The Secret to finding a Suitable Pharmacy Loan

Are you a recent graduate, associate or even a seasoned pharmacist looking to buy a suitable pharmacy that meets your needs? Do you need finance for it? Then a pharmacy loan, if structured correctly can meet your needs.

A pharmacy loan will assist you when you are looking to:

>>Buy your start-up pharmacy practice;

>>Acquire another pharmacy practice;

>>Expand or remodel your existing pharmacy practice;

>>Purchase equipment for your pharmacy practice, including fit outs; or

>>Refinance your existing pharmacy loan.

Your Pharmacy Loan Checklist - Here is a brief list of things you should consider when you are looking for a suitable pharmacy loan to meet your needs:

1. Create a Suitable Due Diligence/Business Plan and Budget

As with any large financial decision you will make, it is extremely important that you work out your budget. You should look at your overall financial position, before you start seeking finance and this means:

>>Establishing a suitable due diligence/business plan;

>>Establishing a suitable budget, whereby you prepare a list of all your assets as well as your expenses and outgoings. You can do this by using a Budget Planner calculator ; and

>>Calculating how much you may be able to borrow by using a Borrowing Power calculator .

2. Arrange for Pre-Approved Pharmacy Loan

You should arrange for pre-approved pharmacy loan as it will give you the peace of mind knowing that:

>>You will have the upper hand when negotiating the sale price of the pharmacy practice with the vendor, real estate agent, etc.

>>You will have a clear picture of what the affordability and borrowing limits are;

>>Your pharmacy loan request has already been pre-approved by the lender/credit provider; and

>>You will know the conditions of your pre-approval.

3. Understanding the Features and Benefits of a Pharmacy Loan

There are many features and benefits that you need to consider when looking at a pharmacy loan, these include:

>>The amount of loan you require to finance the development of a new pharmacy or the purchase of an existing pharmacy location, etc;

>>The term of the loan required;

>>Structure of the loan (i.e. Fixed/Variable/Interest Only);

>>Interest rate;

>>Provision for redraw facility; and

>>Early repayment provisions (i.e. exit strategy).

Seek Expert and Professional Advice

Your needs as a pharmacist are unique and can at times be complex. But, you must not worry about obtaining a pharmacy loan. You can seek the support of a dedicated and professionally qualified finance broker who specialises in providing assistance to pharmacists seeking a loan. He/she will understand your situation and help you in obtaining a suitable pharmacy loan.

Singh Finance is a reputed Australian finance brokerage firm that employs a team of dedicated and professionally qualified finance brokers. Our team will help you obtain pharmacy loan quickly. Call on 0424 190 908 or enquire online now.

Home Owner-Occupants are now becoming the New Prime Customers for Banks

The Australian Prudential Regulating Authority (APRA) has warned Authorised Deposit Taking Institutions (ADIs) including banks to slow their investor lending growth to less than 10 percent a year. APRA has also advised that this is a benchmark, not a cap. This decision by APRA is seen as a "boon" for home owners (also known as owner-occupants or owner-occupiers) who are looking at getting into the property market and who are considering paying off a mortgage on the house they live in.

These owner-occupiers will become the new prime customer for the banks. So, now is the best time for them to get an owner-occupied home loan. Owner-occupiers will enjoy cheaper loans than property investors and this will mean that they will get bigger interest rate discounts on loans. So, if you are an owner-occupier, you should consider this situation as being a good opportunity to get your finances in order.

Making the decision to buy a home, that you intend to live in, is indeed a very exciting prospect. However, understanding your finances is equally exciting and in fact, much more important. So, before you consider taking advantage of the bigger interest rate discounts, here is a list of how you can start to get your finances in order:

>> Set your financial goals;

>> Know your finances and your budget inside and out, by using a budget planner calculator

>> Prepare a list of all your assets as well as your expenses and outgoings;

>> Calculate how much you might be able to borrow by using the borrowing power calculator

>> Research all the types of owner-occupied home loans, so that you can explore the numerous options available to you ;

>> Find out how much your repayments would be for the loan;

>> Familiarise yourself with the First Home Owners Grant (FHOG) and other types of assistance available from the Government as it may give you an extra cash injection and help you make your purchase sooner. For more information simply click on http://www.firsthome.gov.au;

>> Depending on which state or territory you live in, you may also be entitled to Stamp Duty rebates or exemptions. For more information simply click on http://www.firsthome.gov.au; and

>> Ask for your finance to be pre-approved as it will put you in a stronger negotiating position with the vendor or real estate agent.

