Low doc home loans are typically used by borrowers who are self-employed, have variable income or do not have tax returns or financial reports with which to prove serviceability. You may be able to use a low doc loan for residential, investment or business purchases.
Major lenders will usually insist on a Loan to Value Ratio (LVR) of at least 80 per cent, however some specialist lenders may accept an LVR of up to 95 per cent.
Most lenders will require you to take out Lenders Mortgage Insurance for a low-doc loan with ...
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Categories: Finance News. Tags: lo doc, lo doc home loans, Loan to Value Ratio, Variable Rates.
Empty nesters and people approaching retirement with big homes and mortgages are downsizing to sustain their current lifestyle, says leading mortgage broker Loan Market.
Loan Market Chief Operating Officer Dean Rushton said there had been enquiries nationwide from mortgage holders who were selling up to reduce their debt.
“By selling up and buying a smaller and less expensive property they can then reduce their mortgages and create a comfort zone for themselves and in some cases help their children to purchase a property,” he said.
Mr Rushton said the majority of downsizers are of retirement age but many don’t have the ...
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Categories: Finance News. Tags: downsizing, Loan Market, Reserve Bank of Australia.
Consumers need to shop around when looking for a home loan because of major differences in bank lending policies and interest rate levels, says leading mortgage broker Loan Market.
Loan Market Chief Operating Officer Dean Rushton said some of the big four banks had tightened already tough lending policies in recent times.
Mr Rushton said major banks were also likely to raise interest rates independently of the Reserve Bank of Australia (RBA) in the near future because of increases in their wholesale funding costs.
“It’s never been more important for would be borrowers to shop around for a ...
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Categories: Finance News. Tags: Home Loans, Loan Market, Reserve Bank of Australia.
A recent report indicates that interest in buying property off-the-plan in Sydney has increased following the introduction of stamp duty waivers by the NSW Government.
Apartment developments had been suffering in the post-GFC era, after developers and buyers had more hurdles to jump to achieve finance approval.
Organising your home loan for an off-the-plan purchase is often a little different to organsing a standard home loan.
In the period between signing your contract and paying a deposit, and settling on the property, you will need to confirm your finances. If you already have a loan approval, you will need to reconfirm the ...
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Categories: Finance News. Tags: First Home Buyers, Home Loan Pre-approval, off-the-plan.
Home loans up to the value of 95% of the property price are making a comeback, with a number of lenders announcing new home loans for low deposit holders in recent days.
The latest in low deposit home loans are generally available to clients purchasing an owner-occupier property who can demonstrate a solid savings and employment history. In some cases, the loans are only available in certain areas.
The good news on the low deposit front comes at the same time more lenders move to lower their fixed home loan rates, providing many borrowers with a good range of competitive ...
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Categories: Finance News. Tags: 95%, Fixed Home Loan Rates, Home Loan, Low Deposit.
An increase in the unemployment rate and and a probable fall in inflation is seeing a wave of predictions from economists that the Reserve Bank will keep official interest rates on hold for the remainder of 2010.
Other factors that may also help to stay the RBA's hand over the coming months include a slowing housing market and a fall in the number of home loans.
Despite this news, borrowers and homeowners would be well advised to keep a close eye on home loan interest rates, as costs in the wholesale money market remain high; this means it ...
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Categories: Finance News. Tags: Fixed Home Loan Rate, Fixed Rates, Home Loans, Interest Rates, Variable Home Loan Rate, Variable Rates.
Home loan commitments fell in June to their lowest point in nine years, according to the Australian Bureau of Statistics.
Economists are attributing the decrease to less demand from investors, higher interest rates, and slowed housing momentum.
The ABS figures show that housing finance commitments for owner-occupied housing fell 3.9 per cent in June – almost double the market forecast of 2 per cent.
CommSec economist Craig James said investors had previously helped keep the market afloat, but that their numbers were dwindling.
"Certainly, the rate hikes that have been applied late last year and early last year are continuing to bite," ...
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Categories: Finance News. Tags: Home Loans, Interest Rates, Rba.
Yes it is true. But you already knew that of course! But perhaps what you didn’t know is that the amount you can borrow between lenders can differ by tens and sometimes hundreds of thousands?
One of the most common mistakes by borrowers is the feeling that lenders will lend roughly the same amount because they mistakenly believe ‘all lenders are the same’.
The truth is that every lender calculates your borrowing capacity very differently; from the way they calculate your income to the calculations on your existing debts and even the way they work out what your ...
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Categories: Finance News, Mark De Martino. Tags: Borrowing Capacity, Investment Purchase, Lenders, Mark De Martino, Property.
About Economy Home Loans
Economy Home Loans are a low-cost lender, providing some of the best value home loans in Australia. Economy Home Loans offers great alternatives for first home buyers and investors alike – alternatives for anyone who is tired of paying more than they need to for their money.
Economy Home Loans is a brand operated by Loan Market Group, one of Australasia’s largest family owned mortgage brokers.
Where does Economy Home Loans source its funding from?
Economy sources wholesale funds from RESIMAC Limited (“RESIMAC”); a ...
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Categories: Finance News.
Mortgage holders can expect the major banks to increase interest rates despite being given another reprieve from the Reserve Bank of Australia (RBA), says leading mortgage broker Loan Market.
Loan Market Chief Operating Officer Dean Rushton said despite the RBA leaving the cash rate on hold at 4.5 per cent, lenders will soon lift their rates independent of the RBA.
Mr Rushton said banks have indicated they will lift rates against the trend and out of cycle because their cost of funds is increasing due to the ongoing European debt crisis and the roll-over of cheaper funding.
“Enjoy the ...
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Categories: Finance News. Tags: Dean Rushton, Loan Market, Rba.
