Challenges of First-Time Homebuyers in Getting a Home Loan in Adelaide

Because of the rising property prices, homebuyers in Adelaide are now facing more challenges than ever before. This is why many aspiring homeowners—especially first-time buyers—struggle to get a home loan in Adelaide and are forced to remain in rentals.

Saving for a Deposit

A survey conducted by First Home Buyers Australia reveals that 40% of aspiring homeowners find it difficult to accumulate enough funds for a deposit, and cite this issue as their biggest obstacle to obtaining a home loan. It’s easy to see why; after all, real estate is extremely expensive not only in Adelaide but in Australia in general. A 20% deposit on a house in a major city can easily reach the $160,000 range.

Complicated Paperwork

Different lenders ask for different sets of documents, and the list can get confusing quickly for borrowers who are self-employed or have multiple sources of income. Most banks also ask for a list of assets (including proof of savings, share investments, superannuation statements, motor vehicles, etc.). Details of existing personal loans, car loans, and credit cards are often required, too. Some lenders even go as far as asking for a breakdown of the borrower’s everyday living expenses—such as utilities, petrol, and grocery spending. To finalise an offer, they also require details about the property purchase, including a signed Contract of Sale, proof of property insurance, a copy of Transfer of Land, and council approved building plans and permits (for borrowers who are building). Producing and organising these documents can be difficult for a first-time homebuyer.

The Solution: Get Help

The good news is, you can overcome these challenges with the help of a good mortgage broker. The best home loan brokers in Adelaide can make getting mortgage a simpler and straight forward task by giving you access to a variety of finance products and expert insider advice. When you have suitable home loan options at your disposal, buying your own home will no longer be just a dream, but a distinct reality.

The Important Role of a Commercial Finance Broker

Commercial finance deals with offering loans to businesses, and different financing facilities designed to suit the various requirements of commercial entities. Whether you’re launching a start-up or simply need additional capital to grow your already-thriving business, hiring a commercial finance broker lets you access funding solutions that you might otherwise miss. A commercial finance broker is a professional who channels funds from a preferred lender to your business. The best brokers will take the time to understand your business and its requirements before recommending a variety of lenders who they know are capable of meeting your unique needs.

A good commercial finance broker will use years of experience and have the skills to analyse the industry with a deeper understanding that will help you find the right lender who can cater to your financial requirements. Finance brokerage services are practical for small and medium sized businesses that face difficulty in sourcing funds from larger banks. Good brokers will help you get in touch with reputable alternative lenders, giving you more variety and the freedom to choose a more flexible solution for your business.

Seasoned commercial finance brokers have helped many struggling businesses get the right financing at the right time. Having a good broker is like having a financially savvy business partner who can help you get the best deals that are available in the market. With the guidance of a commercial finance broker you’ll gain professional support especially during critical times when cash flow is lower than expected.

In case, you have already found a lender, you can still seek the help of a commercial finance broker to negotiate terms that are favourable for your business. The best brokers have the expertise to negotiate and deal with many different banks and lenders, to help you churn the maximum profit of hiring them. This also helps you save money in the long run by ensuring that you get the lowest interest rates and most flexible payment terms.

Commercial Loans: A Cost Effective Way of Funding Business Expansion

Commercial loans let you fund new business endeavours. These types of loans provide several advantages that other small business loan options do not have, making them attractive to entrepreneurs.

First of all, commercial loans typically offer the lowest interest rates compared to other loan options, enabling those who want to expand their business to access critical funding without driving up their overhead costs. Most commercial loans are also long-term—often structured from 3 to 10 years—so you can pay the money back gradually as you increase business profits. This combination of extended payment plans and lower interest rates minimises the potential for default and ultimately reduces your investment risk.

Commercial loans can be unsecured, so you don’t necessarily need to provide collateral in order to obtain it. They can also be used for large sums so that you can cover most (if not all) of the start-up costs with one single loan. A commercial loan likewise allows you to retain complete ownership of your business. The same can’t be said for venture capital investments that usually require you to sign over a part of your business to the investor. This is never a problem with commercial bank loans that let you retain total ownership of your company.

