"First-Time Home Buyers" Buying or Building your First New Home

I am a "First-Time homebuyer" planning to purchase or build my first new home. Can you please provide me with some information on the First Home Owners Grant scheme and the stamp duty concessions available to me from the government?

- A First-Time Homebuyer

Hi First-Time Homebuyer,

Your question is both interesting and timely. Currently, Australia is experiencing a great construction boom with Queensland and Western Australia becoming biggest contributors to the boom.

I don't know what state or territory you are from. But, I do know that this is the best time for you buy property. The current property market, together with the First Home Owners Grant (FHOG) scheme benefits and stamp duty concessions the government provides will help you buy your first home easily. You may even be pleasantly surprised to know that you may get a better deal now, than what you would have received a few years ago.

First Home Owners Grant (FHOG) Scheme and Stamp Duty Concessions available to First-Time Homebuyers

"Buying" or "building" your first new home should be a realisation of your dreams. And the following things will help you in fulfilling it:

• The various "First Home Owners Grant (FHOG)" schemes available to you as a first-time homebuyer.

• The range of "Stamp Duty" concessions or exemptions available in some states and mainland territories help in reducing the cost of your new property.

Understanding the First Home Owner Grant (FHOG) Scheme

The First Home Owner Grant (FHOG) Scheme:

• Is a one-off grant, payable to you as a first-time homebuyer if you want to "purchase" or "build" a new residential property to live in; and

• Is a national scheme funded by each state and mainland territory, and is administered under their own legislation.

Understanding Stamp Duty Concessions for First-Time Homebuyer

Every state and mainland territory has a first-time home buyer concession in place for stamp duty, which differs quite considerably between each state and territory.

How does First Home Owner Grant Scheme work?

The process is similar across Australia. However, you need to provide supporting paperwork in order to prove your eligibility including:

• Proof of identity (you must be an Australian citizen or a permanent resident);

• "Contract of Sale" (i.e. if you are "buying" a new home), or a "contract to build" (i.e. if you are "building" your new home); and

• Proof that you and your spouse must not have previously owned a home in Australia

Note: For further information on the amount of grants, stamp duty exemptions and concessions payable by each state and territory, please visit your state government or territory website at:

New South Wales - www.osr.nsw.gov.au

Queensland - www.osr.qld.gov.au

South Australia - www.revenuesa.sa.gov.au

Tasmania - www.sro.tas.gov.au

Western Australia - www.treasury.wa.gov.au

Australian Capital Territory - www.revenue.act.gov.au

Northern Territory - www.treasury.nt.gov.au

Obtain the Services of an Expert

As with any aspiring new home owner buying or building your first new home at any stage of life can be an overwhelming process. You will have to find a specialised lender/credit provider who is willing and able to assist you. All these things can be daunting and time-consuming. So, having an expert finance broker on your side will save you lots of time and help you to complete your home buying process quickly.

Singh Finance is a reputed Australian finance brokerage firm that employs a team of experts and professionally qualified finance brokers who will leave no stone unturned in obtaining a pre-approved first-time buyer home loan for you. Call on 0424 190 908 today or visit our website and get an opportunity to obtain quick commercial finance.

Reasons why Refinance Home Loans has Steadily Increased!

The number of people refinancing their home loans has steadily increased over the past few decades. With interest rates at an all time low and with better competitive home loan deals on offer, more customers are looking to refinance their home loan to secure:

• A lower interest rate

• Saving money by reducing your loan repayments

• A more flexible home loan product which offers redraw facilities and an offset account

• A reduction in the time of their home loan

• Access to the equity in their home loan to enable them to renovate their home, buy a new car or even build a swimming pool

Change in Circumstances

Change is inevitable and you may now find your situation has changed to the extent you are now looking at refinancing, as a result of any of the following circumstances:

• You may want to invest in another property

• You have a new baby, or another baby is due

• You may want to consolidate credit card debts and personal loan debts, or

• Your current interest rate is locked-in above the market value

Performing an Annual "Financial Health Check" of your Finances is Important!

Regardless of your situation, it is always advisable to perform an annual "Financial Health Check" on your home loan and personal finances. As you would ask yourself some questions when you are feeling unwell, you should look at your finances in the same way and ask yourself the following questions to ascertain if your finances are in order:

• Is your existing lender/credit provider meeting your needs?

• Should you fix your home loan to create certainty around your monthly repayments?

• Would you prefer a "combination" of both fixed and variable interest rates?

• Does your current home loan product have all the features you need such as, redraw facilities and an offset account?

• Will you save money by refinancing?

• What will be the impact of any costs involved to refinancing home loan?

• Will you now better manage your personal and household budget by refinancing?

So, even if you don't have any specific reasons in mind, it is always worth weighing up your options from time to time. Consider performing a "Financial Health Check" of your personal finances and household budget. The "Financial Health Check" will at least enable you to determine if you have a legitimate reason for refinancing and, if the long-term savings outweigh the short-term costs.

