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About Me

John J Maxwell

Current Rating: 4.88 / 5
Non Bank Lender
Cocalex Holistic Consulting
https://m.facebook.com/theofficialJohnMaxwell/
Alexandria, New South Wales
0434544225
With over 26 years experience as an entrepreneur and 17 years as a Mortgage Broker, John has proven his position as a top client centric broker, finance coach and educator.

John has been appointed NSW & ACT Partnership Manager for Victorian Mortgage Group (VMG).
Contact John on M: 0439 730 557 or E: john.maxwell@vicgroup.com.au

John is also the founder of Cocalex Holistic Mortgage and Finance Consulting, focusing on Industry article writing (ghost writing), videos & video editing, and consulting services within the allied professional services sector.

My Activity

video
Content is King - John J Maxwell

blog post
Arrogance in the Financial Services industry is no longer acceptable.
Do you remember the time when, as a financial services professional, one needed to show their strength and determination by way of dominance and overbearing character traits?
It sounds like something ...
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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,

As you've heard the answers from others, I won't reiterate the same sentiments.

However, there is a strategy you can employ if you have personal + investment debt. It's called Debt Recycling. This advanced strategy allows you to eliminate your 'bad debt' personal debt quicker whilst maximizing your tax deductibility on your investment property debt.

There are also such loans available, called 'Investor Combo's'. This is where an average Nett rate is set which produces a much lower rate on your personal debt 'Home Loan' and a higher investment property rate to cause the average rate.

Hope this helps...
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Q: What credit card is the best to earn Qantas frequent flyer points?
A: Hi Fiona,

I just went through this expertise myself a month ago.

Unfortunately, there’s no one answer. However, I can give a few tips and suggestions to help.

You’ll need to determine what your monthly spend is going to be. There are lots of deals around for Bonus Qantas points on signup (based on your first three months spend).

Because my spend was going to be well over $1,000 per month, I signed up for Qantas American Express Ultimate Card. This card gives you $100,000 bonus points if you spend over $3,000 within the first three months. I did that easily within the first month lol. There is a $450 annual fee which you immediately get back in Qantas Flights Vouchers each year plus there are a heap of other benefits and bonuses. Unless you’re spending enough on this card, it may not be the one for you.

You’ll also need to take a look at your regular spending habits. Not everywhere you will shop and spend will accept Amex, so it would be a good idea to suss this out to avoid being disappointed if you can’t use your Amex at a lot of your favourite and regular shopping haunts. If so, you might be best to look at a suitable VISA or MasterCard offer.

If you google something like... ‘What is the best Qantas Credit Card?’ You’ll find plenty of options to search and compare. I recall there also being a link in the Qantas website to search and compare (side-by-side) a range of different cards so you can review the costs, bonuses, benefits and features.

I hope this helps...

Good luck on your search and please feel free to ask me any questions if you’d like. 😊
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Q: Hi,
My business partner and I have had a printing business for 9 years…. We both now want different things and I have agreed to buy him out within the next 6 months. Are there finance options to help me buy his shares?
A: Hi Raj,

VMG are a specialist lender who work with Small Business owners. Do you have residential property with equity to offer as security?
How much are you seeking to finance?
Happy to have a further chat.

John
video
Mortgage Broker offer

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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,

I’m the NSW Partnership Manager / BDM for VMG.

Depending on your circumstances, VMG can offer Interest Only loans currently. Any Mortgage Broker can speak to me about this and obtain quick & direct accreditation with us.

I hope this helps. Feel free to reach out of your have any questions.

John
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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,

Based on the above details provided, in theory it looks possible. Your affordability seems fine, you won’t be able to use ‘boarding’ income from your PPR as income but that shouldn’t matter. More detail would be required of your income type to be able to give more confidence. By keeping the loan at 70% or less, you can access premium interest rates well below 4% in many instances.

