FREQUENTLY ASKED QUESTIONS.
At Best Home Loans Australia, we offer pre-approval for mortgages for many of our lenders. Once you’ve received your pre-approval you can make an offer on a home knowing that you have been approved for finance already.
As a general rule on most mortgages, you will need a 20% deposit. Some lenders may let you borrow up to 95% of the purchase price but this could incur additional fees such as Lenders Mortgage Insurance. It is possible to borrow up to 100% of the purchase price by using the equity in another home.
Refinancing your mortgage with bad credit is possible as some lenders specialise is ‘second-chance’ or debt consolidation home loans. This will very much vary on a case by case basis. Please get in touch with our team who will be happy to discuss your situation.
An offset home loan is one where you use a secondary account or a ‘transaction account’ in which your salary or other cash can be deposited. The balance of this offset account will reduce the interest you have to pay on your home loan.
A redraw facility allows you to make extra payments on your current mortgage which helps to reduce your monthly interest payments, and if necessary ‘redraw’ the value of these payments at a future date.
Adding a property to your investment portfolio can have many benefits when it comes to increasing your long-term wealth. Investment property generates both an income stream through rental payments and has the potential for capital growth, not to mention possible tax write-offs as well.
If you’re looking to invest in property, get in touch with our team at Best Home Loans Australia to discuss the best investment property loans available to you.
While fundamentally a home mortgage and an investment property loan are both a secured loan using the property as collateral, some lenders may charge a higher interest rate on investment properties because of the higher risk associated with the investment.
At Best Home Loans Australia, this is not always be the case. With a panel of 40+ lenders, there are investment property loans to suit your unique circumstances.
What is the difference between negatively and positively geared investment property?
A positively geared investment property is one that the total income received from the property is more than the total expenses incurred. For example, if your rental payments are $2,000 a month, but your mortgage + other running costs are $1,500, your property generates a positive cash flow of $500 a month and is ‘positively geared’. Note, that with a positively geared property, you may be liable for additional taxes on the positive amount.
In negatively geared property, your expenses are higher than your income received. This will could mean that you will pay for these expenses ‘out-of-pocket’ rather than solely through the property’s revenue stream. Negatively geared property could have positive tax benefits for you.