HOME LOANS
Purchasing a home is one of the biggest investments of your life, lets do it right
Start your journey the better way –
JS Mortgage Services
HOW MAY I HELP YOU?
WHY CHOOSE JS MORTGAGE SERVICES FOR YOUR HOME LOAN
I Don’t Work For The Banks
I work for YOU, Which means you are not just a number and will not be left in the lurch and forever wondering if you made the right decisions.
Professionalism
I deliver top-notch service, and handle requests with expertise, ensuring your journey is smooth and hassle-free.
Expertise
My intimate knowledge of the industry allows me to craft a service uniquely tailored to your needs.
Integrity
In every endeavour, from collaboration to decision-making, we champion transparency, honesty, and sincerity.
UNDERSTANDING INTEREST RATES
Principal and Interest
In a nutshell, your principal is the actual amount you borrow to buy your home. It’s the core of your loan.
And interest? That’s the extra fee the bank charges for lending you the principal. It’s how they make their money. You pay a bit of both with every loan repayment.
Interest Only
Interest only means you’re just paying the bank’s charge for lending you money, but not chipping away at the amount you borrowed – the principal. It’s like paying rent without buying the house. You get to hold onto more cash each month, but the big loan amount stays the same.
Fixed Rate Loans
Fixed-rate loans! It’s like locking in your mortgage repayments at one rate, so they don’t go up or down with the markets.
Variable Rate Loans
A variable rate is like riding the waves with your loan. It goes up and down based on the market, so your repayments change over time. It’s flexible, which can be fab if rates drop, but remember, they can also rise.
Purchasing Your Next Home?
Alright, let’s keep it real simple! Buying your next home is like levelling up in the game of life. You’ve been there, done that, so you know the ropes. It’s about choosing the right location, finding a home that ticks all your boxes, and sorting out the finances – think of it as a mix of excitement and paperwork.
Buying a Second Home? Here are a few things to consider.
Affordability / Cost Awareness
Firstly, it is important to assess your financial situation. Can you afford to take on another mortgage? Will you be able to manage the expenses that come with owning multiple properties?
Goals
Next, think about your goals for the second home. Is it an investment property? A vacation home? A rental property? The answer to this question will determine the location, type, and size of the home you are looking for.
Market
Another important consideration is the timing of your purchase. Are you looking to buy in a buyer’s or seller’s market? Are interest rates favorable for buyers? These factors can greatly affect the price and availability of homes in your desired location.
Sweet Success
With the right strategy and guidance, purchasing your second home can be a smart and rewarding investment.
Fees Explained when buying a home
It’s important to remember that buying a home involves more than just the purchase price. You’ll need to factor in other costs such as stamp duty, conveyancing fees, and building and pest inspections. Depending on the property and your situation, you may also need to consider lenders mortgage insurance (LMI) and council rates.
At JS Mortgage Services, we understand that navigating these fees can be overwhelming. That’s why we take the time to explain everything to you in plain language and provide you with a clear understanding of the costs involved. We pride ourselves on our transparency and commit to making the home buying process as stress-free as possible for you.
Stamp Duty
Stamp duty is a tax that is levied on the transfer of property ownership. It is a state and territory-based tax, which means that the rates and rules vary depending on where the property is located.
When purchasing a home the buyer is typically responsible for paying the stamp duty. The amount of stamp duty payable is calculated based on the value of the property, and is typically a percentage of the purchase price. In some cases, exemptions or concessions may be available, such as for first home buyers or for properties under a certain value. It is important to check with the relevant state or territory revenue office to see if you are eligible for any exemptions or discounts.
Conveyancing Fees
Conveyancing fees can be a significant cost when buying or selling a property, but it is important to remember that the legal work involved is necessary to ensure a smooth and legally valid transaction.
Conveyancing fees are the charges that a solicitor or licensed conveyancer will apply to their services when you are buying or selling a property. These fees can vary depending on the type of property transaction and the complexity of the legal work involved.
Conveyancing fees may include items such as search fees, land registry fees, and solicitor fees. Search fees are charges for searches carried out on the property, such as local authority searches and environmental searches. Land registry fees are charges for registering the property ownership with the Land Registry.
