4 09.14 8:16

The August 2014 edition of The Smartline Report is here!!!

Check out the latest edition of The Smartline Report where:

  • Cameron Kusher, Senior Research Analyst, RP Data, explains that most of the growth in home values occurred in the first six months of 2013-14; while
  • Olivia Long, Founder, Xpress Super, analyses that self-managed super funds continue to be an option for a growing number of people; and finally,
  • John McGrath, CEO, McGrath Estate Agents, promotes the old strategy of buying and holding as the easiest form of real estate investment; as well as expounding the myth that Winter is a bad time to sell a property.


Click on this link to find out all the details - Smartline Report – August 2014


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14 08.14 11:25

Where is Australian property HEADING???

Have you ever come across someone that invested heavily in property 20, 30 or even 40 years ago???

Most of the time these long term investors are now sitting on easy street. They always make you think about the price of property in 20, 30 or 40 years time from now.

Where will prices be in 2024, 2034, 2044 or 2054???

Here is a hint…the Australian Bureau of Statistics (ABS) is forecasting a rapid increase in Australia’s population (see below).

Smartline - Property 20140814

Property that is conveniently located to work districts, hospitals, schools, transport corridors and desirable features such as waterways will almost certainly become more sought after.

The current investment property boom is underpinned by simple arithmetic…Income from a rental property is often more than the cost of a mortgage.

With interest rates sitting below 5% p.a. and rental yields often sitting above 5% p.a., the long term approach to property investing has not been this affordable in decades.

If you would like to discuss your investment property plans in more detail, please give me a call.

I am only too happy to help out!!!

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13 08.14 8:03

APATHY is the enemy of Home Loan SAVINGS!!!

I will get straight to the point…if you have a 5 at the front of your home loan interest rate, then you could be wasting hundreds, even thousands of dollars every year!!!

I have a home loan product on the Smartline panel (with a well known lender) that is now offering 4.65% p.a. (with a 100% offset account). The table below demonstrates the substantial savings that can be made on a $300,000 home loan.

Smartline - Bulk Email - 20140812 - 1

The chart below shows the 15 year history of a basic variable home loan with one of our major banks. The current rate for this product is 5.18% p.a..

Most Australians are unnecessarily paying more than 5% p.a..

Smartline - Bulk Email - 20140812 - 2

Remember, mortgage brokers now write more than 50% of home loans. And Smartline Personal Mortgage Advisers is now one of the only mortgage broking groups that is not owned by a bank or a real estate agency!!!

Put me to work , I will do the home loan comparisons for you, and if necessary, I will help you move across to a cheaper mortgage.


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5 08.14 9:37

A spectacular drop in 5 YEAR FIXED RATES!!!

Most media outlets have already informed you about the RBA’s decision to keep the cash rate on hold…you can check out the statement from the Governor of the RBA here…


The RBA cash rate has not moved from 2.50% p.a. for 13 CONSECUTIVE MONTHS!!! Even better, the ASX futures curve is predicting another 15 months of cash rate stability.

Variable home loan rates seem set to remain in the range of 4.65% p.a. to 5.10% p.a. (depending on what lender you are with, and the particulars of your situation).

But the main talking point over the last couple of weeks is the spectacular drop in the 5 year fixed rate!!!

As your can see from the chart below, three of the “Big 4” lenders are now offering 4.99% p.a. as a 5 year fixed rate. This is genuinely remarkable. 5 year fixed rates at less than 6% p.a. are as rare as hen’s teeth. The fact that we are now under 5% p.a. is ground breaking.

If 3 year fixed rate terms seem more sensible to you, a reputable “non major” lender is currently offering 4.69% p.a..

RBA - July 2014

Should you feel that your circumstances are not likely to change much over the next 3 to 5 years, fixing your rate is certainly something worth considering.

Give me a call and I can talk through the pros and cons of fixing your home loan, feel free to pick up the phone and call me for a chat.

I am only too happy to help out!!!

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27 07.14 9:14

Top TIPS for choosing a mortgage broker…

Whether it’s your first home loan or you’re an investor with many properties to your name, one of the first things you should do when embarking on your next property purchase is to choose an experienced mortgage broker.

