Fundamentals Archives - Page 2 of 3 - Pearl Financial

Category Archives for "Fundamentals"

Jun 23

How to calculate Loan-to-Value Ratio (LVR)

By Shane | Fundamentals

If you’re in the market to buy a new property or refinance an existing one, then the concept of Loan-To-Value ration (LVR) is an essential concept to understand. It is particularly important for property investors as it allows the astute investor to understand their equity position and whether they are able to start planning their next property acquisition.

In this article, we will cover off on what loan-to-value ratio is, why LVR is important, and how to calculate LVR.

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May 05

Confused About Pre-Approvals? Follow These Three Steps

By Shane | Fundamentals

So, you’re buying your dream home. First and foremost, that’s a great decision. It’s a smart investment; it’s a long term investment; and at the end of the day, for most people owning is better than renting. So, you’ve made a decision and it now comes down to the pre-approval process.

Pre-approval is a very important and critical step. It’s important to do that and make that the first step, prior to looking at any homes. Pre-approval is a critical step because what pre-approval allows you to do is to determine if you’re able to buy. It’s essentially important to get pre-approved before you begin looking for your dream home. Confused about pre-approvals? There are a few things to understand and get in order. You may follow these three steps to ensure that you get the home loan that’s right for you.Continue reading

Apr 14

Paying Off Your Mortgage Early… Does It Actually Make Sense?

By Shane | Fundamentals

Should you pay off your mortgage early? Does it actually make sense? It’s a very worthy question to ask and this article will help you answer that question for yourself.

Aside from thinking about whether to pay off your mortgage early or not, perhaps, you’ve also been considering about growing your wealth in the future. If that’s the case, just keep on reading. What this article can do to help you is go through a series of questions that you can ask yourself so that you can make a better assessment for your situation and make the decision for yourself.Continue reading

Apr 11

The No-Nonsense Guide To Lines of Credit

By Shane | Fundamentals

A line of credit is an arrangement made between a bank and a borrower. The bank offers a maximum loan amount to the borrower, which can be drawn upon at any given time. The borrower which can be an individual, business or government entity has the advantage of taking out as much as they want up to the maximum amount. Continue reading

Apr 10

Hidden Costs Of Homeownership: Strata Fees, Land Tax & Council Rates

By Shane | Fundamentals

The Australian dream of homeownership has for decades been seen as the foundation stone for financial prosperity. There are, however, many costs of owning a home that you just don’t see when you’re renting. As property prices stabilise and interest rates remain relatively low, there looks to be renewed interest from first home buyers entering the property market. The move to homeownership certainly makes more financial sense than renting and paying off somebody else’s mortgage, right?

Buying your own place can be a path to a solid financial future because the mortgage payments you make every month lead to an increased home equity and the rising values of home, which will eventually add to your asset. However, potential buyers who aren’t prepared for the true cost of owning a property may be shocked by the bite homeownership can take out of their wallet in addition to their mortgage payments.

So, where does your money go?Continue reading