An owner-occupied home loan/mortgage will most likely be the largest financial commitment you will ever make. So, you need to ensure that you are taking all the necessary steps.

If you think it is too difficult to get an owner-occupied home loan, you should take help of a professionally qualified finance broker, who has a thorough knowledge of the credit policies and standard requirements of owner-occupied home loans and who is also a home loan expert.

A finance broker will help you to:

>> Determine your borrowing needs and ability;

>> Select an owner-occupied home loan suitable to your circumstances;

>> Manage the process right through to settlement.

So, don’t waste any time in dreaming about your perfect home. Obtain an owner-occupied home loan in Sydney and make it a reality.

How to know if Home Loan Refinance is a Good Decision for me?

If you are a home-owner, refinancing is something that can come along as either an opportunity or a necessity. But, whichever one it is, it is a big decision that will require a lot of thought and research. Many people are aware that refinancing is an option but are confused about:

•Where to start; or
•Whether it is the best path to take.

So, if you are considering refinancing your home, here are a few basic questions you need to ask yourself:

Question 1 - Why do you want to refinance?

Before you do anything at all, you must first evaluate the reasons behind your desire to refinance. To help you, here is a list of reasons why you might be considering the option to refinance:

You may want to lower your monthly payment

Sometimes interest rates drop, and you might find that you can refinance in order to lessen your monthly mortgage payment. However, you might have a problem if you owe more than your house is worth. You may also want to make sure that your interest rate won’t be higher as the result of your lower monthly payment.

You may want to lower your total costs

Sometimes refinancing can be the best way to pay off your home loan faster. As you pay less interest by refinancing, you can lower the overall cost of your home loan. If you are eager to pay off your loan quickly, be careful. It is because refinancing to a shorter term loan might also increase your monthly payment—in which case it may not be worth it.

You may want to switch interest rates

Switching from a "variable" interest rate to a "fixed" interest rate is one reason to refinance. This can make your mortgage payments simpler and easier to manage in the long run as the interest rate will remain unchanged for a fixed period. Also, switching to a fixed interest rate can also protect you against any potential interest rate rises.

You may want some cash-out

This type of refinancing option involves using the equity in your house to enable you to get cash for other purposes. If the reason for refinancing your home loan is to get cash-out, then make sure that your new mortgage is still affordable, and that you are seeking the cash-out for an essential reason, otherwise you may run into serious trouble in the long run.

Question 2 - What will it cost you?

This is probably the biggest question that you may ask yourself about refinancing. When it comes down to it, you need to be aware of all of the potential costs before you can make a proper decision. Once you have considered all of the possible outcomes, you can then make a well-informed decision. If you are looking to cash out, your purpose is to get more money immediately, so it will obviously cost you a little more in the long run.

So, if you are looking to save some money and you may want to avoid any fees where possible, then here are some aspects of refinancing that may cost you money:

Penalties

Check out the fine print on your current mortgage. If you are not sure what it means, have an expert finance broker or solicitor look at it. There is a chance that there may be some penalties involved for paying off your home loan early. If this is the case, it might not be cost-effective to refinance.

If you owe more than your house is worth

Houses can decrease in value. If you owe more than your house is worth, you might end up having to pay the difference yourself, and that may make refinancing a less attractive option.

Question 3 - How long are you going to stay in your home?

A lot of your decision-making will depend on how long you intend to stay in your home, such as:

• If you intend to move in a few years, then refinancing with a "variable" interest rate mortgage loan may be a good option or not refinancing at all may be the best choice for you.

