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.

Take Control of your Debts by Refinancing your Current Home Loan

Are Your Debts Getting Out of Control and Are You Thinking of Refinancing?

If you have answered yes, you should consider the possibility of refinancing your current home loan and combining your multiple debts (e.g. credit cards and other personal loans) into one home loan.

Do You Want to Get Back in Control of Your Debts?

If your debts are getting out of control, and you are thinking of refinancing your current home loan, consolidating your debts and reducing your repayments, let a reputed brokerage firm arrange your refinance. You will find yourself being able to better manage your personal and household budget.

How does the process of Refinancing My Home Loan to Consolidate My Debts work?

The process of refinancing your current home loan to consolidate your multiple debts is a very easy process. You simply consider applying for a new loan on your current property and you use this new loan to pay out:

• Your current home loan, and

• Any other debt you may have (e.g. higher interest credit cards or unsecured personal loans)

How Can I Benefit by Refinancing My Current Home Loan and Consolidating My Debts?

You too can benefit in the same way that many Australians are already benefiting by refinancing your current home loan. This will enable you to:

• Lower your monthly repayments

• Make only one repayment

• Lower your interest rate

• Reduce the amount of time it takes to pay off your home loan

• Get yourself back in control of your debts much sooner than you anticipated

• You will not have to experience the stress and pain of overdrawn or over the limit credit card balances

• Reduce your debts (including eliminating high interest credit card debt and personal loans)

• You will not have to pay the higher credit card interest rates anymore

The benefits available to you are best illustrated in the following example. The example assumes that you have a mortgage loan of $300,000 and a credit card with a credit limit of $12,000:

From the example above you can clearly see that:

Your interest saved by choosing to Refinance your loan will be: $91,003.00

Your monthly repayments will be reduced by: $401.00 per month

Who can enjoy the Benefits of Refinancing?

Refinancing may benefit you even if you fit into one or more of the following categories:

• Short-term employed or not employed long enough

• Irregular income

• Self-employed

• Government Allowance including New Start

• Previously bankrupt

• Declined by another lender

• Pensioner

• Adverse credit history

• Existing loan arrears or defaults

• Limited savings history

What Should I Consider When I Am Applying for a Refinance Home Loan?

Make sure, the refinancing and debt consolidation process is beneficial to you. I suggest you to consider the following outcomes at the time of applying for a refinance home loan and confirm in your own mind, if the outcomes are to your benefit:

• You are kept fully informed

• Your repayments will be reduced - not increased

• There are no hidden fees or costs

• You have achieved control over all your debts

• There is a real long term benefit to you

So, don’t spend your money in making high monthly repayments. Take full control of your debts and contact a reputed brokerage firm. It will provide you with expert advice on refinancing your current home loan to consolidate your debts.

Singh Finance is a reputed finance brokerage firm that provides affordable residential finance packages to Australians. You can contact the firm for refinancing home loan and consolidating your debts. Enquire online now and get ready to make your debts easy.