Refinancing can be very beneficial to you if done properly and if done for the right reasons. Remember to work out if you will be better off by switching to another lender/credit provider and if you will save money by switching.

Once you have determined that refinancing is right for your circumstances, you should seek expert advice from a professionally qualified finance broker. The finance broker should have access to interest rate comparisons and should be able to show you the long-term savings and confirm to you if these savings outweigh the short-term costs.

So, don’t just jump on the bandwagon and refinance your home loan. Consider its consequences and take advice of an expert finance broker to make a profitable choice.

Quicker approval and better interest rates can be availed by opting for home loan refinance. Solve all your financial troubles by calling on 0424 190 908. Singh Finance will not only help you in managing your current loan effectively, but it will also help you in making new investments by providing low rate real-estate investment property loans.

Need Information on No Deposit (Low Deposit) Home Loans

Since the global financial crisis mainstream lenders/credit providers have made numerous changes to their lending criteria, and it is now not easy to get a 100 per cent-plus home loan deal. However, there are some specialised lenders/credit providers who have recognised the difficulty that many aspiring home owners experience when searching for home loans and so, have introduced no deposit (also called low deposit) home loans, said Mr Singh of Singh Finance.

Mortgage/Home Loan Products available

Here is a list of no deposit (low deposit) mortgage home loan products for you to consider that will:

• Allow you to borrow up to 96% of the purchase price

• Allow you to capitalise the Lenders Mortgage Insurance (LMI) on top of your loan amount, which can bring the total (LVR) to 97 per cent or 98 per cent

• Allow you to borrow a maximum (LVR) of 100 per cent including LMI costs

• Allow a maximum (LVR) of 120 per cent with LMI capitalised. But a "guarantor" is required, and

• Even recognise 12 months continuous rental payments made by you as part of your genuine savings requirements

It is important to remember that the risk to the specialised lender/credit provider is greater for no deposit (low deposit) home loans. And so, you will pay a "premium" interest rate for the privilege, usually about 2% higher than the current market rate.

Application Assessment Process

When assessing your eligibility for a zero savings home finance or low deposit home loan, the specialised lender/credit providers will adopt a stringent assessment process. They will be looking closely at your capacity to repay the home loan. To work out what assessment criteria applies to you; speak to an expert finance broker. Here, are a few tips to help you:

• Ensure you can demonstrate a strong stable income

• Try to show at least some genuine savings or show your 12 months continuous rental payment statements, and

• Ensure your personal debts (credit cards and personal debts) are under control before committing to a no deposit (low deposit) home loan

Seek Expert Advice

As with any aspiring home owner, buying your first home at any stage of life can be an overwhelming process. Not to mention knowing which specialised lender/credit provider is willing and able to assist you can be daunting. So, having an expert finance broker on your side will save you lots of time and heartache.

So, before you think it is too difficult to get a home loan, don’t despair. The key to finding the right home loan lies in employing the services of an expert and professionally qualified finance broker, who specialises in all home loan products and finance solutions, said Mr Singh.

He said, you need to sit down with the best finance broker who will be able to explain that there are a number of specialised lenders/credit providers offering high "Loan-to-Value Ratio" (LVR) home loans that will allow you with no savings behind you to take on a mortgage home loan debt.

So, don’t worry if you want to obtain a no deposit (low deposit) home loan. Contact a professionally qualified finance broker to help you.

SinghFinance.com.au is a reputed finance brokerage firm in Australia that employs a team of expert and professionally qualified finance brokers. The team will leave no stone unturned in obtaining a pre-approved low deposit home loan for you. It will even help you find suitable building and contents insurance for you. Call on 0424 190 908 today.

Know everything about Owner Occupied Home Loans before buying your Primary Residence

Owner occupied home loan is a type of mortgage that is offered by lenders and credit providers to those people who desire to buy a house and use it as their primary residence. Such loans are offered to those people who want to use the property for dwelling and not for investment purposes. Most lenders offer favourable rates to borrowers who apply for owner occupied home loans because they assume that the owners will take better care of the house than the tenants.

Owner occupied property finance is available for those people who are:

• Searching for their first home to live in and want to use it as primary residence, or

• Looking to sell their current home and buy another home to live in and use it as primary residence

Now if you are looking for an owner occupied home loan, you must know the list of homes that lenders and credit providers consider as acceptable owner occupied real estate security:

• Free-Standing Residential Detached Homes

• Semi-Detached Homes

• Terraced Housing

• Townhouses

• Duplex Homes (also called Duplexes), and

• Flats (also called "Home Units")

Now that you know about the acceptable properties, you can start managing your personal finances and begin the process of obtaining owner occupied home loan. You can take help of a professionally qualified and expert finance broker who has a thorough knowledge of the finance industry and also knows what the standard requirements are for getting an owner occupied home loan.

