Property

Whether you're looking to purchase your first home, add to your investment portfolio, upgrade, or even downsize, it's essential to consider all your options.

Once you have found your dream home, there is still a lot to consider. By speaking with one our our mortgage brokers, we can discuss what is important to you in a home loan and find you an option to suit. You might be looking for a fixed or variable rate or combination of the two. A loan with redraw might be important or you might just want a loan with the cheapest interest rate that you can pay off as quickly as possible.

Did you know that your credit rating is affected each time you unsuccessfully apply for a home loan? Our finance brokers look at all available loans in the market and offer honest advice to suit your circumstances, ensuring that you get the right loan without affecting your credit score.

We consistently stay up to date with all government grants available and ensure that you maximise your borrowing capacity and have a great experience while doing so.

Our service doesn't stop once you've received your loan; we know that rates are constantly changing. That's why we audit your loan every 12-24 months to ensure that you're still receiving the great deal we helped you achieve in the first place.

Buying a home should be an exciting chapter of your life. Make it even easier by letting us do all the hard work for you.

When was the last time you checked your home loan interest rate? Have you ever considered how much you could potentially be saving if you audited your loan every 2-3 years? At Finance Brokers Tasmania, we take the hassle out of refinancing. One of our mortgage / finance brokers will work with you to audit your loan and save you time and money. In some cases, we have saved clients thousands of dollars and years on their home loans with a quick and simple refinance.

Refinancing your loan can also be a great opportunity to utilise the equity you have built up in your home. Using the equity in your home could help you finance:

• renovations
• a new vehicle or other large ticket item such as a caravan
• a loan consolidation

Or are you looking to purchase an investment or help your children purchase their first home? In an ever-changing market, it's important that you stay up to date with these changes.

No matter your priorities, work with us to ensure your home loan is paid off quickly and in the most cost-effective way.

To read more about using the equity in your home, visit our blog Refinancing to Make The Most from the Equity in Your Home

• How much can I borrow for my home loan and how much of a deposit will I need?
• Should I get a pre-approved loan?
• What fees will I need to pay? How much will Tasmanian stamp duty cost on my purchase?
• Am I eligible for the Tasmanian Government First Home Owners Grant or the Federal Government First Home Loan Deposit Scheme (FHLDS)? What is the difference and how do I apply?

Purchasing your first home is meant to be an exciting time, but we understand it can be confusing. Our experienced finance brokers take the stress out of your first purchase by explaining all your options and helping your find the best loan for your needs while ensuring you can still live comfortably.

You can then focus on creating happy memories in your new home (and all the fun things like picking furniture etc.) knowing that with over 35 years guiding first home buyers, your home loan is in good hands.

Want to know how much you can borrow? Have a play with our home loan calculator.

A fixed or variable rate? Why not the best of both worlds!

If you want the flexibility of a variable rate but would still like the certainty and security of a fixed rate, there is an option for you.

Lenders allow you the opportunity to split your loan to partially be on a fixed rate and the other on a variable. There are no restrictions on how you split your loan, whether it be 50/50, 70/30 or 90/10!

Right now, with interest rates on the rise, it's the perfect time to consider locking in a fixed rate for a few years to secure a great deal. All the while still sitting on a variable rate to see what happens next and having the ability to be able to redraw any additional repayments that you've made!

Our expert team at Finance Brokers Tasmania has years of experience with split loans and will discuss the best option for your needs.

While you're here, have a play with our split loan calculator to find the best comparison for you.

A variable-rate home loan means that your interest rate may increase or decrease at any time during your loan. There are several advantages to a variable interest rate, with the main benefit being its flexibility. Other pros include:

• Variable-rate loans often have a free (or low cost) redraw facility
• If interest rates decline, you may have lower monthly payments
• Most variable-rate loans allow you to make unlimited extra repayments
• Variable home loans often come with additional features available, like the ability to have an offset account

Cons:

• If interest rates increase, then you may end up paying more interest on your loan
• Variable rates can be more challenging to budget for if your minimum repayments change

Before increasing or decreasing your interest rate, your lender must notify you as per the terms of your loan agreement.

Not sure whether to go variable or fixed? You can also split your loan.

A fixed-rate loan is guaranteed not to change for the length of time you have agreed to fix it for - typically anywhere from 1 to 5 years.

Having a fixed-rate loan makes your budgeting easy as you consistently make the same repayments each time. Other advantages include:

• Peace of mind knowing that if interest rates increase, your repayments won't
• Some fixed rates may be lower than the advertised variable rate
• If you are planning on changing your income, a fixed rate might make it easier to plan ahead

Having a fixed-rate loan offers a level of certainty, but there are a few things to consider if you're looking at this option for your home loan.

• Less flexibility for additional repayments
• Home loan payments don't fall if interest rates go down
• Extra repayments are often not allowed or are limited
• Some fixed-rate loans are subject to extra fees or charges

If a fixed loan is perhaps too restrictive, maybe a variable or split loan is a better option for you.

It's also important to be mindful of revert rates. Rates are fixed for your agreed period at the beginning of your loan. The rate will revert to the current variable rate when the fixed term ends. So it is essential to keep your eye on where your interest rate will sit as the fixed-rate portion of your loan comes to an end. Better yet, let us do it for you!

