Finance Broker Perth | Xchange Finance
Stamp duty explained
Stamp duty is a charge which is applied by state governments in Australia on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for in addition to your loan deposit. The amount of stamp duty you are required to pay differs in each state, however there are three factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include: whether or not the property is a primary residence or investment property; whether or not you are a first home buyer; and if […]
A Preparation Checklist for a Business Loan
Applying for a business loan is a completely different process to that of a home loan application. To ensure you don’t lose your way, we’ve set out a clear path for you to follow. 1. Find a specialised broker Commercial lending is very different to residential, so when searching for a broker, it is important to seek one who is not only accredited, but also experienced in commercial and business finance. “The first things you should ask a broker is what experience they have with commercial and business loans, and how many lenders they are accredited with in the commercial space,” […]
Paying off your education is no reason to put off buying property. You can remember it now: sitting in a chair at the back of the lecture theatre, chatting to your friends and ignoring the debt that each day at university was plunging you into. But now you’re older and wiser, and reality has set in. You want to buy a property, but you’re unsure how your student HECS or HELP debt could impact your ability to take out a loan. When you apply for a home loan, you’ll need to reveal information about your liabilities, poor credit ratings […]
Case study: avoiding settlement penalties
Jarrod Harrison** was well on his way to becoming a first-home owner when issues cropped up prior to settlement that threatened to cost him his deposit. Having found the house he wanted to buy, and exchanged contracts for sale, Jarrod found himself considering a costly settlement extension due to unexpected problems with his deposit. While he had thought that having a deposit sitting in his account would make the process simple, Jarrod had not realised that he needed to have the funds in his account for a minimum of three months before a lender would consider them genuine savings. His […]
Home loans 101
There are a range of home loans available in Australia, so it can be hard to understand their features and whether they are right for you. This guide explains all you need to know. Variable loans Variable loans are loans that are subject to interest rate fluctuations. Whenever your bank increases or decreases interest rates, you will end up either paying more or less for your loan, depending on what the bank has decided to do. A typical owner-occupied mortgage is taken out over 25 or 30 years, although you can reduce the overall term by making higher or more […]
Six mistakes business owners make when taking out a business loan
A small business loan can be invaluable when you’re establishing your business or when an unforeseen setback occurs, but you don’t want a loan to be short-term gain and long-term pain. Here are six common mistakes businesses should avoid when it comes to commercial finance. Mistake #1: Not getting the right loan A thriving business requires enough capital to meet expenses, expand and invest, but it’s important to know why you need the funds and what loan best suits that need. Do you need to cover short-term cash flow shortages, for example? A line of credit could help, where you […]
Five questions potential first-home buyers should ask themselves
As a new home owner, you may be asked by friends and family interested in buying their first home what to consider before diving in. Here are five tips you can pass on. Is it the right time? Moving house can be stressful and time-consuming, so consider whether it’s suitable right now. Will your children need to move school? Are there work obligations that could make a move challenging? If you’re planning major life changes like having a baby, you’ll need to factor these in. 2. Am I ready? When considering your financial situation, do you have debts (like a personal […]
How to instill financial smarts in your kids
Worried about your kids not mastering the skills to manage their finances as adults? These tips for parents will help children develop good financial sense from a young age. Most parents want their children to achieve the Australian dream of home ownership. The good news is that parents can actually play a key role in making this happen by teaching their kids the basics of finance and instilling good behaviours that will last a lifetime. Starting from a young age Children are sponges when it comes to learning, which is why starting their financial tuition from a young age makes […]
Confused about home loan pre-approvals? Follow these four steps.
Ready to buy a property? You’ll need to show the seller you have enough money. For most people, this will mean getting a loan, and the first step to getting one is obtaining pre-approval for it. Pre-approval – also known as conditional approval or approval in principle – is an indication from a lender as to how much you can borrow. If you have pre-approval, vendors and agents know you’re serious about buying. Here are the steps you need to follow. 1.Gather your financial information To get an idea of how much you can borrow, and therefore what you can […]
Why location is crucial when buying an investment property
The first thing most of us look at when selecting an investment property is its location. If the property itself isn’t quite right, you can always renovate, but it’s not as easy to move a house to a better location. That’s why you should consider the location carefully. Here are some of the most important things to look for. Love thy neighbour Before you buy, familiarise yourself with the local community. If possible, visit the neighbourhood during both day and night to get a feel for whether it’s a safe place to live. Are there kids playing outside or security […]