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How well do you know your finance jargon? Take our quiz!
The finance industry has a bunch of acronyms and abbreviations that can make the home buying process a little confusing. But they’re not as difficult to understand as you might think. Take o ...
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Freedom to move: stamp duty reforms gain momentum
Stamp duty: two of the most dreaded words in the world of property and finance. Fortunately, NSW and Victoria have unveiled some big changes to the inefficient tax this week, and there’s hop ...
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8 ideas to improve your business’s cash flow over the festive season
The festive season is fast approaching and this year, more than ever, it’s important for businesses to ensure they have their cash flow management in order. Here are our top 8 ideas to help ...
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Want to know how much your neighbours paid for their first homes?
First home buyers wanting to crack into the property market can now use an interactive map to see how much their neighbours spent on average for their first home.
Snoopy snoop! Everyone loves having ...
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Australia is building the biggest houses in the world once again
We dream big in Australia. So it’s little surprise that when the Great Australian Dream becomes a reality it means bigger houses than anywhere else in the world, according to a new report.
...
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Switch lenders if rate cut is not passed on: RBA
Mortgage holders and business operators are being encouraged by the RBA to switch lenders if their bank doesn’t pass on the latest cash rate cut.
The Reserve Bank of Australia (RBA) deliver ...
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RBA trims cash rate to new record low 0.10%
If you didn’t back a winner on Melbourne Cup Day then fret not: the Reserve Bank of Australia (RBA) has delivered mortgage holders a win by cutting the official cash rate by 15 basis point ...
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Flow of credit to small businesses remains strong
Small business owners in need of credit will be buoyed by new data that shows the approval rate for loans has remained strong throughout the Coronavirus crisis.
In fact, about 70% of SME business loa ...
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Housing market confidence ‘booms’, cash rate cut expected
Consumer sentiment is surging, confidence in the housing market is booming, and the number of experts tipping a Melbourne Cup Day cash rate cut is increasing. Let’s look at why households an ...
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HomeBuilder sparks surge in home loans, new builds and renos
Thousands of families across the country who had been thinking about a new build, or tackling an overdue renovation project, have rolled up their sleeves and committed to it, according to latest ABS d ...
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Turbocharged instant asset write-off scheme unveiled
There was one big-ticket initiative in the federal budget that really caught our eye, and that was the turbocharged version of the instant asset write-off scheme. Today we’ll look at how it ...
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The First Home Loan Deposit Scheme is back; bigger and better!
The First Home Loan Deposit Scheme is back; bigger, better and more buyer-friendly than before. If you’re a first home buyer who missed out on the first two rounds, then here’s how ...
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Responsible lending laws to be axed: what that means for you
You might have recently heard that ‘responsible lending laws’ are set to be scrapped early next year. Rest assured though that you’ll still be able to borrow responsibly. ...
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House prices tipped to surge 15%, RBA hints at cash rate cut
Strap yourself in: Australian house prices are tipped to experience a mild COVID-19 dip before surging 15% over the following two years, according to some of the nation’s top economists.
An ...
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Is now a good time to buy property? Two-thirds of investors say ‘yes’
The majority of property investors are remaining upbeat despite COVID-19, with 67% believing now is a good time to invest in residential property, according to a new survey.
The 2020 PIPA Property In ...
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Lenders begin contacting borrowers who have deferred loans
If you’ve deferred your home or business loan then it’s likely your bank will reach out to you in the coming weeks. Here’s what to expect and what options are available t ...
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How to enter the property market with a $15,000 to $30,000 deposit
First home buyers are now breaking into the property market more than four years faster than they typically would thanks to a little-known government scheme. Today we’ll discuss how.&n ...
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More than a quarter of SME businesses knocked back for finance
As if small and medium-sized businesses weren’t already facing an uphill battle this year; now it turns out that more than a quarter were knocked back when they applied for finance in recent ...
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There’s a good chance you have a lazy $6k lying around your home
Whether you’re looking for extra cash to purchase a property, or could do with a few thousand dollars to pay off your existing mortgage, the average Aussie household could make nearly $6,000 ...
