Sterling Finance (WA) | Loan service

Sterling Finance (WA)

Phone: +61 411 967 954

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• Property
• Businesses
• Loan service
• Mortgage brokers
• Bank

24.01.2022 Great 25 min podcast on the importance of small business owners understanding financial management concepts.

22.01.2022 Get it in writing. These four words could be the simplest business tip you will ever read - but they could make an enormous difference to the way you do business. Find out why: https://bit.ly/3hU4C6I

12.01.2022 2 Great Webinars in September: Property Management Unravelled: 6pm (WST) Tues 15th Sept https://markhayrealtygroup.webinarninja.com//5923/register... How to run a productive Strata AGM: 6pm (WST) Wed 16th Sept https://markhayrealtygroup.webinarninja.com//4899/register

11.01.2022 The difference between 2 questions is the reason why great consumer outcomes means more loans are being done by Mortgage Brokers than ever before! What are the ...two questions? Why is asking the right one/s so important? Banks tend to answer the question Can you get the loan?, Mortgage Brokers go further answering How can you get the loan? It comes down to ‘thinking outside the box’ in order to achieve the requirements and objectives of the customer or client. If you ask Mortgage Brokers, which clients’ loans they enjoy the most, it is likely to result in the answer being ‘the most challenging ones’ or ‘the ones that make the biggest difference to the client’s well-being’. A few years ago, a Real Estate Agent referred a First Home Buyer client to me, who had already been to his existing bank for a pre-approval which was successful. However, the client’s circumstances changed in a number of ways, and subsequently the client’s bank indicated that the loan would be declined as a result. This client was now also outside his 28 day finance period and still desperately wanted the property that was accepted, with an initial deposit of $10,000 that had been paid within 7 days after acceptance. He still wanted to be committed to fulfilling the contract, without having the capacity to do so because the bank would not agree to provide the finance, so agreed for it to become a ‘cash sale’ so as not to lose the deal! A very dangerous thing to do. Naively, he thought that another bank would possibly do the loan, so agreed to see a mortgage broker suggested by the Real Estate Agent. So what happened? The client purchased a newly built $720,000 townhouse after his father had agreed to gift him $500,000 towards the purchase. Unfortunately, a few weeks after having the offer to purchase accepted, the father (a businessman) did not have/nor would have in the required time, the available funds originally pledged. The deposit to be gifted now available ended up being $300,000 and the remaining loan required was more than he could afford, according to the bank that preapproved him. Further, his fiance who was also working, had just changed jobs BUT had also changed careers, so we could not use her income to be able to increase the borrowing capacity to what was required, which would have been very handy. (Normally and at the time of the transaction, a first home buyer would enjoy both the First Home Owner’s Grant and the First Home Buyers Stamp Duty Exemption, which may have helped. However, due to the price point, he would not have been eligible for either.) So the only option, which was not suggested by the bank, was to change the purpose from buying as an owner occupier to an investor, obtain a tenant and put in place a lease for a period of 12 months that would allow the loan to be reduced to an acceptable level, with additional lump sum payments, and/or inclusion of the fiance’s income, which collectively would allow the borrowing capacity required for them to move back into the property as owner occupiers in approx twelve months time. The added rental income increased the borrowing capacity to a level that allowed the bank to be approve the loan and allow the purchase to occur with the change of purpose. The above loan was then formally approved at the same bank which had originally pre-approved, then subsequently was going to decline, because an alternative solutions was found that complied with the bank’s credit policy and allowed the transaction to be completed. Whilst the bank officer could not come up with this suggestion and solution and the mortgage broker didit is not rocket science. Mortgage brokers do this every day because they have access to 50+ lenders (with differing credit policies) and over 150+ products, and more importantly they think laterally for the best interests of their clients, without playing favourites with lenders. A happy Real Estate Agent and a very happy client. #findafairerdeal

02.01.2022 "Just because you can, doesn't mean you should." There has been many Covid-19 relief measures that you can tap into to relieve financial hardship during our current pandemic, and if you really need them, take them. However, like tax minimisation is at odds with maximising borrowing capacity, so too is invoking hardship measures to obtain financial relief with the ability to obtain credit. This is especially true when applying for finance to fund purchases and refinance to ob...tain better rates, lower fees or better loan product features. Under Responsible Lending provisions that banks are required to follow, is the overarching theme of not putting applicants into hardship. So if your demonstrating that you are experiencing any form of hardship eg variation of existing facilities, obtaining Jobkeeper, and/or early release of superannuation, then you are unlikely to be successful in obtaining finance. See more