Best Interest test

Coming soon the 'Best Interest' Test

If you followed the Banking Royal Commission and the subsequent media reporting you will have heard about a new "Best Interest Duty" that is being introduced for the broking industry. 

Image: WAGstockLet's be clear on one thing though, for us what is in your best interest is also in our best interest as well; so while there is always the odd rogue (as there is in every industry unfortunately) most brokers already act in their clients best interest – if for no other reason than it is good for business.

What is best interest? 

There are a number of variables in the equation that need to be considered and questions to be asked, some of these are:

  • How long will the lender take to give an approval?
  • Are the borrowers eligible for the lenders loan offer?
  • What is the interest rate and other fees?
  • Features and Benefits?
  • Time for an approval

Read more…

Planning on buying a new asset for your business?

Now is the time to talk to your accountant and broker

Get your finances arranged with your overall tax planning

  • RFS carGet the structure that matches your cash flow
  • Get the best deal from a range of lenders
  • Keep your equipment separate from your mortgage finance so your existing lender does not tie them together
  • Keep the fuss to a minimum

Almost every business has, or should have, some type of equipment finance.

It may be as simple as the car that you use to run around town with, all the way through to manufacturing and transport equipment.  Read more…

Construction home loans

How to make your construction home loan painless

Building your home is stressful. Managing trades, selecting things, moving house, paying rent and interest, working with builders, managing progress payments with your bank. 

constructionWe can't help you with all of these, but we can help you with taking the lender stress away.

This is how the process usually works

You plan your new home, talk to builders, get council approval, sort your loan, get started. But after getting started is when it can get really frustrating with your loan, because you and the builder need to arrange for progress claims during the build. When you signed your building agreement you agreed to the builder being paid in 4 or 5 payments during construction.

When the lender gets the progress claim some will check the schedule of works to the contract, and then ask a valuer to go and do an inspection to ensure that the works have been done. Each of these inspections (up to 4) cost money and mean waiting until the valuer has gone out, taken their notes and photos, written their report, sent it to the lender. Waiting for the lender to read it all and then agree to process the payment.

Read more…

Negative interest rates

Banks paying off your home loan

Recently a Danish bank launched what is believed to be the first home loan with a negative interest rate – a 10 year fixed rate loan with a rate of minus 0.5%.

negative interest ratesThis means that every month when you make your repayment the banks tips in a little more. But is this a good thing?

Interest rates have a link to inflation – high rates often mean high inflation, low rates often mean low inflation. So, what of a negative rate; does this equal deflation?

When we buy property we tend to think that it will go up in value and that over time inflation and wage rises means that your loan commitment takes up less of your disposable income. But with deflation we potentially see property values falling, real wages declining, and your loan commitment eating into more of your income. None of us want to see that. Read more…

Reviewing your loans

Why now is a great time to review your loans

With the drop in interest rates, it's a great time to review your loan arrangements with Collins Hume's local lending specialist, David Seymour.

contractGiven the ever-changing landscape and regulatory changes for Owner Occupied, Interest Only and Investment lending, David can assist you to navigate through the jargon and provide you with several options that suit your personal needs.

Review and save
David will provide a complimentary service by reviewing your existing loan facilities and looking for ways to save you potentially thousands of dollars over the term of your loan. 

Read more…

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