The finance industry had experienced many seismic upheavals in the past few years. Not so long ago, you had to demonstrate an established loyalty and relationship with your bank and turn up cap-in-hand just to qualify for a home loan.
Over the past decade, we have seen the growth of new bank, non-bank, mortgage managers and finance brokers who have all taken the hassles out of the process for home loan applications. The lenders have fashioned and created various loans with all the ‘bells and whistles’ conceivable to capture your custom and patronage. In essence though, the most valuable loan feature has not really changed, and that is having the flexibility to pay more off your loan when circumstances change.
Over the recent weeks, all the major lenders have increased their discounts on their respective ‘packages’ to entice new clients. Some of these discounts range from as much as 0.5% to 1.00% based on the amount borrowed. Whilst these discounts are enticing, you really need to make sure that you meet the lenders’ stringent credit criteria and that you understand the pros and cons of each respective package.
Since the beginning of 2012, lenders have gradually tightened their credit criteria and processes. Most purchasers today prefer to seek ‘Letters of Offer’ before they purchase a property but these are difficult to obtain and when issued lenders usually place ‘use by dates’ on them. Additionally, there are no guarantees that older lending offers will be renewed.
Whether you are buying an investment or an owner-occupied property, it is important to keep a clear and informed focus on the available financing options and which one suits you best. Obtain the insights and advice of your borrowing capacity and serviceability before you decide.
Flakus & Associates has resources and accessibility to numerous lenders and works for you, the client to secure the best flexible loan option. Securing a home loan may be tough, but with our proven experience and unparalleled commitment to your success, we will work it out together as a team. Give us a call today.