Comprehensive Credit Reporting and Its Effect on Your Personal Finances
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Comprehensive Credit Reporting and Its Effect on Your Personal Finances

ByDarin Hindmarsh

The Comprehensive Credit Reporting is a mandate implemented by the Australian government to organizations involved in credit reporting. The mandate requires these organizations to have access to the positive credit behavior of their clients. Both lenders and borrowers will benefit from this since both parties will have current financial records and histories, including the good ones, easily available on the credit report. How Does the Comprehensive Credit Reporting Works? Fifty percent of your financial history will be shared by the top 4 banks in Australia to your lenders. By July 2019, 100% of these data will already be available for banks. Starting July 1, 50% of your financial data, whichever a bank may see fit, will become available to your credit report. Your monthly payment history on your bills, credit cards, and loans, mostly positive histories, will now be available on your file. However, delayed payments and other red flags such as missed payments more than 14 days will also be available on your file as well. The good side of the comprehensive credit reporting is the lenders get to see how good and responsible a client you are. You’ll be able to show creditworthiness and increase your chances of getting a mortgage or a car finance. The bad side is for those who continuously suffer financial difficulties. Instead of a 60-day turnout for defaults, your missed payments will be instantly available on your file after 2 weeks of failure to pay. A Fairer System on Your Financial History Prior to the implementation of the Comprehensive Credit Reporting mandate, your credit score is mostly determined by the number of delinquent reports you have on your file. The more marks on your report, the lower your credit score is. Your credit report contains all the negative aspects of your finances. The items included in your credit report are your financial mistakes and lapses. With the Comprehensive Credit Reporting taking effect, your positive actions towards your financial obligations will also be counted and included in your credit score. Your past financial mistakes are not the only basis for your credit score anymore. You’ll most likely get a higher credit score if you have several positive points on your financial history. These may include: Although the banks will have full control over what aspects of your finances will be included in the Comprehensive Credit Report, this is bound to change by 2019. All your financial histories will be shared with your lenders and banks by July 2019 as mandated by the law. Borrowers who do not have a long credit history would get better chances of getting approved for finance. Competitive deals and interest rates will be easier access to Aussies as their creditworthiness gets stronger. Banks are not the only one expected to share information about their clients. Lenders and other non-conforming financial companies are expected to share the comprehensive credit information of their clients as well. This includes payments histories going as far from April 2018 up to the present, both good and bad payment histories. People with bad credit will not be hounded with their financial mistakes in the past. The additional credit information, mostly positive ones will help potential lenders and banks to get a better gist of the client’s borrowing and payment history making it easier to gauge their capacity and personality as a client. So how does the Comprehensive Credit Reporting affect your personal finance? Generally, you get more out of your money’s worth. Instead of having to burden a high-interest rate due to being a high-risk client, opportunities like better interest rates, longer payment terms and decreased down payment or fees are mostly the loan features you get to enjoy. Being able to have access to such deals and special rates for people with good credit scores. You can allow what you save from these special deals to other aspects of your life that need financial attention.

Why You Need A Compound Interest Calculator
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Why You Need A Compound Interest Calculator

ByDarin Hindmarsh

A compound interest calculator computes the interest that your savings or investment has earned using the compounding interest. In order to understand the compounding interest calculator, we first have to understand what is Compound interest? Compound Interest and How It’s Calculated You must have heard of the term compound interest all the time however confused on what it really means. Basically, a compound interest is an interest on the starting principal and on its accumulated interest. It’s an interest on an interest. Compound interest can be applied on loans and on investments too. How to use the Compound Interest Calculator The compound interest calculator follows the compound interest formula. The formula is a standard followed by all financial institutions using the compounded interest rate. You can come up with the right calculations without all the fuss of computing by using a compound interest calculator provided on specific websites (financing websites, bank websites, etc). The use of the compound interest calculator will require three things – the principal amount, the interest rate in percentage, and the number of years or time periods. Simply enter the figures being asked for and the calculator will compute your compounded interest annually, monthly or daily. Behind the calculator is a formula that is standard in computing compound interest. The Compound Interest Formula Where the values stand for the following:‘A’ – the final amount of your investment‘P’ – principal amount, starting capital‘r’ – rate of the interest rate converted from percentage to decimal figures. In other formulation ‘r’ is interchangeable with ‘i’‘n’ – number of time periods Sample Scenario: Annual Compounding If you have invested $5,000 in savings time deposit with an interest of 5% annually for a period of two years compounding yearly, expect to receive $512.50 on top of the principal amount. A = $5,000 x (1.05)2A = $5,000 x 1.1025A = $5,512.50 Sample Scenario: Monthly Compounding If you have invested $5,000 in savings time deposit with an interest of 5% annually for a period of two years compounding monthly. What is your expected returns on interests? You will first need to get the interest monthly. To do that, divide the annual interest rate which is 5% or .05 by 12 (months). This will give you .42% Then calculate the time period to months where to years is equivalent to 24 months. Note: Monthly compounding yields bigger compared to annual compounding. In this scenario, the yield is at 550 which is greater than 512.50 yield in annual compounding. A = $5,000 x (1.0042)24A = $5,000 x 1.11A = $5,550 Investments computed on compounding interest provides more returns to the investor as compared to a simple interest rate. Using a compound interest calculator simplifies the process of computations so that you can focus more on deciding which investments will work for you best.

The Construction Route for Your Home: Is Your Builder Legit?
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The Construction Route for Your Home: Is Your Builder Legit?

ByDarin Hindmarsh

Building a home is not an easy feat, especially if you do not have the funds that you need and a reliable contractor to do the job. It would be ideal to opt for the construction route for your dream home is you have a legit builder to work with. The work does not only begin when the construction starts. Every authentic and dependable builder should be available from the planning of the project up until you are already living in your dream home. A legit builder also ensures that you are indeed getting quality for the effort and resources that you are putting into the construction of your home. Why Do You Need A Legit Contractor to Do Construction Work for You? If you are planning to fund your home building with a construction loan, you need to have a registered and qualified contractor to do this. Most important of all, a genuine contractor can commit a safe and sound home for your family. Unfortunately, there are a few bad apples in the construction business that makes it important for clients to know the difference between a genuine builder and a potential scammer. Identifying a Licensed Builder for Your Home 1. Look for Business Registrations All genuine businesses should have business permits registered to be able to operate legally in Australia. Checking for the authenticity of these permits is still one of your responsibilities. The Australia Securities and Investment Commission is a good place to start by identifying if the contractor’s business is indeed a registered one. Ask for the ABN of your contractor if they are not categorized as a company. You can look it up on the Department of Industry, Innovation and Science’s ABN lookup feature. 2. Able to Provide Necessities for Work Genuine home builders can provide uniforms, working tools, personal protective equipment and machinery necessary for work. If they do no own the following or at least renting them from someone else, you might reconsider signing a contract between you and your contractor of choice. 3. Rushed Payments and Over the Top Deposits A genuine contractor will never charge you more than $1000 as down payment for construction work. Most licensed contractors have revolving funds or suppliers where they have credit lines to be able to proceed with work without having to ask a client to shell out a huge amount of money. If a home building project is funded by a construction loan, a genuine and licensed contractor will be able to shoulder expenses up until the next scheduled bank drawdown release. 4. Check for Insurance A registered, licensed and a reliable home contractor would be wise enough to invest in insurance. Contractors are liable for any injury or damage they may afflict people and property during the duration and construction of any project they endeavor. General property insurance is also something wise and valid contractors would invest with especially if they already have equipment of their own. A contractor that has a back-up plan or support is someone you could put your trust into when looking for someone to work on your dream homes. 5. Other Documents and Accreditations to Verify A trustworthy and reliable home contractor will most likely be identified upon applying for a construction loan. But if you would want to ensure that you are indeed dealing with a legit builder, here are some other documents you can look for to identify their authenticity. Hiring an unlicenced contractor is also illegal in some states in Australia. The client can also be liable for any injuries or damages your “unlicenced contractor” may encounter on your property. Entrusting your dream home construction with a fraud also endangers the quality or even the completion of the home you aspire. A work with quality and integrity is what you’ll get with a licenced contractor for your home. Make the most out of the money or construction loan that you invest in your new home. Deal with licenced and legit contractor for a favorable experience all throughout your home building journey.

Steps in Applying for Investment Property Loans
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Steps in Applying for Investment Property Loans

ByDarin Hindmarsh

An investment property loan is a type of home loan to buy a property for investment. This is a quick solution for those who want to buy an investment property but without sufficient resources for the purchase. The criteria for approval on investment property loans are complex. This is especially if lenders will require negative or positive gearings to demonstrate that you can actually pay for the loan. Lenders consider investment loans as high risk. Therefore you will need to provide a strong financial standing to be considered eligible. People who borrow money to invest in a property is called gearing. If the income from your investment is less than the expenses, this is called negative gearing. Therefore, positive gearing is the exact opposite where your income from investment is higher than the interest on the loan and other expenses combined. How to Find the Right Property to Invest In Step 1. Assess your financial situation The first step before applying for an investment loan is to look deep into your financial situation to see if you qualify for a loan. Step 2. Scout for a lender and compare rates and loan features The first lender you would like to consider is your local bank. You may also want to check other lending institutions in your area. Make a list of 2 to 3 banks and financial institutions so that you can make a comparison. This step can be a challenge because most lenders don’t freely advertise their best interest rates. So the best thing to do is to contact a mortgage broker who has access to this information. They can provide you a list of lenders who can provide the best interest rates. Alternatively, you can go online and search for websites that provide the best comparison of interest rates among banks in your area. Step 3: Find out how much you can borrow In searching for the right lender, you may also want to know how much you can borrow so that you have an idea how much your repayment is. You can use loan repayment calculators to give you an estimate of your monthly repayments. Your borrowing capacity How much you can borrow depends on your borrowing capacity. Lenders vary in the way they assess investment property loans. They look into your borrowing capacity and your financial situation which included the following factors: Step 4. Find out what are the costs involved in property investments There are a variety of fees required when you decide on investing in a property. Some of the costs are valuations, stamp duty, legal fees, conveyancing costs, and transferring of property title. There are also ongoing costs involved such as council rates, bills, and other taxes. You may also want to consider maintenance costs, levies, insurance, interest, and agent fees. These fees may add up and may cost higher than expected. Understanding all these fees and charges can help you plan and budget better. You may want to involve a financial planner during the process. Step 5. Decide which loan is right for you? In this step, you may want to get professional advice from mortgage brokers and financial advisors. They can lay out to you the type of loans that lenders offer investors. There are various loan features and costs to be taken into account, for instance, home loan rates, redraw, mortgage offset, and continuing fees. There are several loans to accommodate varying needs. Getting professional help can provide you the right information you need to make the right decision. Here are the different type of investment loans to consider: Step 6. Prepare the paperwork required by the lender Once you have assessed your financial stability and found the right lender for you. It’s time to speak to the lender and ask for their requirements. Generally, all lenders have the same requirements with few differences. Here are the common requirements asked for investment property loans: Proof of Identification -this includes passport, driver’s license, proof of age card. Or any two of the following – birth certificate, citizenship certificate, pension card, overseas drivers license, and household bills like phone or electric bill. Proof of income – If employed, prepare your account statements that show three months of salary, a payslip, employment contract or letter from your employer that details your base pay, income tax return.– if self-employed, most recent business tax returns, most recent ATO notice of assessment Others – other proof of assets (land title and others), bank statements Step 7. Get a pre-approval When you get a pre-approval from a lender, this doesn’t mean that you are approved of the loan. But this means you are provided finance approval only ‘in principle’ where you have met the lending criteria of the bank or lender. Pre-approval gives you an idea of how much you can borrow and provides you with a realistic amount to work with. Step 8. Valuation When you have finally chosen the investment property you want to purchase, a valuator will inspect the property. For low-risk investors, a valuator may not be required. Step 9. Formal Approval, Loan offer, and Settlement stage This is when the bank or lender decides that they have everything they need. It is at this stage that they approve your loan and release a formal approval in the form of a letter confirming their approval. Once your loan had been approved, the lender will send you a loan contract to sign in order for you to accept their loan offer. At this point, they call your conveyancer to inform them that the funds are ready for the investment property you are purchasing. A settlement is done when the loan had been paid in advance. The application process for investment property loans could be daunting but once you have received a pre-approval from the lender, everything will fall into place. To make the process a little less stressful, you can contact an experienced mortgage broker to help you through all the process.

Construction Loans Explained: How Do They Work?
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Construction Loans Explained: How Do They Work?