Thanks to the flexible payment plans and lower interest rates, commercial business loans are some of the most cost-effective options available these days for business owners. But while this type of funding option is appealing, it can be very difficult to qualify for. You will need an excellent business credit history to begin with. First-time entrepreneurs are often unable to qualify as they have yet to build credit.

The application process can also be exhaustive, requiring detailed financial reports, professional assessments of potential revenues, and other such documents. The bank needs to see a highly compelling proposal assuring them that the risks of your business failing is low.

Working with a commercial loan broker is a good idea if you want to improve your chances of success. A good broker also has access to a variety of commercial loan products and can guide you to the best solution, as well as offer alternatives.

Finding the Best Mortgage Brokers in Adelaide

It’s truly a buyer’s market. There are so many different mortgage lenders and offerings available for those wishing to buy a house in Adelaide, and the selection can be confusing. Why don’t you work with a mortgage broker who can do the legwork for you? Brokers don’t just find the most about suitable mortgage loans for you based on your situation—they can also arrange special deals and save you a lot of money in the long run. Of course, it’s wise to shop around before you hire an adviser. Do some research yourself, to ensure that the loan is indeed suitable and competitive to meet your needs.

The key is to find a reliable full-service finance broker that can negotiate with banks, credit unions, and other lenders on your behalf to arrange a home loan. They can present to you a wide variety of options and help you select the deal that makes most sense for your goals. They also manage the entire application and approval process through to settlement.

You might be wondering—who pays the broker? In most cases, the credit provider gives the broker a commission. Some brokers do not work for commission and will instead charge you a service fee directly. Ask the mortgage broker about his or her fee structure and think about whether you are comfortable with it. Don’t be afraid to consult multiple brokers and compare their fees.

You also have to check that if the broker is licensed. Financial brokers in Adelaide (and the whole of Australia) cannot operate without a proper license. Search the professional registers of the Australian Securities and Investments Commission (ASIC) to check if the mortgage broker you are talking to is indeed licensed. You can also call ASIC at 1300 300 630.

Finally, create a ‘wish list’ of what features you expect in a mortgage loan and what services you are hoping to get from your broker. Find someone who can meet as many of them as possible.

Selecting a Good Mortgage Broker for Mortgage Services in Adelaide

If you are buying a home in Adelaide and are seeking mortgage services, then you need a reliable broker. A good mortgage broker can guide you in selecting the right home loan and getting the best deals, but how do you choose the right broker? The key is to do your due diligence; after all, hiring the wrong person can cost you thousands.

An Adelaide mortgage broker is essentially the go-between for you (the borrower) and the lender. Brokers are accredited to offer a wide range of home loan products, and their goal is to determine which one is the most suitable for you. They are legally bound by a ‘responsible lending’ obligation, which means that they have to put your interest ahead of theirs and ensure that you don’t end up stuck in an unsuitable mortgage loan.

Meeting a prospective broker face to face is the best way to assess if you are comfortable working with him or her. When meeting potential brokers, always ask how long they’ve been in the mortgage services industry, which lenders they work with, and what types of loans they offer. Ask them for references in Adelaide and take time to call those previous clients. Were they satisfied with the mortgage services provided by the broker?

Be sure to choose a fully licensed broker who is accredited under the National Consumer Credit Protection Act and is a member of the MFAA (Mortgage & Finance Association of Australia) and/or the FBAA (Finance Brokers Association of Australia).

The best brokers in Adelaide are up to date with the latest industry trends. They are organized and punctual, adhering to strict deadlines. They also have excellent knowledge of home loan products available for different types of borrowers. The best brokers have good people skills, too; they have the confidence and the patience to discuss loan products and lenders with you without having to rely solely on computer software. If the broker doesn’t seem 100% confident when conveying information, that might be an indication of lack experience. You are better off moving on to someone else.

