Loan school

From going solo to co-buying, the structure you choose could be key in achieving your goals.

Natasha Vrsecky 2024-04-04T23:59:00.000Z ・ [ "<p>When it comes to property ownership structures, there is no one-size-fits-all approach. </p><p>So, whether you’re thinking about going it alone or teaming up with others to get onto the property ladder, let’s talk about your options.</p>", "<h3><b>Buying solo</b></h3><p>Buying property alone is known as sole ownership. As a sole owner, you have the decision-making power to lease, renovate, or sell the property.</p><p>It also means that financial responsibility will fall entirely on your shoulders. So before jumping in, create a budget that considers all expenses including the initial deposit, ongoing loan repayments, rates and maintenance costs. </p>", "<h3><b>Co-owning with your partner, family, or friends</b></h3><p>Buying property with loved ones can be an exciting venture. However, it’s important to consider whether a joint tenancy or tenants in common structure works for you.</p><p>Joint tenancy is where you and your co-owners all hold the property together. This is a common option for married and de facto couples, particularly when all assets are shared.</p><p>Being tenants in common is a more flexible structure that supports those with different interests and financial capacities to buy together. Depending on the circumstances of the co-owners involved, you may agree to hold unequal shares in a property.</p>", "<h3><b>Investing through a company or trust</b></h3><p>A trust is another option you could buy property through. Generally, trusts involve the holding and management of assets on behalf of beneficiaries. While it can be a more complex way of owning real estate, it could provide asset protection, tax flexibility, and estate planning benefits.</p><p>A company is a legal entity that can buy, sell, and take out loans on property. Depending on the structure, a company could protect shareholders from personal liability of company debt while potentially providing tax benefits and asset protection.</p>", "<h3><b>Chat with an expert</b></h3><p>There are many ways to own property — it’s just a matter of finding the structure that helps you achieve your goals. It is important to discuss these options with a lawyer or accountant before making your choice.</p><p>For guidance on your lending journey, speak with your local <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p><p></p>" ] min read

Which option could suit your circumstances?

Robyn Slater 2024-03-25T03:46:00.000Z ・ [ "<p>If you’re eyeing a special purchase or project but prefer not to pay upfront, a <a href=\"/personal-loans/\" uuid=\"437f4c2c-150f-4efe-8146-8ff1c14d686f\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">personal loan</a> or buy now, pay later (BNPL ) service could fit your needs.</p><p>With both offering fast access to funds, it’s important to understand the differences and how they could work with your plans.</p><p>To help you make an informed decision, here are some questions to ask.</p>", "<h3><b>What are the costs?</b></h3><p>BNPL options allow you to purchase the things you want now and then pay in instalments without interest. Keep in mind that <a href=\"/blog/loan-school/the-real-cost-of-buy-now-pay-later\" uuid=\"1b3aad34-228c-4052-97ca-23c104553356\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">BNPL can be difficult to track</a> when you make several purchases, and late fees and interest rates can apply for delayed repayments.</p><p>Personal loans often have up-front fees attached such as origination and application fees. However, they offer a predictable repayment structure which can give you a clear understanding of the overall cost and interest included.</p>", "<h3><b>What are the spending limits?</b></h3><p>When using a BNPL service, there are often restrictions on what you can purchase and where you can purchase from within your set account limit.</p><p><a href=\"/blog/loan-school/keep-your-goals-on-track-with-a-personal-loan\" uuid=\"4a4ca70e-d383-4ee8-9fa2-3cb64b55d3cc\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Personal loans</a> are a versatile and flexible option for borrowers. With access to a pool of funds, the uses range from debt consolidation to home improvements and travel plans. Typically, personal loans also offer a higher limit.</p>", "<h3><b>What&#39;s the application process?</b></h3><p>Applying for a BNPL service is usually a simple online process which could see your application approved instantly, depending on the platform.</p><p>Personal loans are also available through <a href=\"/personal-loans/\" uuid=\"437f4c2c-150f-4efe-8146-8ff1c14d686f\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">online applications</a> with fast approval times. Depending on your circumstances, some lenders like Liberty even offer same-day funding.</p>", "<h3><b>Who can provide support?</b></h3><p>If you’re weighing up your options, getting advice can be a smart step. Consider speaking with a lending expert such as a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser </a>to find out more about personal loans.</p><p>For support to turn your grand ideas into reality, reach out to your local Liberty Adviser today.</p>" ] min read

Take a closer look at how an SMSF loan could work for you.