The finance broker will prepare a "Home Loan Checklist," to help you understand your financial limitations and he/she will help you to get a pre-approved home loan. Here is a list of what the finance broker will do. He/she will:

• Look at your overall financial position and prepare a budget for you

• Use a "Borrowing Power Calculator" to work out - how much you can borrow and how much your repayments might be

• Work out how much of a deposit you will need to get owner occupied property finance

• Advise you if you should fix your home loan for a fixed period (e.g. one, two or three years) or if you should take a variable product, or if you should take a combination of fixed and variable

• Advise you what documents you have to provide to get a home loan

• Advise you if Lenders' Mortgage Insurance (LMI) is payable

• Advise you what stamp duty and other related fees will incur

• Confirm if you are a first-time home buyer as you may be eligible for a one-off payment through the governments' First Home Owner Grant (FHOG) scheme (see www.firsthome.gov.au), and

• Obtain pre-approval for you, which will put you in a stronger negotiating position with the vendor or real estate agent

An expert finance broker will do all the work for you and make sure that you obtain quick pre-approval. So, it is ideal to employ the services of a reputed finance broker because it will save you from all the trouble of finding the best finance package for you primary residence.

Singh Finance is the answer for all your finance needs. The expert finance brokers of the firm will help you in obtaining quick owner occupied home loans as well guide you in obtaining home renovation loan for making smaller changes in your home. Call on 0424 190 908 for expert assistance.

The Complete Low Doc Home Loan Guide for People without Adequate Financial Statements

I am a self-employed tradesperson running my own small business. Is it possible for me to get a home loan?

- Tradie

Hi Tradie,

We understand fully that it is not always easy for a self-employed small business owner to obtain a conventional home loan. We also appreciate that this situation is further complicated by the vast amount of financial information you are required to provide to a lender/credit provider. To help you get a home loan, specialised lenders/credit providers have developed a loan package called "Low Doc" home loans (also known throughout the finance industry as “Low Documentation" loans).

If you are a self-employed business owner like Tradie or you do not have adequate financial documents for any reason, you can apply for low doc home finance and buy your dream home. Before you apply for the loan program, understand everything about the loan package. It will help you in choosing the best financial solution.

Suitability

Low doc home loans have allowed thousands of Australians who, for various reasons, have been rejected by mainstream lenders/credit providers, to access a home loan.

A low doc home loan is specifically suitable for people who have assets as well as income, but cannot provide a financial statement or tax return as documented evidence of income, for example:

• Self-employed people who may only pay themselves a standard wage and run their business in a way that means they fall into a lower tax bracket to avoid income tax

• Property investors who may have varied income from month to month and from year to year

• Contractors and seasoned workers who don't work regular jobs, and

• New Australians families who have just moved to Australia and may not have pay slips or tax returns from the work they have been doing since they arrived in Australia

Income Verification Process

A low doc home loan enables you to self-certify your income, where you state your income (i.e. what you make) on the "Declaration" document. And, the lender/credit provider will not verify your income by using masses of documentation otherwise required, such as, tax returns, BAS statements and more.

Restrictions

The conditions for low doc home loans are more restrictive than standard residential home loans as they provide a higher level of risk to the lender/credit provider, for example:

• You cannot borrow more than 80% of the value of the security property, and

• Any Low Doc home loan with a Loan-to-Value Ratio (LVR) higher than 60% will incur a Lenders Mortgage Insurance (LMI) premium

What Factors Determine the Interest Rate for Low Doc Home Loans?

Some of the factors that lenders/credit providers consider in determining the interest rates include:

• At least 20% deposit (i.e. you do not have to show evidence of savings)

• Nature of and the security property type

• Client credit history

• Loan size amount

• Aggregate of total exposure to the lender / credit provider

• If self-employed, the period the client has been in business

• Age of borrowers, and

• The purpose of seeking finance

Why Choose Singh Finance?

As with any financial decision you have to make, take advantage of our professionally qualified finance brokers who have a thorough knowledge of the credit policies and standard requirements for low doc home loans. As they liaise with the specialised lenders/credit providers on a regular daily basis, our finance experts will save your valuable time trying to source the right low doc home loan and will arrange a pre-approval for you.

Singh Finance is a reputed finance brokerage firm in Australia. The firm has a team of expert and professionally qualified finance brokers who will leave no stone unturned in obtaining a low deposit home loan for you. The team will even help you in finding suitable non-conforming home loans for people with bad credit. So, don’t worry if you have discharged bankruptcy or default credit. Call on 0424 190 908 today.

How to End your Financial Problems with Caveat Loans?

Specialised lenders/credit providers can solve the cash flow problem of business owners with the help of a caveat loan. The loan is ideal for business owners because:

>> Bank style credit approvals are not required

>> Tax returns are not required

>> No credit checks are undertaken on your credit history as bad credit history is not relevant

Interestingly, a caveat loan is not only right for a business owner but it can also be beneficial to a property developer or an investor.

Caveat Loans - Definition

They are fast settling loans, which are structured for a short-term of usually between 1 to 12 months, with a possible rollover (if required).

In contrast to conventional forms of finance, caveat loans need to be established quickly (i.e. within 24 hours from the time the application is first lodged).

How does a Caveat Loan work?

