Here at Smartline Personal Mortgage Advisers, we’ve always tried to build our business on what we do rather than what we say.
How many businesses have you seen that can genuinely live up to their advertising slogans??
Smartline’s plan has always been to grow our business by just taking better care of our clients, no clever “one liners” and no multi million dollar advertising campaigns. This can often seem like the hard path to travel, but it works better in the long run.
SMARTLINE WON THE AWARD FOR THE BEST MORTGAGE BROKING GROUP (Retail) in Australia!!!
This success was made all the more powerful given we overcame three high profile brands:
Mortgage Choice; and
Choice Home Loans.
Although our brand is not a household name, Smartline now has over 300 of the most productive and effective mortgage brokers in the industry. Our team takes care of over 120,000 active and loyal clients that have rated our service at an average of 98/100 for the last few years.
This is a very proud moment for us, however, we are well aware that our whole business has been built on your patronage and advocacy. Which is why this award is as much through your loyalty, as it is our dedication to you!!!
Thanks so much for your ongoing support!!Read more
Sometimes all you need is a little variety. There are a number of home loan options available, which can be matched and paired with your needs in order to help you achieve the best possible mortgage situation.
However, it can be difficult to decide between selecting a fixed or a variable rate for your loan. The two offer different experiences that can change the way you approach your repayments and influence your financial situation.
There is an option for those interested in reaping the benefits of both worlds – a split home loan.
These are great for people who want to spread their interest rate risk, especially in the event of an escalating cash rate and rising rates for credit products. Furthermore, having the security of the fixed home loan allows for easy budgeting.
This type of loan also allows for the opposite scenario to occur. Having a variable rate home loan means you can take advantage of the lower interest rates that often come along with a reduced cash rate – something that has been happening over the last few months.
These splits are often done by ratios, with the most common being 60% variable / 40% fixed rate or a straight 50% / 50% split. This customisation can help you to make a personally tailored mortgage package, which could put you in complete control of your financial situation.
Get in quick to secure a reduced interest rate for a fixed period on your home loan to avoid missing out in the long run. You can contact me anytime via SMS or give me a call on 0407 642 484, or even send me an email…it is that simple!!!
Remember, I am only too happy to help out.Read more
The 12th of March 2014 heralds several significant changes to credit file reporting and information on your credit history.
We recognise that this may seem like a very dry subject but it is VERY IMPORTANT FOR YOU TO BE ACROSS THESE CHANGES!!!
Until now, Australia’s privacy act has limited the credit reporting agencies to only providing negative information about your credit background. This includes credit defaults, bankruptcies and any credit enquiries / applications that you have made. That limited level of information reporting is about to change in a significant way.
To see exactly what new information will be available on your credit background you can click the following link to a very comprehensive website:
The main points of change are as follows:
- Information about your monthly repayment conduct (ie paid on time) over the past two years can now be reported;
- If you apply for credit, the decision by the credit provider can now be reported (declined or approved);
- The current limit on all of your credit cards (and other credit facilities) can now be reported. This also means that if you get a limit increase, this can now be reported on your credit record;
- The repayment term and repayment type on all of your credit facilities can now be reported;
- A credit provider can now also provide an opinion that you have fraudulently attempted to get credit or fraudulently evaded your obligations to repay credit, or that you do not intend to comply with your repayment obligations;
- Credit defaults can be lodged on any outstanding amounts over $150 if you are more than 60 days behind on your repayments.
For the majority of people, there should be great benefits associated with this new credit reporting system. The overall cost of credit fraud in Australia is quite high and this new system could go a long way toward reducing the cost of credit for all of us. Let’s hope credit providers pass on the savings!!!
It is also important to note that the 12th of March is only the point where the credit providers can legally start reporting this information. Most credit providers will take time to build the systems capabilities needed to take full advantage of their new found freedom.
If you (or your family or friends) are currently experiencing difficulties in relation to any credit facilities, please call me. I have a range of options that may be available to you to rectify or improve your credit before these changes come are implemented.
Well, by now you would be aware that the Reserve Bank of Australia (RBA), has left Official Interest Rates on hold for another month. You can read the full statement from the Governor of the RBA at the attached link:
This decision has largely been made because the inflation rate is holding steady.
We are always asked by clients and media representatives to provide interest rate forecasts. This is a dangerous game as the world economy is unpredictable. However, we do believe that a greater understanding of the RBA’s objectives will help us make better interest rate choices.
The RBA’s approach is fairly simple and predictable…..
Low inflation and high unemployment indicate that our economy is weaker. Conversely, high inflation and low unemployment point to an overheated economy. The RBA strives to smooth out the booms and busts to have a steady rate of growth.
If an economy is weak, the RBA reduces interest rates to put more cash in borrower’s pockets. If the economy is overheating, the RBA takes money out of our pockets via higher interest rates.
This approach sounds relatively sensible. However, the Aussie Dollar represents a potential ”spanner in the works”.
