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About Me

Tim Russell

Current Rating: 4.92 / 5
Mortgage Broker
Multipart Finance
www.multipartfinance.com.au
North Sydney, New South Wales
0400530868
► Who is Multipart Finance?
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Put Simply, We assist those who want to grow their wealth through property investment.

When it comes to being a wealth creator, our experience is that those that do, like to push the boundaries. And when you push the boundaries, there is generally a finance hurdle that needs to be overcome.

Our offering specialises in identifying that hurdle and solving it for our clients in the quickest and most stress free way possible.

► How we help can help you
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In this tough regulatory environment, what we have seen is an emergence of smaller funders who can do things that the big 4 can't. Whilst we still deal with the major banks on a daily basis, we have also aligned ourselves with lenders who have a niche offering we know the majors can't solve.

Bottom line, we'll either get you the best finance solution or we'll tell you why now's not the right time and provide a game plan for you on what you need to do in order to achieve your goal.

► Want to know more?
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Call: ✆ (0400) 530 868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au

My Activity

answered
Q: Looking to buy 6 units and the CBA has told me I can only get the loan under a Pty/Ltd or company trust. They wont lend to an individual for commercial residential loans?
Is this the same with all banks or just a CBA thing?
A: Hi Paul,

From the bank's perspective (albeit not CBA!) it shouldn't matter if you want to purchase these units in your individual name or a trust as you'll be on the line personally either way if you default.

The question should be, what is the main reason why you want to buy it in your individual name? I would suggest getting advice from an accountant on this but in the meantime, I've actually recently written an article on this subject which was published by the Australian Property Investor Magazine - http://www.apimagazine.com.au/property-investment/to-trust-or-not-to-trust-purchasing-property-in-your-individual-name-vs-via-a-trust-structure.

Moving forward, if you want to have a deeper chat about this, give me a call.

Tim Russell
Call: ✆ (0400) 530 868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au
blog post
How to finance multiple investment properties in today’s market
The other week, I came across an article which confirmed a suspicion I've had about what many investors may be going through with their home loans right now…Written by business reporter Ste ...
blog post
Is it better to purchase a property in your individual name or via a trust structure?
When it comes to property investing sometimes I think we can complicate things a bit. I often hear investors get really focused on buzz words like negative gearing, depreciation, yields and purchasing ...
blog post
Why commercial loans can be a better option than residential
The past couple of weeks have seen further changes to the major bank’s product lines off the back of increased scrutiny they’ve been exposed to via the royal commission.
Last week ...
blog post
What should you do? Buy a place to live or purchase an investment property?
It’s a conundrum that many people face right now, particularly with the property boom we’ve seen in Sydney & Melbourne over the past 5 years. That is, the decision to focus ...
video
How to win the serviceability game

blog post
The 3 finance factors that will make or break a development
The May CoreLogic Home Index values came out last week noting the 8th consecutive month-on-month fall in proeprty values nationally since the market peaked in Septebmer last year.So if it wasn&rsq ...
video
The only time interest only repayments make sense - Tim Russell Multipart Finance

video
What is the worst term in finance

video
How to buy property through your super

blog post
Should you own or lease your office space?
Every business goes through natural cycles. The start is the most stressful time where money is flying out the door and there’s not much coming back in! Eventually though, things st ...
answered
Q: Hi, we are looking for more room and a bigger yard for the kids so taking the plunge and looking at Suburbs around Turramurra. Would anyone recommend a Real estate agent we could start talking to?
A: Hi Helen,

David Walker is a close friend of mine and director of both Ray White Turramurra and Wahroonga. He is in my opinion the most well regarded and established agent in the area and you wouldn't go wrong connecting with him.

(m) 0414 184 911
(e) david.walker@raywhite.com

Kind regards,

Tim Russell
Multipart Finance
(m)0400 430 868
(e) tim@multipartfinance.com.au
answered
Q: Is it possible to apply for a commercial loan when investing in a block of 6-8 units (residential tenancy, units registered together as one). I understand there would be a lower LVR in this scenario but just wondering if this is possible.