These loans are simply an 'asset lend.' For caveat loans (sometimes referred to as a short-term 2nd mortgage), all you need is to be the owner of a piece of real estate. Here is a list of residential, commercial, industrial or specialised securities that the loans are commonly secured against:

>> A home or a unit

>> Vacant land

>> Medical centres

>> Child care centres

>> Commercial properties

>> Rural land, farmland or agricultural land

>> Acreage (with no limit), etc.

How are Caveat Loans Structured?

>> They are structured just for a short-term of 1 to 12 months period

>> They generally have a five day "fast-settlement"

What is the Loan Exit Strategy and how are Caveat Loans Repaid?

The loan exit strategy is where the borrower agrees to pay the loan back to the lender/credit provider at a predetermined time (usually between 1 to 12 months).

The repayment of the loan can be done by one of the following methods:

>> You can refinance the loan

>> You can sell the asset

>> You can use any business cash flow or commissions due to you

What Other Reasons do Business People Choose for obtaining Caveat Loans?

Here is a list of many reasons (scenarios) why business people choose the loan:

>> A common use of the caveat loan is if business people require funds for bridging between the selling of a property and the funding of an urgent requirement;

>> Having the required cash flow in hand by way of the loan has helped many business people to pay off their debts and thereby enabling them to go on with the running of their business;

>> It may be that business people want to expand their business, and they need additional funds to enable them to fulfil their business goals;

>> They may want to attend an auction and the need to transfer the funds right after the auction ends; or

>> They may simply have a business deal that is too good to let go, and they currently do not have the required cash to pursue this business deal.

So, now you know how caveat loans can help you. More importantly, you also know that the loans can help you with any unexpected urgent commercial debts that you have to pay before any legal process is taken against you (e.g. default or court judgement) or before you are charged with late fees.

Singh Finance helps business owners in securing finance for their business. The firm's expert finance brokers will help you in securing caveat loans as well as help you in obtaining business equipment finance and quick short term business loans. Call on 0424 190 908 or enquire online now.

Understanding the Unique Process of Fast Refinance

Refinancing your mortgage from one lender/credit provider to another can be lengthy, costly and time consuming. The new and efficient way to refinance your mortgage is to use "Fast Refinance."

What is Fast Refinance?

Fast Refinance is a unique refinance process whereby your new lender/credit provider uses a product called Title Insurance to:

• Facilitate the refinancing of your loan in days, not weeks (faster same-day settlement)

• Enable an "Unattended" refinance settlement (no settlement meeting or booking takes place)

• Reduce settlement costs (all correspondence and funds sent electronically)

• Streamline the mortgage loan process (requires minimal additional documentation)

What is Title Insurance?

Title Insurance provides protection to lenders/credit providers against known and unknown title defects on a security property. It offers additional risk cover to strengthen and enhance your legal interest in the mortgage and the security property.

Why Choose Fast Refinance?

You should refinancing your home mortgage with the same extreme care you put into getting your original mortgage, and it is just as big a financial decision. So when you are thinking of refinancing, you should consider the following benefits of "Fast Refinance" and more importantly why wait for up to 6 weeks or more to take advantage of these benefits, such as:

• No Fees – most lenders do not charge Fast Refinance fees

• Very quick Settlement – when all documents are received and certified you can have an approval in as little as one or two days

• Savings – if refinancing at lower interest or extended term, it will save you money and even reduce your monthly repayment

• Easy for you – as your new lender will contact your current lender and organise the new loan, you do not have to approach your old lender

• Access to Funds – you may be able to access additional or surplus funds much quicker than when doing a standard refinance transaction

• No Contact from your old Lender – process circumvents the old lenders “retention unit” from making contact to try and persuade you to stay with them

How Does Fast Refinance Work?

You will need to complete a new loan application with the new lender/credit provider and provide all requested documentation for your new loan, and the new lender/credit provider will:

• Approve the loan application

• Prepare all the Fast Refinance loan documents

• Request you to sign and complete all the documents and state the “payout figure.”

• Deposit into your old loan account sufficient money to reduce the loan balance to Nil

• Pay you direct any surplus funds from the new loan

How Can a Finance Broker Help With Fast Refinance?

A professionally qualified finance broker is very experienced with arranging refinancing of client loans and he/she will help you in answering the following questions:

• Am I eligible and how can I qualify for a "Fast Refinance" loan?

• Can you help me to compare my current product features against the new product features before I decide to refinance my home loan?

• Can you help me obtain formal approval to Fast Refinance my existing home loan and at the same time obtain pre-approval loan for new investment property?

• With a Fast Refinance loan can I access the equity from my existing owner occupied property to assist me in the purchase of a new investment property?

• Will I be better off refinancing my existing home loan and consolidating my debts?

• What documents do I have to provide when refinancing or consolidating my debts?

• Can you help me to calculate the value of my home equity?

• Can you help to calculate my present loan-to-value ratio?

So, don’t forget to help of a finance broker. He/she will make you ready for fast refinance and ensure that you get cheaper rates and a better deal.

