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About Me

Sam Zammit

Current Rating: 4.87 / 5
Finance Broker
South West Lending Solutions
www.southwestlendingsolutions.com.au
Horningsea Park, New South Wales
0414 727308
Finance professional with 24 years experience in Banking and Finance.

I have access to over 20 lenders from the majors to Credit Unions, Building Societies and other niche lenders.

We can also assist you with the following services:-

- Risk Insurance (Life, TPD, Income Protection Insurance and Trauma)
- Personal Loans
- Equipment Finance (Cars, Boats, Trucks ETC)
- Property
- Default Removal

My Activity

answered
Q: Hi, I started a little business making cakes and sell at the markets and privately through word of mouth. It’s starting to do really well and would like to ask if I should have some sort of insurances in place. The turnover was just over 40k to June 2018 and now doing about $7,000pm. I’d appreciate some help, thank you
A: Hi Sally

Sounds like your little business is getting big! Congrats.

Given that you are dealing with food; it would make sense to obtain insurance to cover yourself in case your customers fall ill when eating your goods.

I refer my clients to an insurance broker by name of Polina Kesov. You can contact her on 1300 002 481. She will know exactly what insurance cover you would need to protect yourself and your business.

Good luck with your new venture!
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Q: I have just put 10% on a home last Friday but I can’t go through with it is there any way I can get out of it?
A: Hi Karen
Which state did you purchase the property? QLD contracts are exchanged subject to finance being approved, so if you are unable to obtain finance you can rescind the contract without any penalty. If you purchased in NSW; do you have a cooling off period? If so, you can rescind the contract whilst in cooling off; however, you will have to forfeit 0.25% of the purchase price. If you rescind the contract after cooling off then, unfortunately, you will lose your full 10% deposit.

Can you please elaborate as to why you cannot proceed? Please feel free to call me on 0414 727 308 for a confidential chat. If you are struggling to obtain finance then maybe I may be able to assist.

Regards

Sam
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Q: Our home loan is with what people tell me is a 2nd tier bank, Suncorp. At a BBQ yesterday people were discussing interest rates and the suggestion was 2nd tier banks have been and are more likely to be increasing their rates more than the majors. Is this correct, I haven’t seen a change in our rate yet?
A: Hi Chrissy

Ahh the good old BBQ experts! The old wives tale that the big 4 are more secure than 2nd tier lenders is not true. Cost of funding drives the decision by a lender to increase or decrease rates. Even the big 4 will (and have) increased rates recently.

If you are concerned about rising rates than you can consider fixing all or part of your loan. All lenders will eventually raise rates; it is just a matter of when.

Regards
Sam
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Q: Buying a commercial property to operate our business and need to borrow 60%. What are the best rates for a 3-5 year interest only term
A: Hi Timmo

A good broker will not quote rates, lender or products without firstly meeting with the client and taking into consideration your financial position. You may not qualify with the lender with the "Best" rates in the market for a number of reasons.
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Q: Hi,

We have bootstrapped our business but need capital to grow. A lot of roadblocks from banks and others for finance so we are thinking of offering a convertible note to raise $70,000. Has anyone got any experience with doing something like this and what do we need to look out for?
A: Hi Jason

I may be able to assist you. Can you please call me on 0414 727 308 or visit our website for a solution:- http://www.southwestlendingsolutions.com.au/unsecured-business-loan/

Regards
Sam Zammit
South West Lending Solutions
answered
Q: We want to buy a property to live $1.4M and have $600k deposit. Problem is we have two defaults on our record, both paid. We used to run our own business but my husband is back working fulltime as an employee and earns $90,000 a year and I work 3 days a week and earn $50,000. We have been told the only loan we can get is through a 2nd tier lender and the rate would be 4.8%. Is there a chance we could get a lower rate, under 4%?
A: Hi Tammy

Can you elaborate on the type of default you have (I.E> Who listed the default)? If you dont want to post it here; then please call me on 0414 727 308 as I may be able to assist you.

Regards
Sam
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Q: Looking for a new home loan and have spoken to Ubank and Loans.com.au. I really don’t want the hassle so can mortgage brokers match their rates…. 3.62%?
A: Hi Sam

Yes you can get lower rates by coming to a Broker and you will get far better service from us as well!