John J Maxwell
Cocalex Mortgage & Finance Consulting
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Q: I’d like to ask a question about property investment in NSW. I live in Sydney but would like to explore areas where there might be some significant growth opportunities in the next 5-10 years?
A: Hi Adam, As Sydney prices continue to rocket out of reach to most households, more and more investors are looking to growth areas such as the Central Coast. I’ve recently been speaking to some builders in that area who are inundated with demand due to the affordable prices.

Because if the money being spent on transport and infrastructure, many are making the move to live on the Central Coast for lifestyle & commute by train to work in the City - which is the same time as travelling from Sydney’s outer suburbs by car.

There are also opportunities for ‘dual key’ dual
Income properties with great rental return.
video
The future of finance is being built now but brokers won't have access to it!

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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,

That’s a great question that many home owners wish to understand. The short answer is YES - there is definitely that much difference on owner occupied P+I rates at one end ( usually well
Under 4% ) then a higher rate for owner occupied Interest only loans & often many lenders won’t even provide these loans anymore at all. When we move into investment property loans, you can definitely get lower rates on P+I compared to Interest only.

The reason is because APRA have placed ‘speed limits’ on banks (ADI’s) in regards to the amount of new loans which are interest only. This can only be as much as 30% of total new residential mortgages within their portfolio for loans above 80% LVR.

There is also a restriction of investment property loans to remain below a previously set benchmark of 10% growth.

So there are total restrictions on lending for investment purposes + also separate restrictions on interest only loans. Banks who have exceeded or are dangerously close to these figures will decline or turn away your loan completely. The appetite of each lender can change from quarter to quarter currently.

Just remember that in many instances, interest only loans hold far more risk of the loan not being reduced or even paid back in full. This is seen as a high risk to banks and especially APRA.
In regards to investor strategy, interest only loans are mostly used to allow the principal reduction amount of the investment property to be paid off the owner occupied ( non deductible ) amount first, therefore maximising the proposed tax benefit allowable. If you don’t have any owner occupied debt left, then a P&I loan on the investment property is highly appropriate.

Principle and interest loan repayments however will often be higher in proportion however if your mortgage broker ( or bank ) can obtain a low enough rate, this can work out to be very similar repayments.

Hope this helps, feel free to ask any questions.
video
6 Ways To Add Value To Your Business

video
Arrogance in the industry is no longer tolerated

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Q: Is it possible to guarantee one of kids home loan without having to be on the loan or the property?
A: Hi Andrew, yes it is possible to be a guarantor for your child. Your child (and their partner if relevant) would be the borrowers. You would be a Mortgagee, offering your property as additional security. Some lenders will offer a ‘limited guarantee’ say, up to 20% so that your whole property and equity is not at risk.
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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: Hi Kym,

Any advice given must be researched well and relevant to your specific situation and circumstances.

However, there are a few things to know. You will need to speak to your accountant as well.
As your current loan is for the purpose of your owner occupied home, it can’t be simply treated as investment Debt now.

You will need to refinance and restructure you loan accordingly for any debt which will be investment debt and any debt which is purely personal debt.

APRA is discouraging interest only loans, this is why the interest rates for these loans are higher. It’s also higher again for investment loans.
You may we’ll be best to keep the loan as P+I depending on the amount, time left. Repayments etc and your income position.

There’s more than meets they eye on these types of changes hence why you should speak to a good accountant and Mortgage expert. You should also review your short term goals and objectives as well.

Also bear in mind, a small interest rate change won’t make much difference in the repayments compared with switching to interest only. Either way, the goal should remain to pay your Mortgage down ASAP - especially any bad debt.

Speak to an accountant about if negative gearing will benefit you or not - specific to your income position and relative to property title ownership.
video
Have You Created a Marketing Content Strategy for 2018?

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Q: We have a loan of $420,000 and want to borrow about $50,000 to pay off credit cards and do some repairs around the house… house worth $800,000. The loan is with Westpac, rate 4.19% and we would like some advice on what the best rates would be if we fixed 50% of the loan for 3 years?
A: Hi Marcus,

Fixing 3 Year’s is a good strategy to give you peace-of-mind and still leave a good portion of your Mortgage variable to engage debt reduction strategy. We can get as low as 3.65% on variable and about 3.96% 3yrs fixed. Make sure you understand the comparison rates, limitations, fees and charges and learn good strategy to get the most out of your loan structures.

