Private Wealth Management – Myra & Co.

Loans

Myra & Co. focuses on understanding and analysing the client's needs and then advising them on the best financing options available, matched to their specific financial requirement and financial background. Our associations with multiple lenders, public or private, offers us an unlimited independence to select any particular mortgage provider and hence we are able to source the best option for our eclectic clientele from the wide-open mortgage universe. As a result customer always gets the best possible solution and deals based on our candid recommendations. We manage the entire financing process, from picking the right lender to documentation & eventually to loan disbursal. Not only this, we also remain the client's counsellor for the entire life of the loan.

Key Considerations

Mortgage Planning and Advisory
We understand our client financial needs and personal background, based on which we help them prioritize their objectives. We then match these objectives with mortgage products in the market and design the right financial structure for them.

Choosing the right mortgage for the client
Based on the client's information and background, we research the entire spectrum of the mortgage universe and offer multiple financing options that best suit the client's needs. We then help the client choose the best mortgage product that has the lowest interest rate possible, and the maximum loan amount.

Effective client representation with lenders
We present the client's information to the lenders in the most appropriate manner and work closely with the lender, in educating them with the nuances of a particular case. The objective being that we aim to obtain the best financing terms for our clients.

Hassle-free process
We manage the entire documentation process from completing loan application, collecting necessary documents right up to the loan disbursal. We coordinate with the lender, solicitors, assessors and others on behalf of the client to ensure a smooth and hassle free mortgage process.

Monitoring your mortgage for life
Even after the loan is disbursed, we regularly track the mortgage along with interest rate movements and keep the client apprised of any cost-saving opportunities possible.

Loan is a debt evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular instalments, or partial repayments; in an annuity, each instalment is the same amount.

A loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Home Loans

A Home Loan is a loan taken to acquire a house property. The lender secures the loan by marking a lien on the house or property purchased with the loan. Typically, banks would fund to the extent of 80% of the registered value of the property. The loan may be at a fixed rate or at a variable interest rate or a hybrid combination of both.

Refinance Existing Loans or Balance Transfers (BT)

A Refinance Loan or Balance Transfer (BT) refers to moving the loan from one lender to the other to obtain better terms & conditions on the outstanding balance of the loan. Typically, transition from higher rate of interest to lower rate of interest or increase in loan component as 'top-up' are considered to be the major objectives of refinancing or balance transfers.

Loan Against Property (LAP)

Also called Home Equity Loan, the proceeds of a LAP may be used to fund a wide variety of expenses or investments like renovations, a foreign vacation, education, wedding or medical expenses. A LAP can be taken against either residential or commercial properties.

Personal Loan

No matter what your financial needs are, a personal loan help you fulfil them. Our advice on Personal Loans helps to make a difference in your life. No matter what your financial needs are - unexpected expenses, school fees, wedding in the family, home improvement or that long awaited vacation. Whatever the occasion, a host of Personal Loans available can help you out.

Business Loan

A business loan is funding given to business by a bank, an individual(s), or an organization usually to be repaid by a certain date with a certain amount of interest. The amount of a loan, the amount of interest, the repayment date, the qualification of the loan recipient to merit the loan, the credit analysis, and the number of lenders used to achieve the desired loan amount are all variable.

Commercial Property Purchase Loans

A commercial property purchase loan is a loan taken to purchase property for any type of business use. A commercial property loan can be used to expand or improve your existing business infrastructure. It helps the borrower to buy office premises or other property like a warehouse, godown, shop, industrial gala, etc.

Lease Rental Discounting (LRD)

Lease Rental Discounting (LRD) is a loan scheme offered by banks under which an applicant obtains loan against their leased property. The loan is provided to the lessor based on the discounted value of the rentals and the underlying property value. The agreement is between the borrower and lender and the major term of repayment is the rent being encashed to the lending bank account.