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Where you’re most likely to score a $50,000 discount on property right now
Home sellers across the country are lowering their price expectations in droves, new data reveals. But which two capital cities have seen the highest percentage of sellers discount their asking price? ...
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3 questions SME owners should ask themselves before JobKeeper 2.0
Jobkeeper is due for a big shake-up next month, which means if you've been relying on it to get your business through these rocky times, you need to start planning ahead now.
With the small business ...
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Applications now open for $25,000 HomeBuilder grant in all states
It’s been two months since HomeBuilder was first announced, and I’m sure many of us spent a bit of that time dreaming about an extra $25,000 to spend on a reno or new home. The goo ...
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Property ranked as ‘best investment option right now’ by experts: survey
You've heard the saying 'safe as houses', right? Well, it seems that the old adage may ring true even in the current pandemic, with many of the nation's top economic experts saying that's where that'd ...
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The top ten Australian suburbs to buy in post-COVID-19
We're all looking forward to things eventually getting back to normal, or at least the "new normal". And while it's not clear exactly what the "new normal" will look in the propert ...
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Coronavirus SME Guarantee Scheme is being expanded
If you're a small or medium-sized business owner in need of an affordable loan then we've got good news: The Federal government is expanding the Coronavirus SME guarantee scheme to allow businesses to ...
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Homeowners refinancing in record-high numbers: explore your options
Homeowners in record-high numbers are taking advantage of reduced interest rates and competitive refinancing offers. Are you ready to take the leap?
When times are tough, the belt gets tigh ...
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$1 lenders mortgage insurance for eligible first home buyers
You've probably heard something along the lines of 'You need a 20% deposit to buy a home', right? Well, not necessarily. Today we'll look at two options available to eligible first home buyers, includ ...
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Loan deferrals to be extended for customers who need extra breathing space
Home and business owners struggling financially due to COVID-19 will be given another four months to resume paying back their loans.
Extended loan deferrals will be provided to those who genuinely ne ...
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Why you should care about the new ‘Open Banking’ era
'Open banking' is now officially upon us. But what does that mean and why should you care? Well, in a nutshell, it'll be easier and quicker for you to get a better deal on banking products going forwa ...
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Want to buy your first home with a 5% deposit and save up to $10,000???
On your marks, get set go! The race is on for limited spots in the Federal government's First Home Loan Deposit Scheme which kicked off again on July 1.
The scheme allows eligible First home buyers w ...
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Last chance for $150,000 instant asset write-off this financial year
Keen to buy a vehicle or another asset for your business and immediately write off the cost? You've got a few days left to take advantage of the $150,000 instant asset write-off for this financial yea ...
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Final touches on $25,000 HomeBuilder scheme announced
The "crucial final touches" on the Federal government's $25,000 HomeBuilder Scheme have been revealed. Will you build be eligible?
When the Federal government announced its $25,000 HomeBuil ...
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Best Aussie suburbs to find a “renovator’s dream”
Most of us have at one time dreamed of discovering a hidden little gem and renovating it into the most enviable house on the street. With the $25,000 HomeBuilder grant, those dreams are closer to beco ...
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You might be closer to your first home deposit than you think
You've probably heard the Federal government is giving $25,000 grants to eligible Australian looking to build or substantially renovate their homes. Today we'll look at what that means for First Home ...
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SMEs get instant asset write-off extension, but EOFY deadline looms
Great news for small business owners: The Federal government has extended the $150,000 Instant asset write-off to 31 December 2020, but you'll need to act asap if you want to make use of the scheme th ...
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So, who’s eligible for the $25,000 HomeBuilder scheme?
You might have heard that the Federal government will give eligible Australians $25,000 to build or substiantially renovate homes as part of the new HomeBuilder scheme. Today we'll look at who excatly ...
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4 Important upcoming business deadlines
Interested in a $10,000 Business grant? How about buying a much-needed asset and immediately writing off the cost? Here are four looming deadlines your business may need to start moving on asap.
We u ...
