ARTICLES

Beginner’s Guide to Mortgage

What is a mortgage?

By definition, it is a type of loan offered by the bank or other financial institution that a person can use to finance the purchase of a property, It’s commonly used for buying a home.

Collateral

Unlike other loans, A mortgage has collateral rights to your home. It means if you don’t pay the bank back on the agreed time they can take possession of your home and sell it in the process called “Foreclosure.”

Principal amount & downpayment

The amount of money borrowed to buy a home is called “Principal.” You can put down a percentage of the home’s purchase price by giving a down payment to decreased your loan’s principal amount. The lenders have a variety of down payment options that can figure out which one is the best option for you.

Interest rate

Lenders will give you charges on the loan that you borrowed and the amount is usually expressed as a percentage called “Interest rate.”

Amortisation

The major parts of your monthly payments are the principal and interest rates. These are the factors for reducing your debts in a process called “Amortisation.” It is a length of time that will take to pay off the loan and own their home entirely.

Insurance

Aside from a mortgage loan, it is also important to acquire home insurance suggested by the lenders to cover against disastrous events and other incidents that can cause damage or losses from your home.

Mortgage broker

What is a Mortgage broker? A Mortgage broker like Funding Force has a connection with the primary banks in the country. We serve as the median between you as a borrower and the bank, you’re borrowing with. We will help you to acquire housing loans in a way that we’re the ones who will communicate to the bank until it got approved. We make the process easier for the borrower and all of these services are free because the bank is the one who will pay us by the commission for all of the approved housing loans we offered to them.

In Australia, 60 % of housing loans came from Mortgage brokers, this means 2 out of 3 people decided to hire a mortgage broker instead of personally going to the bank.

Mortgage brokering is a smart way for you to acquire a housing loan. What are you waiting for? If you want to acquire your dream house, contact us on 03-8372 2018 Under the new laws, your tenant will not be able to stop paying the rent. But they will be entitled to.

Articles

How do Online Auctions work?

All precautions are being taken here at Reliance to ensure the health & safety of both our staff & clients. Due to the pandemic, we are doing things a little differently while still providing you with above and beyond service Thanks to online programs and apps like Zoom, we have the technology to allow for online Auctions.

We are here to help, below you’ll find some of our FAQ, answered!

How would Purchasers Bid?

Purchasers will receive a comprehensive e-mail outlining how you can register to bid, and how you can participate in the process on auction day.

What are the options buyers can participate in the auction?

There are multiple ways. You can register to bid and ‘attend’ the auction via zoom, where you can watch the auctioneer in action.. you can also visit a link that allows you to watch the bids as they progress, which can be done in conjunction with either of the two options outlined above. The auction rules will be read out as normal by the auctioneer and can also be accessed by bidders when they register. The Vendor’s Statement/Section 32 can be requested from the agent for your review prior to the auction as normal.

How do Purchasers sign a contract if I’m the successful bidder?

We are fully equipped with offsite auction contract signing, which means our vendors and purchasers can sign contracts from anywhere in the world! Deposit and residual amounts are automatically calculated, as well as settlement terms. You will receive the contracts via e-mail to sign and an executed copy is automatically sent to our office, the vendor, purchaser and each party’s conveyancer.

How do I pay the deposit if I’m successful?

You will need to ensure that you have a daily EFT limit of at least $10,000 prior to the auction. In the case you are the successful bidder, you will be required to pay a $10,000 deposit immediately after the auction, with the balance payable ASAP. You will then need to immediately email a copy of the deposit receipt to the agent.

How do I make a bid?

If you are interested in making a bid on a property, you have 3 options [1]Un-mute yourself and vocalise your bid, [2]Use the chat function to submit a bid, and [3]If the auctioneer nominates a rise, put your hand up so it is visible on the screen

After the Auction

Once the property has been sold, we politely ask all parties to leave the chat session, apart from the winning/ highest bidder. Once all other participants have left the online auction, the next steps will be discussed and the contract of sale will be prepared and emailed to the purchaser for signing via Docusign/Adobe.

FEATURED IN OCTOBER