Money Archives - Focus Property Wealth - Perth Mortgage Broker

How to beat the urge to splurge

glennadmin — Wed, 22 Nov 2017 02:39:34 +0000

Christmas is just over the horizon and decorations are already starting to appear at the local shops. It’s a time of year where it’s almost common practice to splurge so it is time for a Christmas budget ! Marketers are all working hard to encourage you to buy, buy, buy and you may have already picked up a few things for yourself and to put under the tree for family and friends.

It’s easy to resort to “retail therapy” when you need a bit of a pick-me-up, and it’s also easy to overspend on gifts amidst all the excitement of Christmas. But what will really give you a thrill and a sense of satisfaction is reaching your savings goals and using the money to buy an asset that will help you grow your nest egg even further (like a house) and that is where a Christmas budget can help. Here are our tips for beating the urge to splurge this Christmas.

Establish a Christmas budget

The most valuable thing you can do for your bank balance this silly season is to create a budget and stick to it. This is especially important if you are buying Christmas gifts.

Write down all of your income and expenses and set an amount for regular savings. Once you have a budget in place, you’ll know your spending limits, and how much you can afford to spend on things like Christmas presents or summer holidays. You’ll also be able to establish good savings habits – something that’s vitally important when the time comes to apply for a home loan. When creating your budget, set yourself short-term savings goals to stay motivated, plus long-term goals to set your sights on where you want to be financially.

There are plenty of online tools to help you create a budget. You could use a simple Excel spreadsheet or a budgeting app. Wally, for example, allows you to manually log your expenses and store pictures of receipts in a virtual budget journal. The app alerts you when you hit your savings goals or when a bill is due. TrackMyGOALS allows you to set, plan, track and manage your savings goals (we’re thinking a new home could be a goodie!).

Think outside the box

If you want to avoid splurging, you need to think outside the box and make a fun game out of finding ways to save money. The key is to challenge yourself to find ways to feel good without buying stuff you don’t really need. If you’re feeling blue and needing some “retail therapy”, do some exercise instead or head to your local park. The endorphins and fresh air will do you a world of good!

When it comes to Christmas gifts, simple home-made presents can potentially save you a load of cash. Get creative! Make some yummy treats and jazz them up with some pretty wrapping. Get a professional photo done and buy some frames in bulk at wholesale prices. Don’t be shy about ‘re-gifting’ anything you don’t need, just give it to someone else who may enjoy it. The options are endless!

Avoid temptation

It’s important to know your spending triggers and to keep them in check to avoid impulse shopping. If you’re a fan of online shopping and find yourself gravitating towards those advertisements on Facebook, perhaps take a hiatus from social media during the silly season and ‘unlike’ your favourite shopping sites, your Christmas budget can keep you on track.

Similarly, if you find yourself being tempted to buy things for yourself when you’re out and about buying Christmas presents for your family, it’s wise to avoid shopping centres. After all, if you don’t see those killer shoes in the shop window, you won’t know what you’re missing out on. If you have to go out to buy Christmas gifts or essentials like groceries, write yourself a shopping list and take cash with you. By keeping your credit cards safe from yourself (and locked in a drawer at home), you’ll spare yourself a spending hangover.

If you’d like to explore your home loan options, we’d love to hear from you. Even if you don’t have a huge deposit saved, we may still be able to help you, so please don’t hesitate to get in touch. Remember, you’ll need a good savings history if you are planning to buy a property, so resist the urge to splurge this Christmas! Make some savings goals, change your spending habits and set the wheels in motion for a splurge-free future today!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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What is the best time of the year to sell your home?

glennadmin — Tue, 31 Oct 2017 01:10:07 +0000

When selling your home, your main objective is to get the best possible price. So when should you put it on the market? Does the time of year make a difference? The answer is that it depends on the property itself. The time of year can make a difference in some cases, however the location and how the property market is performing are important considerations too. In this article, we’ll take a look at some of the most important seasonal factors that you should consider when deciding to sell your home.

Spring

Spring is traditionally the most popular time of year to sell a property. It’s the season for new beginnings, when buyers spring into action (pardon the pun). Homes and gardens often look their best in spring too, which may drive up the sale price in some cases.

