Enter parental guarantor loans.

Parental guarantor loans have a ton of potential benefits, so what does having a parent guarantee your home loan look like in practice?

What is a parental guarantor home loan?

A parental guarantor home loan allows your family members to ‘guarantee’ your loan by taking responsibility to pay back your loan if, for some reason, you are unable to. A parental guarantor typically offers up a percentage of their own home or other equity in order to ‘guarantee’ your loan.

Think of it as a security deposit. As long as you abide by your contract, your parent or family member’s assets will never be touched. But if you don’t abide by your contract and stop paying your mortgage on time, the bank has the right to ensure your parents or family member pays the loan until you are able to.

This is not going to feel dissimilar from a regular home loan for you. You will borrow money from the bank and then repay it, including interest. But your guarantor’s equity represents an additional layer of security for all of or a portion of your loan should something go wrong. This is important because there is a risk here: if both you and your guarantor are unable to make the payments on your home, the bank could take possession of your parents home (or other equity offered to guarantee your loan). 

Once you repay the portion of the loan that your parent or family member has guaranteed, they are no longer liable for any repayments you may miss further down the road.

Who can act as my guarantor?

A parental guarantor home loan allows your family members or in some cases, someone else close to you, to ‘guarantee’ your loan. So who can act as your guarantor? Just like you, the bank will have certain requirements of the person that is going to guarantee your loan – to ensure that their loan is going to be safely recovered.

Your immediate family is generally required to be your guarantor, so your parents are the most common path. In some cases, lenders will consider other family members such as siblings or grandparents to guarantee your loan. There are a host of financial requirements that lenders will look to see in your guarantor, but a good credit score, property to be used as collateral and a stable income are stock standard.

How much can I borrow with a guarantor?

You can borrow up to the full amount of the loan, however, each lender is different and this will depend a great deal upon your and your guarantor’s specific situation. Get in touch today to find out how much you could borrow with a parental guarantor.

Why choose LiveInvest as a first time home buyer?

• Fast Approvals: When you’re a first time home buyer in an aggressive market, time is of the essence. It’s paramount to have a mortgage broker that values this position in the process and we know that it’s important to you to get results as soon as possible. With fast-track loan options and streamlined application processes, LiveInvest is committed to getting your first time home buyer loan approved faster!
• Convenience: First time home buyers are hardworking and active individuals. Their time is important and we at LiveInvest put our clients first so that you don’t have to spend time sitting in a waiting room or bank queue in order to lodge your loan application. Flexibility is one of our core values and that means that our brokers visit you at the time and location that’s most convenient for you. 
• Range: We offer commodities to suit the requirements for all first time home buyers. We understand that everyone’s circumstances are distinct and therefore, it’s important that we fit your solution to your particular set of criteria. Let us know if there are specific specifications we need to be cognizant of to fit your situation and we’ll find an affordable resolution for you!
• Relationship: Unlike most mortgage brokers, our first time home buyer service goes beyond the settlement of your new loan. We provide ongoing support, even after you are approved for your first time home buyer loan, to ensure that you continue to have access to the best finance solutions on the market!
• Network: We are partnered with some of the most reliable local professionals and businesses, so we can help you get the best advice and most trustworthy service on the market!

Utilise our mortgage affordability calculator to figure out what your loan repayment might look like. If you’re interested in hearing more about buying an investment property, ring us today at 1300 831 288!

The post What are parental guarantor loans and can they help you buy your first home? appeared first on LiveInvest.

RBA Governor Philip Lowe said, “At its meeting today, the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic.”

This is the third time the RBA has slashed rates in 2020. In January, the cash rate was 65 basis points higher at 0.75%. These rate cuts are largely due to the recession and lowered economic activity that has been propelled by COVID-19.

What do super-low interest rates mean for Australians?

Australia’s cash rate is the amount of cash the banks have to pay on the money that they borrow. Usually, when the RBA lowers their cash rate, the major banks follow suit and pass the lower rate onto their customers.

The lower the interest rate is on the loan you have with your bank, the less money you’ll have to eventually fork over to pay off the loan.

This can mean savings for a lot of Aussies if their bank passes on the cut.

So what does all this mean for you? 

These are historical, record low rates. Australia has never had an interest rate this low and that could mean money back in your pocket starting soon. And, the RBA said that they will likely keep interest rates at 0.10% for at least the next three years.

