Smart tips for paying off your home loan sooner

Wondering how to pay off your home loan sooner? We look at some things you could do.

Australian home loan interest rates remain at historic lows, and the opportunities for paying off a mortgage early are better than ever. Used in conjunction with low rates, here are some extra steps that can speed up loan repayments and reduce your loan balance.

1.Pay fees upfront
When initially taking out a mortgage, lenders will often roll the establishment costs and charges into the loan. While this may help the short-term budget, it’s worth paying these costs separately to lower the overall balance of the loan from the start. Don’t take the rate cut When a lender reduces the interest rate on its home loans, usually in line with a cut in official interest rates, your first thought may be to reduce your loan repayments accordingly. However, by maintaining your loan repayments, you effectively repay more than the minimum loan repayment. If it’s possible to do so, this will help you cut the term of the loan and save on interest.

2. Always challenge your Bank

Your bank is likely to be offering a better rate to a new customer for a lower loan amount than what you are currently receiving. Although obvious, many borrowers take out a mortgage and then stop following the home loan market. With interest rates constantly changing, it pays to monitor the latest rates. If rates go down, contact your lender or broker and ask if they can reduce the rate on your loan.

3. Use an interest offset account

Most lenders allow you to package a mortgage with an interest offset account. An offset account allows you to reduce the amount of interest paid on your loan by offsetting the amount in the (offset) account against your loan balance. Wages and other income can be deposited into your offset account. Note that offset is usually only available on variable rate loans. Lenders will usually charge you a yearly fee for the offset option.

4. Make more frequent repayments
Home loans are often structured so that you make monthly repayments. But making fortnightly repayments instead can reduce the term of a loan and save interest. By making fortnightly repayments, you are paying the equivalent of half of your monthly repayment every two weeks. This allows you to make the equivalent of one extra monthly repayment per year. Extra repayments will ensure the loan balance is lower at the time of the month the interest is calculated.

5. Get a financial package
You can often lock in a discounted loan rate with a financial package and also find special rates on other products and services. Putting those savings into your mortgage is a great way to get the best of both worlds. With just a few easy steps, borrowers can significantly reduce the length of their mortgage and save thousands of dollars in the process. A mortgage broker can assist you in setting everything up.

For more information on how you can pay off your home loan sooner, contact your Stars Broking Services today.

Buying at auctions: What you should be aware of this spring

As Sydney’s weather starts to warm up, so does the influx of properties about to hit the market. Reports predict that an increase in property listings in Spring, could potentially benefit buyers as vendors look to offload their properties before Christmas. Auctions in recent times have become an attractive way of selling with approximately 30% of properties using this method. Yet it is important to be aware of the  buyer requirements and costs involved when bidding in an auction. Be spring ready. Speak to Marco Scannone, an expert broker on 0405 252 808.  

Auctions vs Private Treaty Sales

In the current competitive property market, auctions have become an effective way to determine the true monetary value of a home. Auctions create a competitive bidding environment that lets the real value shine through. It is important you are aware of the buyer requirements and costs when purchasing a property at auction as opposed to a private treaty sale.

Unlike private treaty sales, where the price can be negotiated between the buyer and vendor, auctions move at a quicker rate. Once the hammer falls, the sale is final. This means the buyer is required to pay often a 10% deposit on the spot, locking in the purchase of the property. Property purchased at auction has no cooling off period, which means you must be confident about the purchase decision.

Top Buyer Risks

#1 Lower post property valuations– A significant difference between a private treaty sale and auction is the property valuation process. Prior to paying the deposit for a property sold via private treaty, your Broker will order a bank valuation. In most cases the Bank valuation will confirm the Contract price. This is very important as banks will  lend against the Value confirmed in the Valuation report and not the contract of sale. When you buy a property at an auction, you may be at risk of overpaying for that property (high levels of emotions, bidding wars, cashed up investors etc..). In this case the Bank Valuation might come in lower than the contract price but you only find out when it’s too late because you have already paid the 10% deposit and can’t pull out of the deal! The buyer will have to come up with the shortfall of funds. Of course there are precautions you can put in place to avoid being caught in this situation . Speak to Marco Scannone, an expert broker on 0405 252 808.  

