What to Look for While Refinancing Mortgage Loan

It is a great way to reduce the number of interest borrowers pay for their monthly payments. There are various reasons why an individual may want to refinance its mortgage, but most commonly, it is when home loan interest rates get reduced.

However, when it comes to refinancing a mortgage loan, try to keep the following five points in mind:

Borrower’s Interest Rate: Interest rates are constantly changing, which is why it’s so important to keep up with them. If the borrower doesn’t know about these changes and end up getting stuck in a contract that will force him into paying more than he should be over his lifetime of repayment, then it can cost him extra repayments over the life of the mortgage.

The best way to avoid this situation when refinancing is by consulting a home loan broker to get informed about the interest rates of multiple lenders in the market.

Cost of Refinancing: It is not free to Refinance a mortgage loan- Depending on the type of loan, there can be a number of fees associated with it; sometimes, they are costly enough to outweigh any benefits that might come from refinancing a home.

If the borrower wants to assess the cost while refinancing, one way to do this is to use an online Refinancing Home Loan Calculator to compare the interest rate. This calculator can estimate how much money a borrower will save while also considering all costs associated with the new deal.

Credit Ratings: A borrower’s credit score is a key factor while refinancing a mortgage. If the borrowers’ credit score is not so good, they might find it working against their efforts to refinance. Apart from these, rejected applications for refinancing can also adversely affect a borrower’s credit score.

As a first step, it is essential to determine if the borrower is eligible for a home loan- Mr Rohit Khatak, a leading Home Loan broker at Hunters Hill, can help the borrower qualify for the loan.

Consolidate Debt: Debt consolidation is a great tool for those with large amounts of debt, and it could be the one reason for borrowers to consider home loan refinancing. Debt consolidation can reduce the total amount of interest a borrower has to pay for his loans. If a borrower is paying high rates on multiple credit cards, refinancing and consolidating these debts with an affordable mortgage could help ease the burden of managing those payments.

Debt-to-Income Ratio: Although the prospect of getting home refinanced is exciting, it might not be possible due to the borrower’s current debt-to-income ratio. The monthly mortgage payment should not exceed 30 per cent of their income, and their debt-to-income ratio should not be higher than 35 per cent. Therefore, it doesn’t matter whether their application is approved for refinancing; they should always keep their debts minimum.

Conclusion: To sum up, there are lots of things to consider when refinancing a home. It is important that the person must start planning for it well before the process takes place because ample preparation and forethought can go a long way in making this task easier, faster, and complete success!

Your Finance Adviser is a finance advising company based in Australia and we are proficient at offering the best mortgage refinance advice to our clients. If you need help with your home loan, contact us today!

Navigating the World of Legitimate High-Risk Lenders

Understanding High-Risk Loans
High-risk loans are extended to individuals whose creditworthiness is deemed questionable due to factors such as poor credit history, inconsistent income, or a high debt-to-income ratio. These loans are typically unsecured, meaning they do not require collateral, which adds to the lender’s risk.

The Cost of High-Risk Loans
Given the elevated risk to the lender, high-risk loans often come with higher interest rates or fees to offset potential losses. According to the Consumer Financial Protection Bureau, payday loan rates can be exceedingly high, with an average annual percentage rate (APR) of nearly 400% CFPB. This high cost underscores the importance of borrowers fully understanding the terms and conditions before proceeding.

Types of High-Risk Loans
High-risk loans come in various forms, catering to different needs:

High-Risk Payday Loans: These short-term loans are typically due on the borrower’s next payday. Despite high APRs, the absolute cost can be manageable due to the loan’s brief duration.
High-Risk Installment Loans: These loans are repaid over several months, offering more flexibility. However, they may require a higher income for approval, and the total interest paid can be substantial over time.
High-Risk Loans for Bad Credit
Borrowers with bad credit are the primary clientele for high-risk loans. Some lenders specialize in servicing this demographic, offering loans without a minimum credit score requirement. Instead, they focus on the borrower’s income as the main criterion for loan approval.

