Ready to buy your first home?
Taking those first steps to buying your first home can be exciting and daunting all at once. But at Astute you have a friend in finance, we will work with you to meet your financial goals, no matter how long it takes. From understanding the costs of purchasing, saving for a deposit and making repayments, we’ll make sure you have all the information you need to be financially Astute.
We can tell you:
- How much you can borrow
- How much you will need for a deposit
- If you can purchase now or in the future
- What to expect in repayments, fees and insurance
- If you’re eligible for any grants or benefits
- Allowing additional repayments to be made
- Access to offset accounts to reduce interest
- Access to redraw facilities
- Ability to take repayment holidays
- The flexibility to move from a variable to fixed rate loan
Fixed rate loans allow you to fix the interest rate for a specified period, usually one to five years, sometimes up to 15 years. At the conclusion of the agreed fixed rate period the interest rate reverts to the standard variable rate, or you may renegotiate with the lender for another fixed rate term. The main advantage of these loans is that the borrower has a set monthly repayment.
The disadvantages are that you are limited to the amount of extra repayments allowed during this period (generally there is a limit) and also if the borrower sells their home within this period they may incur a break cost fee.
The standard variable rate varies throughout the term of the loan and generally has more features than other loan types. If interest rates fall your loan rate will come down, and alternatively if rates increase so will your loan rate. On a variable interest rate loan, you can make additional repayments without incurring a penalty, which means you can pay your loan off sooner.
Are you ready to invest in property?
Bricks and mortar remains a popular investment across Australia. An investment property can generate regular rent and has the potential to rise in value over time.
For property investors it is important to structure your property purchase and finance to maximise your investment returns, cash flow and any possible taxation benefits. Some common loan features and issues to consider include:
- Interest only loan repayments
- Use of equity in your own home
- Choice of person to be the legal owner/named borrower
- Variable or fixed rate loan
Is your home loan working for or against you?
A lot can change in a few years, changes to your personal life can impact your household as much as market conditions. Whether you’re wanting a better interest rate, wondering if you can afford a renovation or wanting to access equity for an investment, refinancing is just a normal part of life. At Astute, we offer our client’s regular financial health checks to make sure you know about the latest financial options for your unique circumstances.
If we find a better option we may recommend you refinance.
Benefits of refinancing can include:
- Access to more favourable interest rates
- Ability to consolidate debts into a single low rate loan
- Access to home equity for investment or renovations
- Flexible features that better suit your circumstances
- The possibility of savings through lower repayments