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First Home Loan Deposit Scheme reaches capacity (for now)
The 10,000 guarantees available via the new First Home Loan Deposit Scheme have been filled or reserved, but for those who missed out there’s a second chance coming soon in July. ...
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Goodbye Stamp duty?
The dreaded and controversial stamp duty tax could soon be a thing of the past, with calls for it to be abolished gaining momentum.
The property council of Australia is the latest body to add their v ...
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Relief for SMEs: tardy paying companies given final notice
Promising news for SMEs this week: Supply chain financing provider greensill has given late-paying companies formal notice that it will ditch them if they continue to extend their payment terms beyo ...
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Cash rate to remain at record-low level until 2023: experts
Here's a bit of welcome news for mortgage holders: Australia's record-low cash rate is likely to remain in place until 2023, according to leading economic and property experts.
In March, the Reserv ...
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Wait, the bank can do that!?
Every now and then a bank does something that bucks the trend and takes customers by surprise. Today we'll look at two cases that recently made national headlines and how you can reduce your chances o ...
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Making the most of the instant asset write-off before the EOFY deadline
Two months and counting (down). That’s how long your business has to make use of the $150,000 instant asset write-off before the end-of-financial-year June 30 deadline.
...
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Bank loyalty can cost existing borrowers: ACCC report
Loyalty is an admiral trait when it comes to our friends, family and loved ones. But if you’re extending that virtue to the banks, then there’s a good chance it’s costi ...
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Is now a good time to lock in a fixed rate?
With interest rates at record low levels, today we’ll look at a question that many are asking: Should I lock in a fixed rate home loan?
You may have recently received a call directly from ...
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4 ways we can make your life easier right now
You don’t need us to tell you how much the world has changed – there’s been no shortage of news bulletins updating you on that. So rather than telling you about more chan ...
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5 reasons it's a good time to refinance
Found yourself with extra time on your hands? Slightly worried about meeting your home repayments? Want to make use of those back-to-back rate cuts? While the world has changed significantly over th ...
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Further protections for businesses: loan deferral scheme extended
Here’s some promising news for big and small businesses alike: Six-month loan deferrals are now available to larger businesses on the condition that they don’t terminate leases o ...
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Need to pause your mortgage repayments? Here are the banks’ deferral policies
This is one article we hope you never have to read. But if COVID-19 has impacted your income to the point where you may need to pause your mortgage repayments, then we’ve broken down the b ...
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RBA cuts cash rate to record low 0.25% amid COVID-19 outbreak
The Reserve Bank of Australia (RBA) has cut the cash rate to a record low of 0.25% following an emergency meeting due to the impact the Coronavirus is having on the economy.
RBA Governor Philip Low ...
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The Coronavirus economic stimulus plan for SMEs explained
Small businesses all around the world are facing uncertain times. However, rather than shutting up shop until COVID-19 passes, the Federal government is hoping to stimulate SME spending through a ra ...
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RBA cuts cash rate to record low amid coronavirus concerns
The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new record low of 0.50% as the coronavirus outbreak impacts global financial markets.
RBA Govern ...
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Why are investors leaving the major banks in droves?
Australians have always had a regrettable relationship with the big 4 banks. Rarely do I hear consumers raving about the ‘amazing’ experience they had at their local branch or how ...
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2 Common Property Scenarios That You Need To Learn About
This week I had two meetings with clients, which each brought up a scenario that I am seeing again and again in my travels as a mortgage broker. I thought in this article that I would unpa ...
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2 Common Property Scenarios
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Why Auction Clearance rates are linked to property cycles
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What does the rafts of changes in finance markets mean for borrowers?
Yesterday the RBA reduced the cash rate for the 2nd month in a row, making the new rate 1%, the lowest we’ve seen in recorded history.
Since the announcement yesterday, many lenders have be ...
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Finance Market Update
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The biggest change in finance we’ve seen in three years
Two weeks ago the regulator of the finance industry (APRA) recommended changes to the current way in which lenders assess serviceability (you’re ability to pay down a loan). For our little i ...
