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Wed, Oct 15th - 9:36PM

Pay As You Go (PAYG) Income Verification and Home Loans

If you are a first-time home buyer, an investor or you are looking at buying another home to live in and use as your primary residence, you need a home loan. And, when you apply for home loans solutions, lenders ascertain your financial condition by taking a look at your income.

The Need of Income Verification Process

In today's working environment, people move jobs more frequently to multi-skill themselves or for better working conditions and benefits. In some job categories, employment contracts are arranged and set for a number of years, and casual employment is also on offer.

Income verification is a key criterion used by lenders/credit providers when they assess a person's suitability for a home loan. The process is required to establish whether or not you can afford the repayments, and it is incumbent upon lenders/credit providers to act responsibly when assessing a home loan for approval.

Documents for Income Verification

Examples of the type of information that you may need to provide for your verification of income include:

• Your latest pay slips

• Your recent payment summary (Group Certificate) and Income Tax Return, and

• Confirmation of your employment

Income and Expenses - "Serviceability" Calculations

In order, to determine your ability to meet your loan repayments, the lender/credit provider will use your current yearly salary as a benchmark, and they will perform a calculation known as a "Serviceability" calculation. The calculation will assess your ability to repay your home loan, both now and in the future. Most lenders/credit providers may consider your bonuses, overtime, etc. when determining your income, and they will use the following percentages when calculating your income:

• Salary wages - usually 100% of this figure

• Overtime - usually 50% of the average income, if consistently earned over 12 months

• Bonuses - if consistently earned over two years

• Rental income - up to 75% when received as income (this allows for untenanted weeks)

• Investment income - this includes interest and dividend income if regularly received over two years

• Family Allowance - Centrelink benefits may be used in the calculations where dependents are under the age of ten years

In addition to determining your income, you current expenses will be considered for determining your ability to meet your home loan repayments. Your expenses can include:

• Other loans - Your monthly repayments for any loans not being refinanced

• Credit Cards - This includes the "limit" of your credit cards (not the balance outstanding)

• Living Expenses - These are expenses that can be associated with living life on a day-to-day basis, and are meant to include things like food, insurance, utility payments, clothing costs and education expenses, etc.

Most lenders/ credit providers will consider the following PAYG employment types when assessing a person's suitability for a home loan:

• Permanent Employment - You should have a minimum of six months in your current employment. If you have less than two years in your current employment or you are on probation, you will need to demonstrate two years’ employment in a previous job and the same industry

• Permanent Part-Time Employment - You should have a minimum of 12 months in your current employment

• Casual Employment - You should have a minimum of 12 months in addition to your normal employment

• Contract Employment - You should have a minimum of 12 months in your current employment

• Second Job - You must have two years of continuous history in the position

So, now that you know about the income verification process of obtaining a home loan, it will be easy for you to keep all your documents ready. But, don’t worry if you are confused about your income, expenses or any other thing, you can employ the services of an expert finance broker to help you with your home loan. He/she will understand your situation and provide you with optimum solutions and help you in managing the loan process effectively and successfully.

Singh Finance is an Australian finance brokerage firm that has a team of best mortgage brokers. The firm is your one-stop solution for obtaining bad credit home loans, low document home loans and car finance with lower rates. Call on 0424 190 908 and get ready to avail expert help and pre-approved finance options.


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Tue, Oct 14th - 9:55PM

Answers to Home Loan Questions of Non-Residents and Temporary Residents Living in Australia

Australia is an attractive destination for investors. Many potential migrants (non-residents and temporary residents) are eager to invest in real-estate market of the country. But, they do not fully understand that "Australian Visa Requirements" must be satisfied before they can consider borrowing funds to purchase a new or used home, or investment property in Australia. So, before you start applying for a loan, here are a few things that require attention of every potential investor.