Identifying Legitimate High-Risk Lenders
To avoid predatory lenders, it’s crucial to identify legitimate high-risk lenders. Here are some tips:

Verify the lender’s online presence and website quality.
Opt for lenders with a proven track record.
Check for a secure website (https).
Confirm the availability of valid contact information.
Review the lender’s transparency regarding terms and conditions.
Instant Approved Loans: A Trusted High-Risk Lender
Instant Approved Loans stands out as a reputable direct lender in the high-risk loan market. They offer both payday and installment loans with a streamlined online process, boasting high approval rates and quick funding—often within one business day. Their commitment to transparency and customer service makes them a reliable option for those with poor credit histories. To explore their offerings, visit the High Risk Loans page on their website.

In conclusion, while high-risk loans can be expensive, they serve as a critical resource for individuals with limited borrowing options. By conducting thorough research and choosing a legitimate lender, borrowers can navigate this challenging financial landscape more safely.

Why should you Refinance a Mortgage in Australia?

In addition, if the refinancing of a home loan is performed with proper preparation and planning, then refinancing can also make it easier for a better financial scope for you and your family.

What is Home Loan Refinancing?

Refinancing is an approach of proceeding with a new mortgage to replace an existing loan. However, this loan can be with the same lender, but it involves switching to another bank in most cases. It provides you some additional aspects like a lower interest rate or an offset account.

Common reasons to Refinance Mortgages

Let’s explore the general reasons to refinance mortgages, including some which you may’ve not thought of earlier.

Lower interest rate: The refinancing of your home loan for a lower interest rate saves your money as well as helps you to pay off the loan sooner. However, every lender uses individual steps to set their interest rates. That is why it is important to consult a home mortgage expert or broker to know what rate you can access.
For renovation: If you are thinking of renovating, you need to save a lot of money since renovating or extending requires additional borrowing funds. If you hadn’t used the available value of your property yet, when you first borrowed, then you can unlock it now to renovate.
Consolidate debt: consolidation of debt is a handy feature of various mortgages, and it could be one reason you are considering home loan refinancing if you’ve lots of credit cards and are paying high interest rates, then in this condition, debt consolidation work well for you. It makes sense to refinance and consolidate your personal debt amount into a home loan to make your payments more manageable.
Fix interest rate: It could be a particularly great strategy to fix your interest rates by mortgage refinancing for a period of time to protect against potential rate increments.
To get better features: Offset accounts or redraw facilities are such features that can help you pay home loans sooner. But if your current mortgage doesn’t offer such aspects and you want to make extra repayments, then it is good to refinance.
Are you planning for mortgage refinancing now or in the near future? Then you can consult with our experts at Your Finance Adviser.

Your Finance Adviser is a well-known name in the field of finance advising company based in Australia. Our skilled and expert team is proficient in offering the best refinance mortgage advice to the clients based upon lending terms mandated by Australia’s important banks & lenders.

Get help choosing the right refinancing mortgage at Your Finance Adviser today.

The bright future of Cardano

In addition, this digital coin has gained recognition among investors as a fast-evolving small altcoin. Due to the growing popularity, Cardano is also encountering quite an amount of smart investments that are automatically executed on the behalf of the stockholder. But these reasons are not enough to justify its increasing name and fame. Here in this article, we will enlighten some of the major indicators of this altcoin’s upcoming bright future.

Fastest growing altcoins in the crowded crypto market
As we all know, the cryptocurrency market is flooded with numerous digital assets. So, in this scenario, it becomes difficult for every digital currency to gain acceptance among the people. But Cardano has managed to achieve the user’s admiration by offering technology-driven smart contract solutions.

In the crowded market where there is Bitcoin, other small altcoins such as Litecoin, Ethereum, etc. These cryptocurrencies are already in the booming phase, attracting stakeholders towards itself is a very challenging task. Still, Cardano has lived up to it and is recognised as a considerable investment option.

Cardano’s scientific approach
Science and technology is the ever-evolving sector of an economy. It plays an important role in online related matters. Same in the case of cryptocurrencies, the technical front should contain the latest technological algorithms to provide the best services to its users. Cardano has righteously achieved this factor and integrated a scrutinised underlying technology. It has fairly differentiated itself from the competition in the crypto market. Hence, Cardano has a wider scope to emerge as one of the leading cryptocurrency exchanges in India.

