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: Hi Forbes. Thank you for your question. The question in regards to you locking in your rate entirely depends on your personal circumstances and not something any Broker should advise on unless they have had a chat to you about your plans NOW AND IN THE FUTURE. Historically Banks do tend to 'follow the leader' where rates are concerned however have different starting points. Have a chat to your Bank or give me a call if you want to discuss your situation. hope this helps.
Q: Are smsf a good investment?
A: Hi Craig.
That is a good question and depending on who you ask the answer varies.
The SMSF lending space has changed quite dramatically since the trend started a few years ago.
It is extremely important to talk to an EXPERIENCED financial Advisor who will look at your FULL. Financial picture and advise accordingly .
An accountant can also advise on how to structure the Fund .
Be warned : this is not a quick and simple process HOWEVER if you get the right advice you will know whether an SMSF is beneficial to you
Hope this helps. If you need a referral to a FINANCIAL ADVISOR I can help
All the best.
Q: If I move out of my home and rent it do I need to refinance with an investor loan or can I keep the mortgage I currently have?
A: Hi Jonah
You do not need to refinance your current loan, however you may want to change to interest only payments depending on your strategy. I would suggest that you speak to an accountant who can advise on this and also there may be some things to be put in place for your tax returns and for future scenarios . An example would be to get a valuation so that , if you sell in the future, your accountant can work out capital gains tax etc .
Q: Which banks can offer 95% plus mortgage insurance? Looking for a home, thanks
A: Hi Jo. There are still a couple of lenders around that will add the mortgage insurance to 95% however there are a few conditions for each lender for example:
Must be first home buyer/owner
Must live in property
Have 5% GENUINE savings ( ie not a gift etc)
Non conforming banks charge higher interest
It really does come down to the pieces of the puzzle that you have if it fits.
I would live to have a chat to you if you want to know how your circumstances would fair in this space .
Q: I'm getting a loan for an investment property which I intend to pay back quickly, can I redraw against that to buy a car in a few years?
A: Hi Jessica
You can use equity in your property, whether it be the home you live in or investment, for any personal purpose. As I am not able to give tax or financial advice I would speak to your accountant about the tax implications if you redraw the additional payments you have made from the investment loan for personal use . Alternatively you could take out a new home loan for the car with the security being the investment property to keep it 'clean' (I am sure your accountant would love you!)
Q: What is the smartest way for an unmarried couple to go about buying a property together?
A: Hi Jamie . Regardless of your marital status there are many ways to structure a home loan/s to suit . If you both want to be financially independent you could purchase a property together and have a loan each . (Eg a 50/50 split).or you could do 2 loans in both your names. There are different names for these type of setups inc property share loans.
A Broker will look at your full financial picture and recommend options that would suit you needs.
Let me know if I can assist further - I am literally down the road from you !
Q: Are there options for being a guarantor to help your kids buying their first home for only part of their loan, say for the deposit only, instead of their whole loan?
A: Hi Lou
There are options for family members to assist with a first time home buyer .
In your question as parents you could put your property up as security so that the kids could use this to borrow enough money for their new home .
They can go a split loan of 80/20 with the 80% secured by the new purchase and the 20% plus costs secured by the new purchase AND the parents property.
Of course the parents must have enough equity in their property to do this and also seek independent financial and/or legal advice
THE KIDS are responsible for BOTH debts as far as servicing the loans go. The parents income does not come
A good broker can go through all the pros and cons with you
Hope this helps Lou
Happy to chat anytime
Q: Has anyone used a P2P lender to obtain a personal loan? If so, would love to get your feedback on the process and how the loan compares to other providers
A: Sorry Paul . I only specialise in Home Loans
Q: Other than comparing interest rates, what are things to look for in a home loan?
A: When looking at Home Loan options, there are many things to consider. To name a few ....
- fees on the loan
- additional fees if buying a property
- if Lenders mortgage insurance is applicable ( some Lenders have promotions where they will waive LMI up to 85%)
- variable or fixed options
- loan flexibility
- if offset accounts are available
- professional package deals
As you can see it is important to talk to someone who can steer you in the right direction and show you all the options for YOUR individual circumstances as they are all different
Hope this helps
Q: Can you give me an idea of what you think interest rates will do over the next 12 months or so and do you think is a good time to fix?
A: Hi John
I am not one to comment on the future of interest rates as I am not an economist however the question of whether to fix or not entirely depends on your current and future needs.
I would strongly recommend you speak with your broker ( or me) to determine a suitable course of action
A Broker will consider factors such as , your current family situation, you short term goals, future purchases (eg: car) as all of these things can affect your home loan and future lending needs
They will also run through the pros and cons of fixing.