A
Accrued Interest	Interest you have incurred that is yet to be charged.
Additional Repayment	Extra funds paid into the loan over and above the minium prescribed repayments.
Adjustments	The process of allocating expenses (council, electricity, phone, water rates) on settlement day that the seller has paid for but not used, and which the buyer has not used but will be billed for.
All in one loan	A loan, generally variable that allows you to deposit all of your income into the loan account and then withdraw money for the loan account for all your day to day purchases and transactions, the longer spare funds stay in the account, the greater the interest savings.
Allotment	A block of land created out of a larger area.
Amortisation period	The period of time one has to repay a loan at the arranged terms.
Application fees	Fees charged to cover or partially cover the lender's internal cost of setting up a loan approval for a homebuyer.
Appraised value	Estimate of the value of a property being used as security for a loan.
Annual percentage rate	The advertised rate of interest per annum.

B
BAD	(Bad Accounts Debits tax) State or Territory government tax (except ACT) on withdrawals from accounts on which a cheque may be drawn.
Bad debt	A debt with little chance of being recovered and written off as a loss.
Balance sheet	A statement of assets, liabilities and net equity for an enterprise at a point of time.
Bankruptcy	When a debtor has his/her estate placed into the hands of a receiver who has the responsibility for its distribution.
Basic variable	A variable home loan at a reduced rate but generally with fewer features that a standard variable.
Body corporate	A corporation of the owners of units within a strata building. They form a self elected council for the management of the building and common areas.
Break costs	Costs incurred when a loan is paid off before the end of its term. Generally applies to fixed loans.
Bridging finance	A loan that enables you to cover the purchase of a new property when you are yet to sell your existing property.
Building regulations	The standards formulated by local councils to control the quality of buildings.

C
Capital gain	The monetary gain obtained when you sell an asset for more that you paid for it.
Capital gains tax	A Federal tax on the monetary gain made on the sale of an asset bought and sold after September 1985.
Capitalisation	When interest payable is accrued and added to the total debt payable.
Capped Loan	A loan where the interest rate is not allowed to exceed a set level for a period of time but unlike fixed rate loans, is allowed to drop.
Caveat loan	The Latin for 'beware". Usually it is in the form of a contract clause that stipulates a particular requirement.
Caveat emptor	Latin for "let the buyer beware", or in Australian "you pays you money and you takes you chances".
Certificate of Title	This document details the land dimensions and ownership details, and whether there are any encumbrances on it.
Chattels	Chattels are personal property. There are two types; real chattels are buildings and fixtures. Personal chattels are clothes and furniture.
Combination loans	Where various loans come under the same banner to form one loan, may have a portion variable, fixed or even a portion as a line of credit, Also known as split loans.
Commission	A fee payable to the real estate agent, by the vendor, for the sale of property.
Common property	An area used by many, not an individual, owned by the tenants in common.
Company title	A property title that applies when owners of units in a block form a company.
Comparison rate	Used to compare the actual rate of a loan, taking into account nominal interest rate per annum, the compounding frequency and upfront and ongoing fees, as outline in the consumer credit Code.
Construction loans	A loan specifically granted for the purposed of funding the building of a new dwelling. You are generally able to draw down money as require, so you can pay as necessary.
Consumer Credit Code	An Act of Parliament governing the relationship between borrowers and lenders.
Contract of Sale	A written agreement outlining the terms and conditions for the purchase or sale of property.
Conveyancing	The legal process for the transferral of ownership of real estate.
Covenant	Terms and conditions that specify the usage of a block of land or the buildings on it.
CRAA	(Credit Reference Association of Australia) the body which holds credit details on all of us!
Credit	Borrowed money to be paid back under an arrangement with a lender. Also, a sum of money paid into an account.
Credit limit	Maximum amount the borrower can use at any one time.
Creditor	A party to whom money is owned.

D
Daily interest	Interest calculated on a daily basis - therefore varies according to daily account balance.
Debtor	Someone who owes money to someone else.
Default	Failure to meet debt payment on a due date.
Default rate	The rate a loan rolls/moves to automatically at the end of any fixed period.
Disposable income	Any income left over after all known expenses have been met e.g. mortgage payments, bills.
Drawdown	To access available loan funds.


