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Mortgage Insurance – What you should know

Something many homeowners don’t know about mortgage insurance is that if you repay or refinance your loan within a certain period a rebate may apply. Mortgage insurance, which protects the lender even though you, the borrower, pays the premium, generally applies if you borrow more than 80% of the purchase price of a home.

Depending upon the instituition you may be entitled to a partial rebate of the premium paid if a loan is repaid within 2 years though in most cases it is within 12 months.

With most mortgage insurers no rebate is payable if the loan has been in default, or the borrower refinances with another product within the same organisation, or pays the loan down to below mortgage insurance threshold.

If you think that you may be able to clear your loan early or be able to make lump sum reductions and will have to pay mortgage insurance initially, it really pays to shop around.

Commercial Broker Award

We were very pleased to receive the award for Commercial Broker of the Year (NSW) in October 2010 and a finalist in 2012. This award was given by Finance and Systems Technology Pty Ltd, Australia's leading commercial aggregation group. The award was based on the dollar value of settlements over the preceding twelve months. It was a difficult year for the finance industry with the effects of the GST making it much more difficult to get transactions approved. We beleive that our performance reflects the effort we are prepared to put in for our clients and the quality of relationships with our lender panel.

Repay Fortnightly on you Home Loan

It’s always surprising to learn how many people still stick to monthly repayments on their home loan. Why? Because by paying fortnightly you can save thousands, Savings depend on loan amount term and interest rate. We would be happy to compare for you, it is simple but effective.

When it comes to slashing your home loan interest bill there is no better strategy (and it’s easier too). By taking the minimum monthly repayment, halving it, and paying the halved amount every two weeks, you can save a substantial amount off both term and interest.

That’s because there are 26 fortnights in a year – the equivalent of 13 monthly repayments rather than 12.

For borrowers who divide their minimum monthly repayment by four and pay weekly, the savings are slightly higher still on interest but not much on term.

It’s important to note that some lenders, when calculating fortnightly payments, take the monthly repayment figure, multiply it by 12 then divide it by 26 to give you a fortnightly amount. While this is correct, it will not reduce you home loan as fast.

 

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