• If you intend to stay in your home for a very long time, a variable interest rate home loan might not be the best idea. But, refinancing your home loan in Australia to a "fixed" interest rate home loan may help you in the future.

Question 4 - What do you do now?

So, you have now weighed up all of your options and you know for certain that you want to refinance. What do you do now?

First, you need to make sure that you will be able to refinance. This means:

• You will need a good credit score;

• You will need to ensure you have enough "equity" in your home (i.e. this might be 10 or even 20 percent of your home’s value); and

• You will need to have proof of a good source of "income" and steady "employment".

After you have considered all of the above, you should check your current mortgage for any possible penalties for paying it early, and make sure that the penalties will not outweigh the benefits of refinancing.

Next, seek expert and professional advice from a qualified "finance broker" who will:

•Have access to interest rate comparisons;

•Be able to show you the long-term savings benefits; and

•Be able to confirm if these savings outweigh the short-term costs.

Refinancing helps you lower your home loan cost and ensures maximum savings. Do not get overwhelmed by the complicated refinancing process. You can contact an expert finance broker to help you.

How to improve your Credit Score before getting a Home Loan?

One of the best ways to improve your chances of getting a home loan is to improve your credit score. It is because better credit scores may give you access to better interest rates and more beneficial home loan products.

Here is a list of some quick tips to help you get the best possible credit score. While there is no guarantee that all of these options will immediately boost your credit score, they may help you establish habits that will strengthen your credit score.

Show you can pay your bills on time, every time

Lenders/credit providers will want to see that you can repay a home loan on time. So, here is a list of bills that you should pay on time, every time:

>>Your credit cards;

>>Your rent;

>>Your medical and utility bills; and

>>Any other service that may use a collection agency for the recovery of delinquent accounts.

If you miss a payment date by a few days, call the service provider immediately to make the payment, and don't be afraid to ask the provider for a one-time forgiveness.

Check your Credit Rating

You should regularly check your credit report with a credit reporting agency (such as Veda Advantage and Dunn and Bradstreet), as it will:

>>Give you an idea if you have any defaults or negative repayments history recorded in your report;

>>Give you time to get the credit report corrected before a lender/credit adviser accesses your report; and

>>Enable you to verify your credit score with a credit reporting agency.

Note: You should be aware that due to the changes in the Privacy Act in March 2014, lenders/credit providers have the ability to access your credit reports and can see the past 24 months of your repayment history.

Maintain your Available Credit

Before applying for a home loan don't open any other credit cards or lines of credit. It is because lenders/credit providers will see you as being a risk if you suddenly take out loans for cars, electronics, furniture, etc.

Also, refrain from closing your credit cards or other lines of credit. Instead, consider paying off your balances as a lower debt will improve your debt-to-credit ratio.

This is best illustrated by the following example:

Having a total debt of $4,000 with a $20,000 available credit will look better than having just $500 in debt with $800 available credit.

Establish a Savings History

If you are borrowing more than 80 percent of the purchase price of the property, you will be required to meet the "genuine savings" requirements of lenders/credit providers. Your savings will need to add up to around 5 percent of the purchase price of the property.

For example, on a purchase price of $700,000, you will need to have savings that add up to $35,000.

Note: Saving a larger deposit should help to reduce or avoid paying "Lenders Mortgage Insurance" (LMI) and you may even be offered a more competitive interest rate by the lender/credit provider.

Avoid applying with too many Lenders/Credit Providers

Avoid submitting your home loan applications to several different lenders/credit providers at once. It is because these loan applications will appear on your credit report. You should only submit your home loan application:

>>After you have compared lenders/credit providers; and

>>After you have decided to go with a particular lender/credit provider.

Your Employment Stability

If you have had the same job for several years, then this is a big tick. So, prior to applying for a home loan, try to establish a stable employment history as it will enable you to make regular loan repayments.

If you have changed your job recently, do not worry. You may satisfy the requirements of lenders/credit providers, if:

>>You have been in a similar role; and

>>You have been in the same industry.