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What's the better move? Buying your office inside or outside of super?
Right now is a great time to be purchasing commercial real estate. With residential property markets in Sydney and Melbourne flailing, investors are looking to commercial as an alternative investment ...
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Case Study: Successful renovation application but oh what a bumpy ride...
It’s a tough gig to be self-employed.
I know from the outside in people think it would be amazing to choose your own hours, deal with who you want and have control on where you want to take ...
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How House & Land packages are financed
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The most horrific commercial property experience and lessons learnt
I caught up with my parents last week, who are based in the Hornsby area – shout out to the Asquith Magpies! Talking to them about the residential property market, it was interesting to hear ...
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The only two reasons why you'd have an offset account
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How guarantor loans work, plus an alternative option to consider...
With the Sydney market cooling over the last few months, it seems that entry level prices are now at levels where first home buyers are once again interested in entering the market. Latest data from t ...
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My thoughts on the Royal Commission
I love super bowl Monday. It’s my little tradition I have with a few friends where we take the day off and enjoy American wings and beers whilst watching a game we don’t really und ...
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First Home Owners Grant Explained
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Finance predictions for 2019
Well here we are, another year is upon us and like every year, I am full of optimism and excitement for the year ahead. Now of course, this excitement only has a finite amount of life in it and I& ...
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2019 Finance Predictions
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Interest only loans still a viable option
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How commercial lenders look at servicing differently than residential providers
Since APRA imposed sweeping changes to the residential lending market in 2015, home loan approvals have dropped significantly. The ABS recently reported total home loan approvals have fallen by 13.6% ...
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Westpac forcing clients to sell commercial assets
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CBA Pulling Out of SMSF Lending
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Q: Looking to buy 6 units and the CBA has told me I can only get the loan under a Pty/Ltd or company trust. They wont lend to an individual for commercial residential loans?
Is this the same with all banks or just a CBA thing?
A: Hi Paul,
From the bank's perspective (albeit not CBA!) it shouldn't matter if you want to purchase these units in your individual name or a trust as you'll be on the line personally either way if you default.
The question should be, what is the main reason why you want to buy it in your individual name? I would suggest getting advice from an accountant on this but in the meantime, I've actually recently written an article on this subject which was published by the Australian Property Investor Magazine - http://www.apimagazine.com.au/property-investment/to-trust-or-not-to-trust-purchasing-property-in-your-individual-name-vs-via-a-trust-structure.
Moving forward, if you want to have a deeper chat about this, give me a call.
Tim Russell
Call: ✆ (0400) 530 868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au
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How to finance multiple investment properties in today’s market
The other week, I came across an article which confirmed a suspicion I've had about what many investors may be going through with their home loans right now…Written by business reporter Ste ...
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Is it better to purchase a property in your individual name or via a trust structure?
When it comes to property investing sometimes I think we can complicate things a bit. I often hear investors get really focused on buzz words like negative gearing, depreciation, yields and purchasing ...
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Why commercial loans can be a better option than residential
The past couple of weeks have seen further changes to the major bank’s product lines off the back of increased scrutiny they’ve been exposed to via the royal commission.
Last week ...
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What should you do? Buy a place to live or purchase an investment property?
It’s a conundrum that many people face right now, particularly with the property boom we’ve seen in Sydney & Melbourne over the past 5 years. That is, the decision to focus ...
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How to win the serviceability game
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The 3 finance factors that will make or break a development
The May CoreLogic Home Index values came out last week noting the 8th consecutive month-on-month fall in proeprty values nationally since the market peaked in Septebmer last year.So if it wasn&rsq ...
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The only time interest only repayments make sense - Tim Russell Multipart Finance
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What is the worst term in finance
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How to buy property through your super
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Should you own or lease your office space?
Every business goes through natural cycles. The start is the most stressful time where money is flying out the door and there’s not much coming back in! Eventually though, things st ...
answered
Q: Hi, we are looking for more room and a bigger yard for the kids so taking the plunge and looking at Suburbs around Turramurra. Would anyone recommend a Real estate agent we could start talking to?