However, spring may not necessarily be the best time of year to sell for everyone, particularly if your property is an established home or located in a city or metropolitan area. Whilst spring may bring increased buyer demand, it may also mean many more property listings in the area your home is located. If there are many properties similar to yours on the market, that could mean lower prices.

Summer

If your home is located in a popular summer holiday destination, summer could be the best time of year to sell. Holiday-makers could potentially be your best market audience!

Properties that are particularly cool may also be more attractive from a selling point of view in summer. Depending on where your property is located, there may also be fewer properties on the market to compete with so it could help you to achieve your price. However, be careful about selling in December or January, when people are generally winding down and preparing to relax over the festive break and summer holidays. If your property is located in a city location, or its market audience is families with school-age children, there will be fewer buyers on the inspection circuit.

Autumn

Autumn is another popular time of year to sell, with auction activity usually red hot just before Easter. Many prospective home buyers hit the open house inspection circuit at this time of year, hoping to find a new home and get it settled before the cold weather arrives. Again, consider your location and check out what other properties are on the market to see how much competition you’re likely to encounter.

Winter

Your home’s key drawcards could influence when to sell. For example if it has an amazing fireplace or a fantastic underfloor heating system, it may be more appealing to buyers in winter. Likewise, if your property is in the snow-fields or an area that is popular for winter sports, winter could also be the best time to sell. West-facing properties tend to receive more sunlight around this time, and this could make them more appealing in winter than at other times of the year.

Another advantage of selling in winter is there may be fewer listings to compete against, which could drive up competition amongst buyers and lift prices, depending on the area where your property is located. Properties in popular locations often sell quickly all year round.

Don’t forget to consider market conditions

In addition to seasonal factors, it’s important to consider local property market dynamics, specifically supply and demand. If there is an oversupply of properties on the market, it may be best to wait it out until conditions change. The best option is to choose a time when stock levels of properties that are similar to yours are low.

If it’s a ‘buyer’s market’ as exists in Perth – a time when there are more properties available for sale than there is buyer demand - there may be no ‘best’ time of year to sell. It may even pay to rent the property out for a while until the market warms up. Check out the latest REIWA market update for the WA market.

Alternatively, if there’s not enough housing stock to meet demand and it’s a ‘seller’s market’ - as has been the case in Melbourne and Sydney - you’ll likely be able to negotiate harder and push up the price. Other influences such as new developments, changes to the first home buyer grant or stamp duty, and interest rate fluctuations can also affect supply and demand, so it’s worth talking to us about these factors.

Do your research and ask for advice

When it comes to selling your home, it’s best to take all of these factors into account, along with your personal circumstances. Your local real estate agent is a great source of information about when to sell, or you could ask us for a free market appraisal report. It’s always wise to do careful research when buying or selling a home, so please don’t hesitate to ask us for help. If you are looking to sell your home and purchase a new one, please speak to us about your finance options as we’re here to help you find the right loan for your financial circumstances and goals. We usually recommend that you try to sell before you buy if possible, so you know how much money you can budget for your next home purchase. However, if you do require bridging finance to tide you over, we can also help you with a competitive option. Please get in touch today – we’re always happy to help!

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

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Is your Interest Only Loan the best for you?

glennadmin — Fri, 06 Oct 2017 08:19:39 +0000

The last 12 months have seen a lot of changes to interest rates on home loans and investment loans and more recently interest only loans getting the regulators attention. Now is the time to review your loan to see if you can reduce your loan rate and perhaps even pay it down faster.

What is with all the interest rate increases this last year?

If you have not noticed already you will soon as most of the banks have made changes to their interest only loan policy and their interest rates because of limits put in place by the banking regulator - APRA. This has lead to a far more complex lending environment and as mortgage brokers, we are able to look to the broader lending market to choose the right loan for our clients.

APRA had this decision because:

Australia had a high level of interest only loans, this is a risk for them and our housing market.
Few borrowers are aware just how much more interest they’ll pay with an interest only loan.
There are many people making interest only repayments even though it’s no longer suitable for them.

So it is time to ask the question, is it time to reveiw your current loan(s) and how they are structured?

Questioning your loan leads to great recommendations

At Focus Property Wealth we use a few simple questions to determine if interest only repayments are suitable for you, our clients. When considering what is important to you , items to consider:

A lower rate or lower repayments?
Higher borrowing power or a lower rate?
Do you need to reduce your repayments in the short term?