Incredible growth
Currently, Cardano is worth approx 189 INR. This may sound very simple and less astounding. But to your knowledge, it has reached this far within a couple of weeks and is expected to rise even further. Also, we cannot ignore the fact that this digital coin has just begun its life in the crypto world. Since its introduction, this altcoin has aimed to enhance the market capitalization approach. Now, it can be potentially predicted that the coin will successfully attain the objective behind its introduction.

Since it was developed by Charles Hoskinson, one of the developers of the ethereum altcoin, it makes it a credible cryptocurrency in front of the world. Also, Zurich university declared a paper of Cardano, being the finest proof of stake blockchain technology than other similar cryptocurrencies. One more thrilling news revolved around crypto investors that soon Cardano will support non-fungible tokens in its blockchain.

Wrap up

There is no doubt that Cardano has made a place for its own in the world of crypto. In fact, it is one of the top 10 cryptocurrencies. With recent reviews and statistical calculations, it can be assumed that there is no stop for this digital asset in the near future.

What are Index funds and Exchange Traded Funds?

How do Index funds work?

According to the portfolio aligned with the Index, the fund manager buys or sells units according to the portfolio during any changes in the stock’s weight within the Index. Although it is easier to follow passively managed funds, there is a limitation to this it may not always offer the same returns as that of the Index because of an error called tracking error and scheme expenses. Tracking error occurs due to disproportionate holdings of securities that align with the Index and transaction costs incurred.

Understanding Nifty Index Fund

Nifty Index funds are also a replica of Index funds. Nifty Index funds in India are those mutual funds that are a replica of the composition of nifty stock indices. So you may choose to invest in a set of handpicked instead of restricting yourself to a particular stock. The Nifty Index fund is a replica of the NSE Index, which is a benchmark

Hypothetically speaking, Nifty 50 has around 31% exposure to the Retail/FMCG Industry. Thus, Nifty Index funds that track Nifty 50 will also have 31% of its portfolio invested in the Retail/FMCG sector. The same stocks that are included in the benchmark Index are easier to track and analyze. Nifty Index funds gives you the best of both worlds with the benefit of Indexation and optimum use of marketization of stocks.

Benefits of Investing in Nifty Index funds in India

Risk-adjusted returns: Nifty Index fund gives you the benefit of reduced risk level for those who do not wish for an actively managed fund. Investors should remain invested in Nifty Index fund for at least 3-5 years to generate risk-adjusted returns.
Invest in a basket of shares: Allows you to own the shares in the Index for a fraction of their value in the Index.
Diversification: This allows you to diversify across the top companies in different sectors through a single investment.
Returns in tandem with broad market average: Nifty Index fund is an easy and feasible investment avenue to lock returns in line with the benchmark Index, which means that investors are in tune with the broad market at all times.
Flexibility: Gives you the flexibility to choose between nifty Index direct growth and indirect option.
What are Exchange-traded funds (ETFs)

Exchange-traded fund (ETF) is a type of investment that can trade on an exchange like a stock, which means they can be bought and sold throughout the trading day. From traditional investments to tangible assets like commodities or currencies are offered by ETFs.

Let’s understand the types of ETFs:

There are a few types of ETFs like –

Market ETFs – includes Index S&P 500
Bond ETFs – This is designed to provide exposure to various types of bonds available; corporate, high-yield etc.
Sector/ industry & Commodity ETFs:Designed to provide exposure to a particular industry, such as oil, pharmaceuticals, or commodities.
Style ETFs – This is based on investing style or pattern such as growth stock or small cap equities.
Actively managed ETFs are curated to outperform an Index, unlike most ETFs, which track an Index.
There are a few more ETFs in the market that can be classified based on strategy.

In short, ETFs are easy to trade – you can buy and sell any time of the day

Gold Mutual Fund vs. Gold ETF Where to invest

Gold ETFs are exchange-traded funds that invest in physical gold. Each unit of a Gold ETF represents 1 unit (or in some cases 0.5 units) of gold. While the meaning of Gold Mutual Fund is that fund of funds scheme that invests in Gold ETF. Both help investors do away with making charges associated with physical gold. Gold ETFs are traded on the exchange at the prevailing market price of physical gold, which implies that investors can buy or sell their holdings at prices that are close to the market price, without worrying about paying a significant premium on purchase or selling at a discount.