ByDarin Hindmarsh

Construction Loans Explained: How Do They Work? Are you looking for other avenues to acquire your dream home? Is your family getting bigger and you feel you are outgrowing your home? With home prices going down this year, you can actually find affordable home loans. Australian Bureau of Statistics recently reported that from June 2017 and June 2018, values on home properties went down at -0.8%. This could be a good time for home buyers to invest in a home property as the downward motion of the charts can indicate a possible decrease in home pricing. But if you are looking into rebuilding your home or constructing a house in a land property that you already own, there are specific financing options for you, the construction loans. What are Construction Loans? A construction loan is a specialized financing option for builders (including owner builders) and renovators. The financing option will be exclusively used to finish the building or renovation project. It has a different loan structure compared to regular housing loans. There is a common misconception between Owner Builder Loans and a Construction Loan. Unlike construction loans, non-conforming lenders find it a little riskier to approve loans for owner builders compared to construction loans. An owner-build is a construction project wherein the owner is the actual contractor of the project as well. The possibility of the owner-builder not being able to handle such projects makes banks and lenders a little bit hesitant in granting a loan for an owner build. Construction loans are backed up with registered contractors that has mot experience, funding, and expertise in such lines of activities. How Do Construction Loans Work? Construction loans are paid out in periodic progress payments throughout the various stages of the construction process. This is in contrast to regular home loans where payments are provided in a lump sum. Upon approval of a construction loan, the construction process can commence. Lenders are going to make progressive payments generally in five stages as follows: 1. The Slab Down This stage is also called the Base. The amount released on this stage is to help lay down the foundation or the base of the property. It includes the leveling of the ground surface, plumbing, as well as waterproofing of your the entire base or foundation. 2. The Frame Stage The amount released on this stage helps build the frame of the home. This includes part of the brickwork, roofing, windows, and trusses. 3. The Lockup Stage In this stage, the funds released will help put up the external walls and installation of windows and doors. 4. The Fitout or Fixing Stage The amount released on this stage will help finish the internal fittings and other fixtures of the home building project. This includes part-installation of benches and cupboards, plumbing works, electrical works, and gutters. 5. The Completion Stage The amount released on the final stage covers all contracted items such as builders and equipment used. The final payment also covers finishing touches needed for the home in order to be considered as completed. A valuer checks on the completion of work on each stage before releasing funds from the lender. Each payment released is referred to as a drawdown. Interest is calculated based on the total drawdown. For instance. If you were approved for a $500,000 loan and you received a drawdown of $200,000 on the third stage. The interest will be calculated based on the $200,000 total drawdown. During the construction process, loan repayments are interest payments only. Upon completion of the loan, depending on the lender, you will assume principal and interest payments. Application for Construction Loan When applying for a construction loan, there are two things that lenders look at. Are you an owner builder who assumes the supervision and management of the construction process? Or Are you going to hire a licensed builder or contractor? These two things differ in the application process. Note that when you are going to assume supervision and management during the construction process, lenders will require more documents from you. This includes, but not limited to, certified approved plans, permits and licenses down to insurance policies. If you are interested in applying for a home construction loan, you can get in touch with a professional mortgage broker. They can help match you with the right lender to fit your needs. If you are interested in applying for a construction loan or an owner-builder loan, head to this page for more information.

What is Lenders Mortgage Insurance?
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What is Lenders Mortgage Insurance?

ByDarin Hindmarsh

If you have started scouting for a home mortgage, you must have come across the term Lenders Mortgage Insurance (LMI).  Lenders Mortgage Insurance is an additional expense that you need to pay after a home loan approval, under the following conditions. What is the Lender’s Mortgage Insurance (LMI)? This is an insurance that protects your lender in events of default on home loans. LMI is a one-time non-refundable fee that may be included in the loan amount or separately paid during the loan settlement. Refinancing a home loan will require you to pay for another Loan Mortgage Insurance upon approval and settlement of the refinance. In some cases, LMI can be refunded. It depends on the agreement of your lender and their LMI provider and if the loan is terminated earlier than the term of the loan. Often times, when lenders agree to lend customer money, there’s a risk that they may not get their money back when the customer faces financial burdens and are soon not able to make payments. Home loans usually use the same property as security. Even if this is the case, property value declines and may not be enough to pay for the outstanding loan. LMI can cover this financial loss when the lender sells the property. LMIs also allows buyers to save time in saving for a down payment for their dream homes. With an LMI, buyers need to pay as low ass 5% to proceed with their mortgage application. Loan Mortgage Insurance Providers In Australia, lenders usually use one of the two large insurance companies – Genworth and QBE. Some lenders in Australia have their own LMI products therefore not needing to get LMI insurance from either of these two big insurance companies. It is important to note that most home loans are being declined because the LMI provider rejected the application. These providers go through a thorough and strict investigation before they decide to approve any application. And if they see that you are not in good standing or find that your source of income is questionable, they can reject insurance anytime and therefore your loan is rejected too during the process. Many specialized lenders in Australia don’t use Genworth or QBE, where they rely on their own LMI product. These lenders can provide more leniency on your loan application and therefore better chances of being approved. How is Lender’s Mortgage Insurance Calculated There are many factors that can affect the cost of the lender’s mortgage insurance. It is a one-off cost that will come down to four factors in general: Typically, the lender will buy the insurance and will pass the premium to the borrower with a non-refundable fee and due upon settlement. As an option, LMI could be added on top of your total loan amount. However, this move makes an impact on your monthly repayments as it has increased the money you owe. To give you a rough idea of how much an LMI cost, you can use Genworth LMI calculator, where if you are taking out a loan of $300,000 and eyeing on paying 5% on deposit, this would cost you $7,610 in insurance at a loan term of up to 30 years. Lender’s mortgage insurance could be a huge amount to pay. Therefore, just like many borrowers, it’s worth scouting for alternative strategies to get away with LMI cost, if possible. How to Avoid Lenders Mortgage Insurance We already know that LMI could be a hefty price to pay. So let’s take a look at alternatives on how to avoid this when taking out a home loan. A definite way to avoid this is to save up for your deposit, at least 20% of the property value you are eyeing to purchase.If you have a family member with good credit standing, you may ask them if they could stand as your guarantor for the loan.Improve your creditworthiness (if at the moment you have a poor or bad credit score). If you are considering a guarantor, it’s important to know that your guarantor will have to understand that lenders will look at your guarantor’s property as a security for your loan. Also, if you are not able to make settlements, your guarantor is obligated to make payments on your behalf. In other words, they are going to assume much of the responsibility on the loan as much as you do.

My Bad Credit Car Loan Was Rejected: What’s My Next Step?
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My Bad Credit Car Loan Was Rejected: What’s My Next Step?

ByDarin Hindmarsh

Your bad credit auto loan application was rejected. This is mostly bad news. Applying for a second chance loan is not easy. It requires several documents that prove your “worth” as a borrower. The process of assessment and approval also takes longer compared to a regular car loan. However, after all your efforts, your application was rejected. What’s next? What To Do After a Bad Credit Car Loan Rejection Why is my car loan rejected? Banks and lenders refuse to grant approval for a regular car loan if the applicant failed to pass their set of requirements for a car loan. The same is true with bad credit car loans, although the criteria for approval would be different from a regular car loan. Second chance auto loans are for people with bad credit. This includes clients that may have declared bankruptcy in the past, has black marks and defaults in their credit profile as well as those individuals that have a bad credit score.  However, even with less strict requirements, chances are, you can still get refused for a loan. Here are some reasons why your bad credit auto loan application is rejected: 1. You have too many defaults in your credit report Defaults on your credit file is not a big deal for second chance lenders most especially if they have been around for more than 3-5 years on your credit history. The longer they are in your credit history, the less likely they become insignificant. Several defaults that have been around for a year or less creates a bad impression for you as a potential client. Such details indicate that you are still in a bad place in terms of your finances. 2. Insufficient income to repay a loan Non-conforming lenders will still check your capacity, as a client, to repay a bad credit car loan. Even with a better credit score and fewer defaults and marks on your credit history, it is still important to see if your borrowing power is enough to pay for the car loan that you seek. If a lender sees that your salary and current financial obligations are not within a certain percentage that makes it feasible for you to repay an auto loan, your chances of rejection increases. By law, it is not also allowed for a lender to lend you money that you can’t afford to pay. 3. You failed to do your research Prior to applying for a bad credit car loan, you should have done your research to increase your chances of getting a car loan approved. If you failed to read our earlier article Top 11 Tips to Follow for Bad Credit Car Loans Guaranteed Approval, this is the time to do so. You are already considered as a client with bad credit. Failing to be aware of what increases your chances in getting a car loan and complying with the necessary steps can be considered as the culprit behind your failed bad credit auto loan application. Can I re-apply for a bad credit car loan after being rejected? Yes, you can! But, this time around, it would be better to prepare, apply the 11 tips we mentioned above and go over these helpful videos to increase your chances of getting a bad credit car loan approved. These additional tips can also help you increase your chances of getting a bad credit auto loan approved the second time around. 1. Ask your lender why your application was disapproved Lenders are more than willing to inform you about the issues and problem that lead to the disapproval of your loan. Take these points constructively and improve in these areas to get better chances or even guaranteed approval on your next application. 2. Improve your credit Review your credit report. Are there areas where you can work on to improve? Work on them. It would be advisable to try re-applying for a bad credit car loan a few months after being rejected. Too many inquiries that lead to a rejected loan application are also noted on your credit report. You do not want lenders to see this the next time you apply for an auto loan. Get rid of defaults that you have in your credit report. Pay your debts and pay your bills on time to improve your chances of getting car finance. 3. Save for a bigger deposit A bigger down payment for a car purchase means that you’ll need a lower amount for your loan. Higher down payments create the impression that you are indeed financially stable to repay a loan. You’ll be able to save more in terms of interests when you pay for a higher deposit. 4. Go for a cheaper car loan If possible, go for a car model that is cheaper than your first option. Your current income may not be enough to qualify for the car that you really want. Your re-application would have better chances of approval if you opt for a loan workable with your current finances. 5. Improve your finances Getting a better paying job, asking for a raise or having a sideline as an extra source of income gives you extra cash and extra line of credit. Use the extra cash to save up for your deposit, to get rid of debt or to simply build your income for whatever you intend to purchase in the future. A bad credit car loan rejection is not the end of the line. You can still re-apply for another bad credit car loan and get the approval that you need to purchase your dream vehicle. Intellichoice can help you improve your chances of getting a car loan approved. Call us today for assistance.

Bad Credit Car Financing FAQs: Answers to Your Common Bad Credit Car Loan Questions
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Bad Credit Car Financing FAQs: Answers to Your Common Bad Credit Car Loan Questions

ByDarin Hindmarsh

Bad credit car financing is open for people who would want to get a second chance car loan. Even with bad credit, it is still possible to finance a vehicle loan. Having bad credit does not mean that a person is financially incapable of purchasing a personal asset. Most of them had several missed payments or defaults that are still in their credit report despite being financially stable at present. Bad credit car loans are just perfect for people with bad credit but can repay a car finance. Just like regular loans, there is numerous information that you should be aware of when applying for a car loan. Your Bad Credit Car Loan Questions Answered 1. What is the salary required for a bad credit car loan? Your borrowing power determines your limitations on how much you can apply for a car loan. A higher, stable salary can get you a higher amount when applying for a vehicle finance. A lower salary can still qualify you for a bad credit car loan, but for a mid-range or low-priced car model. Different car loan lenders require different minimum salary amounts to qualify for a bad credit car loan. Typically, the average expenses of a single person with no dependents in Australia are around AUD 34,000. To be able to qualify for a car loan and to sustain a decent living while doing so, one should earn at least $5,000 to be able to qualify and repay a bad credit car loan. 2. How much bad credit car loan can I avail? Loan amounts start from $2,000 and can go as high as $30,000. Again, the amount you are qualified for depends on several factors. It depends on how high your down payment is, how much your borrowing power is based on your current income and how much risk banks and lenders see you as a client. 3. What is the average interest rate for bad credit car loans? Interest rates for bad credit car loans range from 5-6%. This varies according to the lender where you intend to apply for a car loan. Getting a car loan specialist will help you pick a lender that has the most value for your money. You may need an expert’s advice in determining which lenders is most cost-efficient, based not only on the interest rates but as well as the other fees that may be included during the application as well as the actual release of the auto loan. 4. What other fees are included in a bad credit car loan? Some banks and lenders require monthly fees and application fees to process a bad credit car loan. Monthly service fees are usually below $10 a month. Application fees are one-time payments and can start anywhere from $200 up to $470. Some lenders do not require a monthly service fee. Be sure to include this in your computation when comparing bad credit car loan offers. A higher interest rate may not necessarily mean a costlier option when you add application fees and service fees in the equation. 5. How much down payment do I need once my bad credit car loan is approved? Some lenders offer a no down payment car loan. However, it would be ideal to pay for a down payment, as high as you comfortably can to reduce monthly payments. A higher down payment also comes with lower interest rates. On average, the minimum down payment would be around 10-20% of the total cost of the car. For a $2,000 minimum bad credit car loan, you will need to prepare $1,000-$2,000 as da own payment. 6. How long does it take before a car loan is released? Regular car loans can take as little as a day or two to get approved or results. Bad credit car loans do not work in the same way. Lenders will begin processing the application after receiving all the documents required. Intellichoice Finance can assist you in tracking down all the information and documents needed to process your loan as well as updates on the status of the application. It may take longer than the regular auto loan, but results will be available the soonest time possible. 7. What do I do when my loan gets rejected? Ask your lender or your car loan agent why your loan was rejected. Lenders are honest enough to give you the information that will help you increase your chances in securing a bad credit car loan. Take these bits of advice into consideration and consider improving in these areas before trying to apply for another bad credit car finance. It would be ideal to wait for at least a few months before re-applying. Several loan inquiries may also appear on your credit file report. This will create a bad impression on you instead of improving our chances of getting a bad credit car loan approved the second time around. Spend this time building your credit score and saving for a car deposit. Knowing the right answers to your queries about bad credit car loans does not only inform you about second chance loans. It also gives you ideas on how to increase your chances of getting approved as well as in getting the best possible deals for your car finance.

