Debt management, home & investment loans
Debt management advice
Home and investment loans
Pigot Miller Wilson is ideally positioned to help you manage your debt and get you back onto the road to financial security. Our team at Pigot Miller Wilson can implement strategies to help you:
- pay off an existing home loan with loan advice and loan refinancing advice;
- reduce your credit card and personal loan debts by implementing a savings strategy and wealth creation plan for you; and
- ensure your financial future is on-track with a sound financial plan.
Speak to one of our team members at Pigot Miller Wilson today and get on track again.
- Loan advice
- Refinancing your home loan
- Tips to pay off your home loan faster
- Fixed or variable interest?
- Hidden home loan costs
- Home insurance tips
- Buying your first home
- First home owners grant
- Own an investment property? You could be saving money with a property depreciation schedule!
- Retirement Planning – Reverse Mortgages
Loan advice
Whether you need a home or investment loan, Pigot Miller Wilson has access to a superior panel of approved lenders who can offer competitive quotes and products to meet your specific financial needs.
Refinancing your home loan
We can arrange to review your current home loan to ensure you still have the right product for your needs. Don’t assume that just because your loan was once competitive, it still is. Interest rates change and different types of loans are always entering the market. Pigot Miller Wilson can:
- assess your current interest rate;
- assess your repayment level; and
- assess your financial situation to determine whether a better deal can be sourced saving you money; and helping you pay off your loan faster.
Tips to pay off your home loan faster
- Select a home loan that meets your needs. While the rate is important, it is more important to have an appropriate level of flexibility and function.
- Pay off as much as you can, as often as you can.
- Avoid loans that penalise you for making extra repayments.
- Avoid ‘honeymoon’ loans that revert to a higher rate after the ‘honeymoon’ period is over.
- Avoid loans with high exit costs.
- Deal with reputable organisations.
Fixed or variable interest?
This really depends on your current financial situation. Our Financial Planning Team at Pigot Miller Wilson can help you select the right type of loan, building in the cost of every-day living to determine how much you can afford to repay each month.
There are advantages and disadvantages of choosing fixed and variable interest loans, and they are assessed on a per client basis.
Pigot Miller Wilson can help you select either a:
- fixed interest loan;
- variable interest loan; or a
- loan comprising of part-fixed / part-variable interest.
Remember however, that if you elect to split your loan into part fixed / part variable, make sure you don't incur two monthly loan maintenance fees instead of one.
Hidden home loan costs
There are many costs associated with taking out a home loan, which don’t relate to the price of the property.
These hidden costs include:
- Lenders' fees, including loan application and establishment fees;
- Government charges including stamp duty on property purchase and mortgage, and title fees;
- Legal expenses; and
- Inspection costs.
Lender’s mortgage insurance
If you can’t repay your loan, the lender repossesses your house and sells it to repay the loan. If the sale of your house doesn’t cover what you’ve borrowed and an amount is still owed, lenders mortgage insurance will cover the gap. Lender's mortgage insurance covers the lender, not you!
If you need to borrow more than 80 percent of the total value of your property, most lenders will require you to pay Lender's Mortgage insurance. It is usually charged as a one-off premium payment. The higher the percentage borrowed, the higher the Lender's mortgage insurance premium will be.
Mortgage protection insurance
Mortgage protection insurance covers your loan repayments in the event that you are unable to make them.
Pigot Miller Wilson does not recommend mortgage protection insurance because it only covers your loan repayments. According to our research, in most cases, income protection insurance is much better value. Income protection insurance provides up to 75% of your salary in the event that you are unable to work and covers all your expenses - not just your loan payments.
Home and contents insurance
Home and contents insurance protects you from loss or damage to your home or possessions. The cost of insuring your home depends on many things, including the structure, the location and the existing security (security doors, alarm etc).
Home insurance covers the building only - not the land. Contents insurance covers your possessions listed in the policy.
If you have a mortgage on a property, building insurance is compulsory. Contents insurance is not compulsory, although it is generally a good idea and should be reviewed each year as you purchase new contents for your home.
Buying your first home
Buying your first home is one of (if not) the biggest financial commitments you will ever make. Stay well informed of what is involved so you don’t make any rash decisions.
Good financial planning and loan advice from Pigot Miller Wilson can save you thousands of dollars off your loan and help you own your home sooner!
Can you afford to buy a house?
A credit provider must ensure you can afford to repay a loan without suffering undue financial hardship before lending you any money. The total amount that you can borrow is determined by three factors:
- The value of the property you intend to purchase; and
- The funds you use towards the purchase; and
- Your borrowing capacity or "serviceability". Serviceability is your ability to meet loan repayments, and will depend on your income and existing financial commitments. You will need to provide evidence of a continuous stable income.
You must have a budget!
Budgeting your income carefully and understanding your spending habits will help you make regular loan repayments and own your home that much sooner!
First home owners grant
The First Home Owners' $7,000 grant was introduced by the Federal Government on 1 July 2000, as a means to compensate first home buyers or builders for the costs associated with GST.
While the First Home Owners' grant is available nationally, it is administered by the State Governments, so specific details may vary from State to State.
The grant is a one-off $7,000 payment, paid to you when you become entitled to possession of your home under a contract or purchase (usually on settlement). If you are building a first home, the grant is paid when the residence is ready for occupation.
If you are eligible for a First Home Owners' grant, the money is unlikely to make a significant difference to your home loan application - the funds are not usually treated as personal savings when the lender evaluates your savings history.
Count’s lending services are provided via Count’s subsidiary finconnect (australia) pty ltd, ABN 45 122 896 477. Head Office: Level 19, 1 Alfred St, Sydney 2000.
First Home Benefits - NSW
If you are buying or building your first home, you may be eligible for benefits under the First Home Owner Grant Scheme, NSW First Home Buyers Supplement, Australian Government First Home Owner Boost and the First Home Plus Scheme.
The Australian Government, as part of its phasing out of the Boost scheme, reduced the amount available for eligible transactions dated on or after 1 October 2009 and on or before 31 December 2009 by half. The Boost scheme will cease to be available for eligible transactions dated after 31 December 2009.
The NSW First Home Buyers Supplement will be available until 30 June 2010 and the $7,000 First Home Owner Grant and the First Home Plus schemes will continue to be available after 30 June 2010.
The following table identifies the grants available to first home owners during the stimulus period 14/10/2008 to 30/6/2010. The amount payable is determined by the date of your eligible transaction.
The total grant shown is in addition to any First Home Plus Duty exemption available to first home buyers. First Home Plus offers an exemption from duty of up to $17,990. When added to the grant payable, benefits up to $41,990 are available to first home owners in NSW.
The First Home Owner Grant, the NSW First Home Buyers Supplement and the First Home Plus schemes are fully funded by the NSW Government and together with the Boost scheme are administered by the Office of State Revenue.
First Home Owner Grant Cap
From 1 January 2010, a $750,000 cap will apply to all applications where the commencement date of the eligible transaction is on or after 1 January 2010. Applicants who purchase or build a home which has a total value of more than $750,000 will not be eligible for the grant.
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