To properly answer your question you would need to speak with a Broker so that they can complete a full Client Needs Analysis with you. We need to look at your total financial position before recommending loan products, lenders or rates.

If you would like me to pop around for a chat then please click on the following link and schedule a date and time for me to come out:- http://www.southwestlendingsolutions.com.au/free-consultation/

Regards
Sam Zammit
South West Lending Solutions
answered
Q: I have a mortgage and when reviewing comparable rates I see many offers considerably below what major banks are offering. What are the risks associated with going with a second-tier or online based home loan? They offer lower rates so why doesn't everyone use them? What happens if they go broke?
A: Hi Philip

There are no risks in using a 2nd tier/ non bank lender. They are governed by the same rules and regulations as the majors so it is highly unlikely that they will go broker. Note that you are borrowing their money; not investing money with them.

Message me or feel free to call me on 0414 727 308 if you want more info.

Regards

Sam
answered
Q: Hi,

My family has just arrived in Australia after I was transferred from England, the same employer.

We are selling our home in London but want to know is there a minimum time we have to be in Australia before we can buy a property and get a home loan? Also what is the minimum deposit we would need?
A: No problems Matthew. Will be more than happy to help out.
answered
Q: Hi,

My family has just arrived in Australia after I was transferred from England, the same employer.

We are selling our home in London but want to know is there a minimum time we have to be in Australia before we can buy a property and get a home loan? Also what is the minimum deposit we would need?
A: Hi Matthew

Welcome Down Under! :-)

You will need to obtain permanent residency in Australia before you can purchase a property to live in. I am also assuming that you are not on probation with your employer?

As for the deposit. If you can contribute 20% of the purchase price + government & legal fees then this will avoid you paying Lenders Mortgage Insurance (LMI), however the minimum deposit required is 5%. Note that when borrowing 95% of the property price that the LMI premium can be a hefty fee to pay. Also note that the LMI premium is only paid once.

Please feel free to contact me on 0414 727 308 if you would like further clarification.

Good luck!

Regards

Sam Zammit
South West Lending Solutions
P: 1800 824 325
M: 0414 727 308
E: sam@southwestlendingsolutions.com.au
answered
Q: My husband and I are looking at income and trauma insurance policy through our business and would like to ask about trauma. Does trauma only include life threatening illness or an injury that stops you from working?
A: Hi Vicky

Good question!

Trauma only covers you for illnesses such as Cancer, Stroke & Heart Attack. There are actually quite a few illnesses that Trauma cover covers; however Cancer, Stroke and Heart Attack are the most claimed illnesses.

Income protection Insurance covers you for injuries that prevent you from working for a prolonged period of time.

You can pay for your Income protection insurance via super if you wish; however Trauma needs to be paid for out of pocket.

Hope this helps! however please feel free to contact me on 0414 727 308 if you require clarification.

Regards

Sam Zammit
South West Lending Solutions
answered
Q: I am looking at an apartment off the plan in Newtown… completion late 2019. It is 50 square metres plus a small balcony and a garage on title. Before I pay the deposit can I ask if it is possible to get a loan on this type of property as an investment?
A: Hi Sam

Agree with Albert here. I will also add that the risk you take purchasing off the plan is that you may struggle to obtain a loan when the time comes to settle on the property. Lenders have changed policies dramatically over the last 6 months; and with the Royal Commission into the banking industry things could get tighter.

you will need to ensure that you have a healthy surplus after taking into consideration your living expenses.

Regards
Sam Zammit
South West Lending Solutions
P: 1800 824 325
M: 0414 727 308
E: sam@southwestlendingsolutions.com.au
W: www.southwestlendingsolutions.com.au
answered
Q: Hi, we are buying a new home at Ambervale, Price $599,000. We are both working and combined income is $130,000 and have no other debts or credit cards… we have a 2 year old at day care and want to borrow $500,000. What is the best rate we could get and does the loan have to be with one of the banks? Thank you
A: Hi Marion

You may not qualify for a loan with the lender with the best (or cheapest) rate for various reasons.

A good broker (Like us :-) ) will sit down with you and firstly look at your whole financial position and your short, medium and long term goals before making a recommendation on which lenders, loan products and rates to offer. We look for lenders who will consider your application and then recommend 2-3 of the cheapest rates from those lenders. These rates may not necessarily be THE cheapest rates in the market; however the lenders recommended are more likely to approve your loan.

