PROPERTY PURCHASES

Talk to Real People Finance about your current or potential loan set-up. We can offer advice and other options on the following:

    - Approval in Principle
    - Auction
    - First Home Buyers
    - Off the Plans
    - Interest Rates
    - Loan and Product Features
    - Professional Packages

Approval in Principle (AIP)

Having pre-approved finance can make all the difference when it comes to finding that perfect home, especially when the property you wish to purchase is to be sold via auction (see deposit bonds).

An approval in principle will provide you with comfort – and save you time - when you are viewing potential home or investment properties.

Note: An Approval in principle is not a formal approval from the lender. It is a conditional approval which will generally expire in three months and may be subject to a satisfactory property valuation.

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Auction

Found a property? Is it going to auction? Are you prepared?

Having an approval in principle is a good start. If you are seriously interested, consider arranging building and pest inspections prior to the auction. Requesting from the agent a copy of the contract to peruse with your solicitor is also a good idea. You may also consider a sale prior to auction. A vendor (the seller) may very well prefer to eliminate the stress of an on site auction.

Remember, having adequate funds available to pay the deposit as the successful bidder is crucial. To exchange contracts, you will need a deposit in the form of a bank cheque or deposit bond.

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First Home Buyers

First Home Buyers are at present eligible for assistance offered by State and Federal Governments. The First Home Owners Grant (FHOG) is offered to first time buyers as an offset for the implementation of the goods and service tax introduced in July 2000. Some State Governments provide other concessions for first home buyers.

Ask your solicitor or Real People Finance consultant.

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Off the Plans

Off the Plan by nature usually means buying prior to commencement of or completion of a property.

Formal approval for Off the Plan purchases will usually only be given within 3 months to completion.

To exchange contracts on Off the Plan purchases often means having to tie up deposit monies for long periods of time. Many buyers will consider the deposit bond alternative for prompt exchange and convenience.

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Interest Rates

The home loan market is very competitive. Banks and non-banks are offering all kinds of packages to lure your business.

A small saving on your interest rate could save you thousands on your loan!

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Loan & Product Features

Does your home loan suit your needs?

Consider some of these options:

100% Offset Account – It is common for people to have a 100% offset account linked to their home loan to ensure that all available funds are reducing the interest on the loan.

”Low Doc” and “No Doc” Loans – Designed for self-employed clients with high equity in an investment purchase & clear credit history, who may not be able to provide current financial statements.

Blending or packaging – A clever option to take advantage of various loan types. As an example, you may choose a 100% offset account for $50,000 of your loan and place the remainder of the loan in a basic interest rate product.

Non-Conforming Loans – Designed to cater for those with a not-so-perfect credit rating, or who are “outside the box” for most lenders. These may suit casual, contract or seasonal workers; people with no savings history etc.

Interest Only – This is particularly useful for investment loans, keeping the repayments to a minimum and allowing for simplicity when doing your tax.

Internet and Phone Banking – 24 hour banking is now common and offers many advantages. Whether you need it for BPay, 3rd party transfers, a redraw or to deposit an additional repayment, the benefits are far reaching.

Line of Credit – This is a flexible loan that allows you to use an approved limit for all purposes, at home loan interest rates. Investors may find this particularly useful. This option allows you to use the equity in your home for property and investments, such as buying shares etc.

Redraw – Does your loan offer you a flexible redraw facility that allows you to access additional funds readily? Some products have limits on redraws which may be restrictive.

Split / Switch – Splitting and switching is similar to the blending option above. The terms are more commonly used where you place a percentage of your loan on a fixed rate and another component as variable.

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Professional Packages

Are you eligible for a professional rate?

Some lenders will provide professional packages that include customer loyalty discounts, interest rate and fee reductions, gold credit cards and more.

Terms and conditions do apply.

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