"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.