Belinda Gibson
Businesses have less than six months to claim ...

The clock is ticking for businesses that want to take advantage of the instant asset write‑off and Small Business Energy Incentive, which expire on 30 June.

Belinda Gibson
Portability; The Magic of Mobility!

TM Finance Group Mortgage Broker, Kylie Donnelly explores and explains Portability…

Belinda Gibson
Property market still growing despite high rates
Belinda Gibson
First Home Buyers are using government ...

How the federal government is helping first home buyers…

A new report, from Housing Australia, has revealed that about one in three of all first home buyers in the 2022-23 financial year used the federal government’s Housing Guarantee Scheme (HGS) and its three different assistance programs.

First Home Buyers are using government initiatives...
Belinda Gibson
Australian mortgage holders flex $20bn worth of ...

With lots of people coming off fixed rates right now, it’s no surprise we’re experiencing an enormous amount of refinancing within the industry, as borrowers look to switch to lower-rate loans…

Australian mortgage holders flex $20bn worth of refinancing

loan approval

Meet Shantanu, an engineer who's designed the perfect life-balance between budgets and holidays.

Meet Shantanu, an engineer who's designed the perfect life-balance between budgets and holidays.

Imagine it, a 16-year old boy first time in a big city, lump sums of cash.

Shantanu was forced to learn how to manage his own funds (among other things a 16-year old boy doesn’t know how to do). Unless he wanted to be eating plain rice 3 times a day for the last week of every month, he had to learn how to budget. And fast. It was a matter of survival.

These foundations gave Shantanu a leg-up as a fully-grown, income-earning adult.

Learn how this month’s ‘TMPeople’, Shantanu, has designed his perfect life-balance between budgets and holidays…

Guarantor Loans Explained

Guarantor Loans Explained

Saving for a deposit is time consuming and costly to say the least!  Obtaining a 20% deposit is difficult in a rising property market, and can restrict first home buyers.  Lending becomes tighter for loans over 80%, and a Lenders Mortgage Insurance Premium is additionally required.  When adding on stamp duties, government charges and solicitor fees, things can start to add up quickly!

Guarantor loans can offer a solution to this, allowing you to purchase with a lower deposit required.
 

So, what is a guarantor loan?

Your guarantor essentially ‘guarantees’ your home loan by using their property as security.  That is, the bank holds both your property and your guarantor's property as security.  Most commonly, parental guarantees assist in buying first homes.  Say you wanted to purchase a property for $500k, but only had $25k cash savings, your parents could guarantee an additional $75k against their property to reduce your lending value to 80% of the purchase price.

What are the benefits?

  • Lower deposit required
  • Overall loan is 80% or less - so no Lenders Mortgage Insurance is required
  • Interest rate may be lower - as rates with some lenders are tiered for loans above 80%
  • Some lenders allow you to limit the size of the guarantee

Considering your next Property Purchase? Consider it sorted with a Pre-Approval.

Considering your next Property Purchase? Consider it sorted with a Pre-Approval.

Do you want the confidence of walking into your dream home and making an offer knowing you are backed by pre-approved finance? 

Looking for a new home can be both daunting and exhilarating.  Whether it be purchasing your first home, moving houses, or building an investment portfolio, pre-approved loans allow you to shop with confidence.

What is a pre-approval?

A pre-approval is a conditional approval granted by a lender that allows you to apply for a home loan up to a certain limit.  It allows you to focus on your property search with a clear idea of affordability in mind.  The document requirements are similar to full formal approvals as the lender must consider your income, current commitments such as other loans or credit cards, living expenses, deposit, and funds to complete the purchase. 

Why is it important to obtain a pre-approval?

  1. Demonstrating to the seller you are serious
  2. Provides an idea of how much you can afford
  3. In a position to move quickly and bid with certainty
  4. No obligation

Get your future started with TMFG

Speak to one of our consultants today