Visa Subclasses Preferred by Lenders/Credit Providers

It has become increasingly evident that lenders/credit providers will normally prefer to lend to any of the following Temporary Resident Visa Subclasses:

• Subclass 457 - Temporary Business (Long Stay) – Standard Business Sponsorship

• Subclass 405 - Investor Retirement Visa

• Subclass 415 - Foreign Government Agency Visa

• Subclass 426 - Domestic Workers Visa

• Subclass 995 Diplomats Visa

• Subclass 422 - Medical Practitioner (Temporary) Visa

Diverse Home Loan Application Process

All Visa holders are assessed differently, and the process will depend on the type of Visa holder you are. Interestingly, lenders/credit providers have identified that the most common types of Visa holders applying for home loans are:

• Visa holders on Spouse Visas (subclass 309/100 and 820/801), and

• Visa holders on Temporary Business (Long Stay) – Standard Business Sponsorship Visas (Subclass 457)

Security Types Considered by Lenders/Credit Providers

Here is a list of security types that you can consider. However, it is important to note that any dwellings must have never been occupied or been previously sold:

• To buy vacant land, so long as you start continuous construction within 12 months

• To buy units, townhouses, and house/land packages

• To buy existing residences for redevelopment as long as:

>> the development will increase the supply of housing

>> the land remains unoccupied during redevelopment, and

>> no more than 50 percent of the dwellings in any one redevelopment are sold to foreign investors

Important Factors considered by Lenders/Credit Providers

Once you get your Australian Visa, you can apply for a home loan. It is always advisable to seek help of an expert finance broker who specialises in getting home loans for non-residents and temporary residents.

The finance broker you employ for your services should have a thorough knowledge of what the lending policies and standard requirements are for specialised lenders.

He/she will prepare a "Home Loan Checklist" to help you understand what factors the lenders/credit providers take into consideration like:

Residency Status: The time remaining on your Visa, your Visa conditions, and the country you are a citizen of

Genuine Savings: You must be able to prove that at least 5%of the purchase price is being saved in an account in your name. And, the other funds can come from any other source including a gift from your parents overseas.

Employment: For some lenders/credit providers if you are:

• Borrowing 80% of the property value, then you can be in your current job for as little as one day, or

• Borrowing more than 80% of the property value and up to 90%, then you may be required to be in your job for six months or more

However, if you are a permanent employee, you are held in a higher regard by the lenders/credit providers than if you are a casual, a contractor or a temporary employee.

So, don’t worry about getting pre-approval on home loans for non-residents and temporary residents. An expert finance broker will do all the hard work for you to make sure you get a quick pre-approval. So, it is ideal to employ the services of a reputed finance broker as he/she will save you all the trouble of establishing if your Visa requirements are met and to find you the best home loan deal.

Singh Finance is a reputed Australian finance brokerage firm that has a team of expert finance brokers. The firm specialises in getting immigrant home loans for temporary residents and non-residents of Australia. Our team of expert finance brokers will even help you in finding quick business loans for your business. Call on 0424 190 908 today.


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Mon, Oct 13th - 8:14PM

How can a Professionally Qualified Finance Broker help you in obtaining Trust Loans?

A trust structure is popular because it provides advantages like asset protection and tax minimisation. So, many people opt for it. If you want to establish a trust, you must first speak to your accountant and solicitor to take advice regarding the structure of the trust including legal and tax implications. Whether you choose a discretionary trust, family trust, unit trust or a hybrid trust, your accountant or solicitor will be able to guide you in the right direction.

You must remember that different types of trust structures are assessed by a lender/credit provider in different ways, for example:

• Some lenders/credit providers are more favourable to discretionary trusts and family trusts and

• Few lenders/credit providers may favour hybrid trusts and unit trusts

Once you have established a trust and want to make an investment property purchase, you can apply for the best trust finance. Here is a list of documents that a lender/credit provider will require:

• A certified copy of the stamped Trust Deed

• A certified copy of the Company Constitution ( if it is a Company Trustee)

• Tax Returns and Notices of Assessment for the Trust (unless it is a new trust, or if the trust is applying for a low doc home finance)

• Identification for all Trustees, directors of trustees and beneficiaries of the trust

A lender/credit provider will also perform credit checks on all the beneficiaries who will become guarantors, plus any business entity that is linked to the borrowing or who have an association with the borrowing trust and the directors for the entities.

The Role of Expert Finance Broker in obtaining Trust Loans

Many mortgage brokers, lenders and banks do not have complete idea about all the types of trust structures. So, they hesitate in offering quick approval on trust loans. So, it is important to choose a professionally qualified and expert finance broker for managing your trust finance process.