#2 Out of pocket costs– In anticipation of purchasing a property, a buyer usually conducts a building and pest inspection. This can be a costly process and an out of pocket expense if the potential buyer does not win the property at auction.

What if I Change My Mind?

If you buy at an auction and have changed your mind or cancelled the sale, then you may be up for costly penalties and ramifications. The contract for the sale will outline the consequences of withdrawing from the binding agreement. This contract will be likely to include default penalties as well as compensation for any losses experienced by the seller. In addition, other fees will include legal and conveyancing fees, building valuations and inspection costs. The most common situation in which both a seller and buyer can rescind the contract for the property sold at auction is if any of the parties dies or is declared bankrupt prior to settlement.

Steps To Take Before The Auction

Know the costs and commitments required in an auction before you make a bid. These are the steps to consider prior to action.

  • Do your research– Aside from researching the sale and clearance rates as well as median house price for the area, it is important to understand the local marketplace in the area. In addition, look into the current valuation report and succeeding reports in the future.
  • Undertake pre-purchase inspections- This can be a costly exercise if you don’t win the property at an auction. Organise pest and building inspections prior to auction day. If the report comes back and identifies key faults, then ask the selling agent if you can take your builder for an inspection of the property to identify likely repair costs.
  • Ask your solicitor to check the contractDo not purchase a property until your solicitor gives you the all clear. Contracts can be complex and therefore it is important to consult legal advice.
  • Arrange loan pre-approvalSpeak to Marco Scannone today
  • Know your limit and stick to itAvoid bidding over your budget.
  • Register to bid
  • Get your cheque book ready- If you’re the winning bidder on the day, you’ll be required to pay a deposit of 5-10% of the purchase price on the spot.
  • Learn a few Tips and Tricks the pros like Buyers Agents and Real Estate Professionals use to stall the auction and intimidate bidders when buying at auction on behalf of clients….Speak to Marco Scannone, an expert broker on 0405 252 808 to learn more about these tactics.  
What refinancing your next investment will really cost you

What refinancing your next investment will really cost you

With the current movement in the Australian property market, buying an investment property has become a popular decision. Investors are accessing and using their existing equity to expand their investment portfolio. Refinancing an existing property is a common option many of my clients consider. However, refinancing can come with hidden costs. Explore your Investment financing options by speaking to Marco Scannone at Stars Broking Services today on 0405 252 808.

Research shows that the average home loan term for $300,000 is 30 years. During the 30-year duration, your financial situation may change. Therefore, the option of refinancing allows you to change your home loan to suit your new circumstances. Refinancing refers to the process of paying out your current loan and replacing it with a new loan with an existing or new lender. This option may result in a shorter loan term, lower interest rate and reduced monthly repayment.

What does refinancing involve?

Refinance options provide a way to access equity that has accumulated in your existing properties. As your property increases in value so does the value of your equity. Therefore, refinancing becomes an important resource which can be used when expanding your property investment portfolio.
Let’s look at an example:

If you own an investment property worth $600,000 and owe approximately $300,000, you get $300,000 in equity. Therefore by refinancing the existing investment property to gain access to the $300,000 equity. With this amount of security, you may be able to buy a new investment property and use the rental income you receive from it to pay for the mortgage.

Whilst many assume refinancing your existing loan is a good option when looking to access funds to purchase another property, there are hidden costs and precautions you should be aware of.

