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Q: My parents have a defaults and they want to guarantor for me. I qualify for FHOG. My deposit coming from my parents. I earn $1700 p/f before tax. I have a car loan but this is for my dad. Bought 3yrs ago $20k now owing $15k. Can I get a homeloan?
A: Based on this info, most likely no. After living expenses and loan commitments you would have little servicing to support a loan.
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Q: We have recently taken out a mortgage but have had to go with a loan that has a higher than average interest rate because of a small issue on my husbands credit file. Assuming we make payments early, how long until we can refinance at a lower rate?
A: Hi Michelle, firstly depends on the issues listed and dollar value of those issues.. with that information you can get a more exacting answer. regards Ariel
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Q: I am looking at selling my current PPR and buying a bigger PPR? This property is used as security for two investment properties. How should I go about it to avoid a bridging loan and paying LMI, or selling first & having to pay down the investment loans?
A: Hi, avoiding paying LMI will be down to actual price paid, and actual LVRs so i can't answer without more info. In regards to process though:
You could, with servicing met, just add the new purchase to the existing security pool then sell the old PPR and release.
Or depending on lender you are with just do a variation on your current loan and security substitution.
Cheers Ariel
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Q: Can you refinance an investment property loan without a salary/income? I have 2 investment properties with a combined value of about $1.4m and loan balance of $600k. They are positively geared (just). Have quit work to start a new venture so no salary
A: Hi Tim, the answer is yes potentially depending on the industry of your new business, your stage of planning and relevant experience/proof of concept. However as per other comments you may sacrifice rate because of the niche your in.. there is no circumstances where you could attract rates at the pointy end through a refinance.
You could potentially attract mid 4% rates if your ticking a number of the right boxes.
Regards Ariel
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Q: My wife and I are looking at a house & land package as an investment option. Which areas should we be looking at... Brisbane, Sunshine Coast, Melbourne or Adelaide?
A: Hi John, on occasion I've stepped in to assist clients with these exact questions and the answer is always the same. It comes down to what you are looking for? Ie High Growth, strong rental market, future owner occupied, price range etc
The safer options for house and land are generally the one's where they are in reasonably established area's rather than 100% new area's as there is pricing/rental history to judge performance on.
That being said there's some developers out there who pay some pretty hefty referral commissions on house and land package's. So if you decide where and what you want to buy I'm happy to 'refer' you on and do a split on any potential commissions.
Cheers Ariel 0433 132 331
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Q: I'm looking at setting up a trust to purchase real estate through, for the asset protection, tax benefits and to allow for estate planning without stamp duty transfer cost. What is the best way to set it up, and expected costs?
A: Through your accountant to ensure you have the right structure. Regards Ariel
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Q: What are your thoughts on the online real estate agents that offer flat rate fees instead of percentage of sale price. At first glance there appear to be massive savings, however what are the risks associated with these companies?
A: Hi Michael, any business has risks. It's down to what you want and if your engaging someone who can deliver. Regards Ariel
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Q: I'm looking at a 1 bedroom apartment for an investment, what percentage of the value will I be able to borrow? I don't see the benefit of it is too low to have the property negatively geared.
A: Hi John.
Location, apartment size, inclusions (ie full kitchen) and title type may limit LVR or completely exclude some lenders.
The general answer is up to 95% if everything adds up, narrowing right down to 65-70% potentially with a specialist lender paying above market interest rates. Regards Ariel
John Stevenson
8 years ago
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Q: when do i have to pay mortgage insurance?
A: Hi Joe, generally speaking once a loan is for over 80% of the property value.
There as many exceptions and differences depending on your situation, the lender and property type. But over 80% is the first place to start.
Cheers Ariel
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Q: Can I swap out of a fixed rate mortgage at Bank X and move to Bank Y at the same old fixed rate and therefore have the new bank effectively pay the old bank for the mark-to-market on the fix-rate break costs?
A: Hi Jason, the simple answer is no. The new lender may offer a rebate but if the fixed rate has any significant break costs its never going to equal out.
The exception to this could be loan size.. for a large enough loan.. maybe something could be negotiated. The question is why..
Regards Ariel
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Q: I am keen to use the equity in my home to invest - maybe real estate. Maybe another option. Does anyone have any firm advice on the available options at the moment?
A: Hi Jimmy, the only advice I would give is to seek personal financial advice from a planner. The lender and type of lending needed is set in part by the investment choice. Cheers Ariel
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Q: I just started my own business and want some some advice of when I need to get an ABN and register for GST
A: Hi Glen, you need to speak to an accountant. Regards Ariel
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Q: Is now a good time to be looking at a fixed rate, what are the pit falls of fixed rates?