There have been a lot of changes in the finance sector over the last 6 months and now is the time to seriously consider using a broker to help you navigate the maze of the hundreds of loan products in the marketplace.

To answer your final question... NO you dont have to go with a bank if you dont want to. We have access to over 25 lenders on our panel (including the majors) to choose from.

South West Lending Solutions are not far from you; so I would be more than happy to meet with you in the comfort of your own home to discuss your options further. You can call me on 0414 727 308 to schedule a date and time suitable to you or you can click on the following link to schedule a date and time:- http://www.southwestlendingsolutions.com.au/free-consultation/

Hope this has answered your questions. Please feel free to call me on the above mentioned number send me an email using the address below.

Regards

Sam Zammit
South West Lending Solutions
P: 1800 824 325
M: 0414 727 308
E: sam@southwestlendingsolutions.com.au
W: www.southwestlendingsolutions.com.au
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Q: Looking to buy a block of land in Nelson Bay and build in 5 years for our retirement. Price $450,000. Can we use SMSF to buy and how much could we borrow? We do want to live in the property when we retire in 10 years?
A: Hi Angie

Short answer is no. SMSF rules are very specific. You are not allowed to live in a property that you purchased via SMSF. Further to this; you are not permitted to purchase vacant land with super either. Basically the property that you purchase via SMSF MUST generate an income.

Regards
Sam
South West Lending Solutions
www.southwestlendingsolutions.com.au/apply-now
answered
Q: Hi, is now a good time to be fixing some of our home loan, current rate is 3.99% variable?
A: Hi Lindsey

If you are worried about rates rising (and they eventually will!) then I do suggest fixing a portion of your loan. You can fix any ratio of your loan that you like; however I usually suggest to my clients that they fix the majority of their loan and leave a portion variable so that you can pay as much as you can on the variable part (some fixed rates have restrictions on how much extra you can pay on your home loan without penalty)

I have access to 3 year fixed rates starting from 3.74%

Regards
Sam Zammit
South West Lending Solutions
1800 824 325 | 0414 727 308
www.southwestlendingsolutions.com.au/apply-now
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Q: Can someone explain the difference between an offset account and redraw. Is an offset account really that important for the loan we have on the property we live in?
A: Hi Kay

Good question!

Redraw is where you can withdraw the extra loan repayments that you make above the minimum repayment amount set by your lender directly from your home loan. This is usually done via internet banking. Depending on your lender; you may have restrictions on the minimum amount you can redraw from your loan as well as the frequency that you can redraw each month.

An offset account is basically a transaction account linked to your home loan. The balance of the offset account reduces the interest charged on your home loan. For E.G. If you have a $100,000.00 home loan and have $2,000.00 in your offset account then you only pay interest on $98,000.00. Funds in the offset account are linked to a debit card and can be used just like a normal savings account.

Hope that helps!

Regards
Sam Zammit
South West Lending Solutions
1800 824 325 | 0414 727 308
www.southwestlendingsolutions.com.au/apply-now
answered
Q: We have had our home loan with Pepper for 2 years after having a small credit issue. The rate is 5.2% and we would like to know if we have options to refinance. Is 2 years long enough?
A: Hi Jerry

It all depends on the nature of the default, if it has been paid and the amount. Preferably the default should have been removed from your credit file; either by a reputable Credit Repair company or by naturally dropping off your file after 5 years have elapsed.

Happy to discuss with you if required. You can contact me on 0414 727 308 to arrange a credit check.

Regards
Sam Zammit
South West Lending Solutions
answered
Q: We have come into some money from a family inheritance. If we pay $100,000 on our home loan will it automatically reduce our monthly repayments?
A: Hi Irene

If you place the $100k into your home loan; your balance will obviously reduce; however these funds will be placed into redraw, meaning that you can redraw these funds back out if you wish to.

You will need to do two things to reduce your loan repayments:-

1. ask your lender to cancel the amount in redraw (I.E. the $100k)
2. ask your lender to recalculate your repayments based on your reduced balance over the remaining term of your loan. This will then reduce your loan repayments accordingly.

I do recommend however that you maintain your current level of repayments for as long as you can as this will allow you to pay off your loan much quicker than if you just pay the minimum repayments.