Shelby Waugh 2024-02-14T18:54:00.000Z ・ [ "<p>Considering property investment through your superannuation? A <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">self-managed super fund (SMSF) loan</a> might be an avenue worth exploring.</p><p>SMSF loans may help you use your superannuation to invest in property for your retirement. </p><p>Here’s what you should keep in mind.</p><h3><b>Getting started</b></h3><p>Borrowing in your SMSF to buy property requires some forward planning. To set yourself up for success make sure you speak with a lending specialist experienced in SMSF loans.</p><p>The right lending specialist can guide you around how much of a deposit you’ll need, any costs associated with the loan and what information, such as trust deeds, the lender will need to review.</p><h3><b>Diversification options</b></h3><p>Some lenders like Liberty offer SMSF loans for both <a href=\"/smsf-loans/residential-smsf-loans\" uuid=\"00dbdc4e-0b48-4982-a02e-545b334b1d5c\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">residential </a>and <a href=\"/smsf-loans/commercial-smsf-loans\" uuid=\"521fc98e-c5a3-4f6d-adc8-bbc1b663e42d\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">commercial property</a> investments, giving you more options.</p><p>For business owners, it&#39;s worth noting that you could potentially lease your SMSF commercial property investment back to your own business. </p><p>There are often different loan requirements depending on the type of property you’re buying, so be sure to clarify these upfront.</p>", "<h3><b>Navigating changes</b></h3><p>Investment strategies, especially for retirement, require a long-term outlook. So, it’s important to prepare for changes in the wider economy or your personal circumstances.</p><p>Some lenders offer refinancing options for SMSF loans, which may be helpful if your needs change or repayment challenges arise.</p><p>Remember, only the property purchased with an SMSF loan is used as security, not the other assets within your SMSF.</p><h3><b>Some finer details</b></h3><p>Investing in property through an SMSF comes with a few restrictions around how the property can be used. Additionally, lenders may have different conditions and requirements for their SMSF loans.</p><p>Chatting to a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> when you start thinking about an SMSF loan could help you understand your next steps forward.</p>" ] min read

Navigate the year ahead with expert direction.

Natasha Vrsecky 2024-01-22T23:59:00.000Z ・ [ "<p>With a new year comes new possibilities, but if you’re feeling a little lost in the current climate — you’re not alone.</p><p>Here are four ways a broker can help adjust your sails and guide you through your lending journey.</p><h3><b>Giving you a fresh start</b></h3><p>If you’re feeling the pinch after the holiday season, a budget refresh could be just the thing you need to take on the year ahead.</p><p>From managing unexpected expenses to consolidating debt, a broker can help simplify your setup with a tailored personal loan solution — so you can focus on the things that matter most.</p><h3><b>Heading towards home buying</b></h3><p>Wondering if homeownership is still on the cards for 2024? Speaking with a broker could reveal a new window of opportunity.</p><p>Whether you need help understanding your <a href=\"/blog/loan-school/understanding-your-borrowing-power\" uuid=\"a0e2f246-33ff-4098-83be-fb8668cba24c\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">borrowing power</a>, finding a loan, or navigating the application process, a lending expert can provide the guidance you need to move towards your goals.</p>", "<h3><b>Maintaining business buoyancy </b></h3><p>As inflation impacts how Australians shop, business owners are constantly on their toes. With a broker by your side, you can explore a whole new world of commercial opportunity. </p><p>From accessing a line of credit to financing new assets, they can find a lending solution that helps your business rise with the tide and continue to grow.</p><h3><b>Discovering free-thinking options</b></h3><p>When it comes to lending, your unique circumstances deserve a unique approach.</p><p>More than mortgage brokers, Liberty Advisers provide personalised support across a range of lending solutions. </p><p>So, if your New Years resolution calls for a free-thinking home, investment, business, personal, commercial, SMSF, or custom loan solution — speak with your local <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p>" ] min read

Consider your loan options before making the electric switch.