Singh Finance is a reputed Australian finance brokerage that employs the best finance brokers of the industry to help you with cheap rate home loan refinance. The firm will even find you a new low rate low document home loans to ensure affordable repayments. Call on 0424 190 908 or enquire online now.

Pay As You Go (PAYG) Income Verification Requirements

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 finance 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 finance brokers. The firm is your one-stop solution for obtaining deposit free home loans, property development finance or best commercial loans. Call on 0424 190 908 and get ready to avail expert help and lower interest rates.

Answers to All Your Questions Regarding Non-Residents and Temporary Residents Living in Australia and Wanting a Home Loan

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 temporary residents and non-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 new migrant home loans for temporary residents and non-residents of Australia. Our team of expert finance brokers will even help you in finding cheap commercial finance for your business. Call on 0424 190 908 today.

The Easy Guide for Obtaining Trust Loans with the Help of Professionally Qualified Finance Broker

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 loans. 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 loan)

• 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 low rate unit trust loans is a clever strategy. The firm will help you in obtaining quick discretionary 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.

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 builders secure quick development finance for building projects. The firm is experienced in handling loan requests of different types. So, don’t worry if you want a low deposit home finance or low document home loans package. Call on 0424 190 908 to discuss about pre-approved home finance.

A Complete Granny Flat Guide for Home Owners

Granny Flats – The Meaning

An image of a Granny Flat

Granny flats are regularly defined as "secondary dwellings” because they are secondary to the main property. Such flats are usually used by families to accommodate aging parents. The dwellings must be self-contained. Granny flats have taken off in recent years, and if you decide to use the dwelling as an ideal situation for investment, it will give you a good rental return.

The Benefits of Granny Flats

Granny flats are becoming increasingly popular amongst home owners and the benefits in building a granny flat are many. Here is a list of the most popular benefits for you to consider:

• They are used to accommodate extended family members

• They are used as a home office, or

• They are used to generate income

Factors to consider before constructing a Granny Flat on your Property

If you want to construct a granny flat, you should do some homework first, and before you start your construction project you will need to:

• Contact your local council and find out about the current legislation surrounding granny flats

• Find out if your site complies with the development set out in the State Environment Planning Policy (SEPP), and

• Check for any legal and financial requirements

Common Finance Options for constructing Granny Flat

If you elect to construct a granny flat on your property and you want to get suitable finance, you will find there are a number of financing options available such as:

• You can consider an Home Equity Loan where you can use the current equity available in your existing property and on which your granny flat is to be built (i.e. this can be by a way of having an additional "loan added" to your current home/investment property loan),or

• You can utilise a Granny Flat Loan to construct your new granny flat. In this situation, the loan will be considered for approval based on the value of your existing property and the value of the granny flat that you want to build

If the purpose of your construction is to generate rental income, so that you can make extra repayments towards your normal weekly repayments, you should read the following example to fully understand what your benefits will be in both - Interest Saved and Time in Years Saved. The example assumes:

1. That you need a granny flat loan for construction

2. You will receive $300 rental income from the flat, and

3. You are only willing to contribute an additional amount of $200 towards your weekly repayments

Loan Amount: $530,000

Normal Loan Term: 30 years

Interest Rate: 5.00%

Repayment Frequency: weekly

Normal Weekly Repayment: $656

Additional Weekly Repayment: $200

From the example above, your benefits will be:

Interest saved, by making extra repayments: $217,815

Time in Years Saved, by making the extra repayments: 11 years and ten months

So, this is how you can benefit from a granny flat and save money and time. If you have enough vacant area on your property, check the legal requirements and apply for a granny flat loan. It’s time to make optimum use of your property.

Contact Singh Finance and avail quick approval on granny flat loans. Don’t worry if you have low documents. The firm’s home loan experts will understand your financial situation and suggest you low doc home loans in Australia for building a granny flat. Call on 0424 190 908 and get information about pre-approval on bad credit home loans.

Get the Right Home Loan Package with Singh Finance

Home is the single largest purchase of your life. So, you should not commit any mistake while getting a home loan package. Home financing is complex because each lender/credit provider offers different interest rates and repayment types. When you have to choose a suitable home loan package, it is important that you work out the numerous options, and features available. And, it is advisable that you take help of experienced finance brokers before you sign up, and this is where Singh Finance can help you.

The right home loan package for you should have a particular combination of features, services and interest rate. Singh Finance will provide you with the power of fast home loan solutions, and the firm’s professionally qualified and specialist finance brokers will help you get the best home loan package. Because they will:

• Identify a suitable home loan package that will match your individual needs

• Liaise with the lenders/credit providers on a regular daily basis

• Provide you with a convenient pre-approval so that you will have the peace of mind knowing that your home loan has already been assessed by an accredited finance broker, and

• The pre-approval option is proving to be a boon as it gives you the upper hand when negotiating the sale price with the vendor or real estate agent

"Our mission is to make getting a home loan easy for you the first time and every other time you seek to do business with Singh Finance," said Mr. Singh of Singh Finance.