If the exchange rate experts are right, the Aussie dollar is expected to continue on a downward trend. This is largely due to the fact that the USA is going to stop flooding the world market with US dollars. If this happens, the cost of imported items will become more expensive. These higher prices will push up the inflation rate. The RBA could then move to quell rising prices (inflation) by raising our variable home loan interest rates.
So, as you can see, if the Aussie dollar does continue its downward trend, there is a good chance that we will see higher variable home loan rates.
With fixed home loan rates at historic lows, this analysis does provide food for thought when it comes to that ”fixed vs variable” decision.
As always, if you would like to discuss your property or finance ideas, please let me know. I am only too happy to help out to ensure your finances are working as hard as you do!!!Read more
With the New Year upon us, now could be the perfect time to consider your living situation and TAKE CONTROL OF YOUR LIFE!!!
The world of home loans and real estate is vast and expansive, with a number of different options available to help you find the perfect abode for you and your family.
Following the record cash rate reductions experienced last year and an optimism that this market strength will continue into the near future, there has never been a better time to consider getting in contact with a home loan expert and discussing the various options available to you and your family.
Whether you’re looking into funding your first home loan and making the jump from tenant to homeowner or investigating construction loans to make your dream property come to life, there are a wide range of financial products available.
Or perhaps you’re looking to try your hand at property investment. This new year could be the optimum time to chase these goals and begin creating a property portfolio to help you generate wealth and start moving up the property ladder.
Or perhaps you already have a mortgage and your ultimate home, but want to help yourself get debt-free faster and begin enjoying the fruits of your efforts without worrying about regular repayments and budgeting. Chatting with a financial expert about the refinancing options available to your could provide you with insight into the various tips, tricks and home loan facilities that can make mortgage repayments easier to cope with in the long run.
Regardless of your age or experience with the real estate market, as an experienced Smartline Personal Mortgage Adviser,I will do my best to help you find the most suitable home loan for you and your situation.
Give me a call on 0407 642 484 for Smarter Home Loan ADVICE!!!Read more
True, patience can be a virtue. However, this advice should not be confused with just waiting for something good to happen. We need to be patient but we also need goals and a plan.
One of the great unexpected benefits of being a mortgage broker is that we get to participate in the goals of hundreds of people.
Most goals are short term, “I want to buy a house”.
A few goals are long term “I want 5 investment properties by the time I retire in 25 years”.
The short term goals are mostly transactional, they really only serve an immediate need.
Long term goals are visionary but cannot possibly take into account the twists and turns that life throws in our way.
We have noticed that 5 year goals seem to have the greatest chance of success. 5 years goals require patience but they are short enough to keep you engaged. The finish line is not that far away!!!
Here are a few successful “5 year” goals that we have been fortunate enough to witness:
1. A young couple were about to have their first child and wanted to buy a house with a back yard (near their family). They could not afford it. Their 5 year plan was to buy 2 small investment units and do their best to reduce the debt over the 5 years. At the end of the 5 years, their units should be worth more and their debts would be lower. They could either sell the units and buy a house or use the equity in the investments to buy the house. They ended up keeping the units and used the equity to buy a house (with a big back yard) for their two kids.
2. A couple with 3 kids (aged 1,3 and 4) lived in a 2.5 bedroom timber house. They knew that in 4 or 5 years time this house would not be big enough. They got a quote to complete renovations to upgrade to a 4 bedroom house. The cost was well beyond their borrowing capacity so they did two things. They purchased a $300K investment property (the rent almost paid the full mortgage repayment) and they started paying down debt with every spare cent. Their eldest is now 9 and they have just started their renovation. They just sold their investment property for a handsome capital gain.
3. A client in his mid 50′s had inadequate savings for retirement after his 3rd divorce. His goal was to own 2 investment properties that would pay him $1000 per week to live on when he retires at 60. To do this, he purchased 5 smallish investment properties 6 years ago. He has now sold off 3 of these properties and used the proceeds to almost clear the debt on the remaining 2 investments. He now collects $800 per week (after the small mortgage repayment). He is now 60 but loves his work too much to retire and also wants to eliminate the mortgage.
4. Another couple wanted to live in a particular suburb that had good schools in the area. A nice house in this suburb was well out of their reach. Their 5 year plan was to buy a “run down” house for close to land value, pay down the debt for 5 years and then rebuild a nice new house on the block. They have successfully knocked down their mortgage and have just had their construction loan approved. They will be moving in to their new house at the 6 year mark.
We could go on and on with more examples, but I think you get the message.
These people were forced to be patient but they had mid term goals that helped to keep them engaged.
Each of these people used Smartline’s advice to formulate their action plans. This is an enormously satisfying part of my role and I encourage you to talk with me about your goals.
We are at that time of the year when people set new year resolutions. My advice is that you set yourself a 5 year goal instead!!!
