How Much Does Your Credit Card Affect Your Borrowing Capacity?

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Did you know that $1,000 extra on your Credit Card limit can reduce your borrowing capacity by up to $5,500 with some lenders? This can mean the difference between owning a property and not.

Let’s assume our client, Ian, earns 80Kpa. and has a credit card of 10K, no other debts and is single…Now, let’s see how much we can borrow with this 10K card limit and for the exercise we’ll pick Homeloans Ltd as the preferred lender…

10K = 520,074

9K = 524,429

8K = 528,783

7K = 533,137

6K = 537,492

5K = 541,846

This shows that for every $1K of extra credit card limit, your borrowing capacity in this instance reduces by approx. $4350.

TIP: When your bank sends you an invite to increase your credit card limit have a bit of a think before blindly accepting their offer. With this example, bigger was to better.

What Is The Role Of A Conveyancer

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Conveyancing is the process under which the ownership rights of an estate of land is transferred from seller to purchaser.

The primary role of the conveyancer is to ensure that the property is transferred to the new owner free of any other interests. Secondary to this the conveyancer co-ordinates on time settlement of the transaction by liaising with each of the relevant parties (the vendor and his/her conveyancer, lender, real estate agent, and the purchaser and his/her lender, and the settlement agent).

The conveyancing process starts on the signing of the contract of sale and concludes with the successful post settlement Registration of the Certificate of Title.

When acting for a purchaser who has signed a contract, the conveyancer undertakes the following:

1. Conducts a Title search to obtain up to date information as to a. the registered owner of the property b. encumbrances registered on title, and; c. any dealings affecting the Title but not yet registered.

2. Investigates ‘Off Title Restrictions and Interests’ including but not limited to: a. Zoning (permitted use) b. Rates & outgoings c. Road proposals via Vicroads d. Heritage e. Land Tax f. Building approvals

3. Review & validation of the Section 32 Vendor’s Statement & The Contract

4. Manage Section 27 Deposit Release request

5. Arrange for discharge of the vendor’s mortgage and any caveats over the property prior to, or at settlement.

6. Provide a Statement of adjustments covering apportionable outgoings to be paid at the day of settlement.

7. Preparation of Transfer of Land documentation

8. Co-ordination of final inspection

9. Co-ordination of the settlement appointment. 10. Attends settlement and the exchange of documents.

 

Post settlement the conveyancer:

1. Prepares a Notice of Acquisition for the local Council and water authority.

2. Completes Title registration

3. Co-ordinates payment of Stamp Duty.

Thanks to Craig Hemer