You should also look at if your current lender/ loan product/ rate are suitable for you. We can assist you with this if required.

Regards
Sam Zammit
South West Lending Solutions
1800 824 325
0414 727 308
sam@southwestlendingsolutions.com.au
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Q: I’m looking at buying an investment property at Newtown $700k… instead of putting it with an agent I want to put it on Airbnb. Can I still borrow 90% and will lenders consider the rental forecasts, thanks?
A: Hi Jason

Yes you can still borrow up to 90% inclusive of LMI premium, however the lender and the mortgage insurer will only take normal market rent into consideration to demonstrate serviceability. The lenders valuation report will show a rental estimate and this will be used as pat of your income. Note that lenders only take 80% of rental income into servicing.

In relation to renting your property on AirBnB; you need to be sure that you are able to rent out your property on an ongoing basis; especially if you are reliant on the rental income to service the loan.

Please feel free to contact me on 0414 727 308 or 1800 824 325 if you want to discuss further as we can also assist you with the finance side of things.

Regards
Sam Zammit
South West Lending Solutions
answered
Q: Hi,

I’m a first home buyer and looking to buy a property around $650k. I have $300K in saving and will need to borrow about $400K. I have run my own business for 3 years and wanting to split the loan 50% variable and 50% fixed for 3 years. What are the best rates available?
A: Hi Lisa

The lender with the lowest rate may not be the best lender for your specific needs/ wants. Every lender has different policies and processes. Simply speaking you may not necessarily qualify for a loan with the lender with the lowest rate.

A good mortgage broker will sit down with you and look at your whole financial position and then search for lenders/ loan products where you will qualify for a loan and then recommend the lender with the lowest rate based on those lenders who will consider approving your loan. They should also be able to explain why they recommended a particular lender/ loan product.

I would be more than happy to spend some time with you to discuss your situation and provide the appropriate recommendations.

Regards

Sam Zammit
South West Lending Solutions
1800 824 325
0414 727 308
sam@southwestlendingsolutions.com.au
answered
Q: Hi,

I have a question about my home loan as the interest only period expires in early May. I want to keep it interest only but the bank has said no and it will be principal and interest. There is no problem making the repayments but I would just prefer interest only. Is refinancing my only option?

Regards
Zac
A: Hi Zac

As Albert has advised above; lenders are clamping down on interest only loans; especially if the property is your principle place of residence.

Based on what you have said; your only option to continue with interest only would be to refinance; however please note that you are going struggle finding a lender who is going to approve a loan on an interest only basis without a valid reason why you are looking to keep your loan interest only.

In summary there is really no clear benefit paying interest only on your loan as you are not reducing your balance owed. This creates a risk for you as you are potentially placing yourself in a risky situation if rates rise.

I am more than happy to discuss this in more detail if you wish. You can contact me on 0414 727 308.

Regards

Sam
South West Lending Solutions
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Q: Our home loan has been fixed for 3 years as we wanted certainty in the repayments and haven’t paid off much off the principal.

We want to pay more now but have been offered 3.89% for 3 years. Should we fix again or have a variable rate so we can pay more?
A: Hi Isabel

Some lenders allow you to pay extra on a fixed rate loan. There are even some that allow 100% offset on a fixed rate.

I have a lender that will allow extra repayments and the ability to attach an offset account as well! Call me on 0414 727 308 to see if you qualify.

Regards
Sam
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Q: Hi..my new partner and I have discussed getting married and we have 5 kids between us. Our previous partners have already remarried and one has a new baby. Is it possible to set up life or disability insurance where only my new partner and I or the kids can access the funds should anything happen?
A: Hi Jill

Good question!

Basically there is a form called a binding nomination form which sets out who the beneficiary(ies) will be in the event of your death. The binding nomination form is usually only required for the death benefit (I.E. Life Insurance) as TPD is paid whilst you are still alive. You can nominate whoever you like as beneficiary and you can also nominate a certain percentage to each beneficiary.

If you already have insurance in place; you would simply need to contact your insurer and ask them for a binding nomination form. If you do not have insurance in place then this form is completed as part of your application for insurance.

I would also recommend that you seek the advices of a solicitor and ensure that you have an updated will.