How to Compare Home Loan Rates Effectively
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How to Compare Home Loan Rates Effectively

ByDarin Hindmarsh

Compare home loan rates to get the best rates possible for your home loans. There is a huge number of lenders in Australia. Comparing rates is one of the most critical parts of home loan shopping because it will eventually affect the amount you pay in the long run. However, the lower interest rate doesn’t always mean it is the best loan for you. There are other factors to consider such as the comparison rate, features, and fees. A standard variable home loan at Bank A has an interest rate p.a. at 5.22% and Brand Y Lending at 5.58%. Bank A appears to be lower however application fee at $600 with $8 recurring monthly fee and Brand Y Lending is at $350 with $10 recurring monthly fee. Bank A offers 80% LVR and Brand Y Lending offer 90%. While Brand Y Lending looks higher, the application fee is at $350 compared to a $600 application fee from Bank A which is almost half the fee of Brand Y Lending. And even if Brand Y Lending has a higher interest rate it offers a lower application fee and a higher LVR. Low interest rates can be catchy but always look beyond interest rates to determine the real deal. Compare Home Loan Rates by Understanding Three Factors 1. Understand the Types of Interest Rates in the Home Loan Industry The very first step in comparing home loan rates is to understand loan types in the home loan industry. If you have started research on home loan rates, you may have noticed mentions of various interest rates. These terms could be new to you or terms that you have come across but not really understand what it means. In order for you to choose the best interest rate applicable to you, you will need to have a good understanding of these various home rates. Before going any further, it is important to know that the Reserve Bank of Australia controls the monetary policy thereby setting the cash interest rate or interest rate on overnight loans between banks. Below is a brief rundown of common interest rates you need to understand. Variable Rate. An interest rate that fluctuates according to the changes in cash rate and other factors affecting the market. Note that cash rate does not always decrease but it does increase from time to time. When the cash rate decreases it can considerably cut down your payments by many points. Fixed Rate. An interest rate that’s locked in a certain number of years, typically from one to five years. This protects you from possible interest rate hikes in the future. The downside of this type of interest rate is that you may not be able to take advantage of cash rate decreases within the lock-in period. Partially Fixed Rate (Split Loan). This type allows you to pay a fixed interest rate on a portion of your loan where the remaining portion of the loan assumes variable rate. If you have a $300,000 loan and decided to go for a split loan, then you may have $200,000 assume a fixed rate while the remaining $100,000 will assume a variable rate. Introductory Rate. This is a discounted interest rate provided usually in the first one or two years of the loan. This is specially offered to first time home buyers. After the introductory period is over, you will automatically revert to a standard variable loan. 2. Understand How Loan to Value Ratio can Impact Interest Rate Your loan to value ratio can affect your interest rate. This means that if you are intending to borrow more than 80% of the total property value, you are considered a high-risk borrower and therefore lenders will impose a higher interest rate on your loan. The general rule is the higher your LVR, the greater is the risk to the lender, therefore the interest rate is also higher. Note that some lenders impose a higher interest rate above 80% LVR. So it is essential to make the right computations to work on a fairly reasonable interest rate on your loan. To compute your loan to value ratio, divide the total loan amount by the asset value. So if your asset value is at $450,000 and the total loan amount is $360,000, then your LVR is at 80%. 3. Understand Comparison Rates If you have visited various loan comparison websites already, you usually see comparison rates beside the interest rate. Comparison rates are a rate that allows you to work out the possible cost of a loan. It helps you compare loans from various lenders. A comparison rate is computed based on a loan amount of $150,000 with a loan term of 25 years and may include other related fees. It is singled out into one percentage figure. This single percentage comparison can provide you an overview of the how the loan will look like. An even quicker scan can tell you if there are upfront fees and ongoing costs. If the comparison rate is higher than the interest rate, it can indicate that there are other fees associated with the loan. If the comparison rate is very close to the comparison rate, this may mean that there are lesser fees associated with the loan. Here is a table of comparison to show a quick scenario: Lender Interest rate Comparison rate Fees & other charges Lender 1 5% 5.5% .5% Lender 2 5.25% 5.35% .1% At first glance, Lender 1 with an interest rate of 5% looks ideal. But if you look further, fees and charges are at .5% compared to Lender 2 who appears to have a higher interest rate but offers much lower fees and charges. Therefore, Lender 2 will cost much less than Lender 1 in this scenario. While comparing interest rates is an important factor in determining the best home loan for you, lower interest rates don’t always mean the best loan. This means that there are other factors affecting the cost of the loan when all other points are factored in which includes features, other fees, and LVR. When all of these factors are considered, you can come up with the best loan that will suit your needs.

Personal Loans: Comparing for the Right Choice

Personal Loans: Comparing for the Right Choice

ByDarin Hindmarsh

Personal Loans: Comparing for the Right Choice At some point in your life, you may end up in a situation where you badly need a personal loan. You might need instant cash for unexpected situations like a medical emergency. Weddings, birthday parties or a downpayment for a car purchase may also require you to file for a personal loan. Once you consider your application, you will be overwhelmed by the number of personal loans available. The very first step you will need to take is to find the right loan that suits your needs. You don’t want to get the wrong loan or you may end up paying unnecessary fees and interests. Personal Loan Options: Which One is Best for You? What are Personal Loans? Personal loans are “unsecured” loans since they’re not supported by collateral like your car or your home in the case of a mortgage or an auto loan. Loan companies will work with your credit rating to help evaluate if they could give you a personal loan including interest rate. Contrary to what others perceive, personal loans can be used in a multitude of ways. It can be used to fund a small home business or to fund a dream vacation. Medical emergencies can be your reason behind a personal loan application. However, you can also apply for a loan for planned medical procedures like a nose lift or a bust augmentation. As the name implies, personal loans can be used for a wide array of reasons, personal to your needs as well as your wants. How do Personal Loans Work? A personal loan enables you to fund personal acquisitions, merge financial debt or for investment reasons. The funds are paid to you either through lump sum or in the form of a credit line. The term of repayment could be anywhere from 1 year to 7 years. Although personal loans are by nature non-secured or non-collateral loans, you may still be asked to offer some kind of collateral depending on your loan purpose. Personal loans are usually offered from $1,000 to $80,000. What makes a particular type of personal loan the best type of loan for your current needs is its relevance to your current financial dilemma or personal wants. For example, it would be ideal to get a 95% LVR home loan instead of having to apply for a personal loan that will cover 20% of your home loan deposit. Do the math or use a loan calculator to identify whether a personal loan is indeed the most cost-effective option compared to a home loan, or a short-term loan from a lender. Financial calculators help you better understand which rates and payment terms are indeed cheaper and more convenient for you. Another example would be a cosmetic surgery. You can charge your credit card for a cosmetic operation. However, it would be ideal to compare if charging it on your card would be indeed cheaper, preferably in the long run, compared to applying for a personal loan to fund your operation. The key to landing with the best personal loan is comparing. Always do your research and compare to get the best options possible for you. Here are other simple tips on how to pick the right loan suitable for your needs. Compare Interest Rates Compare interest rates. This is a good benchmark to help you decide which loan is right for you and find out which one is competitive. You will want to look at the loan’s comparison rate because this will give you an overview of the total cost plus its fees and charges. Know the terms and conditions. The terms and conditions are also among the deciding factors if the loan is right for your needs. Read about the terms and conditions of the loan from the lender’s website and make a comparison. Identify if such loans include on the spot interest deduction or other fees that would make it more expensive compared to a different loan that comes with a higher interest rate but no additional fees for processing. A Loan Repayment Calculator may help you see the difference. Flexibility of Repayment Most loan companies give you the option to pay weekly, fortnightly or monthly. This is usually done to adjust repayments to your pay schedule, however, not all loan companies may follow this. Also, you must try to find out if you can make extra payments without incurring penalty or restrictions. It also helps to find out if you have the option for early payment before the term ends. Some banks and lenders welcome advance payments too. Such payments can help you pay for your loan faster and save a few hundred dollars in interests along the way. This Extra Repayments Calculator can help you compute how much you can save for paying advance amounts for your loans. Loan Manageability You will want to find out how easy or simple it is to manage your loan. Most loan companies offer online account management but not all of them do so this is one factor you want to consider. You may even be asked to personally pay the loan instead of utilizing a direct debit. Know the loan company contact information and mediums of customer service – email, chat, phone, or social media. Read testimonials and reviews about the lending company or bank you are interested in applying for a personal loan. Do they have friendly and attentive customer service? Is communicating with their clients one of their best assets? These are a few factors you should consider adding in your criteria for finding the right personal loan company or service for your need. A Loan Within Your Means Determine whether the actual monthly payments will be feasible on your monthly budget. You can use a personal loan repayment calculator which is widely available online and should be available at your bank or lender’s website to see what actual repayments you should be paying each month. This allows you to plan a schedule and to create a monthly budget that works for the whole family. A Budget Planner might help you identify if your financial capacities, at present, can handle repaying for a personal loan without having to affect your regular personal finances negatively. Ensure that you use the funds to serve its purpose. Some financial loans, particularly secured personal loans, have limitations on how you should use the loan. For instance, should you get an auto loan, you can only spend the funds on a car or vehicle purchase and that the vehicle has to be eligible. In the same way, some loan companies will not likely allow you to use personal loans for business uses. Set your criteria, get as many options manageable for you and then compare. Following a process before jumping into an approved personal loan for you saves you from unnecessary fees and interest rates you might incur in the future.

Low Deposit Home Loans: Is This The Right Mortgage for You?
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Low Deposit Home Loans: Is This The Right Mortgage for You?

ByDarin Hindmarsh

Low Deposit Home Loans: Is This The Right Mortgage for You? It can take many years for an average working individual to save money to use as a deposit for a home loan. Considering other living expenses and debts, the likelihood of an individual to invest in real estate seems too far from possible. As real estate rates continue to rise every year, many individuals can be disheartened from chasing their dream to own property because it becomes financially difficult for them. Four bedroom houses in Forestdale, Western Australia has a median price of AUS 1.8 million, a 26.4% growth from last 2017. Compared to 4-bedroom homes located in Deebing Heights. QLD, prices have increased by 21.6% but home prices are at AUS 465,000 on average. With home prices on the upward turn in terms of prices, regardless of what State you are located, having enough money to secure your first home can be really challenging. If you are a first time home buyer or if you have a tight budget and find it hard to save for a home loan deposit, then low deposit home loans can be just right for you. These type of home loan will allow you to borrow more than 80% of the property value. Let’s look further. What are Low Deposit Home Loans? Low deposit home loans, also referred to as high Loan to Value Ratio (or High LVR) loans. Such home loans are designed for individuals trying to avail of a home loan but not able to meet the standard 20% deposit. This type of loan can allow 5 to 15% deposit. However, expect the interest on the loan to become higher compared to the total value of the home. While loan companies can offer to fund about 95% of the home value, that price is normally regarded as high risk. Consequently, potential borrowers are thoroughly checked out on their fiscal position and capacity to make monthly payments while living a comfortable lifestyle. July 2018 revealed a record drop of 44% in terms of banks and lenders offering 95% home loans. Tighter restrictions for high LVR loans from the Australian Prudential Regulation Authority (APRA) is one of the significant reasons for this, thus making it harder to secure low deposit home loans. However, with the right mortgage experts, you can still secure a 95% home loan. Intellichoice Finance connects you to this few, but reliable lenders that still offer low-deposit mortgages. It is important to note that even if these loans make it more affordable for future homeowners, monthly repayments and interest rates are higher compared to regular home loans. Also, there are fewer banks and lenders willing to provide loans with lower deposits. But this is certainly not always the case. There are some borrowers who can still get the same rates as a regular home loan and can even get access to better terms and deals. Read further to help you decide if this type of loan is the right mortgage for you. Benefits of Low Deposit Home Loans Drawbacks of Low Deposit Home Loans By looking into the benefits and drawbacks of Low Deposit Home Loans, consider your options. Is this the right mortgage for you? If you are not quite sure yet, contact a mortgage broker to get professional advice. Suffering from bad credit? Check out this article 5 Tips For First Time Home Buyers with Bad Credit for advice.

Types of Business Loans: Which One is For You?

Types of Business Loans: Which One is For You?

ByDarin Hindmarsh

Business loans come in many forms. There is a specified type of business loan that suits your business, your budget and your financial capacity as a small business or as a growing organization. Choosing the right type of business loan is essential. Such decisions help you avoid paying too much for a loan or too long. A good business loan is suitably personalized in terms of interest rates and payment terms to your business. Different Types of Business Loans a bank overdraft is a business loan feature that allows you to transact an amount above your approved overdraft limit without extra charges like an account overdrawn fee. Such banking feature may require you to pay for a monthly service fee depending on the type of the overdraft used. The interest will also be applied to the amount overdrawn. Additional charges are applied if the fees and charges are not paid on time. If a business is having a problem in maintaining smooth cash flow, this type of business loan might be ideal. If you would want access to a higher amount to finance your business, it would be ideal to get a secured business loan from a bank. However, it would be ideal to apply for a secured business loan if our business is already secured and successful. Such type of loans requires collateral, such as assets to be able to secure a loan from the bank. If you are not capable of repaying a loan for a long period of time, this type of business loan is not for you. Small and medium businesses can secure business financing through an unsecured bank loan. Such type does not require any collateral and is limited to a maximum of 12-months in terms of repayment terms. Repayment can be done daily or monthly. If you require a small amount to cover the expenses for your business, an unsecured business loan would be ideal for you. A business credit card works like a regular credit card except for the fact that is used for business purchases and is under a business account. It has higher credit limits compared to personal credit cards. Bank guarantees are a form of security that a business can offer to its clients or suppliers. Under a bank guarantee, the bank shall provide payment to the recipient with the amount guaranteed on the written demand. Business can meet payment obligations to their suppliers while keeping a cash deposit under the company name with the bank. Business term loans are fixed-rate loans that can be repaid in a year in minimum or up to 5 years maximum. Loan amounts start from $10,000 as the minimum. If a business is looking into increasing its capital or acquiring huge assets for a business, a business term loan would be an ideal option for them. Such types of loan can be amortized, depending on your choice. A bill of exchange is a written raft wherein a seller requires a buyer to pay on demand or through a fixed future time a determined amount of money specified by a person to the one who purchased goods or services. Lease financing is a form of rental agreement. This can be mostly related to car lease finances. A financier basically purchases a car and charges a monthly repayment scheme to the end user. The repayment is within a term period. At the end of the term period, the end user may pay a negotiated amount with the financier to be able to claim full ownership of the vehicle. The financier may also opt to retain ownership of the vehicle. Negotiation is usually agreed upon between the financier and the end user at the end of the payment term. Asset finance loans is a form of a secured loan. It is secured by the asset purchased. For ga rowing business who would want to invest in equipment to improve cash flow, asset financing might be a better option. At the start, for some, at the end, of the loan term, the borrower may choose to finance to own or finance to return the acquired asset. Personal loans are short-term loans that can be used in many forms. It can be used for emergencies, school fees, for a car deposit, additional wedding funds, medical expenses or any other unexpected expense that the borrower may see fit. Personal loans are usually for clients with good credit standing. A regular source of income, backed with employment confirmation, pay slips and other financial documents are required to apply and qualify for a personal loan. Trade finance is usually equipped for exportation and importation trade transactions. Loans used for this type of business loan can be used to purchase goods or services. It can also be used to pay for goods and services purchased abroad.