If a lower rate or a higher borrowing power is more important to you you, then you should probably be paying Principal and Interest loan repayments.

Owner occupied loans with interest only repayments

As a general rule, this is no a suitable option for most clients and you should only consider this if there’s a good reason to do so or perhaps a short term solution such as when construction a new home whilst renting/living somewhere else.

For example, at Focus Property Wealth we may consider interest only for a home loan if the our clients required repayment flexibility due to their business cash-flow, or if they wanted to keep their funds on standby in an offset account in case of emergencies, or if they wanted to invest their excess funds.

If you are not financially sophisticated or do not have a good handle on your household spending then it’s dangerous. you would be unlikely to benefit from interest only repayments and potentially may not pay off your home loan at all.

Investment Property Loans are currently not desirable to the banks.

Investment loans, particularly interest only investment loans, are currently not in favour with the banks and as a result of APRA's requirement they have increased the rates of these in the last year considerably over and above any reserve bank movements. With this in mind you may consider specialist lenders as well as major ones if you’re going to meet the needs of reducing your loan costs.

What do the numbers say?

Let’s say one of your loans is $500,000 investment loan at 5.1% for 5 years interest only with repayments reverting to principal and interest after this (however most investors renew the interest only period after this). Consider an alternative loan of $500,000 investment loan at 4.3% principal and interest over 30 years.

Firstly the repayments for the interest only loan are $2,125 / month during the interest only period whilst the repayments will be $2,475 per month if the same loan is P&I at the much lower interest rate. Although the regular repayments are higher on the P&I loan the actual interest charged each year is $4,500 less and you will now be reducing your loan balance.

Paying P&I, the customer would make total payments of $890,768 whereas, with a 5 year interest only period they’d pay $944,312. That’s a whopping $53,544 in additional interest! This is conservative as we have assumed after the 5 years they have renegotiated the loan down to the 4.3%. Few customers are aware of just how much more it will cost them.

So although the repayments are higher initially if the loan reverted to P&I after the first five years for the remaining 25 years the repayments would be even higher. Again few customers are aware of this and even fewer consider the effect that this will have on their cash-flow.

What about borrowing power? If a single borrower with an income of $100,000 takes out a home loan, then they can borrow around $620,000 with P&I repayments or $585,000 with a 5 year interest only period. The reason for this is the banks look at serviceability over that remaining 25 years (after the interest only period expires) and so the required repayment amount they allow for is higher. It’s not a huge deal, only a 6% difference however for customers with multiple properties, it can have a much bigger effect.

Existing customers on an Interest Only Loan?

Should you refinance your loans to the cheapest interest only loan available if your not happy with your bank? Probably not as variable rates can be changed at any time, so what’s to stop the new bank putting their rates up?

That means it’s may be time to pay P&I on your investment loan. I know it is against many of the historical property investment books but they were written before this massive difference in interest rates existed and we think it is time to rethink how things are done and consider ditching the interest only loan.

Interested in reviewing your circumstances? Drop us a line or CONTACT US HERE and we will have a quick chat so see if we can add value to your circumstances and get you to your goals much faster.

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5 Ways to pay your home loan off years earlier with no additional repayments!

glennadmin — Mon, 14 Aug 2017 04:59:35 +0000

PART 1 - The Scenario.

Have you ever wondered how some people seem to get ahead to pay their home loan down whilst others struggle from pay to pay and yet both generally have similar incomes?

I see this a lot and then I am privileged to be able to drill down deeper into our clients financial lives to see how they operate and find areas we can create efficiency in their finances. This may be the last thing you may want to do but I just love it because I know what this means to our clients to get on top of things..... It gives them the freedom to choose how to live their lives and what to do rather than being held back by a constant lack of money.

The Typical Scenario

I would like to take you through a typical scenario - As an example lets say John and Jenny have the following scenario:

A $400,000 home loan at an interest rate of 4.45% with 27 years left on the current loan term. Repayments with this home loan are currently $1,043 per fortnight.
In addition to this home loan they have a $20,000 car loan with an interest rate of 7.5% and fortnightly repayments of $184 per fortnight. This loan has 5 years left to pay this loan down to $0.
Currently their pay is deposited into a bank account with a balance of $5,000 currently, this account is used for all household bills and earnings a little bit of interest and is with a bank other than where the current home loan is.