Please feel free to contact me on 0414 727 308 if you require assistance with insurance cover. I can also point you in the right direction with a suitable solicitor if you do not have one to assist you with your will(s)

Good luck with the wedding!

Regards

Sam Zammit
South West Lending Solutions
1800 824 325
0414 727 308
www.southwestlendingsolutions.com.au
sam@southwestlendingsolutions.com.au
answered
Q: I am thinking of buying my first investment property. Would you recommend a negative gearing strategy and have the loan interest only or should I go principal and interest and look to create more equity?
A: Hi Margot

Without giving tax advice; you can technically pay principle and interest and still have a property negatively geared. It all comes down to the cost to run/ maintain the property compared to the rent received. Your biggest expense is the interest paid.

In relation to if you should go Principle & Interest or Interest Only... Paying down the principle will prepare you for any potential rate rises in the future. If you opt for interest only then your principle does not change for the interest only period. If rates rise during this time then you may be placed into a situation where you can no longer afford the loan.

Best to get the advice of an accountant or financial planner in relation to the structure of your loan.

I will be more than happy to assist you with finding the right home loan for your needs.

Regards
Sam Zammit
South West Lending Solutions
1800 824 325 or 0414 727 308
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Q: We have a small loan, 150k on our home probably value about 900k and an investment loan for 460k and value of property 600k. We spoke to a broker about refinancing and they suggested combining the two loans into one loan over our home and leaving the investment property with no debt. Is that a good idea?
A: Hi John

The short answer is "NO IT IS NOT" Where possible, you should keep investment debt attached to the investment property and vice versa.

I always suggest splitting up your loans in this way and preferably with two different lenders so that each lender cannot touch the other property. The process is not complicated for you as we do all of the hard work. Having said that; we can keep both loans with the same lender if you like, however I would definitely keep both loans separate.

I am not far from Revesby and would be happy to come around for a chat.

You can call me on 0414 727 308 or schedule a meeting with me by clicking on the following link:- http://www.southwestlendingsolutions.com.au/free-consultation/

Regards
Sam Zammit
South West Lending Solutions
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Q: Home Loan is 590k and our home is around 900k. I called our lender and they dropped our rate from 4.34% to 4.04% this week. Is that enough, could they do better or should I look to refinance?
A: Hi Ian

Great work negotiating the rate reduction. You can do better than that by refinancing to a different lender.

Happy to assist you with this if you like!

Feel free to contact me on 1800 824 325 or 0414 727 308 to book in a date and time for me to come to you and discuss your options.

Regards

Sam Zammit
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Q: I have stable employment and earn $220,000 a year. Unfortunately, I made a poor decision to get involved in one of those investment schemes where you get tax deductions up front.

The tax department has since closed down this scheme and I now have to pay $180,000 to the ATO. I have 2 properties but there isn’t enough equity to refinance and pay the ATO.
I don’t want to declare myself bankrupt and would like to know what other options are available?
A: Hi Marcus

Sorry to hear you are in trouble with the ATO.

What is the estimated total value of your properties and current debt owed on these properties?

Bankruptcy should be your absolute last option to take. Have you spoken to the ATO and asked if you can go on a payment arrangement? This may be a better option if you lack equity in your properties. Further to this; you may be able to negotiate a lower payout to the ATO if they know you are looking to pay in one lump sum. This may bring your debt down low enough to borrow against your properties.

Feel free to contact me on 1800 824 325 (Option 1) to chat further to see if I can assist further.

Regards

Sam
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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

Sorry to hear that you are separating with your partner.

Yes this is possible to increase the loan to $1m. you can rent out a room if you like but this cannot be used in the serviceability assessment.

Happy to chat with you more about this if you like..

Sam Zammit
South West Lending Solutions
1800 824 325 (Press Option 1 to speak with me)
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Q: Can I ask what the best 3-year fixed rate is for the property I live in and can I pay extra into the loan when by bonus comes through?
A: Hi Theo

Thanks for your inquiry. The best rate would be based on your individual circumstances. it is pointless quoting a rate until we fully understand your financial position.

We are not that far from you; so would be more than happy to meet up with you to discuss further. Please feel free to book in a date and time that is suitable to you by clicking on the following link:-

http://www.southwestlendingsolutions.com.au/free-consultation/

Regards

Sam Zammit
South West Lending Solutions
1800 824 325
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Q: We’d like to ask about the costs associated in transferring the title of our family home from joint names to one? Do we have to tell our lender and does it mean we have to refinance, thank you?
A: Hi Ingrid

Your lender will need to be notified as they hold the title. As for refinancing your loan; the lender will need to do a variation to the contract which may result an a new loan assessment being undertaken.