Robyn Slater 2024-01-19T03:46:00.000Z ・ [ "<p>With more electric vehicle (EV) models and charging stations being rolled out across Australia, you may be wondering how you can get your hands on a greener car.</p><p>As the EV market continues to accelerate, there may be more lending options than you think.</p><p>Whether it’s your first EV or you’ve taken this environmentally-friendly route before, here are some things to consider when deciding how to fund your purchase.</p>", "<h3><b>Car loans</b></h3><p>Whether your car is for personal or commercial use, there are many <a href=\"/car-loans/\" uuid=\"e44db8e5-5bde-448f-91db-bc8e32038df1\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">car loans</a> available to help you get behind the wheel of your new EV sooner.</p><p>Some lenders like Liberty, even offer reduced rates on car loans for electric vehicles. To explore your options and what could work for you, reach out to your Liberty Adviser.</p>", "<h3><b>Personal loans</b></h3><p>Depending on your circumstances, a <a href=\"/personal-loans/\" uuid=\"437f4c2c-150f-4efe-8146-8ff1c14d686f\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">personal loan</a> is another lending option with fast approval times that could put you in the driver’s seat.</p><p>Unlike a car loan, a personal loan gives you the flexibility to buy your vehicle and use any remaining funds for either car-related expenses or another purpose.</p>", "<h3><b>Driving towards savings</b></h3><p>Not only could relying on electric charging rather than fuel make a big difference to your wallet – there may also be other ways to help your hip pocket when buying an EV.</p><p>Depending on your state or territory, you may be eligible for free or discounted stamp duty and registration, or other special rebates and subsidies.</p>", "<h3><b>Ask those in the know</b></h3><p>Before driving off, consider speaking with a broker or Liberty Adviser to help find a solution fit for your lending needs.</p><p>They can help you navigate the lending process from start to finish – including assisting you to secure <a href=\"/blog/free-thinking/get-a-better-car-deal-with-finance-pre-approval\" uuid=\"0bd49546-781d-4d85-a89a-7aaee81ca324\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">car loan pre-approval</a> so you can buy with confidence.</p><p>Get moving on your vehicle plans today by reaching out to your local <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a>.</p>" ] min read

There’s more than one way for first homebuyers to reach their property goals.

Jess Dickers 2023-11-30T05:37:30.025Z ・ [ "<p>If you’re planning to step onto the property ladder and find yourself facing some challenges, there could be another road to take.</p><p>Here are some pathways to consider outside the conventional route to homeownership.</p><h3><b>Low deposit home loans </b></h3><p>The process of pulling together a large deposit can be a challenging experience that takes time. The good news is there are options to help fast-track the process.</p><p>Some lenders, like Liberty, offer <a href=\"/home-loans/low-deposit-home-loans\" uuid=\"8bbae52f-72b8-480e-8e6e-0a9137f862e0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">low deposit home loans</a> allowing you to borrow up to 95% of the property price. </p><p>Lending costs such as Lenders Mortgage Insurance (LMI) can also be added into your loan and paid over time. This could mean saving less for the deposit and opening the door to your new home sooner.</p>", "<h3><b>Government support</b></h3><p>To help first-time buyers get into the market, Australian state and federal governments offer several types of support, such as the <a href=\"/blog/loan-school/help-for-first-home-buyers\" uuid=\"3cea7e9c-9e88-4114-a755-c5248c42ed4c\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">First Home Loan Deposit Scheme (FHLDS)</a>. </p><p>Under the FHLDS, those eligible could buy a house with a deposit as low as 5%. A Liberty Adviser can help you explore the different government schemes available and your eligibility.</p><h3><b>Using a guarantor</b></h3><p>A guarantor is a person who offers up some of their own home equity to help you secure a home loan. The guarantor co-signs the loan and essentially agrees to cover the repayments if you are unable to.</p><p>While using a guarantor could mean you pay a smaller deposit, you both need to understand the obligations involved before entering into this agreement.</p><h3><b>Buying an investment property</b></h3><p>First-time buyers could get their foot on the property ladder sooner by <a href=\"/blog/investor-central/rentvesting-live-where-you-want-and-buy-where-you-can-afford\" uuid=\"dd200302-2beb-4261-9b41-40563dd06e79\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">rentvesting</a> rather than buying a home to live in.</p><p>By purchasing an investment property in a more affordable location and renting in the area you wish to live, you could get into the market sooner and with a smaller deposit.</p><p>To explore this and any other pathway available on your homebuyer journey, speak with a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p>" ] min read

From saving deposits to alternative lenders, getting a loan may be simpler than you think.

