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Why is it so hard to get a home loan? 27 May 2020   It is a sign of the times that lenders are digging much deeper into your financial situation than they have in the past. Even pre-covid, but post Royal Commission, the banks had started to implement...

It is a sign of the times that lenders are digging much deeper into your financial situation than they have in the past.   Even pre-Covid, but post Royal Commission, the banks had started to implement stricter lending guidelines. No one wants to be the headline of a news story. Consumers are much savvier with knowing their rights and accessing legal assistance when it comes to being ‘ripped off’ by the banks.   The finance industry took a big hit, especially Finance Brokers. We were made out to be money hungry vultures preying on the naivety of our clients. Charging exorbitant commissions and getting paid monthly trail for a loan that we did nothing for. ☹   Fortunately, clients were much more clever. They understood the need for someone to work in their best interest and deliver options and cost savings, where a bank would not consider offering.   Part of working in your best interest involves doing the research needed prior to applying for a loan. “They are not all the same” With so many banks, lenders, mortgage managers, finance companies and in turn products; how could you be expected to navigate this minefield of compliance and policies?   The list of mandatory paperwork itself is daunting. Each lender has its own requirements and at times, the broker will supply everything they believe is needed and then receive a notification down the track asking for updated payslips or even, during Covid-19, proof before settlement that the client is still employed! Policies like this can change daily.   Yes, it does seem harder to get a loan. Especially, when other generations of borrowers are regaling their stories of how easy it was back in the day. “Just needed to supply a payslip and show I had a deposit.” The sad part is, that if these consumers tried to get a loan today, they probably wouldn’t qualify! Be patient! You will need a deposit, you will need to save for your fees, you will need to supply lots of paperwork and show your savings account transactions to prove your living expenses, but you can be assured that if you qualify for a loan – you will actually be able to afford it.

Have you ever wondered how the bank does your home valuation?07 Nov 2016Even though the RBA did not change the cash rate, it is still a great time to review your own finances.  This also includes doing some price comparisons with your home, car, landlord and health insurance...

Even though the RBA did not change the cash rate, it is still a great time to review your own finances.  This also includes doing some price comparisons with your home, car, landlord and health insurance as well.  These type of monthly commitments can be mistakenly overlooked.  We tend to ‘set and forget’.  We only really think about it when we are planning our annual budget, and most of us don’t even do that!There are many internet based sites that will do a comparison for you, but sometimes just picking up the phone and speaking to a broker will be just as good.  We can guarantee that the experience will be much more personal.On another note, have you ever wondered how the bank does your home valuation?  When you first discuss finance with your broker they will mention the need to have a valuation performed on your home.  This also applies to a new property being purchased.  The great thing about working with a Diversifi broker is that we have access to an ‘upfront’ valuation.  That means that before even lodging your loan application we can request a free appraisal of your home by the bank.  This will give all of us a better understanding as to how much equity you actually have available.  In the case of purchasing it will give you and the bank confidence that you are buying at a good price.  The valuation process can take order clonazepam canada different forms.  The most common is a full valuation, whereby a valuer appointed by the bank will contact you and arrange a time to come to your home and do a full inspection.  Depending on the loan to value ratio (LVR) of your loan, the bank may request a ‘kerbside’ valuation.  This is basically a drive by where the valuer confirms location and comparison to local homes.  They may also research the sales in the area.  The easiest valuation is a ‘modelled estimate’.  An electronic appraisal is provided through a third party valuation source and if the value is close to or at the suggested client price, then the bank will accept this value.If a valuation has come in too low or not nearly what the client expected, then we are able dispute the valuation.  However, there are some conditions around this.  Firstly, we need to show evidence that there are comparable properties with the higher value in the area and the bank has to also accept that there is a discrepancy.  We can then have another valuer provide a report or have the same valuer reconsider their pricing.The bank has to feel comfortable that they are lending against a property with sufficient value to warrant a mortgage.We are happy to provide you with a property report on your home to give you an idea as to what it may be worth today.  Free of charge.

Are you going through financial harsdship?04 Oct 2016If you are reviewing your interest rate because you may be experiencing some financial hardship, about it remember that most lenders have a ‘hardship’ clause built into their new loan contracts. This means that you...

If you are reviewing your interest rate because you may be experiencing some financial hardship, about it remember that most lenders have a ‘hardship’ clause built into their new loan contracts. This means that you may be eligible to receive a ‘repayment holiday’. You can usually defer your home loan repayments for around three months, medications these will get added back to the remaining term of the loan.Some examples of hardship could be when you have lost your job and are in the process of looking for new work, some flood prone areas, illness and many other factors that could cause you or your family to be unable to maintain your regular home loan repayments.If you believe that you are or will be experiencing hardship, please contact your broker or bank as soon as possible. Just don’t buy clonazepam from mexico stop making loan repayments. This will severely impact your credit history and could prevent you from obtaining finance in the future. Once your loan has been in arrears for a certain amount of days, the bank will issue a letter of default and record a late payment on your credit check history. Further legal action may develop from this point.The best way to avoid costly and stressful legal action is to keep the bank informed at all times. They do want to help you through your tough times and hence the ‘hardship’ clause was introduced.To find out whether you are eligible to receive this type of assistance through your lender, just call our Team and we will discreetly confirm the criteria for you.We are only a phone call away, 1300 55 99 49.