Commonly people will start their property search by attending open homes, chatting to agents, making offers, and then organising their home loan, but this doesn’t have to be the case. Applying and being accepted for a loan can be your first step, and there are many advantages to obtaining a pre-approved loan.

If your loan is pre-approved, you will know your exact budget. That means when searching online for a property, you know precisely what is within your reach - saving you time!

By having your loan pre-approved, you will have already completed a massive step in the buying process. Many sales are subject to finance, meaning it’s a long, drawn-out process for the buyer (and the seller). Having your loan ready to go is favourable for the seller so that the process can be wrapped up quickly, and you both can move in and out sooner!

Having a loan there ready to go proves that you’re a serious buyer. When heading to open homes and chatting to agents, dropping your pre-approved loan into the conversation is like music to their ears.

Pre-approved loans are valid for up to 3 months, so you have time to make the right decision and scour through the hundreds of properties until finding your dream home.

For most people, buying your first home is a better financial decision than renting long term. We understand that with the high cost of real estate, saving for a deposit with all your other expenses, has never been harder.

Never fear - there are still ways to get you into the housing market sooner. Have you considered a parental guarantee? It's more common than you think.

Almost 50% of first home buyers get assistance from their parents (affectionately known as the bank of mum and dad) for their home deposit. Parents are able to contribute in a couple of different ways:

• Through an informal cash loan (or gift). This can be done via your parents savings or refinancing their home loan and accessing cash this way. Along with your own savings, this will give you a healthy deposit, reduce the amount you need to borrow and potentially eliminate the need for lender's mortgage insurance (LMI).
• A security guarantee allows a family member to use equity from their own home (or holiday home) to provide additional financial security to your lender. This may enable you to borrow the total purchase price, meaning some lenders will not require you to have any savings or a deposit.

With both of these options, you will still need to be able to show the lender that you can service the loan. This means you will need to demonstrate to the lender that you can afford to make the repayments on your mortgage once you have taken care of your ongoing expenses.

If you're not sure whether you're better off renting or buying, have a play with our rent vs buy calculator to explore your options.

Whether you're buying your first investment property or a seasoned property investor, Finance Brokers Tasmania can help you build your property portfolio.

Property investment can be a great way to build your wealth. But it is essential to understand your borrowing power and make suitable investments to help you grow and diversify your portfolio.

You don't always need a cash deposit to buy an investment property; you can use your first purchase as equity. Equity is the difference between the current market value of your home minus the amount of money you still owe. For example, a property worth $400,000 with a mortgage loan of $150,000 has equity of $250,000.

It is important, though, to know your risks. Through our personal experience and our industry experience, our mortgage brokers will work with you to fully understand your risks and what is involved.

More and more Australian's are working for themselves these days, and unfortunately, that can mean you need to jump through even more hoops when applying for a home loan.

Being self-employed often means it can be challenging to prove your income. Thankfully, Finance Brokers Tasmania have years of experience arranging loans for self-employed Tasmanians.

Self-employed borrowers have to jump through all the same hoops as those that aren't self-employed, but the challenge is proving your business' cash flow.

Because we are a full-service broker, offering commercial loans and personal, we have years of experience working with Tasmanian business owners to secure their home loans.

While the guidelines are different for each lender, most mortgage lenders require proof of at least two years of steady self-employment. However, some do consider your application if you have just one year of self-employment but can prove a two-year history in a similar line of work.

Being a locally owned business, we understand what it's like to be self-employed and tailor a loan arrangement to suit your needs and fit your lifestyle.

A reverse mortgage allows you to borrow money using the equity in your home as security. If you are over 60, you may be eligible to apply for a reverse mortgage, giving you financial stability in retirement.

Similar to a typical home loan, you borrow against the equity in your home but unlike a regular loan, you are not required to make repayments.

Payments can be taken as a lump sum, line of credit or as a monthly repayment. This could allow you the ability to:

• make home improvements
• supplement your pension
• pay for home care

As you are not making regular repayments, you should be aware that the interest charged on your loan will continue to grow, adding to the amount you originally borrowed and overtime reducing the equity in your home.

You will still own your home and can stay as long as you wish. When you or your deceased estate sell your home, the loan is repaid in full, including interest and fees to the reverse mortgage provider.

It's important to note that the interest rate on a reverse mortgage is likely higher than a standard home loan and if variable interest rates rise, the interest you pay each month will also increase.

To read more about a reverse mortgage, read our blog Is a Reverse Mortgage a Good Idea to Help in Retirement

When purchasing a home, it’s important to note that there are other associated fees and expenses that you will incur on top of the agreed purchase price. Below is a summary of costs added you need to consider:

• Stamp duty
• Property valuation
• Legal/Solicitor fees
• Registration transfer
• Loan establishment
• Mortgage insurance (if applicable)

There are many grants available at the moment, such as 50% off your stamp duty or the First Home Owners Grant, that certainly help aid these extra costs.

Another thing to consider is the ongoing costs once your property has settled. Depending on your living situation and the property itself, these charges will differ, but it’s essential to consider the below when budgeting:

• Council rates
• Water rates
• Land tax
• Body corporate fees (if applicable)
• Home and contents insurance
• Maintenance costs

At Finance Brokers Tasmania, we are firm believers in your loan working for you, not you working for your loan. That’s why we consider all of these expenses when assisting you on your financial journey.

We’re certainly not trying to scare you, simply preparing you to take that next step on your financial journey comfortably.