Are you looking to purchase your next property but don’t know the best finance options?
Today I am going to provide you with some top tips on how to find the best financing options on your next property purchase.
1. Get your personal finances in place.
The first step to finding the best financing options is to get your personal finances in order.
Put together all your statements and credit card details, ensure any outstanding tax returns are taken care of and make sure your credit file is in a good condition.
You should also make sure you have a regular savings account, and that your existing properties are valued.
2. Pay off any small loans.
The second step is to pay off any small loans if possible.
One big stumbling block I see for those looking to purchase the next property is car loans.
They generally are not a huge amount, but they’re quite a high monthly repayment, and it can really reduce your borrowing capacity.
3. Ask the broker or lending specialist for advice.
The third step is to ask the broker or lending specialist for advice.
The banking industry is ever-changing, so loan structures that may have worked three or four years ago might not work now.
A broker or lending specialist will have the most up to date information and can give you the best solutions for the property you’re looking to purchase.
4. Compare PI vs IO Loan
The fourth step is to compare a principal and interest loan to an interest only.
This will depend on the type of property you’re buying; for example, if it’s your own home you may want to pay it off quicker, but if it’s an investment property you may want to keep the lower repayments to enable you to buy another property in the future.
5. Consider financing other properties if you will get a better rate.
Finally, always look at refinancing your existing properties. If you bring them all over to one bank, you may be able to get a bigger discount.
Ask your lending specialist for advice and make your decision based on the most detailed information available.
By following these steps, you’re sure to find the best financing options for your next property purchase.
If you would like to discuss your property needs further or you would like me to recommend to you one of my preferred lending specialists, you can book a time in my calendar by clicking here.
Regards,
Geoff Tomkins
Buyer’s Advocate
PH: 0404 852 781
