mangocreditinterestrate

Mango Credit: Interest Rates

ik@ippei.com (Tori Klein) — Thu, 26 Dec 2019 14:56:38 GMT

When choosing your loan product, it is essential to identify the right interest rate that is both beneficial and suitable for your situation. This is because interest rates can impact your loan fees. That is, the higher your loan interest rate is, the bigger the cost of your monthly or annual repayments.

With so many lenders providing numerous loan products and services along with different interest rates, it is important to understand the different types of interest rates and how they work. With Mango Credit, you will find only the lowest interest rates in our loan services.

What is an interest rate?

When you take out a loan, the lender charges a certain price for the money you borrowed. This is the annual percentage rate (APR) charged as a percentage of your loan balance. Whilst every lender can independently decide on how much interest rate they can charge, it is generally based on the cash rate given by the Reserve Bank of Australia. With that, the interest rate can go up or it can go down.

Types of Interest Rates

Before you decide on taking out a loan, these are the different types of interest rates you should know.

Variable Interest Rate

A variable interest rate on a loan is highly dependent on the cash rate set by the Reserve Bank of Australia. If the cash rate increases, you will pay a higher interest rate. On the other hand, if the cash rate goes down, your repayments will also decrease.

Fixed Rate

A fixed-rate interest rate is an unchanging rate and locks for a period of time, usually 1-5 years. Given that it does not depend on the movement of the cash rate, it protects you against it. This is most advantageous if you are still trying to stabilise your finances.

Split Loan

A split loan allows you to divide your loan into two parts which means a portion of your loan is a variable interest rate and the other one is a fixed rate.

Why Choose Mango Credit?

Mango Credit offers competitive and low interest rates. By offering low fees, Mango Credit creates a new standard on how lending should impact borrowers and investors. Whether you are a first-time borrower or an existing customer, we provide customised and real solutions based on your financial need. Contact us today.

Current Mango Credit Interest Rates

Bridging Loan: From 1% p.m.

Business Loan: From 1% p.m.

Disclaimer: The interest rates of Mango Credit are precise at the time of publishing and are subject to change. To confirm the latest interest rates at the time of your application, please contact us. All details written on this page are general in nature and do not take into account any of your personal circumstances.

A BEGINNERS GUIDE TO SHORT TERM FINANCE

ik@ippei.com (Tori Klein) — Thu, 26 Dec 2019 14:56:38 GMT

In this article, you will discover the benefits of short term financial loans for personal and business use.

Especially during periods of uncertainty, it may take longer to sell your current home after you have found your new place. Or your business may be suffering slow payments, resulting in cash flow shortfalls. Where do you turn to for immediate access to funds you only need for a short time?

When people think about personal or business finance, they often think of mortgages or other types of secured loans with long repayment terms of up to 30 years with a bank. These types of loans typically have a very strict ‘lending criteria’ (i.e. what you need to demonstrate to be able to be eligible for a loan), usually require years of financial information, and have an onerous application process that takes a long time to be approved, and settle.

But what if you only need finance for a short period of time? And you don’t want to jump through hoops – particularly if you don’t have all your financials in order, or have limited trading history?

If you have equity in your home or other property, a short term loan may be a good option if you need to obtain funding quickly, without all the hassle.

What are short term loans – personal use?

Here’s a common scenario: you’ve sold your current property that’s scheduled to settle in say October, but you find the house of your dreams in September. Rather than panic, or pass on your new house because you can’t get funding earlier, consider a bridging loan.

As the name suggests, a bridging loan is designed to do just that: ‘bridge the gap’ between your new property purchase and the sale of your current home. And the great thing is it’s a very fast and easy way to access finance by drawing down into the equity of your home to purchase your new home.

What’s less commonly known is that a short term loan might also be used to renovate or prepare your property for sale, pay off personal debts, or even complete a small land sub-division. And, what’s more, this is our speciality and what we do that’s different to most other lenders.

What are short term loans – business use?

It’s common for businesses of all shapes and sizes to experience cash flow crunches. These credit squeezes can be alleviated from a short term loan that provides a quick injection of funds that provide some breathing space.