What are the Pros and Cons of Car loans?
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What are the Pros and Cons of Car loans?

ByDarin Hindmarsh

Are Car Loans Advantageous or Disadvantageous? Car loans like every lending product can have a positive impact on your life if managed properly. But, if mishandled, a car loan will end up to be an expensive mistake that may cause you financial and emotional stress. Thus, it is important to take the time to review the advantages and disadvantages of getting a regular car loan or bad credit car loans. Why is Getting Car Loans Advantageous? The main benefit of car loans is that it offers you immediate access to a vehicle or a better vehicle that you simply wouldn’t be otherwise ready to afford. This is extremely valuable if you need a car for work or family commitments. Another benefit is that it permits you to build your credit profile assuming you make all the repayments on time. Applying for car loans makes it easier to acquire an asset, even without enough cash to purchase it instantly. You can also utilize your financial resources for other purposes, like a business or a home, all while paying for your dream car. Disadvantages of Availing Car Loans The main disadvantage of a car loan or any loan product is that you simply ought to get hold of the privilege in the form of interest and fees. In effect, you are buying money from a lender. Failure to comply with the terms and conditions stipulated in your loan undertaking may cost you higher than you expect. If you’re taking out variable rate car loan the interest rate may increase due to several factors. If you miss a repayment or pay off your loan ahead of schedule, you would possibly be charged with penalty fees. Failure to repay can damage your credit score and may lead you losing ownership to this acquired asset. Thus, it would be essential to understanding how car loans work and if your current financial commitments can accommodate regular payments for an approved car loan.

Loans for People With Bad Credit: Bad Credit Mortgages and Financing
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Loans for People With Bad Credit: Bad Credit Mortgages and Financing

ByDarin Hindmarsh

Do you have a bad credit and wondering if it is possible for you to take out a loan? It is possible to get loans for people with bad credit. On the other hand, you will have to do more research on lending institutions willing to work with you. You are would want to find a lender that would look beyond your credit history and provide you with reasonable rates and fees without hidden charges. While bad credit loans are available, due diligence is a must when finding the right lending company for you. Note that having a bad credit doesn’t limit you to payday lenders or title loans. Avoid questionable lenders as it may lure and trap you to more debts than what you already have. Before moving any further, it is important to define what is bad credit. Read on further. What is Bad Credit? In general, bad credit represents a list of previous payment defaults on your credit contracts, leading to the lack of ability to get accepted for another new credit. Below is a clear picture of where bad credit stands in general credit scoring (scoring may vary from every credit reporting agency): Bad credit is generally having a credit score at 300 to 499. You may have a bad credit many reasons. Reasons may include but not limited to late payments, payment defaults, identity theft, not enough credit history, bankruptcies, state and federal liens, and divorce resulting in bad debts. Credit bureaus or credit reporting agencies gather your credit history and put it together into a credit report which is accessible by you or any lending institutions upon request. Every single agency keeps its very own individual report, and your credit rating can differ from the other, because of errors or overlooked details. Despite the fact that you will see the records and background for every actual credit accounts on your credit history, your credit score will not be visible on your credit report. What are Bad Credit Mortgages? Bag credit mortgages are home loans designed for people with bad credit. These type of loans are offered by specialized lending institutions or specialist lender. They consider people who need financial help from poor to bad credit history. Bad credit mortgage loans are basically a second chance loan provided to many Australians experiencing bad credit rating and are not able to meet regular guidelines stipulated by banks and other top financial institutions. To get started with bad credit mortgages, it is always advised to talk to an expert loan agent or mortgage broker. They can help match you with the right specialized lending institution for your needs. What is Bad Credit Car Financing? Bad credit car financing is a loan designed for people with bad credit but needs to take out a car loan for their needs. As described above, Bad credit generally indicates you have not paid your financial obligations on time or failed to pay them at all. When you have a bad credit, you will have difficulty in applying for a regular car loan. The good news is that specialized institutions can also extend bad credit car financing however with some conditions. Bad credit loans usually have higher interest rates because lending institutions may see you as high risk. The higher the risk the higher the interest rates. A simple guide to help you get started on a bad credit loan 1. Get a copy of your credit score and understand what it means.2. By all means, avoid payday loans.3. If your credit is worse than you thought, fix and build it.4. You can consider personal installment lenders.5. Go for a secured loan.6. Consider joining a credit union.7. Get a cosigner with good credit standing. While the guide above can help you get started to get a bad credit loan, it is always at its best to stress on due diligence. Research on the best-specialized lenders who can help you with your intent to get a loan. Gather all your financial information to prove your employment or any source of income. Finally, you may want to contact a loan specialist or a mortgage broker to help you throughout the process. There are many loan options available even for people with bad credit. Here are some articles you can check for guidance. How to Apply for a Bad Credit Equipment Finance 5 Tips For First Time Home Buyers with Bad Credit Top 11 Tips to Follow for Bad Credit Car Loans Guaranteed Approval

Bad Credit Car Finance: Advantages of a Second Chance Car Loan
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Bad Credit Car Finance: Advantages of a Second Chance Car Loan

ByDarin Hindmarsh

If you have bad credit on file, your chances to take out a loan is too low. But know that even if you have a low chance of getting a loan from banks, you can still get car financing depending on your financial situation. Many car dealerships are willing to extend car financing to people with bad credit, however, the interest rate could be high or may require a higher deposit on the loan. Bad credit car finance is a second chance loan designed to provide the car loan to people with bad credit or to people who don’t meet the requirements of the bank. There are equally advantages and disadvantages when getting car financing with bad credit. In this post, let us lay out to you the advantages of a second chance car loan. Advantages of Bad Credit Car Finance 1. Investment on tangible capital Among the best benefits when getting a bad credit car finance is that it comes with a tangible capital – the car itself. The car is a very useful tool that allows you to get a job and practically live your life while taking you anywhere with comfort and ease. With bad credit car finance, you are making a worthwhile investment but also a chance to become more functional within the community. When you have this type of asset, this proves that you can make wise investments and improve your creditworthiness. 2. Reasonable term investment Bad credit borrowers favor car financing as their easy route to fix their credit because it doesn’t take too long to help fix your credit because of its flexible loan terms. You can get a three-year to seven-year loans that borrowers can work with. With the total cost of the car on top of the interest, it’s evenly spread throughout the life of the loan. 3. Easy to secure Bad credit loans are easy to secure in contrast to regular loans that requires too many requirements to be approved. Bad credit car financing is targeted at individuals with credit not acceptable to regular financial institutions like banks. While credit car lenders are taking a higher risk of trusting you despite your credit, the exchange is the higher interest rate. A quick and easy endorsement could also help minimize more damage to your already suffering credit score. An easy approval indicates only one request for your credit history and a lesser chance of too many rejections reflecting on your credit record. 4. The loan is adjusted to your budget Bad credit car lenders understand that their clients are generally not in the very best financial position. Thus these types of loans are adjusted so that it can fit your financial situation however based on a common agreement that you will be paying higher interest rates compared to regular auto loans with good credit standing. By keeping a low monthly expense, you can have a better chance of being able to make on-time payments while juggling your monthly budget. This also allows you to get yourself back on solid financial standing. This is particularly crucial for individuals hoping to rebuild credit because making monthly installments promptly is crucial the process of building back your credit. From this point of view, it may be beneficial to cover the higher rates of interest today if that delivers the opportunity to acquire better rates in the future. As soon as your credit rating is rebuilt a little, you can consider reapplying for refinancing for your loan to make it more affordable. 5. Bad credit car finance helps rebuild your credit A second chance car loan is by its name a second chance to fix, rebuild, and improve bad credit. As you make regular on-time payments, your credit score is rebuilding and improving over time. This is your chance to prove yourself to the lender. It provides future lenders some kind of guarantee that you can take responsibility for the loans you are about to get. Unlike novated lease (a loan taken out with the help of your employer), bad credit financing can actually help you rebuild your credit as repayments are directly coming from you which will soon reflect on your credit history. By taking some easy steps, like getting a feasible bad credit car loan, you can start repairing your bad credit. With this type of car loan, you present yourself a simple way to demonstrate that you are more responsible for your financial obligation. On top of that, you are able to make wise investments in a tangible product which is the car itself. Can you afford a car loan? This article Determining Your Buying Power: Can You Afford A Car Loan? may help you understand if what you earn is enough to repay car finance. Guaranteed approval for a second chance car loan is possible if you follow these tips from this post Top 11 Tips to Follow for Bad Credit Car Loans Guaranteed Approval

Top 15 Investment Advice from Real Estate Experts
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Top 15 Investment Advice from Real Estate Experts

ByDarin Hindmarsh

Among the biggest decisions in your lifetime is investing in real estate property. With real estate, you know your money is secured because it is linked to a tangible asset that grows in value through the years. However, wrong investment choices or bad timing in investing in a property can lead to unlikely results. Every investment will have to be well thought and done right. This is even especially true for real estate properties. In this post, we have compiled 15 investment advice that may guide and help you create the best choices when buying or investing in a real estate property. 15 Investment Advice for the Rookie Realtor 1. Do your research Gain some knowledge in the real estate industry. You don’t really have to go back to school to achieve this. Read books, do your research to understand the common language being used in the real estate industry. You’d like to get away from sources that promise get-rich-quick programs but you’d like to invest your time reading about real tangible investments with value. Attending seminars and short courses about real estate can also help you get started on the right track. 2. Consider your budget Before making an investment, you will want to ask some important questions – How much budget do you have? Do you have enough savings for a downpayment? What are the requirements needed to become eligible for an investment? Investment requires money and therefore you will need to look into your financial position so that you know how far you can invest. 3. Socialize with real estate industry experts Speak to someone who has great knowledge about investing in real estate. Industry experts could be anyone from a successful real estate agency or a landlord who have years of experience in property investment. Surround yourself with people you want to learn from. 4. Abide by the rules imposed by the State law It’s a must to understand local real estate laws to make sure that you are abiding by the rules and regulations imposed by the law. You can start by talking to real estate experts to know what is expected from a specific area of investment. 5. The Internet is also a good resource for information Information is abundant today on the web and you may probably get the details most appropriate to suit your needs using a little research. One more way to broaden your knowledge is to talk to people about the investment property you are interested in. You can watch Youtube videos of real estate experts in your area, listen to podcasts, read books or read blogs and real estate news on a regular basis. This way you will get enough knowledge of how the market works in that area. The more information you gather, the better it is for you to make investment choices. 6. Scouting for the right neighborhood Location among the most essential considerations to take into account. If in-state real estate properties do not meet your goals, it nice to look at out-of-state options too. Invest in geographical areas where the demand for rental property is high like real estate properties near a university belt. However, note that there could be difficulty in monitoring rental conditions if this will be the case (considering that u-belt property is out-of-state). 7. Look for properties that are on wholesale Look for cheap deals that are priced below the true market value. You can do this by buying a house at a great deal and them renovate the house to make it twice worth the selling price. Find a property that is undervalued then revamp it. This technique can outweigh the cost of renovations done. However, you will need a professional inspector to make assessments on the condition of the property in order to make estimations of the expenses that you may incur. Be wary of a property that may ask for more expenses on repair and renovations. House-flipping is a lucrative real estate business if done correctly. 8. Understand your tax benefits and deductions When you have a rental property, it is a business. So be sure to be familiar with the tax benefits as well as the deductions associated with real estate investment. There are lots of tax advantages linked to real estate investments that will provide you with another motivation to buy your very first rental property. Also, you will surely incur expenses that you can deduct. Common tax deductions are not limited to the following – mortgage and travel expenses, repairs, depreciation, and insurance. 9. Improve your credit score Your credit score is very important. You will want to have a good credit score for you to get any mortgage loan at good terms and interest rates. Most investors today borrow money to invest in real estate properties. So keep your credit score in good standing. Work hard on improving it because it will reward you in all your future investments. 10. Follow the 1% golden rule in investing In every investment, you will always want to keep in mind the 1% rule. This means that with every rental property you own, it must make at least 1% of the total amount you pay for it on a monthly basis. For instance, if your property is at $300,000 worth, you will want to make a monthly rental income of $3,000 a month. Ensure that your choice of rental property worth its value in the long run. 11. Stay informed It is very important to be updated on the economic trends of the real estate industry. This will help you when it is time for you to buy or sell based on the conditions of the market. Get to know important real estate ideas and be informed about what’s the latest in the country’s housing market. A well-informed investor makes wise decisions that bring back great financial returns in the future. 12. Don’t count on a verbal agreement until you signed a contract When investing, it is always proper to count on black and white deals. Agreements that had been closed only via verbal agreement is not a solid agreement. So get it solidified by putting everything into writing. 13. Employ the ideal real estate agent to work with you There are many real estate agents but only one could be the right fit to work with your needs. Look for the right one through recommendations from close family and friends. Choose a real estate agent with an excellent track record and one who can listen to your needs. 14. Build a Plan Investing in real estate will require you to have a plan to guide you towards your goal. Your plan doesn’t have to be detailed. You will just need basic guidelines. Your plan should include how much is your budget, your type of investment, your minimum ROI, and your short and long-term goals. 15. Consider a few important computations Planning needs to contain precise and reasonable figures to base your estimates and your goals. A few essential factors to consider in your plan is the return on investment (ROI), cash flow, cap rate, rental income, rent change, and taxes. These variables are essential to make the right financial commitment. Start sure when looking into starting a career in real estate investing. There are many ways that can lead you to the road to success and a lot of considerations that can make or break your investment. The bottom line is equipping yourself with the knowledge and a group of experts that can help you in your investment venture.