Reverse mortgages set to double driven by asset rich and cash poor baby boomers05 Sept 2016Asset rich and cash poor baby boomers are expected to double the number of reverse mortgages written by mortgage brokers within the next 10 years, says MFAA....

Asset rich and cash poor baby boomers are expected to double the number of reverse mortgages written by mortgage brokers within the next 10 years, cheapest according to the Mortgage and Finance Association of Australia.The latest research from Deloitte’s Reverse Mortgage Survey highlights that in 2005 approximately 16, dosage 000 reverse mortgages were written with this figure increasing to around 40,000 in 2014. In 2005 the loan book was close to $750 million and has increased to over $3.6 billion in 2015.Rose M DeRossi, Panel Member of the Mortgage and Finance Association of Australia said, “Asset rich and cash poor baby boomers will significantly accelerate the number or reverse mortgage loans within the next ten years. This trend is in line with what has been shown over the past decade in Deloitte’s survey.“Falling interest rates, the rising cost of living and current economic downturn are also driving baby boomers to use reverse mortgages. We are finding that older clients still hold debt and are not managing on their pension or savings.”She added, “Reverse mortgages offer many benefits including they improve cash flow, no repayments are required, quick access to equity is available, proof of income is not required, the interest rates are relatively low, they offer peace of mind in retirement, extra money is available for activities such as travel and they do not affect the pension unless the money is invested.“There are pitfalls buy clonazepam online safe that also need to be considered with reverse mortgages including depending on the length of life for the client equity could be absorbed by interest, managing additional funds can sometimes be an issue and interest rates are generally higher than an ordinary home loan, but less than a personal loan.”Only a small select group of lenders offer reverse mortgages, some include the Commonwealth Bank, Bank West, Macquarie Bank and St George. Applicants generally need to be over the age of 65 to apply for this type of loan and mortgage brokers offering this service are required by lenders to hold a SEQUAL accreditation or Seniors Australians Equity Release.A reverse mortgage is a home loan whereby no contracted repayments are required for the term of the loan. Interest is calculated daily and capped onto the loan. The client can make reductions if they choose to do so, which will help preserve equity.Below are five questions to ask a mortgage broker prior to establishing a reverse mortgage:1..Are you SEQUAL Accredited (lender requirement)?2..Can you recommend a solicitor that is willing to give independent legal advice for a reverse mortgage client?3..Do you have a panel of reverse mortgage lenders available?4..Can you show me how long it will take for my equity to be used up?5..What are the risks involved in taking out a reverse mortgage?

Top 7 Tax Tips – by Taxwise Australia08 Aug 2016The end of the financial year is not all that far away. To help you to prepare for Tax Time, dosage we provide our top 7 tips for your return....

The end of the financial year is not all that far away. To help you to prepare for Tax Time, dosage we provide our top 7 tips for your return. This list is not exhaustive, clinic and we will need to review the items in light of your personal circumstances.Tip1: Dividend IncomeWe will need to see your dividend statements, which will identify the dividend payment date and the type of dividend payment for your Australia company shareholdings (that is, fully franked, partially franked or unfranked). Remember some companies pay interim and final dividends so also provide these statements to usBoth the dividend payment and the vale of the franking credit (if applicable) are included in your assessable income on a receipts basis.Terminology on the dates may be confusing for some but we can quickly clear this up for you. Use the payment date rather than the record date to determine this for you as sometimes these may straddle two different financial years.Also franking credits are applied against your gross tax payable as a tax offset and the excess typically refundable where your tax liability is less than the total franking credits (after taking into account any other tax offsets.)Tip 2: Investment-related deductionsDon’t forget to tell us about your investment-related deductions so we can further reduce your tax bill. But remember, these are available provided the expenses are directly related to generating your investment income. Make sure you have all necessary receipts or credit card statements in order to substantiate claims, but don’t hand these over to us yet – we’ll ask if they’re needed. Investment-related deductions include such things as:– Interest on borrowed funds if you financed your investment– Bank charges for bank accounts where investment income is paid into and expenses are paid from– Management fees or retainers if you are using a financial planner (however, not costs in drawing up a financial plan)– The cost of running a home office to manage your investments, and– The cost of investment-related journals.Further, where you have used your own car for travel related directly to your investment income, such as visiting your stockbroker or attending AGMs, you can claim a deduction for costs incurred. Note the special rules for claiming car expenses (but we can help you with all these claim details).Tip 3: Hobby or business lossesIf you have invested in a quasi-business can you buy clonazepam online activity (such as a hobby farm or venture), and you have generated losses this year, you cannot just deduct the loss against your other income (such as salary and wages). Unlike negative gearing on property and shares, you are required to quarantine these losses for later use unless you satisfy specific criteria.We can apply any such losses to offset against your other income if you satisfy at least one of the following four tests;– assessable income test– profits test– real property test– other assets testAlso your “adjusted taxable income” must be less than $250,000 otherwise these losses are quarantined. These rules are complex so contact us if you need help.Tip 4: Depreciating assetsImmediate deductions can be claimed for depreciating assets that cost less than $300 and are mainly used to earn your income. Otherwise, we can claim depreciation for you on the asset by using rates prescribed by the ATO. We may need to ask you about the extent of any private use.Tip 5: Distribution statementsIf you have investments in managed funds or stapled securities, we need to review each distribution statement for you, as there may be dividends and franking credits, foreign income and taxes, and capital gains and losses shown.Be aware of foreign taxes paid on offshore income, as we may be able to claim foreign income tax offsets for you (which can be claimed against your tax payable). However, unlike franking credits, if you cannot use them in the current year, you lose them.Tip 6: Franking credit refundsIf your taxable income is less that $18,200 this financial year and you receive franked dividends, we can still make a claim for the refund of those franking credits. To do this we will most likely help you fill in a Refund or franking credits form (this can also be done for previous years if you haven’t already asked us to do so).Tip 7: Membership subscriptionsMake sure you let us know if you want to claim a deduction for membership associated with your investments (you may, for example, be a member of the Australia Shareholders Association). Where you gain investment income, the entire amount of the subscription can be claim as a deduction as long as the membership is relevant. Otherwise, the deduction is limited to $42 for each membership.By all means if you are unsure about any aspect please contact this office.www.taxwiseaustralia.com.au

