic tip you can follow in improving your credit score fast is by paying your credit card balances. The less debt you have, the better your credit standing will be. If possible, pay your credit card balances in full or twice or thrice the minimum required payment every month. A high outstanding debt can greatly affect your credit score. Bad credit histories and bad credit rating are mostly associated with credit card balances. Securing a car even though a car loan with bad credit can be quite difficult with too much credit card balances on your plate. Pay bills on time Although it is a must to pay a bill on time, some people still fail to do so. Whether its lack of finances or simply forgetfulness, not paying your bills on time reflects on your credit file. With the Comprehensive Credit Reporting rolling, paying bills on time can do a lot of good on your credit file. What can the Comprehensive Credit Reporting do for your finances? It simply includes the positive notes on your personal finances – such as paying bills on time – which in turn balances whatever negative marks you have on your credit report. Taking out car financing is possible even with a low credit score through bad credit car loans. If you are approved for a bad credit loan and you religiously pay for it on time, it will affect your credit score positively. If you want better finance options, finance applicants should clear out or at least keep their credit card balances on a minimum before thinking of applying for a mortgage or a bad credit car finance. Keep good debt accounts on your credit report It is not a good idea to remove old accounts and debt on your credit report. Most of them usually take 7 years before they are removed from your credit report. However, you might want to keep the debts that were paid on time and handled well on your file. To be able to increase your credit score, you need to have a deep, good credit history to vouch for your creditworthiness. A good credit score gives you a competitive rate when applying for personal loans from reputable lenders and finance brokers. Your loan approval will have better chances if you have a long list of credit – good credit history – under your belt. Keep loan applications in check Applying for credit and taking out a loan will reflect on your credit report. A failed loan or credit application will be recorded on your credit file as well. Multiple attempts to apply for a credit or to take out a financing, say a car finance or a mortgage, and failing in the process will also appear on your file and will affect your credit score negatively. This is the reason why it is important to seek advice or help from a loan specialist when applying for a mortgage or taking out a loan. They can check if you are qualified for a financing or a home loan without an inquiry appears on your credit file. A loan specialist can also give you tips on areas on your personal finance that you can change to be able to improve your credit score and better your chances in taking out a mortgage or financing. In Intellichoice Finance, we seek to help people with good and bad credit alike. However, those who have bad credit to worry about, we can provide non-conforming loans with the best possible rates and repayment terms – despite issues on your credit score. Another advantage would be our genuine care towards the soundness of our clients’ personal finances. If you do not qualify for a loan at present, we can guide you and give tips on how to improve your situation and get better chances for approval in the future. Ask help in reviewing your credit report If you would want to improve your credit score that badly, trying too much, on your own might not help. You might want to speak to a financial adviser or to a loan specialist should you seek a loan to be able to understand your credit file and credit score – and do something about it. They have more experience, training, and the right knowledge in giving you a clear picture of where your personal finances are. A good credit score is just a number. However, a sound personal finance makes life better and easier for you. Follow these tips and build your credit score – if not fast, but steadily and surely, this time around.

Why Do You Need to Hire a Bad Credit Home Loan Broker?
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Why Do You Need to Hire a Bad Credit Home Loan Broker?

ByDarin Hindmarsh

Hiring a bad credit home loan broker is both beneficial for first-time home buyers and seasoned real estate investors. The experience, connections, and influence a home loan broker have is an asset and advantage for anyone interested in buying real estate. Advantages of Hiring a Bad Credit Home Loan Broker 1. It saves you time and resources Unless you are an experienced home loan broker yourself, it would take you a lot of time reading and understanding how real estate buying and selling works. The experience and the resources that a licensed home broker have is something you could not achieve in a few hours of reading or attending seminars. 2. They simplify real estate processes for you A bad credit home loan broker can explain the processes and jargons of the real estate industry in a level that is convenient for you to comprehend. First time home buyers may find it difficult to understand real estate jargons and terminologies making it harder to fulfill requirements needed for a loan application. A mortgage broker helps you understand what a particular loan offers as well as the features and responsibilities that come with repaying this loan upon approval. Talk to a mortgage broker that you are comfortable with when it comes to asking the question to make the home-buying experience enlightening for you. 3. Your best interest is prioritized A bad credit mortgage broker will always look for the fastest approval, lowest down payment, best interest rates and all loan criteria favorable to your financial situation. Unlike what most people think, mortgage brokers will not take advantage of you. In fact, some banks and lenders provide lower brokerage fees for loan specialists who have failed to provide a loan suited for the client’s needs and capacity to pay. 4. Easy loan comparison As mentioned earlier, mortgage brokers will choose the best option for you, especially with a bad mark on your credit report to consider. As soon as you talk to a home loan broker, they will immediately coordinate with multiple banks and lenders to find the best offer that suits your needs. This would save you time from comparing interest rates from several lenders and banks you have in mind. 5. Better features and deals Interest rates are not the only thing you have to investigate when it comes to picking a mortgage of your choice. There are many other features, deals, and fees that you should add into consideration when taking out a home loan. Failure to do so may leave you unprepared for monthly fees and one-time payments. You might also miss features, benefits, and discounts that you could have got access to if you just opted to have a loan broker, instead of directly coordinating with a bank or lender. 6. Pre-qualification You do not have to worry about applying for a pre-approval. Your mortgage broker will do that for you. Another positive impact on hiring a loan broker instead of directly applying with a bank is that inquiries on your credit report become minimal. Whenever you apply for a home loan, inquiries will be added to your credit report. Failed loan applications will further add black marks on your credit file. You can avoid this with a mortgage broker. A broker will let you know if your chances of getting a bad credit mortgage are higher or not. They can also advise you on what areas to improve your finances to be able to increase chances of approval the next time you apply for a mortgage. 7. A bad credit home loan broker values your best interest Here in Intellichoice Finance, we believe in second chances. One of our main goals as a company is to help people with bad credit histories secure loans and get better credit scores as they repay their bad credit loans. Hiring a bad credit home loan broker gets gives you the best options feasible for you. If you are interested in knowing whether you are qualified for a bad credit mortgage, call out hotline at 1300 55 10 45 to talk to a home broker today.

Get Car Financing with A Low Credit Score in 2025
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Get Car Financing with A Low Credit Score in 2025

ByDarin Hindmarsh

Can you get car financing even with bad credit and low credit score? Not all bad credit car loans are “bad”. You can still get a decent interest rate and a budget-friendly monthly even with a low credit score or a “scar” on your credit file. Here are some tips you can follow to be able to get a favorable car financing rate, this 2025, even with low credit score: Understand your credit report Your credit file tells a lot about your financial history. With the Comprehensive Credit Reporting on the roll, banks and lenders will not only see the black marks on your file. They will also have access to the positive side of your finances such as your timely bill payments, on-time accounts and such. It is also important to understand how long “black marks” stay on your file. If a bankruptcy or a due account is about to be removed from your file. It would be advisable to wait until these items clear out before you apply for a loan or car financing. Talk to a loan specialist Prior to most beliefs, it would be advisable to seek advice from a loan specialist if you are interested in applying for a bad credit car loan. These experts can easily access your current financial situation and give you an idea if you are qualified for a loan or not. The good thing is that their initial assessment will not be reflected on your credit file. Compared to banks, an inquiry on your credit file, due to a loan application will reflect on your credit file, most especially during failed applications. You are saved from another mark on your credit report through a review from a loan specialist. Get more options The more options you have, the better the chances in landing on a favorable car loan interest rate for you. You do not necessarily have to ask for an assessment that may appear as an enquiry on your file. You can simply ask for free quotes or get free quotes online to gather more options. Check for older vehicles as options Older models are less pricey than newer ones. A more affordable tag price means a lower car financing to worry about. A lower loan amount could also give you access to instant approval or better loan terms. If you can find an older vehicle model that suits your needs, you might want to do a PROs and CONs comparison to see if an older model would be a better option than a new one. Apply for a shorter loan repayment period A shorter loan period is a good note for any lender.  It reduces the risk of a client that may potentially default on payments. Interest rates are lower, and the total interest incurred by your loan will also be lower. You might also want to consider saving for a higher deposit to be able to achieve a lower monthly amortization. Your bad credit history is not a hindrance to secure car financing. Proving your credit-worthiness does not end with your credit score. With better options, helpful advice from experts and access to options, you can get secure a bad credit car loan with the best possible rates and payment terms for you.

What Is Needed to Apply for A Business Loan
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What Is Needed to Apply for A Business Loan

ByDarin Hindmarsh

Applying for a business loan can help both starting and growing businesses. It can help you acquire a new equipment for the business, increase supply or to improve your business cash flow. However, there are requirements on applying for a business loan. Banks and lenders also set standards as to how much a business owner can loan, depending on the assets that the business has as well as the capacity of the business to repay a loan. Who Qualifies for a Business Loan? To be able to qualify for a business loan, you should be able to satisfy the following criteria: 1. Financial statements including balance sheets, tax returns, as well as profit and loss statements. Your business’s historical information is important in determining whether you can afford to repay a business loan. 2. Details of the asset that you will use to secure your business loan. Generally, you can get as much as 80% of the residential asset that you will use to secure your loan. Sixty-five percent for commercial properties and 70% for rural properties. 3. Your business score should be more than 600 to be able to qualify for a business loan. This can be a personal credit score, or if you are already in business, your business credit score can be submitted. 4. Proof of individual incomes, bank statements, identifications and a few other details about the finances of your business. Your annual revenues are also important factors that determine how much business loan you can afford to pay. A business is required to have $50,000-$150,000 in revenues to be able to qualify for a loan. 5. Start-up businesses that do not have more than a year of historical data can submit a detailed business plan with accurate profit and loss predictions as documentation for your application. 6. Buying an existing business will require you to submit 2 years of historical data of that business, a business plan, and a profit and loss statement. Increase Your Chances of Getting a Business Loan Approved There are ways of increasing your chances of getting a loan application approved. You can also secure better deals and interest rates if you follow the tips below. 1. Be honest about where you need the loan for Inform your loan specialist or bank about the exact purpose of your loan. You will likely get a suitable deal that suits the need that you need to finance for your business. 2. Identify how much you really need Calculate how much you really need and how much you can afford to borrow. Set a minimum and maximum loan amount target. You can narrow down the lenders that can accommodate a loan within your needs. Working with a loan specialist or broker can make this task easier for you. They will help you locate a bank or lender that suits your needs. 3. Revisit your credit report Your credit report plays a big role in securing a favorable business loan on your end. Check for items in your file that are already closed and can be removed from your report. Get the most updated report if possible to increase your chances of approval. 4. Get your financial documents in order If you can afford to, have an accountant prepare your financial documents for a loan application. You can also ask help from your loan specialist to complete your documents. Make sure that all information is correct and up to date. 5. Take the advice of your loan specialist Your broker is there to help you from the very beginning of your intent to apply for a business loan up until you secure the final documents for your loan approval. Asking for the assistance of a loan specialist can also ensure that your type of business loan is fit and workable for your businesses’ finances. Knowledge can help you enjoy a pleasurable experience when securing a loan for your business. Be sure to follow these tips or better yet, get professional help from our Intellichoice brokers.

