Articles

Buying a new home can be an exciting yet nerve-wracking process. You have to find the right house to purchase and a suitable mortgage. You might feel pressured to find a home right away, but before you start visiting houses and making offers, your finances should be in check as well.

With pressure growing for young Australians to become first home buyers, a guarantor home loan can help them start their homeownership journey. In guarantor home loans, the lender uses the borrower’s property as the main security for the debt (as in conventional home loans) while also using the guarantor’s property for the mortgage.

For any homeowner being underwater on a mortgage is not a comfortable position to be in. Underwater mortgages can occur due to many reasons, but it mainly occurs due to falling property values. Owing more on a property than its current worth can lead to a number of problems.

A mortgage is underwater when the loan balance is greater than the market value of your home. In other words, you owe more on the house than it is worth. You may also hear this situation referred to as an upside-down loan or negative equity. When you have equity in your home, that means the current market value of your house exceeds what you owe on your mortgage. Negative equity indicates the opposite of that.