Backed by the equity in your property, short term business finance helps smooth the ‘ups and downs’ of business cash flow, or helps you take advantage of an investment opportunity that needs immediate funding. Other common requirements include purchasing new stock or equipment, making wage payments, alleviating the pain of slow customer payments, or paying outstanding tax bills.

What are the types of short term financing?

Whether for personal or business use, there are a few different types of short term financing options. Choosing which one is right for you depends on your specific objectives and circumstances.

Caveat loan

Often called “unregistered second mortgages,” a caveat is placed on your property without requiring the consent of your bank, so it can be approved quickly. The caveat is released when the loan is repaid.

Second mortgage

Unlike a caveat loan, this needs approval from your existing lender. With added security, terms are generally more favourable than a caveat loan.

First mortgage

Cheaper and faster than a second mortgage, the first mortgage is top priority registered interest in your property and helps you to release equity in your home for personal or business use.

Home equity loan

Using your principal place of residence as security, these loans can help release equity in your home to fund renovations, investments, business working capital or repay debts.

If you need to act quickly to purchase a new property, fund your business or make an investment, don’t miss out on the opportunity – consider a short term loan to provide the finance you require, along with peace of mind.

7 STEPS WHEN BUYING YOUR FIRST HOME

ik@ippei.com (Tori Klein) — Thu, 26 Dec 2019 14:56:38 GMT

In this article, we’ll look at the essential steps first home buyers should take to secure their new home, to include working out a budget, organising a home loan, taking advantage of the First Home Buyer Grant, and more.

Buying your first home?

Buying your first home, the ‘Great Australian Dream’, is a very exciting time. But it can also be daunting as there’s so many things that need to be considered. This ‘7 Steps to Buying Your First Home’ guide has been developed to help make the process a bit less overwhelming. Here’s an overview of what should be on your radar:

Step 1: What is your budget?

There are a few areas to think through when it comes to how much you can spend on your new home, and how much you can afford to repay on a home loan, to include:

Your household budget: This is your total household after-tax income (including you and or your partner), and any investment income you may earn. Then you must calculate ALL your total living expenses, including groceries, dining out, entertainment, the cost of running your car(s), gym membership and even your Netflix subscription. Use a spreadsheet or find an online calculator from a lender to help with this. The difference between your after-tax income and living expenses is how much you can put toward your home loan. Tip: be sure to leave some ‘rainy day’ contingency plan money to make sure you’re not completely stretched in the event of an unforeseen circumstance, such as a redundancy or unexpected medical expense.
Your savings or deposit: How much do you have for a deposit? This is a major factor in calculating how much you can spend on a home, with most lenders looking for at least a 20% deposit. With than less than 20% deposit, you will often need to pay Lenders Mortgage Insurance (LMI), which can cost thousands of dollars. If you are like around half of all first home buyers in Australia, you may be able to lean on the ‘Bank of Mum and Dad’ for some help with your deposit.
Don’t forget stamp duty: All states in Australia charge stamp duty (the cost to transfer the property into your name). This is generally calculated using a sliding scale based on purchase price and can add around 4% to your purchase cost.
First Home Buyer Grant: There is a range of schemes and grants available to first home buyers from both the Federal and State Governments (note these differ between states). The First Home Loan Deposit Scheme (FHLDS) is an initiative of the Australian Government to support eligible first home buyers build or purchase a home sooner. This scheme allows for a smaller deposit (say 5%) with the Government guaranteeing the difference up to 15% to help borrowers avoid LMI. In NSW, for example, you may be eligible for a $10,000 grant to build a new home, or a variety of concessions to build new homes or purchase existing homes. Full details on grants, concessions and how to apply in NSW are here .

Step 2: Find the right home loan

There are many types of lenders that provide home loans (otherwise known as first mortgages). Besides the traditional big banks, there are new non-bank lenders, private lenders and fintechs, such as Mango Credit who all offer mortgage products.

Here are a few tips for first home buyers to keep in mind when considering a lender:

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Step 3: Find your new home

This is the fun part, but it can also be a lot of legwork… Here, the internet is your friend and can give you a good idea of the price guides of homes in areas you are interested in, as well as previous sales in these areas. Try Domain or realestate.com.au , the two largest real estate sites in Australia.