Watch out for the hidden costs

Depending on your circumstances and existing loan conditions there may be hidden costs if you decide to refinance. In some cases refinancing can usually cost you $800 or more in fees.Other hidden costs include:

  • Loan Discharge Fees: This is also referred to as ‘termination’ fee. Fees will be charged when you pay out your mortgage in full in order to get your title deeds back or transferred to the new lender.
  • Government Fees: This includes discharge of mortgage and mortgage registration. The NSW State Government charges a mortgage registration fee when you refinance. This fee is charged twice, once to remove the old lender and one to register the new.
  • Exit Fees: Banks will impose break costs, which are applied when you bail out of a fixed rate before the rate expires. If you are breaking a fixed rate loan then refinancing may cost you up to thousands of dollars in fees. This is when it’s worth considering an incoming lender who offers a cash rebate upon settlement.
  • Borrowing costs: Lenders can charge upfront fees when you refinance. With some lenders, these are negotiable and therefore worth talking to an expert mortgage broker about. Standard fees include: Loan application fee, Valuation fee and Settlement fee
  • Stamp Duty & Fees: If you decide to increase the size of your loan when refinancing, stamp duty fees may be payable.
  • Time: Refinancing is a costly and timely process. Each time an applicant wants to refinance the individual has to go through the same process of providing documentation.

With extra costs, it is important to speak to an expert broker prior to your refinancing to assess your benefits and ensure you are getting good value for money.


How changes to investment lending will affect you

The Australian Prudential Regulation Authority (APRA) has tightened lending policy on interest-only loans in an attempt to avoid a potential property bubble in the Australian market and manage heightened market risk. These changes require lenders to hold a certain amount of capital. As a result, lenders have started limiting high LVR investor lending— investment loans for 90% LVR and higher, in particular. These changes significantly impact the investor market. Are you looking to invest in property? Speak to Marco Scannone today at Stars Broking Services on 0405 252 808.

What is high LVR?

Loan-to-Value Ratio (LVR) is the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan. Loans with high LVR means the amount you borrow is much higher in relation to the amount of deposit you are required to have. For example, if you purchased a property valued at $300,000 with a loan LVR of 95%, this means you can borrow up to $285,000. The remaining $15,000 is what you need to save. This equates to a 5% deposit. A LVR higher than 80-90% is considered a higher risk loan and will require the borrower to ensure they take out lenders mortgage insurance (LMI).

APRA new policy

With the increased demand in the property market in recent times, high LVR financing has become a popular decision for investors. The value of Investor lending has increased by 21.7%. This increase has raised concern amongst APRA, forcing a stricter policy and regulation towards high LVR investment lending. APRA’s new policy will aim to limit the flow of new interest—only lending to 30% of the total new residential mortgage loan applicants. Currently, interest only lending represents 40% of residential mortgages. Cracking down on high LVR investment lending places restrictions on interest only lending with LVRs above 80%. Since this has been enforced, high LVR lending has fallen, indicating that buyers are now using larger deposits when purchasing their properties. As a result of the new policy, banks have lost their appetite for high LVR investment loans, as many rein in investment borrowing.

Do the APRA changes affect you?

Are you affected by the new APRA lending policy? If you fall into any of the following categories you may be affected:

  • Seeking an investment loan without a 20% deposit
  • Seeking an Interest Only loan
  • First time investor in the market with a high LVR  
  • Investor with multiple properties with plans to release equity to purchase another property

How will this affect your investment financing? Contact Marco Scannone today and visit the website

Purchase your next property for $1,000,000 with as little 5% deposit

The Australian property market is seeing high demand in recent times with many buyers purchasing properties as part of their long term investment portfolio. In April 2017, it was reported that the median house price in Sydney hit $1.15 million. With rising prices and high demand, it is important to strike  the iron while is hot. Recent tightening of governance has forced stricter lending criteria by banks, in particular lenders consider  all loans over 80% of the purchase price to be a high risk. This view has made it harder to get approval to purchase a property. Yet your options are not limited as there is still a number of lenders who are offering loans for 95% of the purchase price. Find out how you can get approved for a 95% home loan for a property value of $1,000,000. Contact Marco Scannone at Stars Broking Services today on 0405 252 808.

Compared to other home loans, the 95%  loan is harder to gain approval due to the increased risk imposed to the lender. Getting approval for this type of home loan is achievable yet it is important you meet the lender’s criteria.

Do you fit the right borrower profile to get approved for a 95% loan?

