not the banks
from over 35 different lenders, to find
the loan with the right fit for you.
you informed every step of the way
Fit Loans exists to provide a fresh, honest and customer focused approach to lending.
About Us
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Our Services
Home loans
Refinancing
Business lending
Investment loans
Construction loans
Commercial loans
Motor vehicle finance
Asset finance
Debt consolidation
Self managed super funds
Why Choose Us?
Whether you are a first home buyer or a seasoned investor, Fit Loans will find the right loan to fit your needs. We will provide you with quality customer service that you will value for the life of your loan.
- We have access to over 35 different lenders
- Our services are provided free of charge
- We work for you, not the lender
- We will be easy to do business with
- We will always get back to you promptly
- You will be kept informed every step of the way
- We will go the extra mile, every time
- We will listen to what you want
- We will provide a loan solution that fits your needs
- Our team is qualified and fully compliant
Education Centre
Fit Loans believe that you can never learn too much. That is why we have set up an education centre providing informative articles and check lists that can be read online or downloaded for later viewing.
Contact Us
Buying a home or investment property can be daunting but it can also make you feel elated. Either way it all starts with saving for a deposit or accumulating equity in an existing property (the difference between your existing property’s market value and the balance of your mortgage) to use for the purchase of your new property.![]()
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A great goal is to have a deposit or equity that will go towards a home deposit of 20%. While many of us may assume this is 20% of only the property purchase price, you will need to take into consideration property transaction costs such as stamp duty, conveyancing and inspections etc, and then consolidate all these costs to make up your 20% deposit.![]()
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Why 20% you may wonder? Lenders view purchasers who borrow 80% or less as a lower risk. While lenders can offer home loans with lower deposits, the bigger your deposit the lower your loan to value ratio (LVR). ![]()
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What is the significance of a lower LVR? ![]()
For loans with an LVR at or below 80%, lenders will not generally charge you lenders’ mortgage insurance (LMI). ![]()
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So what is LMI? LMI is an insurance policy that the lender takes out to cover their risk if you fail to repay your loan. Some lenders may not take third party insurance but rather take on the risk themselves and charge an alternate risk fee.![]()
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How much you borrow will determine whether and how much LMI you will pay.![]()
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Let’s break it down.![]()
The LVR (usually calculated as a percentage) is the property value in comparison to the loan amount. ![]()
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LVR is calculated by dividing the loan amount by the property’s value (as valued by the lender, not necessarily the price you paid) and multiplying it by 100. ![]()
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A LVR above 80% will most likely result in the payment of LMI.![]()
For example, a property valued at $825,000 and a loan amount of $701,250, you could expect to pay just over $9,000 LMI.![]()
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You may now be thinking that you will be required to save a little extra to cover the cost of the LMI, however lenders will allow you to borrow the cost of the insurance.![]()
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So how can you top up your home loan deposit savings sooner? ![]()
Contact us for our 12 Step Guide to Speed Up Your Home Loan Deposit Savings for a few ideas on making small changes to your ‘everyday’ spending that could add up in the long term.![]()
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Discuss your unique situation with your finance specialist and have your options presented to you clearly.![]()
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Did you know some lenders apply a lower interest rate to borrowers with a lower LVR?![]()
The bigger your deposit, the lower the LVR. The lower the LVR, the lower your risk to the lender, hence a more competitive interest rate. Plus, since you are borrowing a lower loan amount, you will pay less interest over the term of the loan.![]()
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For your peace of mind, those who have never ventured into the property market might opt to seek advice from a finance specialist. With experience in mortgage applications, LVR and LMI calculations, we are here to step you through the process and help you through your home buying journey.![]()
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After all…![]()
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Your Finance Matters
yourfinancenews.com.au
It has been suggested it could take a person nine years to save for a deposit on a home in capital cities and just over seven years in regional areas1? But what if there were small incremental actions...