How to Become and Owner Builder in Australia
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How to Become and Owner Builder in Australia

ByDarin Hindmarsh

Building your dream home in a land that you enjoy the view and adore the neighborhood is a vision we all would want to achieve. However, for the risk-takers and courageous, it is indeed possible to build your envisioned home in a property of your choosing, through owner-building. Buying a property and constructing your home is easy to say, but harder to fulfill especially if you lack finances and experience. There are owner builder home loans available for Aussies who would want to take the path of owner-building their homes. But that does not end there. There are many other things to consider when owner building your home. One aspect to consider is that you will be doing the bulk of the work if you choose this path in building your dream home. Buying a Property and Building a Home There are savings that come with going for a DIY when it comes to owner-building your home. However, savings should not only be the consideration. Quality and timely work also play a big role in the success of your owner-built. The first thing to consider is buying your property and planning your home. For a land and home package, you will need to apply for a construction loan to finance your purchase. You will also be dealing with a developer as well as the builder if you prefer getting one instead of owner-building. The advantage over this option is that you will be dealing with an experienced builder. Most builders will have insurance and you will not have to worry about possible issues that may arise during the construction. Payments will also be released in drawdowns or after every milestone of the construction. Thus, you are guaranteed that your home is being built and within acceptable standards as the bank or lender may see fit. Working with a Registered Builder Even without owner-building your home, you can still achieve the dream home design that you want by working closely with your builder. Your builder will facilitate the plans and will take care of the necessary permits to proceed with the construction. If you will owner build your home, these tasks are for you to fulfill.You just need to be sure that the builder you are working with is indeed registered. Our article “The Construction Route for Your Home: Is Your Builder Legit?” can help you personally identify if the builder you are talking with is legit or not. Going for Owner Building Building your home, hands-on, with you as the builder is a big responsibility especially for first-timers. The success of your project depends on many things, but most especially with your skills and experience as a builder and project manager. Securing an owner builder home loan can also be a challenge for first time owner builders. Banks and lenders will measure the risks involved in lending money to an inexperienced builder. You will do most of the work, both paperwork and physical work when you decide to take this construction route. It would be advisable to inform or ask your lender or your loan specialist if you would want to take this route in building your dream home. They can guide you effectively in the proceed of securing a home loan for your condition.

Are Personal Loans Good or Bad Debt?
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Are Personal Loans Good or Bad Debt?

ByDarin Hindmarsh

Managing personal finances can be difficult with the increasing prices of commodities to worry about and your constant source of income. Creating a balance among your daily expenses, utilities and other aspects of your life can be quite challenging. For most people, a financial difficulty can be easily resolved by resorting to short-term personal loans. According to studies, 1 out of 10 Australians would resort to a personal loan to be able to fund an emergency, top of payments for utilities, fund a vacation or buy a gadget. Instead of funding these emergencies, bills and wants with cash, most Aussies would go for a short-term loan, instead of cashing out their savings. Surprisingly, the average Aussie has around 3,000 in savings, making it harder to funds other big expenses like medication, parties or other unexpected life events.Several short-termed loans on your credit file can be quite bad on your personal finances. Being in a bad credit situation can bring you to worse if you continue to practice borrowing money to fund commodities. Personal loans can build up and become harder to repay as interest accumulates. The bottom line is – personal loans are not always the wisest solution for your urgent financial needs. Bad Debt or Good Debt? Personal loans can be both good and bad for your finances, depending on your circumstances and how you use your loans. A good debt can allow you to grow your loan into something you can add to your income source. Bad debts are debts that are consumed and were not converted into income. Personal Loans as Bad Debt Personal loans can be considered as bad debt when they are used to pay another debt. Some people would instantly resort to a short-term loan to pay for phone bills, electrical bills and other utility bills. Setting aside an amount to pay for these from your salary instead of getting a loan to pay such items. There is also a repayment option offered by utility companies. Check if their interest rates and payment terms are more favorable than that of a personal loan. Personal loans can be considered as bad debt when they are used to satisfy a need for a commodity. Such examples would be for paying an overdue bill, purchasing a boat, or going on a vacation. Anything that you can’t afford to pay for now will be harder to afford in the future if you have accumulated interest rates and principles to worry about in the future. If you are planning to buy a home, it would be difficult to secure a desirable interest rate and loan terms with a low credit score. Your credit score will eventually suffer if you continue to pile up personal loans without increasing your income source. Personal Loans as Good Debt Good debt is used to generate more income. A personal loan used as additional funds to sponsor an event that can expand your network or meet new prospective clients is considered as good debt. Another good use of a personal loan is using it to renovate a home. Renovation increases the value of a home. If you’ll spend a personal loan to improve a property that is intended to be sold afterward, you increase the value of that property and pays for the personal loan that you took, plus the interest and the rate of return from it. It would be advisable to take out a loan from a friend or a microfinance with a minimal or no interest. Or as the saying goes, do not buy something you cannot afford. The consequences can be a few calls from your lender or worst, a credit file so bad you won’t even qualify for bad credit home loans.

When is the Right Time to Apply for a Home Loan?
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When is the Right Time to Apply for a Home Loan?

ByDarin Hindmarsh

Everybody dreams of having their own home. However, being able to afford one is a challenge for many, even for the above average Aussie employee. Getting a home loan is the most common avenue that people resort to, to be able to afford to buy a home. There are many types of home loans available for Australians of all economic status. Even people with bad credit can avail a home loan, through non-conforming lenders that entertain bad credit home loan applications. With so many options available for home financing, is there a right time to avail a home loan? Will a planned or perfectly timed application increase the chances of getting approved or in securing better rates and loan terms? Timing is Everything When Applying for Mortgage There exists a mortgage business cycle that is common for almost all lending services. The first weeks of the months is usually spent in finding a client, documents from these clients are then processed up until the early half of the month. The last weeks of the month are dedicated in closing as many possible deals or loan applications since most lending services are aiming to reach a certain quota for their monthly performances. So, which is the right time to file for a mortgage application, with this schedule as your guide? Considering the enthusiasm that loan brokers have during the start of the month, it would be ideal to file for an application during the first few days of the month. Loan applications are reviewed faster, and your phone calls are even returned promptly during the first few weeks of the month. But how will you know if it is the right time for YOU to apply for a mortgage? Get 5 out of 7 checks in this list to consider yourself ready to apply for a home loan. 1. A Better Credit Score Although you can always apply for a bad credit home loan, a better credit score can do wonders on your loan interest and loan terms. The better your credit standing is, the less risk you are as a client, thus giving you favorable interest terms that can help you save in interests throughout your loan repayment period. You can always improve your credit score by paying your bills monthly, eliminating debt and removing negative marks on your credit score. 2. Stable Source of Income A stable source of income gives you the assurance that you have resources available to repay a loan. Although most loan applications do not require a minimum tenure on your current employment, a regular source of income keeps hesitations on your application at bay. 3. Home Rates Are Continuously Increasing If the current interest rates in home loans in the real estate market are increasing in trend, it would be ideal to secure a home loan now and later. You might want to seize the opportunity of getting a fixed rate home loan at present to protect you from future increases in interest rates in the coming years. It is also ideal to apply for a mortgage when the market’s trend is going down as well. You can secure a variable interest rate home loan for this type of trend to be able to save in interest rates as home loan rates go own parallel with the current trend of the real estate market. 4. Saved 20% for Down Payment There are 95%LVR loans that allow you to enjoy a small deposit to secure a mortgage. However, a small deposit is equivalent to a higher interest rate. Securing 20% of the property value as down payment for your home or property purchase helps you enjoy lower interest rates. Saving more than 20% of the valuation of your property gives you better interest rates too. In the process, you’ll be able to pay off your loan faster with a low amount of interest to worry about, with the aid of a higher deposit. 5. Ready to Purchase a Home It would be ideal to get a mortgage prior to purchasing a home to be able to have an edge over the other people interested in the property you are eyeing on. Some people fail to buy the home of their dreams because they failed to apply for their mortgage early. If you are ready to buy a home, together with all the paper works and personal efforts that go with it, it would be better to apply for a mortgage the soonest possible time. 6. Dual Income with No Kids Having two merged incomes and no kids gives you the maximum amount available to purchase a home or repay a mortgage. It would be ideal to invest in a home, prior to having kids due to the extra expenses that come with parenthood. 7. After Talking to a Loan Specialists A loan specialist can give you expertise in deciding whether it is time for you to apply for a mortgage and purchase a home or not. They are up to date with the market changes, informed with the current trends, connected with the right people, banks and lenders that may affect your mortgage application, and honestly willing to help you access your circumstances vs your capacity to repay a mortgage. It would be ideal to get advice from this people not only to increase your chances of getting a mortgage approved. They will also help you understand if it is really the perfect time for you to apply for a home loan. Are you currently in the same situation mentioned above? If your answer is YES, Intellichoice can help you take the first step in securing your dream home through a mortgage. Call 1300 55 10 45 to talk to an expert Intellichoice broker today.

