If you apply for a home loan, particularly if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to lenders that you have a satisfactory amount of savings. This is to demonstrate your ability to funnel a portion of your income into repayments.

Although it can differ, in most cases lenders generally look for consistent additions to savings over a period of at least three months and preferably a year or more. This means that the following are not considered genuine savings:

Monday, 07 October 2019 06:30

When purchasing an investment property, there are a number of factors that could increase or reduce your potential return on investment (ROI). In this case it’s not just location, location, location.

How to buy without a 20% deposit

When you consider that a small flat in Sydney could set you back half a million dollars at the moment, saving a 20% deposit to buy that flat ($100,000) can seem an insurmountable task. That’s where insurance can help.

Monday, 30 September 2019 06:39

In late 2014 the Australian Prudential Regulation Authority (APRA) attempted to curb the high competition in the Australian housing market, that locked out many first home buyers, by keeping a close eye on a suite of concerns, including the levels of residential lending to investors.

Steps to Obtaining a Loan for an Investment Property 

Step 1: Speak to Aloha Loans

Tuesday, 17 September 2019 06:49

What are the additional costs when purchasing a property?

Buying a property carries more costs than just the purchase price. In addition to moving costs, council rates, strata fees, renovations and furniture, homebuyers face additional fees to complete their property purchase.

Wednesday, 04 September 2019 06:53

The significance of sorting out your finances

It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan.

Thursday, 29 August 2019 06:57

How to avoid a loan default

Late payments and loan defaults leave marks on a credit history that can complicate any effort to refinance or secure a loan in the future. Default can also lead to a home being repossessed and sold by the lender, so it’s very important to act quickly to avoid it.

Tuesday, 13 August 2019 07:00

The Finance Broker Advantage

Brokers can help connect you to the lender better fit to serve your mortgage needs by shopping around on your behalf.

In order to decide whether or not to provide you with a loan, lenders will generally assess you against five qualities.

Thursday, 01 August 2019 07:08

Circumstances can change, leaving your home loan less suitable than it was originally. A home loan health check can reveal if you’re paying too much.

What’s involved? 

Your finance broker can do a full home loan health check for you either in person or over the phone. They will check if your loan is still competitive and still suited to your individual needs.

Having an expert do this for you can also take the stress out of the process for you. It is advisable to get this check done at least once a year, or if your circumstances change.