How to Apply for a Bad Credit Equipment Finance
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How to Apply for a Bad Credit Equipment Finance

ByDarin Hindmarsh

How to Apply for a Bad Credit Equipment Finance Are you looking for equipment financing to help grow your business but worried because you have bad credit? If you have bad credit, the process of getting an equipment loan gets a little bit more difficult. Thankfully, many loan companies provide bad credit equipment finance in Australia. This type of loans is designed to match your specific requirements. What is a Bad Credit Equipment Finance? Let’s first define what equipment finance is. These are small business loans that provide financing for your choice of equipment to help grow your business. Most equipment loans are collateralized which means the lending company will use the equipment to secure the loan. Bad credit equipment loans are also equipment loans, however, they are designed especially for people with bad credit. While banks may not offer bad credit loans, there are specialized lending companies in Australia that provide this type of loan. So, your very first step is to scout for lending companies in Australia that look past your credit history but into your capacity to pay. Intellichoice Finance can help you connect with the right banks and lending companies that can accommodate your financing needs. How to Apply for Bad Credit Equipment Finance? An application for bad credit equipment finance follows the same process as traditional loans. You will need to submit a fully accomplished application form and other supporting documents to confirm your financial standing. Loan companies will evaluate your application after which decide whether or not to approve your loan. What documents should be submitted? Look for specialized lending companies who offer bad credit business loans. As mentioned earlier in this post, getting financing from a bank when you have bad credit is not an option. Banks are very strict when it comes to loan applications. In fact, banks require at least a credit score of 700. Your best option is to look at lending companies who specialize in providing loans to individuals or businesses with poor or bad credit. Obtain a copy of your credit score. You will need to get a copy of your credit file to confirm your credit score. Your credit history can verify your financial history and can provide you with information on ways on how to improve it. Work on improving your credit before applying for a loan. This will help lenders see your effort beyond the numbers. You may also want to consider working with a credit repair service to help you increase your credit standing. Provide collateral to secure the loan One of the most effective ways you can balance a bad credit is by means of having some type of security to provide loan companies. With bad credit equipment finance, you don’t have to use your house or your car to post as collateral. You can use the same equipment you’re looking to purchase to secure the loan. And because there’s collateral securing the loan, lending companies will look beyond a bad credit score. Bottom Line Bad Credit Equipment Loans can help many individuals hoping to grow their business and create a better income for the family. While the application can be tricky, you have a better chance of approval if you choose a lending company who have tailored loans specifically for bad credit. And since all equipment loans are collateralized loans, you have a higher chance of approval. If still in doubt, you can contact a loan specialist to help match you with the right lender for your needs.

Buying a Property with Your Superannuation: Pros and Cons
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Buying a Property with Your Superannuation: Pros and Cons

ByDarin Hindmarsh

Buying a Property with Your Superannuation: Pros and Cons Superannuation in Australia is money set aside by the employer throughout the working life of an employee meant for retirement. The money can only be withdrawn in very specific circumstances such as during retirement at 65 years of age. May Australians have become used to the idea of putting aside money for their retirement. This was since the introduction of the compulsory employer superannuation contributions under the Keating Labor Government in 1992. With this cause, several Australians have taken the step further to invest more than the required amount. Eventually, they have started to seize the opportunity of taking direct control of the funds through Self Managed Super Fund or SMSF. For many, the attractiveness of an SMSF is its capacity to be utilized for property purchase, the tax benefits, and control over your funds. On the other hand, it also requires a lot of planning and continuous attention to make sure it is managed effectively and that the policies are met all the time. Pros of Property Investment Using Superannuation A few of the considerable advantages of purchasing property through your superannuation are as follows: Cons of Property Investment Using Superannuation The disadvantages are closely related to buying a property outside the security of an SMSF. This includes the following: There are various considerations to take into account when buying a property using your superannuation. Like any investment purchases, careful planning should be considered. It is best to seek professional help. Consult an attorney and a financial planner when it comes to using SMSF to acquire property for investment.

What is Commercial Property Finance?
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What is Commercial Property Finance?

ByDarin Hindmarsh

Commercial property finance can be defined as a loan type used for acquisition or development of commercial property. This includes a factory, a warehouse, an industrial land, an office block, a shop or a store. A commercial property loan can be used to buy a newly developed commercial property or an existing commercial property. The loan can also be used for any future developments and renovations. These forms of loans are generally used and provided to businesses and not offered to individual borrowers. Who can take out Commercial Property Finance? How Can Commercial Property Finance Be Used? Security A commercial property loan makes use of the commercial property concerned as security for the loan. It can be anything commercially inclined other than a residential property. Any building structure or parcel of land utilized for business is recognized as commercial property. Generally, there are three types. These properties are acceptable as security for commercial property loans. Deposit Commercial property loans will need a deposit or a down payment, however, the percentage is determined by the type of loan and property used to secure the loan. For instance, a low doc loan will ask for a higher deposit. Advantages and disadvantages of Commercial Property Loans The advantage of a commercial property loan offers low-interest rates compared to other finance types. The Commercial property alone is sufficient security for the loan. The disadvantage is that there are more documents needed and the process is slower compared to other loan types. Types of Commercial Property Finance Property Acquisition Finance This loan type is taken out to purposely finance a purchase of commercial properties. Repayment is often 10 years although it could be tied to the contract period of signed lease. An example is a signed contract for the long-term lease or for student accommodation. Property Development Finance This loan type is for the purpose of funding property developments. Such developments could be commercial or residential where the client secures tenants or promotes pre-sales of residential developments. An example of residential developments open for presales such as condominiums. This loan type extends to entrepreneurs and business owners who would like to develop their own property to run their businesses. The repayment generally takes 10 years however it could be tied to the contract period of a signed lease agreement. Working Capital Finance – Revolving Loan This loan type is provided to finance property projects that need funds to be used at several periods of the project. This alternative provides the borrower an advantage of convenience since reapplication is not required every time the funds are needed. The highest term for this loan type is 12 Months. However, this can be modified to best suit the cash flows of the business or project being financed. Working Capital Finance – Term Loan This loan type is provided to finance expenses necessary to properties like maintenance and repairs or little improvements that take a very short time to complete. The highest term for this loan type is 36 Months. However, this can be modified to best suit the cash flows of the business or project being financed. Commercial Property Finance – Rates There are no set rules when it comes to the rating for this type of finance. Loan companies will evaluate each and every application based on their merits. After assessment and evaluation, then the bank will decide on the terms and the rate of finance. Every single development should be viewed individually; first, determine how you can finance your project property development. Second, is an application for finance to fund property development. Every property developer has to completely understand, fully plan and mitigate every single aspect of the project. From the planning stage to the financial estimations of the development.

Top 11 Tips to Follow for Bad Credit Car Loans Guaranteed Approval
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Top 11 Tips to Follow for Bad Credit Car Loans Guaranteed Approval

ByDarin Hindmarsh

Is it possible to get guaranteed approval when applying for bad credit car loans? Non-conventional lenders, just like traditional banks and lenders will investigate your credit history and finances in a bad credit auto loan application. However, unlike regular banks, they tend to understand your situation more and could give you a second chance for a car loan – something regular banks and lenders do not offer for people with bad credit. Guaranteed approval is a different story, but it is not impossible. You can increase your chances of getting a guaranteed approval for a bad credit car loan by making you a viable client. Here are 11 of the top tips you can follow to be able to guarantee faster approval for your car loan. 11 Tip to Increase Your Chances in Bad Credit Car Loan Guaranteed Approval 1. Compare free quotes and get several options There are many online bad credit car loan companies that offer free quotes that can give you an idea of how much a car loan would cost you. Free quotes can also give you more idea on how to gauge each of the quotes that you receive and pick one that best suits your needs and your budget. 2. Choose shorter loan terms Shorter loan terms can give you lower interest rates, both in a regular car loan and a bad credit car loan. The faster you pay for your approved bad credit car loan, the faster you build your credit as well. However, you should be able to estimate if what you earn during this period is enough to repay a loan while paying for other financial duties. The lender will also check the possibility of you being able to fulfill a shorter loan or not. 3. Provide a higher deposit or down payment Even with regular car loans, a higher deposit or down payment can lower your monthly car amortization as well as lower your interest rates. Save as much as six months, or more, of your possible monthly car payment if you can. This will also create an impression that you will be able to afford to repay for your bad credit loan. 4. Get a cosigner A co-signer with a good credit score can increase the chances of approving your bad credit car loan. This, most of the time can be a parent. Remember that your co-signer has shared financial responsibilities as you have if you fail to pay for your monthly amortizations. 5. Check your credit report Although your credit report does not play a very significant role in getting your bad credit car loan approved, it is still a financial document accessed by non-conforming lenders to be able to determine your capacity to repay car finance. Checking your credit report allows you to remove items that should not be in your credit report anymore. Due payments and other financial obligations that you should be paying on time – to improve and build your credit history – can also be accessed from your credit report. 6. Reduce credit debts Reducing credit debts can also increase the chances of getting a guaranteed bad credit car loan approval. In the event of loan approval, you will need to pay for your monthly car amortization, together with your personal expenses plus your other financial obligations. Getting rid of your credit debts, prior to applying for a loan gives you extra financial resources that can be allocated for paying your car loan. 7. Refrain from applying several times It would be ideal to limit your number of applications for a car loan. Credit queries are posted on your credit history. The more attempts you have, the less likely you’ll get guaranteed approval. Review your credit history thoroughly and improve in the areas where you can improve prior to application. If bankruptcy or default is due to be removed from your credit report, it is also advisable to wait for the item to be removed before proceeding with a bad credit application. 8. Improve your income source and job criteria It would be ideal to be a regular employee for 6 months or more in your current job before applying for a car loan. A stable source of income makes a car loan approval possible for you, even with a black mark on your credit history. 9. Get a loan specialist A loan specialist can do wonders on your loan applications. With years of experience and a direct line to banks and lenders, it would be easier to get access to non-conforming lenders fit for your financial capabilities. A loan specialist can also guide you through the process of getting the right documents and the actual procedure in applying for a bad credit loan. 10. Be truthful with your application Give factful information about your financial details when applying for any type of loan. Setting the facts straight does not only give you better chances of securing a loan. It also gives you a better understanding if you are indeed capable of repaying for a loan. 11. Be patient Loan approvals may take time. It is better to wait than to suffer from an immediate rejection. Be patient and keep in touch with your loan specialist for updates and developments on your application. Getting a bad credit car loan approved is a process. It takes time and effort to ensure that your application is a success. Follow these tips and get your dream car through car financing. Better yet, call Intellichoice for assistance.

Low Doc Construction Home Loans Step by Step Guide for Application
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Low Doc Construction Home Loans Step by Step Guide for Application

ByDarin Hindmarsh

Low Doc Construction Home Loans Step by Step Guide for Application Low doc construction finance loans are available for entrepreneurs, business owners or contractors and consultants looking into securing their own home through a mortgage. Unlike regular mortgages, low doc construction home loans require less documentation since contractor and consultants and business owners may not have as much financial information available for banks and lenders to check and verify until the end of the tax year-or until the following tax year. Employment history and proof of income are just some of the basic requirements for business owners, contractors and consultants may not be able to provide when securing a home loan through a bank. Low documentation home loans are for individuals with irregular incomes. A steady source of income – to repay a loan – is a common denominator among conventional banks and lenders when reviewing mortgage applications. However, being a contractor or consultant or business owner does not necessarily mean that they earn less than a regular employee does. However, like traditional mortgages, a low doc mortgage requires a strong credit history for faster and greater chances of approval. Entrepreneurs and business owners may get as much as 80% of their LVR cost under the following conditions for their intended construction: So how can you apply for a low doc construction home loan? Here is a step-by-step guide you can follow. 1. Start saving for a deposit Prior to applying you will need 15% minimum deposit with many lenders needing 20% plus, and has to be evidence from a prior sale of where funds have been held in an account or existing equity within another property. No deposit home loans are also available, but the conditions are onerous as the regulatory bodies have taken a dim view of these loan types since the GFC you may need to pay for a higher interest rate for such loan conditions and the conditions really suit only a limited group of applicants. 2. Apply for a home loan pre-approval. To avoid chasing properties that you could not afford to build or renovate with these low doc construction loans and to get a better idea if you can really afford a mortgage, getting a pre-approval from our brokers helps. Although some pre-approvals are not accurate, the results are somehow reliable enough to know where your finances are in relation to your desired home loan value. 3. Choosing your property Choosing the right land to build a new residence on or sourcing the best property to renovate involves spending time researching online, talking with local agents in the areas you have selected and got a firm idea of the type of finish, type of build and all the costs with buffers you might encounter. In other words, start with the end in mind and you will have a better chance of success. Cost blowouts or over capitalizing can send you and your relationship to the wall. 4. Calculate your borrowing power. How much mortgage can you really afford? Intellichoice has a borrowing calculator that can help you with the process. 5. Preparing the documents needed Different states in Australia may require you to submit an additional set of requirements. Talking to a loan specialist can guide you through the process. Lastly, but as important as the rest… Engage with your broker In-depth discussions around your wants and needs are-AND if there are some issues which could affect your application need to be discussed in-depth with your broker. Remember that often the broker will not get p[aid if the application does not go through. So making sure the broker has everything needed to counter something a lender discovers during an application is best dealt with before being discovered by the respective credit departments. Intellichoice brokers have in many cases twenty plus years’ experience in these loans types so can best detail a solution from past experience!

