The rise of interest rates

As Australia shifts out of the Global Financial Crisis, big business cannot help but breath a sigh of relief. Everyone knew the end of the world had not been reached, but for some reason, it was announced that we had faced the worst economic state since the Great Depression of the late 1920s. This misnomer was in fact very clear as government stepped in to lend the biggies interest-free loans of huge amounts of cash, as they sought to reestablish positive and manageable lending criteria.

Have mortgages become more difficult to acquire? Yes, they have, with many lenders only willing to lend up to 90% of a loans value.

Stay tuned for details of a lender who will still lend you at 95% LVR, requiring you to put down only 5%.

For instance:

The house cost is $500,000
Bank will lend you $475,000
Mortgage Insurance $18,000
Stamp Duty is about $20,000

So on a $500,000 property you would need to come up with: $25K + $18K + 20K = $63,000

You would have a loan of $475,000 to begin paying off.

At an interest rate of 7%, you would need to pay $2770 a month in interest alone = $640 a week in interest.

Get in contact with us to find out who this lender is.