Shelby Waugh 2023-10-10T10:00:00.000Z ・ [ "<p>So, you&#39;ve made a plan and set a goal, now all you need is to get that loan. When you’ve had your sights set on something for a really long time, it can be daunting to think about your finances – after all, things like buying your first home, finally getting that new car, or achieving the dream of starting your own business are big goals to go after.</p><p>But getting a loan isn’t as daunting as it might seem. In fact, it’s probably simpler than you think. All it might take is a few simple tweaks and you could be well on your way to your financial goals.</p><p>Well, now is the time to get prepared to see that big green tick of acceptance, because I have done the legwork for you and found eight tips that will help you get a loan approved.</p><h3><b>Do your research</b></h3><p>Just like no two coins are the same, neither are lenders – so do your research to make sure you are applying for a loan with a lender that is suitable for you.</p><p>There are plenty of resources to help you figure out what you need and what loans you should apply for. I also recommend talking to a mortgage broker or lender; they can help you find the right loan option or features for your circumstances.</p>", "<h3><b>Look outside the one-size-fits-all approach</b></h3><p>It’s easy to go with the standard approach to getting a loan. But the stock standard is exactly that – standard. And that doesn’t suit everyone.</p><p>Sometimes what you need is a lender that takes a different approach – someone who can think outside the box to get you closer to your goals. Someone like Liberty.</p><p>Liberty’s mission is to provide free-thinking finance solutions to help people from all walks of life to achieve their dreams. Unlike traditional lenders, Liberty recognises that a checkbox approach isn’t feasible in the modern world.</p><p>Rather than just looking at the typical things to assess suitability, they look at the bigger picture. If you’re a boss with your own business or own a funky side hustle, you’re assessed as such. Maybe you have a small deposit or have had a few financial hiccups – don’t be discouraged. Liberty may just be able to help you.</p><p>Whether you’re after a house, car, business, commercial or SMSF loan, Liberty will treat you as a whole person, not just as a number.</p><h3><b>Understand your credit history</b></h3><p>When I was 25, I got my first credit card and exceeded the credit limit so fast that I needed my dad to bail me out. Now, this isn’t my proudest moment. But it’s definitely been my most valuable, as this is how I learnt about credit scores. And it’s important that you understand yours.</p><p>Lenders often want to know that you’re in good financial shape before you borrow money. One way they check this is your credit history and your credit score, which is a simplified number representing your financial past. In Australia, credit scores range from 0 – 1,200 and the higher your credit score is, the more likely it is to have your loan approved.</p><p>There’s a lot of easy-to-use services online that can tell you your credit history and score. And you’re entitled to check it for free every three months.</p><p>Keep in mind there’s a number of things that can impact your credit score, from late payments to your employment history and even upgrading your phone.</p><p>But if your score is looking a little lacklustre, don’t worry. There are plenty of ways to improve it, including paying your bills on time, growing your savings and regularly paying down other debts.</p><p>And remember – every application for credit goes on your credit report. So, it’s important to only apply with lenders who you feel are compatible with your needs and mission.</p>", "<h3><b>Getting your money in order</b></h3><p>Who doesn’t love a good shopping spree? Or a cheeky dinner and drinks in town? It’s the little things in life, right? But when you’re in the market for a loan, maxing out the credit card can really work against you.</p><p>While you can still enjoy the odd after-work cocktail, keep in mind that lenders love to see consistent spending and consistent savings. So, if you’re thinking about booking a holiday to Europe, it might be best to wait on it.</p><p>Just like lenders love good spending habits, they love seeing debt being paid off. Any existing debt you have could impact your chances to get approved. Yes, even your cheeky Buy Now, Pay Later online order. So, try to pay it down the first chance you get.</p><h3><b>Save for a deposit</b></h3><p>Let’s face it – saving can sound much easier than it actually is. But if you can start saving even a small amount on a regular basis, it can really help your application and your credit score.</p><p>A deposit shows that you’re capable of putting money aside for something that matters. Not to mention, the bigger your deposit, the less you’ll have to repay. Your deposit means you won’t need to borrow the whole loan amount, only the gap of the total amount you need. Less borrowing equals your loan being paid off quicker.</p><p>Generally, the accepted deposit amount is 20 per cent of the total loan amount. But let’s face it – that’s a lot of money to save. However, there are lenders who can help you reach your goals even if you have a small deposit.</p><h3><b>Consider a guarantor</b></h3><p>Sometimes we need a bit of help to reach our goals. This is where a guarantor comes in.</p><p>A guarantor is someone who co-signs your loan guaranteeing that they will cover the loan repayments if you run into trouble. If you need more borrowing power or have a small deposit or just need a little help getting over the line, a guarantor could be the solution.</p><p>While asking a loved one to help buy a home or start a business can be daunting, it can help bring your dreams to fruition much faster.</p>", "<h3><b>Do your tax returns</b></h3><p>It can be easy to put off doing your tax when you’re self-employed. But having them ready can help get you over the lending line.</p><p>When you apply for a loan as a freelancer or self-employed person, you’ll need to prove your income and employment stability. This can be pretty hard without the tax returns to back it up. Getting on top of these before you apply can help you see that big tick of approval sooner.</p><p>If tax time makes you want to cry, there are other options for people who don’t work the usual 9-5. A number of lenders offer low-doc loans, specifically catered to self-employed individuals and freelancers. So if you’re in that boat, it’s worth exploring your options.</p><h3><b>Check your borrowing power</b></h3><p>Knowledge is power – especially when it comes to borrowing power. If you’re unsure of what borrowing power is, it’s how much money a lender is willing to let you borrow based on your current situation. So, understanding yours is important.</p><p>Borrowing power is based on a bunch of different factors, which differ from lender to lender. A strong credit history, savings and stable income certainly help though.</p><p>The way to check your borrowing power is fairly simple. For example, for a mortgage, you look at your income and subtract all your expenses. Yes, all of them. Even that sneaky 2am cheeseburger. Once all expenditure has been deducted, you add in the loan repayment. This calculation helps lenders decide how much they can lend you and gauge your ability to pay it off.</p><p>If you’re ready to start exploring, Liberty has flexible solutions available. Speak with a Liberty adviser today – they have access to a range of lenders and can help you get to yes sooner.</p><p></p><p>Originally published on <a href=\"https://www.mamamia.com.au/tips-for-a-loan-approved/\" target=\"_self\" linktype=\"url\">Mamamia.com.au</a>.</p>" ] min read

