Personal Finance guide

Buying off-the-plan real estate is often pitched by marketers as a “win win investment” But, how safe is buying property sight unseen? Leading Melbourne Mortgage Broker What If We Finance provide some advice below for you to consider.

Certainly people have made great returns buying real estate before it is completed. Some have on-sold their properties at a good profit before ever having to settle, but these are usually more exclusive properties close to major cities, where demand is strong.

There have also been many instances of people paying far more for an off-the-plan property at settlement than they could hope to attain in the prevailing market. Melbourne Docklands apartments, where oversupply drove down prices, are a prime example of where this happened.

Buying off the plan is undoubtedly a leap of faith and the dangers are twofold.

First you have to believe that the property you can only see on a plan will eventuate exactly as specified within a certain time. If, like most of us, you do not find it easy to envisage exactly what you will get, it’s probably worth getting help from an expert. Even if there is a display suite, it may not be truly representative of the finished product.

Continue reading ‘Buying off the Plan “Caveat Emptor”’ »

Conveyancing is a term used to describe the whole of the process of selling a property on the open market, executing an agreement to sell and buy, and then transferring ownership of the property from the vendor to the purchaser.

If you buy or sell a property in Victoria you will need to understand what conveyancing is all about.

What If We Finance’s guide is general information only and should not be treated as a substitute for legal advice .

What Is Conveyancing?

Conveyancing is the process of transferring the legal ownership of real estate from one person to another.

Conveyancing Is About Real Estate Interests

Real estate is permanent. It cannot be moved, or hidden or destroyed. These features make real estate extremely valuable, and they also mean that real estate represents one of the best forms of security. If a bank lends money, and accepts real estate as security for the loan in the form of a mortgage, it doesn’t matter if the owner of the real estate flees the country and refuses to repay the loan. The bank has an “interest” in the land, and is entitled to sell that interest in order to recover the loan money.

A mortgage is just one form of interest a person can have in real estate, but there are many others. It is part of the role of person providing the conveyancing services to ensure that the property is transferred to the new owner free of any other interests. If the property cannot be conveyed free of other parties’ interests, then the purchaser or transferee of the property should be alerted to the interests as part of the conveyancing service.

Continue reading ‘Conveyancing – What Is Conveyancing?’ »

Equity release and reverse mortgages are an alternative for retirees or home owners wishing to upgrade their property.

Leading Melbourne Mortgage Broker What If We Finance advises these loans allow you to borrow the equity in your home, while you still occupy it. This can be a tempting option for many borrowers as the repayments do not have to be made until the owner either dies or moves into long-term care. As most retirees to do not have a regular income, these loans tend to meet their needs. Usually the loan is paid in full out of the sale of the property. Home owners over 60 years can borrow between 15% and 45% of the value of the property.

Borrowers taking out an equity release loan can take the funds either in a lump sum, or in smaller, regular instalments, and voluntary repayments are treated as surplus and can be accessed at any time.

You should always contact your mortgage broker to discuss their options before taking out a reverse mortgage, as there may be implications for pensions and tax assessments. How much you borrow will depend on your personal circumstances. However, it is important to decide how this loan will affect you overall.

* ADVANTAGES

You can have access to additional funds while still living in your home and retaining ownership. This is a great advantage to customers who do not want to move from their home or suburb, but need access to extra funds. Using an equity release loan enables you to access extra funds on top of your pension or superannuation policy, therefore topping up your weekly or monthly income and budgets.

Continue reading ‘Untapping the Equity in Your Home’ »

Ditech is taking part in President Obamas housing stimulus plan and now offering mortgage refinancing options to all types of homeowners. This means homeowners with financial problems or issues with their mortgage will find it easier than ever finding help refinancing a mortgage. Here are some things to know when using President Obamas plan and Ditech to get a mortgage refinancing.

Ditech, like a few other selected mortgage lenders and banks, gets cash incentives every time they offer a struggling homeowner a refinancing option that is in accordance with President Obamas stimulus. This means that they are taking on less financial risk and are able to help even more homeowners in even worse problems. This is helping the housing market, economy, and millions of homeowners.

Continue reading ‘New Ditech (GMAC) Mortgage Refinance Options from Obamas Stimulus’ »

There are plenty of new and improved deals coming onto the market in the last couple of weeks. Having a look at the best buy tables there are a number of fixed rate mortgage deals that have much better interest rates but more importantly there are a couple of newer higher loan to value mortgages entering the market. There are new 30% LTV deals and interestingly new 10% deposit deals. This will be welcome news for those trying to save the hefty deposits needed.

While mortgage lenders will still have their strict lending criteria in place this does look like the market is beginning to thaw. More competition especially in the higher loan to value should translate into continued improvements in the rates available to borrowers. It is however predicted that interest rates will again increase in 2010 so this may well be the time to lock into a fixed rate mortgage deal if you are of the cautious type. Rates for fixed rate mortgages may again start to climb.

Variable deals have improved also with some great two year deals on the market. I even spotted a great first time buyer deal with a very competitive interest rate and no arrangement fee payable.

Continue reading ‘Could the mortgage market be starting to thaw?’ »

Mortgage bankruptcy filings are on the rise as homeowners continue to struggle financially. The American Bankruptcy Institute states bankruptcy filings rose 35-percent during 2009 and millions more are anticipated during 2010.