Disclose all Information

Lenders/ credit providers may think that you have other debts that have not been disclosed. So, always be upfront and disclose all information as non-disclosure of relevant information may result in your home loan application being declined.

Seek Expert and Professional Advice

All these tips should help you to improve your credit score. However, you should speak to a professionally qualified and expert finance broker who can help you to create a personalised credit improvement plan. Establishing this relationship with a finance broker will help you to determine which potential lender/credit provider best meets your needs.

All the Best!

Buying a Home is now possible for People with Bankruptcy

If you filed for bankruptcy, because, you were advised to do so by a business person such as a solicitor, you may have realised that: 

>> Bankruptcy can stay on your credit file for up to 7 years; and 

>> Bankruptcy can come back to haunt you when you are trying to get a home loan or refinance your existing loan from one of the major banks. 

But, do not worry if you are a discharged bankrupt looking for a home loan or considering refinancing an existing loan, you can still get loan approval. 

Fortunately, there are now a range of “specialist lenders” that cater specifically to this “niche” and are willing to offer home loans or refinance existing loans to people with discharged bankruptcy. Although these loans can come with: 

>> A higher interest rates compared to regular home loans; 

>> A higher percentage of deposit (i.e. rather than the typical 20 percent, you may need more); and 

>> A fee that may be charged on top of the interest rates. 

What to consider as a Discharge Bankrupt when applying for a Home Loan or a Refinance Loan?

If you are a discharged bankrupt, here is a list of things you should keep in mind, which the specialist lenders may require and more importantly can help you get a home loan after bankruptcy or a refinance loan: 

>> They may require you to provide a sound and transparent explanation regarding the situation that led you into bankruptcy (e.g. critical illness, financial difficulty, etc.); 

>> They may require you to provide evidence as part of your home loan or refinance application process, to indicate that this bankruptcy was a one-off situation, and that it was well beyond your means to avoid; and 

>> They may require you to provide evidence to substantiate that all your financial affairs are now conducted in an excellent manner (e.g. if you are paying rent, are you able to produce a rental ledger to show that your rental payments are being paid on time). 

It can also benefit your loan application process. If you can demonstrate to the “specialist lender” that you have a minimum of unsecured liabilities as is possible. 

What types of Home loans are available to Discharged Bankrupts? 

 

This will depend on the “specialist lender” you choose. Here is a list of loans you can consider: 

>> Basic Home Loans: These are standard home loans that are often considered a no-frills loan. They usually don’t offer additional extras or flexibility in paying off extra on the loan or varying your repayments

>> Low Doc Loans: These are low documentation home loans for people who are unable to supply required proof of income, such as recent tax returns or other financial documentation at the time of the application. They are usually ideal for self-employed individuals or contractors. 

Truly, when your credit has been damaged following a bankruptcy, you have to be more cautious when it comes to your finances. You should take help of a professionally qualified finance broker, who has a thorough knowledge of the credit policies and standard requirements provided by the “specialist lenders”.

Short-Term Business Loans are the Perfect Solution for when your Business Needs Urgent Cash

You may be like most small to medium-sized business owners who often need urgent working capital or cash flow. If you find your business doesn't qualify for a traditional business loan from a traditional financing institution, you might still be able to obtain finance in the form of a short-term business loan.

What are Short-Term Business Loans?

Short-term business loans will provide your business with a suitable funding alternative to traditional business loans provided by traditional financing institutions. Here is a list of reasons why short-term business loans can benefit you:

• You will be able to meet you urgent needs for financing, without requiring you to make a long-term debt commitment; and

• You can choose a maturity date of one year or less.

Short-Term Business Loan Purposes

Here is a list of reasons how the loan package can help your business:

• Short term business loan for working capital can help you to cover any temporary deficiencies. So, you can meet your payrolls and expenses;

• They enable you to meet any immediate and urgent expenses, particularly if your business is seasonal in nature;

• They enable you to create and manage start-up businesses and pay for any start-up business costs;

• They enable you to take advantage of any business growth opportunities and when you have to move quickly; and

• They enable you to look at any acquisition or expansion opportunities that can arise suddenly, and you need to respond immediately and provide immediate cash.

