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Q: Hi how can we get ahead of our mortgage . We have one child , I am part time & fiancé is full time ?
A: Hi Rene,
There could be more competitive products out there for you both that could potentially be saving you money every month.
You could make repayments more frequently, have your salaries credited into an offset account. See what other monthly expenses could be minimised and put surplus funds into your mortgage. Get higher paying jobs, etc.
Without knowing your full financial situation or what loan features you have already set up, it will be beneficial to chat to a finance broker and get a review of your current mortgage.
All the best,
Daniel
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Q: I am a Director of a growing small business and have a mutual agreement with my partner to buy him out at the end of this calendar year. It's a reasonably significant amount, so will need to borrow the money. What's the best way to go about this? Can I borrow the money through the business or do I do it personally? Both my personal and business financials are quite sound.
A: Hi Jarrod,
I'm currently helping a small business client do the same and they've opt to borrow in their company with the lender.
Has the company been operating for longer than 24mths? What type of business is it?
Without knowing the full picture it's difficult to give the advise, however you have options to do it in either your business or an individual. Best you speak to finance broker (because not all lenders will do this) and go through in more detail to get the options and then discuss the options with your accountant to get the advise in which way they prefer you do it.
Happy to discuss further if you still need assistance.
All the best,
Daniel
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Q: I am using a how much can I borrow calculator and want to know if I can include commissions and superannuation as income?
A: Hi Seb,
With commissions it will depend on how long you've been consistently earning that part of your income.
Most lenders require you to prove 2 years, however some won't.
Generally with Superannuation no, because its a part of your income that is compulsory and allocated for super. However if you're borrowing in for your SMSF that's a different story.
Best you speak to a finance broker to understand your situation better and best prepare you for an application to avoid disappointment if you go to the wrong lender.
All the best,
Daniel
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Q: My financial institution has been in touch to notify me that the fixed half of my home loan will soon expire (the other half is variable) and that I have the choice of reverting to their variable rate of 5.26% (comparison rate) or extend for a further 36 months @ 4.29% (comparison). They also offer 1 year fixed - 4.34%; 2 yrs - 4.31%; and 5 years - 4.54%. What do you advise?
A: Hi Anthony,
Going to see a finance broker who is accredited to various lenders (not just a few) will be able to present more available options to you. You'll find that your own bank doesn't necessarily have the most competitive offer for you if that is what you're after. This is the #1 reason more borrowers are switching from their banks to brokers.
Before deciding on which rate is best for you, I would suggest deciding which loan is most suited to your short and long term plans. A fixed loan may not be suited if you plan on using your current property for other investments and other purposes. Best to discuss your plans with a finance broker and they will give you the best advice so you don't pay unnecessary fees down the track.
Happy to assist if you required.
All the best,
Daniel Huy
www.loanfusion.com.au
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Q: Have you used a buyer's agent or buyer's advocate to purchase a home? What has the experience been like? Do they offer good value for money?
A: Hi Larry, some of my clients have used them before and had a great experience with them. Buyers agents/advocates suit buyers who are time poor and lack property knowledge. In some case's they're able to negotiate better terms and buying price of the property.
Similar to finance brokers like myself, clients use our services to save time, for our guidance and in most cases to save money.
It probably would be best for you to sit down with a buyers agent/advocate and find out how they can assist you in purchasing a suitable property and go from there.
All the best,
Daniel Huy
www.loanfusion.com.au
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Q: Hi, both my Husband and I are currently employed and earn an a steady combined income. I'm considering leaving work and commencing a start up business and wish to obtain a business loan to add to some savings. What implications do I need to consider?
A: Hi Tahsha,
Great question. One of the biggest implications leaving your job will affect your combined borrowing capacity and serviceability for the loan.
Things lenders will assess.
* type of business?
* track record?
* applicants/directors business experience?
* asset backed?
* and more.
When it comes to business lending it will be case by case and different with different lenders.
Best you speak to a finance specialist to understand your financial position. happy to chat.
All the best,
Daniel
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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,
Most lenders do, however there are lenders out there that will consider applicants who are casual employees. Other factors will come into play such as your overall financial profile. Best you speak to a finance broker to assess your financial profile to see which lender to approach when seeking finance. This will stack things in your favour.
All the best,
Daniel Huy
Bill Vasiliadis
8 years ago
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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,
You can refinance anytime, however depending on your current loan structure, there may be exit fees involved to do so.
Happy to chat further if you require assistance.
All the best,
Daniel Huy
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Q: Is a 10% deposit still required by most banks/lenders for a home loan?
A: Hi Bill,
Yes by some banks, however there are lenders out there require less. The less the deposit generally comes with more fees, charges and higher interest rate.
Again it depends on the lenders criteria such as:
Financial position
Location of property
Purpose
Strategy
LMI provider
Extra funds to complete transaction
Etc.
I would suggest you chat with a finance broker so they can assess your personal situation.
Happy to chat.
All the best,
Daniel Huy
Bill Vasiliadis
8 years ago
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Q: How can I leverage the equity in my home to start a new business and limit risk & cashflow during the startup phase?
A: Hi Daniel,
This would depend on how much equity you have in your property (or properties) vs the costs of setting up your potential business.
Of course when you start up a business there would be a tax conversation to be had with your accountant also. Therefore I suggest you speak to your accountant in regards to how your loans should be best structured (access funds from home or get a business loan) to best suit your tax strategy also. That's very important you know this.
There are a few lenders out there that allow you to maximize the equity in your home for investment purposes such as starting up a business if you need max cash out. Discuss in detail with a finance broker if you want more options.
Hope this was helpful, happy to assist.
All the best,
Daniel Huy
