Blog - Action Loans

Blog

Catch up on the latest news, events and articles about Action Loans and what’s currently trending in the Mortgage Industry.

Will buying a smaller investment property provide a good ROI?

By | Home Loans | No Comments

Will buying a smaller investment property provide a good ROI?   A small property could potentially make a great investment, provided you choose the right one. The key to success with any investment property is thorough research. In this article, we take a look at how to research and choose the right small space property to give you the investment returns you’re looking for. Pros – why choose a small space apartment or unit?   There are lots of benefits to buying a smaller property such as an apartment or a unit. Houses often have a higher entry price point due to land value, so you could potentially buy an apartment or unit with a smaller deposit. Ongoing costs for apartments and units can be a lot less too – council rates are usually higher on a house and in many states, you’re also required to pay land tax on an ongoing basis. With a unit or apartment, costs are limited to strata and body corporate fees. Maintenance is also a cost that must be taken into consideration. If you purchase a house, all maintenance issues are your responsibility, whereas with an apartment or unit, many of these costs are…

Read More

Why home loan pre-approval is important

By | Home Loans | No Comments

Pre-approval is a green light from a lender. Put simply, it confirms you’re eligible to apply for a home loan up to a certain amount. Essentially, the lender checks your financial circumstances, to decide if you’ll meet their criteria and can afford to repay a mortgage. A home loan pre-approval usually lasts for three to six months and gives you a set budget during your property search. Here’s why home loan pre-approval is so important.   To confirm your borrowing power   Before you start shopping for a property, it’s important to confirm your borrowing capacity. Online calculators can give you a general indication of what you might be able to borrow given your income and savings. But they don’t accurately confirm what size repayments you’ll be able to make after you meet your other living expenses and financial commitments. With a loan pre-approval, you’ll know exactly how much you can afford to pay for a property. It gives you a solid understanding of your finances and a clear spending limit.   To save time on the property search   Imagine spending months looking for your dream home, only to be rejected for finance once you found it. Confirming how…

Read More

How to keep your credit report clean

By | Home Loans | No Comments

Your credit report paints a picture of your life as a responsible bill payer and borrower. Under the new Comprehensive Credit Reporting (CCR) regime introduced this year, it has increased in importance because lenders will be required to take it into consideration when approving your home loan. That’s why it’s a good idea to keep yours in good shape. Last month, we explained the recent changes to credit reporting under CCR. In this article, we look at ways to clean up your credit report. First, a quick refresher. What is a credit report and why is it important?   Credit bureaus compile credit reports based on feedback about your credit behaviour from banks and other credit providers. Your credit report contains a credit rating between zero and 1200 – an overall measure of your creditworthiness. If you’re applying for a loan, credit card, electricity or mobile phone contract, chances are a credit check will be undertaken. From July 1, Comprehensive Credit Reporting (CCR) became mandatory for the big four banks. Under this system, it’s compulsory for banks to share both negative and positive details about your credit behaviour with other lenders.   How to download your credit report   Simply…

Read More

Can a boarder help you pay your mortgage?

By | Home Loans | No Comments

Are you thinking about buying a home and wondering how you’ll cover the mortgage repayments and still have a life? Remember Cousin Jimmy mentioning he was looking for a new pad? Sure, he’s a little ‘unusual’ with his back-scratcher collection and all, but if living with his bizarre hand gadgets means you’ll score some help with the rent, then why not? Taking on a boarder could be a viable way to help you pay your mortgage, but it won’t all be beer and skittles! If you’re going to take in a boarder, there are some very important implications to consider first, as we explain in this article.  The pros of having a boarder   Additional income You can offset your household costs Potential tax deductions for property expenses The social factor.   The cons of having a boarder   Loss of privacy Extra responsibilities as a live-in landlord The income may push you into a higher tax bracket You may be subject to Capital Gains Tax (CGT) when you sell Many lenders don’t take rent from roommates into account when assessing whether you can afford a home loan.   Legalities to consider   The money received from your boarder will…

Read More

How to bid at an auction by phone

By | Home Loans | No Comments

Bidding at an auction by phone is becoming more popular. You may have noticed these bidders – mysteriously whispering into their phones and then bellowing out bids with unwavering confidence. Whilst some of these people are buyer’s agents, others are just experienced property buyers bidding on behalf of friends or family. Why bid at an auction by telephone?   There are many reasons why you may prefer to bid at an auction by phone, rather than attending in person. These may include: Geography: You may want to bid on a property that is rural or located interstate. Or you may want to bid at several auctions being held on the same day and can’t attend them all in person. If that’s the case, you may be better off organising someone to be there for you and work with them over the phone.  Nerves or inexperience with bidding: A lot of people feel nervous about bidding for themselves – it’s a normal reaction. It’s also normal to feel intimidated by other bidders, particularly if you’ve come face-to-face with some competitive types! Bidding over the phone can help you remain objective by keeping the excitement of the situation at arm’s length.  Avoid overspending: It’s easy…

Read More

Home deposit or wedding?

By | Home Loans | No Comments

What comes first?   2018 is going to be a big year for love and marriage in Australia – if you’ve found the one, congratulations! But what’s next – a home or a wedding? It’s a common scenario facing many couples – do you prioritise the wedding over the home, buy the home first and get married later, or save for both at the same time? The answer depends on your own personal preferences, financial situation and goals. Here are some useful tips to help you decide and maybe get there sooner.   Ensure you and your partner are on the same page   Money matters are a common cause of stress in any relationship, so it pays to ensure you’re both on the same page about your finances. Discuss your short-term and long-term goals, and set your priorities together. It’s important to be open and transparent about your income and debts, so that you can work to make the most of your finances – and to help make your wedding and home ownership goals a reality. Talking about merging your credit cards and bank accounts to save money on interest and fees, is a great place to start.  Create…

Read More