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Answer: At least 8 different ways that I can think of.

And not all of those ways may be suitable for everyone – here is my list: https://www.mortgageaustralia.com.au/email/files/8waystobuythatpool.pdf

Not everyone wants a swimming pool either. But perhaps a new car, maybe a boat, a motorbike or a decent holiday? A caravan or a new garage? An aeroplane even?

Doesn’t really matter what it is, but if you need to spend a serious amount of money, it may be worth looking at some of the things you can do with your home loan to facilitate your new purchase.

You see, 6 of those 8 different ways I mentioned actually involve your home loan, so it’s probably worth a look first, just to make sure.

That’s where I can help. It doesn’t cost anything to check out what would work for you, and then you can actually make an informed choice.

The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential.

What do you think?

Contact me and we’ll see where you stand.

There are so many things you need to organise when you purchase a property, and many buyers become quite overwhelmed with all of the paperwork, and coordinating their move.

Mistakes can be made, and you might be surprised if you knew how many people forget to do a thorough inspection before settlement.

By thorough inspection, I don’t mean turning the lights on and off and looking for marks on the wall.

The biggest mistake that many buyers make at the last hurdle, is forgetting to measure the boundaries of the property to check that everything is correct.

You might think that this isn’t really a big deal – who cares if the neighbour has a few centimetres of your back yard? Well sometimes it can make or break you financially, and cause an enormous amount of stress and conflict in your life.

Meet the Wilsons:

The Wilson family discovered the importance of checking boundaries when they moved from their 3 bedroom townhouse to a house with a big backyard in Fremantle last year. It was a hectic time for everyone, and it wasn’t easy packing up the house with a baby and a toddler to think about.

When the Wilsons did their final inspection, everything looked to be in order. The vendors had left the house wonderfully clean which was very helpful. They even mowed the lawns and replaced some of the light bulbs. The couple had forgotten to borrow a measuring wheel but they took a couple of minutes to count their paces along the boundary line to see that the title was correct.

It wasn’t until several months later that the family was confronted by their new neighbour on the left. He’d been measuring his block to get a planning permit through the council for a possible home extension.

In the process, he discovered that the Wilson’s garage on the edge of their property was actually built over 1.5 metres of his land.

What followed was a lengthy legal battle which was expensive and stressful for all parties.

In the end, the Wilsons were forced to tear down one side of their garage and make alterations to reduce its size. They also had to remove and rebuild the fence along the left boundary of their property.

This is a great example of why it’s so important to do your research when you buy a property, and avoid ending up in a similar situation.

As a borrower, it pays to know your rights – and don’t be afraid to exercise them!

It can all seem a little intimidating when you apply for a loan, and it seems like the lender is putting a lot of conditions on you as the borrower. But what are your rights? Borrowers are heavily protected by state and federal law, and you can expect your lender to keep up their end of the bargain too. You have:

The right to know what you’re in for

The lender must provide you with a very detailed contract which outlines all of the terms and conditions of your loan in clear language. You should take the time to understand all of your obligations, fees and charges and make sure the loan amount details are all correct.

The right to know your interest rate

Your lender is required to communicate interest rate changes to you in advance – either directly, or by putting an advertisement in a major newspaper.

The right to know your repayment amount

The lender must provide you with written notice at least 20 days before your interest rate is due to increase.

The right to a copy of your loan statement

A loan statement must be provided to you every six months. You have the right to dispute any transactions that you don’t feel are correct or justified.

The right to pay out your loan at any time

There may be some fees involved, but you do have the right to pay your loan out at any time. Accordingly, you also have the right to know your payout figure, which your lender must provide to you within 7 days of receiving a written request.

The right to terminate your contract before the funds are drawn down

You have the right to pull out of the transaction if the funds have not yet been drawn down for settlement to take place.

The right to get assistance in times of financial hardship

There is legislation in place to protect you if you experience financially tough times. It’s worth investigating the relevant options so that you are ready for the unexpected.

But, you would remember from childhood that more rights usually equals greater responsibilities. There are a few obligations that you must keep to your lender as well:

Provide truthful, factual information when you apply.
– Make all of the repayments on the due date.
– Keep the property in good condition and don’t make any big alterations without getting permission from your lender.
– Take out insurance for the full replacement value of the buildings/structures and keep the insurance policy paid and current.
– Don’t sell, rent, or mortgage the property without your lender’s permission.

As a property ages, items within it wear and they depreciate in value.

The Australian Taxation Office (ATO) allows property investors to claim a deduction relating to the expenses associated with this wear and tear on the building and its fixtures – known as “depreciation”.

Depreciation can be claimed by any owner of an income producing property.

This deduction essentially reduces the investment property owner’s taxable income, thus increasing the cash flow of the property.

The property doesn’t need to be new, in fact it can be quite old and still may have a lot untapped “cash flow” value, when assessed by a good quantity surveyor.

To learn more about reducing the cost of owning an investment property and turning it into a positive cash flow property faster, please read “Increasing Cash Flow for Investors”.

https://www.mortgageaustralia.com.au/email/files/increasingcashflowforinvestors.pdf

Make sure you choose a loan with the features and benefits that are right for you.

Here’s a guide to common loan features and benefits.

1) Interest only repayments

You only pay the interest on the loan, not the principal, usually for the first one to five years although some lenders offer longer terms.

Many lenders give borrowers the option of a further interest-only period. Because you’re not paying off the principal, your monthly repayments are lower.

These loans are especially popular with investors who pay off the principal when the property is sold, having achieved capital growth.

2) Extra repayments

If you pay more than the required regular repayment, the extra amount is deducted from the principal. This not only reduces the amount you owe but lowers the amount of interest you repay.

Making extra repayments regularly, even small ones, is the best way to pay off your home loan quicker and save on interest charges.

