#perth / 29 posts found
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 low can you go: making the most of record-low rates
After all the talk, December 2020’s decision by the Reserve Bank to cut rates didn’t come as a surprise. The RBA’s call sent the cash rate to a historic low of 0.10 per cent. And as of recently held RBA Board meeting on 2nd Feb 2021, it remains at 0.10 per cent. The call was the latest attempt by the RBA to drive economic growth, and while much of the current conversation surrounds just how low the RBA can go and how fast, there are some good ways for you to make the most of these new financial conditions. Shop around for […]
Overcapitalising: What it is and how to avoid it
There are certain things to look out for when selecting and applying for a loan for your investment property. Here we look at the main differences, the most popular loan types, and how to get the best mortgage for your situation. Interest-only, fixed, variable, offset – finding the investment home loan that’s right for you can seem like a minefield of financial jargon and conditions. The key to finding the right loan is to have a clear investment strategy: are you going to renovate and sell, or stay on for the long term and ride the property wave? Fixed interest […]
Overcapitalising: What it is and how to avoid it
As a home owner or property investor, you may have heard the term ‘overcapitalising’. But what exactly is it and why is it considered bad? While adding a new deck or kitchen can increase the value and enjoyment of your property, overcapitalising can end up costing you more than you planned. Here’s a closer look at what overcapitalisation is, why it’s bad, and how you can avoid it and still increase the value of your property. What is overcapitalising? Simply put, overcapitalisation is when the cost of a home improvement is more than the value it adds to your property. […]
The art of the possible: how to pay off your mortgage sooner
It’s a simple equation. Paying down your mortgage sooner can save you thousands of dollars in interest in the long run. Here are some ways to make the most of every dollar while paying off your loan quicker. Increase your repayments… Let’s take a look at repaying a $500,000 home loan, using the mortgage calculator available on Xchange Finance’s website. If such a loan was taken at a fixed rate of 5% and paid back at $2700 a month along with $10 in monthly fees, it would take one month shy of the Australian average of 30 years to pay off. And […]
Does the gig economy make it harder to get a mortgage?
For lenders, the ideal customer has a steady income, ongoing employment and the ‘right’ paperwork. Here’s what you can do to get a loan in the gig economy. From launching a start-up to contracting in the ‘expert economy’ or just renting out the spare room as an Airbnb, more and more Australians have sources of income that would have been considered unusual even a decade ago. According to Independent Contractors Australia, self-employed workers – in what is widely called the ‘gig economy’ – now total more than 17 percent of the Australian workforce. That’s two million people who don’t conform to […]
On the market? The federal government’s First Home Loan Deposit Scheme explained
The barriers a first home buyer faces when entering the property market are well documented. So, will the government’s new First Home Loan Deposit Scheme (FHLDS) help, or not? Here’s a guide to who’s eligible, how it will work, and what the new scheme may mean for the housing market. Have you got a spare $228,442.40? That’s the 20 percent deposit needed for a property at Sydney’s median house price of $1,142,212. Aspiring home buyers have been repeatedly told to save for a deposit at that ratio. The FHLDS announced before the 2019 federal election, is intended to lower the […]
Where can I get finance for a small business?
Note: When seeking credit assistance, use a mortgage broker to protect your best interests. Many people in Australia dream of running their own small business but four out of five never do it. If you’ve got a good idea, develop a business plan, then let’s discuss your small business finance options. Your small business finance or commercial finance options include: Business loans Commercial loans Lines of credit Home equity loans Franchise funding Venture capital How much money does your business need? A lot of small businesses fail not because they’re offering a poor product but because they run out of […]
The Home Loan Approval Process
Following the lodgement of a home loan application, hopeful borrowers are often keen to know what will happen next and how long it will take for them to receive the verdict. The bad news is that there is no one-size-fits-all answer. The good news, however, is that a solid application is a key to keeping the approval time short. The amount of time it takes for you to receive a response to your home loan application can vary. An answer is usually received between two days to two weeks, depending on a range of factors. Before offering conditional approval, your […]