Cheap Car Loans: How Affordable Are They?
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Cheap Car Loans: How Affordable Are They?

ByDarin Hindmarsh

The interest rate is a significant factor of any type of loan. This establishes the amount you have to pay back versus the amount you want to borrow. Lower interest rates mean lower monthly payments. So your goal when looking for cheap car loans is to find the right lender that offers the lowest interest rate possible which your budget can afford. How much do cheap car loans really cost? An advertised car loan offering the lowest interest rate doesn’t automatically mean that these are cheap loans. The advertised interest rate doesn’t sum up the total monthly repayments of the loan. It is also best to note that cheap interest rates are available only to those who have good to excellent credit records. So what should you really look at to consider a loan cheap? 5 Considerations to Conclude a Car Loan as Affordable 1. Loan Rates Find the lowest interest rate possible in the market. It is a good idea to compare interest rates across several lenders. You can accomplish this by using a comparison website which is accessible across the internet. 2. Loan Terms The shorter the better. A longer term for the loan means a higher total cost of payments in interest rates. So it is always a good idea to opt for a shorter term for the loan. 3. Loan Amount The lower the better. A higher loan amount means higher monthly repayments and higher cost of interest payments too. 4. Fees and Charges Cheap car loans include a few fees, however, this differs depending on the lender of your choice. Fees may include origination fees (cost to set up your loan), monthly ongoing fees, early payment fees, additional repayment fees, and late payment fees. Compare and determine whether this car loan is advantageous for you. 5. Check your affordability Use a car loan repayment calculator to compute your estimated monthly repayment. To know if you are able to afford this, compare it to your monthly income after all mandatory expenses. Is there enough to cover repayments? Is there something enough for other emergency expenditures within your household? Is there enough for savings? You know you are able to afford a car loan if your income can cover the loan, mandatory expenses, and there’s still enough to allow you to live comfortably. So If you are in the market looking for cheap car loans, look for the lowest interest rate possible. Use a car loan repayment calculator to make necessary computations on how much you are going to pay on monthly repayments. Then you decide if your budget can afford it. It is always good to compare figures across several lenders. For instance: XYZ lender offers $150,000 loan for 3 years with an interest rate of 5% per annum is $4169.88. ABC lender offers $150,000 loan for 3 years with an interest rate of 7% per annum is $4171.16. Note that XYZ lender shows a lower repayment because they offer a lower interest rate. However, this may not be the end of the computation yet because you will want to consider fees and other charges. Choosing the Cheapest Loan Suited for You The key to getting a cheap car loan is definitely in getting an affordable car loan that meets your needs. While a remarkably low-interest rate appears excellent, if it is tied to a very short term you can expect to pay higher payments. In the same manner, the low-interest rate with longer terms will tie you to pay a higher total interest payment. So depending on your affordability, choose an affordable car loan that meets your real financial position. Talk to a trusted loan consultant to help match you to an affordable and cheap car loan.

How to Get a Competitive Rate for Your Car Loan Application
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How to Get a Competitive Rate for Your Car Loan Application

ByDarin Hindmarsh

When you are considering getting a car loan, you might as well get the lowest interest rate that works for you. Before filing your car loan application, consider comparing interest rates from lenders around your area. Competitive interest rate car loans are offered by traditional banks, local credit unions, and dealership finance (brokers and car dealers). It is worth your time to compare car loans. Read further below to know what to compare and how to compare car loans to get the most competitive rate in the market. 3 Considerations When Comparing Interest Rates For Your Car Loan Application 1. Find the best loan offer To compare interest rates, you will have to find the best loan offer. An excellent car loan rate has several considerations – the Annual Percentage Rate, the term of the loan, the loan amount, extra fees (processing fees or application fees) and additional charges (ongoing monthly fees). All these factors will greatly impact a loan. The lower the APR, the better. The shorter the term of the loan, the lesser it will cost you on the loan. Gather all ideal car loan offers so that you can compare which one works best for you. You may want to consider banks, credit unions, car brokers and car dealerships. These are financial institutions known to provide low-interest rates. You can start your search through comparison sites online. They can provide you a list of lenders who offer the lowest interest rate possible, including other fees and charges. 2. Use a car loan calculator to compare your options When you have a list of potential lenders for your car loan application, it’s time to make a comparison. Use a car loan calculator to help you calculate the cost of the loan. Enter the information being asked for – the loan term, loan amount, and interest rate. Other car loan calculators will ask for other fees and charges. The result will provide you the total interest rate you have to pay on the life of the loan. So you can make a comparison which is feasible. 3. Fixed or Variable Rate Car Loans The fixed rate car loan could possibly be the most beneficial one for you. Fixed rate. Fixed rate financing doesn’t change over the life the loan, therefore, this makes it easier for you to budget your monthly payments as you know exactly what to pay monthly. There is no need to worry about outstanding balances to change if the market rates change over time. Variable rate. Variable rate financing moves as the prime rate moves. They call this the index rate. If the index rate moves up, your interest rate will also move up which increases your monthly repayment on the loan. In the same manner, when the index rate moves down, your interest rate also moves down which decreases monthly repayments too. Note that several car dealers would rather use a fixed rate on car loans. 5 ways to get a competitive rate on your car loan application 1. Present a good credit history Whenever you submit an application for funding via a loan provider, your enquiry shows up on your credit file. So long as you maintain your monthly payments your credit track record will not present any negative reports. With a good credit history, you are more likely to get better deals with the lowest interest rate possible. 2. Show proof of stable employment and income A stable employment record means that you are able to stay with one employer for a number of years. Ideally, you would have stayed with one employer for two full years. A stable employment would mean regular and stable income that allows you to make regular payments on your loan. Frequent change in employers creates a negative impression with the lender which impacts your car loan application. 3. Provide a deposit or down payment There are several lenders who are happy to lend the total purchase price for the car. Some lenders are even happy to lend for the fees associated with the car purchase. On the other hand, if you can possibly offer a deposit or a down payment for the loan, you can borrow a smaller amount of money which also reduces your monthly payment. Banks may even provide a lower interest rate based on the amount of down payment you offer. 4. Offer a security or opt for a secured loan Secured loans certainly are a competitive option if you want to make the most of higher loan amounts and a competitive interest rate. Offering a security against the loan helps you appear as less risk to loan providers. On the other hand, if have a very good credit history without any negative mark on your file, you may be able to get the same deal without offering a security. 5. Negotiate with your lender for a lower interest rate No matter which lender you choose to get a car loan, it is possible to negotiate to get a lower interest rate. You can also ask if the fees could possibly be waived. If you already made some shopping and made a price comparison, you know what other lenders are offering in interest rates and you may use this information to strengthen your deal. Lenders are willing to negotiate with you especially when you meet all their criteria. The best car financing is the one that can help you obtain the car you need with repayments you can afford. To locate this loan, you have to make sure the interest rate on the loan is competitive as well as the fees, loan terms, repayment flexibility, and features. Therefore, comparing car loans is very important. If you are still wondering where to look, you can contact any qualified car loan broker to help you find the best lender that will meet your needs.

Buying a Car With Bad Credit and No Money Down
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Buying a Car With Bad Credit and No Money Down

ByDarin Hindmarsh

Having a bad credit is bad news especially if you are trying to take out a car loan. Most banks would simply deny your application, even without explanation, the moment they see a negative mark on your credit file. Nonetheless, this doesn’t also mean you will have to settle for keeping your dream car at bay. With technology at the tip of our fingers, you can actually shop for the right financing that can work with your financial situation. Closing a car loan application has become an arms reach away. With new loan companies being established almost frequently, you can get a car loan that works with your particular situation. Their goal is to work side by side with consumers who have tarnished credit, to enable them to drive the car that meets their needs without settling for something less. 5 Things to Consider Before Buying A Car With Bad Credit There are a few things that you will have to consider before pursuing an auto loan with bad credit. 1. Your credit track record and amount of deposit directly impacts the interest rate associated with your auto loan. You can expect to have higher interest rates with bad credit auto loans. 2. The newly imposed Comprehensive Credit Reporting may improve your chances of getting better deals and interest for your car loan. However, it still depends on the positive items on your credit report. Even with bad credit car loan applications, a good review on your credit file will always be favorable for your application. 3. Longer loan terms. Note that lenders are willing to extend loan terms in order to meet the consumers paying needs. However, longer loan term means higher loan costs in interests and other associated fees. 4. Most lenders require a minimum income requirement though it varies from lender to lender. Also, your source of income should be regular and reliable. Make sure to check the borrower standards and criteria before submitting an application. 5. Bankruptcy cases. The majority of bad credit car loan companies necessitate bankruptcy cases to be released via the court prior to loan application. No Money Down Bad Credit Auto Loan – 5 Tips To Qualify No money down car loans is also known as zero down or no cash down cash loans. These loans are easily available to borrowers with good credit score. But there are loan companies who extend car loans with bad credit and no money down. These lenders understand that not all those who have bad credit can put up a down payment but can make monthly repayments for their loans. To qualify for a no money down loan, the borrower will have to provide proof of income to ensure that they are able to make payments. Below are some factors that lenders are looking at to consider you for a no money down auto loan. 1. Regular employment with proof of solid income. 2. Years of stay at your current residence. 3. Well maintained personal bank account with regular deposits 4. Small lines of credit under your name showing regular and on-time payments. 5. Up to date payments on bills and other utilities Lenders would like to see a regular and steady employment to make sure you can make regular payments. The Comprehensive Credit Reporting program will help you a lot in this area of your finances. Your years of stay in your current address shows that you can be trusted. This makes it easier for a lender to reach you in case of any default. A well maintained personal bank account shows lenders that you are able to manage your money and at the same time set aside some amount for savings. Smaller lines of credit indicate good paying habits.