Would a commercial loan take into consideration my own serviceability from my own personal income?

Thanks.
A: Hi PM,

The answer is yes. Based on the fact that you've mentioned 'commercial' I'm sure you've discovered that the max number of units a resi lender would take on one title is four.

What a commercial lender will do when valuing the unit block is give you an 'all in one line' valuation. This means that the value will be based on if they had to sell the whole block at once. If that was the case, the average punter wouldn't be able to buy the whole block, only really developers could so your market would be limited, hence you'd get a lower valuation using the 'all in one line method.'

In saying that though, most commercial banks would still be happy to fund it.

Yes, a commercial lender would factor in your own personal income. In a best case world, their general rule of thumb is that rental income from the block should equal one and a half times the loan repayments. If it failed to achieve that, they'd then look at your personal income as a way to mitigate their risk.

Hope that helps, if you want to talk further, feel free to get in contact.

Kind regards,

Tim Russell
Multipart Finance
(m) 0400 530 868
(e) tim@multipartfinance.com.au
(w) www.mulitpartfinance.com.au
answered
Q: Hi, there’s a property in Glebe I’m thinking of buying …….. it is a townhouse with a commercial zoning and a business operating on ground floor…I would live upstairs. My question is what percentage of the purchase price could I borrow?
A: Hi Chris,

For a mixed use security, banks wouldn't allow more than 80% LVR on the purchase price.

If you want to have a chat about this further, feel free to get in contact.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: My partner and I are separating but I would like to try and keep the home. The property is valued at $1.3m and we currently owe $290k. We have agreed on a settlement amount of $700,000 and I would like to see if I can increase the loan to $1M. I have stable employment and earn $270k p.a. There are no other debts, no children and I could rent out the spare room for $110pw. Is this possible?
A: Hi Pete,

Having gone through a divorce myself, I understand what you're going through.

There's enough equity and income to pay out your ex and you keep the loan.

For a bank to process the proposal though, you will need to also have finalised Consent Orders to enable to bank to allow that sort of 'cash out.'

Happy to help if you'd like to discuss this further.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: hi, i am a first home buyer and looking at a home for $335,000… what’s the minimum deposit I need?
A: Hi Trish,

I'm not sure what your personal circumstances so can't confirm things like serviceability. But provided you get both the $10K FHOG & stamp duty concession, you could secure that property for as little as $10,000.

However, for loans >90% you need to show at least 5% genuine savings so the reality is you'd need at least $16,750.

Let me know if you want to talk further.

Kind regards,

Tim Russell
0400 530 868
answered
Q: We are looking to spend about $100,000 on renovating our home. We think it worth about $750k and we owe about $300,000. I have had a lot of experience as a project manager and instead of contacting a builder we want to project manage the renovations and the tradies ourselves. Will that impact our ability to borrow the money for the renovations?
A: Hi Martin,

Not necessarily, but you just need to make sure you talk to the right lender, in the right way.

There are two ways banks could look at what you're looking to do:

1. Construction loan. If you go to a bank and tell them you're going to be making significant structural changes to your property, the banks will classify this as a construction loan and will force you to have a fixed price building contract in place. As you know, these contracts have a builder's margin in them and you can't control funding.

2. Cash out loan. The other option is to obtain that money now, before you begin construction and tell the bank that the money will be for future personal use. This will allow you to access all the money and project manage the property from your end rather than a fixed price building contract.

The key here is choosing a lender who is comfortable with cash out and has a suitable policy to match.