A: Hi Helen,
David Walker is a close friend of mine and director of both Ray White Turramurra and Wahroonga. He is in my opinion the most well regarded and established agent in the area and you wouldn't go wrong connecting with him.
(m) 0414 184 911
(e) david.walker@raywhite.com
Kind regards,
Tim Russell
Multipart Finance
(m)0400 430 868
(e) tim@multipartfinance.com.au
answered
Q: Is it possible to apply for a commercial loan when investing in a block of 6-8 units (residential tenancy, units registered together as one). I understand there would be a lower LVR in this scenario but just wondering if this is possible.
Would a commercial loan take into consideration my own serviceability from my own personal income?
Thanks.
A: Hi PM,
The answer is yes. Based on the fact that you've mentioned 'commercial' I'm sure you've discovered that the max number of units a resi lender would take on one title is four.
What a commercial lender will do when valuing the unit block is give you an 'all in one line' valuation. This means that the value will be based on if they had to sell the whole block at once. If that was the case, the average punter wouldn't be able to buy the whole block, only really developers could so your market would be limited, hence you'd get a lower valuation using the 'all in one line method.'
In saying that though, most commercial banks would still be happy to fund it.
Yes, a commercial lender would factor in your own personal income. In a best case world, their general rule of thumb is that rental income from the block should equal one and a half times the loan repayments. If it failed to achieve that, they'd then look at your personal income as a way to mitigate their risk.
Hope that helps, if you want to talk further, feel free to get in contact.
Kind regards,
Tim Russell
Multipart Finance
(m) 0400 530 868
(e) tim@multipartfinance.com.au
(w) www.mulitpartfinance.com.au
answered
Q: Hi, there’s a property in Glebe I’m thinking of buying …….. it is a townhouse with a commercial zoning and a business operating on ground floor…I would live upstairs. My question is what percentage of the purchase price could I borrow?
A: Hi Chris,
For a mixed use security, banks wouldn't allow more than 80% LVR on the purchase price.
If you want to have a chat about this further, feel free to get in contact.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: My partner and I are separating but I would like to try and keep the home. The property is valued at $1.3m and we currently owe $290k. We have agreed on a settlement amount of $700,000 and I would like to see if I can increase the loan to $1M. I have stable employment and earn $270k p.a. There are no other debts, no children and I could rent out the spare room for $110pw. Is this possible?
A: Hi Pete,
Having gone through a divorce myself, I understand what you're going through.
There's enough equity and income to pay out your ex and you keep the loan.
For a bank to process the proposal though, you will need to also have finalised Consent Orders to enable to bank to allow that sort of 'cash out.'
Happy to help if you'd like to discuss this further.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: hi, i am a first home buyer and looking at a home for $335,000… what’s the minimum deposit I need?
A: Hi Trish,
I'm not sure what your personal circumstances so can't confirm things like serviceability. But provided you get both the $10K FHOG & stamp duty concession, you could secure that property for as little as $10,000.
However, for loans >90% you need to show at least 5% genuine savings so the reality is you'd need at least $16,750.
Let me know if you want to talk further.
Kind regards,
Tim Russell
0400 530 868
answered
Q: We are looking to spend about $100,000 on renovating our home. We think it worth about $750k and we owe about $300,000. I have had a lot of experience as a project manager and instead of contacting a builder we want to project manage the renovations and the tradies ourselves. Will that impact our ability to borrow the money for the renovations?
A: Hi Martin,
Not necessarily, but you just need to make sure you talk to the right lender, in the right way.
There are two ways banks could look at what you're looking to do:
1. Construction loan. If you go to a bank and tell them you're going to be making significant structural changes to your property, the banks will classify this as a construction loan and will force you to have a fixed price building contract in place. As you know, these contracts have a builder's margin in them and you can't control funding.
2. Cash out loan. The other option is to obtain that money now, before you begin construction and tell the bank that the money will be for future personal use. This will allow you to access all the money and project manage the property from your end rather than a fixed price building contract.
The key here is choosing a lender who is comfortable with cash out and has a suitable policy to match.