Mortgage bankruptcy is also referred to as the Conyers Bill; a controversial bill enacted by legislation in 2007. The Conyers Bill modified terms of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) passed by Congress in 2005.

Controversy stems from the fact the Conyers Bill grants bankruptcy courts authorization to alter existing mortgage terms to benefit borrowers. Mortgage terms that can be changed include: reduction of principal mortgage balance to reflect appraised property value; reduced interest rates; and elimination of excessive fees.

Altering mortgage terms provides homeowners the opportunity to regain control over finances. As long as borrowers adhere to modified loan terms, mortgage lenders can recover financial losses and avoid foreclosure.

Under Conyers Bill, borrowers are required to provide evidence they are financially insolvent and unable to cure mortgage arrears. The bill provides relief to eligible homeowners who want to keep their home in the event of bankruptcy.

The mortgage bankruptcy bill offers protection to homeowners who obtained subprime or non-conventional mortgage loans after January 1, 2000 and later filed for chapter 13 bankruptcy. Borrowers are required to provide sufficient evidence proving they lack the financial ability to stay current on their mortgage note.

Continue reading ‘Mortgage Bankruptcy: Tips to Save Your Home from Foreclosure’ »

Mortgage refinancing is a great move for many homeowners. With interest rates near record lows and new Government programs in effect, getting help refinancing a mortgage is easier than ever. Even struggling homeowners and those with financial issues can find help. Here is some advice for homeowners looking to refinance a mortgage with Obamas stimulus plan into the low mortgage interest rates available today.

Mortgage refinancing in the past was pretty much only beneficial for homeowners with good credit and a good repayment history. However, with the economy and housing market in bad shape, homeowners needed help. That is why the Obama administration has launched the “Home Affordability” stimulus program.

This stimulus program is designed to help struggling homeowners avoid losing their home, get better interest rates, and save money. Millions of homeowners are in a bad financial situation and are at risk of losing their home. This plans designed to help struggling homeowners and offer them refinancing options which were not available before.

Continue reading ‘Mortgage Refinance Stimulus Plan for Struggling Homeowners’ »

There are plenty of new and improved deals coming onto the market in the last couple of weeks. Having a look at the best buy tables there are a number of fixed rate mortgage deals that have much better interest rates but more importantly there are a couple of newer higher loan to value mortgages entering the market. There are new 30% LTV deals and interestingly new 10% deposit deals. This will be welcome news for those trying to save the hefty deposits needed.

While mortgage lenders will still have their strict lending criteria in place this does look like the market is beginning to thaw. More competition especially in the higher loan to value should translate into continued improvements in the rates available to borrowers. It is however predicted that interest rates will again increase in 2010 so this may well be the time to lock into a fixed rate mortgage deal if you are of the cautious type. Rates for fixed rate mortgages may again start to climb.

Variable deals have improved also with some great two year deals on the market. I even spotted a great first time buyer deal with a very competitive interest rate and no arrangement fee payable.

Continue reading ‘Could the mortgage market be starting to thaw?’ »

Mortgage bankruptcy filings are on the rise as homeowners continue to struggle financially. The American Bankruptcy Institute states bankruptcy filings rose 35-percent during 2009 and millions more are anticipated during 2010.

Mortgage bankruptcy is also referred to as the Conyers Bill; a controversial bill enacted by legislation in 2007. The Conyers Bill modified terms of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) passed by Congress in 2005.

Controversy stems from the fact the Conyers Bill grants bankruptcy courts authorization to alter existing mortgage terms to benefit borrowers. Mortgage terms that can be changed include: reduction of principal mortgage balance to reflect appraised property value; reduced interest rates; and elimination of excessive fees.

Altering mortgage terms provides homeowners the opportunity to regain control over finances. As long as borrowers adhere to modified loan terms, mortgage lenders can recover financial losses and avoid foreclosure.

Continue reading ‘Mortgage Bankruptcy: Tips to Save Your Home from Foreclosure’ »

Mortgage refinancing is a great move for many homeowners. With interest rates near record lows and new Government programs in effect, getting help refinancing a mortgage is easier than ever. Even struggling homeowners and those with financial issues can find help. Here is some advice for homeowners looking to refinance a mortgage with Obamas stimulus plan into the low mortgage interest rates available today.

Mortgage refinancing in the past was pretty much only beneficial for homeowners with good credit and a good repayment history. However, with the economy and housing market in bad shape, homeowners needed help. That is why the Obama administration has launched the “Home Affordability” stimulus program.

This stimulus program is designed to help struggling homeowners avoid losing their home, get better interest rates, and save money. Millions of homeowners are in a bad financial situation and are at risk of losing their home. This plans designed to help struggling homeowners and offer them refinancing options which were not available before.

This program provides cash incentives to mortgage lenders and banks who offer refinancing options to homeowners in accordance with Obamas stimulus. This means that the lenders and banks are more willing to help struggling homeowners, and people who would not have gotten help before. Never before has such a plan been in place to help so many homeowners find relief and help them secure their financial future.

Continue reading ‘Mortgage Refinance Stimulus Plan for Struggling Homeowners’ »