My Bad Credit Home Loan is Rejected: What Do I Do Next?
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My Bad Credit Home Loan is Rejected: What Do I Do Next?

ByDarin Hindmarsh

Is your bad credit home loan denied? Don’t know what to do next? Start by knowing the reasons why you were denied, when can you reapply, and what steps to take to prevent rejection on your next application. This is true to any type of loan being applied for. Regardless if its a bad credit home loan, an auto loan, or a business loan. 4 Top Reasons For a Bad Credit Home Loan Denied Application Loan specialists are happy to accommodate your question. They can give an explanation and certain disclosures as to why your application was rejected. Unlike bank applications, you are sometimes left clueless on why your application is rejected. Loan specialists like Intellichoice Finance do not work that way. In the event that you failed to qualify for a loan, we are willing to help you understand your financial situation and give you tips how to improve your chances in securing a loan the next time you apply for one. Here are common reasons lenders reject a loan application 1. Bad credit or no credit. Most lending companies put a high regard on the borrower’s credit history in loan applications. They are looking for a strong credit and repayment history. If you have been denied for a bad credit home loan, there could be a chance that you have not met the lender’s criteria. Or have not seen an effort from you to improve your present credit score. 2. If your credit is the reason, your lender will send you a notice of adverse action. The notice will explain that your credit file was used in their decision to deny you of the loan for specific reasons such as defaulted loans or too many inquiries, and an explanation of your specific rights. Even so, you still have the chance to improve your credit. 3. Insufficient income. Lending companies would like to see that you can make the minimum repayments prior to approving your loan. Lending companies are mandated by law to make calculations in order to determine your ability to pay. 4. Debt to income ratio. Majority of lenders make use of debt to income ratio to gauge your ability to pay once loan had been granted. They compare your monthly earnings to your monthly debt repayments. If results seem like a new debt is not feasible, your loan is rejected. 3 Ways to Increase Your Chances of Securing a Home Loan 1. Evaluate yourself just as lenders will evaluate you. Fix any negative marks on your credit. Make sure your income is sufficient to support repayments on the loan. Take the advice of the loan specialist who initially evaluated your loan. Take notes on areas in your finances that you should be improving. 2. While checking your credit report, you may ask lenders what problems can arise from your credit standing. Lenders will be glad to discuss what can help and what doesn’t. They can also disclose to you when can you apply for a loan after unfavorable circumstances like bankruptcy and foreclosure. 3. If you choose to work with your local credit union or with an alternative specialized lender, you can speak to them directly to know what you need to do in order to qualify for your next loan application. Work with the guidelines below to help you fix your current finances and turn into a better candidate for a loan. Tips To Help You Regain A Healthy Credit Score If you found errors in your credit file, fix them promptly. Contact the credit bureau to let them know of an inaccurate information on your file. Note that you have the right to correct incorrect data on your credit and get it updated within just a few days. Having other debts when applying for a loan may have caused rejection of your loan. Pay off other debts to reduce monthly debt repayments. This improves the way lenders look at your financial status. 4 Strategies To Apply on Your Second Attempt in a Home Loan There are also strategies you can use that have an immediate effect on your credit score or may result in being approved for the loan: 1. Present a bigger down payment. Presenting a bigger down payment for a home or car loan can help you get an approval. A bigger deposit will mean borrowing less and therefore lower monthly repayments. With this approach, lenders will be assuming less risk with a lower loan to value ratio, thus, you have a higher probability of getting an approval even with poor or bad credit score. 2. Consider using a collateral. A loan application backed by a collateral has a higher probability of getting an approval. A collateral could be any of your assets that you present to the lender to secure the loan. However, you have to be aware that in case of non-payment, you can lose your collateral to the lender like repossess your car or foreclose your home. 3. Get a family member or a close and trusted friend as a cosigner on the loan. A cosigner can back you up if your credit or your income is insufficient to get an approval. Your cosigner should have a good credit and stable income. The cosigner on the loan will be assuming the same responsibilities on the loan as it is with the borrower. Thus, in cases of non-payment, the cosigner can suffer the same consequences as the borrower including getting a negative mark on his or her credit. Get a cosigner who fully understands these responsibilities. 4. Consider applying with another lender. If one lender denies you, it doesn’t mean that the other lender will automatically reject your loan application too. Lenders have varying criteria for approving a loan. So learn from the first lender and start working on improving your credit and income information. When applying with another lender, you don’t have to wait. You just need to improve on areas where the first lender rejected you the loan. Being rejected on a bad credit home loan application can be very frustrating but you can always learn from your mistakes. Learn what are the factors that made an impact on your loan application that led to loan rejection. While considering your next steps, start rebuilding your credit, get caught with debts and other loans you have fallen behind with, start paying outstanding debts, and finally find ways to increase your income.

Funding and Loans for Your Business: Which One is For You?
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Funding and Loans for Your Business: Which One is For You?

ByDarin Hindmarsh

Are you looking for better loan rates and conditions to fund your business? You can get funding for your business with better loan terms and flexibility through alternative lenders. Alternative lenders generally can offer businesses with extra flexibility as they are privately-owned establishments. These lenders are not limited to the terms and conditions of regular banking institutions. These lenders source their funds from numerous investors that can offer better options making them more preferable for many Australian businesses. How to Find the Right Business Loan for Your Business Thus, if you are looking for better loan options, look beyond traditional financing institutions such as banks. Know all the options available for your business in terms of rates, fees, conditions, and customer service. 3 Major Things to Know Before Getting a Business Loan from Alternative Lenders 5 Kinds of Business Loans Alternative Lenders Provide 6 Things to Consider When Comparing Business Loans Not one loan is the best business loan. It all really depends on the circumstances surrounding your situation. But you should always keep the following in mind when comparing business loans. Talk to a professional mortgage broker to help you assess your needs. The right business loan really depends on your business standing. The bottom line is that you choose a business loan that you can afford and that it meets your business needs.

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How to Use a Bad Credit Home Loan Calculator

ByDarin Hindmarsh

Having a bad credit is not a barrier to taking out a mortgage. There are lenders who are willing to look beyond your credit score and offer bad credit home loans. A bad credit home loan calculator can help you decide on which offers are best suited for your needs. Bad Credit Home Loan Calculators – How Does it Work? There are a number of mortgage calculators in the market and all of them work to provide useful calculations that you can use to compare home loan offers. Regardless of a bad credit, this home loan calculators give you an idea of your monthly repayment based on your inputs. Home Loan Calculator Inputs: A home loan calculator typically asks for three inputs to provide a simple computation of monthly repayments. These three inputs are as follows: Other details may include the following: Home Loan Calculator Results: The use of a home loan calculator is straightforward and really easy to understand. You only need to provide the loan amount, interest rate, terms, repayment type, and other details. Should you be a first time home buyer or simply doing an early research, think of rough numbers to fit your requirements and finances. The calculator can provide a flexible option as to weekly, fortnightly, or monthly repayments and different loan terms. This allows you to work with the calculator according to your specific financial situation. Why you would a borrower with a bad credit use a home loan calculator? Those with bad credit ratings are generally priced with higher rates of interest than those who have higher credit ratings. As a result, loans with higher loan amounts and longer repayment periods will cost more interest over the life of the loan. Thus, it is important for those with bad credit to use a home loan calculator to calculate exactly what they are about to pay on their loan based on interest rate and term of the loan for them to make smart decisions when choosing bad credit home loans. Tip: If you have a bad credit, opt for a shorter repayment period so as to avoid paying too high total interest repayments. Using a home loan calculator, borrowers with bad credit can find lenders that offer lower interest rates, know what their total interest payments are, and compare better loans that meet their needs. Also, the calculator can help borrowers find out if the loan is affordable. This can be done by entering your intended deposit and loan amount, you can easily see what rate and repayment amount is applicable to your condition. You can compare this amount to your monthly income and decide if you can afford the loan based on your monthly financial budget.

How to Get an Unsecured Business Loan in Australia
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How to Get an Unsecured Business Loan in Australia

ByDarin Hindmarsh

Traditionally, businesses needed to present a security to be qualified to apply for a business loan. More recently, this no longer applies as a hard rule to follow. Non-traditional lenders and some banks now offer smaller unsecured business loans. These types of loans don’t require a guarantee and loans are based purely on the business’s ability to make repayments which are determined by assessing monthly sales and cash flow. How to Qualify for an Unsecured Business Loan Eligibility Requirements Lenders vary in their eligibility criteria. However, borrowers will generally have to meet the standard business loan requirements to qualify for the loan. The general criteria are as follows: Lenders present different amounts for unsecured business loans. However, these loans ranges from $1,000 to $1,000,000. You might find that the total amount you’re qualified for is determined by your monthly revenues. For instance, if you make $75,000 income each month you could be qualified to borrow the same amount. Application Process for Unsecured Business Loans You can begin by searching and comparing unsecured loan options. These type of loan comes with a variety of features that you could check out in order to make a comparison. Here are considerations you have to look at when comparing. 1. Compare Interest Rates This is an excellent approach to figure out how competitive the loan is. On the other hand, keep in mind that fees could also apply. Confirm this when you are making a comparison. 2. Associated Fees Look into the fees involved. This includes upfront and ongoing fees that may affect your business loan. You may even have to pay other fees such as the loan documentation fee. Comparing the fees you should pay will help you decide which loan is more competitive. 3. Repayment period How long will you have to pay for the loan? The duration of the loan will impact the total repayments you are going to pay. Work with a business loan calculator to find out what your possible repayments will tend to be and when you can pay back the loan. 4. The Total Loan Amount Specific lenders have a minimum and maximum loan amounts that you can borrow. Make certain that the total amount you will need is being offered by the lender. 5. The Turnaround Time How long can you get approval? Several lenders are now able to approve loan applications within just 24 hours. However, there are other lenders that much more. If you require finances within a specific time, be sure the lending company can accommodate this. Prepare your Loan Application Requirements Once you have compared your loan options as to rates, fees, and other features, get in touch with the lender that may work for you. The process of application differs throughout lenders, but you will typically need the following requirements to apply: As a business requiring additional working capital, you can get an unsecured business loan. But first, you need to check on the eligibility specifications of the loan provider. There are two primary things to bear in mind prior to applying for this type of loan – how much will it cost your business and is your business able to pay for the loan. Consider carefully your present earnings and cash flow. Learn how long the loan term is going to be. By including the monthly repayments as part of your budget, you will have a better view if your business can, in fact, afford the loan.