So, before you shop around for the best home loan deal, you should visit www.singhfinance.com.au or speak to one of the firm’s professionally qualified and specialist finance brokers at 0424 190 908 who will take the time to explain all of the following options and features being offered:

• Variable or Fixed Interest Rate Home loan

• Interest-Only or Principal and Interest (P&I) Repayment Home Loan

• Combination (Split) Interest Rate Home Loan

• Redraw and Access Availability, and

• 100% Offset Account

Singh Finance is a well-established and reputable finance brokerage firm providing a wide range of financial solutions and insurance packages. In addition to providing Home Loans, the firm also specialises in Car Finance, Truck Finance, Commercial Loans, Medico Home Loans, Pharmacy Loans, Personal Loans, Equipment Finance, Development Finance, Comprehensive Car Insurance, Home & Contents Insurance and Loan & Mortgage Protection Insurance. Its team of professionally qualified finance brokers has the experience of 25 years, and they possess an in-depth knowledge of finance.

An Easy Guide to the Different types of Homes for you to Buy

Each year, thousands of Australians buy a home or house to live in or to rent out, and lenders/credit providers are quite happy to lend the money to assist them to buy the properties. So, if you are like the thousands of Australians and you are excited about looking to buy a home or house, then you may also be aware that this can be nerve-wracking, as it will take:

• Lots of Planning

• Lots of Research, and

• Careful Budgeting

Are you about to buy a Home or House?

If you are ready to buy your home or house, you should follow this guide as you will be able fully to understand the different homes and housing options available to you to choose from:

• A free-standing residential Detached house, home or dwelling

• Semi-detached houses

• Terraced housing

• Townhouses

• Duplex homes (also called Duplexes)

• Flats (also called "Home Units.")

• Granny Flats

Different Types of Home or House

Here is a list of information for you to read and consider, which explains at a glance how each home or house is different:

A Detached house - sometimes also called a single detached dwelling, or separate house is a free-standing residential dwelling. The building has no other homes attached to it, except its garage or shed. It has only outside walls and does not share an inside wall with any other building. A detached house is occupied by just one household or family and, all maintenance and repair costs (interior and exterior) are at the owner's expense.

Semi-detached housing - consists of two houses built side-by-side as dwellings, they share a common wall. The layout of each dwelling when built is such that each house's layout is a mirror image of its twin.

A Terraced house - has a house attached either side of it (i.e. a terraced house usually consists of three or more houses all joined together in a row). Terraced houses in Australia refer almost exclusively to Victorian and Edwardian era terrace houses or replicas and they are found in the older inner city areas of the major cities. Modern suburban versions of this style of dwellings are referred to as "town houses."

Townhouses - are a medium-density housing in cities, usually but not necessarily terraced. A modern townhouse is often one with a small footprint on multiple floors. Townhouses are often found in large complexes and often have:

• High security, and

• Resort facilities (e.g. swimming pools, gyms, parks and playground equipment)

Duplex Homes - consist of a building containing only two dwellings, with one dwelling placed over the other in whole or in part, and each duplex dwelling has its individual and separate access. The two duplex homes share a common wall. For the most part, a true duplex will occupy no more ground space than an average sized house, even though the structure provides living space for two households.

Flats (also called "Home Units") - are single-floor dwellings located in a block with three floors or more. The dwellings consist of a set of rooms for living in, including a kitchen. In Australia, the term Flat was traditionally used, but the American term (Apartment) is also frequently used, as is "Unit," which is short for "Home Unit."

Granny Flats - are regularly defined as "secondary dwellings" which means they are secondary to the main property and the dwellings are located on the grounds of a single-family home. This type of dwelling is sometimes called a granny flat because it is a way of families to accommodate aging parents. The dwellings must also be self-contained. Granny flats have taken off in recent years, and if you decide to use the dwelling as an ideal situation for investment, it will give you a good rental return.

So, these are the different types of housing options available in Australia. Once you decide the type of house or home you want to buy, I suggest you to seek help of an expert finance broker for obtaining low rate home loans. He/she will understand your financial situation and guide you in making an affordable home purchase.

All the best for buying the home of your dreams! Hope you find it soon.

Buying a home is a huge financial decision. So, take the right decision with the help of Singh Finance’s team of finance experts. Contact the firm and get ready to obtain low deposit home loan.

Easy Ways to find Finance for your Home Renovation

The burning question on the minds of many Australian homeowners is - will I "Renovate" or "Relocate"? So, if you are one of these home owners, you may have also realised that the high cost of purchasing a new home and selling your current home far outweighs the challenges of renovating your current home. However, you should only renovate if the renovations will:

• Add value to your home

• Result in an improved standard of living

• Be used to perform emergency repairs or full home extensions

Do Lenders/Credit Providers impose Restrictions on the Type of Renovations?