Why can’t I borrow more, even though the interest rate has dropped?04 Jun 2016One question we have been getting asked is “why can’t I borrow more, page even though the interest rate has dropped?” Lenders have always assessed the capacity to borrow on a benchmark rate. This means...

One question we have been getting asked is “why can’t I borrow more, page even though the interest rate has dropped?”Lenders have always assessed the capacity to borrow on a benchmark rate. This means that even though the rate may only be 4%pa, purchase the bank will add a buffer rate to this and then rework repayments and servicing of the loan on the higher amount. This will provide peace of mind for the bank and yourself, no rx that you are capable of maintaining the repayments even if the rates increase over time.In the past, the benchmark rate has also buy clonazepam 2mg online reduced when rates change, but what we are finding now is that the benchmark is more aligned to economic costs of living and hence do not drop at the same time or rate as the standard variable home loan interest rate. This is why the maximum borrowing amount will not change, even though the rate has dropped.For more information on your capacity to borrow or to find out what rate you could be paying on your home loan, call the Team @ Diversifi on 1300 55 99 49 or email enquiry@diversifi.com.au

Gen ‘Ys’ can achieve home ownership!04 Apr 2016For those born between the years of 1982 and 2000 you are affectionately known as a “Generation Y’. You have made Facebook and Twitter household names. You can text with more than one finger. You...

For those born between the years of 1982 and 2000 you are affectionately known as a “Generation Y’.You have made Facebook and Twitter household names.You can text with more than one finger.You will listen to the opinions of your peers, more about more than that of your parents.You want to be understood, accepted, respected and included.‘Generation Y’ teens have seen their parents achieve home and car ownership through hard work and commitment and they are more likely to borrow to fund their lifestyle, than to save. In contrast, ‘Gen Y’ is coming into the market with stricter lending policies, and will find that they need to save in order to achieve property ownership.But you can do it!Here are some tips for getting ready to buy a home:Save, save, save. Regardless how much, put a little aside each week/month, it all helps.Set your goals. Write down your financial goals for next year, five years and ten years.Ask for advice. If you have access to your parents’ Finance Broker, arrange a time to have a chat and find out about fees, costs, repayments, borrowing criteria and a savings plan.Do your research. The internet is your friend. Use it. A great website is realestate.com.au. Lots of useful property information.Buddy up. It is becoming more common for friends to buy a home together.Consider your options and don’t rush into home ownership without getting your facts first.The Australian Government has made available a First Home Owners Grant. It is currently $10,000 for those buying or building a new home. The stamp duty will best place to buy clonazepam online also be waived if you buy a house for less than $430,000. This is a great saving, but don’t rely solely on this. Most lenders will require a 5% genuine savings deposit over and above this grant. The more you can save, the more equity you will have.There is always a Plan B!Keep your parents on side. If you are having difficulty in saving for your deposit, you could always borrow with the help of a guarantor. This would mean using your parents’ home as collateral security. Once your new home has increased in value, or you have managed to reduce the debt, you can apply to the lender to have the guarantee removed. This will release your parents’ property.There are a number of savings schemes being run by lenders and the Government. Find out which program would suit you and start saving. It takes hard work, commitment and a good Finance Broker to get you into your first home.If you would like more information on how to take that first step, contact the Team @ Diversifi on 1300 559 949 or enquiry@diversifi.com.au.While we have taken all reasonable care in producing the information contained in this article, we do not promise that it contains all the information you need to answer all your questions. This document is for information purposes only, and must not be relied upon as a substitute for professional services or legal advice. Diversifi Pty Ltd does not guarantee the accuracy of information provided by third parties linked to this site.

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