Expectation, Excitement, Enthralling! These words best describe the emotions people feel when looking to purchase a property or asset by leveraging their ability to service a loan.
Personal lending really encompasses anything that an individual will either be looking to borrow for, such as property, goods, services, education or purchase insurance against loss from unforeseen events.
A range of government consumer legislation in Australia provides levels of protection that differ significantly to business lending, although these are starting to align as of 2021.
Knowledgeable brokers provide significant benefits, which aims to provide understanding different credit policies that apply to a given product. These products can range from Home Loans, Investment Property Mortgages, Construction loans, Bad Credit Loans, Personal loans, Car Finance, and General and Risk insurances.
It takes a very long time for a good broker to become knowledgeable about the varying aspects of these products; it is not simply a matter of pushing through a product disclosure statement (PDS) or a Credit Contract with an expectation that you can understand everything that's written in the fine print.
Sometimes, there are solutions available that would not have been considered without these many years of experience applied to an individual's circumstances, so it makes sense to discuss with authorised and licensed advisors to see if we can assist you in your personal journey to achieve assets or growth.
Take for instance the home loan journey--at first it seems like a pretty simple prospect-- find a property, put an offer on it, get a loan and move yourself or a tenant in!
But as many might tell you (some informed and experienced-and others perhaps not), the journey is not quite so simple and that straightforward.
Sourcing a good property requires a bit of research, a bit of good fortune, a little bit of luck, and advice from honest professionals. Why so? Economics can play a fairly big hand in your future purchases.
For instance, you need to answer whether it is in an area of growth or whether or not you see yourself staying there for the next 10 years. Apart from that, you also need to know whether that property will rent well if you’re not living in it or whether or not the owners selling below market or above market.
Costs and associated expenses are the other things you need to make yourself familiar with. Plus, knowing the right consultants/advisors that you will need to help you on your journey for that purchase is another essential thing to consider along with the what insurances you need considering for your particular circumstances. A good brokerage can assist in pointing you towards where you should start looking for these and more.
While personal and car loans are simpler, it can be tricky if not understanding how rates, fees, break costs, and if any and liabilities and responsibilities are going to impact on future lending and lifestyle.
All this comes as sweeping legislation in the form of Best Interest Duty (BID) that came into effect in 2021. This legislation takes us from, in the distant past, of a two-page application form to a volume of pages. The new application form considers the client position, which we believe is better for everyone.
Please feel free to scroll through these pages and see if we can assist in either your new dream purchase or refinance to make additional savings or re-order your life.
Our team of experts spends the time to find out about you and your circumstances. We will determine the best options for you based on your earnings, any debts you might still have and your current needs and objectives.
1. Credit reports
Confirm your credit rating scoring – your record of credit rating will play a role in the success of your application. If you have had bad credit, some lenders may not want to approve your loan application…
2. Loan repayment periods
The loan repayment period refers to the time between the first payment on a loan and the agreed date at which the entire loan need to be repaid. A longer repayment period means you pay less per installment, however for longer and with more interest than on loans with a shorter repayment period.
3. Interest rate types
Loans are presented both with fixed or variable interest rates. A fixed interest rate will not change for the duration of the loan repayment period, while a variable interest rate may change over the repayment period. Understanding the type of interest rate can help you decide on the loan that you take up eventually
The ability of a borrower to meet loan repayments, based upon the loan amount, the borrower's income, expenses and other commitments. Learn more about serviceability assessments and how they play a role in your application for a personal loan.
5. Penalties for pre-payment or in the case of default
Make sure that you are aware of the fees and charges which might be charged by the lender before taking on a loan, including what penalties can apply. For instance, a pre-payment penalty can happen as an extra charge imposed by some lenders when a borrower pays off their loan early, thus compensating the lender for any lost future income. On the account of defaulting on a secured loan, additional remedies can include repossession.
6. Supporting documentation.
When applying for a loan, you’ll be required to supply certain records to assess your qualification to borrow, and ability to make repayments every month. These documents include proof of your identity, bank statements indicating any savings or liabilities, and proof of income (such as pay slips and tax returns). Getting your paperwork in order before you apply for any loan can help you save time, and might speed up the loan approval process.
At Intellichoice Finance, we’ve been successfully providing finance solutions to satisfied clients for years. From home loans, bad credit loans… to owner builder loans… equipment and commercial finance – we’ve got it covered.