As the individual who will advise you on the best home loan option for your particular needs, not to mention represent you in negotiations with lenders and deal with paperwork, it’s vital the mortgage broker you choose is one you trust.

With a few simple steps, you can lessen the chance of having second thoughts down the line in the financing process.

Why use a Mortgage BRoker

Money isn’t so FUNNY
One of the most important things to do when choosing your mortgage broker is finding out how they get paid. Mortgage brokers typically offer their services for free, making their money from commissions on the mortgage and fees.

Before asking ”How much can I borrow??”, ask “How much is your commission?” You wouldn’t want a broker whose judgment is being influenced by a potential hefty pay day. You want them to above all be working for you, not their pay cheque.

Ask them if they charge any fees, and if so, how much? Is the amount fair and reasonable? You may also want to get written confirmation of the amount, so it’s set in stone down the line.

A good broker should have several years experience and be fully qualified. They should also have a Diploma and a Certificate IV in Financial Services, as well as be a member of the Credit Ombudsmen Service Ltd, the Mortgage and Finance Association of Australia and maybe even the Finance Brokers Association of Australia.

Finally, brokers are legally required to be registered with the Australian Securities and Exchange Commission (ASIC) and have to have either an Australian Credit License or act as a representative for an organisation that has one. You can search ASIC’s registers on its official website, at http://www.asic.gov.au/search.

Lend me your ears!!!
It’s also important to find out who’s on their lending panel. Depending on how many lenders they have relationships with and how reputable they are, you might have struck gold with your broker.

A broker with a number of different lenders is generally the safer option, as less lender choice means you could be missing out on better deals.

If you, or your family, friends, or work colleagues, require any assistance with their property finances, please let me know…speaking with an experienced mortgage broker is the best way to ensure you make the right refinancing decisions and find yourself in the best possible financial health for your situation.!!!

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11 07.14 11:48

Aid your repayment efforts by considering home loan refinancing

There are few things in life that you will commit to that are as big as a home loan. Taking on such a financial obligation can seem daunting at first, and it can often lead you to feel weighed down by debt for years to come

And as your life circumstances begin to change, so will your home loan needs!!!

Perhaps you find yourself struggling with the amount of your home loan repayments. Or, on the flip side, you may find yourself in a better financial situation – resulting in more money to be put towards anything you want.

It would be a good idea to keep an eye on your home loan health throughout your life, because home loan refinancing could put you back in control of your investments and keep you in the strongest financial position possible.


For example, if you’re finding it difficult to make your weekly repayments, it could be worth speaking to a financial expert about the options available to you. For example, it could be possible to reduce the required repayment amount, giving you more breathing room.

However, keep in mind that undertaking this route will make your home loan last slightly longer, which could result in an overall higher repayment amount when you factor in interest being charged on your remaining balance.

The same applies to increasing your repayment amounts. This can help you to get debt free faster, while cutting into your overall balance in a big way and aiding your mortgage efforts.

As always, I am more than happy to run through your personal financial numbers to see what savings can be made…speaking with an expert is the best way to ensure you make the right refinancing decisions and find yourself in the best possible financial health for your situation.!!!

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7 07.14 11:02

You should have a FOMO with rates this low!!!

The home loan market is booming at the moment and I am just flat out. This activity is indirectly the reason behind our email today.

Competition between the banks and non bank lenders is at an all time high and this is generating record low interest rates. The reason for this discounting is simple….THEY CAN AFFORD IT!!!

The following chart demonstrates what we are getting at.

As you can see, during the period between 1999 and 2008 the interest rate margin between the RBA cash rate and what you paid for a variable home loan was around 1.20%. That margin has grown to around 2.60%!!!

Back in 2008, we were usually impressed if we managed to negotiate a 0.70% discount off a banks standard variable rate. We are now negotiating rate discounts that we would not have dreamed of in 2008.

FOMO - July 2014

If you have not reviewed your existing home loan for a few years, it is time to put us to work. Remember, my mortgage broking service is at no cost to you and the savings can be very surprising!!!

For example, a recent client of mine had a $380,000 home loan on 5.08% p.a.. Now, this seemed like a pretty competitive rate. I put them on a 3 year fixed rate at 4.69% p.a. with another lender. This saved them just over $1,400 per annum.

