Pointer Finance Blog
Resources
Overwhelmed by all the property terms and loan options? These handy resources may help. And if there’s anything you’re still unsure about, please get in touch.
How to know if it’s the right time to refinance your mortgage.
Refinancing your mortgage can open up a world of opportunities for you. Keeping your options open and shopping around every few years can result in more savings, more flexibility and lower interest rates; giving you the freedom to take that next step. Sounds like a no-brainer? In most circumstances, it is. It’s important to remember …
Broker or Bank? What’s the best option for you
When you’re looking for a home loan, you have two main options. You can go to a finance or mortgage broker or you can go through your bank. While a bank will only offer you its own products, a mortgage broker is an industry expert who will take the guesswork out of finding the mortgage …
Guarantors. Learn How They Help You Secure Finance For Your Property.
When you’re desperately trying to save up a deposit for a home and just see the prices of property climbing and climbing, it can be really disheartening. We get it. If you find yourself thinking “Will I ever own a property?”, there is a solution you might not have considered - using a guarantor to …
Achieve your property goals, using your Self-Managed Super Fund.
Did you know you can use your super savings as a way to enter the property market? For years, lenders have allowed you to use your SMSF fund to buy a residential property, but there are strict guidelines around it. Before we dive in, by SMSF, we mean Self-Managed Super Fund which is essentially a …
A home loan for the self-employed. Get to know a Low Doc Loan.
If you’re self-employed (we know there’s a lot of you!), you may have found it difficult to get a traditional mortgage. Don’t despair. There is a loan called Low Doc Home Loan that has been designed specifically for you! Let’s explore exactly what it is. Dissecting the dilemma of the self-employed. When you are self-employed, …
RBA Interest Rate Rise. What does this mean for you?
In a decision that caught some by surprise yesterday, the Reserve Bank lifted interest rates by half a percent to 0.85 per cent 📈 You would have undoubtedly heard this on the radio, seen it on the news or read the announcement on Linkedin from someone in the finance industry. So, we're not here to …
Pros and Cons of a Basic Residential Loan
Basic residential home loans generally consist of lower fees along with a lower interest rate in exchange for no/basic features which are common in other home loans. For example, a basic residential loan could be 0.20% p.a. lower on its interest rate but with no offset account - which could be a challenge for a …
Key financial terms that you should keep handy
Coming across unknown financial terms can be confusing. Pointer Finance has brought you some key financial terms to make your financial vocabulary strong and make banking life easier. So, next time when you meet or talk to a finance broker you know what you’re talking about or what you’re being talked into. Account – In …
What are Comparison Rates?
To make finding the right loan easier, and to make advertised rates as transparent as possible, there are comparison rates. You’re looking for the best mortgage deal and you see an advertisement. ‘3.64% INTEREST!’ and, underneath that seemingly too-good-to-be-true rate, ‘4.35% comparison rate’. What does this mean? A comparison rate is a percentage rate that …
Solicitors and Conveyancers – What’s the difference?
Buying property is one of the biggest financial decisions most of us will make in our lifetime and it’s important to get it right. Solicitors and conveyancers are different, and its key to have the right one on your team, to avoid paying too much while still getting the advice you need. Keep in mind …
Can your profession save you on your home loan?
Many of you might not have to go far beyond your current profession to save you money on your home loan. This is due to the fact that your profession may help you qualify for additional benefits that are not available to the general public. Based on their professions, doctors, accountants, attorneys, and teachers can …
Lenders mortgage insurance (LMI)
Lenders mortgage insurance (LMI) is needed when the loan value exceeds 80% of the purchase price of a property, or property valuation if refinancing. A lender deems a loan to be riskier if the Loan to Value Ratio (LVR) is greater than 80%, in which case LMI is charged. LMI, which is different to mortgage …
Stamp duty
When purchasing property, knowing how much your state or territory charges for stamp duty is essential because it could be one of your biggest financial outlays after the deposit. What is Stamp Duty? Stamp duty, also referred to as "transfer duty," is a tax that states/territories charge on transactions involving the transfer of real estate …
Getting your home loan approved faster
The time between your initial contact with your broker and loan approval cannot be predicted because each home loan application is different. However, there are a few things you can do to make the process go smoothly. The most frequent cause of a delay is a lender's turnaround time to assessment, particularly when some lenders …
Loan to value ratios
The mortgage industry is a vast world with its own language. One of the many abbreviations used is 'LVR,' which stands for 'Loan to Value Ratios.' This is what it means. When determining how much you can borrow to buy a home, how much of a deposit you need to save, and whether you qualify …
How Do Lenders Assess Applications?
Brokers can help connect you to the lender best suited to meet your mortgage needs by shopping around on your behalf, in contrast to loan officers who are exclusively employed by one lending institution and are only able to offer that institution's products. Almost 70% of borrowers today turn to finance brokers when looking for …
How to buy a home when you’re self-employed
Borrowers who are self-employed frequently face the challenge of being unable to provide payslips and tax returns to support their loan applications. This, however, does not have to prevent you from purchasing your dream home. For applicants who are self-employed but lack the standard forms of job verification like payslips, several lenders provide low-documentation (lo-doc) …
What’s a simple way to increase my borrowing capacity?