A: Hi Jackson, always a good time to good. The pitfalls are the same as the benefits, the context changes depending on what your own goals/plans are.
Ie fixed rate guarantees payment and rate security for a period, but also means you dont get any rate cuts. Potential positive, or potential negative.
Regards Ariel
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Q: We want to use our Super to purchase Land and we don't have enough in Super, can we use what we have for a deposit?
A: No. Regards Ariel
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Q: I am a sole trader who's credit rating doesn't clear until the 2/11/17. I have a proven track record of payments of up to $451.61p/w and I need a work vehicle as soon as possible. Any potential lender available that may consider my case? Thank you.
A: Hi Cameron, potentially yes as its secured. Happy to discuss, Regards Ariel 0433132331
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Q: Can someone please advise the advantages doctors get with homeloan mortgages, and/or point me in the direction or a broker/financial advisor in Perth that specialises in doctor loans?
A: Hi Rhys, although I'm not based in Perth we have a large number of clients based there and a high proportion of doctors on our books. Happy to discuss, regards Ariel 0433132331
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Q: Will banks take my centrelinks payments into consideration as income ?
A: Yes, some lenders will. Happy to discuss. Ariel 0433132331
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Q: I got pre approved for a $420,000 home loan 6 months ago and now the bank say I can only borrow $390,000. If my situation is the same how can the bank change their mind like this?
A: Hi Jackson, others have answered your question. So the next step is looking at other lenders to see if they will support a higher borrowing capacity for you.
Regards Ariel
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Q: Coming from Europe, any chance to launch LIBOR linked mortgages in Australia?
A: Hi Daniel. I don't believe so, as the comparison rate serves this purpose in Australia.
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Q: I'm looking at buying a franchise, is it best to pay cash or obtain a business loan?
A: Hi Jon. I'll answer with a question, if you have cash why would you take a loan... no tax deduction or any other offset accounts for 100% of the expense?
Regards Ariel
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Q: If you have a variable home loan and interest rates increase, does your repayment amount stay the same and just the interest portion of the repayment amount increase?
A: Hi Bill, yes :)
Bill Vasiliadis
9 years ago
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Q: I have been searching the comparison websites for the cheapest home loan rate and found an online lender at 3.63%. Does that mean I can't use a mortgage broker to help me through the loan process ?
A: Hi Jon, firstly highly unlikely. We have our own ACL so are not restricted by lender as long as the lender wants a relationship, however these types are loans are available to vanilla clients online with mininal support (no broker).. essentially if want nothing in particular features and benefits wise and you fit a clean customer profile (80% lvr or under lend) then they can potentially suit... the particular deal i believe you are looking at comes with no offset yet charges a $375 annual fee.. so depending on your loan amount it could be possible to get a similar deal.. higher rate.. no annual fee that NET works out about the same with the help of a broker. Regards Ariel 0433 132 331
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Q: What types of facilities are available to borrow money to use for share trading/investing? Do I need to give property equity, or will the shares be sufficient as collateral? What is the cheapest option to ensure the greatest overall result back to me?
A: Hi John, from a broad lending view both are securities acceptable to lend against (shares outside of margin lending is more of a niche). Subject to individual lending policies. Like anything the cheapest option is not always the best option for your situation. I suggest you sit down and discuss in more detail with a professional you are comfortable with.
Regards Ariel
John Stevenson
9 years ago
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Q: How come when borrowing money using the equity in my property to invest in shares the interest rate is different to that of my home loan?
A: Hi Wayne, this is not always the case as it depends on the lender. APRA regulated lenders underwent a lot of changes last year, which resulted in tiered pricing as they need to hold more capital. Essentially they put up prices to make more money.
Regards Ariel
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Q: Does the term of my home loan always have to be 30 years? What if I want to put some pressure on myself to pay it back earlier?
A: Hi Jimmy, with some lenders yes it does. However if you have unlimited extra repayments which is broadly essentially every variable loan you can then pay it off as quickly as you want. Regards Ariel
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Q: I have two credit cards (both nearly maxed out), a personal loan and a home loan. Should I consolidate everything into my home loan to save on paying interest?
A: Hi Deejay. Homeloans are generally much cheaper interest rates so provided you have available equity (your loan is less than 80% of your property value) in your home this could be an option.
