In the often complicated and confusing world of residential financing, it pays to find a highly qualified and experienced broker to manage every aspect of your needs. Purchasing property is one of the biggest decisions of your life and you want to find the best location with the most attractive interest rates.
What Type of Borrowing Package do You Need?
There are many situations in which you require the services of a mortgage broker. In many cases, the purchase of residential or commercial property requires the expertise of a mortgage broker. They are well connected with many different lenders who can offer financing of many different types.
If you are looking to purchase commercial property to open your business or invest and rent to tenants, you can structure a borrowing package that will meet your needs. Also, if you are looking to purchase commercial equipment for your business, this can also be obtained. If you have the property and want to develop it and build your business to specifications, a new construction commercial mortgage may work for you.
When the time comes to purchase your first residence or move to a new location or larger property to accommodate a growing family, you will need the experience of a qualified lender. There are many choice home loans to choose from. Maybe you’ve been in your house for years and have built up equity. There are equity lending packages that can draw on the value of your property and allow you to do many different projects or upgrades you’ve been looking forward to.
Sometimes the interest rates drop below what you locked into and refinancing becomes a lucrative option. Qualifying for refinancing for a lower payment or even a shorter length of time can provide significant savings. While there are fees associated with refinancing, sometimes the benefits far outweigh the costs involved.
Have you ever thought about investing in a property to grow income? Find out what property investment is all about including the risks and income potential. There is a lot more to just an attractive interest rate when it comes to benefitting financially from an investment. Learning about funding your deposit, the best way to make payments and how to increase your investment wealth are important considerations.
What Types of Interest Rates and Mortgages Are There to Choose from?
Depending on several factors including your personal income, credit history and type of employment situation, there are various types of borrowing structures that may be beneficial to you.
One of the safest borrowing structures is called a fixed loan. You are offered an interest rate that stays constant during the life of the mortgage. If you do not refinance or default on your payments, every month you would expect to pay the same. This is a safe and predictable way of financing. There are some penalties. One potential penalty is related to paying off the balance early. You may incur a fee. Also, you cannot always make extra payments to speed up the process of paying it off.
A more risky type mortgage is based on a variable rate of interest. Sometimes the starting rate can be quite attractive. The borrower must be aware that over time, the rate of the interest can change with the market. Inquire about all levels of risks and benefits about this rate-fluctuating situation before making a decision. If you like the predictability of a fixed rate and the appeal of a variable rate, there are split rate interest mortgages.
Professional package borrowing can offer discounts, reduced fees and other benefits. This type of mortgage option requires a minimum borrowing level above $150,000 and an annual salary of $50,000 or more.
Other unique borrowing options exist that can maximize your income and mortgage together. In a 100% offset account, your income is deposited into the mortgage. By keeping money in this account, you can save on interest over time. You would use this type of borrowing as a way to manage all of your financial transactions.
If you have a less than stellar credit history you may qualify for a low doc borrowing structure. These types of approvals have declined over time with strict qualifying credentials required to protect lenders. If you have a good credit history and can offer a higher level of equity to put into the property, you may be able to apply for this type of borrowing.
In special circumstances, a family guarantee mortgage can be obtained. A family member would place their own property up for collateral and this would avoid the need for a deposit on the residence and in some cases no property insurance would be necessary.
Protecting your Property and its Contents
After you have finalized the financing of your new property and are preparing to move, it is imperative that you insure your new residence and its contents. Some lenders have partnered with quality insurers or you can seek out a company that meets your needs. In some cases, combining your loan package with insurance can result in a discount. Some benefits to look for include replacement cost as a part of the policy. This ensures that you will be able to replace an item at its current price rather than receive a depreciated value. By having a complete policy that covers against the many hazards a homeowner could face, you will rest assured that in case of emergency or loss, you will be able to place a claim and recover from any damage. Policies and their terms and condition vary, so be sure to read over your policy and ask any questions before finalizing the transaction.
If you have purchased investment property and are renting, it is good business sense to purchase landlord’s insurance. If you encounter an unfortunate circumstance such as the theft or damage by tenants or perhaps a default on the payments, protect your finances with this type of policy.
Finally, there is a policy available to protect you and your loved ones called Life Cover. In the event of a catastrophic illness or if you die, this type of coverage can provide a lump sum payment to cover the expenses of your mortgage. There are many terms and conditions to review concerning this coverage. Talk to your mortgage broker to inquire about any of the borrowing packages and insurance policies you feel might be a good fit for you and your family.