If you want to discuss this further, feel free to get in contact.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: Hi,
I’ve been contracting for the same 3 business for 3 years and averaging around $130,000 a year. Will I need tax returns to obtain a home loan or will letters from the business owner be enough?
A: Hi Jamie,

I'm presuming you invoice to these three businesses via your A.B.N so are self employed. If I've got that correct, there's three paths you can take to get a home loan:

1. Provide your last two years tax returns.
2. Provide just your 2017 tax return.
3. A low doc option where you and your accountant self declare your income.

All three are achievable but there's a fair difference in interest rates with option 1 being the cheapest option and option 3 the most expensive.

If you want to discuss this further, feel free to get in contact with me.

Kind regards,

Tim Russell
*** ****
**@****
www.multipartfinance.com.au
answered
Q: Hi, I have an interest only loan for 840,000 on an investment property worth $1.2M… the rate is 4.85%. I spoke to the bank and they said if it was a principal and interest loan they would reduce it 3.99%. Is there really that much of a difference between interest only and P&I loan?
A: Hi Ali,

Yes there is a large difference but not by that much.

Most banks will do interest only investment loans for around 4.40%.

Switching to P&I will definitely get you a cheaper rate but for some investors, the increased repayment affects their cashflow.

As such if you don’t want to go to P&I there are better offers out for interest only loans

Feel free to get in contact if you want to talk further.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
answered
Q: If I purchased an investment property as my first home can I still get the first home buyers grant?
A: Hi Jade,

The OSR says that you need to live in the property for a period of 6 months within the first year of purchasing it. As such, technically you could rent it out for 11 months, move in on the 12 months, stay 6 months and then rent it out again.

However, you can't get around the fact that at some stage you need to move into the property in order to get the grant.

If you want to chat about things a bit further, feel free to get in touch.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
answered
Q: Is it possible to transfer the equity I have in an investment property to our home…. our home is worth around $600,000 and we owe $265,000. We have an investment property worth $450,000 and the loan is $250,000.
If we look to refinance can borrow up to 80% on the investment property to repay the home loan?
A: Hi Timo,

Claiming a tax deduction on a loan is linked to the purpose of the funds, not what property the loan is secured against. As such, what you're looking to do probably won't work.

There is however a strategy called Debt Recycling which would allow you to achieve your desired result.

I've written an article about this which I think you would benefit from - https://www.multipartfinance.com.au/blog/what-is-debt-recycling-a-simple-strategy-that-produces-a-significant-outcome

Any questions, feel free to get in touch.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: A friend suggested I invest my cash savings into my own SMSF to help with the purchase of an investment property? Is this wise and how can I get my cash back?
A: Hi Lucia,

Setting up an SMSF to purchase an investment property can be a great idea depending on a) setting up the fund correctly in the first place and b) choosing the right type of property.

People generally go down this route because they understand how property works more then they do with shares.

Being able to set one up very much depends how much you have in super right now because banks have lower LVRs and liquidity rules for SMSF loans.

I've actually written an article about this topic which you may find interesting - https://www.multipartfinance.com.au/blog/2017/10/5/how-to-buy-property-through-super

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
video
How to Determine Your Max Borrowing Capacity

question
Q: Really important to make sure your home loan aligns with your investment goals. Recent client of ours wanted to focus on paying down debt but was on interest only with an extremely high rate. Simply switching to P&I has saved him $4,394 p.a. Surely lunch is on him next time?
blog post
What is debt recycling? A simple strategy that produces a significant outcome
p
Debt recycling is a simple strategy that is underutilised by wealth creators. In this post, I want to explain how it works so you can consider if it’s something you might want to use for ...
blog post
The Valuation Game - How bank valuations work & 3 strategies you can use to get the best result
Valuations are the bugbear of my existence.An individual’s personal opinion on the value of a property can completely make or break someone’s finance application.This post will she ...
blog post
How to protect your commercial loan in a downward market
I had a question from a prospective client recently who asked, “Why do commercial banks usually only offer 3 year rolling terms as opposed to a 30-year term like a residential home loan?& ...
answered
Q: On a commercial loan is it possible the same margin or line fee above the BBSW for the first 3 years be negotiated to roll into the following 3 years. I’m concerned that if we’ve been offered a margin of 3% for the 3 years, the bank can then bump it up to 5% after the first 3 years. Can the same margin be included in the agreement for 3x3 year loan agreement?
A: Hi Alistair,

Just like a residential variable home loan, commercial lenders reserve the right to review and amend their loan agreements based on a combination of market conditions and you as a customer.