If you have had your loan for a while; you might want to use this time to look at your options and see if there is a cheaper rate for you.

Regards

Sam
South West Lending Solutions
1800 824 325
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Q: If I purchased an investment property as my first home can I still get the first home buyers grant?
A: Hi Jade

If you can afford to service the loan then it would be a good idea to consider purchasing in the short term. Whilst there is talk of a downturn in property values; this may only be short lived.

Fell free to call me on 1800 824 325 if you want to chat further.

Regards

Sam
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Q: If I purchased an investment property as my first home can I still get the first home buyers grant?
A: Hi Jade

Short answer is no. Please also note that that the grant is only paid to those building or purchasing a new property that has never been lived in before.
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Q: Hi, We are with NAB and reasonably happy with their service but the interest rate on our loan is 4.39%. The loan is $560k and the value of the property is around $800k. Can we get a better rate and how much would it save us?
A: Hi Toni

Yes you most certainly can get a lower rate; the margin will depend from lender to lender. You can approach NAB and ask them to reduce your rate and see what they come back with. You can then see if there is a better rate out there for you.

I have rates (like most brokers) in the 3 percentile range. The question is; is this lender/ product the right one for you.

In summary; approach NAB and ask them if they can reduce your rate. Feel free to contact me to see if I can do any better.

All the best.
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Q: I am looking to start a small business and do my own accounting. If I receive an APPROVAL for an overdraft, but don't need it yet, does that APPROVAL need t be recorded in the books or only when it is activated?
A: Hi Frank..

I am not an accountant so cannot give you any advice in relation to this. However given the question you have raised; I would strongly suggest that you engage the services of a qualified accountant who can advise you what you can or cannot claim/ record. A good accountant is worth their weight in gold!
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Q: We are thinking of purchasing a property with cabins to rent out nightly. We will live in the main property. Will the mortgage interest be tax deductible as we are running a rental business?
A: Hi Wesley

Sounds like the main reason why you are buying this property would be for investment purposes. If this is the predominant use; then your loan will need to be set up as an investment loan. In relation to claiming the interest as a tax deduction; you will need to speak to your accountant about this (I am a Mortgage Broker only so cannot provide any tax advice)

The other thing to consider from a lending perspective is if a lender will deem the property as suitable security. Can you provide a link from Real Estate. com or similar so that we can take a look at the type of property?

If you want more information; please contact me on 1800 824 325 (Option 1)
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Q: We’re looking to use a buyer’s agent and would like to get some advice around their fees. What’s considered a reasonable range for commission and is it normal to have to pay a fee upfront?
A:

https://s3-ap-southeast-2.amazonaws.com/sai-answer/answers/5924d6597e85f.m4a
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Q: Hi there, I am wondering where I would go if I was in need of a $3,000 loan I am a single mother of my 3 year old daughter, I have a Job 3-4 days a week & i receive benefits as well. I have bad credit rating from when i was young & stupid. Anyone ?
A: Hi Claire

I have left a couple of messages for you to return my call (voice mail and email) can you please call me so that I can assist you?

Regards

Sam
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Q: Hi there, I am wondering where I would go if I was in need of a $3,000 loan I am a single mother of my 3 year old daughter, I have a Job 3-4 days a week & i receive benefits as well. I have bad credit rating from when i was young & stupid. Anyone ?
A: Hi Claire

You may find that the website has blocked part of the email address. if my phone number is visible then please call me on this number on Monday; otherwise click on the "Contact Expert" link below my response so that I can contact you.

Regards

Sam
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Q: Hi there, I am wondering where I would go if I was in need of a $3,000 loan I am a single mother of my 3 year old daughter, I have a Job 3-4 days a week & i receive benefits as well. I have bad credit rating from when i was young & stupid. Anyone ?
A: Sure do! sam@swls.net.au
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Q: Hi there, I am wondering where I would go if I was in need of a $3,000 loan I am a single mother of my 3 year old daughter, I have a Job 3-4 days a week & i receive benefits as well. I have bad credit rating from when i was young & stupid. Anyone ?
A: Hi Claire

I would need more information about your bad credit rating such as who lodged the default, the amount and when it was lodged.

