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It’s been a few weeks since the mortgage broking industry had the biggest storm of #adversity hit since the GFC in 2008. Here’s my take;

  • 9 of the 76 Royal Commission report recommendations have a direct impact on the mortgage broking industry, in particular they have made recommendations on the way we get remunerated.
  • Whilst at this stage they are only recommendations, the government (as part of the election battleground) look likely to accept the recommendations, which could mean a change to the way we get paid.
  • Trailing commission looks set to go from July 2020, with only a review to move to a fee-for-service model (in which the borrower would pay for the advice upfront).

Mortgage brokers represent a level of competition to the banks that keep them honest and maintains a better outcome for the everyday Australian. This is a channel which continues to be supported by consumers, with records stating in 2018, that 61.7% of Australians would rather use a broker than deal with a bank directly. However, the recent Royal Commission may derail our industry and prompt many to shut up shop.

But it is my belief that out of adversity always comes opportunity;

  • Accepting there will be some change (although I strongly believe this will stop short of actually moving to a fee-for-service model, due to the unintended consequences of removing competition in the mortgage market, which is bad for all consumers)
  • Be ready to zig (or zag) stay nimble in your business and don’t be in denial or you will be behind the 8-ball
  • Stand behind your value proposition, strengthen your service offering and look to diversify your revenue stream
  • #adversity will result in a consolidation of mortgage broking numbers as people will leave the industry, new entrants will potentially be deterred until everything levels out. #resilience will be rewarded for those that stand the course.
  • Keep on fighting! It’s not over, the industry and community have really banded together (did you see the MFAA #yourbrokerbehindyou #dontkillcompetition advert on TV last night?) let’s hope the politicians listen to what the Australian people want!

Feel free to get in contact with me at dylan@divitisfinance.com.au or on 0430 227 328 should you wish to discuss the implications of the Royal Commission or anything else finance/mortgage related.

The post How resilient are you? If a Royal Commission storm flew over your business would you survive? appeared first on Divitis Finance.

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2018 has been full of ups and downs in our industry, but rather than focusing on the doom and gloom we thought we’d stay positive, and prove our worth as Mortgage Brokers, by sharing our knowledge around the changes the banks have been making over the last year and how it will affect your experience when getting a loan in 2019.

In the good old days getting a home loan was easy… these days it can be a slow and frustrating process. This is principally due to changes forced onto the banks by our Government. The government has implemented these changes to ensure Australia’s financial system remains resilient, however there has been a knock-on effect for consumers.

The good news is, once the the teething issues from the changes settle, we should expect things to become more streamlined and go back to status quo. However in the meantime, here are our key takeaways for what you should expect when applying for a loan in 2019 :-

  1. Banks will want more supporting documentation
  2. You will be asked more questions
  3. They’ll want to know what you spend your money on
  4. You probably won’t be able to borrow as much as before
  5. The whole process will take longer
  6. You’ll have to pay more for an investment
  7. Interest only loans are harder to come by
  8. They’ll want to know your retirement plan
  9. If you live overseas getting a loan will be more difficult

How can a Mortgage Broker help?

  • We know what the banks are looking for and we stay up to date on credit policy changes
  • We make your application watertight – ensuring every box is checked to ensure a smooth process
  • We do all the chasing for you!
  • The regulators have affected almost every stage of the application and approval process. This has drastically slowed up the process for the banks. Where mortgage brokers really shine is the ability to speak with the key decision makers to speed things up whenever things are slowing down
  • We also know exactly what the banks are looking for in an application, so we always ask for all of your documents upfront to avoid delays

Divitis mortgage brokers are finance specialists, providing tailored advice to help you create a strong loan application, apply with the right lender for your situation and ensure you settle! Contact us on 02 8412 0009 or at admin@divitisfinance.com.au

Keep reading for our top tips on dealing with these changes and avoiding the pitfalls!

1. Banks will want more supporting documentation 

In the past, banks would accept whatever you indicated on the home loan application form.

