The fast-growing Campbelltown region is attractive for investors, and matching a finance product with your particular situation will go a long way to helping you make a sound decision.
Here are some of the options available:
In this scenario, you have an existing mortgage on a property that you are selling, and have chosen a new property to buy. Timing in the sell/repurchase process is rarely perfect, and you may find that you have to complete the purchase of your new property before settlement of your current home sale. This is when a bridging loan can help.
Here, the lender will take the security over both properties and you can avoid a second loan. Usually, you make interest only repayments on the bridging finance. However, if you do not get the estimated price for your old home, or if it takes too long to sell, you will end up paying a lot of interest.
Lines of credit
Once you have built up some equity in your home through regular mortgage payments, you can use this to finance other purchases – for home renovations, personal purchases or even share market investments. Here, you have access to money as and when you need it.
The downside is that your mortgage will take longer to pay off and if you draw over the limit, you will have to pay higher interest rates – in addition to the monthly or annual fee.
Here, all your income is deposited into an offset account associated with the loan and all expenses come out of the account using normal transactions like internet banking, cheque, credit etc. Instead of earning interest on your savings, you use it towards the loan amount, allowing you to pay back the loan faster.
As you are not earning interest on your savings, you are not taxed on this amount. Due to its flexibility, offset loans have higher interest rates. They are an attractive option for high income earners.
Refinancing and debt consolidation
Refinancing is an option for reducing monthly payments or for debt consolidation. Refinancing should only be done after careful consideration because you risk losing your assets, get deeper into debt, or end up paying more as interest.
But for some people, it is a useful option. Here at Our Mortgage Options we can help you decide whether refinancing will help in your situation, and also guide you through alternative options.
We can also help you with Property investment loans and Self-Managed Super Funds too!
With 30 different lenders’ products and specific regional experience in the Macarthur Region, we are ideally placed to help you find financing best suited for you.
For a no-obligation enquiry, call us on 1300 700 496