Property investment requires careful planning and sound financial management.
We can help you structure the right property investment loan to suit your long term property investment strategy.
Together with our financial planning arm we will establish a clear path to grow you portfolio.
Investment loans vary depending on what you are looking to achieve,
Do you have an interest only loan, principle and Interest loan, is cross collateralisation required?
Just some of the questions, we can show you the most effective structure, not only for the first investment but ongoing.
Good Debt V’s Bad Debt
Effective use of tax, gearing and repayments. You can also make good use of loan features such as redraw, offset and additional repayments to help better manage your investment loan. Pay off your personal debt sooner.
Home loan support and advice
At Financial Vision and Services we will meet with you and take the time to understand your situation and help you find the right loan and structure.
This could save you thousands, we know by using the mortgage to improve your cash-flow and manage you fixed expenses we will enable you to save thousands over the term of the loan by just managing your money correctly. Its that easy
We will take you through the home loan application process step by step,
After your loan is settled we’ll keep in regular contact with you, monitor your cash flow and ensure the features recommended are use to there full potential so you reach the goals set.
Client service program include:
- Incentives for family or friends you refer to our company who take out a loan
- Mortgage advice if your situation changes
- Ongoing advise on the structure recommended
- Home loan review’s to ensure your loan is still meeting your requirements
- Discounts on personal protection portfolio’s
You’ll know how much you can borrow
With a few details, we will quickly work out which lenders will let you borrow the amount of money you require.
How we help you find the right home loan
Once we fully understand your situation, we will work out how to best structure your finance requirements and will help you select the right loan product. We’ll review the details of the recommended loans with you and help you choose the one that’s right for you and explain clearly all the features and costs of your loan and tell you how much the repayments will be.
Your loan application
We will manage your application all the way to settlement, keeping you informed every step of the way.
We will package your application with all the supporting evidence and lodge with your choice of lender.
Managing your application
We will take the hassle out of the application process by managing it on your behalf, right through to settlement.
If you have any questions we are here to help, and if there are any problems we will correspond with the lender on your behalf. We will also liaise with your conveyancer, valuers and do everything we can to make your loan progress an easy process.
Life Insurance or Income Protection
People insure their motor vehicles and houses but often neglect to insure the most important asset, which is themselves being the most important asset.
Ensure that you and your family will be protected in the event of accident, injury or death.
Finacial Vision and Services can help you arrange the necessary cover through our iqualified financial planners, Investment and Risk specialists. North Hobart Planners and Insurance Specialists:
- Compare and quote life insurance, TPD and Income Protection
- Trauma Insurance
- Personal and Business will
- Buy sell
- Key man insurance
Buying, expanding restructuring
If you’re buying a commercial property or refinance your existing loan.
We can make the process easy, Our commercial specialists provide professional advice to investors, developers and businesses with loans and structures to achieve their goal and objectives.
We can help you and your business expand, investment, leasing, asset purchase
Whether purchasing or refinance of commercial properties we can assist.
Some of the different types of commercial finance facilities include:
- Property Development Finance
- Hire Purchase
- Chattel Mortgage
- Leasing Finance
We can help you understand all of your commercial finance options and will determine which loan structure is right for your business needs.
Security for Business and Commercial Loans
Some of the options for security for your business loan include:
- Guarantee of directors – supported by residential or commercial property
- Residential property
- Commercial property
- Assets of business, such as stock
Getting Your Loan Approved
How your home loan gets approved
The most important thing to know about getting your home loan approved is that a lender is in business to lend money. While it might not always seem this way, when assessing a loan, a lender is looking to see why they would approve, not decline a loan application.
There are essentially two main steps in the home loan approval process. Firstly your ability to make the loan repayments is assessed and secondly, the property you wish to purchase is valued to ensure it is an acceptable risk to the lender.
Here are some tips to help you get your home loan approved.
- Apply to the right lender – Financial Vision and Services will recommend the lender that is most likely to approve your loan with the best structure to meet your circumstances.
- Presentation – Financial Vision and Services can professionally present your application, and this can make all the difference between your loan getting approved or declined.
- Make sure your credit rating is good by paying all your bills on time.
- Provide all the required documents upfront.
How using Financial Vision and Services can help
Financial Vision and Services will help you provide the correct information and negotiate on your behalf. Understanding how a lender’s credit scoring system works can make the process a lot easier for you.
Good brokers know their lenders products and policies and understand how they work.