3) Weekly or fortnightly repayments

Instead of a regular monthly repayment, you pay off your home loan weekly or fortnightly. This can suit people who are paid on a weekly or fortnightly basis, and will save you money because you end up making more payments in a year, cutting the life of the loan.

4) Redraw facility

This allows you to access any extra repayments you have made. Knowing you have access to funds can provide peace of mind. Be aware lenders may charge a redraw fee and have a minimum redraw amount.

5) Repayment holiday

You can take a complete break from repayments, or make reduced repayments, for an agreed period of time. This can be useful for travel, maternity leave or a career change.

6) Offset account

This is a savings account linked to your home loan. Any money paid into the savings account is deducted from the balance of your home loan before interest is calculated. The more money you save, the lower your regular home loan repayments.

You can access your savings in the usual way, by EFTPOS and ATMs. This is a great way to reduce your loan interest, as well as eliminate the tax bill on your savings. Lenders provide partial as well as 100% offset accounts.

Be aware the account may have higher monthly fees or require a minimum balance.

7) Direct debit

Your lender automatically draws repayments from a chosen bank account. Apart from ensuring there is enough cash in the account, you don’t have to worry about making repayments.

8) All in one home loan

This combines a home loan with a cheque, savings and credit card account. You can have your salary paid into it directly. By keeping cash in the account for as long as possible each month you can reduce the principal and interest charges.

Used with discipline, the all-in-one feature offers both flexibility and interest savings. Interest rates charged to these loans can be higher.

9) Professional package

Home loans over a certain value are offered at a discounted rate, combined with discounted fees on other banking services.

These can be attractively priced, but if you don’t use the banking services you may be better off with a basic variable loan.

10) Portable loans

If you sell your current property and buy somewhere else you can take your home loan with you. This can save time and set-up fees, but you may incur other charges.

1) Get a Free Property Valuation from us.

You will get a written notice from a professional valuation firm.

If you are selling this can come in very handy during negotiations with buyers. It will also guide you in setting a price with the real estate agent who is selling your home (or if you plan to sell it yourself).

If you plan to keep your current home and rent it out you will now know its rental value and how much equity you have.

Tip: For a quick assessment, a useful tool is to do a ?Sold? search on RealEstate.com.au and look at the real price that similar homes around you recently sold for – http://www.realestate.com.au/sold

2) Get your next home loan pre-approved.

A pre-approval lasts for 3 months and doesn?t cost you anything or obligate you to that lender. In most cases you can extend that 3 months by later providing updated income evidence.

Being pre-approved puts you in the strongest possible buying position. A seller is more likely to accept a lower offer if it comes from a buyer who has their finance ready to go.

Also, it ensures you don?t encounter any unexpected problems or delays that could put your new home in jeopardy.

Finally it means you can take some time to get the best deal you can, rather than being rushed to meet a ?subject to finance? deadline.

Personally, even as a Mortgage Broker myself with a good understanding of my borrowing potential, I always get pre-approved as soon as I plan to start house hunting.

Tip: To give yourself the best chance of a great home loan, use this checklist: ?20 Questions to Ask Your Mortgage Broker?.

https://www.mortgageaustralia.com.au/brokerchecklist.pdf

If you plan to sell your home it?s now just a case of waiting for the right offer. Or if you are going to keep it, you are ready to make an offer on the next one.

Any questions, just let me know, that’s what I’m here for.

Did you feel a sense of relief when you finally sorted out all of the details and contracts for your loan? You took out home and contents insurance, you arranged for a cheque to cover the last few costs at settlement.

And you saw the paperwork for the Lenders Mortgage Insurance so you’re all covered in case you can’t repay your mortgage, right? Wrong!

Many borrowers make the tremendous mistake of assuming that Lenders Mortgage Insurance is their safety net in case of unexpected circumstances. This mistake could cost you the farm, and maybe even a few chickens.

LMI

Lenders Mortgage Insurance (LMI) is designed to protect your lender or your bank – not you. Unless you were able to fork over more than 20% of the purchase price, chances are your lender would have required you to talk out LMI.

LMI doesn’t provide any assistance to you if you become unable to repay your mortgage. It won’t kick in if you break your leg, or if you suddenly lose your job. LMI will not provide for your family in the event of your untimely death.

Lenders Mortgage Insurance is just that – insurance for your lender. This is designed to protect your lender in case you don’t make your repayments. If the lender is forced to sell your property in order to recover their money – they want to make sure that they won’t lose out if the selling price is not as much as what you paid. This is especially relevant if you only paid a small deposit.

Personal Insurance

There are an enormous variety of insurance products on the market that protect you from all sorts of misfortune.

Life Insurance will provide financial assistance to your family in the event that you suddenly pass away or become permanently disabled. There are many insurers out there so it’s worth comparing lots of different Life Insurance products to make sure you’re getting a good deal.

Income Protection Insurance is a safety net in case you become unable to work due to illness or injury, and sometimes because of involuntary redundancy. This can be very helpful for those who are self-employed – would you be able to keep up your loan repayments if you weren’t working for a few months?

Trauma or Crisis insurance is another option that you can investigate, which will help you out in a variety of sticky situations.

The important thing to understand is – you have plenty of options. There are lots of insurance products out there that protect you from the unexpected. But LMI is not one of them – unless you’re a lender.

As a borrower, taking out a loan of any kind can be an overwhelming and complex process.

This isn’t helped by all the different financial product naming conventions and acronyms that you will undoubtedly encounter.

An area that often causes confusion is the difference between lender’s mortgage insurance and mortgage protection insurance…

So, who is protecting who?

To avoid a nasty suprise, please read our single page factsheet – Loan Insurance:

https://www.mortgageaustralia.com.au/email/files/lendersmortgageinsurance.pdf