Today, they need to verify everything. This often includes providing statements for all liabilities, main transaction and salary credit accounts.

Banks can also ask for further documentation even after the application has been pre-approved. This going back and forth is very frustrating for everyone.

What can you do? Provide as much information as possible up front. The more honest your conversations are with your mortgage broker the better they can assess your situation and ensure all the required documentation is supplied on application.

2. You will be asked more questions

Banks are required by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to justify their assessment of your application.

Even after you have provided all the required supporting documents the bank may come back and ask further questions about particular transactions.

For example: – a regular payment of $600 is shown on your transaction statement but you haven’t included this in your living expenses. The bank will ask you to justify this spending and include it in their servicing assessment. This will also delay your application.

What can you do? Declare all liabilities and regular spending upfront so your broker can include them in their servicing calculations which avoids nasty surprises later on.

3. They’ll want to know what you spend your money on

These days banks ask you to estimate your living expenses but if they don’t meet their benchmarks, they will use a higher figure in their assessment.

If you have a high household income, they’ll scale your living expenses to be appropriate for your income. This greatly reduces your borrowing power compared to a few years ago.

If you currently have high living expenses and you plan on purchasing or refinancing you should consider budgeting/changing your lifestyle to improve your borrowing power.

It makes sense to do this several months before you take on a new commitment like a home loan as then you will have a higher borrowing power.

What can you do? Get your expenses in order. Banks are particularly sensitive around ‘buy now pay later’ purchases any any undisclosed regular payments such as gym memberships or subscriptions.

4. You probably won’t be able to borrow as much as before

APRA has been putting restrictions on the way that banks assess your borrowing power for the last two years.

This has had the biggest impact on high income earners, due to changes in the way their living expenses are assessed, and property investors, due to the way interest only and investment loans are assessed and a new ‘debt to income ratio’ which prevents you from borrowing more than 6x your income.

They’ve been doing this because interest rates are low and if people borrow too much now then they may be unable to make their mortgage repayments later if interest rates rise.

However, there are many people who have a good reason to borrow to their limit and it would not put them at risk of future rate changes.

For example, a property investor may plan to sell one of their properties if interest rates increase significantly.

What can you do? If you do need to borrow the maximum amount possible then we may use a multi-lender strategy or apply with non-bank lenders that are not affected by APRA restrictions. We believe in responsible lending and will not assist you to borrow more than you can afford.

5. The whole process will take longer

As a result of the banks asking for more documents and asking more questions, each application takes longer for them to assess and they may go back and forth several times with questions before they approve it.

Lenders that have pricing specials are particularly affected by this as they get inundated with large numbers of applications.

What can you do? Get pre-approved before you start looking for a property. If you’ve found a property and now need a home loan in a hurry, then don’t apply with the cheapest lender. Instead, apply with a lender that is fast and has a competitive rate.

6. You’ll have to pay more for an investment

In recent years, APRA put a cap on the growth of investment lending for the banks.

As a result, the banks are discounting rates for home loans and putting up the prices on investment loans.

You may find some banks make it hard to get approved for an investment loan or stop doing investment loans altogether.

In these cases, it’s best to apply with another bank or non-bank lender.

The investment cap is being replaced by a debit to income ratio cap which is designed to limit lending to highly-geared investors while leaving home owners and investors with minimal gearing untouched.

What can you do? This is something that one of our mortgage brokers can assist you with so complete our free assessment form and let us know about your situation. We have access to lenders that have lower investment loan rates than the major banks.

7. Interest only loans are harder to come by

Interest only loans actually cost more in interest over the term and can lead to borrowers not paying off their property before retirement.

APRA requires the banks to limit interest only lending and, as a result, the banks have put strict qualifying criteria in place and increased interest rates. In a recent speech by the Reserve Bank of Australia (RBA) too raised concerns about interest only loans.

Interest only loans are unsuitable for most home buyers but may be suitable for investors depending on their strategy.

What can you do? We strongly recommend that you consider paying principal and interest (P&I) instead of choosing an interest only loan. It is quite possible that within a year or two, interest only loans could be banned altogether.