Car Loan With Bad Credit: How Fast Can You Get a Loan Approved
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Car Loan With Bad Credit: How Fast Can You Get a Loan Approved

ByDarin Hindmarsh

Having a negative mark on your credit report can be bad news. But the good news is that there are several reputable lenders who are ready to offer you a second chance loan. For lenders to provide you a car loan with bad credit, you will need to provide “quality application” in order to get approved. It is possible to get a car loan before the year ends provided all the requirements are met. Sadly, for those with bad credit, approval may take a longer time. Lenders happen to be strict when it comes to extending loans with bad credit. They will look into the stability of your income and good reasons to give you a car loan. Therefore, you have to demonstrate these good reasons during the application process. Factors That May Delay Bad Credit Car Loan Approval Negative marks on your credit history can delay car loan approval In a standard loan application, loans are not offered to those who have bad credit. Therefore, negative marks alone can delay the approval process because lenders tend to be rigid when it comes to a car loan with bad credit. Lenders would like to see some improvements on your credit marks or a larger deposit can convince lenders of offering you a car loan. Relevant documentation If you are not able to provide all relevant documents required by the lenders, this further delays approval. So if you are apt to take out a car loan, make sure that all required documents are submitted to be considered. Lacking information There is some information that you may have missed to submit. These lacking information particularly in car details that you want to take out the loan for can delay your application process. So make sure that all the information required had been provided to avoid further delays. Keep your options open Flexibility is the key to faster car loan approval. When you are more flexible, there are more choices available to you. It helps to have a particular car and type of loan in mind but if you keep your options open, it can speed up the application process. What Can You Do To Speed Up The Loan Application Process? Be completely honest Disclose all relevant information needed by the lender during the application process. If you fail to disclose your past credit history to the lender will raise red flags when they soon find out about it. Honesty is not enough, complete statements are important too. Making sure that you are not withholding any relevant information to the lender is a bad idea because they will eventually find out and it raises negative impression. Access and understand your credit file before making an application You can get a copy of your credit file online via major credit bureaus. When you have a copy of your credit file and you understand where exactly the negative marks or erroneous entries are, you can fix this by getting in touch with the companies that show negative entries. Making corrections can improve your credit standing. Provide banking records Recent bank records are very important when taking out a bad credit car loan. These records will be carefully reviewed. Lenders would like to see that you can live within your means and the ability to make regular savings. Your bank records demonstrate that you have extra income that you can use to make repayments and live comfortably. Previous loan and credit card payments history Your previous repayment history on other loans and credit cards will be reviewed very carefully. You should be able to show a consistent payment history. For credit cards, lenders would like to see that you are able to make above minimum monthly payments. Stability of employment A stable and regular income is crucial. If you have a strong and solid history of employment, this creates a positive good impression for the lenders. You will need to have kept an employment beyond probationary period with your present employer. Employees who have been employed on a casual basis will have to show a good long-term relationship with the employer. Having so many employers in a very short period of time doesn’t look good on your application. Talk to a loan broker Talk to a loan broker to expedite the process. They can be really helpful especially if you are not able to find the right lender for your car loan needs. Being on a bad credit situation makes you a high-risk borrower. If provided with a car loan, expect the interest rate to be higher than a standard regular car loan. A loan broker can help match you with lenders who can offer you a more reasonable interest rate. If you really need to take out a car loan with bad credit, pay back the loan as soon as possible to avoid paying a huge total on interest rate alone. Paying off the loan sooner helps improve your credit standing, and you can otherwise take out a better car loan with better terms. Intellichoice can help. Call us today for assistance.

Ultimate Guide to Owner Builder Home Loans 2025
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Ultimate Guide to Owner Builder Home Loans 2025

ByDarin Hindmarsh

Owner builder home loans is a challenging yet fulfilling avenue that you can embrace to be able to make your dream homes a reality. However, homeowner building requires not only financing but as well as time, dedication, expertise and experience to be a success. This is the reason behind fewer banks offering owner builder home loans. Even with the limited financing options for owner-built projects, going through the process to be able to build your dream home is all worth it. Building your own home without the right knowledge can be horrific. Intellichoice Finance would want to make the journey a successful one for you. We have compiled the Ultimate Guide to Owner Builder Home Loans to equip you with the knowledge and information that would make your owner builder home loan application a success. Most importantly, here are insightful tips that can make your owner builder experience a walk in a park worth remembering. Owner Builder Home Loans: Ultimate Guide for Successful Application How Much Mortgage Can You Borrow? Your chances of getting an owner builder home loan approved are not guaranteed but are possible. Better chances of approval. Being able to manage a budget while managing a long-term and complex project. Getting a pre-approval would give you a fair idea of how much you can borrow. You’ll be able to know the maximum loan-to-value (LVR) ratio a bank is willing to lend you. You can decide early whether this road in building your home is the right one for you. Licensed builders can borrow around 80% of the construction cost. If you are not a builder but will seek the help of a licensed one to construct your home, you can borrow around 50%-70% of the construction cost. The more experience you are as a builder, the less risk a lender sees in you. Why Do Few Banks Offer Owner Builder Loans? Giving out a loan to a client has a lot of risks. Bad credit loans, for example, are hard to find and only non-conforming lenders offer such chances for people with bad credit. Banks measure the risks that each client poses. Another challenge that comes with owner-builder projects is the possibility of drastic changes along the way. The initial plan may have been revised, or the construction schedule is not being met. Some construction can go over budget or delays and other issues during the construction that directly affects the cost of the project. On worst case scenarios, some projects remain incomplete – scenes most banks would rather not experience. When entering the owner-built road to your dream home, you should weigh this possibility. Do you really need financing from a bank and would a bank see you fit as a borrower? Your experience and expertise as a licensed builder or hiring one with such credibility increases the chances of a loan approval. It also builds your confidence that your owner builder project will indeed be a success. How Big or Small Can My Owner Build Be? How big or how small your owner builder may be depending on your budget and the capacity of your licensed builder to deliver a small or big project. You can loan as much as $1,500,000 for small dwelling while bigger construction projects depending on your finances and assets. Low Doc Construction loans also fall under the $1,500,000 maximum loan amount and will not require you to provide a source of income. However, for bigger projects, a complete set of financial documents may be required of you by your bank or lender. Do You Need A Guarantor to Get an Owner Builder Home Loan Approved? A guarantor may increase your chances of securing an owner builder home loan. It would be ideal to have a parent or a very close relative that is willingly interested in helping you out in securing a mortgage for your owner-built. Having a guarantor with a good credit score allows you to secure at least 80% of your total project value. In some cases, you will not be required for a deposit, through the additional confidence a guarantor may be able to provide to the bank or lender that you are applying for an owner builder home loan. The additional credit criteria that a guarantor provides can also help you secure better rates or lower deposits when securing a refinance, construction as when procuring investment properties. Golden Rules for a Successful Owner Build Project The challenge of an owner-built project does not only lies with the funding. The bigger part of the pie is the actual construction of the project. Even with careful planning, problems could go pop up anywhere down the construction road. Here are some Golden Rules you should live by to make your owner builder project a success. Always have a contingency plan ready. As part of your preparation prior to applying for an owner builder home loan, you should have included at least 10%-15% of the total amount of your construction project to the total amount or value of your build. This amount serves as your back up plan in the event of a sudden increase in the prices of construction materials or any other scene that may affect the cost of your build. Check your builder prior to application. There are ways to determine if your contractor is indeed a licensed builder or not. Working with an employee of the builder is way different from working with the actual builder. The equipment, manpower and expertise of the actual builder are incomparable to what a builder-employee can do. Always know the difference. You can check out this article to determine if your builder is indeed a licensed and reliable one. Practice patience. Most banks would not approve a loan if the project is already starting. Owner-builder loans are released in drawdowns and each stage is definite. It would not be ideal to start ahead if you would want to proceed with the financial help from a mortgage. Wait for the process to finish and get a written approval before proceeding with your project. Have a budget set aside. A contingency amount added on the total amount of your loan is within the loan. Thus, it is essential to have cash in hand that can be used to fund your project without waiting for a drawdown to be released. Most licensed and experienced contractors can finance a construction even without relying on the drawdown stages or the incremental release of your loan from the bank. However, if you are the builder of your own project, a considerable amount of cash would be essential to stay on track of your owner-built. A successful owner-builder loan application depends on you and the broker that you will work with to complete the application. Most banks do now do owner builder home loans anymore. However, with Intellichoice, connecting with banks and lenders that do owner builder loans is a breeze. Take the first step with Intellichoice Finance.