Traditional Business Loans may not always be the Best Solution for you!

Here is a list of common frustrations that many small to medium-sized business owners have when looking at traditional business loans:

• They are often made for as long as ten years;

• They often require mountains of documentation and financial statements;

• They have a rather long waiting period before you receive an approval;

• They can take weeks or even months before funding is received; and

• They have a rather high decline rate for small businesses.

So, short-term loan for small business is ideal for business owners who have recently started a business, want a smaller loan term or don’t want to get involved in a huge documentation process.

Taking help of Experts

Ensuring you have the right finance structure in place is vital for you. So, you should seek expert and specialist advice from a business finance expert who has adequate knowledge of the credit policies and the standard requirements for obtaining short-term business loans. You should also seek independent taxation and accounting advice regarding the treatment of depreciation and any tax advantages that may be available to you.

Truly, short-term business loans are a very efficient and cost-effective source of urgent finance. So, next time your business faces cash crisis, do not worry. Simply contact a finance broker who will help you in obtaining the loan package of your choice.

Medico Loans for buying Property - A Great Solution for Medical Professionals and Doctors

I am a General Practitioner. Is it possible for me to obtain a loan to buy a converted residential house to use as my practice premises?

Dr Alex (General Practitioner)

Hi Dr Alex,

It is a very interesting question asked by many medical professionals, medicos and doctors. To attract medical professionals and to fight competition, specialist lenders/credit providers have developed an amazing loan package called "medico loan" (also known as "medico pack" and “loan for doctors”). The loan package can help you in buying a converted residential house to use as your practice premises.

If you are a medical professional like Dr Alex, you can also take advantage of the medico loans and start your practice. Before you apply for medico loans, you must know everything about it so that you make a wise decision. So, let’s start.

The Purpose

Amedico loan has many purposes. However, you should keep in mind that refinancing of working capital, equipment finance and all other business related purposes are excluded from the loan package. In addition to buying a converted residential house to use as your practice premises, you can also use a medico loan to:

• Purchase residential properties (owner-occupied and investment property purchase)

• Refinance existing home loan

• Consolidate your debts, or

• Obtain cash out (Equity Release)

Special Discounts and Benefits

Medico home loans have been specifically developed to offer doctors with a number of special deals and discounts. Here are a few of the special discount deals and benefits provided to medical practitioners:

• Confirmation and validation of 5% genuine savings is not required

• A maximum Loan-to-Value Ratio (LVR) of 90% may be approved without Lenders Mortgage Insurance (LMI)

• Discounted interest rates

• Easier loan approval - even for the typical "hard loan proposals"

• Discounts on Lenders Mortgage Insurance (LMI) premium or even no LMI

• No Set Up cost or Application costs

• No valuation

• Special interest rate for family members, and

• Easier cash out (Equity Release policy)

Eligibility Criteria

Here is a brief list of medical professions who can choose a medico loan pack and get all the special discount deals and benefits:

• Doctor of Medicine

• Surgeon

• Hospital - Employed Doctors (Intern, Resident, Registrar, Staff Specialist)

• Dentist

• Chiropractor

• General Practitioner

• Optometrist

• Radiologist

• Veterinary Practitioner

• Physiotherapist, and more

Income Documents and Employment Verification Requirements

Income documents are standard, and you only have to provide copies of the most recent tax return for both, established self-employed medical professionals and PAYG medical professionals. And, you only have to provide copies of the following employment documents:

• Your University degree or qualification, or

• Your Registration with the Medical Practitioners Board of Australia or equivalent body

Tuly, lenders/credit providers have made loans simpler for medical professionals by providing medico loans. So, don’t worry about obtaining a loan package for establishing a private practice.

Singh Finance is a reputed Australian brokerage firm. It will help you in obtaining home loans for doctors. Don’t worry if you do not have all the loan documents ready. You can obtain low doc home loans easily. Call on 0424 190 908 or enquire online today.