If you want to discuss this further, feel free to get in contact.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: Hi,
I’ve been contracting for the same 3 business for 3 years and averaging around $130,000 a year. Will I need tax returns to obtain a home loan or will letters from the business owner be enough?
A: Hi Jamie,
I'm presuming you invoice to these three businesses via your A.B.N so are self employed. If I've got that correct, there's three paths you can take to get a home loan:
1. Provide your last two years tax returns.
2. Provide just your 2017 tax return.
3. A low doc option where you and your accountant self declare your income.
All three are achievable but there's a fair difference in interest rates with option 1 being the cheapest option and option 3 the most expensive.
If you want to discuss this further, feel free to get in contact with me.
Kind regards,
Tim Russell
*** ****
**@****
www.multipartfinance.com.au
answered
Q: Hi, I have an interest only loan for 840,000 on an investment property worth $1.2M… the rate is 4.85%. I spoke to the bank and they said if it was a principal and interest loan they would reduce it 3.99%. Is there really that much of a difference between interest only and P&I loan?
A: Hi Ali,
Yes there is a large difference but not by that much.
Most banks will do interest only investment loans for around 4.40%.
Switching to P&I will definitely get you a cheaper rate but for some investors, the increased repayment affects their cashflow.
As such if you don’t want to go to P&I there are better offers out for interest only loans
Feel free to get in contact if you want to talk further.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
answered
Q: If I purchased an investment property as my first home can I still get the first home buyers grant?
A: Hi Jade,
The OSR says that you need to live in the property for a period of 6 months within the first year of purchasing it. As such, technically you could rent it out for 11 months, move in on the 12 months, stay 6 months and then rent it out again.
However, you can't get around the fact that at some stage you need to move into the property in order to get the grant.
If you want to chat about things a bit further, feel free to get in touch.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
answered
Q: Is it possible to transfer the equity I have in an investment property to our home…. our home is worth around $600,000 and we owe $265,000. We have an investment property worth $450,000 and the loan is $250,000.
If we look to refinance can borrow up to 80% on the investment property to repay the home loan?
A: Hi Timo,
Claiming a tax deduction on a loan is linked to the purpose of the funds, not what property the loan is secured against. As such, what you're looking to do probably won't work.
There is however a strategy called Debt Recycling which would allow you to achieve your desired result.
I've written an article about this which I think you would benefit from - https://www.multipartfinance.com.au/blog/what-is-debt-recycling-a-simple-strategy-that-produces-a-significant-outcome
Any questions, feel free to get in touch.
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
answered
Q: A friend suggested I invest my cash savings into my own SMSF to help with the purchase of an investment property? Is this wise and how can I get my cash back?
A: Hi Lucia,
Setting up an SMSF to purchase an investment property can be a great idea depending on a) setting up the fund correctly in the first place and b) choosing the right type of property.
People generally go down this route because they understand how property works more then they do with shares.
Being able to set one up very much depends how much you have in super right now because banks have lower LVRs and liquidity rules for SMSF loans.
I've actually written an article about this topic which you may find interesting - https://www.multipartfinance.com.au/blog/2017/10/5/how-to-buy-property-through-super
Kind regards,
Tim Russell
0400 530 868
tim@multipartfinance.com.au
www.multipartfinance.com.au
video
How to Determine Your Max Borrowing Capacity
question
Q: Really important to make sure your home loan aligns with your investment goals. Recent client of ours wanted to focus on paying down debt but was on interest only with an extremely high rate. Simply switching to P&I has saved him $4,394 p.a. Surely lunch is on him next time?
blog post
What is debt recycling? A simple strategy that produces a significant outcome
p
Debt recycling is a simple strategy that is underutilised by wealth creators. In this post, I want to explain how it works so you can consider if it’s something you might want to use for ...
blog post
The Valuation Game - How bank valuations work & 3 strategies you can use to get the best result
Valuations are the bugbear of my existence.An individual’s personal opinion on the value of a property can completely make or break someone’s finance application.This post will she ...
blog post
How to protect your commercial loan in a downward market
I had a question from a prospective client recently who asked, “Why do commercial banks usually only offer 3 year rolling terms as opposed to a 30-year term like a residential home loan?& ...
answered
Q: On a commercial loan is it possible the same margin or line fee above the BBSW for the first 3 years be negotiated to roll into the following 3 years. I’m concerned that if we’ve been offered a margin of 3% for the 3 years, the bank can then bump it up to 5% after the first 3 years. Can the same margin be included in the agreement for 3x3 year loan agreement?