When it comes to purity, both invest in Gold. (in case of Gold Mutual Fund, the underlying asset which is the Gold ETF invests in gold).

Gold Mutual Fund in India enables you to make a systematic purchase, which means you can invest a fixed amount of money at regular intervals which may help to reduce the average cost of your investment over the long term. Systematic purchases can be made by buying on the exchange or through Gold Funds that invest in the Gold ETF. Through Gold Funds, you can sign up for buying gold at regular intervals for the desired period in a single transaction.

Both can help you diversify your portfolio when it comes to investing. You can easily expose your money to the prevailing prices of gold. Both allow you to invest in Gold in a matter of few clicks from the comfort of your home.

Both can be easily liquidated at a value close to the prevailing price of gold and can be purchased from the comfort and safety of your home.

When you compare Gold ETF vs Gold Mutual Fund, last but not the least, you will need a DEMAT account to invest in Gold ETF while investing in Gold Mutual Fund will not require a DEMAT account.

Gold is thus, a safe haven asset, which makes it an effective portfolio diversifier. It’s thus prudent to allocate 10-15 percent of your portfolio investments to gold. Please consult your financial advisor before taking any asset allocation related decisions.

How to decide between White Label and Private Label Teeth Whitening Products?

Starting a new business can be an arduous task, especially when you are in the competitive world of teeth whitening. Although the market is lucrative and rewarding for new business owners, there is widespread competition, and you have to work hard towards building a loyal base of customers. With large-scale production costs, a wide range of niche products and growing consumer preferences, it is essential to explore different ways of building a teeth whitening business.

Modern Solutions for a Successful Business in the Teeth Whitening Industry

Did you know you can provide a premium range of cosmetic dentistry products to your customers and clients without investing a large amount of money in setting up a manufacturing facility? Also, there is no need to become a reseller for big brands that often compel small businesses to purchase tons of inventory. Instead, you can become a brand of your own.

Modern business solutions ensure a low threshold for new businesses and startups. You can now outsource the production process to experienced manufacturers and focus on sales and marketing. Thus, eliminating the need for large scale investments. Here’s how you can do it.

1. Private Label Teeth Whitening Products

If you opt for private label products for your teeth whitening business, the manufacturer will produce products under your brand name. The benefit of choosing a private label is that you can customize every aspect of the product. From ingredients, product formulation, manufacturing process to branding and packaging, you can ask the manufacturer to follow your instructions. Depending on your contract, they will ship the products to your warehousing facilities or provide drop-shipping service.

2. White Label Teeth Whitening Products

When you choose white label teeth whitening products, you must provide your brand logo and other packaging details to the manufacturer. Because they are experts in manufacturing teeth whitening products, they manufacture the same products for different brands, and the only differentiating factor is the product packaging. When you do not possess the technical know-how of ingredients and product formulation, you can opt for white label teeth whitening products and establish your brand with the help of an experienced manufacturer.

What is the More Suitable Solution for your Business?

When choosing between private label and white label teeth whitening products, the decision depends on your preferences, budget, and business goals. Here are a few ways in which you can decide between the two choices:

1. What is your Business Goal?

Did you know Amazon has many private label businesses and white label sellers on the platform? If you want to introduce your products as quickly as possible, choose white label products. For example, the Clean White Wireless Teeth Whitening Light is a good option for white labelling. As the manufacturer does not have to change the manufacturing process, they can add your logo to the packaging and ship the order quickly. The process becomes even faster if you choose the teeth whitening light without any branding.

2. Do you want to sell a Niche Product?

When you are interested in creating a niche product, unlike other available options, choose a private label product. You may consider the private label a costly option, but you can make it affordable. Seek estimates and quotations from teeth whitening products manufacturers. Usually, when you place an order for large quantities, you can maintain economies of scale and still market a unique product to your customers.

