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Posts by Fabio De Castro

What comes first: the property or the loan?

It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan. Looking for a property to purchase is an exciting time. Choices regarding location, size, number…

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Are Interest Only Loans A Good Idea?

Research released by the Australian Prudential Regulation Authority (APRA) at the end of last year showed that Interest Only loans are becoming increasingly popular, now making up almost 40% of all residential home loans. What are ‘interest only’ loans? Mortgage repayments are generally made up two components – the principal (the sum you’ve borrowed) plus…

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When should I refinance my loan?

Refinancing your loan is when you move your home loan from one lender to another. Many things may prompt this: Being unhappy with your current lender either due to the service they are providing or the rate they are offering. To help facilitate an investment property by accessing equity. To fund a big ticket item…

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Offset Vs Redraw

An offset account is a transaction account that is linked to your home loan that has normal transaction account functionality. The benefit is that the money in your account is offset daily against your loan balance, and this will reduce the interest charged accordingly. A redraw facility is a feature that enables you to withdraw…

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Interest rate hikes? … Hit them with your best shot!

With interest rate rises the talk of the town, it’s time to consider your best defence. And what exactly is your greatest weapon against rising costs? The household budget of course! Knowing how much you earn and how much you spend is critical to staying on top financially. So, dust that spreadsheet off, and take…

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