How long does it take?
Depending on the complexity of your situation
From the initial meeting to a final approval will take anything from a few days to a couple of weeks. This is from the point in time all the information requested is provided.
Paying Off Your Loan Sooner
Some helpful tips to help you pay out your mortgage sooner.
Get the right home loan
Making sure that you have the right loan to suit your individual situation is important.
We will recommend a loan and structure that will enable you to pay off your loan sooner
There are many loan products that offer flexibility
- line of credit loans,
- standard variable loans with a redraw facility,
- offset account.
- Direct Transfer
- Direct Credit
- Split loans – up to 5 splits
Make extra repayments
Additional repayments such as bonuses and tax return refunds will reduce the principal on your mortgage faster.
The earlier you start making additional repayments, the greater the long term benefit will be in reducing the interest payable.
Interest is calculated on a monthly basis, hence the lower the balance the less the interest.
Even a small amount will have a big impact – just one extra payment a year will reduce there term of your loan by almost 5 years on a 30 year term.
Ensure you retain access to extra payments through redraw, its great to pay off your loan early, but not at the expense of your well being, lifestyle and goals, be flexible
Look for a cheaper rate with good flexibility
Financial Vision and Services will recommend the best rate matched with flexible features. Loans with redraw and easy access and with no fees are ideal to improve your cash-flow and reduce even further the interest payable – just review our recommended structure and save .
Pay loan fees and charges up front
Pay the establishment fees, legal fees and Lenders Mortgage Insurance (if applicable), upfront rather than capitalising them into your loan..
Look for loans that offer features without a charge
Some loans will charge a fee for every redraw or extra repayment, to switch from a variable to a fixed rate, transfer your loan to another property etc, but some won’t. You can save the cost of fees if you know what you’re likely to use. That is why at Financial Vision and services we understand your goals and structure everything to maximise your cash flow and lifestyle.
Look outside the big banks
Many smaller banks, specialist lenders and credit unions have very competitive loans available. Just because you haven’t heard of a lender doesn’t mean they aren’t a reputable lender your Financial Vision & Services will know which lenders are credible and suitable for your situation.
Don’t lower your repayments when interest rates fall
When interest rates are falling, consider that keeping your repayments at the old level will reduce a significant portion of principal off your loan, particularly if rates continue to drop.
Review your loan regularly
Reviewing your loan regularly will help you to assess its effectiveness and take steps to correct any issues if necessary. Financial Vision & Service will continue to work with you to ensure you continue to get the most out of the financial structure providing a yearly review service.
We are here for you and not the lender.
First Home Buyer
As a first home buyer, to find a good home loan you should look into both your home loan options and government grants and entitlements you may be eligible for.
Banks and lenders have very specific policies around lending to first home buyers and the pricing of their home loan products can vary substantially. To help secure the right home loan for your finance needs talk to us today.
We will help you every step of the way when applying for your first home loan.
How much deposit you will need
As a guide
If you are an owner occupier you will require 5% of the purchase price as a deposit.
If you are an investor, you will ideally require 5-10% of the purchase price.
Family guarantor loans are another great way to help you with your home loan deposit, if you have family willing to help as a limited liability guarantor.
Your home loan deposit will usually need to be partly made up from genuine savings. You can also use a combination of other sources, including:
- First Home Owners Grant (FHOG) and state based first home buyer incentives
- Monetary gifts
- tax returns
- First Home Saver Account
Government grants and entitlements
The Government offer generous incentives to first home buyers.
We can help you arrange the first home owner grant and stamp duty concessions.
Access a large range of banks and secure mortgage lenders
When you are choosing a home loan it’s important to make sure you use a broker with access to a large range of banks and secure mortgage lenders, so you can be sure the home loan you choose is competitive.
We work closely with a panel of lenders that contains all of the major banks and secure mortgage lenders in Australia.
The major types of home loans available are:
- Variable Rate Loans
- Fixed Rate Loans
- Split Loans
- Interest Only Loans
- Introductory Rate Loans
- Professional Package Loans
- Deposit Bonds
- Line of Credit Loans
- Low Deposit Home Loans
- Low Doc or No Documentation Loans
- Non-Conforming Loans
Variable Rate home loans
The rate charged on a variable loan usually move up or down in accordance with movements in interest rates, as set by the Reserve Bank. This has been the case however some lenders are starting to move away from this practice base on the cost of funding.
