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All Coast Home Loans & Finance

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24.01.2022 Hi All Firstly we are still see the Major Banks targeting the Home Loan Refinance Market with Cash Rebates of $1,250. Westpac Bank and their subsidiaries have further extended their offer until the end of February next year. However the minimum borrowing required is $250,000 and requires you to take out their Professional Package with an Annual Fee of $395 which means you need to also include a transaction account. $1,250 sounds great but you really do have to look at the off...er closely to see if the Interest Rate offered and the cost of the Annual Fee actually work to a give you the saving you’re after. ANZ Bank offer something similar however they the rebate is only $1,000 and is for First Home Buyers. Again they have a minimum loan amount however the offer is not limited to their Professional Package Home Loan Products with an Annual Fee. The NAB are offering something different whereby they are offering 350,000 Reward Points that can be redeemed for say $1,800 of Gift Cards from Bunnings or Harvey Norman or JB HiFi to name a few. Again there is a catch you have to qualify for a Rewards Credit Card with the NAB and take out a NAB transaction account. All of the above needs to be reviewed to ensure a Borrower is better off which is what a Finance Consultant like myself is here to do. Free Dollars and Reward Points may sound good in theory but you never get anything for free. Lastly Westpac and their subsidiaries have come out this week with an announcement that they are refunding $65 million to some its Customers who may not of received the correct Benefits under their Professional Package Home Loans. About 200,000 customers have been affected since 2010. Regards Greg Crellin - Finance Consultant

22.01.2022 The Reserve Bank has left the Cash Rate at 1.50%. It dropped to 1.5% Two Years Ago and has not been changed since. Economists are now saying we will not see any rise in Interest Rates until the middle of Next Year with a couple of Economists going as far as say we will still have this Low Rate until the end of Next Year. Yes the end of Next Year.

20.01.2022 Further to my post regarding SMSF Lending here is a copy of a what was said by a Financial Writer in the Media. It makes an Interesting read. Why did Westpac pull out of SMSF lending for properties? Once in a while a bank does something that is so logical, most of the commentators are wondering why they didn’t think of it before....Continue reading

13.01.2022 Hi All Hope you all survived the School Holidays. Following on from my last update before I went on leave the annual Plan Australia Conference was one of the best I had been too. It was held at Twin Waters Resort on the Sunshine Coast. It was fantastic to be inducted into the Hall of Fame. We stayed on afterwards for a family holiday at a unit opposite the beach at Alexandra Headland. One place I can recommend people visit is Australia Zoo on the Sunshine Coast. We ended up ...leaving after closing time with some of the staff. Thanks to our daughters love of animals. Interesting data released earlier in the week by ASIC (Australian Securities & Investments Commission) from their review of Interest Only Lending that was commenced in April. ASIC have come out saying that a Borrower is more likely to obtain an Interest Only through a Broker (Third Party Channel) then if they went straight to a lender. Personally I have not written an Interest Only Facility for some time for a customer. However the reason for the logic of ASIC is maybe that the Third Party Channel better understands the requirements of the Borrower. And let’s face it the Lender still has the final say if they are prepared to approve an Interest Only Loan Facility. Also if a Borrower takes out an Interest Only Loan Facility servicing requirements are tougher due to the fact that the Borrower has to be able to afford to repay the loan on a Principle & Interest basis over a shorter period than the actual loan term. For example a Borrower takes out a Home Loan with a 30 year loan term and they want Interest Only for the first 5 years. That means that the servicing requirements for the loan at the lenders Qualifying Interest Rate is assessed over 25 years and not 30 years. On another issue a lot of Lenders are tightening on their requirements for older borrowers (so borrowers north of 55). Loan Terms are being restricted to say 15 years and if a Borrower cannot afford to repay their loan over the shorter Loan Term a Borrower has to have a strong exit strategy with proof provided. A lot of Lenders will now not accept property downsizing or sale of a Business on retirement. An exit strategy can however be the sale of say an investment property that would clear the debt being taken out or the Borrower has sufficient Superannuation with evidence provided to clear the debt. Regards Greg Crellin - Finance Consultant

11.01.2022 Interesting report. To be honest Martin North has always been a person who will promote doom and gloom. All Lenders assess a Borrowers affordability at an Interest Rate that is higher then what a Borrower will be paying. Generally the Interest Rate difference is between 3% and 4% and we are looking at 0.10% increases. ING increased their Variable Interest Rates by 0.10% at the beginning of last week. Yes any increase in Interest Rates will not be liked as it will mean a change to someone's monthly budget however if a Borrower is paying say 3.89% and they see their Interest Rate increase to say 3.99% it is still no where near the Interest Rate used to confirm affordability at say 7.5% or 8%. If you are unsure of the impact of an Interest Rate rise now is the time to review your Home Loan.

09.01.2022 Received an Interesting email from St George Bank along with Westpac late on Friday afternoon. Westpac and therefore St George have decided to pull out of SMSF (Self Managed Superannuation Fund) Lending effective the end of this month. There are very few Lenders playing in this space now.