Category Archives: Owner-Occupied Home Loans

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.

 

 

 

 

 

 

 

 

 

 

 

Over 60? Asset Rich, but Cash Poor?

There is a way to unlock the equity in your real estate:  a Reverse Mortgage.  I’m now an accredited broker, and the first loan I wrote was for my wife and me.  It’s made a significant improvement in our cash flow (>$4000 / month), we’ve made a lot of overdue repairs and updates to our home, and we still have enough for nice, long holiday in Fiji.  It’s given us a real lift in terms of Peace of Mind.  Why not give me a call?  A brief discussion will reveal if a Reverse Mortgage is worthy of serious consideration.  Ring Don Greenamyer on 0419 664 186.

Don’t be among the 33%

According to AustralianBroker, 33% of Australians are failing to put in the effort and seek out better home loan deals despite slow wage growth and piling levels of household debt.  Apathy and the hassle of switching lenders seem to be the main reasons, but it’s very easy to ring your broker and let him or her save you the hassle and potentially save you a lot of money.

Continuing Housing Under-supply in Sydney?

When my clients ask about the potential for a substantial drop in prices for residential real estate in Sydney, 0829 Sooner Solutions logo email and webI’ve often referred to the consistent message from the major banks’ economists and others.  That is that supply and demand are pretty much in balance in all capital cities except Sydney, where we have a gross under-supply that is likely to persist well into next year.

I now have reasons to question this position.  Bank economists are very unlikely to ‘talk down’ the market, because 60% of their balance sheets are bricks and mortar.  And, in my previous post, I included graphs provided by Stockland, who also have vested interest in the rising market.  The other reason is that property monitoring experts are projecting a glut of units due to the many high-rise developments now under construction.  They do, however, also project a continuing under-supply in standalone housing.

P.S.  I noticed that the 5-year swap rate increased by a much wider margin than in the past.  On Friday, the 30th, it was 1.87%, and on Friday, the 7th, it was 2.01%.  Could this be a turning point?

Where to from here for residential property prices?

0829 Sooner Solutions logo email and webFriends, clients, and prospects often ask if we’re nearing or at the top of this cycle in the residential property market.  My replies have been consistently the same – probably not.  Bank economists over the last 12-18 months have stated that the Sydney market is grossly under-supplied and will likely remain so well into 2017.  So, prices continue to rise, aided in part by the six-year plus downward trend in interest rates.

An article in the weekend Fin Rev provides further evidence, the most interesting part being the graphs based on data from Stockland.  If they’re anything close to accurate, those who want to buy but think that prices will fall in the next year or two, may experience an expensive regret.

stockland

Real Estate ‘Bubble’ in Sydney?

0829 Sooner Solutions logo email and webDuring the Ku-ring-gai Chase Fun Run for charity yesterday, I talked to a prominent local Real Estate Agent.  When I suggested that he must be ‘raking it in’, his reply was the same as others that I’ve talked with recently.  They don’t have enough ‘stock’.  So, as long as demand continues to outpace supply, prices will continue to rise.  As my stockbroker uncle used to say, a bull market “climbs the wall of worry”.

Goodwill Loans

0829 Sooner Solutions logo email and webI had coffee with a banker the other day to discuss his ‘appetite’ for a Goodwill Loan for one of my Radiologist clients who is negotiating the purchase of shares in an established Medical Imaging business.  He very clearly identified the cycle that all banks follow, although they’re rarely in sync.

The banks shift back and forth between loose and tight credit policies.  His bank is currently in a tightening phase for Goodwill Loans due to a growing number of bad and doubtful debts, mainly among Dentists.  It reminded me of my experience at GE Healthcare where the ‘pendulum’ swung back and forth between a focus on market share and a focus on margin.

Monitoring the banks’ fluctuating appetites for the various asset classes is one of the core competencies of a good finance broker.  So, save yourself a lot of time and hassle by engaging Sooner Solutions to source the right facility and lender for Medical Equipment Finance, Commercial or Residential Mortgages, Loans for Motor Vehicles, and Goodwill Loans.