Lenders are looking for:

  • Clear credit history – Your credit file must be squeaky clean, meaning all payments for credit cards, bills, personal debts must be made on time for the last 6 months
  • Stable employment – You must be in your current job for 6 to 12 months
  • Genuine Savings – All loans require you to prove you have saved 5% of the purchase price. However if this is not the case, other options include 95% no savings loan or a 110% guarantor home loan
  •  Minimal debts – Limited credit cards and personal debts. Those who have 5% of the purchase price in secured debts are often not approved
  •  Reasonable asset position – Lenders want to ensure you have a good asset position in relation to your age and income
  •  Location/ property type – The location and type of your property will influence the approval decision. Lenders are hesitant to approve loans for high rise units in the CBD and smaller town houses.

These are just some of the criteria in which lenders are looking for. Contact Marco Scannone today to find out if you meet this criteria to be approved for a 95% home loan.

Can I borrow more than $1,000,000?

Many lenders will only approve a 95% mortgage up to $800,000. However, with Sydney’s rising property price and the median reaching $1.15 million, purchasing an $800,000 property is nearly impossible. Some less conservative lenders will allow you to borrow up to $1,000,000, due to restrictions imposed by the lenders mortgage insurers. However, it has been reported in some cases lenders reaching a special agreement with their insurer and can consider a 95% loan up to $2,500,000 for those in an exceptionally strong financial position.


Property Investors buying property with NO deposit


Buying a property is part of the Australian dream but with the current market prices, this dream seems unachievable for first home buyers. Over the past five years Sydney property prices have risen to a shocking 70%. As of 2017, the median house price in Sydney suburbs is now valued at $1.15 million. The property prices are affecting all of Australia. Also Melbourne has seen a 7.4 per cent increase in median house prices.

When looking at the Hills District in particular, investors are faced with a seven figure median house price. With the funding of new schools, shopping precincts and parklands – the area is highly sort after, forcing prices to skyrocket. Rouse Hill alone has jumped 32% in just one year.  With the record breaking price increases in Australia, it is important to explore alternative options.

Have you considered buying property with as little as NO deposit?  

When it comes to buying an investment property speak to an expert broker who can help you explore achievable financing options. Call Marco Scannone at Stars Broking Service today on 0405 252 808 to explore your options.

Those struggling to break into the property market have many options available. Let’s explore these options below:

  1. Security guarantor or Family pledge loan

This option is referred to as a ‘no deposit home loan’ as it allows potential buyers to purchase a property with the support of a family member. This is done by securing the deposit shortfall to a property owned by the guarantor, such as your parents or a close family member. Parental guarantees have increased 1.9% in recent years. In 2016 6.7% of new loans were in the form of a family pledge loan compared to 4.8% in 2010. Family guarantee loans have changed in recent years as parents are now no longer required to put the entire house up for security. Banks will take guarantee of parent’s property for a limited amount.

Opting for this financing solution has many benefits:

  • Reduces the time you need to save
  • Removes the costs of mortgage insurance which can add up to $20,000 or $30,000 depending on the size of the loan. Mortgage insurance is payable when the amount you are borrowing is more than 80% of the cost to buy your new home.
  • No additional costs

To better understand family pledge loans let’s look at an example of buying a property valued at $500,000. Normally a savings of at least $100,000 deposit is required, plus stamp duty and legal costs. Now let’s say your parents or family member have a property worth $750,000 which they own outright. The bank will take security for $100,000 (20%) over the parent’s property and will take security for $400,000 over the property you would like to purchase. You will still need to be able to service the entire loan of $500,000 but in this case you won’t need to come up with the 20% deposit upfront. The benefit is that with a Security Guarantor loan you do not need to pay mortgage insurance saving you $16,000. The amount your family/parents guaranteed is $100,000 only.  It is important to highlight that not all Family members/parents which have Equity in their property can go Guarantors on a loan. There are several requirements and each Lender’s policy differs. To find out more call Marco Scannone today.

Alternatively another option when buying a property is a ‘deposit bond’.