For lenders to determine your borrowing capacity they will perform a risk assessment to better understand your financial health. By doing this, they will determine if you are at risk of your repayments defaulting. If the likelihood is low, then your borrowing capacity will increase. There are several factors that contribute to this assessment. These …
How to avoid early termination fees
Many home loans and residential loans have early termination fees, which are payable if a customer terminates a loan within a specified time. Lenders have this in place primarily to deter borrowers from changing loans frequently, but also to cover costs they incur as part of the process. If you have signed a contract and …
Rental Yields: What you need to know before investing
Rental yields are a measure of returns on rental properties. When you purchase a property, the thought process is to rent it out, collect the rent and hopefully receive a profit once the mortgage is paid off. However, since investments can fluctuate in value and sometimes not go your way it can be useful to …
Using a broker to secure your business finance
A business loan broker performs a role just like a mortgage broker or indeed any other brokerage firm. They will act as a middleman between those seeking a loan and the loan providers. They’ll collect information on your business and with your approval apply to small business loan providers on your behalf. Businesses tend to …
Managing your investment property: What you should know first
The option is entirely yours when it comes to managing your investment property, however it’s best to weigh up the pros and cons before moving forward with your decision. For first time landlords, managing your investment property can seem like a simple way to pay off your mortgage, but there is a lot more time …
Avoid overpaying on a home
Overpaying for a house is every buyer’s worst nightmare. Knowing what a property is worth is crucial - so do your homework, know what you want, understand the market and make sensible offers Before being swept up in the property market, consider the following things. Set a benchmark Compare nearby properties - real estate comps …
Buying a home: What are the additional costs to look out for
When taking out a mortgage, many people forget to consider the fees and expenses that come on top of the purchase price of the property. Homebuyers will usually incur two types of costs: upfront costs when securing the loan, and ongoing costs once you’ve bought the home. It is best to always calculate your mortgage …
Cash buffer for property investors
Thousands of Australians invest in property for capital gains and tax benefits. However, it’s important to retain a cash buffer to provide security in the case of unexpected costs or loss of employment or rental income. These can be in the form of unplanned maintenance and repairs, and mortgage repayments. A buffer ensures that you …
7 Effective Ways to Boost Your Borrowing Capacity Amidst Rising Interest Rates
Are you concerned about recent interest rate hikes affecting your home loan plans? Despite three months of rate stability, concerns persist about the possibility of future increases. This apprehension affects both experienced investors and first-time homebuyers. While rate stability offers temporary relief, the ever-changing economic landscape keeps borrowers on their toes, highlighting the importance of …
Pointer Finance Partnership with Kerrs Law
Pointer Finance are proud to have partnered with commercial and personal lawyers Kerrs to offer their clients a range of comprehensive mortgage and finance services. Fractures in communication channels between the legal and finance sides of a transaction jeopardise deadlines and just creates more stress to an already stressful and busy time. Our partnership aims …
Understanding Assessment Rates in Australian Home Loans
When it comes to securing a home loan in Australia, understanding the concept of assessment rates is crucial. These rates play a significant role in determining your borrowing capacity and ensuring you can comfortably handle your loan repayments, even in the face of potential interest rate increases. In this blog, we will delve into the …
How to Use Your SMSF to Purchase a Residential Investment Property.
When it comes to using your self managed super fund (SMSF) to purchase residential investment property in Australia, it is important to understand the rules, costs and risks associated. In order to have everything runs smoothly, you must keep yourself up to date with any changes or updates introduced by the government, and ensure that …
How to Use Your SMSF to Purchase a Commercial Investment property.
Recently, you may have seen that we released a post detailing all of the ins and outs of using your SMSF to purchase a residential investment property. Well, now it’s time to delve into using your self managed super fund (SMSF) to purchase commercial investment property here in Australia, and similarly to residential, it is …
Five Easy Goals to Get Your Finances in Shape in 2024.
Did you know that getting on top of your finances is one of the most common new year's resolutions here in Australia? A recent study conducted by Money Smart showed that while over 72% of Australians aged between 27-34 have a financial goal for the new year, only 33% of those are not on track …
5 Ways Mortgage Broker Services Help Borrowers with Rising Interest Rates.
Here at Pointer Finance, we know that the mortgage and refinancing market can be a daunting one, and sifting through lenders and their individual T&C’s can feel like a never ending task. However, what people don’t always realise is that utilising a mortgage broker service will actually streamline the entire process, and in the end …
How Much Money Do I Really Need For A House Deposit?
It’s no surprise that the Australian housing market is best known for being a complete rollercoaster ride, with prices, properties and interest rates fluctuating on a daily basis. Here in Australia, our housing market has seen a significant spike following the impacts of covid-19. With house prices sky rocketing, and interest rates following along closely, …
Interest Only Home Loans
Are you looking at exploring the possibility of an interest only home loan? An interest only home loan gives you the freedom and flexibility to secure your dream property, while only having to pay the interest on the mortgage for a set initial time period. This period is typically somewhere between 1 to 5 years, …