For potential home owners or property investors, looking at buying a home that hasn’t yet been built can be a more affordable and flexible option than an existing property.![]()
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Presently, one of the contributing factors for our robust property market is strong buyer demand unable to be satisfied with the limited supply. This demand surplus is therefore looking for other ways to be satisfied and has resulted in off the plan sales making a comeback. Off the plan sales have also proved to be more popular in rising markets as many buyers feel that buying at today’s prices will deliver a healthy capital gain on the project’s completion1.![]()
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The current price gap between house and unit prices has also driven buyers towards an apartment lifestyle (the median unit price is now 66% lower than the median house price) further supporting a return to off the plan apartment sales.![]()
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Looking at entering the property market and struggling to find opportunities in the current marketplace? Potentially an off the plan apartment purchase could be a viable option.![]()
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Although not as straight forward as a bricks and mortar purchase, purchasing off the plan may have some advantages, but it’s important to be well informed before you jump in.![]()
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Deposit down now, buy later ![]()
Ready to pay your deposit now on an off the plan purchase? There is more to consider than just when your apartment will be completed and if it is likely you will receive a capital gain upon completion. ![]()
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Before making a decision, you will need to carry out your research, weigh the risks and understand as much as you can about what you could be getting into.![]()
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Consider these factors before making a decision:![]()
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Research the developer and builder – Find out as much as possible about the track record of their completed projects to ensure they are reputable. Visit and inspect the quality of their previous developments.![]()
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Beware of rental guarantees – Developers will sometimes offer rental guarantees to entice investors and offer them peace of mind with rental income. While there are advantages with rental income stability (property management is sometimes included), the property may be sold at an inflated price as a way for the developer to subsidise the rental guarantee. Guarantees can vary and it is important to read the fine print.![]()
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Read the legal fine print – Buying off the plan is vastly different to buying an established property. We highly recommend you engage a legal expert and seek independent legal advice to review the contract before you sign the paperwork. There are varying terms and conditions related to off the plan contracts. For example, a sunset clause is a statement that puts a time limit on the contract’s validity. If settlement has not taken place by the end of the date in the sunset clause, both parties are legally entitled to walk away from the contract. Plus, off the plan contracts will have a 10-business day cooling off period – twice as long as buying an existing home. ![]()
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Choose the right time to apply for a loan – Most lenders will assess your financial situation when the apartment is close to completion. While most lenders can provide an ‘indicative’ approval at the time of signing contracts, given construction could take up to two years, your circumstances may have changed and the initial approval is no longer applicable. If there is an adverse change to your financial circumstances, you could risk being declined and defaulting on the contract.![]()
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As a minimum, we would recommend that you determine your ability to finance the purchase of the apartment before entering into the purchase agreement. As your financial specialist, we are here to ensure this option fits your long-term goal and financial circumstances.![]()
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Many say the sooner you can get on the property ladder the better. But it shouldn’t come at the cost of your financial future. Ensure you do your due diligence and look beyond the lavish display suites and fancy brochures.![]()
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After all…![]()
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Your Finance Matters![]()
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Further info - bit.ly/3ndU3QH
yourfinancenews.com.au
Buying off the plan is again becoming increasingly popular. Are you thinking about paying a deposit now to buy a brand new off the plan apartment sometime in the future? Before you sign on the dotted ...
There’s no ‘one size fits all’ when deciding to purchase your first home and repay your own mortgage rather than continue to rent and repay someone else’s mortgage.![]()
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Let’s face it though, the ever-increasing rise in property values has potentially put off many home buyers, especially first timers and those earning a low-to-average income. ![]()
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You might be surprised that at the moment over a third of Australian properties are cheaper to own than rent.![]()
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This was calculated by approximating the mortgage repayments (using the assumption of a 20% deposit, interest rate of 2.4% and a loan term of 25 years) and comparing it against rental estimates for housing across Australia.![]()
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However, location plays a large part in determining where it is more affordable to buy versus rent. The majority of these locations are regional areas, while in capital cities renting could still be cheaper in the short term.![]()
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So how can this be? The short answer is that in the current environment, most borrowers are able to obtain a loan at an interest rate that is below the rental yield that would be achieved on the property. As rental yields are generally higher in regional areas, the majority of properties that are cheaper to buy than rent are within these locations. ![]()
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Aside from location, there are additional factors to consider in buying vs renting:![]()
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As an owner-occupier![]()
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* You will need to factor in the cost of stamp duty, council rates, water rates and home maintenance costs that would otherwise be paid by the landlord if you were renting.![]()