  1. Deposit bond

A deposit bond acts as cash substitute and can be used when exchanging contracts. It is a useful option when looking to buy a property and you are unable to immediately produce a 10% deposit or you simply don’t want to use your own savings. The product is especially convenient for investors who may have funds tied up in non-liquid assets or want to maximise their borrowings without having to contribute a cash deposit. There are many options when it comes to deposit bonds. The benefits of using deposit bonds include:

  • Efficient and easy way to finance a deposit for a property
  • Cheaper alternative to bridging finance
  • Maximise interest earned on savings as no cash is required upfront when a deposit bond is used.
  • Deposit amount is fixed and therefore can be used at multiple auctions.

To better understand A Deposit Bond consider this as an Insurance Bond. It is a promise to pay Certificate Issued by an insurance company on your behalf. An example of how it might be used by an investor could be an off the plan purchase with 18 months completion. On signing the contract the buyer is required to pay a 10% deposit and then the balance after 18 months once the property is registered. If the contract price is $700,000, you will need to pay $70,000 cash. Provided you have equity in an existing property as security for the bond, instead of the $70,000 cash you could hand over a Deposit Bond which would cost you $3,045. Once the property is then completed you will be required to proceed to settlement handing over the entire $700,000.  The Bond would allow you to invest your $70,000 elsewhere during these 18 months or alternatively in a growing market could allow you to speculate on your purchase selling the property to another buyer prior to settlement.

  1. Cross Securitisation

Finally the option of ‘cross securitisation’ allows investors to buy a property without a deposit. Cross securitisation is when a lender uses prior owned properties as collateral. Equity from the existing Home is used to secure an additional credit to acquire a new property. This is a common technique used by new property investors. However, having your loans cross securitised restricts the ownership you have of each property. This will restrict your ability to sell, as the bank will conduct a revaluation of all properties in your investment portfolio. This option is only available for those with existing properties.

Explore further options today, call Marco Scannone on 0405 252 808 or visit the website

Important considerations when buying a property through a self-managed superannuation fund

Investing in property through your self-managed superannuation fund is a big decision, one which not necessarily is suitable to everyone. Over 1 million Australians have their retirement savings invested in a SMSF, with over 7% of SMSF holding residential property as an asset. Since 2007, funds have allowed members to borrow money in their SMSF to purchase assets such as property.

Investing in property is a long term, low risk investment. Yet with the current market prices and condition, using saved money from your SMSF to invest may seem attractive to many. However it is important to seek independent and professional advice before buying property via your SMSF as this strategy may be unsuitable for you. Call Marco Scannone at Stars Broking Service today on 0405 252 808.

“I have many clients who come to me wanting to buy a property in their SMSF and on paper they would have no issues being able to go ahead with the deposit and borrowing. However, whilst they may meet the bank’s borrowing criteria, the main issue is their inability to meet deadlines, pay statements on time, make financial decisions and manage their financial affairs. When buying a property via a SMSF there are strict rules you need to follow regarding what you can and what you can’t do with the property and money in your SMSF, precise record keeping is a must. Even if you hand everything over to an accountant there is still work required.”

A self-managed super fund is a fund established by one to four people for the sole purpose of providing retirement benefits. Rather than paying super contributions into an industry fund, you pay it into a fund that you manage and take personal control of the assets invested.

By self-managing your decide what to invest in, which could include property. Investing in property through your SMSF can have significant benefits for investors as well as factors to take into consideration.

Benefits of investing in SMSF

  • All running expenses of the property are paid by the fund which means you are not out of pocket in the same way you would be if you directly invested in a property through income and savings
  • Tax: SMSF benefit from concessional tax rates. In the accumulation phase, tax on investment income is capped at 15%. In the pension phase (once retired) there is no tax payable, which includes no tax on capital gains or rent
  • You have direct control of your super investments and the diversifications in your portfolios.
  • SMSF trustees must lodge an annual tax return and audit, and pay ATO fees. ATO fees are capped and not based on a percentage of your super balance. The more an SMSF grows, the more cost-effective it becomes, but the total cost of running an SMSF will depend on the related investments and any costs associated with engaging professional support.