Home Loan Brokers in Adelaide – Get a Good Interest Rate on Home Loan

One of the most common mistakes home buyers make when looking for a mortgage is not shopping around and settling for the first home loan they find. Working with experienced and reputable home loan brokers in Adelaide will ensure that you can look at all the options before settling for the best mortgage with a good interest rate.

Consider shopping for the right home loan along with the right broker who can assist you in getting it. Be sure to get in touch with a leading home loan broker in Adelaide that has over a decade of experience in assisting individuals and businesses acquire the best possible financing with the best interest rates. Home loan brokers in Adelaide have the experience and knowledge to pick the right lenders who can provide the best mortgage product with interest rates you can easily afford. Here are some ways that home loan brokers in Adelaide can help you get a good interest rate:

• Home loan brokers will work to get you fixed interest rates for consistent payments for a fixed amount of time - They will take the time to examine the loan to make sure that you can get fixed rates at any time for more favourable payment terms. Some loans are discounted for the first 12 months, hence, saving you interest while letting you make extra principal repayments throughout that period. 

• They can examine your credit score – Home loans are based on various criteria, such as your credit score, which will determine whether you are qualified for the loan and the rate you will pay for the mortgage. A high credit score may provide a lower mortgage rate, particularly a score of 760 or above. With a lower score, your interest rate becomes higher. The lowest score that can qualify for a mortgage is 620. If your score is much lower, a seasoned home loan broker can still assist in finding a mortgage you can afford, while giving you tips and advice on how you can monitor and make improvements on your credit score.
  
  
• Explore their network of lenders – Home loan brokers are connected with reputable lenders in Adelaide. They take their time to examine the options from each lender until they find the right mortgage with a good interest rate for you, so you do not have to.

Commercial Properties – Things to Keep in Mind while Purchasing

Buying commercial property can be a good move for a small or mid-size business in the long run. When you buy property, you have better control over the price of real estate overhead (unlike when you lease a property). However, buying commercial real estate tends to be challenging because it is more complicated than purchasing a residential property. It’s always a good idea to work with a broker. You also need to keep these things to keep in mind if you are thinking of investing in commercial real estate:

• Reflect on the needs of your business – There is no sure-fire way to buy commercial real estate. Each business will have a different set of needs and requirements. Hence, be sure to identify and understand potential risks associated with the location, liquidity, cash flow, and the value of the property.

• Find good financing company – Commercial loans are different from residential loans. Down payments tend to be higher, so you will need to shell out more compared to the amount you are likely to pay when buying a home. Hence, it makes sense to ask around and find different lenders who can give the best rates.

• Prepare to lose your due diligence money – Get an appraisal, have the property inspected, and perform other inspections and tests required by the law. Be prepared because these services will cost you. Sometimes, after a test, you may find the property undesirable. Be sure you have enough funding for these expenses.

• Work with the right people – Find the right lenders and investors to work with when purchasing commercial property. Establish a good relationship with them, so you could get better rates and deals that can help you buy the property easily.

Consider hiring reputable finance and mortgage brokers who practise a personalised approach to helping their clients achieve the best outcome for their business finances. Make sure that they have years of experience in commercial property finance. 

How an Equipment Finance Broker Can Help You with Your Business Equipment Loan

Are you looking to buy new equipment’s for your business? Then you have four choices when it comes to business equipment loans: a Chattel Mortgage, a Hire Purchase Agreement (rent to own), an Operating Lease, and a Finance Lease. Each of these different options is associated with corresponding tax, accounting, and residual value risks. Consulting an equipment finance broker is always a good idea. You need experts to help you determine arrangement is most appropriate for your needs.