Please feel free to call me on 1800 824 325 for a confidential chat.

Sam
South West Lending Solutions
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Q: Do all lenders for a home loan require that your deposit be made up of savings or can it be part or full cash?
A: Hi Bill

If you are borrowing less than 80% of the property value then savings are not required. Of course you need to have to demonstrate that you have sufficient funds in your bank account to complete the purchase (20% deposit plus legals)

If you are borrowing more than 80%; you will need to show that you have saved a minimum of 5% of the property value over 3 or 6 months.

Hope this answers your question.
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Q: We are investigating franchising our business and want to get some advice on which banks are more proactive in lending to franchises?
A: Hi Lisa

There are a few Lenders who lend to businesses that are looking to franchise. Best thing to do is to contact me on 0414 727 308 to chat more about your business.
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Q: Should I go for a fixed or variable interest rate on my homeloan?
A: Hi Pru

This is an extension of your previous question regarding the best product for you.

Please feel free to contact me if I can assist you in any way.
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Q: How do I pick the best homeloan for me? What do I need to be looking out for?
A: Hi Pru

My suggestion is to make an appointment to see a mortgage broker. One of the tasks we perform is matching home loan features and benefits to your needs. What could take you literally weeks if not months to research Will take a mortgage broker minutes to prepare A comprehensive report of suitable loan products.

A good mortgage broker will consider your short, medium and long-term goals in their analysis. Remember the cheapest interest rate may not be the best one product for you.

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Q: I was going to buy an investment apartment off the plan but my bank will only let me borrow 80%. Is there a way in which I could borrow 90%?
A: Hi Alison

Thought I would check in with you to see how you have progressed with finding a lender that will Lend you 90%?

Regards
Sam
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Q: We are looking to buy a new home to live - can you provide some advice as to how we should go about it as we will need to sell our existing home - should we sell before we buy?
A: Hi Matt

There are a couple of ways you can tackle this. Ideally a simultaneous purchase and sale would be the way to go, however there may be times when the sale of your property may go through before you settle on the property that you have purchased; likewise the property you have purchased may settle before you sell your property.

There are methods you can use in the event that you cannot achieve a simultaneous purchase and sale.

Bridging loans (or go between loans) can be of assistance if you happen to settle on your purchase before you sell your house. If the reverse happens you can make it conditional that settlement on the sale of your property be delayed to coincide with your purchase or negotiate with the purchaser to rent back your house until you can settle on the property you are purchasing.

Hope this helps.

Good luck with your house hunting.
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Q: Is there an ideal time to refinance a home loan?
A: Hi Justin

If you have had your current loan for 2 or more years; it would be a good idea to look at what the current rates are. Get in touch with your broker (if you used one) to review the options available to you. If you didn't use a broker; feel free to contact me on 0414 727 308 for a chat.
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Q: Is the Sydney housing market likely to plateau or decline in value?
A: Hi Stewart

I am not a real estate agent however in my opinion the market is more than likely going through a correction. The last 6 or so months were a sellers market in Sydney where demand was high and supply was low. We are now seeing the reverse happening.

In some respects; those who bought property last year MAY experience a price reduction and this is probably because they may have paid too much for their property.
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Q: We have recently had some bad luck and have ended up falling behind in our mortgage. I've tried talking to our bank, but they don't seem very interested in coming to the party on some type of plan. Will I be able to re finance and consolidate other debts?
A: Hi Michelle
So sorry to hear that you are experiencing difficulty. Your lender is obliged under hardship laws to assist you where they can.

It is hard to give you advice when I do not know your full financial position however there are lenders out there that are able to assist you. I have had great success in the past in doing this for my other clients and would be more than happy to help you.

Please call me on 0414 727 308 to book in a time that is suitable for you.
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Q: I was going to buy an investment apartment off the plan but my bank will only let me borrow 80%. Is there a way in which I could borrow 90%?
A: Hi Alison

Researching the developer is a good start; however you need to do some research on the area you are looking at buying in as well. As I mentioned in my last post; over supply can effect the market value. Note that lenders will take the lower of the contract price or the valuation. If the valuation comes in lower then this is what the lenders will base how much they can lend against the property. If you are looking at borrowing 90% then this does not leave you much room to play with if the valuation falls short of the purchase price.

