Loan to value ratio, often referred to as LVR, is an important calculation to keep in perspective when purchasing property with finance.

The way to calculate loan to value ratio is divide the loan amount by the actual property purchase price or valuation (whichever is the lower).

$80,000 loan ÷ $100,000 purchase price or valuation =0.8 x 100 = 80% LVR

If you are seeking finance or a loan, the services of a finance broker could save time and possibly money through comparing a range of banks, lenders, finance and loan options at the one time an in the one place.

Many finance brokers offer a wide range of options ranging from personal loans and asset finance such as novated leasing through to home loans, business finance, construction finance, or even debt consolidation or reduction plans.

A mortgage is a method of using property either real or personal as security for the payment of a debt.

The term mortgage originates from the French language  where it means "death vow" or a vow until death which to many seems very apt when looking at the beginning of a 30 year mortgage!

Mortgage refers to the legal device used in securing a property, but it is also commonly used to refer to the debt secured by the mortgage, or in other words the mortgage loan.

Investing in real estate is not commonly viewed as a get rich quick scheme. Purchasers usually have to pay the stamp duty and loan set up fees at the time of purchase and then there is  interest on the loan and other costs involved with the property need to be accounted for such as rates and taxes and general maintenance and upkeep.

A more recent indication of this could be drawn from the introduction of 40 year loan terms which could very well help investors leverage further into the market by minimising loan repayment amounts as the loan term is lengthened.

Personal loans generally fit into two main category types,  secured personal loans and unsecured personal loans. An example of a secured personal loan could be where the loan is used to purchase a motor vehicle and the actual loan is secured by the motor vehicle. If anything should happen where the loan repayments cannot be met the borrower may be able to sell the motor vehicle to pay out the loan or the lender may be able to recover the motor vehicle and auction it to recover money still owing. If there is a short fall the borrower will still be liable to make up the difference.

It is very important to understand that lenders mortgage insurance, LMI, does not protect the borrower. If a borrower requires insurance to cover mortgage repayments in the event they lose their income mortgage protection insurance or income protection insurance advice should be sought.

Loan database software used by many finance brokers can usually calculate the serviceability for clients with a given loan size very closely. the same software databases can often give an indication of the maximum loan size each lender may consider based on the applicants income and existing liabilities.

Lease finance leasing is often used for the acquisition of motor vehicles and plant or equipment for business purposes.

Finance products  commonly available for these purposes are;

Refinancing a home loan or commercial property loan can often result is considerable savings if the current loan has grown uncompetitive or inflexible.

In times of increasing variable interest rates where fixed rates are lower a saving can be achieved through insulating the loan from further increases by entering into a fixed interest rate term.