Take a closer look at the ins and outs of this car loan feature.

Shelby Waugh 2023-09-20T19:00:00.000Z ・ [ "<p>If you’ve been floating the idea of <a href=\"/blog/loan-school/everything-you-should-consider-before-purchasing-a-car\" uuid=\"e51d5ab3-d67f-4d21-a0dc-c767631601c5\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">buying a car</a>, taking out a <a href=\"/car-loans/\" uuid=\"e44db8e5-5bde-448f-91db-bc8e32038df1\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">car loan</a> with a balloon repayment could help you drive away sooner.</p><p>Here are some important details to know before signing on the bottom line.</p><h3><b>What is a balloon repayment?</b></h3><p>A balloon repayment is a lump sum amount paid at the end of your car loan term. This amount is subtracted from the principal, reducing the regular repayments over the life of the loan.</p><h3><b>What are the upsides?</b></h3><p>The major benefit of a balloon repayment is that it can reduce the amount of your weekly, fortnightly or monthly loan repayments. This can free up cash flow and help you better manage your budget.</p>", "<h3><b>What are the drawbacks?</b></h3><p>One obvious downside is in the name – the ‘balloon’ or lump sum payment due at the end of your loan term. While it reduces your regular repayment costs, you still pay interest on the lump sum. So, you could end up paying more in total over the life of your loan.</p><h3><b>What happens at the end of my loan term?</b></h3><p>If you agree to a balloon repayment, you’ll have a big decision to make when it’s time to pay at the end of your loan term. You can choose to:</p><ul><li><p>Pay your balloon repayment in full and keep the car.</p></li><li><p>Sell your car, which could help cover the costs of the balloon repayment and give you the opportunity to buy a new car.</p></li><li><p>Trade in your current car for a new one, applying the trade-in value towards the balloon repayment, with any shortfall added to the new loan.</p></li><li><p>Refinance the balloon repayment, so you can keep the car and give yourself more time to pay off the remaining cost.</p></li></ul><p>Need help with deciding your next step, or if a balloon repayment is right for your situation? Speak with your local <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p>" ] min read

Is this payment option right for you and your lifestyle?