If you choose an experienced and well-reputed finance broker, he/she will:

• Understand your financial needs by working closely with your accountant and solicitor

• Ascertain your current financial situation and devise an optimum strategy for you

• Ensure that you meet all the lender’s requirements

• Provide with various loan options

• Help you in choosing the best trust loan option

Truly, an experienced and professionally qualified finance broker can prove to be blessing for borrowing under trusts. So, next time you start looking for obtaining trust loans, don’t forget to employ the services of an expert finance broker.

Using an experienced finance brokerage firm like Singh Finance for obtaining best hybrid trust loans is a clever strategy. The firm will help you in obtaining easy approval unit trust loans. The firm’s expert finance brokers will understand your situation and provide you with right solution. Call on 0424 190 908 or enquire online now.


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Sun, Oct 12th - 9:17PM

A Construction Loan can make Your Dream of building a New Home a Reality

The idea of building your dream home can be both very appealing and very exciting. If you are deciding to build your dream home, there are a lot of things you need to consider prior to commencing your building project, for example, you may have to decide:

• Do you want to demolish the existing home you live in and re-build a new home?

• Do you want to purchase vacant land and construct a new residential dwelling on the purchased land?

• Do you have ready cash available to cover the construction costs?

• Do you have to get a Construction Loan (also known as a Building Loan or Construction Mortgage) to fund your building project?

• If you are a first home buyer, you will have to find out about the Government's First Home Owner Grant Scheme

Once you have decided on the above-mentioned factors, you will have to start your work on construction home loan or real estate finance which is secured by a mortgage on the property being financed.

Lenders/credit providers have different construction time frames and drawdown schedules that they allow for construction loans. However, most are similar, and here is a quick synopsis of how a construction loan works:

• The lender/credit provider will fund the loan amount required by you to cover the cost of purchasing the land and for the building construction costs

• He/she will break down the loan amount into progress payment amounts drawdown, which are made to your builder as each stage of construction is completed

• He/she will require the construction of your new dwelling to be completed in the short-term (usually from 6 months to three years)

• He/she will take required real estate security by securing a mortgage on the property being financed

• He/she will charge Interest Only during construction (interest is only calculated against that amount which has been drawn down)

If you are interested in a construction loan, then my best advice is to get a pre-approval with the help of an expert finance broker. He/she will help you to know and understand:

• How much disposable income you will want?

• How much will your building project cost?

• How much cash (down payment) do you have to put into your building project?

• How much can you afford to borrow?

• Where can you score the best construction finance deals and products?

• If you are eligible for the First Home Owners Grant scheme as a First Home Buyer?

Once you discuss these things with the finance broker, you will be able to judge your financial situation in a better light. It will aid the broker in finding pre-approved construction loan packages for you. You can start looking for a new location to build your dream home, or you can look at demolishing the existing home you live in to re-build a new home after obtaining pre-approval.

Singh Finance not only helps individuals in building their dream home but also ensures that property developers secure easy development finance for builders. The firm is experienced in handling loan requests of different types. So, don’t worry if you want a low document home finance or low deposit home loans package. Call on 0424 190 908 to discuss about pre-approved home finance.


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Tue, Oct 7th - 3:55AM

A Complete Guide for acquiring Non-conforming Home Loans

In the past, lenders considered default history as the most damaging thing for a home loan. They rejected home loan applications of people with defaults in the past. But, today the condition is different. Fortunately, there are some lenders and credit providers who offer home loans to people with default history. Such loans are called non-conforming home loans.

Non-Conforming Home Loans

Non-conforming home loans are the same as regular home loans. But, owing to the extra risk involved, you will most likely have to pay an increased interest rate.

The Criteria to Get a Non-Conforming Home Loans

Non-conforming home loans are only available if you can meet the following criteria:

1. You should not be in bankrupt or taking advantage of a part 9 creditor agreement within the Bankruptcy Act. (You can however apply for a non-conforming home loan the day you receive your discharge from such restrictions).

2. You need to put together a minimum deposit of 20 per cent (or have 20 per cent equity in the property that you want to refinance). The maximum non-conforming home loan is 80 per cent of the property value. However, any First Home Owner Grant (FHOG) that is available to you will form part of your deposit

3. 20 per cent deposit is mandatory even when you have a guarantor. Likewise, it a large salary will not give you relief from the deposit amount.

