Construction home loans

How to make your construction home loan painless

Building your home is stressful. Managing trades, selecting things, moving house, paying rent and interest, working with builders, managing progress payments with your bank. 

constructionWe can't help you with all of these, but we can help you with taking the lender stress away.

This is how the process usually works

You plan your new home, talk to builders, get council approval, sort your loan, get started. But after getting started is when it can get really frustrating with your loan, because you and the builder need to arrange for progress claims during the build. When you signed your building agreement you agreed to the builder being paid in 4 or 5 payments during construction.

When the lender gets the progress claim some will check the schedule of works to the contract, and then ask a valuer to go and do an inspection to ensure that the works have been done. Each of these inspections (up to 4) cost money and mean waiting until the valuer has gone out, taken their notes and photos, written their report, sent it to the lender. Waiting for the lender to read it all and then agree to process the payment.

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Negative interest rates

Banks paying off your home loan

Recently a Danish bank launched what is believed to be the first home loan with a negative interest rate – a 10 year fixed rate loan with a rate of minus 0.5%.

negative interest ratesThis means that every month when you make your repayment the banks tips in a little more. But is this a good thing?

Interest rates have a link to inflation – high rates often mean high inflation, low rates often mean low inflation. So, what of a negative rate; does this equal deflation?

When we buy property we tend to think that it will go up in value and that over time inflation and wage rises means that your loan commitment takes up less of your disposable income. But with deflation we potentially see property values falling, real wages declining, and your loan commitment eating into more of your income. None of us want to see that. Read more…

Reviewing your loans

Why now is a great time to review your loans

With the drop in interest rates, it's a great time to review your loan arrangements with Collins Hume's local lending specialist, David Seymour.

contractGiven the ever-changing landscape and regulatory changes for Owner Occupied, Interest Only and Investment lending, David can assist you to navigate through the jargon and provide you with several options that suit your personal needs.

Review and save
David will provide a complimentary service by reviewing your existing loan facilities and looking for ways to save you potentially thousands of dollars over the term of your loan. 

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Mortgage choices

Life is about choice

Every day we make choices. Get out of bed? Vegemite or peanut butter on toast? Go to work?  

choiceMany of these choices are so simple that we make them automatically and they really don't require that much thought.

Then we have the bigger choices – get married? Have children? Take 12 months off and wander the world? Get a mortgage? Buy a home? Most of us want to buy their own home, and nobody wants a mortgage – but they do come hand in hand for most of us.

How do you get that elusive great mortgage deal? How can you do the research to find the deal? Calling into branches, surf the web, ask family and friends, talk to your BFF from year 1 that now works at a bank? All of these are options. Read more…

Consolidating your loans this EOFY

Debt consolidation case study

Northern Rivers Lending Specialist, David Seymour, was introduced to a couple who were both wage earners, trying to get their debt under control with little success from the major lenders. 

debt consolidationBeing a small family with one child, they were living pay-to-pay but couldn't get their heads above water. It felt like they were continually paying off something all the time. 

To try and grab a break, they went to see major bank about consolidating their loans. When they were turned away they went to their existing lender to find out that they also had no time for them. 

They completed paperwork in the hope of being approved and the process only dragged on, so they became disenchanted and gave up. 

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