8. They’ll want to know your retirement plan

Only a few years ago, the banks would approve a 30-year loan to a 60-year old!

Now, they consider your retirement age and whether you can repay the loan before retirement.

Again, this comes from the guidelines set out in the National Consumer Credit Protection Act 2009 (NCCP act), which is managed by ASIC, and in the responsible lending changes instigated by APRA.

What can you do? We recommend that you discuss your home loan plans with your mortgage broker and work out how you are going to pay off your loan before you retire or pay it out from superannuation fund or by downsizing. Some non-bank lenders are more likely to accept a borrower closer to their retirement age.

9. If you live overseas getting a loan will be more difficult

In February 2016, several instances of fraud were uncovered which eventually led to the banks discovering billions of dollars of fraudulent loans for borrowers with false income documents.

As a result of this, many lenders stopped lending to Australians living overseas, put significant restrictions on their expat lending policies, or asked for many additional documents to verify your income.

This has adversely affected the more than one million Australians living overseas who often want to buy or refinance a property back in Australia.

Foreign citizens are often unable to get a mortgage in Australia at all, or they’re required to pay a significantly higher interest rate than Australian citizens.

What can you do? We’re specialists in lending to Australians living overseas and can help you to apply with a lender that takes a common-sense approach.

How can a Mortgage Broker help?

  • We know what the banks are looking for and we stay up to date on credit policy changes.
  • We make your application watertight – ensuring every box is checked to ensure a smooth process.
  • We do all the chasing for you!
  • The regulators have affected almost every stage of the application and approval process. This has drastically slowed up the process for the banks. Where mortgage brokers really shine is the ability to speak with the key decision makers to speed things up whenever things are slowing down.
  • We also know exactly what the banks are looking for in an application, so we always ask for all of your documents upfront to avoid delays.
  • Where appropriate, we can help you to apply with a non-bank lender that is not affected by APRA’s restrictions.

Divitis mortgage brokers are finance specialists, providing tailored advice to help you create a strong loan application, apply with the right lender for your situation and ensure you settle!

Contact us on 02 8412 0009 or at admin@divitisfinance.com.au

Content credited to Otto Dargan – CEO of Homeloan Experts

The post The Home Loan Process – Version 2.019 appeared first on Divitis Finance.

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What do the pro’s look for in a high-performing investment property?

Following our Viva BrisVegas blog we’re breaking down the business of Property Investing into 10 bitsized chunks.

Selecting the best investment property is going to depend a lot on your budget, individual circumstances, and overall strategy. However, there are some key fundamentals that many successful investors look for to help them sift through the dirt and find those diamonds. It really boils down to finding the right property in the right area. Here are some of the top factors the property pro’s look for in a high-performing residential investment:

Choosing the best location

  1. Close proximity to transport, shops, and schools – This is a basic tenet for investors as it will often have a big impact on future capital growth and ability to attract tenants. Ideally you’ll want to be within walking distance to public transport options and the local shops with a selection of good schools within a few kilometers. Walkscore.com is a good way to compare properties you are looking at.
  2. Healthy local economy – Is the suburb a commutable distance to a major employment hub (with diverse industry). Is it below the state average unemployment rate or has new infrastructure projects planned or underway?
  3. Historical capital growth – The 10-year property price (or even 20-year if possible) growth gives a good context of the previous performance of the suburb. Typically 7-10% is a healthy growth rate but this can vary depending on where you are in the country. Keep in mind: past performance is not an indicator of future performance
  4. Suburb vacancy rate – This gives a good indication of the level of demand for rental properties in the area. Depending on the area a healthy vacancy rate is typically between 2-3%
  5. Street location – Is the property located in a quiet residential street? Rarely will you see the pro’s buying on a main road or overly “busy” area as the noise & pollution can make it harder to hold onto tenants and sell the property in the future