4. You will be required to find money to pay any stamp duty and other costs that outside the loan allocation funds.

5. You should have sufficient ongoing income to service the loan repayments. (Usually people on pensions or those who are unemployed cannot obtain a non-conforming home loan).

What Information should be provided to a Non-Conforming Lender?

Lender will look at all the red flags in your credit file. So, if you try to hide something from the lender, you will not improve your ability to get a bad credit home loan. In fact, you will simply make the lender more suspicious. It may also lead to your application being declined because you were not transparent enough or fully honest about your circumstances. So, be transparent and open about each and every entry appearing your credit file.

So, next time you venture to out to get a non-conforming home loan, remember to be clear about your financial details. Do keep in mind the other points mentioned in this article. It will ensure stress-free approval.

Singh Finance is the perfect Australian brokerage firm for bad credit buyers. It not only offers home loans default credit history but also provides quick approval on home loans for discharged bankruptcy. Call on 0424 190 908 for more information.


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Fri, Oct 3rd - 10:58PM

Car Finance Solution - Solve your Doubts Today

An automobile is not just a means of communication. People are passionate about it and their love for the four-wheeled beauty is eternal. If you want to buy a car of your own, here’s some help. The car financing guide will provide you information about the entire process. It will aid you in obtaining a successful finance deal. It includes a list of factors that you should consider before taking a decision. So, let’s start.

Be ready

Financing a car is not like buying a new pair of shoes or a shirt. You will have to be ready with few things.

• Borrowing Capacity

Good things come to those who wait and prepare. So, don’t think you can find your favorite car and the perfect loan package in a day. Before you start looking for your new or used car, you must sit and calculate your budget. Know much you will be able to borrow. Also, ascertain your monthly payments. You can use online calculators for this purpose.

• Documents

A. For PAYG Employed Applicants - Copies of recent 2 pay slips and the Group Certificate for last financial year are required

B. For Self-Employed Applicants - Copies of the last 2 years Tax Returns including full financials

• Deposit

The dealer may ask you to pay a deposit so that he can reserve the car for you. Deposit is ten to twenty per cent of the car loan amount. It is not a small amount. So, you should spend some time in getting together money for it.

What’s available?

Before you start searching for the low rate car loan deal, you must have knowledge of the car financing options that are available in the market. There are two main sources of car financing.

1. Car Dealer Finance (i.e. provided by the car dealer)

2. Alternative Car Finance (i.e. provided by banks, credit unions, finance companies, etc.)

After you decide the source of financing, you will have to choose the car financing product. There are a number of car financing options to consider. To make your decision process easier, here is a list:

• Personal Lease

It is an ideal option if you are using the car for personal purpose. The lease term can vary from one to five years. It is available with both fixed and variable interest rate. Its rates are lower than other car finance products. It is possible for you to select the residual value and opt for lower monthly repayment.

• Car Loan

A car loan enables the lender/credit provider to take security over the car that you are buying. It helps them in protecting their investment. To get approved for a car loan, you must purchase your vehicle from a licensed car dealer. You have the benefit of choosing a long term loan (up to seven years) as well as the residual value.

• Personal Loan

These loan packages can be secured or unsecured. If you opt for an unsecured personal finance one, it won’t be secured against the car that you are buying. The interest rates are slightly higher but, you get benefits of flexible loan terms and simpler approval requirements.

• Chattel Mortgage

It is an ideal option if you are using the car for business purpose. The lender will use your car as a security. Sole traders, partnerships, companies, trusts, and ABN holders use this option.

The loan term ranges from one to half a decade. It has low interest rates. The monthly payments on the chattel mortgage option are eligible for tax deduction.

So, these are the available options. Once you choose the car finance option, you can apply with a lender or dealer. But, don’t be in a hurry. Take ample time in deciding on the things mentioned in the car finance guide. It will help you in choosing a best finance deal.

Remember that Rome was not built in a day.

Don’t know where, when and how to start seeking your low rate car finance solutions? Singh Finance’s professionally qualified finance and mortgage experts will find you the perfect car finance solution package at the right price. Contact us today on 0424 190 908 and make an appointment to have an obligation free assessment.


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Fri, Oct 3rd - 3:55AM

Guide for Easy Understanding of Different Types of Land Titles

Each state and territory has a central register of all the land in the respective state and territory which, shows the owner of the land. Each state and territory Land Titles Registers provide search facilities.