If your bank passes on the full cash rate cut from the RBA, the average Australian homeowner would get back about $33 per month. That’s a savings of over $1,100 on the average mortgage over the next three years – money that you can use to supplement your super or just to take a nice little holiday.

And that’s savings calculated only from the most recent rate cut, there could be even more savings available depending on the interest rate of your current loan.

Which banks will cut variable interest rates?

Get in touch today to find out if your bank is passing on the RBA’s historic rate cut and to find out if you could save even more money by refinancing.

To summarise, if you are a mortgage holder and your loan provider hasn’t passed on the most recent RBA cuts to you, you’re probably paying more than you should be and you could potentially benefit from additional savings by refinancing your mortgage.

Why do homeowners looking to refinance their mortgage choose LiveInvest?

• Fast Approvals: It’s always a competitive market when you’re a homeowner looking to refinance their mortgage and time is one of the most important factors in your home success. We get results as quickly as possible. With relationships with all major lenders, we’re able to fast track your loan and streamline the application process so that your loan can get approved fast.
• Convenience: You’re busy! And you work hard. Your time is valuable and LiveInvest ensures that you don’t spend time waiting at the bank to lodge your application. We’re also available to answer all your questions at a moment’s notice. And best of all – our brokers come to you! 
• Range: We offer a range of products that will suit the needs for every first time home buyer. Give us a heads up if there are certain details we need to be aware of to fit your situation and we’ll find an affordable solution for you!
• Relationship: Unlike your average broker, our refinancing service goes beyond the approval of your loan. We provide ongoing support to ensure that you continue to have access to the best finance solutions on the market! We’re always here to answer your burning questions.
• Network: We partner with the best local professionals and businesses no matter where you’re located!

If you’re a homeowner interested in exploring your options to refinance your mortgage, call us today at 1300 831 288!

The post What does November’s RBA rate cut mean for you? appeared first on LiveInvest.

Rentvesting is a term you might not be familiar with, however, you’re probably familiar with what it means. Simply, rentvesting is a strategy to become a homeowner while still being able to live where you want. Rentvesting means owning your own investment property while simultaneously renting your own primary place of residence.

Because the cost of home prices in popular areas within cities has gone up astronomically, this strategy of homeownership has become more and more popular. It allows people – especially those that are young – to live in a home that fits their lifestyle while being able to own an investment property that fits their budget.

Why Rentvest?

This is a question that you’ll need to carefully consider along with your budget, where you are at in your life and the lifestyle you want to live. While the idea of paying off a mortgage and renting at the same time might seem counterintuitive, it’s a great way to build equity in a home at a smaller budget while still being able to live in the ‘hot’ location in your city.

For example, young single people may find it difficult to meet the budget requirements for a down payment in the neighbourhood of their choice but still want to get into the property market. Another example is a young family who wants to stay in the city short term but can’t afford to buy in the city and their long term plan is to eventually move somewhere more spacious outside of the city centre. 

Rentvesting can allow you to have your cake and eat it too. You can buy an investment property and rent it out to cover some or all of the costs involved in owning a home while simultaneously continuing to rent in your chosen neighbourhood. This is a great way to both build equity in the property market and earns income over the long term if the property value goes up over time. In some cases, rentvesting can even allow you to decrease the amount of your own rent bill if you’re able to earn a profit off the rental of your owned home. 

Pros of rentvesting

• You get to live where you want – even if the home prices are out of your buying budget
• Potential tax benefits: You may be able to claim some investment property expenses as tax deductions. The ATO explains when you can make these claims.
• Rental income: If you’re able to rent out your owned home for more than the costs you must pay as the homeowner, then you’ll have extra income
• Potential capital gains: If the value of your owned home goes up over time, you may be able to make a profit off the difference in the home value if you decide to sell the house in the future

 Cons of rentvesting

• Where you live will be less secure than owning your home because you’re renting: if the homeowner decides to sell or increase rent, you may have to move
• Homeownership costs: as a landlord, you’re responsible for the costs of maintenance to the home as well as any costs you may have to lease out your property
• If you sell the property, you’ll likely be liable for Capital Gains Tax because you’re not living in the property
• You won’t have access to the First Home Owners Grant
• If there is a lapse in the market or the value of your home goes down and you decide to sell in the future, you will be responsible for the lost value

Why choose LiveInvest as a first time home buyer?

