Entering the property market is no easy feat for a first homebuyer, but even parents who aren’t prepared to hand over cash for a deposit may help by being a guarantor on a loan. Before taking the plunge however, it’s crucial to be aware of the implications involved. Here are three questions to ask yourself to see if a family guarantee is right for you:  1. Am I financially fit to be a guarantor? The very first thing you should be certain of is whether or not you are in a financially capable position to pay off the loan if […]

There is more to selling your home than putting up a ‘For Sale’ sign on your front lawn. Here are the first things you should check off your list to help you get the largest return from your investment and to ensure the process runs as smoothly as possible.   Finding the best local agent Asking family and friends who have purchased or sold a property about their experience is a great way to ensure the agent you’ve enlisted will provide quality service. A website and promotional material will always highlight the agent in the best possible way, but word […]

If you apply for a home loan, particularly if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to lenders that you have a satisfactory amount of savings. This is to demonstrate your ability to funnel a portion of your income into repayments. Although it can differ, in most cases lenders generally look for consistent additions to savings over a period of at least three months and preferably a year or more. This means that the following are not considered genuine savings: a cash gift an inheritance casino/other gambling […]

Whether you’re after lower repayments or want to tap into the equity sitting in your home, refinancing can offer a world of benefits. Here are some things to be aware of so that you don’t find yourself hooked into a bad deal.   Don’t be fooled by the interest rate Finding a lower interest rate doesn’t necessarily mean you’ve scored yourself a better deal. In fact, a product with more features may cost you a bit more in fees or interest, but could save you more in the long run. Including features such as an offset account will prove valuable […]

Finance data for housing in December 2016 was released last week by the Australian Bureau of Statistics.  Housing finance continued to trend higher in December 2016 and the increase was driven by owner occupiers rather than investors. In December 2016, 7.1% of housing finance commitments were to owner occupier first home buyers, 17.9% for refinances by owner occupiers, 35.5% to owner occupier non- first home buyers and 39.5% to investors. Whilst constraints were implemented to investors in 2015 to restrict access to mortgage finance, investors are still playing a strong role in the market place. Even though demand for new […]

Purchasing a property is a thrilling yet nerve-wracking experience, which is why it can be handy to surround yourself with a network of support and expertise. Here are the different parties who may be involved in your home-buying process and how you can use this valuable knowledge base to answer your questions.   Mortgage broker (Mel Finance services) Brokers act as a liaison between you and the lender. They will find out about your finances and your property goals, and search for and negotiate a loan product that matches your needs. At Mel finance we have over 30 lenders to […]