A: Hi Alistair,
Just like a residential variable home loan, commercial lenders reserve the right to review and amend their loan agreements based on a combination of market conditions and you as a customer.
The first factor you can't do much about and the good news is depending on the overall risk level of your security there's not a huge difference with banks at the moment as it's a competitive market.
However, the second factor needs some consideration. The majors usually have their commercial facilities as rolling three year terms, which can sometimes be a big issue. For example, let's say you're self-employed and your revenue has dipped from what it was when you originally took out the loan. When it comes time for review, the bank may change the goal posts, as you're now a higher risk for them.
There are lenders out there who won't do this and will instead structure your loan term just like a resi lender would i.e. once it's been approved they'll leave you alone.
For some, having this comfort can be a bigger benefit then simply a lower rate.
Hope that helps.
Tim Russell
Call: ✆ (0400) 530-868
Email: ✉ tim@multipartfinance.com.au
Visit: ☛ https://multipartfinance.com.au
video
Commercial Finance in 2018
blog post
Three questions you need to ask before you refinance
The home loan market is constantly changing with new and attractive deals coming up all the time. Refinancing can help you secure a more competitive interest rate, access the equity in your home, add ...
answered
Q: Hi, same question as last year. The RBA hasn't made any changes for 12 months or more so do people expect there to be some movement in 2018 and is now a good time to consider fixed rate options?
A: Hi Jacob,
I've just done a blog post with my annual predictions for 2018. Link below:
https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/121/whats-ahead-for-commercial-finance-in-2018
Experts like AMP Capital's Head Economist Shane Oliver are expected rates to remain unchanged till the end of the year at the very earliest.
But when it comes to rates, experts are only really guessing. The only thing you need to ask yourself is, "If rates were to increase, would I be struggling?" If the answer is yes, then it's something you need to consider.
I've got a one minute video on this topic which I think you'll find useful - https://youtu.be/Io8pnNr_D48.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I’m looking to buy a property in Western Sydney with 40% deposit. The purchase price is $650,000 but it is a company title property include land and house. Are there any finance restrictions for company title properties?
A: Hi Ash,
In relation to company title properties, you're restricted in the amount of lenders that will finance those types of properties and max LVR is usually only 80%.
As such, if you've got a 40% deposit, you should be fine.
Only thing to consider is if you plan to sell the property one day. Many people in Sydney need their LVR >80% to secure the property so if you decide to sell you'll be restricted to dealing with only buyers who have a +20% deposit.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I feel as though I’d like to move away from the big 4 banks and would like to know what is the best 2 and 3 year fixed rate on investment property?
A: Hi Shaun,
First thing is, you've got to make sure you're fixing for the right reason. I've done a one minute video on this topic which I think you'd benefit from - https://youtu.be/Io8pnNr_D48.
In saying that, depending on your circumstances, for a 2 year fixed rate, I could get as low as 3.89%. For a 3 year fixed rate, you'd be looking at 3.99%.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Out shopping for furniture yesterday and we were asked if we wanted to use zipmoney to pay instead of our credit card. We said we never heard of them and asked who are they and what are the benefits. We ended up paying by credit card but had a look at their website. Has anyone used them?
A: Hey Nadine,
Zip money is essentially a credit card. What they do is advance you the money for your product with a 12 month interest free period.
If you don’t pay it off in that time though your rate will jump to 20%.
Obviously their business model is based on the fact that a chunk of their clients won’t be able to pay it off in that time.