This represents a fairly standard client scenario with the household income often equalling the household costs (including discretionary spending and those bills you just do not know what they are for) as most of us mere mortals spend what we earn without some form of control or indicator to let us know to stop spending in place. How to keep your household spending under control is a subject for another time.

"Ultimately the goal is to pay down all loans as soon as possible whilst allowing you to continue to live your life."

The idea is to increase the efficiency of the operation of all finances so the clients minimise the interest, fees and charges they pay the banks above the funds they owe. Ultimately the goal is to pay out all loans as soon as possible whilst allowing them to continue living their busy life and spend after tax money on things that really matter.

About Home Loans:

Although interest rate is not the only consideration in getting a home loan, if a client can save say $3,000 of interest cost per year they can reinvest these saved dollars back into the loan and pay the loan of years sooner.

What is the right bank choice?

There are literary hundreds of loan products to choose from with a range of features, fees and charges. Usually the correct loan comes down to two key items, the one that has the functional requirements of a client and also is the cheapest overall. Paying for extra features that are not being used is a waste of money so the right loan can be different for each client.

As an example three typical options offered to John and Jenny might be:

Bank A - Second Tier bank on their professionals package with an annual fee of $395 per year and package discounted interest rate at 3.85%, excellent package with 10 offset accounts available, credit card included in package and a very good ATM network. This option has not rebate offered to refinance however so costs to move will need to be factored in.

Bank B - a No frills basic home loan with a non-major bank, no annual, ongoing or setup fees. An interest rate of 3.94% and this product being no frills does not have an offset account or any package benefits.

Bank C - Professionals package with an annual fee of $395 per year and a packaged discounted rate at 4.04% with a major top four bank. This is an excellent package with 10 offset accounts available, credit card included in package and a very good ATM network. This option does have a refinance rebate under a special pricing approval of $1,250 to account for costs to move from the current bank. (actual costs are expected to be around $700 for John and Jenny so this rebate would put them in front).

So this is the Scenario, next is the solution.

Need help or have any questions?

Contact Us any time or visit Focus Property Wealth Website or call Glenn directly on 0433 212 444

About the Author - Glenn Biggins is the founder and director of Focus Property Wealth, a finance and property investment advisory firm with a focus on their clients goals and objectives. Glenn is an active property investor himself and has been investing in property through a number of property cycles; he currently owns a portfolio of properties throughout Perth as well as in other states in Australia.

Disclaimer

The advice provided is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice. This needs to have regards to your own objectives, financial situation and needs. Where quoted, past performance is not indicative of future performance.

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Questions to ask about your home loan

Focus Property Wealth — Sat, 29 Jul 2017 20:07:43 +0000

There’s a lot of benefits to using a mortgage broker and they can certainly help you speed up the process of property buying and your financial goals.

A good mortgage broker can assist you in choosing the right home loan for your current and future needs as well as answering all your questions.

Here’s some of the common questions we get asked here at Focus:

1. How will I know what loan is best suited to my situation?

When choosing a home loan, it's important to work out the features you need from your loan and how much it will cost you in fees. Do you need an offset account that can reduce the amount of interest you pay? Do you need a redraw facility in case you need to withdraw funds? A Mortgage broker can work with you to find the best loan for your situation.

2. How much of a deposit do I really need for a loan?

Generally it’s no longer possible to get a loan for the whole of a property’s purchase price. Most lenders will want you to put down at least 5% of the purchase price of the property. The rest - generally up to 95% - may be financed using a home loan. There are other solutions such as using equity from another home you own or even using your parent’s equity as security.

3. What impact will my credit cards have on my loan borrowing capacity?

We all get sent letters to increase our credit card limits and some even occur automatically. However these can have a big impact on your borrowing power.
For example a limit of $10,000 on a credit card can reduce your borrowing limit by up to $30,000, even with a good income and savings.

4. What fees will I need to pay with a home loan?

There may be a range of fees charged by your lender such as application, valuation and settlement fees. It’s important to ask your mortgage broker about these fees, especially if you are refinancing to see if it’s worth the switch.

5. What information do I need to give to get my loan?

A mortgage pre approval can be useful as an estimate of how much you can afford to spend on purchasing a home. Your mortgage broker will need a full disclosure of all your finances and history to be able to put you forward to a lender such as proof of income, your last 2 years tax returns, proof of asset ownership, your credit file (although your mortgage broker can access this on behalf of you), proof of employment (pay slips etc), bank statements and Id proof such as drivers licence and address.