Car Loans with Bad Credit Refinance: When Is the Right Time
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Car Loans with Bad Credit Refinance: When Is the Right Time

ByDarin Hindmarsh

A car loan refinance is like trading your old vehicle for a new one. As you outgrow your vehicle, you might want to consider getting a new one. Even without enough cash on hand, you can do this through a car refinance. You trade the salvage value of your first car and then re-apply for a new car loan, a cheaper one since you’ll have your old car surrendered and its current value deducted from your new car loan. What are the benefits of a car loan refinancing? A car refinance can allow you to have a brand-new car. A brand-new car has fewer maintenance costs, compared to an older one. Brand new cars are also fuel efficient, thus giving you savings in the process. As your situation change, you might need a bigger car. If your current work requires moving a few products, a bigger car would be more ideal for you. Having a family may also affect your transportation needs. If you feel that you are in these situations, a car refinance would be lighter on the budget. There are many other positive reasons why you should consider getting a refinance. Check out these reasons and then talk to an Intellichoice broker to get expert advice whether a car refinance is indeed time for you. 1. Lower interest rates If you had a bad credit car loan approved for your first car, you might want to consider getting a refinance if your financial situation has already improved. You can get a regular car loan to refinance instead of car loans with bad credit refinance. Such loans offer better rates. With a better credit score, you can get better deals on your car loan now. 2. If you want to get a better car After 12 months of successful payments on your car loan, you can already apply for a refinance. If you intend to apply for a refinance, you should do it after a year to keep the value of your car high. It would be difficult to refinance a car loan if the amount you owe is greater than the value of your vehicle. 3. Minimize current loan charges Talk with a car loan broker and ask if a car refinance would give you lower monthly fees and other payments associated with it. Although there are additional fees included when refinancing, you should include this cost on the possible new charges and compare it with your current monthly fees. 4. New features for your loan Car loans come with different features and they vary from time to time. If you are eyeing for a new car loan with more features, beneficial for you as a client, you might want to consider a refinance. 5. Having a hard time paying for your loan If you are having a hard time paying for your car finance, you might want to consider getting a refinance. You can opt to get a new loan with a longer loan term, giving you a lower monthly payment to worry about. Although the interest earned by your principal would be higher, you will be able to allocate your budget to other important things besides your car loan payment. Who offers car loan refinancing in Australia? Car refinancing is offered by lenders, the big four banks in Australia as well as other small lenders to clients with good credit scores as well as to those with black marks on their credit file. Car loans for bad credit refinance are for clients that currently have a bad credit score, regardless whether their initial loan is a regular car loan or is already a second chance car loan. The right time to apply for a car finance is as early as you decide to do so. Remember that you are using the current value of your vehicle as a sort of payment to lessen the amount of car loan you will need to procure a new car. The higher the value of your vehicle is, the better interest rates and deals you will enjoy. Ready to take a car refinance? Call Intellichoice Finance and let our expert car loan specialists guide you through the process.

95 Home Loans: A 5% Deposit Mortgage
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95 Home Loans: A 5% Deposit Mortgage

ByDarin Hindmarsh

For many Aussie home buyers, saving for a 20% deposit on home loans is not just feasible. Although you’ll get higher chances of getting a loan approved with a higher downpayment, as well as better interest rates, saving such amount can be a challenge for the average Australian. It’s a good thing there are home loans that offer a 5% deposit on the total value of the property. These are called 95 home loans. What is it and how can you get one? What is a 95% home loan? 95% home loans are also known as 95% LVR loans where LVR stands for the loan-to-value ratio of the loan. This loan type means you are able to take out a low deposit loan for as little as 5% deposit on the home property. The standard is at 20% deposit for most home loans. Many Australian lenders consider this type of loan as high risk compared to the standard 80% LVR at 20% deposit loan. Where lenders find the loan to be high risk, the application process is stricter and may require the borrower to get an LMI (Lenders Mortgage Insurance). For these types of loans, interest rates are higher than the average home loan. How to Qualify for 95 Home Loans in Australia? Lenders are looking at two things above others to qualify you for a low deposit home loan. One is your deposit and the other is a steady income. First time home buyers may use the First Home Owners Grant as a deposit and less than 5% deposit if you are going to spend on LMI. A steady income means a regular income. If you have a strong financial position, you can even qualify for huge interest rate discounts. Other conditions to regular 95% home loans Traditional banks will deny your application if you don’t meet their conditions. But there are specialized lenders who can still extend help. Important notes While it is possible for you to get a 95% loan, there are a few things you should consider as follows: 95 home loans are low deposit loans that give a chance for Australians to own a home despite having lesser savings for a deposit. This could be an easier route for many who are having a hard time saving up for the standard 20% deposit.

Why Do You Need to Get a Bad Credit Home Loan Broker?
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Why Do You Need to Get a Bad Credit Home Loan Broker?

ByDarin Hindmarsh

Looking to invest in a new home but worried about your bad credit score? Drowning in debt and eyeing to consolidate it with your current mortgage? A bad credit home loan is your best option. But are you sure of the steps that you are about to take? You might want to seek help from a bad credit home loan broker. A Bad Credit Home Loan Broker Understands Your Situation Banks tend to be a snob when it comes to bad credit loans. Credit score plays a big role in securing a loan through a bank. Non-conforming lenders think differently. They believe in second chances and look beyond your bad credit. They go after your capacity to repay a loan now, and not in the past. A loan broker gives you access to these non-conforming lenders. Home Loan Broker vs Direct Application Too many inquiries in your credit file can be prevented with a loan broker. A loan broker will sit down with you and will ask for financial documents same as a regular bank. The difference is that a loan specialist will dig deeper into why you are currently in the financial situation that you are in. They will try to discover what circumstances in the past lead you to all those black marks in your credit score. If you are not well-versed with financial jargons, a loan broker might help you understand what your credit file says. Expertise and experience are what makes a bad credit home loan broker an ideal ally for your mortgage application. They can professionally inform you if you can get a bad credit mortgage approved or not. But unlike banks who would simply point you towards the door, a loan broker can help you improve your credit. They can access your situation and tell you on which areas to improve to be able to qualify for a bad credit home loan in the future. That’s good financial advice plus one less inquiry added on your credit file. Unlike what most people think, most mortgage broker advice is free. The financial advice that they offer are usually free and the compensation they receive is in the form of a brokerage fee and most of the time shouldered or commissioned by the lender. Some complex situation will require a small fee as well as loans that are considered small. All in all, you should take advantage of learning from a loan broker and getting as much financial knowledge as you can from them. Bad Credit Home Loan Brokers A bad credit home loan mortgage broker makes the process faster and easier for you. Clients that are not financially versed would benefit a lot from having that one person you can ask for advice or guidance throughout the start and final stages of the application. A loan broker is a voice that connects you to non-conforming lenders expertly, increasing the chances of a mortgage approval for you. So, do you need a home loan broker to help you through your bad credit home loan application? Talk to an Intellichoice mortgage broker today and see the value of getting an expert to help you with your home loan application.

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Can You Buy a House with Bad Credit before Christmas 2025?

ByDarin Hindmarsh

If you are planning to get a home loan to buy a house before the Christmas season, you definitely can. Typically a home loan takes about 4-6 weeks from the time you have submitted your application considering that all requirements are complete and that you have met all the eligibility requirements. Just in time for the holidays. The processing of home loans really depends on how fast you meet all requirements and on the state you reside in. Other factors that may affect your application will also depend heavily on your financial standing. To buy a house with bad credit, and having a new home right before Christmas 2018 arrives is possible. Negative Marks on Your Credit Reports For those with bad credit history, it could take more time because lending companies usually go through a thorough process of gauging the complexity of your situation. Normally, those who have negative marks on their credit reports will have a challenging time acquiring a home loan with good terms and conditions. Fixing a bad credit rating doesn’t happen overnight. These negative marks usually stay in your credit file for at least 7 years or until you do something to improve it. Regardless, you can still get a home loan but expect to have a higher interest rate. What to do if you want to buy a house with bad credit? 1. Review Your Credit History Figure out what’s hurting your credit. Before you even apply for a mortgage, you will want to take a look at your credit report no matter where you stand in your credit. You can get free copies of your credit report every 12 months from any of the credit bureaus. This provides you with a good kick off point. When you are able to determine what credit issues are affecting your credit, you know where to start fixing the problem. You also would want to find errors on your credit. Small errors bring down your scores and so it is best to check these errors too. You can dispute credit report errors. It usually takes 30 to 45 days for credit bureaus to respond to credit disputes. You might also want to consider paying in cash for your Christmas gifts instead of using credit. Or you might want to explore the possibilities if giving away personalized gifts this year. You’ll be able to save a few hundred or even thousands of dollars that you can save for your first mortgage payment. 2. Improve Your Credit By Taking Action Now If you possibly could postpone trying to get a mortgage right up until you have done something to increase your scores, it could eventually save your time and money. Here are a few things you can do to improve your credit: 3. Start Saving Where You Can While you are focusing on improving your credit score, it’s a smart decision to start saving money. The more your savings be for a down payment, the better. A larger down payment is more appealing to lenders. This can also mean less interest and lower monthly payments. Keep in mind, bankruptcies along with other major credit problems do not immediately lock the door on home loans. You simply need to think smartly and do your very best to get your credit score moving in the right direction. 4. Consider Getting The Help Of Professionals In The Industry You can do a lot of things to repair your credit. Nonetheless, if you are having a hard time, you can always seek the help of a professional. Contact a professional credit repair service. They can help you formally file a credit dispute to credit bureaus along with supplying a detailed explanation of the error. If you have a good credit standing, you can definitely get a home loan approval in three months time, right before Christmas Bells ring a ding. This all depends on your diligence in supplying the required documents. But if you have a bad credit, you will need to start working on improving your credit standing before even you consider taking out a loan. You can also consider getting the help of a credit repair service.