5 Things to Consider when Choosing the Right Home Insurance

5 Things to Consider when Choosing the Right Home Insurance

ByDarin Hindmarsh

5 Things to Consider when Choosing the Right Home Insurance Home insurance is one of the important backup plans you should have for your property, especially for your home. There are many unpredictable risks and uncontrollable events that may compromise your home’s safety. Home insurance can protect the value of your home, as well as its contents after an unforeseen event. A home insurance policy covers the amount you need to rebuild your home during a disaster, fire, storm, flood or any other uncontrollable event. Types of Home Insurance You can choose between two types of home insurance. One may be costly than the other, but depending on your needs, picking one over the other has its advantages and disadvantages. Total Replacement Cover Home Insurance This type of insurance covers the amount to rebuild your home to its original state prior to the unforeseen event. Compared to the sum-insured coverage for home insurances, this type of home insurance reduces the possibility of underinsuring your home, but such home insurance is offered by limited banks and lenders only. Sum-insured Cover Home Insurance In this type of home insurance, you set the amount to repair or rebuild your home. You need to be accurate, or at least estimate the closest amount needed to repair or rebuild your home should you experience an unforeseen event. If you underestimate, you may not have enough in your insured amount to cover the expenses for repair or rebuilding. 5 Tips for Choosing the Right Home Insurance 1. Always read the fine print There are several policies, limitations, conditions, and exclusions included in your home insurance. Be sure to read every detail stipulated in your home insurance contract before signing anything. Also, it is important to ask questions and details related to the conditions included in your home insurance. It is better to understand and ask your questions now rather than be surprised if you would want to apply for a claim. 2. Compare insurance policies by reading the Product Disclosure Statement (PDS) Different insurers have different conditions when offering home insurances to clients. It would be advisable to read the PDS of the insurance quotations or offerings that you have, take down notes and compared each one accordingly. You can use these categories as benchmarks when comparing home insurances. 3. Extended Covers Ask your insurer if a sum-insured policy covers extended cover. For most sum-insured home insurance, a pre-agreed amount is already set. If the amount pre-set is not enough to repair or rebuild your home, check if your insurer offers a 30% top up on the sum insured. This is only applicable for total loss situations. Such extended covers may be enough to cover the gap between the sum insured in your policy and the total amount needed to rebuild your home. 4. Your Budget Are your budget and current financial situations qualifying for the insurance you want or your need for your home? Home insurance premiums can start anywhere from $600 up to $3,000 for building insurance policies of $450,000. The amount of monthly premiums depends on the State that your property is located. If you would want to go for content insurance policy alone, it can go anywhere from $260 to $680 a month in premiums. Some insurers offer online home insurance quotes depending on the details that you provide. Some even offer discounts for buying home insurances online. Extra premiums may be required should you want to add other belongings to cover such as collections or jewelry. 5. Additional benefits After getting the best rates possible for the insurance that you want for your home from the insurer of your choice, you may also want to explore the additional benefits that your insurer or other insurers may offer. Some insurers may offer Emergency Home Assistance without extra cost, ways of saving on your insurance premiums such as lower interest rates for advance payments, or free tailored policies personalized for you. The bottom line in getting the best insurance available for your home is by asking around and knowing what to ask. Get a broker or insurance specialist that you can trust and is willing to accommodate your questions and hesitations. You can never go wrong with the right questions.

Which owner builder construction loan is right for me?
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Which owner builder construction loan is right for me?

ByDarin Hindmarsh

When you make the decision to become an owner builder, one of the first questions you need to ask yourself is how much will it cost? Pretty quickly after then, unless you are lucky enough to have a significant amount of cash, you’ll be thinking about how to go about getting an owner builder construction loan. The secret to making an owner builder project successful is to plan each and every step. One of the best ways to commit to a plan is to write it down and stick with it. Once you have decided you want to go down the owner builder path, you will need to get a handle on how you are going to finance it. At this point, most people start to research owner builder construction loans.Owner builder construction loans are, as the name suggests, loans that are designed specifically with the needs of owner builders in mind. One of the key features that sets them apart from standard home loans is that they usually offer the ability to have funds drawn down periodically. This means that you only use the funds you require as you require them. Staged payments are the way owner builder construction loans are typically managed. This means that, while the total loan amount is agreed to at the start of the project, the money only becomes available as each stage is completed. This has two advantages. One is that the person or people who are borrowing the money only start to pay interest on it as it becomes available. The other is that it gives the bank or other financial institution that is lending the money the ability to check that the project is proceeding on track and on budget. Many people who decide to get an owner builder construction loan hit their first difficulty when they apply for it with a regular bank that isn’t interested in owner builder loans. For many banks who primarily focus on standard home loans, owner builder construction loans seem like a higher level of risk. It is very common for people even with an extremely good credit rating and a history of successfully completed projects to have their owner builder construction loan knocked back by a bank for this reason. For many people who are in the process of applying for an owner builder construction loan, it is useful to take some time to understand why many banks and financial institutions are reluctant to lend money in this way. Simply speaking, banks and financial institutions lend money for an owner builder construction loan based on the final value of the completed property. Although not always the case, owner builder construction projects are statistically more likely to run over budget and in some cases not get finished at all. If this happens, the bank will find it very difficult to get their money back by reselling the house as it is difficult to sell an unfinished house and it is very unlikely they would get anything like the money they would get for a completed house.Owner builder construction loans can certainly be difficult to obtain and it is one of the main reason people often turn to brokers who specialise in this kind of loans. Brokers who are preparing documents for banks all day every day understand the methodology that banks use to assess a loan and they are often able to present information in a way that makes the banks understand the true value of the project. One of the keys to getting an owner building construction loan approved is in showing to the financial institution that there will be a high level of value in the project and therefore a high level of security over their investment. There are many types of information you can present to make this a more attractive proposition for banks. For example, you could include values of similar houses in the area as well as your history of successfully completing similar projects.

Supply Chain Finance: How It Helps a Thriving Business
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Supply Chain Finance: How It Helps a Thriving Business

ByDarin Hindmarsh

What is Supply Chain Finance? Supply chain finance is a type of monetary activity that provides solutions to optimize cash flow. This allows the seller to sell its invoices to a bank with the knowledge and approval of the buyer. This whole process makes it possible for the buyer to pay at a later time and for the seller to receive payment earlier. Many supply chain experts and managers view supply chain finance as a great way to resolve issues with suppliers. The system benefits both the supplier and the buyer to improve their working capital which is an important factor to protect against financial issues. Note: Supply chain finance can also be termed as supplier finance or reverse factoring How Supply Chain Finance Works Supply Chain Finance allows two crucial scenarios. First, buyers receive prolonged invoice due dates which may be twice the original length of time. Second, suppliers can extend credit to buyers while receiving early payments on the approved invoices. Everything starts with the buyer. The buyer enables supply chain finance by using a software platform provided by industry experts in supply chain finance. The buyer determines suppliers who can participate in the program. After suppliers are determined and an invitation to participate in the program had been sent, the suppliers who accepted the invitation will be onboarded. On-boarding can be complex for buyers, however, should be carried out properly to make sure suppliers will complete the entire process to participate in the program. Suppliers who have completed onboarding can issue invoices to the buyer based on the agreed payment and terms. To pay suppliers, loan companies or funders offer early settlement for outstanding invoices less a small fee. The supply chain finance procedure is highly synchronized and intended to ensure that there is smooth and fair trading. The buyer and seller are completely advised of the process. They consent to take part to the shared benefit of both ends. How Supply Chain Finance Helps in Thriving Businesses Thriving businesses benefit from the supply chain in many ways. The prime benefits are as follows: Supply chain finance offers businesses an opportunity to grow. Particularly smaller companies that lack the cash. There’s no doubt that working capital is the life of any running business. Supply chain finance brings in a new working capital that all participants can benefit from. With suppliers becoming more susceptible to global financial shocks, benefiting from early payment on invoices helps them to cope with such economic shocks. With no supply chain finance, some major participants in the supply chain may opt to depart the supply chain. This might be because of undesirable payment terms. A player who decides to depart the supply chain can significantly raise red flags leading to holds off and ripple consequences further. By providing players an opportunity to take part in supply chain finance, all players in the supply chain will benefit as a result of continuous operation without interruption. Supply chain finance can help companies create better working relationships. By enabling participants to remain inside the supply chain, better deals could be made that that could not have been possible if the main participant departs. Businesses can function together with full confidence. Revolutionary, extensive projects could be pursued knowing that an essential buyer or supplier is going to be around for the longest time. These kinds of associations produce stability and more opportunities throughout the entire supply chain.

Questions to Ask Before Getting an Expat Foreign Home Loans
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Questions to Ask Before Getting an Expat Foreign Home Loans

ByDarin Hindmarsh

Questions to Ask Before Getting an Expat Foreign Home Loans Expat and foreign home loans are created for Australian citizen and permanent residents, who are currently living overseas, to secure and purchase a property in Australia, even while working outside the country. Refinancing an existing loan is also possible through an expat lending. Although most banks do not offer such mortgage loans for expatriates, there are many lenders that understand and provide financial solutions for Aussies working and living abroad. There are qualifications and necessary documents required to secure expat and foreign home loans. Asking the right questions will help you understand how such mortgage loans work. Here are some of the essential question you may have in mind and need to ask prior to applying for an expat foreign home loan. Are you an Australian citizen or permanent residence holder living overseas? Australian residents and permanent residence holder living and working abroad are qualified to apply for an expat foreign home loan. Foreigners with permanent residence status living or working abroad are also qualified for a mortgage loan. Both Australian citizens and permanent residence holders can avail up to 90% of the property value through an expat foreign home loan. Are you an Australian citizen living in New Zealand? Australian expats living in New Zealand can also avail of a home loan even while working out of the country. Expats or PR holders living and working in New Zealand are also qualified with a home loan equivalent to as much as 90% of the property value. Some lenders may also implement tax rates of New Zealand, while others may stick to the tax rates implemented in Australia. Are you married to a foreign citizen? Being married to a foreign citizen may or may not help you with your application for an expat mortgage loan. Your wife or husband’s income may not be included as a detail in your mortgage application if they do not have permanent resident status. Although some lenders may include your spouse’s income in your loan application if your foreign partner has a visa and living in Australia, if you are married or have children together or if they have families and relatives in Australia.How much is your income? Your income also plays a big role in your mortgage application. The higher your income is, the more you become capable of returning a loan or being granted a high mortgage amount. Proving your income is another aspect to keep in mind. Documents will be required to prove your income. Lenders will require you to provide employment contracts, letters from your employer, bank statements, pay slips and tax returns. Self-employed individuals are required with a different set of financial documents. Are self-employed individuals qualified? Self-employed Aussies living abroad may also apply for an expat mortgage loan. Financial documents that will prove your source of income, as well as tax returns, are some of the basic documents lenders will ask from you. If your tax returns are unavailable, you may need to hire an accountant to verify that these documents are indeed unavailable. Is your current currency acceptable? Banks and lenders prefer a set of currencies for mortgage loan applications. However, if your current currency is not on a list, you may still be qualified for an expat mortgage loan but will be required to pay for a higher amount of deposit. Some of the main currencies preferred for expat home loan payments are: How much deposit do you need? Most banks and lenders will require a 20% deposit for your home loan. However, you may be required to pay for a smaller or bigger percentage, depending on your financial situation and the assessment of the bank or lender on your application. Earning with a currency not included in the preferred currency list of the lender may require you a higher than 20% LV. Better credit standing and other factors may require you for a lesser deposit. How much interest rate will you pay for an expat foreign home loan? Interest rates differ from lender to lender. It can go as low as 3.5% or as high as almost 5%. It all depends on the type of mortgage loan you apply for (variable or fixed) as well as how long you intend to pay for the loan. Do I need to visit the Australian Embassy? Some lenders will require you to appear in the Australian Embassy to sign a formal loan letter. Most lenders do not recognize Power of Attorneys, so you’ll have to attend to this personally. Do I need the Foreign Investment Review Board approval? You do not need the government’s approval or any approval from the Foreign Investment Review Board to apply or to acquire an expat home loan. How many surcharges on stamp duty will I have to pay? Paying for a surcharge on stamp duty depends on which state you intend to purchase a property. Check with your state revenue authority to determine if you are exempted from paying surcharge stamp duties. How can a loan specialist help? A loan specialist like Intellichoice Finance makes your loan application easier. Our loan experts will connect you with lenders and banks that suits your financial capacities, prior to our preliminary assessment. Documentations and other requirements that can be furnished by our loan specialist for you will cut your work in half.Speak to our property and home loan advisors on 1300 55 10 45 or visit our contact page for more information.

