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Sandra & Peter Erdel - Lift Lending Peakhurst

7 days ago

Here is why you shouldn't scrimp on loan repayments:With household costs on the rise, many mortgagees are struggling to balance their budgets. It's not surprising more Australians are skipping mortgage payments to help make ends meet.However, missing loan repayments could land you in a bigger hole. Not only will you be up for late fees - ranging from a manageable $9 to a stinging $195 per overdue payment - but you could be adding thousands of dollars of extra interest to your debt.At worst, a string of missed mortgage payments could see the bank recalling your loan, forcing a fire sale of your home. Even a couple of missed payments could put a red flag on your credit history, which is going to cramp future borrowings.One of the best ways to reduce the risk of mortgage stress is to give yourself a buffer on your budget. In Australia, it's recommended borrowers' mortgage repayments make up no more than 30% of household income. The problem is many home owners borrow to the edge of the threshold when interest rates are low - as they are now - leaving no room for inevitable rate rises and other increased living costs.Instead, budget for mortgage repayments at a 9% interest rate, a long-term average that accounts for peaks and troughs over the long run. When rates are low, stick the extra funds into your mortgage. You will not only save on interest but will have established a safety net, which you can draw on if needed when rates run high.If you are already feeling the pinch and struggling to make payments, talk to a Mortgage Broker sooner rather than later. A Mortgage Broker can help negotiate with the lender on your behalf and can look into other loan options to ease the squeeze. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

Here are the questions I get asked most often by Home Buyers:How much money can I borrow?We're all unique when it comes to our finances and borrowing needs. And different lenders lend very different amounts. Even if your own bank won't lend you the amount you want, do not assume other's won't.Contact me anytime, I can help with calculations based on your circumstances, all over the phone. How do I choose the loan that's right for me?Our guides to loan types and features will help you learn about the main options available. There are hundreds of different home loans available. How much do I need for a deposit?Usually between 5% - 10% of the value of a property, which you pay when signing a Contract of Sale. Speak with us to discuss your options for a deposit. You may be able to borrow against the equity in your existing home or an investment property. How much will regular repayments be?Go to the Repayment Calculator on our website for an estimate. Because there so many different loan products, some with lower introductory rates. How often do I make home loan repayments - weekly, fortnightly or monthly?Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan. What fees/costs should I budget for?There are a number of fees involved when buying a property. To avoid any surprises, the list below sets out all of the usual costs:- Stamp Duty - This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To find out your total Stamp Duty charge, visit our Stamp Duty Calculator. - Legal/conveyancing fees - Generally around $1,000 - $1500, these fees cover all the legal rigor around your property purchase, including title searches. - Building inspection - This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees). - Pest inspection - Also to be carried out before purchase to ensure the property is free of problems, such as white ants. Your Contract of Sale should be subject to the pest inspection, so if any unwanted crawlies are found you may have the option to withdraw from the purchase without any significant financial penalties. Allow up to $500 depending on the size of the property. Your real estate agent or conveyancer may arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees). - Lender costs - Most lenders charge establishment fees to help cover the costs of their own valuation as well as administration fees. I will let you know what your lender charges but allow about $600 to $800. - Moving costs - Don't forget to factor in the cost of a removalist if you plan on using one. - Mortgage Insurance costs - If you borrow more than 80% of the purchase price of the property, you'll also need to pay Lender Mortgage Insurance. You may also choose to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable. - Ongoing costs - You will need to include council and water rates along with regular loan repayments. It is important to also take out building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan, but make sure you actually take out enough building insurance to cover what it would cost if you had to rebuild. Likewise, make sure you have enough contents cover should you need to replace everything if the worst happens. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