John J Maxwell
Mortgage & Finance Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434.544.225
video
Top 10 Mortgage Hacks for Financial Success in 2018

blog post
Top 10 Mortgage Hacks for Financial Success in 2018
With a financial services career spanning more than 16 years and over 25 years of business and entrepreneurial experience, I've discovered it's NOT knowledge that most of us struggle with. Myself incl ...
video
The difference between Good Debt vs Bad Debt. Know the difference!

blog post
Is Debt Recycling the right strategy for you?

Ever wondered how some people tend to build wealth and property whilst you continue to battle the bills and life's challenges, never really reaching the position where you can buy an investment prop ...
blog post
Understanding the difference between Good Debt and Bad Debt is crucial to your success

If you’re a homeowner, a first-time Property investor or about buy your first home or investment property, developing a sound understanding about the difference between Good Debt vs Bad De ...
blog post
Unravelling the Interest Only Loan confusion
If you’ve been following the headlines or reading finance articles over the last 12 months, you would have heard a great deal of talk about investment debt and interest-only mortgages.
Stat ...
video
Should your Mortgage Interest Rate Start with a 3?

blog post
Should my Mortgage Interest Rate begin with a 3?
Amidst a period of record-low interest rates, many proactive and savvy mortgage brokers have been using one variation or another, involving the pertinent question:‘Does your interest rate be ...
blog post
Sydney housing prices peak. Where to from here?
Recent corelogic results revealed that for the first time in a long time, property prices have flatlined in Sydney and produced zero growth for the month of August. This suggests that the boom-time ga ...
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Q: Looking to build a new home, and want to know if we pay stamp duty only on the land or the total of the house and land package?
A: Hi Anna, one of the attractions to house and land packages is the stamp duty savings because you only pay stamp duty on the land as the house hasn’t yet been built. However it will depend on the actual contract and how it’s executed. It may be calculated on the whole purchase. Check with your conveyancer.
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Q: We would like to extend the interest-only period on our home loan but our lender is now saying due to recent changes to the way they calculate how much we can borrow they won’t approve the extension.
The loan is $650,000 and the property would be valued at $800,000. Do all lenders use the same calculation process and will that stop us from refinancing?
A: Hi Katherine, further to the previous comments, depending on your debt reduction or cashflow preservation goals, you might also look into a split loan option - and get the best of both worlds. This can both preserve cashflow, continue paying down any bad debt as well as suitably position your borrowing capacity. Specific advice of course requires more details.
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Q: I want to know that I will be eligible to get home loan for the property that will be around 670K in sale price. My annual income is around $63,000 before tax, single income, no dependent and credit card limit is $6000. This will be my first purchasing in property. I can get about $100,000 include all the fees and deposit for the property. Am I eligible to burrow rest from the bank? Is this good idea to buy a home in Sydney with $100,000 that I have? Thanks
A: Hi Julia, there are many various able to consider in gathering suitable details about your situation. It appears you are purchasing for $670k with a 10% deposit ($67k) plus cost which roughly equates to $100k. This leaves a Mortgage of more or less, $600k. On the raw data provided, it appears that this might not be possible to meet servicing (affordability) calculations required for a $600k loan on your income. However, I don’t know enough about other options which may be considered depending on your situation and resources available. Further details and an in depth conversation would be required.
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Q: I purchased a unit off the plan in in Newcastle for $550,000 last year. The property is due to be completed in February 2018 and the local agents have suggested the property has increased by 10% during construction. I used a deposit bond to secure the property and the finance was approved at 90%. As the property has increased to around $600,000 can I borrow 90% which would almost be the original purchase price? Is this possible?
A: Hi Mitchell, yes, there are some lenders who will value the purchase ‘as at now’ but usually only if it has been more than 12 months since the contract was signed. Valuation will be done at completion. I can look into specific lenders if required.
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Q: Hi, I am in the process of purchasing an investment property. Once purchased my partner and I plan to move into a rental property. We are thinking of signing a legal financial agreement to protect each other's assets before we move in together. What stage is the earliest this can be done? Can it be done before I actually own the property?