The first factor you can't do much about and the good news is depending on the overall risk level of your security there's not a huge difference with banks at the moment as it's a competitive market.

However, the second factor needs some consideration. The majors usually have their commercial facilities as rolling three year terms, which can sometimes be a big issue. For example, let's say you're self-employed and your revenue has dipped from what it was when you originally took out the loan. When it comes time for review, the bank may change the goal posts, as you're now a higher risk for them.

There are lenders out there who won't do this and will instead structure your loan term just like a resi lender would i.e. once it's been approved they'll leave you alone.

For some, having this comfort can be a bigger benefit then simply a lower rate.

Hope that helps.

Tim Russell
Call: ✆ (0400) 530-868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au
video
Commercial Finance in 2018

blog post
Three questions you need to ask before you refinance
The home loan market is constantly changing with new and attractive deals coming up all the time. Refinancing can help you secure a more competitive interest rate, access the equity in your home, add ...
answered
Q: Hi, same question as last year. The RBA hasn't made any changes for 12 months or more so do people expect there to be some movement in 2018 and is now a good time to consider fixed rate options?
A: Hi Jacob,

I've just done a blog post with my annual predictions for 2018. Link below:

https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/121/whats-ahead-for-commercial-finance-in-2018

Experts like AMP Capital's Head Economist Shane Oliver are expected rates to remain unchanged till the end of the year at the very earliest.

But when it comes to rates, experts are only really guessing. The only thing you need to ask yourself is, "If rates were to increase, would I be struggling?" If the answer is yes, then it's something you need to consider.

I've got a one minute video on this topic which I think you'll find useful - https://youtu.be/Io8pnNr_D48.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I’m looking to buy a property in Western Sydney with 40% deposit. The purchase price is $650,000 but it is a company title property include land and house. Are there any finance restrictions for company title properties?
A: Hi Ash,

In relation to company title properties, you're restricted in the amount of lenders that will finance those types of properties and max LVR is usually only 80%.

As such, if you've got a 40% deposit, you should be fine.

Only thing to consider is if you plan to sell the property one day. Many people in Sydney need their LVR >80% to secure the property so if you decide to sell you'll be restricted to dealing with only buyers who have a +20% deposit.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I feel as though I’d like to move away from the big 4 banks and would like to know what is the best 2 and 3 year fixed rate on investment property?
A: Hi Shaun,

First thing is, you've got to make sure you're fixing for the right reason. I've done a one minute video on this topic which I think you'd benefit from - https://youtu.be/Io8pnNr_D48.

In saying that, depending on your circumstances, for a 2 year fixed rate, I could get as low as 3.89%. For a 3 year fixed rate, you'd be looking at 3.99%.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Out shopping for furniture yesterday and we were asked if we wanted to use zipmoney to pay instead of our credit card. We said we never heard of them and asked who are they and what are the benefits. We ended up paying by credit card but had a look at their website. Has anyone used them?
A: Hey Nadine,

Zip money is essentially a credit card. What they do is advance you the money for your product with a 12 month interest free period.

If you don’t pay it off in that time though your rate will jump to 20%.

Obviously their business model is based on the fact that a chunk of their clients won’t be able to pay it off in that time.

Bottom line, if you’re good at managing cash flow, perhaps a good option. If not, I’d steer clear.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Hi, my wife and I have committed to paying an additional $300.00 a week off our home loan this year. Are we better to pay $300 every Monday or set up a direct debit for the 1st of each month for $1200?
A: Hi Craig,

When it comes making extra repayments, just make it simple and work it into however you manage your family budget.

