Is a 100% home loan a good thing for you?

There are a number of things to consider before you take out a 100% or 105% home loan. Borrowing 100% or 105% of the homes value can be a great way to get in your first home. But there is a downside, generally the interest rate is considerably higher than what it would be if you had a larger deposit. Here we look at 100% and 105% home loans and how they can benefit you and also some of the pitfalls of taking out such a loan.

What is a 100% home loan

Loan valuation ratio (LVR) is calculated by dividing a loan amount by the property's value. For example if you have a $800000 home loan and your home is worth $1000000 then you loan valuation ratio is 80 percent. So, with a 100% home loan you are borrowing 100% of the home loans value, meaning you need no deposit. Generally loans with a higher LVR command a higher interest rate.

Lending organisations encouraging debt

Many lending organisation may be very willing to provide you with the funds to get you into your home by lending you 100% or 105% of the total value of the home. Lenders today are often criticised for lending excessive amounts in the fear that home buyers cannot sustain such high debt levels. Should interest rates rise, home buyers with significant levels of debt could face the prospect of the bank foreclosing on their house. Each lending institution has its own criteria for approving debt levels, depending on which lending institution you apply for you may find you are approved or disapproved for a 100% home loan.

Instant Approval Credit Cards

The days of waiting for weeks for a credit card application are over. Today, anyone can get a credit card approved instantly. It's very easy to apply online for an instant approval credit card. Hundreds of credit card companies claim they can give you the best credit card available for your needs, instantly. An easy way to apply for this type of card is online, at the credit card company's website. No, that doesn't mean you can download a credit card to use immediately. What it does mean is that your credit card application can usually be approved within minutes.

What Is A Credit Report and Why Does It Matter

We've all heard of it. We all know we have one and have probably spent a fair amount of time thinking about it, but the fact of the matter is that most people have never seen theirs. So, what is it? Our credit report. Oddly enough, even though our credit report influences just about every aspect of our financial life, most of us have never even seen ours, let alone know what our FICO or credit score is. Not only will understanding your credit report help you make important financial decisions, it can also help you see just what it is that is keeping you from getting the credit that you may need.

Frequent Flyer Credit Cards What You Should Know

If you have, or are considering applying for, an airline frequent flyer credit card, you need to ask yourself two questions:

1. Are benefits available from the largest airline in my area?
2. Which airline credit card can I use to reap the benefits quickly?

Here we take a look at Frequent Flyer Credit Cards available an offer a comparison between them.