Thanks.
A: Hi Robson,

You should consult an accountant (for asset protection structure advice) & financial planner as well as a lawyer. The best place to start is with your personal wills. This should be updated every time your asset position changes. You can also speak to a lawyer about an additional agreement (somewhat like a pre nuptial agreement). However, there may be some limitations for assets not yet purchased. It’s worth speaking to an accountant about structures before you purchase the property.
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Q: I’d like to ask if there a limit to the number of units on the one title lenders will look at? If it was 10 units would it be considered a residential or commercial loan? Thank you
A: Hi Charles, further to the previous answers, if the property is deemed commercial for lending purposes be aware of the maximum term of the loan as this could push up your minimum repayments. Some will do 25 year terms such as Adelaide Bank. There are also several competitive second tier lenders hungry for the business. Although the rates may be similar, the term available may vary. Lending will usually be between 60 - 80% but speak to a specialist Mortgage broker to investigate specific lenders, terms and conditions.
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Q: I have been a contracting engineer for the past 10 years and with the one group until recently. My average annual income is $190,000. In early September I signed a 12 month contract with a new group with the opportunity to increase my income. My wife and I would like to look at refinancing, will this change have an impact? We have a loan of $675,000 and the rate is 4.3%?
A: Hi Shaun, you should be ok provided the occupation and type of work is consistent and assuming you will not have a gap between contracts of more than 30 days. Lenders like to see continuity of work. Keep an eye on the 20% rule on year to year changes as Ken mentioned. I would also recommend having a mortgage broker case their eyes over the new contract to ensure there is nothing to give the lender any concern that your work will not continue past the initial 12 month term. If it states that this is a short term 12 month contract only - this could present a risk issue with many lenders.
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Q: We run an I.T business and do quite a bit of contracting work with various government bodies. The terms are usually 30 days and most of the time things are ok but we are keen to accelerate our growth plans and would like to investigate business finance options such as debtor finance. Will lenders look at an I.T business for finance?
A: Hi Christo,

There are a lot of new lenders in the marketplace who specialise in business finance solutions for both secured and unsecured loans.
The outcome and which lender will depend on the strength and asset / liability position you are in. Even though a lot of mainstream lenders may balk at lending, many new lenders have entered the market in the last 12-24 mths to fill this gap and growing demand.
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Q: How long does it take to register a company for GST in Australia? Does it get registered with the ATO within 24hrs or does one have to wait weeks for it?

Thanks for your help
A: Hi CR,

Best to use an accountant to ensure there are no delays. If you do it yourself on www.abr.gov.au you need to be sure to enter all details absolutely correctly otherwise it can be automatically referred to a manual decision. It depends on your circumstances and whether it’s an existing company or a new company to be registered.
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Q: I am a health professional, have my practice I have house owned and 2 investment properties, the loan on them 3.5 million with ANZ, my house is debt free worth 2 mil, but it is in a cross collateral security with one of my investment property that has a loan of 2.1 mil, I have a business loan of 830 k with ANZ, my repayments for loan investment 13K a month and business loan 4K I guess the loan is fixed for 2 years , I want to build my house knock down and rebuild for 1.2 Bank don’t lend ?
A: Hi Rob, in this instance you would be best getting specific financial advice relevant to your specific situation and circumstances. I can recommend speaking to a Mortgage specialist who understands loans for health professionals. I’d recommend speaking to Michelle Ivanov at Mortgage Choice Fairfield. She is excellent with policy, lender criteria and health professionals.
video
Top 10 Mortgage Hacks

blog post
Home owners trapped in mortgage as 'refi' doors close tight!

The last 12 months in the mortgage industry has seen a large number of restrictive actions by regulators in order to slow an overheated property market especially in Sydney & Melbourne.
In ...
blog post
ASIC pulls the trigger against dodgy Credit Repairers. What's next on the agenda?