I have access to a couple of property research companies that take the guess work out of buying a property. They deal with trusted developers and complete a full analysis of the development, the area, rental returns, property value at completion ETC. This service is free to you as the research company receives a commission from the developer for the sale of the property. They are like a real estate agent but in reverse; in that they are working for you and not the vendor.

If you want to know more; please feel free to call me on 0414 727 308 or shoot me an email to:- sam@southwestlendingsolutions.com.au
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Q: The markets are a bit bumpy at the moment – should I be looking to changing my loan to a fixed rate?
A: Hi John

Fixing your loan provides some comfort around potential rate rises. One thing you need to note is that once you lock into a fixed rate; you typically cannot pay out the loan before the fixed rate term expires without incurring a penalty. Just like rates can rise; they MAY possibly fall a little further as well. If you are looking at fixing; you may want to consider fixing a portion of your loan and leaving the other portion at a variable rate. If things start turning ugly and rates rise; you can then look at fixing the variable portion as well (note that fixed rates may be higher at this point in time)

The other thing to consider is that most fixed rates have restrictions on paying extra repayments without penalising you. Further to this if you currently have an offset account on your loan and redraw then this combination of features is not typically available with fixed rate loans. Having said that; I do have access to a lender that allows you to pay unlimited extra repayments without penalty and also includes a 100% offset account and the ability to redraw as well.

Please feel free to contact me if you need more information.
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Q: I was going to buy an investment apartment off the plan but my bank will only let me borrow 80%. Is there a way in which I could borrow 90%?
A: Hi Alison

As you have found; quite a few lenders had reduced the Loan To Valuation Ratio to 80% in the last quarter of 2015. This restriction was put in place to curb the rise in investment lending. Since then; most lenders have relaxed their policies and are now lending 90% of the property value again. Please note that this may be inclusive of the Lenders Mortgage insurance (this will vary from lender to lender)

As a side note; the pitfall of buying off the plan is that property values MAY fall by the time the unit is completed rather than rise. There has been some evidence of this in the past and price fluctuations are based on supply and demand. There is a concern that some suburbs are potentially over developed with unit complexes and as these complexes reach completion (along with others in the area); the market becomes flooded and this can drive prices down. Oversupply could also effect the rental return and vacancy rate as well. Make sure you do a little homework before you look at investing in an off the plan property; especially a unit to ensure that there are no other complexes due for completion simultaneously with complex that you are investing in.
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Q: I've been told I can use a deposit bond instead of cashing in some investments to buy a property, is that possible?
A: Hi Alison

A deposit Bond is a form of guarantee to the vendor. The bond is used to exchange contracts in lieu of you handing over a cheque for your 10% deposit.

You will still need to eventually pay the 10% deposit either before or at settlement.

Please feel free to contact me if you would like further information.
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Q: Do home loan lenders look more favourably at applicants with permanent roles over casual roles despite the income?
A: Hi Bill

The lenders primary concern (and obligation to is customers) is to ensure that you are able to service the loan amount requested without placing you into financial difficulty.

Casual income usually is irregular by nature therefore the lender will look for the following:-

- How long you have been in the role for
- Was your previous position in a similar field
- The year to date income on your payslip

The minimum period of time you would need to be in your current casual position is 3 months (and be out of probation) for the Lender to determine your level of income. There are a few lenders who will accept 3 months history however the majority want to see 12 months.

A Mortgage Broker has access to many Lenders and will be able to tailor a loan product that suits your needs.

Hope this helps.
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Q: If I'm buying my first property do I still have to pay mortgage insurance if I have less than 20% deposit?
A: Hi Jacob

Some lenders will lend up to 85% without having to pay mortgage insurance. Some will lend up to 90% depending on your occupation.

However traditionally most lenders will require mortgage insurance if you borrow more than 80% of the property value.
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Q: How can I look at a broad range of home loans to work out which is best for me? I really want to compare more than just the interest rate ?
A: Hello Rob

The best way to do this is to engage the services of a Broker. As a qualified Broker; I have access to over 20 lenders with a wide variety of rates and features & benefits.

Please feel free to contact me on 0414 727 308 if need assistance.