Home Loan Options for People with Bad Credit
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Home Loan Options for People with Bad Credit

ByDarin Hindmarsh

An unexpected circumstance in your life may have caused you to miss financial payments thus resulting in a bad credit rating. Truth is, you are not alone. Even those who strived hard to keep a good credit rating come to a point of hardship in their lives. But it’s not all bad news. You still have options if you are looking to applying for a home loan. First things are first though, you will have to work on improving your financial status in order to move on. Improving Credit for People With Bad Credit Scores How to Start Fixing Your Bad Credit? It is advisable to first take a look at your financial standing. Begin with getting a copy of your credit file through Veda, Experian, or Dun and Bradstreet. Review your credit history and determine where the gaps are so that you can start fixing them. As you start making regular payments to outstanding debts, you will see improvements to your credit file report. Lenders would like to see that despite having bad credit, you are doing something to improve your financial standing. You can always seek outside help to improve your situation. You can employ the help of a credit repair service or get financial counseling too. There are many ways to get out of bad credit status. All it takes is patience and diligence from your part. Soon enough, everything will fall into place. Bad Credit Home Loans and Getting Loan Specialists After you have started fixing your credit, you can start looking for specialized lenders who extend bad credit home loans. Many lenders are extending bad credit loans to borrowers to help clear negative reports on their credit. However, these lenders can charge you higher interest rates. Some lenders may also impose Lender Mortgage Insurance, so you will have to be ready for this but some lenders may have other options too. When applying for bad credit home loans, you will have have to be as transparent as possible. Lenders are looking at two things when investigating a borrower’s eligibility – stability of income and credit history. So if you have a stable source of income and a gradual improvement to your credit history, lenders can eventually trust you and offer you a home loan. Talk to a Home Loan Adviser You don’t have to go through the burden of fixing your credit and getting a home loan on your own. You can actually get the help of a home loan adviser. They can help you figure out ways to improve your credit report. Top of it, they can help you make a plan to straighten your credit file and match you with a lender who can actually help. There is always hope for people with bad credit. But you will have to start from the very beginning in order to straighten things and get the reward. While there are no shortcuts to fixing bad credit, it is still good to know that you can acquire a home loan with due diligence. Ready to take the step towards in buying your own home even with bad credit. Fill up this quick application form as Intellichoice helps you in acquiring your dream property.

How to Finance a Car Loan With Bad Credit
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How to Finance a Car Loan With Bad Credit

ByDarin Hindmarsh

Lending companies are strict when it comes to their lending criteria especially for those who have bad credit. So what do you need to do in order to get approval for a car loan with bad credit? Before moving forward, it is important to note that bad credit car loan will demand higher interest rates compared to standard car loans. Nonetheless, the good thing about bad credit loans is that it can eventually improve your credit standing so long as you keep making regular and on-time payments. Steps To Take Before Applying for Car Loan with Bad Credit A bad credit is a bad news for many but it doesn’t entirely mean that you cannot get a car loan. There are several lenders who are actually prepared to offer you a second chance loan. But, you will need to show the lender that they can trust you with a second chance loan. Here are steps you can take to apply for a bad credit car loan. Get a Copy of Your Credit Score The very first thing that you will want to do is to get a copy of your credit file. You can request for a copy through Veda, Experian, or Dun and Bradstreet. As soon as you have a copy, you will want to check if everything in the file is correct. If you have spotted a mistake, you want to make sure you get this fixed. You can also seek the help of credit repair service. You want to put a move on this right now because fixing an error on your credit file can be time-consuming. Some Tips to Help Repair Your Credit Standing You will need to start repairing your credit even prior to applying for a bad credit loan. While repair doesn’t happen overnight, lenders would like to see your attitude and what you are doing to fix your credit. Talk to a Financial Consultant and Car Finance Broker Financial advice from a trusted professional is a good idea. They can help you in a multitude of ways, from looking into your present condition. They can help you make smart decisions when it comes to your finances and may even match you to a better lender that fits all the requirements you need. They may even advise you better alternatives to owning a car depending on the circumstances before getting a bad credit car loan. Finance brokers want to take you away from bad decisions and would want to help you better your condition. If you have bad credit, their first advice would be to fix your credit rating and may suggest that you start off with a cheaper car that meets your finances while you repair a bad credit from getting worse. Look for a Specialized Lender Who Can Extend Bad Credit Loans A specialized lender recognizes that regardless of whether you are very mindful of your finances, and even if have a healthy financial perspective, at times debts go overdue for various reasons that are beyond your control. These lenders are willing to look beyond your credit score and will look at your overall financial position, your job security, and even your lifestyle. Based on these conditions, lenders may even extend a better deal than traditional lenders.Look at loan terms and interest rates over monthly payments While monthly payments look intimidating and you would rather go for a low monthly payment, note that lower monthly payments don’t always mean that it’s good. You may want to look at loan terms and rates too. For most lower monthly payments, there’s longer loan term that results in higher total payments. You want to choose the least financial commitment and the lowest interest rate possible because these two factors will greatly affect the totals that you will have to pay throughout the life of the loan. It is possible to get a bad credit car loan considering that there are many lenders who are willing to offer this service. In fact, getting a bad credit loan is one of the ways to repair and improve a bad credit. But before you move forward, you will always want to look into some factors such as higher interest rates and longer terms. Talk to a car loan broker to help you make the right decisions in your next step forward.

Real Estate Investing: Steps to Make it a Success
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Real Estate Investing: Steps to Make it a Success

ByDarin Hindmarsh

You want to be successful when investing in real estate. Therefore, the first step you should make is to get advice from a qualified professional. When we say qualified professional, it means that you are getting advice from someone who has already reached the goal you want to achieve or from professionals who have helped so many investors reach the success they are enjoying at the present. Before engaging in real estate investing, you will need to have the mindset of a businessman. A good businessman will have four critical factors in order to succeed. These four factors are as follows: When all these factors are considered and followed, you know you are on the right track in making your journey in the real estate industry a success. 7 Steps to Make Real Estate Investing a Success 1. Find the right funding for your investment Where do you get funds in investing in properties? For many who are already in the real estate industry, most of their investments were purchased through financing. While home loans are the most popular route to fund your investment, you may also want to consider an SMSF loan or an equity loan. When searching for the right funding for your investment property, it is always good advice to go through a mortgage broker who has the right connections in the real estate industry. They can match you to the right lender who can provide the funding you need. Home loan for property investment. Property investment loans work much like a regular home loan. You can choose between a variable interest loan or a fixed rate loan. Most property investment loans require a deposit. It really depends on your circumstance. The standard deposit to make is at 20% of the total property value. However, there are some lenders who can extend 95% investment loans which means you can make a smaller deposit of up to 5%. SMSF loan for property investment. You can use your superannuation to fund a purchase for a property. To do so, you will have to set up an SMSF or a Self Managed Super Fund. This is the only way that will allow you to use your super for property investment. Know more about SMSF loans. Home equity loan for property investment. You can finance an investment property by unlocking your existing home equity. Home equity is the value of your home. If you still owe money on it, then your home equity is the home value less the money owed on it. For instance, if your house has a value of $500,000 and the money owed on it is $120,000, then the equity on the home is at $380,000. This equity can be taken as a deposit on the property investment you looking to purchase. Your current home property turns into security or collateral for the new financial debt. Find more information on Home Equity Loans. 2. Get a financial pre-approval. Once you have been matched to the right lender who can offer you the right loan for your investing needs, go through the application process. When you meet the criteria of the lender and provided them with the documents they need, the lender will issue a letter of pre-approval. Once you get a pre-approval, you should be able to know how much you can borrow and how much deposit you must put down. When you know you are qualified at pre-approval, this makes you market ready for your real estate investment. 3. Find the best investment property to purchase To help you choose a good property, you would want to speak to a property consultant, a property manager, or a real estate agent. Find a really good property to make sure maximum borrowing capacity is utilized. As a word of advice, don’t exceed your maximum borrowing capacity. When choosing a property for investment, make sure you have done your research. What should you be looking for in good property investment? Here are a few things you should be looking at: Make sure that there is no caveat on the property you are investing in. You can search the register of the property. The search will show any or the absence of caveat (claims on the property). If a caveat is present, the solicitor can help you understand what the caveat is and you can decide if you should push with your investment. Consider the location of the property. It’s a common understanding that most people who rent properties would rather rent a place close to the central business district, somewhere close to public transport, or somewhere close to universities. Know what kind of property is on demand. Talk to property managers, talk to real estate agents, and you can also check ads to find out what’s the most desirable type of property in the market. Don’t just look at the rental returns but look into its capital growth too. Follow the 1% rule which should be close to the area’s median price. The one percent rule multiplies 1% by the selling value of the property to establish a base amount for monthly rent. This rule implies that the investment property must be rented for at least 1% of the total purchase price to generate positive cash flow. For example, if you have a total purchase price of $200,000 – this means that you should be able to rent out the property for $2,000 monthly for positive cash flow. 4. Talk to an accountant regarding asset protection and tax minimization. Once you sign a contract of sale on the property, you can choose to put the property after your name and the nominees, and then you can nominate an alternative structure or an entity to settle the property so you have plenty of time to think about whether you should be buying the property in trust, your personal name or whatever you choose. 5. Employ an independent solicitor or conveyancer before you sign the contract of sale. They will review the contract for sale for you. This is to make sure that the contract of sale is rebalanced and in your favor and not in the favor of the vendor or the developer. That’s very important. You’ll be amazed how many times you go to a solicitor and they’ll say look these are the following things that we recommend you modify in the contract of sale so make sure you do get a very good property solicitor or conveyancer. 6. Get the services of a good property manager. Never manage the property yourself. Pay 7% plus GDT. These guys are professional. You don’t want to get involved in the lives of your tenants. You’ve got to think of investment as a business. You’ve got to have a professional to look after your property. Everything has to be done with the least amount of involvement from your end. You want to make this whole thing passive especially if you are willing to build a substantial property portfolio. 7. Get a Landlord’s Insurance A property manager will require you is to get a landlord’s insurance before they even start doing business with you. So you will have to consider checking which insurance companies can provide you the best of this type of protection. This is your contingency plan in case the unexpected happens.

Bad Credit Car Loans from Private Sellers: How Do They Work?
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Bad Credit Car Loans from Private Sellers: How Do They Work?

