With interest rates at an all time low, the question of whether to choose a fixed interest rate loan is a hot topic. Last month we took a closer look at The Pros and Cons of a Fixed Rate Home Loan, but what if you are torn between a fixed rate and a variable rate home loan? There is a solution – you can take out a split rate mortgage.
When purchasing a property, refinancing or just renegotiating with your current lender, borrowers can generally decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations. With interest rates at an all-time low, and many lender’s fixed rates significantly lower than their variable options, refinancing to a fixed rate is a very attractive option at the moment. While none of us know what the future holds, we can look at the facts and make an educated decision. Here are the ins and outs of fixed-rate loans.
First home buyers are keeping brokers and lenders very busy at the moment as they take advantage of the many different grants and schemes available to them. Home and land packages seem to be particularly attractive with buyers looking at growth corridors where they can see an equity increase in their property going forward.
The latest vacant land data demonstrates that even with the COVID-19 pandemic ravaging the country, the South East Queensland land market displayed a 4.26% increase in lot sales from the corresponding financial year.
With historically low interest rates available at the moment, now could be the perfect time to get your foot on the property ladder. If you are thinking about buying your first home, you’ll be very happy to hear that there are quite a few government schemes available to you. This will probably be one of the largest investments you’ll make in your life and you will undoubtedly feel a little overwhelmed (and quite excited), so for your convenience, we’ve put together a list of all the incentives available to first home buyer, owner occupiers in Queensland.
Lender’s Mortgage Insurance (LMI) is insurance that covers the lender’s risk within a residential mortgage transaction in case the borrower fails to make loan repayments. A lender considers a loan to carry a higher risk if the loan-to-valuation-ratio (LVR) is more than 80 per cent of the purchase property price, this is when LMI is payable.
If you consider that the average price of a home in Brisbane is $550,000, that would mean a deposit of around $110,000 would be required. The major benefit of LMI is that borrowers with smaller deposits are able to enter the market sooner rather than later, allowing the dream of homeownership to become a reality for a lot of first home buyers.