Solicitor fees are charges for the work carried out by the solicitor or licensed conveyancer. It is important to understand the conveyancing fees that you will be charged and to obtain a written quote upfront, so that you can budget accordingly.
Some solicitors or licensed conveyancers may offer a fixed fee, while others may charge on a time basis
Lenders Mortgage Insurance
Lenders Mortgage Insurance is often referred to as LMI. It is insurance that a lender takes out to insure itself against the risk of not recovering the full loan balance if the borrower (you) were unable to meet loan repayments.
LMI is a one-off fee charged by the Lender to you when you need to borrow more than 80% of the value of the property.
The LMI premium payable can either be included into the loan amount (called capitalisation of LMI) or paid upfront on settlement.
The lender will be able to provide you the applicable costs of LMI.
It is important to note, if you choose to capitalise the LMI, your loan repayments are based on the higher loan amount which includes the LMI premium.
The cost of LMI will vary and it will depend on the lender, how much is borrowed and the size of the deposit.
Council Rates and Water
Council rates are an annual fee paid by property owners to their local council. The rates are used to fund local government services such as waste management, road maintenance, and parks and gardens. The amount of council rates payable depends on the value of the property and the services provided by the council. It is important for property owners to pay their council rates on time to avoid penalties and interest charges. Councils usually offer different payment options such as quarterly or annual payments, and some may also provide discounts for early payment. If the seller has prepaid the Council Rates or Water, an adjustment is factored in when settling on your new home, to account for the cost
Building and Pest Inspections
It is recommended that a Building and Pest Inspection is conducted for your new property, to identify any potential issues with the property. These inspections do come at a cost but can help you make an informed decision about the property, its condition and potential future expenses
Loan Set Up Fees
When applying for a Mortgage, lenders may charge an application or establishment fee. These fees cover the administration costs associated with processing and setting up your new home loan
Mortgage Registration Fee
This fee is charged by the Government for registering the mortgage on the property title. The cost varies depending on which state/territory the property is located within
LENDERS MORTGAGE INSURANCE EXPLAINED
So my friends neighbours sisters aunty SAID I shouldn’t Pay Lenders Mortgage Insurance (LMI)
Lets take a look into LMI in detail and the benefits and costs of LMI.
Lenders Mortgage Insurance, or LMI for short, is like a loan bodyguard. Just like an action hero, your lender takes out this insurance to fend off the risk of losing out on the full loan amount if you, the borrower, couldn’t keep up with repayments.
This can help you secure your home when you have less than a 20% Deposit, wish to purchase your home on your own, do not have access to a gift or guarantor.
Benefits of LMI
The benefit of LMI is it allows lenders to provide home loans to customers who do not have a substantial deposit but would otherwise meet the lenders credit requirements
Cost of LMI
LMI is a cost that assists you in securing your home. The fee is a one off fee and is usually non-refundable
Purchasing an Investment
You can purchase an Investment Property with a lower deposit and have LMI applicable. This can maximise your tax benefit*
*It is always best to speak to your tax accountant regarding your tax benefits
Cost of LMI
if you choose to capitalise the LMI, your loan repayments are based on the higher
loan amount which includes the LMI premium
LMI
The LMI premium payable is calculated on a sliding scale
There are lenders that offer concessions based on your situation and some lenders also offer a reduced rate of LMI depending on qualifying criteria’s.
As your Broker Expert we consider these factors for you
You should always look at what is going to benefit you and your personal situation
SELF-EMPLOYED? Run your Own Business?
Look no further! I am an expert in the industry, here’s a couple of clients that required my services and had nice things to say. read below
“Working with JS Mortgage Services was a game changer for our business. Jacinta’s expertise and dedication are unmatched.”
— Hemi T.
“From strategy to execution, every step of the way was smooth and transparent. Jacnita the broker I Highly recommend!”
— Aroha P.
Why choose me?
I Don’t Work For The Banks
I work for YOU, Which means you are not just a number and will not be left in the lurch and forever wondering if you made the right decisions.
Professionalism
I deliver top-notch service, and handle requests with expertise, ensuring your journey is smooth and hassle-free.
Expertise
My intimate knowledge of the industry allows me to craft a service uniquely tailored to your needs.
Integrity
In every endeavour, from collaboration to decision-making, we champion transparency, honesty, and sincerity.