The above example is why you should have a Fear Of Missing Out (FOMO)!!!

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8 06.14 10:32

STABLE INTEREST RATES as far as the eye can see??

Most media outlets have already informed you about the RBA’s decision to keep the cash rate on hold…you can check out the statement from the Governor of the RBA here – http://www.rba.gov.au/media-releases/2014/mr-14-10.html

However, very few of these media groups dig any deeper than the headline announcement. The mainstream financial media can be a strange collective beast. After predicting doom and gloom for the Australian economy for the last 6 months (as mining investment tapers off), the headlines were suddenly full of confidence yesterday when exports showed a strong lift for the quarter.

Disappointingly, as soon as there is the slightest hint of economic growth, the pundits start predicting interest rate rises.

So, as we often do, we have looked at what the real experts think of yesterday’s growth data. The experts that put their money where their mouths are. As at the close of business yesterday, the ASX futures market was predicting the next cash rate rise in SEPTEMBER 2015…14 MONTHS AWAY!!!

Of course, the futures market can be wrong, especially if there is a world economic shock like a GFC, however, this ASX forecast is a long way from yesterday’s mainstream media predictions.


Please give me a call if you would like to know if your loan is still competitive, or working as hard as it should be for you!!!

As home loan profit margins expand for the banks, discounts can become easier to negotiate. Put me to work NOW…I could save you plenty!!!

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10 05.14 9:30

Make your mortgage more manageable…research REFINANCING your home loan today!!!

Purchasing a first home is an exciting time in any Australian’s life. Owning property is a huge step towards independence and being in complete control of your life as an adult. When you secure your first home loan, this locks you into one of the largest financial commitments of your life – and this can be particularly daunting!!

However, after a while, if you’re not entirely satisfied  with your mortgage situation it could be worth getting in contact with a financial professional about the home loan refinancing options available to you. This can help to change the features associated with your mortgage, allowing you to make some changes to your overall commitment.


For example, it’s entirely possible for you to change the size of your repayments. If you find yourself struggling to make ends meet, it could be worth looking into reducing your weekly repayment amounts until you get back on your feet.

On the other hand, if you find yourself in a strong financial situation, increasing your repayment amount could help you get debt-free faster. Not only this, but you’ll be able to save money on the interest spent on these repayments – the faster you pay off your mortgage, the faster you stop paying interest, which can go into your savings for a rainy day.

Changing your interest rate is also a potential option when refinancing. In fact, now could be the perfect time to secure a fixed-rate home loan, as the latest official cash rate decision has been retained at 2.5 per cent. This is translating into low interest rates, which can help you make savings on your repayments in the long term.

If you know anyone who would benefit from understanding more about the pros and cons of starting off modestly, versus buying a more expensive property, please feel free to pass on my details…or just give me a call. I am only too happy to help out.

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6 05.14 9:33

What does the latest RBA interest rate decision mean for YOU??

Most media outlets have already informed you about the RBA’s decision to keep the cash rate on hold…you can check out the statement from the Governor of the RBA here – http://www.rba.gov.au/media-releases/2014/mr-14-07.html

However, very few of these media groups dig any deeper than the headline announcement.

Here at Smartline, our aim is to let you know how each RBA decision impacts on YOUR mortgage and the choices that YOU can make.

The first point we can make about this latest decision is that the 2.50% cash rate is now into its 10th consecutive month. This is an unprecedented stretch at a record low rate. The ASX Futures market is predicting a lot more of the same (see below).

RBA - May 2014 1

In fact, the prediction is for 12 more months at 2.50%!!!

The following chart gives us a historical perspective. As you can see, the three year fixed rate is at a significantly low point.

RBA - May 2014 2


Whilst the average three year fixed rate on the above chart is 5.05% p.a. (for the major banks), one of our lenders is currently offering an incredibly low 4.69% p.a. 3 year fixed rate. Another non major is offering 4.89% p.a., 3 year fixed, with a 100% offset account.

As always, please give me a call if you would like a review of your finances…don’t be afraid to put me to work for you!!!

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