That Mortgage Guy

As the housing market continues to evolve, one question looms large for prospective homeowners: Are you ready to secure approval for your home loan? Here are some key considerations to ensure you're prepared for this significant financial step. 1. Financial Readiness: Take a deep dive into your financial situation. Have you saved enough for a down payment? Do you have a stable income to support monthly mortgage payments? Understanding your financial readiness is crucial before approaching lenders. In todays market and regulation lenders will take a microscope to your finances and transactions. 2. Credit Health: Your credit score plays a pivotal role in loan approval and the interest rate you receive. Review your credit report for any errors and work on improving your score if needed. Lenders often look for a score of 620 or higher for conventional loans. We are able to obtain these reports for our clients as their mortgage broker. 3. Debt-to-Income Ratio: Lenders assess your de

Bonds? What are they? I’m sure you have heard this term thrown around or in the investment space a lot but what are they really? Lets have a super Quick Look covering off a few points on what bonds actually are -  Bonds are debt securities issued by governments, municipalities, or corporations to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. Consider it like an I owe you in so many years but ill pay you like I would a bank for a loan of money. Bonds are considered fixed-income investments because they typically pay a fixed interest rate over the life of the bond. This predictable income stream makes them attractive to investors seeking stable returns but remember, rates today will likely be very different to rates in 10 years, the bond is not variable, its fixed so make sure you are getting the right advice. Bondholders receive regular int

What is the definition of LVR?   Loan-to-Value Ratio (LVR) is a financial metric used by lenders to assess the risk of a loan by comparing the amount of the loan to the appraised value of the property securing it. It's expressed as a percentage. So how top you calculate this?  Its simple To calculate LVR, divide the loan amount by the appraised value of the property and multiply the result by 100. For example, if you have a $200,000 loan on a property valued at $250,000, the LVR would be 80% ([$200,000 / $250,000] * 100). How does this play into the banks Risk Assessment you ask?   Lenders use LVR to evaluate the risk associated with a loan. Higher LVRs indicate a higher risk for the lender, as the borrower has less equity in the property. Lower LVRs generally suggest a more secure loan. Well this is all great I’m sure you are thinking but how does this impact on Interest Rates?   LVR can influence the interest rates offered to borrowers. Lower LVRs may qualify for better in

Commercial lease vs residential lease Lets break down the key differences in this mini blog for some bite size learnings 1. **Purpose of Use:** The primary distinction is the purpose for which the property is leased. Residential leases involve renting property for individuals or families to live in, while commercial property leases are for business purposes, such as offices, retail spaces, or industrial facilities. 2. **Lease Terms and Length:** Residential leases often have standard terms, usually 6 or 12 months, and can be renewed. Commercial leases, on the other hand, tend to have longer terms, commonly ranging from 3 to 10 years or more, reflecting the stability businesses require. 3. **Rent Determination:** Residential rents are often influenced by factors such as location, property features, and demand in the housing market. In contrast, commercial rents are determined by factors like the size of the leased space, location, and the potential for business success in that area. 4.