6. Can I change my loan and interest rate at a later stage?

This depends on the loan product you have chosen. The time to lock in an interest rate on your loan depends completely on your personal circumstances and we work with our clients on this process.

7. What is Lenders Mortgage Insurance?

When lenders agree to a loan for a client, there is a small risk that they won't get the money back if repayments are not met. Although the house is used as security, if property values decline that security may not be enough to cover the outstanding loan when the lender comes to sell it.

This type of insurance protects the lender – not the borrower – in the event that you, the borrower can’t meet the loan repayments.

Please note Lenders Mortgage Insurance is not Mortgage Protection Insurance. Mortgage Protection Insurance insures the borrowers and can cover mortgage repayments in the event of unanticipated circumstances such as unemployment, injury, illness or death.

Communication is key when it comes to getting the best out of your mortgage broker.

Make sure you ask a lot of questions and tell your broker exactly what you are looking to achieve so that he or she can offer the best advice for you.

If you are thinking about buying a property, or refinancing speak to us at Focus Wealth today. Contact us today or call 6162 6577.

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Retire early Live off your property portfolio! Let rent supply your income!

Focus Property Wealth — Thu, 27 Jul 2017 06:50:37 +0000

We see these headings all the time in blogs and articles on property investment websites, but how do you actually retire early? How many properties do you need to own for it to be feasible to retire? What are the costs involved? And, does being leveraged up to your eyeballs work in your favour?

As more and more people realise that living off their superannuation and pension is going to create a shortfall in their lifestyle, many are turning towards property investment as a safeguard for their future. What we urge you to keep in mind that it is often not the number of properties you own that you need to consider but the cash flow that is generated or the equity it accrues.

It is better to own two high performing investment properties situated in growth areas with steady demand for rentals, than to own 4 that are not performing well and costing you money.

Smart, considered property selection will prove invaluable, which is why we recommend you get some professional advice before you jump into the property investment market.
Obtaining the right loan for your investments can save you thousands of dollars over the life of the loan, and often banks won’t divulge just how flexible they can be. By utilising the services of a mortgage broker, one who has years of professional experience in dealing and negotiating with banks, you can fast track your returns, and create financial security for your future.

Focus Property Wealth can not only source you the best possible loan for your investment properties but they can also structure a long term financial plan, outlining the steps you should take to achieve a profitable retirement portfolio, and are committed to providing the highest possible standard of service. We will advise you on the different strategies you can employ to secure your retirement, be it through creating positive cash flow, growing then liquidating your portfolio, or a combination of the two - growing then paying down the debt.

To become a successful investor, surround yourself with a team of professionals whose knowledge and experience are known, proven and trusted and who you can rely on to help you achieve your property investment goals and retire well.

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What Would you do?

Focus Property Wealth — Tue, 29 Nov 2016 08:58:06 +0000

A client came to us needing some advice. They had one mortgage with a chunk of it paid down and were looking to use the accrued equity. They were not sure what they wanted to do, whether to renovate the alfresco area or put in a pool. Or, should they use the equity to buy an investment property?

We sat with them and discussed their long-term goals. After thoroughly reviewing their financial situation we sat with them and devised a property plan that would give the highest returns on their investment. We suggested they invest in a low risk normal residential property, in a growth suburb with or near appropriate infrastructure that tenants value highly.

After finding a suitable property, our clients purchased it, and within two years had enough equity in that property to complete the desired renovations on their own home. They were ecstatic. They are on track to contribute to their retirement nest egg through property investment.

Focus Property Wealth can help with loan structuring, looking forwards to retirement goals as well as provide property reports to help with purchase negotiations. Glenn and his team are personally experienced long term property investors in residential tenanted villas or houses through out Australia.

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Tips for saving a deposit in 4 simple steps.

