I have the pleasure of welcoming Leah from Entourage Finance today and we've teamed up with Entourage to bring you a series on all things borrowing. 

This episode is all about finance and lending 101. Leah shares her expertise on the fundamentals of borrowing as we discuss the ins and outs of deposits, mortgage costs, borrowing capacity, and more. 

Leah and I talk about the advantages of working alongside a broker and how access to multiple lenders will ensure that you find the best fit for your unique financial circumstances and goals. This flexibility can be crucial when it comes to securing a loan tailored to your needs.

We talk about financing in terms of saving up for a deposit and different scenarios that can play out with lending. It's crucial to remember that you also need to account for additional costs associated with property purchases, such as stamp duty, conveyancer fees, lender fees, and settlement-related expenses. These costs can vary, so it's essential to be financially prepared. Another big consideration is lender’s mortgage insurance, which can add thousands to your loan amount. Leah explains some of the exemptions and concessions available, especially for first-time homebuyers.

Understanding your borrowing capacity is crucial when planning to buy a property. Lenders assess this by considering your income, expenses, and liabilities. Leah explains that different lenders have varying policies for calculating borrowing capacity, making it essential to work with a broker who can guide you to the lender that suits your circumstances best.

Leah also provides insights into how to enhance your borrowing capacity and why Entourage always recommend obtaining pre-approval before seriously considering a property purchase. While it's not a 100 percent guarantee, pre-approval offers a high level of certainty and helps you set realistic expectations when house hunting. It's a valuable step to take before making an offer on a property.

Understanding the basics of finance and borrowing is essential when embarking on your journey to homeownership or property investment. With the guidance of professionals like Leah and the team at Entourage Finance, you can navigate the complex world of finance with confidence. Stay tuned for future episodes where we'll explore more advanced topics in property finance and lending.

LINKS:

Entourage Finance

• Blog Post: Finance 101 with Entourage Finance
• Website: https://entourage.com.au/

 

• Buy our book: BuildHer, A practical guide to building and renovating
• BuildHer Website: https://buildhercollective.com.au/
• BuildHer Instagram: @buildhercollective
• BuildHer Facebook: Women who Design, Decorate, Renovate & Build
• Register for a call: https://go.oncehub.com/BuildHer

See omnystudio.com/listener for privacy information.