Subject to their credit policies and lending guidelines, most lenders/credit providers will let you borrow the funds to improve the value of your home for any worthwhile purpose, such as if you need to:

• Add another bedroom, or any other room

• Renew/update your bathroom or kitchen

• Add a pergola and outside recreational area

• Install a swimming pool

• Extend your garage from a single garage to a double

• Construct a secondary dwelling on your existing property with a granny flat construction loan or

• Any other structural or non-structural construction

What Methods of Finance can I choose?

Here are some examples of the popular methods to ensure easy home renovation:

Home Equity Loan - This financing arrangement is perhaps the most common way for Australians to finance home renovation projects. A home equity loan works where you borrow the money against the value of your home. To illustrate this I have provided the following example:

• The example assumes your home is worth $700,000, and

• Your mortgage loan is $300,000

From the example illustrated above, you will have $400,000 equity in your home, which you can use to fund your renovation project.

The recent rise in house prices has resulted in many Australian homeowners having acquired considerable equity in their property, this can make getting a home renovation loan easier for these people and reduces their need to dig into their own cash reserves.

Personal Loan - This financing arrangement is a suitable option for you to consider if:

• You do not have any equity available in your home, or

• You only have to complete some minor renovations

By choosing a short term personal loan, you will find that:

• The personal loan interest rate is much higher than a home equity loan, and

• You may be limited to the amount you can borrow (e.g. from $5,000 to $50,000)

Construction Loan - This financing arrangement is available for you to complete large scale renovation projects that require council approval and the services of a licensed builder. The lender/credit provider will impose the following restrictions when they are considering a construction loan for home renovation:

• The lender/credit provider will not fund the full loan amount upfront to you

• The lender/credit provider will release the money to you only in stages as the renovation progresses

Can I afford to Re-build my Home if it was destroyed?

You should already have normal home and building insurance in place, but you need to increase your building insurance to cover the costs associated with your home renovation project. So, if you cannot afford to rebuild your home if it were destroyed by damage from fire, or from any other natural disasters, you should ask yourself the following questions:

• Do you have building insurance?

• If you have building insurance in place:

>> Is the amount of insurance cover adequate?

>> What does your building insurance plan cover?

>> Does your insurance plan include Total Replacement cover or Sum Insured cover?

Don't Delay and Take Action Straight Away

So, if you are thinking of renovating your home without any stress, you should seek advice from a professionally qualified and expert home finance broker who is a specialist in home renovation loans and, has helped numerous home owners when they had considered renovating their property.

He/she can arrange finance for your renovation project. A loan broker will provide you with a wide range of finance options and products after creating a budget for you. But, remember that you should be clear about your future plans as it will help you in choosing the right finance option.

Now that you have read this article, I sincerely hope it will help you to understand the easy way of renovating your home with a professionally qualified and specialised finance broker.

Buying a home or renovating it, everything is easy with Singh Finance. The firm’s expert finance broker will help you in getting cheap home loans as well affordable home renovation loans. Contact the firm today.

Solve your Cash Crisis with Caveat Loans

The Meaning of a Caveat Loan

A caveat loan is a short-term asset based loan product. In contrast to conventional forms of finance, a caveat loan needs to be established quickly (i.e. within 24 hours from the time the loan application is first lodged). The loan is secured on the value of concrete assets, such as:

• A house

• A unit

• A block of land, or

• A commercial property

The Purpose of a Caveat Loan

If you are a business owner, a property developer or even an investor, it is inevitable that you may experience cash flow crisis and you may find yourself needing money quickly. So, a caveat loan is the right loan for you as it will enable you to:

• Commit to any potential business growth by providing you with the required increased working capital

• Secure the required funds for construction or development projects

• Get the cash-on-hand you need for urgent bills and expenses

• Prevent foreclosure or repossession of your property

• Enhance your day-to-day business cash flow

• Get your investment property up-to-date for a sale

NOTE: - It is important to note that caveat loans are not offered to consumers who seek to use the funds for purposes to which the National Consumer Credit Protection (NCCP) Act may apply. The loan facility is only to be used for business or investment purposes (i.e. for investments other than investments in residential property).

Features of a Caveat Loan

There are a number of features for you to consider when you are looking at applying for a caveat loan, such as:

• Funds usage and loan purpose must be strictly for business purposes

• Fast approvals to meet your immediate needs and quick settlements

• Loan terms up to 36 months

• Low set-up costs and low interest rates

• Security to be in the form of real estate

• Loan repaid at the end of the agreed term

Approval Requirements for a Caveat Loan

To get approval for a caveat loan, the lender/credit provider will require you to have:

• Accessible equity in owned property (e.g. your residence or your business)

• A reasonable exit strategy in place. You must be able to show the lender/credit provider how you plan to pay back your caveat loan (e.g. you may decide to sell your home or use the profit from the sale of a business)

Do not worry if you have Bad Credit History

If you are in a situation where you have a bad credit history, do not worry. Because, credit checks are not required to be performed on caveat loans, even if you have:

• A Discharged Bankruptcy

• A Bad Credit Rating

• A Court Judgement, or

• A Part-9 Debt Agreement

Find an Expert Finance Broker to help you

Contact a reputed brokerage firm with access to numerous lenders/credit providers. The firm’s professionally qualified and expert finance brokers will:

• Structure your caveat loan to suit your individual needs and budget

• Help you get the best caveat loan you want and in the quickest possible time and, without the hassle of running around trying to find your own finance

• Liaise with the numerous lenders/credit providers to arrange the best possible caveat loan solution for you, and at the right price

So, now that you know everything about caveat loans, don’t waste any more time. Contact an expert finance broker and get ready to end your cash crisis.

