The introduction of mortgage broking has been a welcome addition to the services SFP provide in the changing lending market.
Due to the Royal Commission and shift in the Sydney property market, banks have continued to tighten lending which has made borrowing increasingly difficult and complex.
To combat this, we now have the ability to compare over 40 lenders and 100’s of loans so we can identify the right option for your individual needs.
As SFP’s dedicated mortgage broker, I’ll support you from the initial advice meeting to application stage to settlement (and anything in between!). At review time, I’ll able to attend your meeting for a complete loan review and answer any questions you may have.
- Our mortgage broking service allows us to assist you in the following areas:
- Guiding first home buyers buying their new home
- Pre-approvals for home and investment property purchase
- Refinancing for lower interest rates or continue an Interest Only loan
- Consolidation of debt to streamline repayments and free up cashflow
I look forward to meeting with you at review time and if you have any questions, please feel free to call or email me anytime on:
M. 0447 263 567
T. 02 9328 0876
E. leigh@sydneyfinancialplanning.com.au
In light of the recent RBA rates announcements, here are some quick facts to keep on hand;
- RBA official interest rate is 1.5%
- 1.5% has been in place for a record consecutive 29 times since August 2016
- 1960s was the last time interest rates were this low
- 1990 interest rates peaked at 17.50%
- Interest rates have steadily declined over the past 29 years
Although interest rates are at an all time low, borrowers are struggling to obtain finance due to increased lending restrictions brought on by several factors including tougher bank regulations and the fallout from the royal commission.
From a mortgage broking stand point, I’m seeing an increased number of clients servicing with non-branch banks and 2nd tier lenders over the big four due to the impact of tighter credit conditions.
In some instances, these clients have already been knocked back by their bank but with little understanding of alternative options available through other lenders, believe they’re unable to obtain property finance.
Sarah and James’s Story
Sarah and James, a young couple with a new born, have just been able to purchase their first home (2b unit) this month despite being originally knocked back by their Big 4 bank.
The loan was originally declined due to servicing as Sarah is currently on maternity leave for the next 6 months. As the couple had dropped 40% of household income, the bank recommended they re-apply once Sarah returns to work.
Sarah and James came to me to see if any other options were available. After speaking with several lender Business Developments Managers and reviewing policy guides, I was able to find a lender that would include Sarah’s salary. The lender required a letter from Sarah’s employer be obtained, stating that Sarah’s role was on hold and she would be returning to work in 6 months’ time. The loan product didn’t require a credit score which meant the previous decline would not form part of the loan assessment.
Pre-approval was obtained after 8 business days, their offer was accepted, and the clients now have their first home!
It’s not all about rates, but here’s some of our current lowest in each category:
Home - Basic variable P&I – 3.55%
Home – Variable P&I (with offset) – 3.63%
Investment – Variable P&I (with offset) – 3.63%
Investment – Variable, Interest Only – 4.09%
Home – Fixed 2 years P&I (with offset) - 3.69%
Home – Fixed 3 years P&I (with offset) - 3.69%
Investment – Fixed 2 years, Interest Only (with offset) – 3.99%
Investment – Fixed 3 years, Interest Only (with offset) – 3.99%
Is securing a loan for property something you need help with?
Contact us to find out how we can review your personal circumstances and assist you with the process from start to finish, either book a coffee meeting or call us to arrange an appointment on 02 4229 8533.
Article by Leigh Morris - Mortgage Broker | Director.
General Disclaimer: This article was originally published by The Sydney Morning Herald on 16 October 2018. It represents the views of the author only and does not necessarily reflect the views of AMP. This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.