Last week saw the beginning of ASIC proceedings against a notable company within the credit repair industry. The industry has been called into question due to a number of complaints by dissatisfied ...
video
Leadership Part 5. PINNACLE

video
Leadership Part 4. PEOPLE DEVELOPMENT

video
Leadership Part 3. PRODUCTION

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Q: Looking to borrow about $670,000 and a broker has quoted options of 1.3% off one of the banks standard rate and rate from a non bank called loanave. There doesn’t seem much difference between the loan but the rate is 0.26% lower - is it a safe decision to go with the non bank?
A: Hi Jas, further to the previous answers. You can ask your broker which lender is the 'funder' for the Loans Ave product. Many tanks are what we called in-house 'white label' products. This means that the brand is not usually the actually funder. Most of the products in the market are backed or owned my one or another of the major banks. A number of banks offer brokers with sufficient client bases, the option of a white label product to promote their own brand. It also can give the broker & client relationship more control over the service once the loan has settled.
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Leadership Part 2. PERMISSION.

video
Leadership Part 1. POSITION

blog post
Start asking better questions if you're serious about getting into the property market.
Pick up any newspaper and you're bound to see copious articles on the doom and gloom about how unfair it is that property prices have risen out of reach in many areas. It's very easy to get sucked int ...
video
Want to be an effective communicator? 7 Daily Habits to transform your relationships and results.

blog post
Want to be an effective communicator? 7 Daily Habits to transform your relationships and results.

In a competitive, fast moving business environment, everyone is look for an edge over their competition. Since the inception of the internet, as a society, we've become more educated as information ...
video
'What's my maximum lend?' is NOT the right question to ask your finance expert.

blog post
'What's my maximum lend?' is NOT the right question to ask your finance expert.

You might have noticed that right now is a very nervous time for the banks. All indications suggest the tough times are far from over.
Lenders have been tightening lending calculators over the past ...
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Q: I am concerned I have a bad credit rating, but I don't know how to find out if this is the case. Also, if I do have a bad credit rating, is there a way I can fix it?
A: Hi Sarah,

I previously worked for a leading Credit Repair law firm.

Firstly, you can obtain your credit file from Veda once every 12 months at no cost. That would be your first step.

If you do have a default or other negative listing, it can be contested and legally removed I the listing should not have been placed or was placed with error or. The creditor must demonstrate they follow all relevant legislation and procedures.

Happy to speak further if you prefer to chat on the phone.

John J Maxwell
Senior Mortgage & Finance Consultant
john@cocalexconsulting.com.au
0434 544 225
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Q: There's so many brokers. Do they all have access to the same bank deals? And when I get my loan, will my broker proactively identify when I should refinance - or do I need to do this investigation myself every year?
A: Hi Daniel,

As well as having access to a range of lenders on our aggregator panel, I also have access to Mortgage Managers space whereby the mortgages are originated from the banks' wholesale arms which gives us the ability to create market-beating loans.
You can find contact me directly on:


John J Maxwell
0434 544 225
Senior Finance Consultant
Cocalex Holistic Mortgage & Finance Consulting
john@cocalexconsulting.com.au
answered
Q: We are looking to buy a new home and would prefer to buy before we put our own home on the market. Is that possible, can you still obtain bridging loans and what are the issues we need to be considering before we start looking?
A: Hi Frances,

Bridging finance or also known as 'go-between' finance can be a very good solution to allow you the freedom of finding your new home first then selling your current home after you finalise your purchase. It also gives you more time to get the right price for your sale without feeling rushed.

The serviceability is calculated on the end debt position NOT the total peak debt position. You need to consider the capitalised interest during the bridging period which is usually 6mths or less plus the stamp duty and other associated costs of buying and selling.

Feel free to contact me if you'd like me to come out and do some numbers for you. I'm just at Alexandria.