You can also choose a combination of both options to optimize your investment. For example, if your clients include dentists, dental hygienists and DSOs who require in-office LED whitening lights, you can select the white label option. The LED whitening lights at the clinics do not have any custom specifications and all medical professionals use similar equipment.

On the other hand, if you sell your products to end-users, you can opt for a private label and customize your teeth whitening kit. You can even discuss your labelling requirements for teeth whitening pens and syringes. It will help you to customize the teeth whitening gel, container sizes and even branding options.

To summarize…

Choose Private Label Products when:

a) You have the expertise to manufacture the product and have a proven formula ready.

b) Your product is superior to the available options in the market.

c) You do not have a large-scale manufacturing facility for your products.

d) You are willing to spend additional money on customization.

Choose White Label Products when:

a) You want to take advantage of the booming teeth whitening market and introduce your brand quickly.

b) You do not have the expertise to create effective cosmetic dentistry products.

c) You have an efficient sales and marketing team but no manufacturing facility.

d) The available white label product options satisfy your requirements.

Make Smart Business Decisions

When starting any business, the prospects seem lucrative, especially if it is a booming one such as teeth whitening. However, make smarter business decisions to guarantee your success. Spend time understanding your expertise, budget and goals to make the right decision.

Whether you choose the private label option or prefer white label teeth whitening products, you need the support of an experienced manufacturer to start and sustain your business. Choosing the right teeth whitening products manufacturer will help you in understanding the market and ensure the growth of your brand.

How to select mutual funds beyond star ratings

Why should you not only depend on ‘Mutual Fund Ratings’?

It is essential to look beyond rating for various types of mutual fund schemes. Investors need to consider the following factors:
Evaluate the financial health: An investor must thoroughly perform due diligence on his investment’s financial health
2) Portfolio composition: Investors also need to check the portfolio components, sector allocation, the credibility of government papers in different types of mutual funds he is looking to invest.

3) Cash level: Fund Managers adjust the cash level in their portfolio depending on the prevailing liquidity requirements and portfolio changes due to market cycles. If the equity markets are rising, they trim their respective allocations to keep a higher portion in cash and reduce the cash level during a falling market. Therefore, it is advisable not to blindly follow star ratings for various types of mutual fund schemes.

It is not wise to judge several types of mutual fund schemes based on star ratings, as they can also be subject to market risks. . Always remember high returns and high risk goes hand in hand.
In a nutshell – Yes, one can consider ratings for different types of mutual fund schemes to reduce the time on research, but this should not be one of the most important factors to consider while choosing a mutual fund.
Here are six factors to consider when choosing different types of mutual funds schemes in India beyond the best star rating funds

Goals – While investing in a mutual fund or several other types of mutual fund schemes, one must choose its goals in terms of the time period, returns and primarily the specific goals. For example, planning your retirement, planning a vacation or buying your dream house. It is imperative to identify each goal depending on various factors such as age, income, gender, etc. You can take a call depending on the tenure, be it long or short term, and select the types of mutual fund schemes accordingly.
Risk – Risk is an important factor to consider while choosing the types of mutual fund schemes offered by mutual fund Companies as risk is a phenomenon of uncertainty. Do consider your risk profile before opting for various types of mutual fund schemes like Equity, Debt or Hybrid Funds. Your type of mutual fund schemes will vary depending on their performance. Some examples of risk are:
Sudden surge in Covid-19 cases in India could impact the future of equity Markets.
Equity has risks involving volatility of the markets, quality of stocks invested, etc.
Debt and hybrid funds also have other risks such as a) portfolio risk, b) change in Government policies affect portfolio component and quality of papers or c) rating agencies downgrading various money market papers.
Investment Strategy- Ensure that the investment strategy followed by a mutual fund company aligns with your goals and if it is conflicting, you should evaluate the reasons for it. It is suggested to go for a long-term approach instead of chasing returns that carry high risk.
Expense ratio – The expense ratio is the commission or the fee charged from the investors to manage their investments. As an investor, you must target mutual fund schemes that have a low expense ratio.
Exit Load – Exit load refers to the fee charged by mutual fund companies from investors while exiting from a particular mutual fund scheme.
Fund Manager and Fund House – Check for the credibility of the fund house. Past performance may not sustain in the future is a reality. Do not blindly follow star performance. They could be futile in the future.