What is a Land Title?

A Land Title can be best defined as being:

• the right of ownership of property, or

• the documents constituting evidence of that ownership

What are the Most Common Title Ownerships?

Here is a list of the most common title ownerships you can encounter in Australia. The list may help when you are deciding which Title applies to any property you are interested in and which Title you may require:

• Torrens Title (also known as Freehold Title), and

• Strata Title

Other Title ownerships you may encounter are Leasehold Title and Company Title.

What is a Torrens/Freehold Title?

Torrens Title is a modern simplified system of land ownership showing title to the land through a document called the Certificate of Title. This document is registered at a central registry (i.e. the government's Land Titles Office). The original Certificates of Title remain in the register, and the duplicates are held by the following parties:

• The Owner

• The Registered Proprietor, Or

• The Mortgagee (i.e. the lender/credit provider)

Interestingly, the greatest number of properties in Australia fall under the Torrens Title system as this system covers almost all Residential Title and most Commercial Titles.

What is a Strata Title?

Strata Titles form part of what can be called Strata Plan Developments and these Titles are commonly found in the following buildings because, a Strata Title allows for parts of the building (referred to as "Lots") to be owned by different owners:

• for Home Units/Apartments, and

• for Townhouses

What are the Most Common Strata Plan Developments?

Here is a list of developments that can exist under a Strata Plan:

• Residential

• Commercial

• Retail

• Mixed use (i.e. retail and/or commercial and/or residential)

• Serviced Apartments

• Retirement Villages

• Caravan Parks, and

• Resorts

What is Common Property?

Any part of a building in a Strata Plan Development that does not form part of the Home Unit/Apartment or Townhouse forms the Common Property. The Common Property can consist of any of the following areas:

• Roads, Driveways, Pathways, Fences and Gardens

• External Common Walls and Roof

• Stairways and Entrance Halls

• Meeting Room, and

• Recreational Facilities (e.g. Tennis Court, Golf Course, Swimming Pool, Gym, Sauna, etc.)

What is the Responsibility of a Strata Owner?

Common Properties are owned by all strata "owners" in proportion to their unit entitlements. The Common Properties are managed by the Body Corporate or Strata Company, and each owner is responsible for the Common Property and will share in the cost of upkeep and maintenance of the Common Property areas.

How is a Torrens Titled Lot different to a Strata Titled Lot?

Here is a list of differences between a Torrens Titled Lot and a Strata Title Lot:

Torrens Titled Lots are:

• Created under the Transfer of Land Act 1893, and

• The Transfer of Land Act does not allow for implied easements

Strata Titled Lots are:

• Created under the Strata Act 1985

• The Strata Titles Act allows for sharing of access to services and maintenance of such services (i.e. water, sewerage and electricity), and

• These services can pass through Common Property and other lots in the Strata Development Scheme

Are there any Common Features between a Torrens Title and a Strata Title?

Yes, there are some common features, such as:

• A Strata Title is as secure as a Torrens Title

• Both Titles can be bought, sold and mortgaged, and

• Both Titles have permanent tenure

What is a Leasehold Title?

Interestingly:

• Leasehold is the method utilised over government properties held in rural areas (e.g. the large cattle or wheat properties that are held under long-term or perpetual lease, and

• At times, the state governments may decide to subdivide and release the above rural properties if the area became desirable for residential development

• All land is held under "Leasehold" in the Australian Capital Territory (ACT), and

• Some old church properties are also tenanted as "Leasehold."

What is a Company Title?

There is little known about this type of title amongst the general public. The little information known is that:

• Company Titles originated almost a century ago but may still be present in some areas, and

• In a Company Title, a company will be the owner of the company complex.

What Title Tenures Apply to Retirement Villages?

There are a number of very good Retirement Villages offering different types of tenures. However, the most common Titles in Retirement Villages are:

• Freehold Titles, and

• Strata Titles

So, now that you have read about Land Titles, I hope you have a good understanding about different types of Title Ownerships. However, it is always wise to seek expert legal advice if you still require further information on Title Ownership and what Title applies to your desired residence.

Now that you know about the Land Titles that can apply to any property you are interested in, make a quick property purchase with Singh Finance. The finance brokerage firm’s finance experts will help you in getting bad credit investment property loan. Contact the firm today for quick approval on low doc home loans.


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