Q: In light of the Banking Royal Commissions recommendation to have the upfront commissions currently paid to mortgage brokers by lenders changed to a fee for service model over the next couple of years, can we ask:
Do people believe consumer’s would be prepared to pay an upfront free to a mortgage broker to help them obtain a suitable home loan?
What impact would such a change have on consumers?
What impact would such a change have on the home loan industry?
A: if the banks have the same upfront fee requirement included in the loan application, many may be willing but as many of the banks will offer things like fee rebates, brokers will be cutout. yet to understand how adding fees to the loans, ontop of stamps duty and LMI premiums will be assisting the consumer.
Banks are not impressed that nationaly brokers are now responsible for 60% of loan applications
As was the case after the GFC, banks will benefit. by cutting the brokers out of the industry the majority of lenders who rely on brokers for their business, will have to close or increase their costs by opening branches. this will just reduce the competition. allowing the banks to further increase the profit margin over the RBA rate. this mark up has increased by about 3% over pre GFC, how much will it increase when they have gutted the industry?
Banks have already become more selective over who they are lending to. I suspect those with the funds will be able to borrow more for investments propertys, while those on lower incomes will be stuck in the rental traps paying an ever increasing rent.
Due to a reduced construction market the economy will stagnate and we will be in a far worse place then we are now.
The broking industry is responsible for many hundreds of thousand jobs. Many are people in their 50s and 60s. Many of these people were relying on selling their businesses to assist with their retirements, if these recomendations proceed, many will lose their businesses and employment and have little or nothing to retire on. All at no fault of their own. The commission was supposed to penalise the banks behaviour not reward them? As per usual the public will lose out.
Q: Looking for a secured no doc loan with property as collateral. Capple1@live.com.au
A: Hi Cameron, what you ask for is not possible and due to all the recent increased regulatory changes even less so. Even though you maybe aware of the risk, lenders would not be able to take the chance on giving you a loan as if you got in to trouble and they fore closed they would be concerned that you may sue for giving you a loan that was not satisfactory.
If you would like to talk to me about a lodoc loan I can assist. I will need an ABN number at least 12 months old (less is possible) and either 12 months bas statements, 12 months trading statements or a declaration of income from your accountant. 0407316648
Q: Where do I find a loan shark in Adelaide that will take a chance on me for a loan
A: loan shark would not be the best answer. lol. talking to a respected broker ould be your first option. cheers
Q: What is the best superfund that has the lowest fees and best returns?
A: No my area of expertise but i would suggest either setting up your own self manager super fund or a fund with minimal fees. First though i would suggest talking to an independent financial advisor. If you need a couple of names give me a call. 0407316648
Q: Can primary production land in a trust for a child qualify for farm expenditure deductions from the trustees personal income tax ?
A: I am sorry I cant answer that. It is a question for your accountant. If you don't have one I would suggest you call Louise Bloomfield of Bloomfield and Associates in Hobart. 03 6231 6886.
Q: Hi how can we get ahead of our mortgage . We have one child , I am part time & fiancé is full time ?
A: no teal secret, put more money in. fortnightly payments will cut loan from 30 yrs to about 24. doubly payment can reduce term to about 8 yrs. as long as the extra payments are not redrawn.
Q: I have a total of $50k saved up and I'm a first home buyer looking to get into the property market. Is now a good time to buy in Sydney? And if not, where can you recommend I consider looking instead? Or should I just wait?
A: prices wont go down so waiting will not help. buy a rental in hobart
Q: I work full time with an annual income of $65k, I also run an eBay business that has a turnover of $50k this year, my net margin is around 5%, which is $2500. If I purchase some eligible assets under $20k and write off the full amount this year, then am I able to offset the loss of $17k against my income from day time job? Does that mean I am only liable for tax on $48k ($65k minus $17k)?
A: best talk to accountant
Q: Wife and I separated. I am moving out today. Jointly owned home. I will be renting. Do I still have to pay half of the mortgage payments and if so does my wife have any right to demand my belongings removed and return of my house keys?
A: if your name is on loan you are still liable. if she stops paying both of your credit files are ruined. you would own half the house so need to either come to an arrangement re your gear. both going to pay lots of solicitors bills if you dont start talking. sort out asap whether house is to be sold or who ever wants it gets paid their 50%.