April Kenneally 2023-09-19T18:54:00.000Z ・ [ "<p>Whether you’re applying for a new <a href=\"/home-loans/\" uuid=\"bf9448ee-9b38-4589-a285-0d0d0fdc71ef\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">home loan</a> or want your existing loan to work better for you, you’ll want to consider your repayment options.</p><p><a href=\"/blog/loan-school/what-will-an-interest-only-loan-really-cost-you\" uuid=\"dac3a3c4-1455-4f5e-85f8-e02776605e03\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Interest-only home loan repayments</a> are an option where you only pay the interest on your loan for a set period, without reducing your principal amount.</p><p>Here are some things to consider when deciding if interest-only works for you.</p><h3><b>Short-term boost</b></h3><p>When only paying interest, your repayments are lower compared to a loan with principal and interest repayments. This can free up cash flow for other expenses or investments.</p><p>If you’re experiencing a change in circumstances, paying interest only could make your loan more affordable in the short term.</p><h3><b>Total interest</b></h3><p>A downside of an interest-only period is that you aren’t reducing the principal balance of your loan or building equity.</p><p>As the principal amount remains the same, you may pay more in total interest over the life of the loan than you would with principal and interest repayments.</p>", "<h3><b>Changing rates</b></h3><p>When the interest-only period ends, you begin paying back both principal and interest. This means your monthly repayments could increase significantly.</p><p>Interest rates could also change at any time throughout your interest-only period, so it’s important to <a href=\"/blog/loan-school/tips-for-handling-rate-changes\" uuid=\"fdf163b4-f12b-43ee-9af4-d4850e376b0d\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">prepare for repayment increases</a>.</p><h3><b>Handy features</b></h3><p>You may find it helpful to explore other loan features, such an offset account, to help reduce your loan repayments while also growing equity.</p><p>Alternatively, a redraw facility could help you increase your cash flow by allowing you to withdraw funds from extra repayments you have made on your loan.</p><h3><b>Expert support when you need it</b></h3><p>A lending specialist can help you explore your loan repayment options and how to structure your home loan to fit your needs.</p><p>Your Liberty Adviser will take your individual circumstances into account and help you find a solution that works for you.</p><p>Tailored support is just a click away – <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">find your local Liberty Adviser</a>.</p>" ] min read

Small changes to your finances can make a big difference to your borrowing power.

Shelby Waugh 2023-07-31T04:52:11.362Z ・ [ "<p>Your borrowing power could have a big impact on how soon you reach your home ownership goals.</p><p>Here are five helpful tips that could improve your chances of getting the loan amount you want.</p><h3><b>Reduce your credit card limit</b></h3><p>Consider lowering your limit, or even cancelling your credit card if it works for you.</p><p>When assessing borrowing power, lenders tend to look at your maximum credit limit, rather than how much credit you’ve used. So, even if your card is just for emergencies, consider <a href=\"/blog/free-thinking/how-to-manage-credit-card-debt-with-rate-rises\" uuid=\"417fd651-1323-41d7-a692-d4dd657e04b9\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">whether your current limit is right for you.</a></p><h3><b>Spring clean your spending</b></h3><p>It’s easy to set and forget your finances, but a regular <a href=\"/blog/loan-school/your-mid-year-finance-check-up\" uuid=\"fb78c20b-7955-47af-a7a6-afd90b94dcef\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">finance check-up</a> could help speed up your journey to reaching your goals.</p><p>You may find it helpful to check your expenditures, review your existing loans and create a budget. Even a few small changes could help set you up for success.</p>", "<h3><b>Build your deposit</b></h3><p>Lenders typically like to see a history of regular savings. And the bigger your deposit, the less it becomes a limiting factor to how much you can borrow.</p><p>While saving up for a home loan deposit is no easy feat, even an extra $20 a week could have a positive impact.</p><h3><b>Deal with your debt</b></h3><p>Just like credit cards, any existing debt can affect how much you can borrow. If you’re juggling multiple loans, you may want to consider <a href=\"/blog/free-thinking/don-t-let-debt-get-you-down\" uuid=\"fc646dcf-c8f8-471e-853e-e4c33e010f1d\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">consolidating your debt</a>.</p><p>One loan means one easy-to-manage payment, which could be easier to get on top of. Consider discussing your debt consolidation options with <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">your local lending expert.</a></p><h3><b>Expand your options</b></h3><p>Different lenders use different criteria to determine borrowing power. A free-thinking approach to lending could be just what you need to get the loan amount you want. </p><p>A <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> can help you navigate the lending landscape to maximise your borrowing power and help you achieve your home ownership dreams faster. Get in touch today.</p>" ] min read