Category Archives: Conveyancing

Amongst the biggest concerns for anyone buying a home prior to them applying for a loan is how much they will repay through the interest rate. To be honest, the interest rate varies according to present market circumstances. Nevertheless, there are two things that you can do in order to help yourself lock in the most ideal rate possible. With that in mind, there are a couple of key factors that influence mortgage interest rates.

  • Your credit scores

The most significant factor that can help determine what you get on your mortgage loan is your credit history. To put it simply, loan providers use this number as an indication of how most likely you are to be reliable at repaying your loan. If you have trouble trying to repay lower loans like personal credit card debt or a car loan, you’re very likely to have trouble with paying off bigger debts like home finance. It is essential to get your credit history in the best form possible before you submit an application for your home loan. Start with investing in helping to make your payment on time on a monthly basis. Then, make sure to pay a bit over the minimal cost if possible, to help pay your loan off sooner.

  • Your down payment

In case your credit history is not the best, the one thing that you can do in order to help decrease the interest rates that you are given by lenders, is to make a considerable advance payment. This works out in two ways: by proving to the lender that you are with the capacity of saving and by reducing the total amount that you are borrowing from the lender. Nowadays, the majority of borrowers only have to create around 3% to 5% of the home’s purchase value so that you can be eligible for that loan. Nevertheless, if you are looking to utilize the advance payment to lessen your rate, you should target to save around ten percent to twenty percent of the home’s purchase value.

  • Your loan term

In the present mortgage market, mostly, offers for loans could be 15-year or 30-year loans. Although a lot of homeowners choose for the 30-year option, it is important to mention that reduced loan terms are frequently qualified to receive improved interest rates. However, on the one hand, the bank will regain their investment quicker with a reduced loan term. On the other, they are also heading to be getting an increased payment from you every month. Hence you will need to be very certain that you’re in a position to pay for much more when the loan term is reduced.

  • Your interest rate type

There are two different sorts of interest rates that soon-to-be homeowners can pick from when they submit an application for home finance, adjustable rate and fixed rate. Adjustable-rate loans normally get started with a reduced, basic interest rate. Then, after a group amount of time, the rate corrects itself to be in line with whatever the existing interest rates are at the time. During this time, your payment also updates, consequently. On the other hand, fixed interest rates are commonly more than adjustable rates from the beginning. However, they remain the same when it comes to the duration of the loan.

When you have finally found your dream home and you are ready to buy, it is time to engage the services of a professional solicitor. The purchase of your new home should be exciting, so enlist the help of Conveyancing Shop  to do the hard work for you. Find out more about our services here

Conveyancing is the process of transferring a property title from one person to another. It’s a lengthy process regulated by a set of laws, and can be quite complex. It can also be quite intimidating, which is one of the reasons why it’s a good idea to hire professional to help you through conveyancing. It’s important to understand all the rules and regulations that govern the process and ensure you’re aware of the recent changes. Making mistakes during the conveyancing process can prove to be expensive and cause legal trouble down the line. All new laws are introduced to protect the interests of everyone involved and to ensure all participants follow the law. The new changes are also introduced to streamline the workings and make it less complex.

The new conveyancing requirements 

These requirements were introduced recently and include both traditional and electronic conveyancing to make both transactions more secure.