Q: I have a desire to pool my wife's superannuation with mine and invest in a property. I understand that I must move into the SMSF to do this but what are the practical steps associated with the plan?
A: first talk to a INDEPENDENT Financial advisor
Q: Why is it that I could get about a 0.50% lower rate on my home loan with my bank if I was a new customer? Shouldn't existing customers be getting a lower rate for loyalty? Is this just happening at my bank or with other banks as well? Seems unfair!
A: happens with most. with some banks if you call and question the difference they may offer the rate to you. I believe existing clients should receive the same reduced rates automaticaly but as customer service is often not a major interest to many banks they don't.
Q: My bank said they are increasing their fixed rates. Should I lock in now or are there other lenders who will not be raising fixed rates that i should approach?
A: always worth checking competition
Q: My parents have a defaults and they want to guarantor for me. I qualify for FHOG. My deposit coming from my parents. I earn $1700 p/f before tax. I have a car loan but this is for my dad. Bought 3yrs ago $20k now owing $15k. Can I get a homeloan?
A: will depend on how much you want to spend
and if the deposit is enough. parents going guarantor will probably be of little advantage. the car loan will also make it more difficult.
Q: When is a good time to get back into the property market I sold for a great price and am getting a great return for my money.but I am now renting?
A: not sure there is neccessarily a good or bad time. more like the best areas. and if it is for investment or residence.
Q: Will banks take my centrelinks payments into consideration as income ?
A: Unfortunately no
Q: I'm looking at buying a franchise, is it best to pay cash or obtain a business loan?
A: many quality franchises have prefered lenders who will often be able to do what others wont. ask
Q: I got pre approved for a $420,000 home loan 6 months ago and now the bank say I can only borrow $390,000. If my situation is the same how can the bank change their mind like this?
A: there has been substantial changes within lenders and their servicing over the past 6 months. try another lender or even better a broker.
Q: What are the benefits (if any) of paying your mortgage repayments weekly over monthly?
A: if you divide your monthly payments by 4 and pay that amount weekly, you will pay an extra month payment over the year. if you do not redraw any of this extra, a 30yr loan will reduce to about 24 years. if you could afford double payments the loan would drop to 8 years. only way to pay loan faster is extra payments.
Q: Hi what is the best most cost effective way to remove a person from a mortgage? Currently joint tenants but wish to pay out ex an agreed amount and hold onto the property? I understand there is stamp duty payable to completely remove them from the mortgage
A: need to be able to service a new loan in your own name. essentialy a new loan. some states donnot have stampduty impost if transfering between spouses.
Q: I'm thinking of buying a holiday house. Is there a way to make it a negatively geared investment property?
A: unless you have a large income why would you want to lose money just to be able to claim the loss. make a profit by renting it to short term tenants. claim depreciation and maintenance
Q: Are redraw facilities easy to use? Can they be online or do I have to call the lender every time I want to access funds?
A: yes very easy. almost all are free when online.
Q: How can I leverage the equity in my home to start a new business and limit risk & cashflow during the startup phase?
A: a line of credt loan could help. homeloan rates for business loam is a good option.
Q: With the banks raising rates out of cycle (independently of the RBA), are we likely to see, or are we already seeing rates for commercial loans or say commercial property (office, industrial, retail etc) loan margins increase also ?
A: commercial loans so far have not increased a lot yet. not to say they won't. if concerned, some of the fixed rstes are attractive
Q: 4 months ago we purchased an existing home, which we want to do some work to. When is the earliest we can request a refinance with our Bank?
A: will depend on if the house has gone up in value and if the existing lender will consider a mew valuation. rather than an increase of the existing loan you may have to refinance.
Q: What is the best interest rate I could possibly expect to negotiate if I refinance my home loan?
A: if your loan is less than 80% of the value and if it is only owner occupied. if you have payslips or 2 years tax returns if self employed. you should be able to recieve a variable interest rate of 4.04% with an annual fee of $198. comp rate of 4.05%. an example of 3yr fixed rate is 4.09% with a 4.52% comp rate. if you would like to query me for more details give me a call. 0407316648 cheers