An equipment finance broker will act as a mediator between you and the lender, ensuring that you get the most advantageous terms. What are the benefits you can enjoy when hiring an equipment finance broker? Here are some of them:

•    Professional negotiation - They will negotiate on your behalf so you can get the most optimum loan terms for any type of equipment and/or machinery you might need for your business.
•    Higher rate of approval - If you happen to be a start-up business with no little to no credit history, your chances of getting approved for an equipment loan via a direct application are low. An equipment finance broker can package your application so that lenders feel more confident in approving your loan.
•    Safe time - Spare yourself from all the paperwork and hassle of doing all the negotiations and transactions by yourself. Hiring a mortgage broker allows you to focus on your business.
•    Unbiased advice - Equipment finance brokers are independent. Lending officers who work for particular banks or lending institutions might need to fill a quota or push a certain product, so they are not the best sources for unbiased advice. A broker can give you impartial recommendations on which terms are more beneficial to your goals.

Benefits of Refinancing a Commercial Loan with the Help of a Finance Broker

Refinancing your commercial mortgage is similar to refinancing your home loan. There are certain costs that must be considered, so you need to be careful. Once you find that the monthly savings will outweigh the upfront expenses, you can work with a reputable financial broker who can help with the appraisal, closing costs, surveys, and origination fees, so you can simplify the entire process. Refinancing a commercial loan will be easier and less stressful with the help of a qualified and experienced finance broker. Working with such a professional will introduce you to the following benefits of refinancing your commercial loan:

1. Reduce the total interest on your mortgage:

This will depend on the terms of the loan, the interest rate, and the cost of refinancing, but in general, refinancing the commercial loan allows you to pay less interest.

2. Speed up the process of paying your commercial loan:

You may not be able to pay more each month based on the loan terms, but you can consider refinancing to get a lower term, so you can pay off the debt sooner.

3. Lower monthly repayments:

Refinancing could introduce you better loan products and lower interest rates from a similar or a new lender. This way, you could potentially save money and get other benefits like fewer fees.

4. Consolidate loans:

Refinancing a commercial loan could help consolidate other debts so it will be easier to manage the finances of your business.

5. Save time and effort:

Finding the right lender and making negotiations could take up a lot of your time when you could be using it to deal with your business. Working with a finance broker will save you from going through all that trouble. You can trust his or her industry experience and connections in helping you find the right solution to refinance your commercial loan.

Home Loan Brokers in Adelaide - Find a Suitable Home Loan Based on Your Needs

Buying a home is a major step, and the process can be overwhelming especially if it is your first time. You have to proceed with caution and plan everything meticulously so you don’t compromise on your financial security. One of the easiest and safest ways to secure a suitable home loan is to contact a home loan broker in Adelaide. The home loan broker will assess your financial situation and your needs to arrive at the best arrangement. Major Banks and lenders offer many types of home loan products offered by major banks and lenders. A home loan broker will help you make an informed decision on what is best for you:

• Fixed rate home loan – This is one of the most popular and conventional home loans available. It allows you to budget your money easily since the loan you have to pay off is fixed on a monthly or yearly basis. The rate of the loan does not increase along with inflation. 

• Interest only home loan – For a period of time, you only need to pay off the interest of the loan for your home. This allows you to use your money for other things, such as buying furniture or renovations. 

• Lo doc loans – Also known as a low documentation loan, this type of loan does not require a long list of financial documents. It might be suitable for people who are self-employed and do not have up-to-date financial documentations. 

• Non-conforming loans – This type of loan is offered by lenders who are more flexible. If you do not meet the criteria of a typical loan candidate because you have bad or no credit, then this type of loan might work for you. 

Don’t decide on your own. Professional home loan brokers will be able to find the most appropriate home loan for your situation. They can also shop around to offer you the best rates and give unbiased advice.

How a Finance Broker Can Help You Obtain a Home Loan

There are several ways by which you can borrow money to finance or refinance your home. You can take your chances at a large bank or a smaller community bank, take your case to a credit union, seek out an online or direct lender, or go to those that specialize in mortgage loans. Perhaps a wiser option is to consult with a finance broker who can show you the ropes and make the process a lot easier with their experience and expertise of the market. Because of the many misconceptions about the "middle man," a lot of people, especially first time home buyers are most of the time too cynical to even consider going to a mortgage broker for advice. However, nobody can deny the fact that your chances of getting a home loan approved is much higher when you are backed by a reputable finance broker.