E
Easement	A right to use a corridor or passage of land which is owned by another.
Encumbrance	An outstanding liability or charge on a property.
Equity	The amount of an asset actually owned.
Equity mortgage	A loan secured by the part of the value of an asset 9usually house) which you own.
Establishment fees	Lending body fees which may or may not be charged to set up a loan.
Exchange of contract	The legal point of time when the vendor and purchaser swap documentation and start enquiries with a view to settlement

F
FID	(Financial Institutions Duty) state duty on the receipts of financial institutions.
Fixed interest	An interest rate set for an agreed term.
Freehold	The dwelling and the land on which it stands is owned by the owner indefinitely.
Frozen account	An account in which all transactions have been suspended.

G
Garnishee	To legally divert a part of whole of someone's money or property to someone else.
Gearing	The ratio of your own money and borrowed funds in an investment.
Guarantor	A party who agrees to be responsible for the repayment of another party's debts


H
Holding deposit	A refundable deposit based on the goodwill of the buyer to go ahead with the purchase.

I
ILR	(Indicator lending Rate) the base rate on which interest rates for variable rate overdrafts and term loans are set.
Inclusions	Items included with the property e.g. light fittings, stove.
Interest	The lending body's charge for the use of funds or the return on deposited funds.
Interest adjustment	When additional repayments are made on a fixed loan, an interest adjustment cost is sometimes charged to compensate the lender for loss of interest revenue.
Interest only	Usually a short-term arrangement whereby payments are made on the interest only, not the principal.
Interest only loan	A loan where the principal is paid back at the end of the term and only interest is paid during the term. The loans are usually for a short terms of one to five years.
Introductory loan	A loan is offered at a reduced rate for an introductory period.


J
Joint tenants	Equal holding of property between two or more persons. If one party dies, their share passes to the survivors.

L
Land tax	A state government tax charged to the owner of any property over a stipulated value, unless it is their principal place of residence.
Lease	A document grating a period of tenancy of a property under specific terms and conditions.
Line of credit	A flexible loan arrangement with a specified ceiling to be sued at a customer's discretion.
Loan security duty	Mortgage stamp duty.
LVR	(Loan to Valuation Ratio) the ratio of the amount lent to the valuation of the security (usually the house).

M
Margin	This is the difference between the lender's interest indicator rate (or other reference rate) and the rate actually charged to borrowers.
Maturity	The date a debt must be paid in full.
Mortgage	A form of security for a loan usually taken over real estate. The lender, the mortgagee, has the right to take the real estate if the mortgagor fails to repay the loan.
Mortgagee	The lender of funds.
Mortgagor	The person borrowing money in the terms of a mortgage.
Mortgage discharge fee	An administration fee to cover the costs (e.g. documents) incurred in winding up a loan.
Mortgage Insurance	A form of insurance taken out by the lender to cover themselves in the event that the borrower defaults on their loan and the sale of the property is unable to cover the outstanding amount. Mortgage insurance premiums are usually payable by the borrower when the amount borrowed is over 80% of the property value and sometime at lower loan to valuation ratios.
Mortgage manager	A company responsible for managing every facet of a borrower's loan. Often sources loans from mortgage originators.
Mortgage offset	A non-interest earning account that is offset against a home loan to reduce the total interest payable.
Mortgage originator	Retails and more often wholesale lender who sources securities funds in order to package them as loans.
Mortgage protection insurance	Not to be confused with mortgage insurance, this covers borrowers' loan repayments in the event that they are not able to meet them through illness or redundancy, for example.


N
Negative gearing	Where the return on an investment is insufficient to meet the interest cost of the loan used to fund the investment.