Considerations to be aware of

  • Properties purchased by the SMSF are strictly investments. You or a family member cannot live in the property
  • Renovation of a property in the SMSF are not allowed
  • Set up costs of a SMSF are expensive and need professional attention
  • Higher application and legal fees involved when getting a loan through SMSF

Investing in property is a risk especially through a SMSF. It is important you are aware of the financing options available to you. Common  questions I receive are listed below.

How much do you need to have in your super to buy a property?

Generally speaking there is no specific amount that you are required to have in your SMSF. However there is certain criteria the bank will require and other considerations in which you as the trustee of the fund will need to assess. From the bank’s perspective the maximum amount they will lend is between 70-80% of the residential property price. Some banks require you to have a buffer in your SMSF which means you cannot use all your money for the deposit.

How much can I borrow?

With a residential SMSF loan, you can borrow up to 80% of the investment property provided your super has a corporate trustee. The amount of money you have in your SMSF is an important consideration if you are thinking of investing. The banks will require a 20-30% deposit of the residential property price you plan to purchase. With the current market prices and additional fees it is important you seek independent financial advice to ensure you make a smart investment decision rather than landing you in a financial risk situation.

So what is the first step?

If you are thinking about buying property through your SMSF, before setting up the fund you must first sit down with a Broker who is an expert in SMSF lending and has an understanding of Limited Recourse Borrowing. This is a unique investment and requires specific expertise. Call Marco Scannone today.


Property Investment

Important mistakes to avoid when buying an investment property

Buying your first home is perhaps one of the biggest decision’s you will make. But for some, this won’t be the only property investment. Current pressured market conditions have had a significant influence over the past 5 years on housing prices, with reports suggesting a 73% increase in Australia’s biggest cities and suburbs including Sydney’s Hills District.

Purchasing property is a long term investment, usually a less volatile option. When comparing to other types of investments, one advantage which makes property an attractive choice is the ability for investors to offset property expenses. These offsets can be claimed on the end of year tax deductions. Buying your first property or expanding your investment portfolio is a significant financial decision. It is important you are aware of how to avoid common mistakes when financing your investment. Call Marco Scannone today on 0405 252 808.  

Cross securitisation- what does this mean for you?

A common issue many investors should be aware of is cross securitisation. Cross securitisation is when a lender uses prior owned properties as collateral. Collateral from the existing loans is used to secure an additional credit to acquire new property. This is a common technique used by new property investors. However, having your loans cross securitised restricts the ownership you have of each property. This will restrict your ability to sell, as the bank will conduct a revaluation of all properties in your investment portfolio. If the value falls under the minimum requirement, further equity contribution (on top of the property sale amount) will be required.

Offset account-  Avoid the risks and take advantage of the system

Another misconception when investing is the understanding and use of offset accounts. An offset account is a transaction account attached to a home loan. Any amount of money you have deposited in the offset account , reduces the amount of interest charged on the loan. Therefore, lower loan repayments can be achieved if you understand how to take advantage of this system. Whilst it may seem simple, it is important for investors to be aware of the risks of not using an offset account. If you decide to use the loan redraw facility instead of the offset account you will reduce the principle of the loan. If you then access this money for whatever reason the balance of the loan will increase to its previous amount, thus having an impact on the total interest you will be able to claim as a tax deduction.

Property can be a rewarding investment which can been seen with my own success story

My wife Federica and I have been investing in property since May 2008. Together we have acquired seven studio apartments in the suburbs of Darlinghurst, Potts Point,  Woolloomooloo and Manly. In addition a three bedroom house in Riverstone, a three bedroom house + two Bedroom cottage in Bidwill and more recently we have purchased another property in QLD.

In 2008 we saw a significant gap in the market, with many cashed up international students looking for places to live who couldn’t find rental accommodation.  Majority of students struggled to provide personal records i.e driver license or references from previous landlord’s. We decided to take advantage of this trend, and it worked!