A mortgage or finance broker acts as a point person or middleman between lenders and borrowers. While it may seem easier and more ideal to simply approach lenders on your own, the advantages of having a professional broker handle your loan application are too great to ignore. Brokers, for one, can search for potential loans from multiple lenders in no time—something that is close to impossible to achieve when you are on your own.

Comparing multiple lenders and service providers is essential if you want the best financing option for your home purchase. This is true whether you are looking for a substantial investment or even when you want something plain and simple. Comparing loan terms coming from at least three different lenders is ideal, especially when you are facing unique challenges in qualifying for specific loans, like high debt to income ratio, low credit score, and things of the like. Discussing your options with several lenders will help you find better variations in the cost of your loan.

A mortgage broker can help you obtain a loan by gathering all your financial information and all necessary documents to complete the loan application. They can walk you through all your loan options as well as the different financing programs that may be beneficial to you in your current situation. While most lenders also do this, they will usually only talk about programs that they do offer and provide, rather than inform you about the range of products available at your disposal. Brokers will also communicate with the lender once you have decided which loan you want to go for and take the application process off your hands until it's time to close the deal.

Guidelines to Select the Right Equipment Finance for Your Business

Choosing the right equipment for any business plays a crucial role in the productivity and profitability of a business venture. To make sure that the cash flows are sustained and the financial health of the company remains robust, choosing the right type of equipment finance becomes imperative. This helps a business whether an established venture or a start-up to fund purchases of various types of equipment without any negative impact on the cash flow.

Many businesses do not have enough available cash credit to be able to pay a lump sum amount outright for their equipment. It, therefore, becomes a necessity to opt for flexible equipment financing.

Also, even if one can afford such exorbitant business equipment purchases, it makes sense if a business puts its working capital to more profitable use by not investing the cash in capital assets. The working capital can instead be used to fund operations and explore new growth opportunities.

Here are a few guidelines to help you select the right equipment finance for your business:

·         Check if commercial hire purchase makes sense: This option involves the credit provider or the lender hiring out the equipment for a defined amount of period to the business owner. The ownership of the equipment is then transferred to the business once the loan is repaid. After the final instalment, the equipment becomes an asset for your business. This option allows for a monthly payment to be made and helps ease out the cash flow management.

·         Also, check if equipment rental works: In this case, the credit provider or the lender purchases equipment on your behalf, retaining the ownership, and rents the equipment back to you for a fixed term. The financial flexibility that comes with this finance equipment option helps you regulate cash repayments. These would be in sync with your current cash flow. You will also be able to claim tax deductions.

·       Industry oriented equipment finance is a good option: Make sure that you stick to a particular industry specific equipment financing. The credit lenders pertaining to a particular industry will have hands-on domain expertise and knowledge of particular industry equipment. For instance, if you run a delivery business, the credit lenders who have years of experience working with the delivery services may ensure that you do not pay a lump sum amount for all the equipment but rather buy them on a staggered basis.

·     Understand the tax implications: You must figure out if it makes better sense to buy the equipment and show it as an asset on the balance sheet or is it better to rent the equipment. You must weigh the pros and cons of the tax implications of your chosen financing option.

·         Calculate the financial implications of the equipment on your accounts: Vehicles, computers and other technical equipment will tend to have a higher depreciation rate as compared to heavy manufacturing equipment and plant machinery. Certain types of equipment have a limited shelf life and need to be periodically replaced. Know the ins and outs of the equipment required so you can get a good financing option.

·     Don’t discount alternative financing options: If the existing equipment finance options are becoming too much of a financial liability, look for alternative sources of equipment financing that offers lower interest rates or an affordable repayment period.

Seek expert assistance: In the case of small and medium businesses, one can take assistance from commercial financial brokers. These brokers can help find the right equipment finance and also help do the paperwork on your behalf. Since they deal with the world of finance on a regular basis, you can also tap them for their expertise.