1 week ago

How to avoid disappointment when downsizing:Just as many young families look to upgrade their home at some point, most of us will eventually decide that it's time to downsize. You might be getting closer to retirement age and feel like it's time to free up some cash, rather than having it all tied up in your assets. Perhaps you can't see the point in maintaining a 5 bedroom home just in case the grandchildren come to stay.Some retirees decide to downsize because they want to travel more, and a low-maintenance home is a better fit. And then unfortunately there are some people who are forced to downsize for less pleasant reasons, such as financial hardship, divorce, or the death of a spouse.Whilst downsizing might seem like the solution to all of your problems, it's not always smooth sailing. Many downsizers jump from the frying pan into the fire by making an impulse purchase without doing their research. To avoid running into trouble - make sure you consider all of these factors:Where do you really want to live?It might seem like a lovely idea to spend your retirement in a small country town, reading by the fire in your single bedroom cottage. But how far would you be from family and friends? Many downsizers move to their dream location, only to find that it's rather lonely and their children don't visit nearly as much as they thought.If you decide after a couple of years that you're not happy with your decision, it might be difficult to get back into the property market closer to home. Think carefully about where you really want to be in the long term.What amenities do you need to have nearby?You might be in fairly good health now, but it could be a great help one day to live within striking distance of a medical centre. It's also worth investigating the distance to the nearest shops, restaurants, cinemas and recreational facilities.What type of property do you prefer?Do you plan to keep any of your furniture? How do you feel about growing older in a house with a spiral staircase? It's important to think about what suits you now, and into the future when it comes to choosing a property to downsize into. If you're moving from a mansion on 20 acres, you might struggle to adjust to a single bedroom townhouse.What lifestyle are you looking for?Do you love peace and quiet? Do you want to be surrounded by other people around your age? Think carefully about what's important to you. If you love your privacy and the sounds of nature - a little unit in a bustling retirement community might not be your ideal downsizing opportunity.What are the real costs of downsizing?Although you're probably looking to free up some cash, it's important to look into the costs associated with selling your property, and buying your next property. Some retirement communities charge enormous fees, and if you choose a unit or townhouse you might be up for Owner's Corporation fees on top of your council rates. Examine the numbers to make sure you're really saving money. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

2 weeks ago

6 Tips to Avoid a Bad Purchase:You searched the web for properties that fit your criteria, and one in particular caught your attention. The photographs paint a lovely picture, and the agent swears that this one is something special. But before you get to the open house, be sure to take a moment and remember that you have a job to do... 1. Ignore the trimmingsIt's easy to be romanced by the lovely scented candles, flat screen television or pricey bedspread, but the reality is - you're not shopping at a department store. This is an important purchase, and when the designer furniture is removed from the house you don't want any surprises. Make an effort to look past the decorations and really notice the layout, condition, features and drawbacks. 2. Look up, and all aroundTake a good look at the ceilings and walls - water damage and leaks can be costly to fix, but the good news is that usually they are difficult to hide as well. Try to use all of your senses and be on the lookout for smells and sounds that might indicate a problem with the property. 3. Check out the neighboursYour grandparents would probably tell you to buy the 'worst house on the best street'. There's a lot to be said for location, and part of the formula is to be surrounded by neighbours who maintain or improve their properties.Try introducing yourself to the neighbours and see what you find. If the elderly lady next door says "I'm glad they decided to sell that house - we need new fences and they won't pay up" you might like to leave some room in your budget! 4. What's most expensive to fixIf the kitchen and the bathroom are a lovely shade of brown and you would like to renovate as soon as possible, make sure you can afford it. These are usually the most expensive rooms to improve, and you need to know what you're in for. If in doubt, ask a tradesman to inspect the property with you before you make an offer. 5. Ask lots of questionsIt pays to ask plenty of questions - a great one is 'why are they selling?' If you have twins on the way, and the agent says 'they want to have another baby', you might like to consider whether the property is big enough for you. It's also a great idea to ask how much the current owners are paying for their utilities. Some houses, by design, tend to generate very large heating and cooling bills, so these are all important considerations. 6. If in doubt - organise a building and pest inspectionUnless you really know what you're looking at, it always pays to arrange a building and pest inspection. This can be added as a condition when you make an offer on the property. If the vendor is not willing to allow an inspection, you might like to run screaming down the street before making a very costly mistake. ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

2 weeks ago

We all know that interest rates are cyclical and that when rates go down they will eventually go up.As a result, lenders have been assessing loan applications on the ability of borrowers to make repayments at interest rates approximately 2% higher than those currently available. While lenders have been assessing your ability to make repayments at a higher interest rate, what is the reality of the fi nancial impact of your regular loan repayments?To make sure you are ready, click here to read my "What goes down, must come up" article. www.mortgageaustralia.com.au/email/files/whatgoesdownmustgoup.pdf ... See MoreSee Less

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Sandra & Peter Erdel - Lift Lending Peakhurst

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