5 Tips For First Time Home Buyers with Bad Credit
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5 Tips For First Time Home Buyers with Bad Credit

ByDarin Hindmarsh

Are you planning to take the next leap forward to becoming a homeowner however you are taken aback because of bad credit? Having a bad credit can indeed hurt your capability to apply for various loans. However, these days, there are sprouting specialist lenders who can offer loans to home buyers with bad credit. These lenders will look beyond your credit history and look further into your capacity to pay. Regardless, it is always advisable to know why you are in a bad credit standing and see if you can still repair some of the damage to improve your standing. Two Main Considerations When Getting A Home Loan There are two points that financial institutions consider when applying for a loan – your income and your credit history. What should you do to get started? Here are tips to help you apply for a loan despite bad credit. Five useful tips for first time home buyers with bad credit 1. Understand why you have a bad credit. Get a copy of your credit history. Before you even sign that application form or talk to another lending institution, seek for a copy of your credit file. Understand why you ended up with a bad standing in the first place. There are numerous factors that may have to lead your credit standing to bad credit. Below are a few of the factors to look at. You want to make sure that you know your credit history. All home loan lenders will look closely at this, so you want to discuss negative marks on your file with no qualms. Important: Know where to access your credit report. 2. Settle any outstanding debts and pay off existing debts Lenders will ask you what steps you have taken to repair your credit standing. Naturally, you will want to pay outstanding debts. Contact companies listed with late payments and see if they can remove negative report. Some companies can do that for you especially if you have built a good rapport with the company. Payoff existing debts. Lenders will look into your current credit accounts like your credit card bills and personal loans. It is important that you don’t have any existing loans when applying for a home loan. Payoff all existing debts for a better chance of approval. Consider a credit repair service. A credit repair specialist can help you in a number of ways. They can review your credit report and help remove negative listings in your credit history if those negative listings are not adherent to laws. This can greatly improve your credit standing. 3. Choose a lender who offers home loans despite bad credit There are specialized lenders in Australia who offer bad credit home loans. These lenders will look into your file and understand why you ended up in bad credit. Bad credit standing is, in many cases, reflective of many factors. It could be a result of lifestyle change or unwanted circumstances such as sickness or divorce. Be honest when these lenders ask for an explanation. They will compare your credit standing against your income. It helps to know that you have a good and stable source of income. Note that a higher income can sometimes override bad credit depending on how the lender views it. 4. Avoid applying for too many loans in a little space of time Your credit report will include all previous inquiries for past loan applications. Take careful steps when inquiring about home loans especially when you already have a bad credit standing in your record. Too many inquiries in a little space of time can lead to raised red flags to lenders. 5. Consider Lenders with their own Lender’s Mortgage Insurance (LMI) before applying There are only two major providers for LMI in Australia – Genworth, and QBE. These major providers are very strict when it comes to evaluating loans which in many cases leads to rejected loans. Specialized lenders have their own LMI alternative so that you have better chances of getting an approval.

Owner-Builder Financing Road: FAQs Answered
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Owner-Builder Financing Road: FAQs Answered

ByDarin Hindmarsh

Owner-Builder Loans Basics: What You Need to Know As an owner builder trying to get a loan, there are many questions that you want answers. You may consult a financial advisor or a mortgage broker specializing in construction loans. And if you have started your research, you may have figured that getting an owner-builder loan can be a real challenge. However, to help you down the road to financing your owner builder project, we endeavored on answering those frequently asked questions related to acquiring an owner-builder loan. Have you recently purchased a lot? If you are still eyeing for affordable lots to build your dream home then the loan amount you are going to borrow will not only cover the house construction but also the lot purchase. It is always important to know what you can afford. If you already have a lot to build your dream home, then you will only need to work on financing your home construction. The land should your ownership with documentation to prove it, share ownership, freehold interest or at least a period of not less than 3 years. Why is it difficult to qualify for an owner-builder loan? Loan companies view owner-builder loans as high risk considering that you (the owner builder) may have no enough experience in budgeting and managing long-term constructions projects. The likelihood of over budget and unfinished projects are some of the factors that loan companies are staying away from. Therefore, loan companies would like to see your skills and your ability to take on the management responsibilities of contracting your home project. Where do I inquire about owner builder loans? You can start your inquiry at your local bank or from owner builder lenders in your area. Start by stating your goal so that they can evaluate your financial position. If you have established rapport with your banker, there is a likelihood that they go the extra mile in providing you a feasible amount you can borrow against your financial position and present assets. How much can I borrow? Licensed builders are usually approved at 80% of the construction cost. For owner-builders (non-licensed), you can generally borrow from 50% to 70% of the construction cost. Therefore, it is important to note that when you consider an owner-builder project, you should have enough cash savings or perhaps another source of funding to complete the project. How does the owner-builder loan work? Approved owner builder loans are not disbursed in a lump sum. The funds are disbursed through what is called progressive payments. A valuer will run through your cost estimate and budget and will tell you to disburse initial funds for the first phase of construction (example – structuring). After the first phase of construction had been completed, the valuer again assesses the work done and after his approval, the second loan will be disbursed until the project is completed. What documents are needed from me? Banks and loan companies will require the following documents:Owner-builder permitProject planConstruction cost estimateConstruction budgetBuilder’s InsuranceWhat is an owner-builder permit? An owner-builder permit is a requirement for those who want to build or manage their own residential project worth $10,000 and more. This includes projects assuming contracting roles such as construction, renovations, repairs, and other additional construction to an existing home. An owner-builder should apply for a permit at the state government authority in your area. The application can be done online or by booking a schedule to submit the application. Check the eligibility requirements to get an owner-builder permit. Should I seek professional advice relating to the owner-builder loan? Before you decide to submit an application for financing, it’s a wise decision to seek professional advice. Talk to a financial adviser and an accountant to assist with your cost management along with tradespeople and project managers. This move will help you see how much you can borrow and help you meet all requirements along the process.

Should You Consider Taking An Owner-Builder Construction Loans?
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Should You Consider Taking An Owner-Builder Construction Loans?

ByDarin Hindmarsh

Many homeowners today either acquired their home through a home mortgage or hired a contractor to build their ideal homes. However, for some homeowners, they have taken the owner-builder route. The owner-builder are those who build their own homes or doing the actual work or supervising the work. For most who have taken this route means saving money that should have gone to a contractor. For some, it is the satisfaction of living in a home that’s built by their own two hands. If you are one of those who is decided to build their homes using the owner-builder route, you will have to consider a few things. Determine Your Budget Your allotted budget to build a home always takes an important role. Here are considerations when determining a working budget. All these costs will determine if you have enough working budget for the project from start to finish. Consider an owner builder construction loan After determining your budget and you think it is not enough to complete the house, you may want to look at the owner-builder construction loan. Talk to your bank or to financial institutions who specialize in owner-builder financing. How to qualify for owner builder loans? Just like any other loans, you will need to prepare all your financial documents and a business plan or project plan to support your loan. The business plan should outline all projected budget from the cost of materials, labor costs, building permit fees, and all other costs related to the home building project. Include your construction schedule too. These requirements are a way for lenders to see if you are capable to pay the loan.

Determining Your Buying Power: Can You Afford A Car Loan?
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Determining Your Buying Power: Can You Afford A Car Loan?

ByDarin Hindmarsh

Determining Your Buying Power: Can You Afford A Car Loan? Are you ready to buy a car? Can you afford the latest Toyota model released 2 years ago? Determine your buying power to find out if you can afford a car loan. Your borrowing power will dictate the amount a loaning company can lend you and how much you can afford to pay. How important is determining your buying power? A full understanding of your borrowing power can save you time. This also limits the number of loans you apply for. When you know the loans that you can afford, it narrows down your option of lenders and helps you find the best rate in line with your creditworthiness. Note that once a lending company checks on your credit score, it will be added to your credit report even if you decide not to pursue with the loan. Multiple inquiries on your credit report create a negative impact on your borrowing power. You can be tagged as high risk by lenders. This makes it harder for your loan to be approved in the future. Also, when you are able to determine your borrowing capacity, you know which car models should you consider and skip. This cuts down the time on selection and approval process. To help you determine your buying power, use the borrowing power calculator. Below is a guide on how to use the calculator to compute your buying power. How to use the Borrowing Power Calculator 1. Enter your income details. Joint income: Choose yes if it is a joint income with your spouse.Dependent children: Choose from 0 to 3+ on how many dependent children you have. Net salary: Type in your net salaryNet salary 2: Type in your spouse’s net salary.Other net income: If you have other sources of income, add your estimated net income 2. Enter your expense details. Annual expense: automatically filled out when you choose from 0 to 3+ on dependent childrenCar loan repayment: if you have an existing car loan repaymentOther payments: this is a total of all your monthly expenses, you can account for it separately to get your totals.Total credit limits: What’s your credit card limit? 3. Enter your loan details Interest rate: annual interest rateLoan term: how many years are you paying for the loan 4. View your results: You can see your results below this section as follows: how much you can borrow, monthly repayment, fortnightly repayment, and weekly repayment. How loaning companies figure out your buying power? Loan companies consider carefully your month to month living costs and compare them against your regular monthly earnings to determine whether or not you could afford loan obligations. However, the determining factor becomes more complex when the following are involved: One more important consideration is the debt-to-income ratio. A general rule of thumb when determining your borrowing potential is that the debt you pay each month must not take more than 40% of your regular monthly earnings. For anything that goes higher raises a red flag to lenders. Note: Financial specialists recommend that debts being paid each month should not take more than 20% of your net pay (earnings after expenses) should be used for car expenses. Computing for your monthly expenses Before even applying for a loan, a computation of your monthly expenses should be taken into account. Come up with a detailed month to month expenses to determine your spending budget. A detailed breakdown helps you decide if you are still able to include one more expense. The following should be taken into account when creating a detailed monthly expenditure income: Note that an ideal loan should not make any considerable changes in lifestyle. Should you be stretching your financial allowance, a loan is probably not the right monetary move. Determining your buying power is one of the most important factors when taking out a car loan. Consider all your expenses, fees, taxes, dependents, and other necessities. Compare it to your monthly income to get the debt to income ratio. When you know what the bank expects from you and where you are at with your capacity to pay, you can make smart decisions when it comes to car loans.

Best Solution to Acquire Your Dream Home – Bad Credit Home Loans in Australia
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Best Solution to Acquire Your Dream Home – Bad Credit Home Loans in Australia

ByDarin Hindmarsh

Bad credit home loans are one of the best solutions to be able to acquire your dream home even with bad credit. For the average Australian, a good credit score, financial stability, and a good credit history play a big role in securing a home loan. Although there is no specific credit score required to, a good personal financial history increases the chances of getting a home loan. Here is where bad credit home loans come into the picture. This type of home loans is created with for borrowers that do not have the traditional financial requirements most mortgage institutions require. Unlike the traditional home loan providers, bad credit home loans can look beyond your previous bankruptcy, a divorce or missed loans. Bad credit home loans help in analyzing your current financial situation while creating feasible options for you to secure a home loan even with your personal finance imperfections. Who Needs Bad Credit Home Loans? Bad credit home loans are perfect for those borrowers who are currently in bad credit or for people who are hounded with a bankruptcy in their credit history. Low-income earners can also avail a bad credit home loan with reasonable interest payments too. Generally, bad credit home loans are advisable for borrowers who have: Advantages of Bad Credit Home Loans There are many advantages to consider when taking a bad credit home loan over other type of loans. The chances of getting your application approved are higher and payments options are created suited with the financial capacity of the borrower. Here are some other advantages of getting bad credit home loans. Lower interest rates compared to other financial institutions. A bad credit home loan often requires a bigger down payment compared to a regular home loan. This is required to compensate for the bad credit history that a borrower has. However, higher down payments are usually parallel to lower interest rates since the amount of loan in consideration are lower than the traditional ones. Your credit history will not immediately affect your application. For most traditional home loans, your credit history says everything about your financial capacities. Bad credit home loans investigate how you can pay for your loan in the future. They welcome the possibilities of a better personal finance through credit repair or increase in income – something traditional loans do not take into consideration. Easier application process. Unlike conventional home loan applications, bad credit home loans will require you with less paperwork and higher chances of approval. The borrower is given the chance to acquire a property based on your merits and not by your bad financial decisions in the past. You can start repairing your personal finance. Bad credit home loans are created suited to your current financial capacities. Thus, you can start improving your credit score, settle your debts and fixed your other financial issues, even while paying for a home loan. This is made possible by the lower and flexible interest rates bad credit home loans offers. How to Avail Bad Credit Home Loans Although your credit history is not a big factor considered when applying for a bad credit home loan, your financial capacities and merits will still be reviewed before a suggested home loan offer is granted to you. Different bad credit home loans financial institutions have a different set of requirements for borrowers, but you can start reviewing the following areas in your finances to be able to personal access your capacities to acquire and repay a home loan. 1. Get a copy of your credit report. Although your credit score is not a vital factor for your application, the age of your credit history defaults may be used as merit. The older your defaults are, the better the chances of getting your application approved. Paid and settled defaults prior to your loan application is also another positive merit to your application. 2. Prepare documents for your employment standing. Applicants with proof of income are considered low-risk borrowers and increases your chances of getting a home loan approved. 3. Be transparent with your application. Your bad credit listing should be honestly disclosed with your lender. Provide explanations and documentations for the red flags in your credit report. Hiding details about your finances does not help in improving your credit rating. Even if you managed to get your application approved, you may not be able to efficiently follow through with your payments if you failed to disclose important details in your personal finance. Your financial decisions in the past is not a hindrance to achieve your personal goals. Bad credit home loans can be the key to the door of your dream home.

