Tag Archives: loan

More than the Loan Itself: Deconstructing the Parts of the Cost of Borrowing

LoanDealing with debt, especially loans, is one of the most confusing things possible. Yes, the offer sounds perfect for your needs and not to mention the sweet price. But, as you go on paying the loan, the rate consistently changes. So, is this mistake on the part of the lender? Well, probably not.

Rapid Loans explains that borrowing money isn’t all about who offers the lowest interest rate because that’s just part of the overall cost. There are actually a lot of other payables if you carefully examine the details of the loan contract. That’s why it’s best to know the real cost of borrowing or making a loan first before committing to one.

The Compounding Parts of a Loan

Other than the interest rate you pay monthly, other factors add up. The actual cost of borrowing includes the following:

  • The Loan Baseline – depending on how high or low your loan is, there’s always a standard or flat rate. So, if you borrowed a below average value, you’re likely to pay the same rate with standard loan amounts.
  • The Loan Duration – the longer the repayment period, the higher additional payments you’re likely to pay.
  • The Repayment Mode – the standard mode of payment is monthly, which is an exact all-year round guarantee. But, there’s also the bi-monthly payment where you only have to pay 24 times a year.
  • The Type of Interest Charge – most loans have the Annual Percentage Rate (APR), which includes the total arrangement fees and charges. Always look at the APR to gauge the whole of your loan correctly.
  • The Transaction Fees – late payment fees, default charges, and other miscellaneous fees are always present in loan repayment. Remember to take them into account.

Some lender will have different structures that you should pay attention to. But as a standard way of making any loans, don’t focus only on low-interest rates.

Home Loan

Be Rewarded with the Best Home after Years of Medical Study

Home LoanFinancial records show that medical practitioners are less likely to default on their loan obligations. This is in part because, particularly in England and Australia, student loans are linked directly to their income. This data plus other factors such as the nature of the work and the high earning potential make it possible for lending institutions to offer special consideration to doctors when it comes to home loans.

So if you’re an Australian doctor starting on a medical career and thinking of buying a respectable home, look at  loans for doctors. Even if you already have an established medical practice, you can still apply. Loans for doctors may offer the following advantages:

  • Save on Insurance Payments. Unlike conventional loans, you may get your mortgage without paying insurance. Regular loans require insurance, but lending companies may waive this, which means huge savings on your part.
  • Higher Loan Limit. While lenders may only finance as much as 80 per cent of the property value for conventional loans, a doctor may take out a mortgage covering 90 to 95 per cent of the home value. There are even lenders who offer higher rates, lessening the deposit you have to pay. JP Loans Financial Solutions even says medical practitioners have no deposit home loans as an option.
  • Higher Chance of Approval. Under this package, applicants have higher chances of approval. The guidelines provided make it easier for doctors to comply.
  • Flexibility on Proof of Income. With this, you don’t have to show proof of income. You don’t have to submit tax records or detailed proof. An employment contract or an offer will do.

These are just some of the advantages you may enjoy when you get a home loan for doctors. You will learn more about the other benefits when you talk to your lender. You’ve worked hard for your medical degree, it’s only proper to get the best home as a reward.