John J Maxwell
0434 544 225
john@cocalexconsulting.com.au
Cocalex Mortgage & Finance Consulting
answered
Q: What's the maximum variable interest rate that I should be paying on my home loan? Not fussy about the lender - I just want to know the range of rates that are considered acceptable if I refinance.
A: In the current market conditions you should be aiming for rates at least in the low 4's or below 4 and as low as mid 3's if you just want a simple low with a low lend (LVR). There are multiple factors that determine your interest rate as well as the loan conditions.
Your goal will determine which loan is best for your situation. For instance, if you wish to pay off the loan in as little as 1/3rd of the term then a low rate home loan will not do this. Make sure you get the right advice about the best strategy and structure to pay off your loan in the shortest time.
Currently we are offering some very sharp rates in our fixed rate and combo loans which also have a 100% off set account attached (YES - that's right, a fixed loan with an offset account).

The right mortgage coach could be one of your best investments!


John J Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: Can you refinance an investment property loan without a salary/income? I have 2 investment properties with a combined value of about $1.4m and loan balance of $600k. They are positively geared (just). Have quit work to start a new venture so no salary
A: Hi Tim,

It may be possible depending on how long your new business has been registered and trading for. Multiple factors will determine how competitive the interest rate and loan conditions are.


John Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: We have recently taken out a mortgage but have had to go with a loan that has a higher than average interest rate because of a small issue on my husbands credit file. Assuming we make payments early, how long until we can refinance at a lower rate?
A: Hi Michelle,

From what you've described you have gone to a non-conforming lender such as Pepper or Liberty. I'm curious as to how small the credit blemish was as well as what it was for?

Recently I was General Manager for a leading Australian Credit Repair law firm, specialising in removing credit issues that were not lawfully placed on your credit file.

You may be able to refinance after 6 months provided the blemish is no longer in the credit file.

Call me if you would like further details about how to resolve your situation and get back to a lower rate home loan.


John J Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: When we got our home loan early this year the rate was 4.22% and since then the RBA has cut rates twice but when I looked at our rate online it is showing 4.02%. Should we have received more than 0.2% rate drop?
A: Hi Tom,
Almost all lenders have been conservative in the rate reductions which have been passed onto the borrowers for the last two 0.25% RBA rate cuts. The average passed on at each movement was 0.11%. It's expected that the same will happen if the rates are cut again. This is common during a period of extremely low rates. The banks have to manage their profit distribution across all channels and low rates have them shifting attention towards deposits hence some of the rate cut was distributed to increase deposit rates proportionately.

If you are looking for a sharper rate, this probably a good time to do so as there is increased competition between lenders. We have recently won't the Canstar 'Best in Industry' award along with many other awards over the last 7 years. Feel free to give me a buzz if you'd like more information.


John J Maxwell
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: How do you know if you need life insurance?
A: Tom, there are a range of different insurances available for different purposes. The best think is to get advice from an insurance agent or financial planner. You may require general insurances and/or advice products to create a solution best suited to your circumstances.

Let me know if you need any help. We are aligned with the QBE range of products.


John J Maxwell
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: Looking at getting my first credit card for fairly minor purchases. At the moment I'm thinking the best option is a no annual fee, low interest card such as Coles MasterCard. Can anyone offer tips or advice for someone new to the market ?
A: There are a lot of choices. Choice Magazine often publishes comparisons of different cards and benefits including reward points etc. so find the one that matches your habits and lifestyle with low (total) costs.
More importantly, do your research.. however, never do your research by applying for many different cards as this will adversely affect and damage your credit score for up to 5 years. Every time you apply, this lists on your credit report.
Many lenders (personal loan and mortgage) will automatically decline your application if you apply 6 times within any 12 month period. This is regardless of whether you accepted the credit or not.
If you want to check your credit history, you can check your own credit report each year for free and without adversely affecting your credit score.


John J Maxwell
Senior Finance Consultant
Cocalex Holistic Mortgage & Finance Consulting
0434 544 225
john@cocalexconsulting.com.au
answered
Q: I am looking at selling my current PPR and buying a bigger PPR? This property is used as security for two investment properties. How should I go about it to avoid a bridging loan and paying LMI, or selling first & having to pay down the investment loans?
A: Adelaide Bank has a fantastic bridging finance loan which works on your nett loan on completion. This means you don't make any repayments on the whole amount borrowed until you sell your PPR. Provided you can service the loan.