Defining a Good Owner Builder: Which Contractor is Perfect for Your Owner-Built
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Defining a Good Owner Builder: Which Contractor is Perfect for Your Owner-Built

ByDarin Hindmarsh

Defining a Good Owner Builder There are several homeowners who have built their own homes and have become their own contractor of the project. They had the benefit of earning more equity, cutting down costs, and building a home they want. Building a home is not as complicated as you think. In fact, one out of ten homes in Australia were Owner Built! You can do it too. You’ll have peace of mind knowing that you will be in control. The owner-builder is an individual who functions as the general contractor of the entire home project. The truth is, anyone has the right to construct their own home. Being the general contractor, the owner-builder manages the entire process. This includes hiring the subcontractors, paying the bills, and getting the materials needed for the site. Additionally, the owner-builder takes ownership of the legal obligations and risks. They accept full responsibility for all phases of the project and its integrity. Read more about the owner-builder risks. Qualities of a good owner-builder/contractor You will need all these skills to allow you to organize people, create invoices, negotiate on material costs, follow up on unfinished work, stay focused, and see that the project is on its way to completion. The benefit of contracting your own home Contracting an owner-built home Once you have decided to contract your own home, you need to understand the entire contracting process. You’ll require to have a strong understanding of the big picture. The factors or steps needed for contracting your home are presented below in fundamentally the same sequence you will encounter when starting the home project. Basic steps needed for contracting a home: 1. Complete a financial plan 2. Locate and buy the lot 3. Put together your plans and specifications 4. Estimate of costs 5. Put together a feasible construction schedule 6. Acquire the financing you need 7. Secure permits and sign contracts 8. Be involved in the construction process 9. Be involved in the inspection process 10. Finally, move in! The list above looks simple and straightforward. The challenge comes from the details of each step. Below is an overview of each step to get started Brief Overview of the Contracting Process (Steps) Your Construction Schedule Develop a construction schedule to get started. This can be a detailed plan, showing a demonstrative series of construction events. Financing – getting a firm commitment on your financing If you don’t have a strong dedication to your construction as well as long-term funding, right now is the perfect time to do it. It should be done right after the lot purchase and after the plans and specifications accomplished. Get your papers ready – from your construction schedule, budgeting plan which includes your cost estimate, and your plans and specifications. Find out how much you are qualified for, the interest rate, your loan options, what you need to qualify, and etc. Talk to your lender to have everything ironed out. Get a firm commitment with your bank asap. Financing plays a great role in your budget and in the home building process as a whole. Contracts and Permits – executing permits and contracts Right after you have your lot, plans, as well as a strong commitment in financing, it’s time constructs. This is essentially the culmination of the contracting process, but the beginning of management and supervision tasks. The very first move is to carry out agreements with the Subcontractors and acquire the necessary building permits. Construction Now it’s time for you to build the home. As the owner-builder, you are the boss. You will essentially be the conductor, the decision-making body, the manager, the procurement, and the supervisor of the building process from start to finish. Being an owner-builder of your home entails a lot of process being your own contractor. The steps laid out in this post will help you go through the step by step process. For more detailed information, you can consult with a professional contractor builder, however, consultation may come with a fee. Research is important in every process and in every step, so make sure to ask and raise your question. Understanding the whole process is getting the right knowledge. And when you have the right knowledge, everything will fall in its place.

Bad Credit Home Loans in Australia
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Bad Credit Home Loans in Australia

ByDarin Hindmarsh

Bad Credit Home Loans in Australia There is nothing worse for an individual who seeks to buy a home than to discover their credit rating has been labeled ‘poor’ or ‘bad’. Trying to get a loan can be very difficult if past credit issues exist; difficult, but not always impossible. A poor credit score can result from credit activities that are considered ‘bad’, such as missing payments on bills or credit cards, or previous debts left unsettled. Poor financial decisions and personal/family problems can negatively influence a persons’ credit history and are common factors that lead to a poor credit score. If this is your current dilemma, there are a couple of choices. You could wait and ensure that no ‘negative’ activity occurs on your credit file; make sure you are paying bills on time, settle unpaid debts, pay your credit cards by the due date. These actions improve credit health. Banks have very strict servicing guidelines, making it unlikely that you will gain an offer of finance from them until every credit issue is cleared. While clearing your poor credit history will open-up lending options, time may not allow this if your situation is urgent, and there are a few options for lending if you have existing bad credit. Loan Specialists for Your Special Needs Firstly, it may be helpful to know that going down the ‘Bad Credit Home Loan’ path will involve baggage; higher interest rate, lower property value. However, some lenders may bypass traditional credit assessment processes, instead focusing on the borrowers’ ability to service the new lending without causing a hardship situation. These lenders, called “Specialist Lenders”, conduct deeper analysis during the assessment process and approach situations on a case-by-case basis. Specialist Lenders take into account the explanation and reasoning behind an applicants’ poor credit score; the details being of greater importance than the credit score itself. Specialist Lenders do not necessarily differ much from the standard lenders regarding creditworthiness or assessment, except in that there is potentially greater risk carried by lenders who finance borrowers considered to have ‘Poor Credit’. Providing a valid and robust plan to demonstrate how you intend to address past credit issues strengthens your application case. Consolidating debt and reducing limits on credit cards have a direct impact on improving cash flow and are examples of actions that may be viewed in a positive light by specialist lenders. Demonstrating to a specialist lender how attaining the new lending will substantially improve your financial position can be a real game-changer for you in your quest for a home loan approval. Even with a poor credit score. It can be uncomfortable discussing the situations that have contributed to a poor credit score, however putting in the effort to approach specialist lenders can help you on your quest for home loan approval – and remember, they are used to dealing with clients who have experienced the same hardships and challenges.

Expatriate and Foreign National Purchasers; Buy Before you Leave or While Living and Working Away from Oz
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Expatriate and Foreign National Purchasers; Buy Before you Leave or While Living and Working Away from Oz

ByDarin Hindmarsh

Expatriate and Foreign National Purchasers; Buy Before you Leave or While Living and Working Away from Oz Tax Regulations have seen some changes, but the topic discussed in this video is relevant still; the Why’s and How’s of purchasing property as an Expat. Let us give you peace of mind while you’re overseas by knowing you’ve covered all bases. This is your safety net when you return home. Get in touch to find out more about how one of our experienced professionals can guide you. Wherever you are! Video Transcript: Australian expats and Foreign National Loans Buy before you come home Some people have asked me in the past why we have focused on doing loans for expats and foreign nationals, a large part of it I suppose came from having lived overseas myself and worked overseas. And a lot of the people like to travel with that were expats from Australia, they seem to enjoy the lifestyle a lot so to speak. So you normally a fairly good money at a different tack scale to Australia. And we’re having this good time you’re travelling around you spend a lot of cash and when you eventually come home to Australia sometimes to settle down, have children, come back with family, you realize that you maybe had not put away the amount of savings or budgets that you possibly could of. So to those ends, my advice as always and I did this myself is buy property before you leave or buy property if you’re away while you’re away and buy back in Australia. There are some advantages to doing it because the small amount that you would pay to help meet the repayments after the bank loan can generally mean that when you come back at. One, you’ve got a property to come back to. Two, you may have accrued some tax losses that you can take advantage of. But three, you’re actually coming back to something already set for you. Now, a lot of this we can do from here, so we do it while you’re away. And with having done several of the more than several of a few hundred of these now. That by the time you look at where to get documents, where to get them witnessed, how you transfer funds, who to utilize in terms of other professionals like accountants and legals and conveyancing. Professionals for finances is where we step in. Then the whole process can be largely done through the web by internet, email, social media. We find it very very easy and we enjoy doing it because we get to hear about the lives of other people travelling abroad. And I suppose that’s one of the parts that I really enjoy doing.

Expatriate and Foreign National Purchasers; Understanding Why Intellichoice Digs Deeper into providing Mortgages for You
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Expatriate and Foreign National Purchasers; Understanding Why Intellichoice Digs Deeper into providing Mortgages for You

ByDarin Hindmarsh

Expatriate and Foreign National Purchasers; Understanding Why Intellichoice Digs Deeper into providing Mortgages for You Expatriates and Foreign Nationals purchasing investment property in Australia need to be very thorough when considering a purchase and the mortgage needed to complete. Many areas need addressing to avoid being caught out with an undervalued property which can lead to financial loss. Watch this video to understand some of the key issues facing Expats taking our Mortgages for Australian property purchases. Get in touch if you think you would benefit from further insights on this topic. Video Transcript The first step in inquiring about a loan, I guess is to wonder the purpose of which property you’re looking to buy. Is that a property that you’ll eventually want to live in yourself. If you’re looking at units, what those units comply with some of the lenders criteria. Whether they are sitting their valuation, the ongoing cost to those. Yeah, I know that sounds like it’s a long way from actually getting a loan. But it turns which lender you’re worth, how they’re structuring their valuations at the time. Have they had other developments in the area go bad and that affects your valuation? Valuations are important of course because ultimately that affects how wealthy you are, the wealth you are going to make out of a property. So there were cases in some areas of Australia and some of the capital cities where properties were overpriced that was sold through groups that had Philly exorbitant commissions. The valuers don’t take these commissions into account when they work at the valuation of a property. So therefore what you thought you were paying and receiving, where it could be in some cases a hundred thousand dollars less, once all agents fees charge commissions taken out, is that a decision that you would have taken had you known that to start with. Now, unless your dealing with lenders and financiers and brokers who understand this, then you’re risking some of your hard-earned money on going after something that perhaps you shouldn’t have, and not that we can provide specific advice around that but we can give examples to people on things that should be for when they’re looking at their contracts.

Is It Better to Get Loan From the Bank or from the Broker?
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Is It Better to Get Loan From the Bank or from the Broker?

ByDarin Hindmarsh

Is It Better to Get Loan From the Bank or from the Broker? Owner Builders have the dilemma to whether choose loans coming from banks, or to those coming from brokers. Firstly, owner builders are individuals who take responsibility for domestic building work done on their own land. These people primarily takes charge in managing the construction of their houses with congruence to building regulations and standards. Unfortunately, owner builders would carry the burden of heavy expenses in accomplishing everything. For this reason, considering to qualify for a mortgage loan would be the first thing that owner builders would be thinking of. In addition, there are two major sources for acquiring a mortgage loan for owner builders. This would comprise the possible loans from banks and those from mortgage brokers. However, the question comes to whether or not owner builders should choose bank over brokers or the other way around. To explain, both brokers and banks have specific features that an owner builder may be interested of. For one, both Brokers and Banks similarly share the trait of checking the current situation of the borrower as well as his creditworthiness. In light of this, both bank and brokers have the capacity to lend the requested financial support especially when building a home. Banks in particular, have an advantage in security. This makes borrowers feel safer when they are handed money compared to non-bank lenders. Furthermore, banks, especially prominent/popular ones, have the reputation as established institutions. This primarily gives the idea that banks can assure safe and quality loans generated from the borrower’s request. In Australia, banks according to the Australian Prudential Regulatory Authority (APRA), have an extra regulatory level which states that financial promises made by banks are fully met under all reasonable circumstances. In contrast to this, banks, although assures great safety to the borrowers, tolls in their stricter criteria. With this, borrowers may also experience having limited choices in getting a loan. Finally, banks may have excessive overhead costs for the borrowers from stashed fees which may or may not be fully regarded. Brokers, on the other hand, denies the disadvantage of choice limitations and provide borrowers with various options to find a suitable loan without drilling a massive hole in everyone’s wallets. In this case, the ability to provide “choice” is a broker’s advantage. When dealing with a broker, one is getting the vibe of dealing with multiple banks and products compared to dealing with actual banks which can only provide you one specific package. Additionally, brokers are specialized in making the best deals to clients. In relation, brokers can put deeper and smarter deals that can have clients to commit long term. In comparison, banks have staff members that are most likely not concerned with creating the best deal but rather to a deal which compliments the bank’s interest. Consequently, in the industry of lending, there are good and bad brokers. Landing to a bad one may be damaging in terms of cost or may put clients into bankruptcy. To weigh both parties, it has come to the conclusion that the most practical way to acquire a loan for owner builders is from mortgage brokers. Let’s face it, although we want to be safe with borrowing money, we also want to explore cheaper and cost-efficient options to obtain loans. So, if you are an owner builder, try to consider looking for a “good” and “trusted” mortgage broker that can help you get the most appropriate loan to aid build your house.

Financing Your Business: Understanding Available Options
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Financing Your Business: Understanding Available Options

ByDarin Hindmarsh

Financing Your Business: Understanding Available Options Sales are going up and so is Cashflow, but traditional lenders want to see two years’ historical figures and tax returns to advance facilities. What’s the solution? Find video’s on our website covering Debtor Finance, Leasing Finance, Short Term Finance, Franchisee Finance, Development Finance and Leasing & Asset Finance – watch this one for a mention of Niche Finance Lenders. Your Intellichoice Specialist Broker will assess your situation and determine the best solution for your business. Contact us for an in-depth discussion of your needs. Video Transcript: Intellichoice is on the side of the borrower We decided years ago to make sure we focused on niches that we felt we best had experience that would help a business expand or grow. And to those ends there’s niche markets that traditional banking won’t allow for. At the moment we’re kicking some major goals for our clients because we have on board a range of full range of niche funders. These are people who don’t want to be all things to all clients, all they want to do is to good in their particular area. And it allows us to provide finance in areas such as trade-related finance, cash flow finance, a whole range of things. These people are not wanting to be retro facing, they want to look at the transactions going forward and so they have a real difference of aspect when they consider their client’s needs. And so people who don’t have a track record perhaps or they don’t have financials, but what they have is a great distribution arrangement and supply arrangement, but banks aren’t interested because they don’t have the track record. With our financiers that we have on board, they are wanting to embrace the client’s vision with their business and take that vision forward. They don’t want to have a huge turnover straightaway, they’re happy to grow with the client. So the client can start off from scratch pretty much and they can grow their business. And our financiers are willing to go with them in that journey and take them to high turnovers, high profitable levels. And it’s very exciting for us as financiers when we’re able to take clients on that journey, and it’s a great arrangement. We’ve worked hard to get these niche financiers on board. It’s not an easy thing to do, there’s a lot of effort to get them there once we have them on board. It’s very rewarding.