Simon Allen in Canterbury, Victoria | Property

Simon Allen

Locality: Canterbury, Victoria

Phone: +61 439 841 539

Address: 59 Canterbury Road 3126 Canterbury, Victoria, VIC, Australia

Website: www.mortgagechoice.com.au/simon.allen

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25.01.2022 In line with stage 4 requirements, I will be working from home for the next 6 weeks. However, I will still be available for meetings via phone or Zoom. Just send me an instant message if you want to schedule a time.

25.01.2022 Afterpay - which allows you to split purchases into 4 payments - is hugely popular. However, borrowers need to know that having and using an Afterpay account does affect your borrowing capacity - in a similar way to having a credit card. This is because you are making a commitment to pay the regular instalments to Afterpay, meaning less money to repay a home loan.

20.01.2022 I often see clients who have a home loan and also use a savings account that is not offsetting their home loan. A savings account may not be the best place to get a good return on your money without taking any risk. Interest rates are very low - your savings may earn you 1.5% interest. This interest is taxable, which may reduce your after-tax return to around 1%. If you use your savings to pay down your home loan, you immediately save interest at the rate of your mortgage - maybe 3.5% - with no tax to pay. You can still usually access this money when required (using redraw) but you are earning a return that is 3.5x greater without taking any risk.

19.01.2022 Recent events are unprecedented and are unsettling for many people. Despite the shutdown, my office remains open and I am now able to conduct meetings via video (Skype, WhatsApp, Messenger etc). Just drop me a message if you have any queries or issues with your home loan, or are looking to restructure or reduce your monthly repayments.

19.01.2022 If anyone you know is facing financial hardship as a result of Covid-19, the Australian Banking Association has produced a summary of bank policies and procedures for applying for relief. The info provided covers both individuals and small businesses. https://www.ausbanking.org.au/campaigns/financial-hardship/

18.01.2022 As we enter tough economic times, there has been a surge of interest in refinancing. Refinancing means moving your home loan from one lender to another, usually to take advantage of lower interest rate offers. The lowest rate available at present is 2.19%. If you moved a $500,000 loan from a rate of 3.00% to 2.19%, monthly repayments would fall by $213. Check your current mortgage interest rate and see if it's worth considering refinancing?

17.01.2022 You may have heard about the government's new first home buyers scheme, which allows people to buy a home with only 5% saved. Well, demand has been extremely strong. The first two banks onboard with the programme - NAB and CBA - have both quickly exhausted their allocations. There are more banks joining and they will have their own allocations in coming months. Drop me an IM if you want to know more.

16.01.2022 I've not traditionally been a big fan of fixed-rate mortgages but the deals at the moment are worth considering. While variable rates start around 2.65%, fixed rates are now as low as 2.19%. Plus some lenders are offering a cashback for refinances.

16.01.2022 Almost every Australian has some of their finances invested in the stockmarket - whether through direct shareholdings or superannuation. In these turbulent times, it may be reassuring to know that stockmarkets often over-react to bad news. History has shown that once the market reaches its lowest point in the cycle, the rebound is typically significant and returns are excellent over the following years. We have no idea when the current market decline will reach its end-point but let's hope that history repeats itself with future returns.

13.01.2022 I'm seeing more clients who wish to fix their home loan interest rate than ever before. Why? Well, fixed rates are currently around 0.50% lower than variable rates (fixed rates start from 2.09%) and some lenders are offering cashback of up to $3000 on top of these great rates. So, if you're paying, let's say, 3% on your home loan, it's worth considering fixing at a lower rate and getting a cash rebate at the same time. There are restrictions with fixing, so make sure you speak to me first!

11.01.2022 While the current situation is pretty tough in Australia, is there anywhere in the world you’d rather be at this time? Low rates of virus spread; low mortality rates from those infected; outstanding healthcare for all; significant government economic stimulus; widespread testing for those that need it. While NZ has also done an outstanding job, the contrast with Europe and the USA is fairly stark.

07.01.2022 One of the pieces of info I need to gather from new clients is their credit card limit. Clients often respond that they pay-off the card in full month and are surprised when I tell them that while this is a good approach, it is nevertheless the total limit that affects home loan borrowing capacity. Why? Well, from a lender's point-of-view, the day after they approve your mortgage, you could spend on your credit card right up to your limit of, let's say, $10,000. This money then has to be repaid. Most banks attribute a factor of 3.8% to credit card limits - that is, if you have a $10,000 limit, it is "charged" to your borrowing capacity at $380/month.

04.01.2022 These are tough times for many people. Even those who have kept their jobs may be seeing a reduction in overtime or working hours. For many households, their home loan is one of their largest monthly outgoings. If your variable rate is more than 3.00%, you should ask your lender to reduce your rate. If they don't agree to do this, then you can consider refinancing (provided that your current income remains sufficient to meet borrowing requirements). Variable rates start fro around 2.65% and fixed rates are as low as 2.19%. Plus, some lenders are offering a cashback incentive to move to them, which more than covers the costs of moving. Check your interest rate and feel free to contact me for advice.