John J Maxwell
0434 544 225
john@cocalexconsulting.com.au
Cocalex Holistic Mortgage & Finance Consulting
answered
Q: With the predicted 30% drop in apartment prices due to oversupply and the number of defaults from Asian buyers...are we likely to see a drop then flow onto house prices overall?
A: Hi Marilyn,

The short answer is Yes, apartment in most major cities are experiencing oversupply. Perth has been experiencing this for about 6mths already, Brisbane is feeling the pinch now as is Melbourne. Sydney is relatively insulated as the supply and demand are relatively stable, in houses but many areas of apartments are in oversupply and will drop in price, however, there are always pockets of differentiation in every city. As far as house and land are concerned, Sydney is still experiencing a shortfall, Brisbane is expected to continue to grow as will Adelaide (the slow, steady and stable city) and Melbourne is expected to be patchy. I hope this helps.

John J Maxwell
0434 544 225
Senior Mortgage Consultant
Cocalex Holistic Mortgage & Finance Consulting
john@cocalexconsulting.com.au
answered
Q: For a first-time buyer's home loan, do all banks in all states require a 10% deposit or is that negotiable?
A: Hi Camille,

You may be able to qualify for a 95% loan, requiring only 5% deposit if you're purchasing a home. Investors are required to pay 10% deposit and can borrow up to 90%. However, be aware that the higher amount you borrow above 80% the higher the LMI costs become. This will increase your total contributions required. If you are purchasing a NEW home, you may qualify for an FHOG in your state. You can check on www.firsthome.gov.au


John J Maxwell
0434 544 225
Mortgage Consultant
Cocalex Holisitc Mortgage & Finance Consulting
john@cocalexconsulting.com.au
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Q: My wife and I are looking at a house & land package as an investment option. Which areas should we be looking at... Brisbane, Sunshine Coast, Melbourne or Adelaide?
A: There are good areas to invest in virtually all of the regions you mentioned. I would recommend reading some of Michael Matusik's articles. He reports on prime investment regions and often backs up his opinions with chars and statistics. Well worth the read. Typically, Adelaide has a very slow and steady growth pattern. Brisbane is expected to do well with house and land, and from my experience all of these areas are patchy, so it will pay to do you homework and suss out the best pockets.
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Q: I'm looking at a 1 bedroom apartment for an investment, what percentage of the value will I be able to borrow? I don't see the benefit of it is too low to have the property negatively geared.
A: The most you can borrow is 95% LVR. In some instance with a limited number of lenders they will allow you to capitalise the LMI costs above the 95%. A very good strategy for a savvy investor to maximise taxation benefits.
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Q: Which lenders are still accepting foreign investor loans and what are the criteria or conditions?
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Q: I've recently taken on a new mortgage and have a small amount of leftover money each month, am I better to pay it into the mortgage or are there investments that will perform well enough to offset the mortgage interest?
A: The answer depends on the level of risk you are prepared to take on? Given the record low interest rates we are experiencing currently, placing your money in an offset account to offset the mortgage interest is a smart move. Generally speaking, the deposit rates and term deposit rates are not currently attractive enough - also bear in mind... You will pay tax on any interest earned which will be offset against your returned rate. Of course there are other categories of investments that can achieve more attractive returns however may attract greater risk profile and require larger amounts invested as well.

John Maxwell
Cocalex Consulting
Business & Finance Consultant
0434544225
john@cocalexconsulting.com.au
answered
Q: I'm looking at a 1 bedroom apartment for an investment, what percentage of the value will I be able to borrow? I don't see the benefit of it is too low to have the property negatively geared.
A: The most you can borrow is 95% + you can capitalise the LMI with a limited number of lenders.
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Q: I am keen to use the equity in my home to invest - maybe real estate. Maybe another option. Does anyone have any firm advice on the available options at the moment?
A: Be aware of changing tax laws around using Line of Credits FR investment purposes and reducing your investment loan balance. The ATO are cracking down on this and not allowing deductible interest in these circumstances if you have reduced your mortgage - you will lose the maximum benefit you are able to claim!