• Fast Approvals: When you’re a first time home buyer in a competitive market, time is of the essence. It’s important to have a mortgage broker that values this advantage in the process and we know that it’s important to you to get results as quickly as possible. With fast-track loan options and streamlined application processes, LiveInvest is dedicated to getting your first time home buyer loan approved quicker!
• Convenience: First time home buyers are hardworking and busy individuals. Their time is valuable and we at LiveInvest put our customers first so that you don’t have to spend time sitting in a waiting room or bank queue in order to lodge your loan application. Flexibility is one of our core values and that means that our brokers visit you at the time and location that’s most convenient for you. 
• Range: We offer products to suit the needs for every first time home buyer. We appreciate that everyone’s situation is different and therefore, it’s important that we cater your solution to your specific set of criteria. Let us know if there are certain specifications we need to be aware of to fit your situation and we’ll find an affordable solution for you!
• Relationship: Unlike most mortgage brokers, our first time home buyer service goes beyond the settlement of your new loan. We provide ongoing support, even after you are approved for your first time home buyer loan, to ensure that you continue to have access to the best finance solutions on the market!
• Network: We are partnered with some of the best local professionals and businesses, so we can help you get the right advice and best service on the market!

Use our mortgage affordability calculator to figure out what your loan repayment might look like. If you’re interested in hearing more about buying an investment property, call us today at 1300 831 288!

*Source: Domain.com.au

The post What is rentvesting and could it work for you? appeared first on LiveInvest.

Refinancing can cost as little as $1,250 and it’s an easier process than you might think, but it’s still helpful to weigh up the cost benefit before you move forward with refinancing.

Whatever your situation is, refinancing can have benefits. Let’s explore some of these below…

Is now a good time to refinance your mortgage?

There’s no doubt that times are uncertain and many Australians are holding onto their cash more tightly than normal. Between the bush fires and the COVID-19 pandemic, it’s a scary time financially for most people in the world. However, if you meet certain conditions, refinancing your home could equate to giving yourself a mini raise.

Because interest rates are at an all time low, refinancing your home can make a big difference in your journey to cut costs or save money (more so than skimping on groceries or skipping the second coffee run). The Reserve Bank of Australia (RBA) decreased the official cash rate by 25 basis points to 0.25% and refinance rates are more competitive than ever.

How much could you save by refinancing your mortgage? 

Let’s look at the numbers. 

If you have a 30 year home loan of $800,000 at 2019’s average of 4.34%, you’d currently be paying about $3,978 in monthly repayments. 

However, if you were able to refinance that 30-year loan to another loan with a more competitive interest rate, like 2.19%, your monthly repayments would go down to $3,033 instead. 

That’s a huge difference to the tune of $945 per month. Let’s repeat that… you’ll save almost $945 every month, just by refinancing your mortgage. 

Use our loan comparison calculator to see how much a difference refinancing your mortgage could make to your monthly repayment amount.

What should you consider before refinancing your mortgage?

There are a few things to carefully consider before you refinance your mortgage. You’ll want to make sure that it makes financial sense to upgrade from your original home loan.

• Is the new rate a big enough jump? The general rule of thumb is that the difference between your current loan rate and the prospective new loan rate is at least .5 percentage points
• Have you considered additional costs? Refinancing your home loan will come with the same costs that your original home loan did – including loan application fees, mortgage discharge fees and possibly break costs.
• Do you have Lenders Mortgage Insurance (LMI)? Unfortunately, if you put down less than 20% deposit on your home and if your loan is not under 80% of the current market value of your property, you may have to pay LMI again. You can’t transfer the existing LMI to your new loan.

To summarise, if you took out a home loan during 2019 or earlier, and your loan provider hasn’t passed on the most recent RBA cuts to you OR if your home loan interest rate doesn’t start with a 2, you’re probably paying more than you should be!

Why do homeowners looking to refinance their mortgage choose LiveInvest?

• Fast Approvals: It’s always a competitive market when you’re a homeowner looking to refinance their mortgage and time is one of the most important factors in your home success. We get results as quickly as possible. With relationships with all major lenders, we’re able to fast track your loan and streamline the application process so that your loan can get approved fast.
• Convenience: You’re busy! And you work hard. Your time is valuable and LiveInvest ensures that you don’t spend time waiting at the bank to lodge your application. We’re also available to answer all your questions at a moment’s notice. And best of all – our brokers come to you! 
• Range: We offer a range of products that will suit the needs for every first time home buyer. Give us a heads up if there are certain details we need to be aware of to fit your situation and we’ll find an affordable solution for you!
• Relationship: Unlike your average broker, our refinancing service goes beyond the approval of your loan. We provide ongoing support to ensure that you continue to have access to the best finance solutions on the market! We’re always here to answer your burning questions.
• Network: We partner with the best local professionals and businesses no matter where you’re located!