You could also potentially look at interest free balance transfers however this would leave you with a similar situation in 12 months.
Happy to run through your options with you, regards Ariel from Mortgage Advice 0433132331
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Q: We are not having much luck with the banks for the fit out of our cafe. A broker has mentioned a lender called Prospa - never heard of them so does anyone know much about them?
A: Hi Alan, they are a short term unsecured business lender. As opposed to a bank they do not charge interest rates but instead do factoring. For example you borrow 10k.. and how factoring works is they charge somewhere between say 1.1-1.4 x 10k, depending on risk etc. so you would repay 11-14k. Plus high fees and charges. There are no prizes for early repayment as with factoring the total repayable figure is a fixed amount advised at the point of loan offer. Loan terms are generally 3-6 months.
Now the important thing is that they lend against the strength of your business, so if your a brand new business or not trading then they will not assist.
If your an existing business thats not generating a profit.. probably cannot assist either.
It really depends on if your a new business or not, and your personal financial position however if you have an existing residential option there is a commercial option through a major lender that for the right application/applicant that will lend up to 100% of the property value and a portion of your business start up costs.
Happy to discuss, regards Ariel 0433132331
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Q: How much of a deposit do I need for a home loan in Sydney for a property around 650k to 700k?
A: Hi Effie, some great answers already given.. however the deposit amount needed would also be effected by the type of property. Generally the answer is 5% minimum plus costs.. however if it's a restricted postcode/high density, with the wrong lender it could be 30% + costs.
Happy to chat,
Regards Ariel from Mortgage Advice 0433132331
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Q: Where is the best place to keep my cash if I don't want to invest it? Is it worth moving it around to higher interest accounts regularly?
A: Hi, I'm not licensed to give you advise on this so I won't, however I will ask you a question instead.
A quick point first. High interest accounts are still effectively an investment as the deposit taker invests your money.. hence the return. The differing factor is the level of risk associated with this as opposed to something seen as a more traditional investment vehicle. My question is have you discussed with a financial planner your risk tolerance?
Regards Ariel
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Q: I would like to buy my first property in the next few years. Should I aim for a 10 or 20% deposit?
A: Hi Marc, you should aim for as much as you can possibly save with 10% plus costs ideally the minimum. Any mortgages by and largecwith under a 20% deposit plus cost incur extra expenses such as lenders mortgage insurance.
Regards Ariel
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Q: I have a property and need to build on it a house in the future, if i needto borrow money from the bank when the repayment has to start, is it after finishing the construction an what normaly happen do they give the money to me or I gove them the invoice?
A: Hi Sam, the lender will always control the funds in step by step progress payments as milestones are met. You pay interest on any drawn funds... so as the builder gets paid you accure repayable debt.
Regards Ariel
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Q: Why do lenders who offer debtor finance only fund a certain percentage of invoices from a single customer, even though that customer may be a blue chip company, with very low risk of default? Is there a way to demonstrate that this risk is very low?
A: Hi Nathan, with any lending there is risk attached to higher percentages which would be modelled in a general sense by the applicable lender upon entry to the market and not per client, although they may have tiers. It also doesn't allow for a margin for error and potentially coverage for the lender fees.
Regardless most debtor financing goes to 70-80%, so I'm assuming your querying if anyone will go 80-100%. The answer is yes, there are lenders who will go to 100%.
Regards Ariel
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Q: How can I find out what mortgage insurance will cost for different lending ratios above 80%?
A: Hi Alison. It is literally quoted per percentage with considerations around the lending/property figures and changes per lender. There is no way as consumer you can work it out.
Feel free to give me a call, happy to run the numbers for you. Regards Ariel from mortgage advice
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Q: If the RBA doesn't move rates how can the banks. Would now be a good time to go for a fixed rate?
A: Hi Jacob, the RBA rate is the cash rate. The banks raise capital to lend in a number of ways, some being cheaper. (deposits), some more expensive (bonds) and the cost of these funds is how they work out their rates.
The lenders themselves are effected by the RBA rate as it raises or lowers their funding costs but in no way does it control them. Their requirements on how much cash they need to hold also recently increased, so there is some revenue raising going on as well.
A fixed rate controls your risk, it is always a good idea to consider it an option. The deciding factor is more depending on your needs and short term plans.
Happy to discuss. Regards Ariel
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Q: When my fixed rate loan period ends - do I just automatically switch back to variable with the same lender without having to bother with paperwork etc?