Hope this helps
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: Hi Nathan
Most Lenders offer a Top Up loan which is simply increasing your current loan providing it is not a Fixed loan. In that case you may need to request a separate loan for the renos.
Two main factors to consider -
- do you have enough equity to borrow more ( this will depend on a new valuation)?
- will your income support the increased debt?
I hope this helps
Happy to chat anytime
Q: If a financial institution calculates interest daily, is it only business days? Is this the same for deposits as loans?
A: Hi Rob, as Nicole stated yes that is correct . interest is calculated every day whether it be a business day or a weekend or a public holiday. There are ways to save interest on a mortgage if you would like some more information on that. Regards Deb
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: Hi Michael
Redraw facilities are easy to use through most Banks . You can usually access via NetBank/ Branch/ATM and phone banking. Sometimes there are charges for redraw at a branch.
alternatively you could look at an offset account in which, through most banks can be your day to day account.
Offset accounts usually offset your home loan at 100% so the same effect as redraw on saving interest and a little easier to access .
Hope this helps
Q: Hi there. Trying to work what makes more financial sense over a longer period ...paying out a higher interest personal loan with withdrawing cash currently sitting on my house mortgage OR leaving the $$ on the mortgage? The interest rate is 12% v 4.95%
A: Hi Renita thank you for your question.
This is a very good question and there maybe a few different answers
As a broker I would want to establish the reasons you would be looking at paying out the personal loan. If it is simply to reduce your outgoing expenses then adding it to your home loan would definitely do this. You would also need to consider the fact that, by doing this, you are using up equity in your home. This needs to be discussed as you may have other things that you want to do in the future that increasing your loan may affect.
If you're simply wanting to save interest over a period of time then adding this loan to your home loan would be of benefit, however you would need to work out what extra payments to make to your newly increased home loan to give you the most benefit. (you would not want to be paying the personal loan portion of over 30 years as he may end up paying more in the Long run.
A good broker will go through your full financial needs, and future needs and wants, to determine the best course of action for you.
I hope this helps and please ask more questions if you need clarification or give me a call.
Q: I have a couple of investment loan and understand the bank has increased the interest rate - can you tell me why?
A: Hi Joseph, congrats on having investment property . Here is a post that I put up back in August - long but informative...
You have probably seen or read in the news recently that the Australian Prudential Regulation Authority (APRA) has issued guidelines resulting in changes to mortgage lending policy.
You may be wondering exactly what the changes mean — and particularly what they mean for you.
Background - Briefly, the Government Regulators including the Reserve Bank have expressed concerns about a potentially overheated property market, especially in Sydney and Melbourne. APRA is looking to take the heat out of the market by slowing the growth of mortgage investment lending.
In its role as regulator of banks and other financial institutions, APRA has issued guidelines designed to do that, as well as ensuring the ongoing strength of Australian banks.
Key changes - APRA has asked banks to cap investment loan growth at 10% p.a. A number of lenders are already at, or even over, this limit, so they are under pressure to significantly reduce their investment lending.
The four major banks and Macquarie Bank are also required to increase the capital they hold against mortgages, which tends to increase the cost of lending. Banks have already passed on some of these costs to customers via higher interest rates.
What does this mean for you? - If you have a home loan that includes principal repayments or you live in your home, you may not be affected. In fact some lenders may even decrease interest rates on that loan.
If you have an investment, or an ‘interest only’ home loan, you may find that your lender increases the interest rate on that loan.
If you are looking at buying an investment property, you are likely to find the lending market more restricted than in the past. This doesn’t mean you won’t be able to find a loan that suits you, just that it may take a little more time. That’s where I can help.
Q: My friend told me you can fix some of your home loan and leave some variable so that you can pay off the principal. Is this true?
A: Hello Lou. Home loans can be split into variable and fixed . The portion that you may choose to fix depends on what you are looking at doing in the next few years. Depending on the type of loan/s you have ( eg investment or owner occupied) you can make interest only payments or principle and interest . I would advise having a chat about your full financial situation before fixing your loan. Happy to chat anytime - Deb
Q: I'm looking at getting some advice around whether i should get a fixed or variable home loan, especially with the decline in real estate of late. Will that effect me?
A: Hi Hamish . The effect of the fluctuations in real estate market really depends on your individual circumstances. For example whether you have an owner occupied property or investment AND how long you intend to keep these. Fixing your home loan has some great benefits however you also need to be aware of the negatives such as being unable to make additional payments etc. sometimes splitting your loan into part fixed and part variable may be the answer. Love to chat if you need more info - Deb