Feel free to contact me if you have further queries. There are some really smart and innovative loans available especially through some mortgage managers & mortgage originators compared with the banks.

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: If I start up my own business - can I qualify for a Research and Development grant from the Government?
A: I have a colleague/ associate who specialises in R & D Applications. He is based in Sydney. Let me know if you would like an introduction?

Joh Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: Who has the most competitive home loan rate in Australia currently??
A: Currently I am able to access rates as low as 3.58% with a premium bank!

John Maxwell
0434544225
john@cocalexconsulting.com.au
answered
Q: If I received conditional approval for a credit card, but now I don't want to go ahead with my application, does this affect my credit score?
A: If you have received an approval of any description it means that the lender has conducted a credit check. Too many enquiries for credit in a short space of time or collectively over 5years can greatly affect your credit score especially if you shop between different lenders to try and find the best deal over the phone or online - each one could be another enquiry added to your credit file and can be doing a lot of harm.

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: I am a first time buyer. What is the % deposit I should be aiming for to get a decent rate on a mortgage?
A: In this environment of relatively 'cheap' money you can achieve very sharp rates at 90% LVR (10% deposit) or even 95% LVR (5% deposit). I have found that some mortgage managers and originators I deal with have more control in offering a sharper rate compared to the banks. I can access rates as low as 3.58% but remember the best rate is NOT always the best loan. Take into consideration the total interest cost and other associated costs, restrictions and limitations. Many of my clients are choosing some smart fixed options which includes a full 100% offset account - very innovative and effective for an astute buyer!

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: Is it possible to claim the GST for the expenses on my investment property?
A: There is quite a lot you can claim on your investment property including interest costs, professional fees, etc especially if you engage a good accountant and engage quantity surveying and a depreciation schedule. Many investors are missing out on thousands of $$$ that can be claimed that they are not aware of. Most cost are inclusive of GST and are considered as such.

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: I'm about to buy a home, how much should I allow for conveyancing? Are there any other fees I should be aware of?
A: Conveyancing can generally range from $600 - $1600. Cheaper is often not the best option if you want the on done right the first time and on time. However, dearer does not mean better value or service either. There are some really good Conveyancers and online options are also becoming more popular. Depending on your LVR you will need to consider LMI over 80%, stamp duty, solicitors fees on the mortgage, establishment fee, settlement fee, valuation, and any package fees or loan split fees. Your real estate agent will present any other specified fees such as rates, pest inspection, search fees etc. Some of these fees can be minimised and/or eliminated.

Happy to hep more if you need, or have further questions.

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: With interest rates at an all time low, is now the right time to fix a percentage of my loan?
A: I have found fixing is quite popular with many of our clients - most commonly choosing three years fixed terms (not too long not too short). We are able to offer a unique fixed loan which can include a 100% offset account as well, giving you both the peace of mind of a set repayment, a sharp fixed rate and the flexibility and benefits of a full offset account to minimise interest costs.

Let me know if you would like further details.

John Maxwell
0434544225
john@cocalexconsulting.com.au
answered
Q: Which areas of eastern suburbs sydney are (relatively) affordable to buy property for families?
A: The answer depends on what your price expectations are and what size and type of property you are seeking. In general terms, the Easter suburbs are not affordable for most. You'll need to go quite a way out into the suburbs to find any properties in the 'affordable' price category. Happy to have a chat offline if you would like and see if I can help.

John Maxwell
0434544225
john@cocalexconsulting.com.au
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Q: Trying buy a unit in St Kilda but finding it difficult to obtain finance as it's 41 square metres. Is 50 squares always the minimum - any advice of which banks might help?
A: There are some lenders that will finance units below 50 squares and possibly as low as 40 squares. Calculations are usually using liveable space. I'd be happy to assist you to find the right lender if you require help.

John Maxwell
0434544225
john@cocalexconsulting.com.au