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* While repayments may be higher than renting, you need to consider that part of your mortgage repayment is likely to be paying down your loan principal and deemed as forced savings.![]()
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* As an owner, you have the benefit of growth in the capital value of the property over time.![]()
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* Any surplus funds you have can potentially be used to pay down your mortgage making you closer to outright home ownership.![]()
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* At some time in the future, you will have repaid your mortgage unlike continuing to rent. ![]()
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As a renter![]()
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* You never stop paying rent, even when the landlord has repaid their mortgage.![]()
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* Rental costs are likely to increase over time and are linked to the supply and demand for property, while repayments on a mortgage will be linked to movements in interest rates (that can also be fixed).![]()
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* Your rental tenure at the property can be out of your control should the owner wish to sell the property or have alternate uses for the property.![]()
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* You have greater flexibility to move to a new property without all the responsibility of selling and buying property.![]()
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Still uncertain if you should buy or rent? Click the following link to read our guide on the pros and cons of both.![]()
yourfinancenews.com.au/mec-pf-september-2021-cta-page/?pnum=03388&campaignSubscriberId=29695&emai...![]()
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Could now be the time to become a home owner?![]()
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Take advantage of historically low interest rates![]()
Official interest rates and resulting borrowing rates are at an all-time low, having the effect of reducing your loan repayments. It is unlikely that repayments are going to be more affordable than they are in the current market. ![]()
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Government grants![]()
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For many the dream of owning their own home may feel like an unattainable goal. However, depending on your eligibility, there are government schemes available to help you get your foot in the property market.![]()
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* The $10,000 First Home Owner Grant (FHOG) is available to eligible first home buyers (FHBs) who purchase, build or substantially renovate a house, townhouse, apartment or unit![]()
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* An additional 10,000 places of The First Home Loan Deposit Scheme (FHLDS) for eligible low to middle income earners was made available on 1 July 2021![]()
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* The Family Home Guarantee scheme is available until 30 June 20254 to eligible single parents with dependants who want to build or buy a home with as little as a 2% deposit – subject to their ability to service a loan, regardless of whether that single parent is a first home buyer or a previous home owner ![]()
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* There are other state and territory grants, concessions and incentives available. Talk to your finance specialist (us) to help you understand which ones may be applicable to you.![]()
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Struggling to afford a property, but still want to get into the property market?![]()
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Have you considered rentvesting? This is where you continue to rent, however you purchase your first property as an investment property. While you may miss out on a number of the first home buyer grants, the rent from your tenant will assist you with the repayments making this a potential financially viable option.![]()
The first step in determining your property journey is to understand and define your personal situation. Book an appointment with the office and we will sit down and help you with your options. ![]()
After all…![]()
Your Finance Matters![]()
Frank Zinghini
Many of us are guilty of using ‘Buy Now Pay Later’ (BNPL) to buy a new pair of shoes, clothes or even a short break or holiday.![]()
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However, it is concerning that some Australians have even resorted to using BNPL for essential items like healthcare and car repairs, oblivious of the consequences.![]()
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Online shopping peaks![]()
Not surprisingly, online shopping has accelerated nationwide during the COVID-19 pandemic and lockdowns, topping out at a 57% increase year on year. In fact, around four in five households (or almost nine million) purchased online at some point during the year.![]()
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It is not only online shopping sales that have increased, Aussies have also been using BNPL more often to satisfy their spending wants and needs. ![]()
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Buy Now Pay Later sales increase![]()
Afterpay, Australia’s leading BNPL platform, has not only increased sales by 63% year-on-year but also added another 18,000 merchants to reach 48,000 – a 50% yearly increase.![]()
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The banks are even getting on board!![]()
It’s easy to see why even the big banks are getting on board, as BNPL offerings are competing against the traditional credit card for a share of online sales. ![]()
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The Commonwealth Bank of Australia is entering the BNPL market with the soon to be launched ‘StepPay’. With StepPay, you can split purchases from $100 to $1,000 into four repayments where Mastercard is accepted.![]()
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Beware the risks of BNPL![]()
We are all aware of the benefits of BNPL in the lead up to Afterpay Day – a bi-annual shopping event traditionally in March and September each year with offers and discounts available for thousands of brands online and in-store. However you need to be conscious of the risks of BNPL. Why?![]()
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For some of us, it can be difficult to make BNPL repayments on top of other financial commitments.![]()
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ASIC, Australia’s integrated corporate, markets, financial services and consumer credit regulator, has released research into the BNPL industry. ![]()
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The research unveiled some concerning facts about the ability of users to make their BNPL payments on time:![]()
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20% missed or were late paying other bills or loans,![]()