A: Yes, however its not normally the nice attractive rate you see advertised. beware :)
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Q: Which banks can offer 95% plus mortgage insurance? Looking for a home, thanks
A: Hi Jo, well the first is to say some lenders offer this. Around how they offer this changes, and to who are not everyone is eligible for each lenders policy
Happy to discuss, Regards Ariel
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Q: Is there a lender out there who will lend on lvr up to 70% with low short term income? I have high asset but 2 to 3 income flow will be low so can't get loan value to that ratio.
A: Hi John, yes. I believe I know of a number of options if you would like to discuss Regards Ariel
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Q: What's the difference between wholesale & personal superannuation funds?
A: The management structure of the fund/investment. Wholesale has a regulated structure that is very mapped out.
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Q: Hi We wish to refinance home loan & credit cards. Is there any IO home loans available for more than 80%LVR without mortgage insurance? Would like a split loan. Also are banks now doing valuations online instead of a physical valuation? Thanks
A: Hi Leanne, yes to 80% I/O without mortgage insurance.... some lenders will do 85%.. but the rate will suffer...there are 90% options in the market with no insurance but then they charge a risk fee which adds up to the same.. a number of lenders will accept their own online valuations at 80% and one i know of up to b 90% LVR.
Happy to discuss
Regards Ariel
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Q: Can I use some of my super towards my deposit?
A: Hi Pru. No. The first point you can access a portion of any super and it is very much subject to conditions is 55. Thats barring a medical reasons (under super laws).
Great point Stuart. Very much subject to conditions. I only recently helped a borrower who was able to access a 10% TTR income stream which served as his deposit. However he met his release conditions for this.
Regards Ariel
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Q: How do I get a low rate home loan?
A: Hi Ugar. Give me a call. It's the easiest way I know. Regards Ariel
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Q: If I move out of my home and rent it do I need to refinance with an investor loan or can I keep the mortgage I currently have?
A: Hi Jonah, unofficially I've been advised by a number of lenders that in this situation how would they know if its investment or not. Either wayits not a re-finance its a loan variation. the difference is that they is no full loan application.
That being said, yes you are meant to let them know and there could be a negative outcome in the future if you didn't and they found out.
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Q: What's the best way to consolidate $31k credit cards no equity available but have a $20k car unfinaned?
A: Hi Leanne, a 12 interest free period on a new credit card balance transfer deal. Close the old cards and pay it down as quickly as possible. Regards Ariel
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Q: Looking for a 85% LVR I/O investment loan with LMI waived? Are they available for NON PROFESSIONALS?
A: Yes, there are on occasion. I believe there are 2 lenders who offer this at present. Happy to assist. Regards Ariel
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Q: URGENT! It seems Section 32's (legal paperwork for sale of property) don't include a copy of Title anymore? The only similar document which is included is a Planning Subdivision ducument. Is this usual now? Can anyone enlighten us please.
A: I would believe the property you are purchasing isn't registered. So no title as yet.
Essentially it used to be part of a larger block.
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Q: Hi what is the best most cost effective way to remove a person from a mortgage? Currently joint tenants but wish to pay out ex an agreed amount and hold onto the property? I understand there is stamp duty payable to completely remove them from the mortgage
A: Hi Leanne, you would need to be re-assessed by thr lender to ensure your affordability meets the loan amount and engage a solicitor. This is more of a legal question for a conveyancer as they would calculate any cost. Regards Ariel
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Q: If I borrowed 93% on a property purchase of 830k what would mortgage insurance cost and can it be capitalised?
A: Hi Bill. It changes massively per lender. Happy to do a quote, Regards Ariel
Bill Vasiliadis
9 years ago
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Q: When you get pre-approval from a lender, how long is this usually valid for?
A: 90 days, however they will advise on the approval letter
Bill Vasiliadis
9 years ago
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Q: Is cross-collateralization good or bad? e.g If I go with cross-collateralization, one of the bank is offering me consolidation of 4 of my loans which are currently with 3 banks and at a better rate. Should I take that offer?
A: Hi Shireesh, if all the loans are cross secured or individually held with the same lender it makes little difference as long as you have the splits structured correctly for taxation purposes.
There is a little known clause in the background meaning essentially that a lender can take from one account to pay off another debt you hold with them .. so the myth that seperate title with the same lender somehow protects one property in case of a default on another property is wrong... its more a matter of timing.
I think you should review what rates they are offering as a lender will never give you the cheapest deal in the market.. and not even the cheapest they can do all the time.. happy to discuss.
