Saturday 8 December 2012

Home Loans and Equipment Finance in Perth

When you are searching for Home Loans Perth it's important that you find the right one. You want the loan to fit your life instead of you adapting to it. The best way to do this is by sitting down and taking a good look at your current finances - how much do you make each month, how much are you currently paying out each month and how much cash do you have on hand. The answers to these questions will help you to figure out how much house you can afford and what type of home loan in Perth is most suitable.

For so many people coming up with a down payment for a home can be difficult, especially in today's economy. This is the reason that zero deposit home loans in Perth are so popular. The attractiveness of this type of loan comes with an ugly side as well. When you are borrowing 100% the financial institution will charge you a higher interest rate. This is how they make money. The higher the interest rate the more money you are paying back, which means a higher monthly payment to you.

The goal of any loan is to keep your monthly payment as low as you possibly can but also to keep the overall payback of the home loan low in Perth. With a 100% mortgage loan this will be difficult.

Zero deposit home loans in Perth may seem like a good idea at first glance but if you take as closer look you may find a few things that you won’t like. What you'll find is many limitations and criteria that essentially can lead to the loss of your home. You'll need to read the terms and conditions carefully. You may even want to have a lawyer look it over to be on the safe side. This will reduce any hidden surprises in the future.

Searching online about zero deposit home loans will help you to learn more about the pro's and con's. You should also search for grant programs that will give you the down payment. These programs do not require you to pay them back.

A mortgage is a 30-year commitment that should not be taken lightly. When you choose the right mortgage you are potentially saving yourself a ton of money as well has reducing a great amount of stress in your life. So be sure that you don't rush into anything without carefully examining all of your options.

Equipment Finance in Perth is an umbrella term for leasing and hire purchase arrangements. Equipment finance in Perth enables your company to fund the purchase of assets you need to run and grow your businesses. Equipment Finance in Perth is a highly effective way of financing your business. Both new and used equipment can be financed. Advantages of Equipment finance in Perth include:
• conservation of working capital
• ability to keep at the forefront of technological advances and improve efficiencies
• tax benefits (provided that the equipment is used for business purposes)
• flexibility in structuring payments to suit your cash flow
• budgetary certainties as most equipment finance agreements are written at fixed rates for fixed periods

Types of Equipment Finance in Perth
Three of the most common types of equipment finance facilities in Perth are outlined here.
1) Finance Lease
2) Chattel Mortgage
3) Commercial Hire Purchase

The main differences between them are:
• ownership of the equipment, which in turn has implications for
• accounting, income tax and Goods & Services Tax (GST)


Melbourne Finance | Equipment Finance Perth

Home Loans Perth

A Home Loans Perth is an important source of finance for buying a home. It is important to ensure that your home loan is affordable for you and you are comfortable to repay them. If you are not, it may lead to poor or bad credit history. Here are some points or factors to consider when getting a home loan.

Factors to Consider When Getting a Home Loan in Perth:

Loan Amount:
It is not always wise to borrow huge sum or apply for different loans as huge debt will make your repayment a challenging that leads to a debt trap. Decide your loan amount depending or considering your monthly income, Job stability, your age, other debts and financial commitments. Remember, when applying for a loan, borrowers have to pay down payment or margin money which may be 8 to 20 per cent of your loan amount.

Tenure or Period of repayment:
Borrowers always want to pay off their loan or debts as soon as possible and opt for short tenure loans. When your loan tenure is for short period, your monthly EMI will be very high. Longer tenure is generally chosen to enhance the loan eligibility of borrower but longer the tenure greater is the cost of borrowing. If you are close to retirement, you will not be eligible for longer tenure loan. If EMI for short term is not affordable and you want to pay off your loan as soon as possible, you can consider middle path for the period of 10 to 15 years.

Hybrid Loan:
When considering home loan in Perth it is important to consider interest rate. You can either consider fixed rate or fluctuating rate of interest. Fixed rate of interest remains fixed for the entire tenure of loan irrespective of change in interest. Floating rate is chosen by borrowers who expect the rates to fall in the future and want to benefit by it. A hybrid loan is a combination of fixed and floating loans. Borrower can lock a portion under fixed and leave the remaining under floating rate. It is suited for borrowers who seek to benefit from the predictability of fixed rates and at the same time want to gain from a falling rate.

Insurance for Home Loan:
Home loan insurance enables you to insure your loan and repay your loan in cases of accident, death, sickness or loss of job. If your home loan is insured and in future if you are unable to repay your home loan due to sickness, loss of job or death, your insurance company will payoff your loan and avoid burden of home loan. It is highly recommended for home loan insurance to ensure that your family still has a home in case of your death or sickness or loss of jobs.

Penalty and Charges:
Before applying for home loan in Perth, know the rate of charges, penalty or fee charged by your lending company or bank for default in monthly EMI. Know the processing charge and in case you decide to switch your loan from current lender to new lender, current lender will charge penalty or fee for pre-closure of your loan.

Tax benefit:
If you borrow your home loan inPerth from a recognized lender such as banks and leading lending company, you can get tax relief on your principal amount and interest paid along with monthly EMI. If you are away from your property or city due to your business or employment, you can get tax relief for loan paid and you will be eligible for HRA provided by your employer in that city.


Melbourne Finance | Finance Perth