ByDarin Hindmarsh

Many consumers do not really have the immediate cash to purchase their auto needs. They turn to banks and loan companies for car financing. When you are purchasing from a private car sales, there are a few lenders who are willing to extend financing after a thorough check and investigation. However, there is a small chance of obtaining bad credit car loans for a car purchase from private sellers. Car Financing From a Private Seller Private car sales (Private sellers) are the biggest market for car sales. However, many lenders do not freely provide financing if you are purchasing from a private seller because lenders view this as high risk, considering that fraud is higher unlike when dealing directly with a licensed car dealership. The possibilities of buying a defective or a misleading vehicle also increase with a non-licensed private seller. The most practical method of financing a purchase from private sellers is through your local credit union or your local bank. You can also seek the services of a finance broker who has access to several specialized lenders. They can find you a lender who can provide the funding you need. A second-hand vehicle sale also requires a vehicle dealer license. Not having one is punishable by law and will require fines and imprisonment. You can check for second-hand vehicle dealer license here. After searching for a lender who can provide private sale car financing, borrowers may submit an application directly. If approval had been granted, the lender can transact directly with the private seller. You may also get a check from the loan provider to present to the private seller. Upon providing the check, the title of ownership will be transferred to you with the lender as the securing party. Bad Credit Car Loans for Private Party Car Sale Getting financing for a car purchased from a private seller is already challenging and it becomes more challenging for those who have bad credit. Lenders will have to make a thorough investigation before they even decide to provide an auto loan for a private seller. Usually, borrowers with bad credit get the services of a subprime lender who are eager to work with borrowers with bad credit. However, these lenders work with indirect lenders or agents along with licensed dealerships. They typically want to look at two critical elements – verification of borrower information and vehicle information. Thus, subprime lenders can finance those with bad credit to purchase a car through a dealership. But sadly, they don’t finance purchases through private sellers. Second Chance for People with Bad Credit Bad credit car loans are second chance loans provided to borrowers. However, there is a slim chance that lenders can provide this type of loan to buy a car privately. Nonetheless, finance brokers may be able to extend your help. Talk to a car loan broker to see what options you have.

Home Loan Repayment Calculator: What’s the Actual Cost of Your Mortgage?
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Home Loan Repayment Calculator: What’s the Actual Cost of Your Mortgage?

ByDarin Hindmarsh

Taking out a home loan is the biggest investment you can ever make in your lifetime. When taking out a home loan you know that there are many factors to consider in order to make payments on time and without delay. Most borrowers’ first concern is the total cost of taking out a loan. There are many factors that affect the true cost of the loan. Aside from principal amount and the interest, other factors include deposit amount, the term of the loan, and other ongoing charges. All these will add up to your monthly repayment.   In order for you to calculate the actual cost of your mortgage, there are useful tools made available by most of the lending institutions on their website. You can use these tools to get a possible estimate of how much you can borrow, the actual interest on top of the amount you borrowed, and your required monthly repayments. The Home Loan Repayment Calculator A home loan calculator is a good tool that can help you estimate what your monthly repayment will look like. Home loan calculators consider the following factors – Loan term, The interest rate, Payment frequency, and Repayment type. All these factors are important to provide you the closest estimate of your monthly repayment. A home loan repayment calculator makes use of a formula that considers the principal, original amount borrowed, interest rate, and the number of payments throughout the life of the loan. With the help of this financial calculator, you can measure if you are indeed financially capable of repaying a loan. This can also help you adjust on certain aspects in your finances to be able to afford a home loan repayment scheme assigned to you by your lender. Major Factors To Consider To Calculate Actual Cost of Your Mortgage For the purpose of example, let’s say that you have borrowed a total loan amount of $400,000 with a 5.5% interest rate. Your loan term is at 20 years with $0 ongoing fee and no monthly repayment frequency. Your loan calculator will calculate the loan as follows, please see image below. Your monthly repayment will be $2,751.55. The total interest payable on the loan is $260,372. The total payments that’s going to be made are $660,372. The loan repayment calculator is easy to use. This can help you actually compare interest rates and other features offered by different lending institutions so that you can make better decisions in mortgage loans. Why must you use a home loan repayment calculator? A home loan repayment calculator is an excellent tool that may help you better manage your home loan repayments and repay your mortgage on time. If you are still looking for the right loan to purchase a home, the home loan repayment calculator is a tool you can use to help you compute the monthly repayments for various home loan amounts. This gives you an idea of the type of loan you can afford without jeopardizing your monthly finances. For those already have a current home loan, the loan repayment calculator can help you determine what you new repayments would be if you have decided to have the mortgage refinanced. Also, you can track repayment amount when interest rates fluctuate through the life of your mortgage.

Getting a Home Loan: How Long Does it Takes?
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Getting a Home Loan: How Long Does it Takes?

ByDarin Hindmarsh

Being able to purchase a home property is a life-changing experience. It is an accomplishment that somehow boosts your morale and provides satisfaction in many aspects. While purchasing a property is an ideal step towards improving lifestyle, the process can be very daunting. Your Ultimate Guide in Getting a Home Loan Generally, the time it takes to get a home loan in Australia is four to six weeks from the time of submission of the application to the time of settlement of property. There are many factors that may affect the application which can prolong the time needed to complete the loan process. These factors include: How to Improve Processing Time for Home Loan Approval? 1. Gather all required documents. You can help improve processing time by completing the documents required for the bank or lending institution to consider your loan application. Documents needed are usually as follows: 2. Fill out the application form. Regardless if you are an individual applicant or if you’re submitting an application with someone else, it only takes a few minutes of your time fill out an application form. For the record, it takes about 15-20 minutes. 3. Get a conditional approval or a pre-approval. It is important to note that a pre-approval is issued by a bank or financial institution based on your credit-worthiness which is fully investigated by the lending party. This means that the lender feels you are eligible to take out a loan based on the documents you have provided. Pre-approval is a conditional approval pending full valuation of the property you are looking to purchase. The length of time for pre-approval depends on the circumstances surrounding your financial standing. You can expect to hear from the bank within 3 days (3-day turnaround time) or within 7 days (7-day turnaround time). This depends on many factors that make an impact on your application. Expect a 3-day turnaround time based on the following circumstance: You can expect a 7-day turnaround time based on the following circumstance: Note that if your situation is complex and that you are viewed as a high-risk borrower, the process can take longer than the normal expected turnaround time. After Pre-Approval If the bank or lending institution finds the document you have provided is sufficient and you meet their lending criteria, a pre-approval will be issued. At this point, you can now look for a property. The validity of pre-approval is within 3-6 months. So it would be best to have found the property within that specific time. Once you have found the right property for you. Let the bank or the lending institution know so that they can start valuation to see if the property meets their criteria. Valuation The time it takes for valuation to complete depends on your application and on the property you are looking to purchase. For full valuation of property, it usually takes 5-7 business days. Although this is the standard time for valuation, it still depends on how the vendor or real estate company respond to provide access to the property. The availability of the valuer is also one thing that can affect the length of time in valuation. Formal Approval and Contract of Sale As soon as valuation has been carried out and you have received formal approval, Contract of Sale can be signed with the help of the conveyancer. The time between obtaining formal approval and Contract of Sale signing depends really on you and your vendor. Settlement date is usually set at four weeks right after signing the Contract of Sale. A loan application can take longer depending on all the parties involved and all the circumstances surrounding your situation. You can make the process quick by engaging a mortgage broker. They have all the right connections to match you with the right lender, to help you gather all the required documents, and even to match you with the right property to fit your loan requirements.

Understanding the Difference Between Leasing Finance and Operating Finance
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Understanding the Difference Between Leasing Finance and Operating Finance

ByDarin Hindmarsh

Organizations usually select to lease assets instead of making a purchase, this is specifically true for assets used for the long term. The choice to lease is primarily based on specific factors such as need, better economic conditions, keep the asset detail from the balance sheet, or insufficient funds to make a purchase. The types of accounting methods for leases are Finance Lease or Leasing Finance and Operating Lease. Both leases are being used for distinct reasons and lead to different treatment in the accounting process. Leasing Finance Vs Operating Finance What is a Leasing Contract? An agreement between the lessor and the lessee, where the owner of the equipment (lessor) transmits to the user (lessee), the right to utilize the equipment for a specific amount of payment over a certain time period. What is Leasing Finance or Finance Lease? Finance lease OR Leasing finance is normally used to purchase equipment or assets for the significant portion of its valuable life. The equipment is funded under an accounting term GST (Goods and Services Tax) and still have a balloon (a residual amount) at the term’s end. At this stage, the lessee will acquire ownership over the equipment after an ‘offer to buy’ the equipment had been successful. The balloon amount is the ‘offer’ proposed to the lessor. What is an Operating Lease? An operating lease is an agreement between the lessor and the lessee to finance the equipment for less than the determined useful life of the asset. At the end of the lease term, the lessee could return the equipment assuming no further obligation to the lessor. Difference Between Finance Lease and an Operating Lease? Finance Lease Operating Lease At the end of the lease term, the ownership of the equipment is transferred to the lessee. At the end of the lease term, the ownership of the property is retained by the lessor. There is an option for the lessee to buy the equipment at the end of the lease term. The balloon or the residual amount is the price set as ‘offer to buy’. The ATO (Australian Taxation Office) asset guideline helps determine the specific balloon or residual amount. The lessee does not have an option to purchase the equipment after the lease term. Running costs are not included which means greater administration and possible price fluctuation that the lessee will have to assume as responsibility. All running costs which include servicing, registration, insurance, and etc. are packaged in the lease contract within the set term agreement. This also includes the monthly repayment amount. A finance lease is treated as an asset for the lessee Operating lease is treated as expenses. Changes will occur in 2019 where all operating leases will appear as liabilities in the balance sheet. Which is a better route for a business, Finance Lease or Operating Lease? A better route depends on the business’ specific circumstance. While finance lease and an operating lease has its own pros and cons, here are the most obvious that you can consider in your decision. Operating Lease offers reduced administrative responsibilities of the lessee and allows them to return the equipment at the end of the lease term while paying a fixed monthly payment as agreed upon in the contract. This route is ideal for businesses that are running a few pieces of equipment as a result of administration savings. Finance Lease will have to assume more administrative responsibilities. Also, the lessee will have to face additional resale risks when comes a time that the business decides to sell the property in the future. The positive aspect of the finance lease is that the lessee can assume ownership of the property depending on the success of the ‘offer to buy’. Still confused on what route to take in financing your business? Talk to an Intellichoice business loan specialist today and let us guide you in understanding what your business needs.