What can you achieve by 2018?Read more
Every year, here at Smartline Personal Mortgage Advisers, we look forward to the release of the BIS Shrapnel “Australian Housing Outlook” report. This report from BIS Shrapnel has built up a solid reputation for predicting the future value of property.
QBE Lenders Mortgage Insurance commissioned this report which lends a great deal of credibility to the analysis. QBE LMI are the second biggest mortgage insurer in Australia and they have a lot riding on the accuracy of the BIS Shrapnel analysis.
You can view the full report at the attached link - http://www.qbelmi.com/Uploads/Documents/96930262-be5c-4125-9b29-f14e1bfdbb04.pdf
While the report itself is 45 pages long, the analysis team at Smartline Personal Mortgage Advisers have summarised the capital city predictions for your convenience in the table below.
If you are looking to purchase a property in 2014, I strongly recommend that you read the full report to provide you with as much information as possible when considering your investment property options.
As always, if you would like to discuss your finance or investment options further, please get in contact with me sooner rather than later.
I AM ONLY TOO HAPPY TO HELP OUT!!!Read more
One of the most important measures of a property’s value is the amount of rental income that it can generate.
A good way to determine if a particular property is generating strong rental income is by looking at the RENTAL YIELD.
Here is an example of a rental yield calculation (based on the December 2013 RP Data Property update) below:
a) The median rent for a unit in Brisbane is currently $409 per week. This equates to $21,268 over a year.
b) The value of this property is $386,690.
c) $21,268 in annual rent is 5.50% of the $386,690 property value. 5.50% p.a. is the Rental Yield.
What makes this current market so enticing for investors is that rental income is often higher than the interest cost of the mortgage.
Take the above example in Brisbane.
a) A person takes out a home loan for $367,355 to purchase a unit for $386,690 (the home loan is 95% of the unit’s purchase price).
b) The annual interest only payment on this loan with a 3 year fixed rate of 4.89% p.a. is $17,963.
c) The current annual rental income for this property would be $21,268. You do the math.
There are of course other risks, costs and benefits associated with owning an investment property, however, this situation where mortgage interest expense is less than rental income is quite rare.
Now you can see why people are so keen to invest. If an investment property has little impact on your weekly budget then it can be an attractive financial proposition indeed!!!
If you would like me to conduct a more thorough review of your investment options, please get in contact with me.
I am only too happy to help out!!!Read more
As you no doubt are aware, the RBA Board has decided to keep official cash rate steady at 2.50% p.a.
Now, while this was a widely expected decision, what is not so widely known is that the RBA is still leaning toward a cut rather than a rise.
The bias toward a cut is due to three key factors:
- Increasing unemployment rates (low rates theoretically stimulate the economy and employment)
- Relatively low inflation rates (normally low rates generate higher inflation) and
- The stubbornly high Australian dollar (low rates should act as a disincentive to buy the Aussie dollar and drive up its value) .
As you can see from the chart below, the ASX futures market is not expecting any change to the cash rate over the next 12 months!!!
The purple line in our Smartline Interest Rate Comparison chart (below), shows that variable rate home loan rates are reflective of the stable RBA cash rate. There has been little change over the last 5 months.
However, you will note that both types of fixed rates have slightly increased over the last 2 months. Having said that, both are still at historically low levels.
FYI, there are a number of highly competitive offers available out there in the market place…SPECIALS DO ABOUND!!!
Some banks are even happy to pay your refinance costs from the outgoing bank. You could say COMPETITION IS ALIVE AND WELL!!!
If you would like find out how you are currently positioned for your home loan finances, please email me at email@example.com or call me on 0407 642 484.
I am only too happy to help out!!!Read more
With more positive commentary coming out everyday, an increasingly popular avenue for investment is property, with a number of markets across the nation becoming potential HOTSPOTS for smart buyers to establish themselves and make a decent return.
However, if you’re considering taking out a property investment loan, there are some things to think about before taking the plunge and purchasing real estate.
Anyone interested in looking into buying property in a capital city will need to consider the type of tenant they’d ideally like to attract. This will give you a basic direction to follow when it comes to your other decisions.
For example, young professionals are more likely to be looking into smaller dwellings – such as apartments – that are generally located closer to the city’s central business district, allowing them to be closer to their work places and reduce the amount of commuting time.
On the other hand, families are generally more suited to larger properties in the suburbs. Therefore, potential investors will want to consider things like the location of local supermarkets, outdoor recreation areas and schools.
However, investment isn’t all about satisfying the needs of your tenants. Something that needs to be considered is where the up-and-coming property hotspots are located, and investigate purchasing real estate near them .
The overall goal from investment property is to earn a return!!! Therefore, doing your research, discussing your options with professionals, and coming to a conclusion about potential growth areas is an important part of building a strong, profitable property portfolio.
There are also a wide range of financial factors to consider, so give me a call today on 0407 642 484, or send an email to firstname.lastname@example.org to chat about the various home loan options available to you, but more importantly, find one that best suits your needs.Read more