If you’re a homeowner interested in exploring your options to refinance your mortgage, call us today at 1300 831 288!

The post Should You Refinance Your Home? appeared first on LiveInvest.

You hear the word ‘unprecedented’ thrown around a lot. It’s true that there are a lot of unprecedented challenges in the face of this pandemic, however, it’s also true that there are unprecedented advantages during this time – especially from the lens of a first time home buyer in Australia.

So… Is now a good time for first home buyers to get into the market?

There are two things you’ll want to ask yourself before you enter into this discussion with yourself or your partner. One: Do you have financial stability? You should have at least three to six months worth of savings should your area go back into lockdown and you’re unable to work. And two: Is your job secure during this pandemic? Some industries, like airlines, have been negatively impacted. But other industries, like tech, are mostly flourishing. If your answer to one or both of these questions is yes, then read on for why it could be a great time to get into the property market for first home buyers.

Low Interest Rates

It has never been cheaper to borrow money in order to pay off your mortgage. Low interest rates equal lower home repayments. This means that you could save tons of money over the course of your loan – in some cases, even hundreds of thousands of dollars. If you were already in the process of starting to think about buying a home for the first time, the pandemic has made interest rates even more appealing to first time home buyers.

Please keep in mind that when it comes to choosing your first time home loan, there are additional considerations you should be aware of outside of low interest rates. This is why it is advised that first time home buyers seek expert advice to ensure they maximise savings

It’s a Buyer’s Market

Buyers may have a better chance of negotiating a lower price than they would normally see for the home of their choice and rental prices are at an all time low so many people may be looking to shed investment properties. Because of this, there are some major deals to be had all over Australia.

Keep in mind that house viewings are still continuing, though some may have restrictions on the number of people. Make sure to stay on top of the latest COVID-19 restrictions for your state by visiting health.gov.au.

It’s also important to keep in mind that because of COVID-19, many lenders have strengthened their lending criteria. Each lender will have a different approach to assessing your loan application, so LiveInvest is a great resource for you to speak with a professional who is aware of the ebbs and flows of the current market or to organise a home loan pre-approval for you.

The Government’s 2020 First Home Loan Deposit Scheme

Buying a first home is a huge step. Saving for a house deposit is usually the most daunting part as most lenders require a 20% deposit, but that just got easier because of the First Home Loan Deposit Scheme.

The First Home Loan Deposit Scheme allows first home buyers to pay a deposit as little as 5% while avoiding lenders mortgage insurance (LMI) to help them buy their first home sooner. Read more for further information including eligibility criteria.

Don’t qualify for the scheme? Check out the First Home Owner Grant.

First Home Owner Grants or ‘FHOG’ is a program that the government introduced a little over 20 years ago in order to offset the cost of GST on first time home buyer’s homes. In short, the FHOG is a scheme that’s meant to make the cost of homeownership more affordable to Australians that are first time home buyers. 

Use our mortgage affordability calculator to figure out what your loan repayment might look like.

Why do first time home buyers choose LiveInvest?

• Fast Approvals: It’s always a competitive market when you’re a first time home buyer and time is one of the most important factors in your home success. We get results as quickly as possible. With relationships with all major lenders, we’re able to fast track your loan and streamline the application process so that your loan can get approved fast.
• Convenience: You’re busy! And you work hard. Your time is valuable and LiveInvest ensures that you don’t spend time waiting at the bank to lodge your application. We’re also available to answer all your questions at a moment’s notice. And best of all – our brokers come to you! 
• Range: We offer a range of products that will suit the needs for every first time home buyer. Give us a heads up if there are certain details we need to be aware of to fit your situation and we’ll find an affordable solution for you!
• Relationship: Unlike your average broker, our first time home buyer service goes beyond the approval of your loan. We provide ongoing support to ensure that you continue to have access to the best finance solutions on the market! We’re always here to answer your burning questions.
• Network: We partner with the best local professionals and businesses no matter where you’re located!

If you’re a first time home buyer and are interested in exploring your options, call us today at 1300 831 288!

The post Is the middle of a pandemic a good time for first home buyers? appeared first on LiveInvest.

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