Buying your next home in Perth?

Your current home would have accrued value since you purchased it. Potentially an amount that could go towards or even cover the deposit for your next home. Alternatively, you could use it for renovations and upgrading your next property.

This is what we call equity – equity refers to the difference between the current market value of your home and the amount you still owe on your mortgage. Essentially, it’s the portion of your home that you own outright.

As your partner in finance, we’ll work this out for you to understand what you have to work with.

If this next purchase is for residential purposes or for investment, there are going to be different costs associated with it. You don’t necessarily have to sell your current property to buy your next (pending your financial position) but the loan and interest rates will vary depending on one of the property becoming a rental asset.

When you buy your first property, you may have had access to grants which assisted you in avoiding Lenders Mortgage Insurance or may have contributed to your deposit or lowered the down-payment amount considerably.

With your next property, you’ll also need to pay stamp duty which you would have avoided with your first home, LMI and possibly investor costs.

When you work with Locale Financial, we make sure there are no hidden numbers, everything is transparently presented so you know from the get-go what you’re looking at paying.

If you are looking at making one of the properties an investment asset and turning it from a residential home to a rental, as your money experts we are going to structure your loans to reduce risk on your end.

Lenders are usually not geared towards minimising your risk as the buyer, but we are. We’ll find the right products with key features and flexibility to avoid what we call cross-collateralization.