What would happen if we re-plumbed the house on advice from a doctor or if we committed to surgery on the advice of a driving instructor and what would happen if we learnt how to drive on the advice from a plumber? Sounds crazy I know but we do this all the time and we […]
Family BBQs are the First Home Buyer’s worst enemy Read More »
A comparison rate is a tool to help consumers identify the true cost of a loan by reducing the costs of a loan—including interest & fees—into a single percentage rate to easily compare the true cost of home loans. We can use comparison rates to compare various loans from different lenders. Why do we have
According to a recent newspaper article if you earn $150,000 p/a you can save $100,000 deposit in just 2 years. This is fantastic if you earn that sort of dough. So it got me thinking, what other fairy tale ideas have others published all in the name of helping you save for a deposit. So
Top 5 useless tips to save a deposit Read More »
Whether savings is genuine or non-genuine can sometimes make a difference between an approval or a decline but most of the time the biggest difference is more to do with the cost of mortgage insurance and the relevant interest rate. Genuine Savings Genuine Savings is an established savings pattern over a period of 3 months.
Genuine Savings Vs Non Genuine Savings Read More »
Virgin Money Australia is an Australian financial services company owned by Bank of Queensland, and has 150,000 customers. In 2003, Virgin Money was launched in Australia with the launch of Virgin Money credit cards. In 2013 Virgin Money Australia was bought by Bank of Queensland for $40 million. Who are they? Part of the global
Lender Review—Virgin Money Read More »
Lenders Mortgage Insurance is an insurance policy that pays the difference between the sale price of a property and the outstanding loan owed to a bank in the event of a forced sale. For example, for a property sold at Mortgagee Auction for $340,000 with outstanding loan of $362,000, the claim amount is $22,000. Who
Lenders Mortgage Insurance—FAQ Read More »
So the cost of donuts has gone up $0.50 but before you write to your local member of parliament demanding a royal commission let’s have a think about the costs that go into making a donut. There’s yeast, cinnamon, oil, cream, jam, chocolate and the many other ingredients. If the cost of some or all
Explaining the RBA cash rate with donut theory Read More »
A 100% Offset Account is a normal everyday transaction account that is linked to your home loan which can reduce the interest charged. A full offset means that 100% of the funds in your offset account will be deducted from what you owe on your home loan before interest is calculated. The run down on
100% Offset Account Read More »
Being a keen angler, I’m always on the lookout for new fishing gear. Spotting a facebook ad for a fishing shop ‘Closing Down – 50% off everything’ sale got my interest with no ‘Upto’ clause inserted. I checked the bank balance, worked out how to explain it to my wife and jumped online credit card
Focus on the fine print Read More »
Home loan rates are shown as an annual rate but are divided by 365 to get a daily rate (use 366 for a leap year). The daily rate is then applied to the loan balance each day. Assume a $350,000 loan with an interest rate of 4.50%. Figures are rounded for ease of understanding. This
How do Banks calculate interest? Read More »