According to Veda Advantage or Equifax, a credit score is a number that lenders use to help them decide: “If I give this person a loan or credit card, how likely is it I will get paid back on time?” The information from your credit reports is used to create your credit score. Your credit score will always be a key ingredient for low interest rates when qualifying for mortgage or home equity loans.
Before getting a line of credit, get your free credit report from each of the three major credit reporting agencies (CRAs): Veda Advantage or Equifax, under federal law, you are entitled to one every year. Order online at https://www.mycreditfile.com.au, or call 13 83 32. Check to make sure someone else’s information isn’t mixed into your report. If so, contact the CRA immediately and have them delete it.
Then, follow these tips to help you establish credit and build your credit score:
Buying your First Home! … Buying your first home is an exciting and satisfying experience. There are a number of things that one has to be aware of: • Various government benefits for first home buyers • Understanding Lender requirements before they give you a loan
Government grants and stamp duty exemptions can save you valuable $$$ off the cost of your new property in some states, if you’re eligible! First home buyers get 2 main benefits. First is a cash grant handed to you (called the first home owner’s grant) and second is an exemption of stamp duty costs associated with the purchase of a property.
Things to consider for FHO (First Home Owner)
1. The First Home Owners Grant
Each state has different qualification rules and pay different grant amounts. The grant varies from $5,000 in some states to $20,000 in others. To be eligible for [...]
Understandably, it can seem like a chicken and egg scenario: you can’t buy a house without a home loan, but you can’t get a mortgage until you’re ready to buy a house. A lot of homebuyers end up losing their dream home because they left sorting out the home loan a tad too late. Arranging your mortgage as early as possible can put you in a stronger position with sellers –and reduce the amount of stress.
When should I start arranging a mortgage?
You should start the process of applying for a Pre-approval with Suresh@ DBIJ Finance on 1800 MY DBIJ (693245) before you even start seriously looking for somewhere to buy to get insights and tips. If you are looking at properties to buy before starting to arrange your mortgage, you have left it too late. There are three reasons for this:
To find out for sure how much you can afford. This is [...]
What Is a Mortgage broker or a Finance Broker, and Should You Use One?
A mortgage broker can make your mortgage search much easier, but is it really necessary?
In Australia, if you’re thinking of buying a home in the near future, chances are pretty good that you’ll need to obtain a mortgage. When doing so, you have two basic options — deal with a bank and other lenders directly, or the other best option is to hire a mortgage broker to do the hard work for you at no cost absolutely. The market is filled with Mortgage brokers but the differentiator in a mortgage broker is the knowledge, experience and also someone who fights your battle with the banks to tailor the best home loan solution that fits your life style and fulfills your financial goals. Here’s what you need to know about mortgage brokers to help you decide whether you should use one [...]
Products offered by the banks differ in needs and benefits for example, some banks offer more than others for similar products (e.g. a savings account with a loan product). It’s not uncommon when it comes to interest rates, to find a difference in percentage p.a. or more between banks, which may or may not add up to the lending cost.
Why are some bank interest rates higher than others?
Interest rates are some of the major sources of income for banks. A high interest rate attracts deposits, which the banks can then lend out earning revenue. Other sources of revenue come from fees for ancillary services offered e.g. fees and charges on credit cards and unsecured loans
Depending on the economy — possibly the local economy for small banks and credit unions — you’ll find that the “borrowing and lending” banks change rates as their customers’ needs change.
To buy or to rent? It’s one of the most hotly debated questions in any city – and nowhere more so than Australia. Here, expensive housing means that buying is often a big trade-off between your money and your lifestyle.
While many believe that the benefits of owning your home far outweigh being beholden to a landlord, others argue that more money can be made over the long term by investing the savings made from renting.
So what are the pros and cons of renting versus buying – and which choice is ultimately going to offer the best long-term financial outcome for you?
1) Live where you want.
When you find a neighbourhood you love, you can probably afford to live there as a renter, even though buying there might be out of the question.
And if you’re new to town, renting is a terrific way to test-drive a neighbourhood. Decide you don’t [...]