Finance Broker Services Australia

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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.

Property Mortgage

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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.

Property Investing

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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.

Personal Loan

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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.

No Deposit Home Loan

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No Deposit home loans have become unavailable in Australia in 2009

Home purchasers and investors alike are now able to choose from a wide range of no deposit home loan options available from most banks and lenders.

 

NSW First Home Buyer 100% No Deposit Example

Property purchase price

= $300,000

Lenders Mortgage Insurance LMI

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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 to Value Ratio

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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

Calculating Loan Serviceability

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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.
Each lender has their own loan calculator which a finance broker must also use to check that the serviceability, or ability to repay a loan is evident using the actual lenders specific criteria.
Generally serviceability is calculated as follows.

Lease Finance

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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;

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