Bottom line, if you’re good at managing cash flow, perhaps a good option. If not, I’d steer clear.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Hi, my wife and I have committed to paying an additional $300.00 a week off our home loan this year. Are we better to pay $300 every Monday or set up a direct debit for the 1st of each month for $1200?
A: Hi Craig,
When it comes making extra repayments, just make it simple and work it into however you manage your family budget.
If you guys think about things in weekly amounts, do weekly payments.
Alternatively if your bills are done on a monthly basis, I would set up the payment on the first of the month.
Whichever option you choose though, set it up as an auto debit so it's set and forget.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I am about to sell a property which will be able to pay off its loan, my current residence loan and one investment property, is it best to keep a mortgage on an investment property to be able to claim the tax or would it be better to have the investment fully paid off and keep the rent as PAYG income?
A: Hey Kaz,
Did I read currently that you have two properties, an owner occupied and an investment and your question was which property do you sell?
If that is correct, the simple answer is to sell the investment property and use residual funds to pay down the debt attached to your home loan.
For all of us, when it comes to wealth creation, the first step is to own your owner occupied property outright. Being debt free is a MASSIVE step towards a successful retirement.
I don't know what the numbers are but if the residual money from the sale of the investment property can be used to pay off your home loan then it is definaely something to think about.
If you want to go through things in more detail, my contacts are below.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: Hi, I’m looking to buying a house and I will obviously need to get a mortgage. I’d hope to not spend more than 500,000 on a house. I’d say I’d have a decent savings and should be ok for a deposit by time I’m ready, I work full time (135k pa). My issue is I’ve never borrowed/owed money before and lack a credit score of any sort. How do I go about making sure I’ll be able to get a mortgage easily, while not wanting to have fees for money I don’t really need to borrow?
A: Hi Jade,
This is one of the biggest misconceptions that people have when it comes to borrowing money. For some reason we've been trained to think that we need a credit card or car loan etc first in order to build up a credit history before we can apply for a home loan.
Maybe we were all brainwashed by the CBA dollarmites program when we were in primary school but the reality is banks only care about two things when it comes to borrowing money:
1. What is your deposit?
2. Do you have enough income to afford the repayments?
As long as you can answer those two questions, you'll have no issues borrowing money.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
answered
Q: I am about to pay off my unit so will be mortgage free. I will then be buying a house with my partner which will be for approx the same amount as the unit sale price. Is it possible to get a short term home loan so we can buy a house when we see it, then pay off the home loan once the unit sells? Is there any positives or negatives doing this?
A: Hey Ansopny,
There's actually three ways to do it and bridging is one of them.
I've actually written a blog post about this topic which is worth a read.
Check out the link below:
https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/124/all-you-need-to-know-about-bridging-finance
Moving forward, if you've got any questions don't hesitate to give me a call on 0400 530 868 or email tim@multipartfinance.com.au.
Kind regards,
Tim Russell
blog post
All you need to know about bridging finance
They say that purchasing your first property is the most stressful thing you’ll ever do. For those that have done it, I’m sure you’ll attest to this fact. However, in my ...
answered
Q: We live in North Western Sydney but both work at Mascot and thinking of renting our place and living in an apartment closer to work for 12 months for a change in lifestyle. When we discussed this with some friends they suggested we should change our home loan to interest only to maximise negative gearing. Is this good advice as when we called the bank they said our interest rate would increase by 0.20%?
A: Hey Kym,
Now that the market has both higher rates for interest only and investment loans, more thought needs to be given these days into what your ultimate strategy is for your property.
Most of my clients tell me that they want their investment property to assist in funding their retirement. To do this it means that the loan needs to be paid off one day.
For this reason, if making P&I payments doesn't hurt your budget, I'd stick with that as opposed to switching to interest only and copping a higher interest rate.
Let me know if you want to talk about this in further detail.
Kind regards,
Tim Russell
blog post
What's Ahead for Commercial Finance in 2018
Similar to Australia’s recent 4-0 Ashes victory, it’s fair to say looking back at 2017 that commercial property markets had a good run!
So what’s ahead in 2018? Well, it ...
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