If you guys think about things in weekly amounts, do weekly payments.

Alternatively if your bills are done on a monthly basis, I would set up the payment on the first of the month.

Whichever option you choose though, set it up as an auto debit so it's set and forget.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I am about to sell a property which will be able to pay off its loan, my current residence loan and one investment property, is it best to keep a mortgage on an investment property to be able to claim the tax or would it be better to have the investment fully paid off and keep the rent as PAYG income?
A: Hey Kaz,

Did I read currently that you have two properties, an owner occupied and an investment and your question was which property do you sell?

If that is correct, the simple answer is to sell the investment property and use residual funds to pay down the debt attached to your home loan.

For all of us, when it comes to wealth creation, the first step is to own your owner occupied property outright. Being debt free is a MASSIVE step towards a successful retirement.

I don't know what the numbers are but if the residual money from the sale of the investment property can be used to pay off your home loan then it is definaely something to think about.

If you want to go through things in more detail, my contacts are below.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Hi, I’m looking to buying a house and I will obviously need to get a mortgage. I’d hope to not spend more than 500,000 on a house. I’d say I’d have a decent savings and should be ok for a deposit by time I’m ready, I work full time (135k pa). My issue is I’ve never borrowed/owed money before and lack a credit score of any sort. How do I go about making sure I’ll be able to get a mortgage easily, while not wanting to have fees for money I don’t really need to borrow?
A: Hi Jade,

This is one of the biggest misconceptions that people have when it comes to borrowing money. For some reason we've been trained to think that we need a credit card or car loan etc first in order to build up a credit history before we can apply for a home loan.

Maybe we were all brainwashed by the CBA dollarmites program when we were in primary school but the reality is banks only care about two things when it comes to borrowing money:

1. What is your deposit?
2. Do you have enough income to afford the repayments?

As long as you can answer those two questions, you'll have no issues borrowing money.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I am about to pay off my unit so will be mortgage free. I will then be buying a house with my partner which will be for approx the same amount as the unit sale price. Is it possible to get a short term home loan so we can buy a house when we see it, then pay off the home loan once the unit sells? Is there any positives or negatives doing this?
A: Hey Ansopny,

There's actually three ways to do it and bridging is one of them.

I've actually written a blog post about this topic which is worth a read.

Check out the link below:

https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/124/all-you-need-to-know-about-bridging-finance

Moving forward, if you've got any questions don't hesitate to give me a call on 0400 530 868 or email tim@multipartfinance.com.au.

Kind regards,

Tim Russell
blog post
All you need to know about bridging finance
They say that purchasing your first property is the most stressful thing you’ll ever do. For those that have done it, I’m sure you’ll attest to this fact. However, in my ...
answered
Q: We live in North Western Sydney but both work at Mascot and thinking of renting our place and living in an apartment closer to work for 12 months for a change in lifestyle. When we discussed this with some friends they suggested we should change our home loan to interest only to maximise negative gearing. Is this good advice as when we called the bank they said our interest rate would increase by 0.20%?
A: Hey Kym,

Now that the market has both higher rates for interest only and investment loans, more thought needs to be given these days into what your ultimate strategy is for your property.

Most of my clients tell me that they want their investment property to assist in funding their retirement. To do this it means that the loan needs to be paid off one day.

For this reason, if making P&I payments doesn't hurt your budget, I'd stick with that as opposed to switching to interest only and copping a higher interest rate.

Let me know if you want to talk about this in further detail.

Kind regards,

Tim Russell
blog post
What's Ahead for Commercial Finance in 2018
Similar to Australia’s recent 4-0 Ashes victory, it’s fair to say looking back at 2017 that commercial property markets had a good run!
So what’s ahead in 2018? Well, it ...
video
How to buy your first investment property

video
What you need to consider before you fix your home loan

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