20% of consumers surveyed said they cut back on or went without essentials (eg meals), and ![]()
15% of consumers surveyed said they had taken out an additional loan3.![]()
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Before you spend up on Afterpay Day, know the following!![]()
You could be risking the success of your next loan application.![]()
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Using a BNPL service could affect your chances of securing a home loan. Lenders often review what you owe on these accounts and payments made to such services.![]()
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Not all BNPL providers perform credit checks before offering their services, but if you default on a BNPL payment, it could be flagged on your credit report and possibly have a negative impact on future loan applications.![]()
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There are examples of this occurring, with the purchase of a $500 dress using Afterpay almost costing a young woman her dream home4.![]()
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If you use BNPL, other risks to be aware of include:![]()
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* Default payment penalties can be high with the possibility of paying up to 25% of the initial purchase price![]()
* Late repayments can be recorded against your credit report![]()
* It can become easy to spend beyond what is affordable![]()
* You could find yourself in a vicious debt trap by taking out another loan to repay your BNPL ‘loan’![]()
* Having multiple BNPL accounts can become hard to manage and repay when you sign up for more than one service![]()
* Saving for your purchases or using lay-by can ultimately be a cheaper solution and will ensure that you are spending within your means. ![]()
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BNPL arrangements are clearly a popular payment method. While many of us can manage this instant gratification payment scheme, some consumers can suffer the consequences. If we reflect on the basics of how these BNPL companies make their profit, it is clear that the service should be used with caution.![]()
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yourfinancenews.com.au/mec-pf-august-2021-cta-page/?pnum=03388&campaignSubscriberId=29385&email=f...
According to one of the country’s leading lenders, previously only about 15% of Australians fixed their home loan interest rate. However in recent months as many as 50% or so of people are now fixing their mortgages.![]()
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So why such a significant shift towards fixing a proportion of home loans?![]()
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There are a few considerations.![]()
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Historically, home owners who locked in their loan interest rate were looking for certainty and they wanted a set and forget strategy. For example, a first home buyer may lock in their interest rate as they had stretched their financial position and wanted to protect themselves against an increase in repayments and allow a period to get on top of their finances. ![]()
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So why the change now?![]()
When fixing your loan there is always the potential that sometime in the future you would either win or lose financially. If variable interest rates increased, your fixed interest loan would provide a benefit offering protection against increased repayments, however if variable interest rates fell you would obviously miss out on the potential savings.![]()
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Considering official interest rates are now at a historical low of 0.1% with little room for the RBA to reduce rates further, we’re tipping many borrowers feel that interest rates are unlikely to fall further and therefore they’re unlikely to miss out on any potential interest savings.![]()
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The other financial consideration is the relationship between variable and fixed interest rates. Up until 2016, variable interest rates and average fixed interest rates were relatively similar, except for a window in the late 2000s when fixed interest rates were above variable interest rates. This trend has however been broken in recent years. Since the middle of 2019, the average fixed interest rate has fallen at a proportionally faster rate than variable interest rates. ![]()
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As a result, fixed interest rates on average are now lower than variable rates. This gap is now at its largest with fixed interest rates being 151 bps lower than variable rates. ![]()
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This means borrowers are likely to be making lower repayments in a fixed interest loan than a variable rate loan.![]()
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While there are several compelling reasons to fix your interest rate for a period of time, there are also a number of other considerations.![]()
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Further considerations are explained in our ‘Is A Fixed Rate Home Loan Right For You?’ Click photo to read.![]()
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When fixing an interest rate, you are generally unable to:![]()
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* use an offset account against the loan balance, meaning any windfall gains that you may come into will not be able to be applied to your mortgage to further reduce interest costs![]()
use a redraw facility should you urgently require access to additional funds, and![]()
* switch loan products or repay the loan without penalty, therefore reducing your flexibility.![]()
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Many borrowers overcome some of these drawbacks by creating split loans, part in a fixed interest loan providing certainty and accessing current low fixed interest rates and part in a variable interest loan to still be able to utilise the features mentioned above.![]()
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If fixing at least a proportion of your loan is something that suits your financial circumstances, you will need to consider the timing.![]()
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Why? Fixed interest rates are now starting to increase. Since the beginning of March 2021, 24 lenders have increased their four and five year fixed interest rates, with all four major lenders increasing these interest rates by 30 bps3.![]()
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If you’re looking to take advantage of the current fixed interest rate advantage offered by fixed interest rates, contact the office today and we can assist you in identifying a loan suitable for your needs.
yourfinancenews.com.au
Pros and cons of fixed rate home loans Choosing a fixed interest rate home loan does offer comfort and certainty over your loan repayments. But fixing your rate generally comes at the cost of less fea...