Our first investment in 2008 was in Darlinghurst, this was a studio apartment in which we paid an upfront 20% deposit of a $190,000 investment. The first property was the hardest, as we were afraid and unsure as to whether we paid too much at the time. The property was then rented out very shortly after. From then on, my wife and I, decided to continue this process. By 2010 we had three properties together and looking back now we have nine fully owned properties in our investment portfolio. I am very proud of my wife and the investment journey I have been on. To read the full article click here.

Personal car loans industry secrets

When it comes to deciding on financing options for a new car purchase, buyers have many options to select from. It is important that you are aware of the array of financing options available. This way, you avoid being caught up in only considering dealership financing offered by persuasive sales representatives.

Personal car loans offer an alternative for buyers to have flexibility, particularly if you are specific on the make and model of the car you wish to buy. With no ongoing or early repayment fees this reduces the total cost of the loan making this an affordable option for the Australian family budget.

It is important you shop around for the best rate and repayment schedule, call Marco Scannone today on 0405 252 808.

So let’s explore buying through personal car loans 

Personal car loans offer you the flexibility when deciding on the type of the car you wish to purchase. This type of loan is available for new and used cars up to 7 years old, bought at the dealership or privately. Many people prefer this option as they give buyers the power to negotiate the price of the car. With dealership financing, this freedom is taken away.

In addition, many lenders have different eligibility criteria attached to the car loan. For instance the age, purchase price or whether you purchase the car from a dealership or through private sale. These factors will impact the type of loans available to you. Therefore it is important to do your research on finding the best loan suited to your needs. Avoid the hassle of spending hours researching multiple loan options, call Marco Scannone today on 0405 252 808 for the best loan suited to your needs.

Furthermore, personal car loans can have a term for as long as 7 years, offering an affordable repayment plan that fits your family budget. Once the personal loan reaches the end of the agreed term, no further repayments are required as the loan has been fully repaid. The ability to make regularly monthly repayments suited to your family’s budget is a significant advantage of personal car loans, making it important you find the best loan and rate so no hidden costs arise.

So if you are looking to purchase a car, explore your options today with Stars Broking Services. Call Marco Scannone today on 0405 252 808 or visit the website

Buying a new car and the hidden pitfalls of dealership financing

Buying a car can be a very exciting time in one’s life, however it is important you are aware of your financing options to avoid being caught up in dealership financing packages offered to you by car sales representatives.

There are many hidden traps with dealership financing. Ensure you know exactly what you are applying for. None of us like to be locked in, especially when it comes to deciding on the make and model of the car you wish to buy. It’s important to be flexible and with dealership finance, there are many hidden pitfalls.

So let’s uncover what many of us do not know about dealership financing

Firstly, this form of financing is limited to specific makes and models of new cars. In addition, customers cannot negotiate the price of the vehicle, leaving you locked into the terms of the loan which may include upfront or ongoing monthly fees. This can offset the low interest rate which is usually a strong selling point.

Whilst dealerships may offer an initial low interest rate, there is a hidden trap!

Low rates are only available for a limited period of time usually up to 3 years. Dealerships can get away with offering an initial lower interest rate as many car manufacturers provide a rebate to the dealer allowing them to pass on the perceived ‘lower rate’ to their clients. Little do you know, you are not really getting a lower rate but are exposed to many other hidden terms and conditions.

Dealerships Finance and Insurance representatives will present you with one, if not two options to finance your car and will have one insurance provider who will recommend products like GAP insurance and extended warranties. While both of these products are beneficial, they are inconsiderate of your needs and may not be the most suitable option. It is important you check the amount charged is not above the market value.

Another hidden fact to be aware of is your repayments. Car sales representatives will try to match your budget to show how you can afford the regular repayments. However at the end of the loan there will be money still owing, forcing you to make a balloon payment to ensure the balance is repaid. In today’s society with regular payments and tight family budgets, any extra payments due can have a significant impact on your family’s finances.

Don’t get caught in the pitfalls of dealer financing. Explore many more smarter car financing options today with Marco from Stars Broking Services.

Call today on 0405 252 808