Regards Ariel
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Q: How does a guarantor home loan work? We have a 10% deposit which needs to include costs for stamp duty, expenses, etc. This is not quite enough and we are interested in the guarantor option.
A: Hi Bill. There is a few ways. Generally it means there is a cross secured additional loan.. so it is against your property and the guarator. The whole deal would have to under 80% LVR.. there can be no mortgage insurance.
I can assist you with a 5% deposit lend potentially. Happy to discuss. Regards Ariel
Bill Vasiliadis
9 years ago
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Q: We have had a few issues that have affected our credit rating but things have turned around and we now have around 20% deposit for a new home. Will our credit rating stop us from getting a new loan and what options do we have?
A: Hi Robyn, no this won't stop you. It will effect the interest rate depending on what the credit issues were. Feel free to contact me to discuss.
Regards Ariel
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Q: What lenders cap LMI above 95% for Owner Occupier, other than BoQ to 99%, Bankwest to 98%?
A: Auswide will do 95% plus full LMI for first home buyers. They don't need to be buying a fhog eligible property, they just need to in theory be eligible for it.
Also in the alternative space. Liberty
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Q: I want to open my own cafe but would need to borrow the money for the fit out. Is it possible?
A: Hi Alan, yes in thoery. Like any loan you need security, if you have a property and prior experience in hospitality I can potentially arrange up to 100% of your property value plus addition funds held against the start up business through commercial lending, I suggest we have a chat as this is something I could assist with.
You would need a business a business plan.
Regards Ariel
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Q: Should I stick to an interest only loan for an investment property?
A: Hi Adrian. Generally the key factor is do you have owner occupied debt. If so, then from a tax view you would focus on paying off the O/O debt first. So in this situation I/O on an investment loan would potentially make sense.
I/O loans are currently penalised by some lenders being at a higher rate. I suggest looking at your options.
Regards Ariel
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Q: I took out an investment loan in 2011 and soon after moved in 2012, I recently realized that my loan type did not change to home owner loan, so therefore I have been paying a higher interest rate, am I entitled to a rebate or refund for the past 4 years ?
A: Hi Theo, from 2012-late 2015 there was generally no difference in investment / owner occupied rates. There is always different rates with different products with the same lender, so you could have been paying more than newer offers with the same lender. This wouldn't entitle you to a refund.
I would suggest we review your loan now and get you a rate your happy with. Regards Ariel
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Q: I am 67.. Can I still change from my current lender to another lender and still have 20 years to payback the loan Thanks ?
A: Hi Chris, it is significantly harder at 67 however it is still possible depending on your financial situation.
Happy to discuss, regards Ariel
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Q: I am selling a business, is there an effective way to minimise capital gains tax?
A: Hi Peter, the simple answer is yes. However that comes down to how you structured your business to begin with. Speak to your account or find a good one (happy to refer you one).
Regards Ariel
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Q: Are smsf a good investment?
A: Hi Craig, there isnt a yes or no to that. The good or bad investment is what you do with the SMSF.
Happy to put you in touch with financial planners if you wish to discuss. Regards Ariel
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Q: I work full time as a floorsanderer and want to buy a houseboat to rent out. I have a 50k caravan that I could sell for a deposit & about 10-20k in savings. I need about 250k all up for the boat. No house as security. Can any1 help? I expect 50k+ income
A: Hi Adrian, a tricky one. The answer is potentially, without going in to more detail about your situation its hard to say. The most relevant point is for you to realise that it may be a 20% return minus costs on the boat however any lender that may take it on wouldn't be cheap either... so it may not be as profitable as you think. Happy to discuss.
Regards Ariel
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Q: Would you recommend sticking with the majors or is it safe to go with a second tier lender? I was stung in the GFC
A: Hi Ron, without knowing the context of what you mean by stung I really dont think it matters except in the terms of the actual loan offering. ie which lender has the best features and rates to suit your needs.
If you have genuine concerns, just for your peace of mind I would steer you to any APRA regulated lender as they are in essence, at least presently, more controlled in their behaviour.
Regards Ariel
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Q: My Home Loan has been on a fixed interest rate since I obtained it nearly 2yrs ago. This is due to expire in August and I need to decide to either remain on fixed or go to variable?
A: Hi Glenn, there is no simple answer as it depends firstly on if you plan on making any substantial changes in the next two years as that could be a reason to go variable. That being said you need to wait till closer to august to make any decisions as current offers could change by then... however currently the 3yr fixed rates through a lot of lenders are far superior in offering to variable. regards Ariel
