It is possible to arrange with your lender to only pay the calculated interest on your loan each month, without any requirement to pay down the principle amount owing on your loan.

Work out how much ‘cash’ you need each pay period ($A).

Get your payroll department to deposit $A into your bank account and the balance into your Home Loan.

Pay as many bills as possible by credit card.

Redraw from your loan to pay your credit card and other bills as required.

Construction Loans Insurance Examples

There are so many things in life to think about these days! Insurance is so important for peace of mind, however it is not always top of mind.

Once you have building insurance in place, ask your insurer to provide you with a building insurance certificate of currency. You will need to send this certificate of currency back to your lender, together with your completed mortgage offer documents.

LMI is a one-off, upfront insurance premium that is generally payable when you borrow more than 80% of the property value. It does not protect you as a borrower. It protects the lender in the event that you default on the loan, and they have a shortfall in funds after selling the property.

If you have changed your name due to marriage (or divorce), your property and loan are in your old name and you want to update your name. It’s not simple or free. There are several processes to go through, with quite a few fees and costs involved.

An offset account is simply a bank transaction or savings account that’s attached to your home or investment loan.

The purchase price will consist of the loan and other amounts provided by the Superannuation Fund.

Leverage – you use your cash to invest a percentage of the purchase price of the investment property. It’s possible to borrow 95% of the value of a property to purchase it – so together with the 5% needed for government and lender costs; you need only commit 10% of the purchase price from your own cash.