  • Vendors must provide a land tax certificate to purchasers – Furnishing the land tax certificate will showcase that the property doesn’t have any tax liens pending and the buyer doesn’t have to worry about any additional expenses. It also protects the buyer from paying tax that’s overdue and must be paid by the previous owner. This means the original owner will have to pay the overdue amount before completion of the contract.
  • Vendors must obtain a Foreign Capital Gains Tax Exemption Certificate – This is only required for properties valued over $750,000 but is essential to carry out the transaction legally. This measure was introduced to ensure foreign investors don’t avoid tax by buying property on Australian soil. The certificate is issued by Australian Taxation Office or ATO and must be presented to the buyer before completion of the agreement. This protects the vendor as the buyer can’t hold back 12.5% of the purchase price and remit it to the ATO as withholding tax.
  • Bylaws must now be annexed to strata contracts for sale – By-laws are a set of rules that owners of the property, tenants, and even the visitors must follow. These can vary from one strata scheme to another, which is why it’s essential to understand them before committing to a purchase. Vendors are now required to include bylaws in strata contracts to ensure the buyers have all the information they need and sign the contract with their open eyes.
  • Pool compliance certificates or non-compliance certificates must be annexed to contracts – No property with a pool can be sold legally if it doesn’t have a valid compliance, non-compliance, or occupation certificate. These certificates also need to be annexed into a Lease or Residential Tenancy Agreement for them to be considered valid. They also need to be annexed into the Sale Contract for it to be considered complete. Sale of pool properties without this certificate is illegal and carries considerable risk.
  • Purchasers must sign a purchaser declaration form – The government has levied a 4% surcharge on property purchases by foreign persons and entities, which is why buyers need to provide the declaration on every purchase. It must be submitted to Office of State Revenue to help calculate the amount of tax applicable.

If you want to know more about electronic conveyancing, don’t hesitate to get in touch with us at The Conveyancing Shop today. You can call us at 02 9686 3366 or contact us through this form.

The Internet has significantly changed the manner in which people carry out their transactions and the real estate industry has experienced this change as well. Many real estate transactions are now carried out online through secure and monitored platforms. Electronic conveyancing is one such transaction and it has risen in popularity over the years. It has a number of distinct advantages that makes real estate transactions easier.

What is electronic conveyancing? 

Electronic conveyancing is a transaction carried over the Internet through a digital medium instead of traditional paper medium. The participants in the transaction carry out the agreement by signing digital documents with electronic signatures. The platform for this transaction is provided and supervised by Property Exchange Australia Limited (PEXA). The participants, representatives, and their financiers interact and communicate through this platform.

Electronic conveyancing doesn’t cover all aspects of conveyancing but it’s getting there. In its current form, the platform is a settlement room where all initial transactions leading to the final agreement signing is carried out. This platform is regulated by Electronic Conveyancing National Law (ECNL) to protect the interests of the participants and ensure all transactions are legal.

What are the characteristics or advantages of electronic conveyancing?

 E-conveyancing makes the entire transaction easier and more convenient for participants. It’s also a secure platform so you can trust it for high-value transactions. Here are some of the characteristics and advantages of this system:

  • Contracts can be issued electronically – The contracts in the transaction can be issued electronically with all the negotiated clauses and provisions in them. Participants can negotiate the clauses over this platform and alter the contracts according to their requirements before signing the agreement.
  • Contracts can now be signed electronically – You don’t need to print out the agreement and sign it physically. Electronic signatures are valid and legal so it can be used as proof in court if needed. 
  • Settlement can occur electronically without paper signing – As the signatures are legally valid, there’s no need for paper documentation. The settlement can happen without any need for signing physical documents.
  • Vendors receive money faster – As there is no exchange of paper documents between the buyer and seller, the money also changes hands faster. Once you’ve reached an agreement, the money can be transferred legally via the platform immediately and vendors don’t have to wait for weeks to complete the entire transaction. 
  • Purchasers don’t need to provide bank cheques for settlement – The money is transferred electronically so there’s no need for bank cheques or physical transactions. This also saves time and is very convenient as vendors don’t need to spend time depositing the check at the bank, waiting until it’s cleared, and then getting access to the funds.

Most industries have started to replace their paper documentation with digital agreements. Eventually, title paper certificates will be phased out and the industry will largely use this type of digital documentation in their transactions. The platform is quite secure and every day new technologies are introduced in the market to make electronic conveyancing more convenient and far safer too.

If you want to know more about electronic conveyancing, don’t hesitate to get in touch with us at The Conveyancing Shop today. You can call us at 02 9686 3366 or contact us through this form.