Focus Property Wealth — Tue, 29 Nov 2016 08:49:01 +0000

See us for a financial assessment - This allows us to organise a loan pre-approval for you and determine exactly how much savings you need for your deposit. We also determine whether you are eligible for the First Homeowners Grant.
Create a budget - this is key. Start with using a small notebook and, for a week, keep note of whenever you spend money. You then use this to see where and how you can start to budget. This will probably include: eating out less often, bringing lunch from home, cutting down on the coffee spend etc. There is also some great resources on the government's MoneySmart website.
Save your income tax returns in separate bank account – by keeping it separate from your normal spending/transaction account you are less likely to spend it and, if you leave it there, it will accrue interest.
Choose cheaper holiday options – rather than that overseas holiday each year, explore some local WA venues. You’ll save money and learn a little bit more about our beautiful state.

Saving a deposit just takes a bit of Focus, Contact us any time as we can help take you through these steps.

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Close to having your Mortgage Paid Off? What’s Next?

Focus Property Wealth — Tue, 20 Sep 2016 02:08:27 +0000

Is your Mortgage Paid Off? or is the end nearly in sight , if so, what are your next steps?

With our clients, it’s common at this time to take this opportunity to set new financial goals and to consider investing in property again using their equity.

Here are some tips to utilise your property equity effectively:

It’s an important time to look at correctly structuring your loans. Ensuring each property stands alone for example (so not cross securitised) - this has distinct advantages and allows you to be nimble should you need to move your loans to take advantage of improved low interest rates or bank policies.
Get your ducks in a row by extracting equity from the property before making an offer on a proposed investment property. By being prepared you can utilise this position to negotiate a great purchase price.
Pay down your owner occupied loans first. By working with your accountant this can also help to minimise having any non tax deductible loans.
Ensure you have a robust property investment plan in place to ensure any investment meets your long term goals.

Another important tip is figuring out what to do with the money every month that would have gone to your mortgage. Reallocating it into savings and investments rather than spending will assist in making your future and retirement better.
While there are no secrets to paying off a mortgage, having diligence and discipline will get you there.

At Focus Property Wealth we love working with clients to plan for your future. If you would like a no obligation, complementary consultation to discuss your situation and how we can help contact our team today on (08) 6162 6577

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Finding your First Home Loan

Focus Property Wealth — Wed, 03 Aug 2016 08:03:02 +0000

Is it time to take the leap and buy a home of your very own? Did you know we offer a free service as a part of obtaining your loan to research the market you are looking in. This information can be very valuable when looking to make your offer.

We often hear from our first homeowner clients that some of the challenges they face is getting approved for a mortgage and staying within budget (let alone finding the perfect property!).

With hundreds of mortgage products in the market place it’s not easy to pick the right loan. Here’s some of our tips to get you started on your first home journey:

1) Don’t judge a loan by its interest rate

With everything new it’s important to educate yourself in what will suit your circumstances, especially in loan repayments and features.

Many first timers are attracted with the low interest rates that are currently on offer, but it’s important to look at other factors too such as high fee structures that typically come with low interest loans. If you’re after a lot of features, you usually pay for these through higher interest rates.

Some features that may appeal to a first home buyer is a no-deposit home loan, family guarantees or 40-year home loan options.

2) Know your limits

With your first loan, it’s important to get it right the first time around. So it’s important to be honest about what you can afford. It's easy to convince yourself that you'll only have to struggle for a couple of years but what if something was to happen in the meantime?

You only get once chance with a first loan and you will not have the benefit of the First Home Owner Grant or other incentives the second time around.

Ensure you plan a workable budget and stick to it which will give you a good idea of the home loan you can afford.

3) Know what you’re entitled to

Speaking of First Home Owners Grants, ensure you know what you are eligible to receive. Different state governments offer different incentives to first home buyers that change frequently. Make sure you know what is available when buying your first home and apply early in the process. The best time to apply is when you apply for your home loan.

4) Family assistance

We see parents assist their family with a family guarantee for their first home buyer children. A family guarantee loan works by using equity in the parent’s property to help their child secure a new loan. This means the new loan is secured by the child’s new property, as well as existing equity in the parent’s home. It can be a great option where no or a small deposit is saved.

5) Knowledge is power

The better informed you are, the more likely you will be to choose a home loan that genuinely meets your needs. Therefore it’s important that you do your own research and talk to relevant advisors.

At Focus Wealth we aim to make things easier for you. We’ve assisted hundreds of clients purchase their first home and we’d love to help you too.

We can guide you through the process, answer all of your questions and ensure you get the right home loan with the right interest rate so you’re not paying more than you need to.

Contact one of our experts today on 08 6162 6575

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