Refinance

Today’s competitive home lending market makes refinancing much easier than in the past. There are many good reasons to consider refinancing. Perhaps your financial circumstances have changed; you’ve started a new job or are dissatisfied with your existing lender. Maybe your current mortgage no longer suits your needs.

When to switch
Switching loans or lenders (or both) could be the answer. But it can also be risky. To assess if you’re likely to benefit from refinancing, ask yourself:

• am I happy with my lender?
• do I need reduced or added features with my loan?
• am I paying too many bank fees?
• is the interest rate too high?
• have my financial circumstances changed?

Refinancing takes time and costs money. Be clear about why you want to refinance. Decide the type of loan you want, list the required features and do your sums to make sure you won’t be worse off in the long-term.

Fixed or variable rate loan
With a variable rate loan, payments increase when interest rates rise. This can affect family budgets and lead to changes in your overall financial circumstances.

Refinancing to a fixed loan can offer protection against rising rates. This can help borrowers who don’t have the cash flow to cover higher loan repayments. Fixing also gives you the ability to budget over the long-term.

Split loans
An alternative to fixing your entire home loan is to refinance to a split loan. Split loans let you fix part of your loan and leave the rest on a variable rate. Generally, split loans offer the flexibility and features of variable rate loans whilst offering the certainty of a fixed loan.

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First Home Buyer

Buying a home for the first time can be daunting, especially when it comes to choosing a home loan. At Peak Mortgages, we can help you find the right loan with our unique combination of people and technology. Peak Mortgages makes borrowing faster and easier, while giving you the personalised service you deserve.

To help you get started consider these eight factors when applying for a home loan.

1. How much can you afford to borrow?
   The first step is to work out how much you can borrow. Look at your income and all expenses, debts, regular bills to work out how much you can put towards a home loan. Most lenders will base the size of your home loan on your capacity to meet the repayments. Repayment should not exceed 30% of your pre tax income. Use our calculator to find out how much you can borrow.
2. Deposit amount
   For most lenders, a minimum of 5% of the purchase price is required as a deposit. However, the more money you can save for your deposit the better off you’ll be. Repayments will be reduced and you’ll save money over the life of your loan.
3. Savings history
   Lenders require proof of savings history in the form of bank statements that show regular deposits. You will need at least the last six months’ statements, which should add up to at least the 5% minimum deposit. Or proof that you have been paying rental income for the past 12 months.
4. Types of home loans
   In today’s competitive market, finding the right loan can be a complicated, drawn out process. What may be suitable for one person may be inappropriate for another. To help simplify the process, familiarise yourself with what’s available. Also take into consideration your goals and financial circumstances.
   
5. First home owners grant
   If you have never owned a home before, you may be eligible for the Federal Government’s First Home Owners scheme. This one-off tax free payment of $7,000 can be used to help fund your additional expenses or in some cases may be used a deposit. Various state government schemes may also be available so check with your relevant State Revenue Office.
   
6. Stamp duty
   Stamp duty is a state government tax based on a property’s selling price. First home buyers in some states may be entitled to a reduction in stamp duty costs.
   
7. Lenders mortgage insurance (LMI)
   If you borrow more than 80% of the property’s value, you will probably have to pay lender’s mortgage insurance. This insurance protects the lender should you default on the loan. With a few lenders i.e. (Keystart there is no Mortgage Insurance payable)
   
8. Additional costs
   Apart from stamp duty and LMI, there are a number of additional expenses you need to take into account when buying a home. Costs include loan application fees, solicitor/conveyancing fees, building/council inspection, pest inspection, home and contents insurance, moving expenses and utilities connections.
   

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Are You Self Employed?

Being self-employed can be a rewarding experience but when it comes to applying for a loan, providing proof of income can be difficult. Maybe your business has only recently begun trading, or you have a lot of business expenses going through your books, like vehicles, fuel etc. which may make it tough to prove that your bottom line is healthy. Self-employed people may wish to structure their business for growth or tax efficiency or they may wish to buy their own home or an investment property. Peak Mortgages understands that when self-employed, your business is your life. When applying for a loan, we understand the difficulties self-employed people encounter in relation to proving their income and sourcing the right type of loan for their needs. The daily task of simply running your own business can often leave you little time to shop around for the best deal on a loan. You can trust Peak Mortgages to make sourcing a loan or lease a simple process. Our brokers are specialists in Commercial Finance and Leasing so you can be sure that we can find a package that best suits your business requirements One of our brokers can come to you at your convenience and explain the details to you in plain English so there’s no more confusion when it comes to ‘shopping around’. Give us a call and we’ll compare your current business loan, chances are we’ll find you a better deal.

We know that when you work for yourself, your business is your life. We also know that typically, self-employed people get raked over the coals when applying for a loan, especially when it comes time to prove their income. The daily task of simply running your own business can often leave you little time to shop around for the best deal on a loan, and even less time to jump through hoops. You can trust Peak Mortgages to get you the right loan, and get it done fast.  Where we really differ is in our service. We are here to give everyone a fair go, so you can trust us to help you save time and money.

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Reverse Mortgage

It is your “lifetime loan” that allows you to borrow against the equity or asset value in your property for any purpose that you wish.

It does not require any repayments on the life of the loan but you can make voluntary repayments if you wish to do this.

This senior’s loan does not have to be repaid until you choose to sell your home or the last surviving borrower passes away.         
The Title of the home will stay in your name.

You can receive your money in a variety of ways - as a Lump Sum or monthly payments direct to your bank account, or have a "cash reserve" limit and draw down as you need the money, or a combination of your options to suit your situation.  It is your choice.

If you have a current mortgage or loan on the property this will be paid out for you. You can use your money  anyway you wish – additional income to enjoy yourself, home repairs, health care, holidays, to help your family, to buy a new car or pay out existing debts, mortgage,  loans  or credit cards  - your choice.

The amount you receive will depend on the value on your property and the age of the youngest borrower.  The older you are the more you can receive.

If you feel that this   “lifetime loan” could suit you or assist you with a better retirement life style please Contact our office and we will send out our Reverse Mortgage specialist to see you in the convenience of your home.