O
Off the plan	The purchase of a property, often an apartment, before it has been completed i.e. after only having seen the plans, not the finished product.
Offer to purchase	A legal agreement that details a specific price for the purchase of a specific property.
Offset account	A savings account linked to your mortgage in such a way that the interest earned on your savings is applied to reduce the interest on your mortgage.
Old system title	(common law title) consists of a "chain" of the title documents stretching back to the original owner.
Ongoing fee	Any loan maintenance fee charge regularly over the life of a loan.
Overdraft	A pre-arranged limit to which a person can exceed an account balance.

P
Passed in	A property is "passed in" at auction if the highest bid fails to meet the reserve price set by the vendor.
Portability	Where a new property may be substituted as security for an existing loan.
Principal	The capital sum borrowed on which interest is paid.
Principal and interest loan	A loan in which both the principal and the interest are paid during the term of the loan.
Private sale	The sale or a property without an estate agent.

R
Redraw facility	A loan facility whereby you can make additional repayments on your loan and then access these extra funds when necessary. They will often have limitations such as a minimum redraw amount and a fee for each withdrawal.
Refinancing	To replace or extend and existing loan with funds from the same institution or another.
Rental guarantee	A promise by the developer guaranteeing a certain level of return on an investment property. Usually stated as a % of the purchase price, its generally relates to investment properties purchased off the plan.
Repayment maximum or minimum	The max / min % of income which a lender will allow to be committed to the repayment of a loan.
Requisitions on title	A process by which the buyer requests additional information about the title of the property from the seller.
Reserve price	Specified minimum price acceptable to a seller at auction.
Residential investment loan	A loan granted to purchase a property intended to investment purposes (e.g. to be rented out) as opposed to owner-occupied purposes.
Right of way	Can be either somebody's right to cross other property or a general pathway across your land.
Rise and fall clause	A building contract clause that allows the final pricing to move up or down according to the fluctuations of material prices or wages.

S
Search	An examination to confirm that a vendor is in a position to sell a property and that there are no encumbrances on it.
Securitisation	The process of taking a pool of diverse assets such as different home loans and converting them into a tradable security such as a bond which investors can them purchase and trade.
Security	An asset that guarantees the lender their borrowings until the loan is repaid in full. Usually the property is offered to secure the loan.
Semi-detached	Two houses that share a common wall or walls.
Settlement date	Date on which the new owner finalises payment and assumes possession.
Stamp duty on transfer	A State Government tax assessed on the selling price of the property.
Standard variable	A variable home loan, usually with comprehensive features (as opposed to a basic variable). This is often the variable rate that fixed rates roll to at the end of their fixed term.
Strata title	This title gives you ownership of a "unit" of a larger building which you may sell, lease or transfer at your discretion. Also entitles you to membership of the body corporate.
Stratum Title	A title that records your ownership of a "unit" of a larger property. Unlike a strata title, the owner becomes a shareholder in the company that manages the common area, not just a member.
Survey	A plan that show the boundaries of , and the building position within, a block of land.

T
Tenants in common	The equal or unequal holding of property by two or more persons. If one party dies, the property is divided according to law.
Term	The length of a home loan or a specific portion of the loan.
Title fees	Payable to the States' Land Title office for the title search, transfer of property ownership, registration of the new mortgage and discharge of the old one.
Title search	Process to ensure that the vendor has the right to sell and transfer ownership.
Torrens Title	Records your ownership of a piece of property. You are lawfully entitled to lease, sell or dispose of the property as you desire, also known as Certificate of Title.
Town house	Usually a two-storey dwelling registered under a strata title.
Transaction fees	Charges for any transactions conducted i.e. withdrawls, transfers, deposits.
Transfer	A document registered with the Land Titles office that confirms the change of ownership of land.


U
Unencumbered	A property free of liabilities, encumbrances or restrictions.

V
Valuation	A report as required by the lender, detailing a professional opinion of the property's value.
Variable interest rate	A rate that varies in accordance with the rates in the marketplace.
Vendor	Party who offers a property for sale.
Vendor statement	A statement by the seller to the buyer detailing material particulars regarding the property in question.
Villa	Single storey attached dwelling.


Z
Zoning	Local authority guidelines as to the permitted uses of land