If you are currently considering applying for a caveat loan, or any short term business loan, contact Singh Finance. The firm’s commercial finance experts will find you the best finance deal. Book an appointment today.

Tips for Becoming a Guarantor for Family Pledge Home Finance

Guarantor home loan (also known as Family Pledge Finance) is widely common amongst first home buyers and for persons with limited credit history. Parents play a crucial role in upbringing their children and with house prices and the cost of living on the rise, they also continue to support their children to purchase their first home or investment property.

Definition of a Guarantor

A guarantor is best-defined as being a third party (i.e. family member or best friend) who promises to provide payment on a loan or other liability in the event of default.

Are you looking for a Guarantor Home Loan?

You may require a guarantor if you are looking at applying for a home loan and the lender/credit provider was concerned about the following factors:

• You may not have saved the necessary 20% deposit to purchase your dream home

• Your credit history, or

• Your income

What are the Benefits of Having a Guarantor?

By having a guarantor, you may be able to buy your dream home. Other benefits of having a guarantor can be:

• Some lenders/credit providers will allow you to borrow 100% of the purchase price plus 5% costs of your first home or investment property without the need for proof of savings

• By reducing the Loan-to-Value Ratio, (LVR) to 80%, or less, you will save on the Lenders Mortgage Insurance (LMI) premium

• It is much easier to borrow at a Loan-to-Value Ratio (LVR) of 80%. Because, the lenders/credit providers are much more comfortable with the level of the lending ratio at 80% in comparison to borrowing at say 95%

The benefits of how a Guarantor Home Loan works is best illustrated in the following example. The example assumes the following:

Purchase price: $500,000

Borrowing amount: $500,000

Guarantor property value: $800,000

From the above example, if the lender/credit provider restricts 80% exposure on the guarantor's property valued at 80%, then the Loan-to-Value Ratio (LVR) will be 63%, and it is much easier for you to borrow on an LVR of 63%.

What are the Impacts of being a Guarantor?

Like many people, you may believe that your responsibility to being a guarantor is limited only to ensuring that your family member or best friend pays the debt on time. However, as a guarantor you are not only bound to pay the home loan amount if the borrower defaults, but the transaction can have a negative impact on your credit score rating.

Have you been asked to be a Guarantor for a Loan?

If you have been asked to be a guarantor for a loan to support a family member or best friend, do not take tension. Before, you feel weighed down by the obligation to become a guarantor, you should consider what you will get out of the arrangement given that you will be responsible for repaying the loan if the borrower fails to repay the loan. Because, as a guarantor:

• You are liable in the event that the borrower (i.e. your children or best friend) will fail to repay their loan

• You may be required to service the portion of the loan that you have placed a guarantee for, in the event of a loan repayment default

• You can lose your house in the event of default by the borrowers

• You can provide either your owner occupied or investment property as security

• You may have to refinance your existing loan to provide a guarantee to the borrowers, and they will then have to undergo a full assessment of your financial position

• You may find that some lenders/credit providers will not accept 2nd mortgages as security for the guarantee

Seek Independent Legal and Financial Advice

As part of the lenders/credit providers’ requirements, guarantors will be asked to seek independent legal and financial advice. You should also seek this advice before becoming a guarantor, so you will have a clear understanding of your legal and financial obligations.

Why Choose Singh Finance?

It is always advisable to start the finance application process with Singh Finance as soon as possible, because:

• We know what the standard requirements for family pledge home finance are

• We can accommodate a much faster credit decision for you, provided that we receive from you all the required documents as soon as possible

• We can calculate how much you can borrow

• We can calculate your interest rate and the monthly loan repayment amount

• Our team of expert finance brokers have successfully helped a number of clients with guarantor home loans

• We know the numerous lenders credit policies and procedures as we deal with them on a regular daily basis

While you concentrate on getting your first home or investment property, our team of professionally qualified finance brokers will:

• Look at your overall financial position, and they will establish a budget for you

• Eliminate the stress and time it takes in running around trying to find your finance package solution and at the right price

Our finance brokers will also provide you with a convenient pre-approval so that you will have the peace of mind knowing that:

• Your guarantor supported home loan application has already been assessed by an accredited finance broker and in accordance with the responsible lending criteria

• Your finance is already pre-approved, and you will also know the conditions of your pre-approval

• You have the upper hand when negotiating the sale price with the vendor or real estate agent

If you are currently considering applying for a home loan, or for any other purpose and want an obligation free assessment, please contact us on 0424 190 908 or enquire online now.