ME Bank survey

A new survey from ME revealed 94% of Australians think banks don’t act in their best interest. 95% agree banks sometimes put profits before customers and 92% believe banks sell products and services inappropriate to customers. 

Jamie McPhee, ME CEO, coined the phrase ‘bank-xiety’ as a term to describe these findings of worry, nervousness and distrust towards banks.  

Despite this, only 14% of respondents have done something about this and have switched or are in the process of switching to a bank they trust.

Why not let me help you consider switching?

The LAZY 70%

According to Elizabeth Knight in an article in a recent SMH, “The unnecessarily high cost of price discovery is likely a key reason why 70 per cent of borrowers surveyed by one bank said they had obtained just one quote before taking out their residential mortgage, the ACCC report said.”  If that is you, why not let me help you save a bundle by getting the best rate from the most hungry lender.  By the way, it is not likely to be one of the big banks.

6 Steps to Build that Home Loan Deposit when You’re Your Own Boss.

When you’re self-employed you know only too well, your income can vary each month and that makes saving up for a home pretty tough going. If you really want to show potential lenders you’re a good candidate for a home loan, having a history of steady, regular savings is a really great place to start. Here are six ways you can amp up your ability to put that money aside.

 

 

 

 

 

 

 

1. Doing well? Save more

When things are going well and you’re earning more money, don’t be tempted to splash out and reward yourself – keep your eye on the bigger, more important goal you care about. Stash a good piece of that extra cash. The real reward is the bigger number in your interest earning savings account.

2. Set yourself a target

Work out where you want to live first, then calculate how much you need to save for a deposit in that area – and don’t forget to add on those extra costs like stamp duty and legal fees. Remember that, depending on the product you‘re applying for, different lenders may charge different fees. It’s technically possible to get a loan with a five per cent deposit, but hitting the 20 percent target will help you avoid extra fees.

3. Watch your progress

It’s not just kids that respond to visual reminders – we all do. Make a colourful wall chart of your savings target, so it is always front of mind and you can see it grow when you add each new amount to the top.

4. Be smart with taxes

If you’re self-employed, there are tax deductions for business related expenses that can really add up to help you save. These might include things like home office expenses. To get good information about what you can claim, check out the ATO website or have a chat with a qualified tax professional or an accountant who can help.

5. Always put a little something away

A little goes a long way. When your income is different each month it can be tempting to only put money aside when you get large payments in. Everyone’s situation is unique but if you save a bit of what you earn every time you get paid, you’re always working towards your own home target and you’re getting there one step at a time, every time.

6. Protect your income

If you can’t work because of injury or illness, income protection insurance can help cover for lost income so you don’t use your deposit savings to live on. ASIC’s Money Smart website offers some good tips and information about income protection insurance that’s worth checking out.  If you’d like more information talk to us today about how we may be able to put you in touch with a lender that can help if the major banks say ‘no’ to your loan application.  0419 664 186.

Disclaimer: Original content source: Pepper Money. It is designed for publication through Accredited Brokers, to provide you with factual information only, and it is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, but neither Pepper nor its accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call Don on 0149 664 186.

 

 

 

 

 

 

 

 

 

 

 

Shocking Statistics

According to Peter Nichol on LinkedIn, “Remember 62% of all personal bankruptcies in the United States are due to healthcare bills and 72% of these people HAD healthcare insurance before bankruptcy.”  He was referring to the ever-narrowing margins available to Hospitals to fund new technology, like Medical Imaging Equipment.  The gist of it was a question about the wisdom of GE to make Medical Technology one of the three pillars of its new restructure.  I wonder if he knows how much GE makes on Medical Imaging Equipment sales in the U.S.  It’s huge – about double what it makes elsewhere in the world.  That is, unless things have drastically changed since I left in ’06.  I doubt it.