77 Raleigh St,
Essendon VIC 3040
Home loans
Access the money you need to get the house of your dreams with Logic Partners.
How Can Logic Partners
Help With Home Loans?
At Logic Partners, we work with over 35 lenders to ensure that you can get the most suitable home loan for you. Whether you’re looking to purchase your first property, a family home or an investment property, we can help you navigate this tricky field with our extensive financial experience and evidence-based strategies.
Deposits
Your deposit is the upfront amount you pay for a property. With a home loan, you can borrow the money you need to cover the rest of the property’s purchase price. However, when it comes to deposits, it’s important to remember that a larger deposit is often the better choice as it reduces the size of your loan and potentially the amount of interest payable over time.
You are also more likely to have your loan approved with a larger deposit as the lender will perceive there is less risk in providing you with the money. There may also be stricter lending criteria for smaller deposits. Logic Partners can help you budget for a larger deposit or connect you with lenders that accept smaller deposits to allow you to enter the property market sooner.
Lender Mortgage Insurance
Lenders Mortgage Insurance (LMI) is an additional one-off payment you may have to make when borrowing money to pay for a property. The aim of it is to protect the creditor. However, you will only have to pay LMI if the amount you are borrowing is more than 80% of the property’s value.
This is why a larger deposit can be a more cost-effective option. At Logic Partners, we can help you access loans with lower LMIs, help you source properties that are below the 80% threshold or use evidence-based strategies to locate wealth creation options to help you build that bigger deposit.
Tax and Gearing
Gearing is when you borrow money to invest in a property. You can either positively or negatively gear. A property is positively geared if the overall rental income for the year is more than the annual cost of the property. Conversely, negative gearing is when the annual rental income does not cover the annual cost of owning the rental property.
Gearing can open tax opportunities for you to help you pay off your home loan sooner. For instance, you may be eligible to claim any interest on the home loan to purchase the property as a tax expense. Similarly, loss from a negatively geared property can be offset against other income, like your salary. As a result, you can turn a taxable loss into savings.
If you are intending to negatively gear a property, you need to be vigilant in ensuring you are aware of the inherent risks that come with a property that cannot ‘pay for itself’. However, Logic Partners can help you with evidence-based strategies to allow you to negatively gear properties with minimal risk, allowing you to bolster other wealth creation strategies.
Discover Your Home Loan Options Today
With Logic Partners, you can optimise your home loans, from paying them off sooner to strategically mortgaging to purchase investment properties for future wealth creation. Talk with us today to explore a tailored home loan strategy for you.
Description
The information contained in this website is of a general nature and does not take into account your personal needs and requirements. The figures shown in the calculators do not constitute financial advice. Lender policy, term and conditions, fees and charges apply.