Fixed Rate home loans
A fixed rate loan is a loan that has a fixed interest rate and therefore fixed loan repayments. The time period of these loans can vary, but you can usually lock in your repayments for between 1-5 years, some lender can offer 10years.
Although the fixed rate period may be 3 years, the total length of the loan itself may be 25 or 30 years. At the end of the fixed loan period you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remaining time left of the loan.
NOTE – lenders to charge a fee if the fixed rate term is broken, each lender uses different methods of calculating the break cost, it is important to access the right lender.
A split rate loan is a loan that has one portion of the loan fixed and one portion variable. You can select how much to allocate to each.
Majority will allow you to have up to 5 split. This can be an advantage if you are building an investment portfolio, again split can be interest only, principle and Interest and fixed
Interest only loans
You repay only the interest on the principal during the term of the loan. Repayments are lower than with a standard principal and interest loan.
At the end of the interest only period, one to five years you are required to negotiate an extension of the interest only term or roll over to a principal and interest repayments over the remaining term of the loan.
Introductory home loan
The interest rate is usually low to attract borrowers. Sometimes called a honeymoon rate, this rate generally lasts only for around 12 months before it rises. Rates can be fixed or capped. Most revert to the standard rates at the end of the honeymoon period.
Professional packages can offer substantial discounts and special benefits, but are only available to those who can satisfy specific criteria.
The main criteria for most professional packages are that the home loan be in excess of $250,000.
This amount will vary from lender to lender.
The benefits vary between lenders, rate discounts of between 0.50 and 0.9 per cent for the life of the loan are offered, lower fees and discounts on other bank products.
These are generally great products and well worth considering if you qualify however the annual fees .
Buying a home can be a stressful experience, which is why deposit bonds help makes the home buying process easier, and help save you time and money.
A Deposit Bond or deposit guarantee acts as a substitute for cash and you can use the bond when exchanging contracts and when purchasing at auctions. It gives you the freedom to concentrate on finding the right property and keeps your savings earning interest right up until the day of settlement.
Advantages of obtaining a Deposit Bond:
- No need to break fixed term investments which may incur fees
- Secure your new home without using your savings or bridging finance
- Purchase with confidence at auctions and private sales
Line of Credit loans
This type of property loan revolves around equity built up in your property and allows access to funds when needed.
These products provide cash up to a pre arranged limit.
If there is consistently more cash coming in than going out these accounts can work well.
LOC can be very costly if the balance of the line of credit is not regularly reduced.
It usually requires an interest only payment as a minimum each month, which can add up to a lot of interest over the long term.
If not managed properly little is paid of the principle and your loan is not reduced.
Lines of Credit also attract higher fees and interest rates for the convenience
Low-doc home loans
If you’re self employed, you may not have the amount of paperwork that’s normally required to apply for a Loan. A Low Documentation (Low Doc) Loan may allow you to obtain the finance when you want, without the usual financial statements or tax returns. Majority of lenders do require BAS statements and the entity
Non conforming home loan
Poor credit ratings hamper people from sourcing a home loans. Many lenders now offer non conforming loans for people in this situation.
While some lenders are willing to overlook prior minor credit problems, evidence of your ability to repay the loan must be evident. A larger deposit may help and or additional security
Using a Mortgage Broker
There are many great home loan deals around if you know where to look and who to ask. Financial Vision & Services connects home owners, investors and business owners with the best finance products and structures available from their panel.
Access to a range of major banks and secure lenders. Our knowledge of the finance market and our mortgage software help us find the home loan that is best suitable to your needs.
We will then take you through the application process until your home loan is settled.
- Discuss your existing situation,
- Your home loan needs and requirements
- Obtain all necessary information with regards to your home loan application.
- Advise the types of home loans available.
- We will recommend the best product to meet your goals and aspirations
- How to maximise your mortgage features to enable you to improve your cash flow and budget
- Provide written recommendation base on your personal circumstances
- Complete and structure your home loan application for submit ion to the appropriate lender
- Act as an intermediary between you and the lender
- Liaise with your solicitor, real estate agent and accountant and any other related parties.
- Assist with any future home loan requirements (top-up, switched etc.)
- Provide ongoing advise as required
- Provide an annual review service
Remember using a financial vision is free to you.
We help you find the best loan in Australia to suit your needs from our panel of lenders, which can often save you thousands.
Our structure and strategies to manage your mortgage and your cash flow will save you thousands.
We expect all our clients to become referrers and advocates for our business