What are the facts of SIP plans in India

Let’s take a look at few interesting facts on SIP plans in India.

Market timing becomes irrelevant
One of the biggest difficulties in equity investing is; when to invest or where to invest? While investing in a mutual fund solves the issue of where to invest, SIP plans help us to overcome the problem of when to invest. SIP plans involve disciplined investing irrespective of the state of the market as SIP investors buy even when the markets are low. When the markets are bullish, it may not be prudent to commit lumpsum investment and go for a staggered investment, thus balancing your portfolio. This makes timing the market irrelevant.

Reduces the average cost
In SIP plans, one starts investing a fixed amount regularly. Therefore, one ends up buying more units when the markets are down and NAV is low and less number of units when the markets are up and the NAV is high. This is called rupee cost averaging.

If you are not well versed with the swings of the market, it would stay away from making ill-timed investments with a one-time investment. It would be better to avoid lumpsum investments when the markets are rising. Starting an SIP tends to average out the cost of your investment portfolio as you buy even when the markets are low, which is the best time to buy.

Power of compounding
Compounding is the ability of your investment to generate earnings, which are then reinvested to generate their earnings. In simpler words, the returns you will earn from your invested amount will be re-invested, and thus increase your principal amount. Starting a Systematic Investment Plan (SIP) will help to grow your investment with the power of compounding as you invest a fixed amount every day/week/month etc. You can use a SIP plan calculator to find out how much to invest monthly and how would your investment compound over the years.

Does not strain our day-to-day finances
SIP plans allow us to invest very small amounts (starting from Rs. 500/-), as against larger one-time investment, if we were to buy directly from the market. This makes investing easier on our wallets due to the flexibility in the ticket size. SIP plans, therefore, become one of the ideal investment options for a small-time investor, who would otherwise not be able to enjoy the benefits of investing in the equity market.

If you wish to accumulate your savings prudently, you might opt for a larger SIP amount.

However, it is advisable to research before starting SIP plans for 1 year or a longer duration in a mutual fund. Do not select a fund merely on rankings and ratings. While investing, it would be advisable to have a long-term approach and select the fund whose investment objective matches your financial goals and needs. Do consult your financial advisor for assistance.

How Does SIP in Mutual Funds Help in Wealth Creation?

The meaning of an SIP is that it is a mode of investment in mutual funds, wherein the investor puts in a fixed amount of money every month, similar to a recurring deposit. The meaning of an SIP is in its full form; Systematic Investment Plan. An SIP allows the investor to buy units on a specific date every month. The investor decides the amount that he wants to invest in the mutual fund scheme.

The meaning of investing in an SIP in mutual funds is that it comes with diversification benefits which help during market ups & downs. It also frees the investor from timing the markets. l. An SIP brings with it rupee cost averaging, which means investors can get more units when the prices are low, and less number of units when the prices are higher. An SIP enforces the habit of disciplined investing, allowing the investor to invest a fixed amount each month.

It gives the opportunity for high risk with the potential for high reward. Retail investors’ interest in mutual fund SIPs has gone up, inflows into equity mutual fund schemes surged to a record high in July, a 350% jump from June as per data from AMFI.1.

Mutual funds are generally a preferred option for investors looking to invest for the first time. This is primarily due to the diversification it offers as well as professionally fund management. It is one of the most convenient ways of investing as investors get to decide the amount and the frequency. In addition, SIP helps the investor with benefit of compounding over time.

The SIP approach helps investors decide where to invest, how much to invest and when to start, pause or cancel an SIP. However, investing is a long-term game and one redeems to achieve one’s goals and not as a knee-jerk reaction to the market ups & downs. The secret to creating wealth from mutual funds is regular tracking of the risk-reward tradeoff in investments.

To choose to invest in which type of Mutual fund for SIP investment depends on the investor needs. At the end, the investor’s needs to assess whether their financial goals are met with minimal exposure to risks. Therefore, one needs closely monitor the weights allocated towards the portfolio.