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.

Perfect Guide for getting Pharmacy Loan

Every pharmacist dreams of starting a pharmacy. And, Australian lenders are giving wings to this dream. They have made financing so simple that a recent pharmacy graduate or even an associate can start his pharmacy without any trouble.

What is the Use of Pharmacy Loans?

The main objective of pharmacy loans package is to ensure growth of your business. It can be used for several purposes. Few of them are listed here:

• Buy your start-up pharmacy practice

• Acquire another pharmacy practice

• Expand/remodel your existing pharmacy practice

• Purchase equipment for your pharmacy practice, including fit outs

• Refinance existing pharmacy loan

Eligibility Criteria for Pharmacy Loans

Pharmacy loans solutions are offered by lenders to:

• Recent graduate

• Associate, or

• A seasoned pharmacist

Understanding your Financial Situation

Buying a new or existing pharmacy premises or pharmacy equipment is not a simple task. You need to consider several aspects and then make a profitable decision. Here is the list of things that should be considered before applying for a low rate pharmacy loan:

• Business opportunities

• Your overheads and running expenses

• Amount and term of the pharmacy loan

• Structure of the loan (Fixed / Variable / Combination / Interest only content)

• Expected interest rate

• Redraws, and

• Early repayment provisions (i.e. Exit Strategy)

Importance of a Finance Broker in getting Pharmacy Loans

Every financial decision should be made after meticulous planning. Most pharmacists don’t have adequate finance knowledge. So, it is wise to work out your business plan with a qualified and experienced finance broker. You should sit down with a finance broker and:

• Look at your overall financial position

• Establish a suitable Due Diligence/Business Plan, and

• Create a Budget

A qualified finance broker will advise you and provide financial knowledge of pharmacy business. He will help you in eliminating options that are beyond your budget and save your valuable time. If you employ a brokerage firm, you won’t have to run around from lender to lender on your own. The loan experts will understand your needs and present you with a number of loan options. He will also help you in choosing the best pharmacy loan package.

Truly, having a loan specialist will make pharmacy loans simpler for you. So, next time, you want a loan for your pharmacy business; don’t forget to employ the services of a finance broker.

A pharmacist can start his pharmacy business with Singh Finance. The brokerage firm offers pre-approval on pharmacy loans as well as provides cheap finance for equipment purchase. Contact on 0424 190 908 or enquire online now and, the firm’s expert finance brokers will assist you in finding the perfect pharmacy loan solution.