Aussie Finance Blog

Australian personal finance news, tips and advices.

What is a home equity loan?

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This post is a response to Saundra Latham’s great article about the best home equity loan rates for 2016 (US), posted on the The Simple Dollar.

Paying off a mortgage results in more than just owning a home. The value of your home is a form of savings that provides negotiating power for other loan arrangements or investments. For many people, the downside of making regular mortgage repayments is the lack of ready cash or additional savings potential. A home equity loan can provide the solution, by allowing home owners to borrow money against the value of their home. This money can be used for any number of home improvements or other purposes. ... (read more)

When to Refinance a Home Loan

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Paying off a home loan mortgage takes a dedicated effort over a number of years. During this time your personal circumstances might change, finances could fluctuate, and lenders will vary their interest repayment rates according to financial markets. As a borrower, you may be on the lookout for a better deal, but there are a range of factors to consider before moving ahead and refinancing your loan. ... (read more)

What Home Loan Can I Afford

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There are a number of factors that will determine the amount you can borrow for your home. Before commencing the search for your ideal property, you will need to get an accurate idea of how much money you have to work with.

Your bank or credit provider is taking a calculated risk every time they lend money. In order to minimise the risk they will require proof of your ability to repay the loan, and an up-front deposit to protect themselves against any loss if the loan is terminated early. ... (read more)

How Home Loans Work

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For most people, buying a home is the most significant financial investment they will make. A sizeable loan is usually required, and repayments are generally spread out over many years. Therefore, it’s important to also invest a little time into understanding your options and getting a deal that suits you. Let’s begin by learning the basics of how a home loan works.

Before discussing the different types of home loans it will help to understand what all home loans have in common. ... (read more)

How Does Home Loan Interest Work

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Understanding how interest affects your home loan is an important step in the loan process. Even if the interest rate remains relatively low it will still add up to a large portion of your total repayments over the duration of a 25-30 year home loan term.

Understanding interest

Many people misunderstand how interest is calculated. For example, when investigating a $100,000 loan at 10% interest, a novice borrower might think the total amount of interest to be paid will be $10,000. ... (read more)

What is Home Renovation Loan

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Renovating a home can be one of the most fulfilling achievements for a home owner or investor. However, when things go wrong (as they inevitably do) your renovations can turn into a financial nightmare. Taking out a home renovation loan that is tailored to your needs can be one of the most astute financial decisions you will ever make.

Understanding which home renovation loan best suits your project is the first step toward a successful outcome. The ‘plan’ in financial plan is more than just an idea; it’s an essential factor in making sure you add maximum value to your premises. Unless you have savings set aside for your home renovation, you need to understand what type of loan best suits you. ... (read more)

Home Loan Application Process

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It’s expected that home-buyers will become daunted by the complexities of the home loan application process. There are a number of regulations and laws that govern our capacity to obtain a loan. However, the process is relatively straight forward when the borrower, armed with knowledge, takes each step with clarity and caution. Here is a brief overview of the lending process that will ensure you are ready to get a good home loan deal. ... (read more)