Nothing beats seeing a home in person, so once you have a shortlist of homes in the areas you like and within your price range, attend open homes to inspect the ones you are interested in.

You can also let real estate agents in your preferred suburbs know that you are actively looking, what you are looking for, and your price range. Ask the agent to let you know about new listings and even off-market properties they have on their books.

Step 4: Have a closer look

Don’t commit to purchase a home before you look under the covers (or more accurately, behind the walls). It’s critical to conduct thorough professional inspections prior to purchasing a home, to include pest and building/ electrical inspections. For any strata purchases, it’s wise to request strata minutes from the last few years to ensure there are no major problems in the building. This will cost money, but will ensure no nasty surprises after you buy. And if you find urgent repairs are needed, or there are larger structural issues, you can factor this into the purchase price and your offer, or walk away.

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Most homes are offered either by private sale or treaty, or they go to auction. Typically, they are sold via a real estate agent, but some vendors sell directly. Once you know this is the home you want, make an offer within your budget. Be careful with so-called price guides provided by agents, particularly in a ‘hot’ property market. Often, they are less than what the vendor really wants or hopes to achieve at auction, so your initial offer may be unsuccessful.

Note that private treaty sales have a cooling-off period for inspections etc., but auctions don’t usually provide this option. So, it is crucial if you are bidding at an auction to have pre-approved finance and have done all the necessary inspections.

You may consider engaging a buyers’ agent to help you with the negotiation process, or even to bid on your behalf at auction. While it costs money to engage a buyer’s agent, they can also save you time, stress and potentially tens of thousands of dollars by securing a better price than you might have on your own.

Once your offer is accepted, contracts will be exchanged, and a deposit (usually 10% of the purchase price) will be paid into a trust account.

Step 6: Over to the lawyers

Property contracts are large documents full of ‘legalese.’ That’s why there are many specialist conveyancing firms that work solely in the area of property. You will also find many suburban law firms that offer a range of legal services, including conveyancing. This investment ensures there are no surprises once you have completed the purchase process.

Typically, the process from contract exchange to settlement is six weeks, but the timing can be negotiated between you and the vendor. During this time, your conveyancing solicitor will liaise with the vendor’s solicitor, council and various government departments to ‘tick all the boxes’ and support a smooth transfer of ownership to you.

Step 7: Settlement and time to celebrate!

On settlement day, and in exchange for the purchase price less the deposit you have already paid, you receive the title and keys to your new home. Congratulations, you are now a proud home owner! All that remains is for you to move in and turn your new house into a home.

Key takeaways

Buying your first home is a huge commitment. If you understand the steps involved, and have considered all the important factors, the process will hopefully be faster, less stressful and a lot more enjoyable. Good luck!

mangocreditinterestrate

Mango Credit: Interest Rates

What is an interest rate?

Types of Interest Rates

Why Choose Mango Credit?

A BEGINNERS GUIDE TO SHORT TERM FINANCE

In this article, you will discover the benefits of short term financial loans for personal and business use.

What are short term loans – personal use?

What are short term loans – business use? ﻿

What are the types of short term financing?

Caveat loan

Second mortgage

First mortgage

Home equity loan

7 STEPS WHEN BUYING YOUR FIRST HOME

In this article, we’ll look at the essential steps first home buyers should take to secure their new home, to include working out a budget, organising a home loan, taking advantage of the First Home Buyer Grant, and more.

Buying your first home? ﻿

Step 1: What is your budget? ﻿

Step 2: Find the right home loan ﻿

Step 3: Find your new home ﻿

Step 4: Have a closer look ﻿

Step 6: Over to the lawyers ﻿

Step 7: Settlement and time to celebrate! ﻿

Key takeaways ﻿

What are short term loans – business use?

Buying your first home?

Step 1: What is your budget?

Step 2: Find the right home loan

Step 3: Find your new home

Step 4: Have a closer look

Step 6: Over to the lawyers

Step 7: Settlement and time to celebrate!

Key takeaways