Choosing the best property

  1. Property type – This can be critical to getting it right and things that need to be considered are which style of property is most in demand for this area? Houses, apartments or townhouses? How many bedrooms? Are people in this area needing a car space or not? This is where you need to have an understanding on things like local demographics, supply levels, and what trends are occurring. Speaking to local agents can help with this, but don’t solely rely on what they say!
  2. Property cash-flow – Do the numbers on this property stack up? What will the monthly servicing look like and is it going to have an impact on your lifestyle?
  3. Shop for value – You’ll need to compare the properties you are looking with similar properties in the area to make sure you’re not overpaying. Realestate.com.au is a good place to do some quick research and see what else has recently sold and is on the market that is similar to the property you are looking at.
  4. Property size – Size matters, and the experts will often calculate the price per m2 rate to make clear comparisons with other properties they are looking at in the area. This can also help to measure the previous-mentioned criteria. Emphasis also needs to be put on securing well-sized bedrooms with built-in wardrobes.
  5. Overall visual appeal – Unless you are planning on renovating, looks still matter. It doesn’t have to be perfect, or even good enough for you to live in, but it needs to be presentable enough to attract a respectable pool of tenants and future buyers when it comes time to eventually sell the property.

Let us know your thoughts by commenting on our blog and feel free to give us a call on 0430 227 328 if you have any questions.

by Simon Salotti, Business Development Manager at Divitis Finance

The post Property Investing: Shop like a Pro appeared first on Divitis Finance.

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Where can I buy a solid property investment for under $500k?

Continuing on from our last blog post, we established that there are still some great benefits to buying well in the current market.

Being open to markets outside of Sydney can mean the difference between keeping up momentum with your wealth creation plans, or, sitting frustrated on the sidelines for years to come.

Savvy investors are choosing to invest in Brisbane. Many experts agree Brisbane is a standout amongst the Australian capital cities for growing your investment portfolio. Here are 5 reasons why:

  1. New Infrastructure: Brisbane city is booming which is underpinned by approximately $12 billion in infrastructure spending (either underway or planned) that will significantly change the Brisbane CBD over the next 6 years. This is being led by the $3 billion Queens Wharf development which is set to be completed by 2022. These projects have a significant knock on effect, propelling both the local economy and employment opportunities.
  2. Affordability: Brisbane median house prices are just 50% of Sydney prices and when you compare that to median household incomes Brisbanians are earning equal to that of Melburnians and only 12% behind Sydneysiders (statistics from 2016 Census)
  3. Strong rental yields: In many areas rental yields can range from 4 – 4.5% compared with Sydney which is closer to 3%. This equates to less week-to-week stress on your cash flow making it easier to service your mortgage and maintain the lifestyle you’re used to.
  4. Growth phase of the cycle: Brisbane houses are still very much in the upswing of the property cycle and in certain areas are showing signs of continuing for a long time to come. (Note: Apartments are generally still absorbing oversupply and are not in the growth phase)
  5. Strong net migration: Brisbane’s affordability and increasing appeal is attracting people from all over Australia, another factor likely to contribute to increasing demand for Brisbane property

Areas to keep an eye on:

You can pick up great value through buying well in the “middle-ring” suburbs generally between 10-20km of the CBD. Freestanding houses can still be purchased for sub $500k in many of these areas which have healthy local economies and are well serviced with good schools, shops, transport and amenities to support long-term growth. It could be worth looking into suburbs like:

  • McDowell (12km North)
  • Albany Creek (16km North)
  • Nudgee (14km North-east)
  • Pallara (19km South)
  • Springfield Lakes (33km South-west)

*Suburb Proximity to Brisbane CBD

These suburbs are also typically underpinned by low vacancy rates (below 2.5%) and solid 20-year per annum capital growth (above 6%).

Let us know your thoughts by commenting on our blog and feel free to give us a call on 0430 227 328 if you have any questions.

by Simon Salotti, Business Development Manager at Divitis Finance

The post Property Investing: Viva BrisVegas! appeared first on Divitis Finance.

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Are you concerned about the current state of the property market and where it’s heading? You’re not the only one…

Over the coming weeks we will shed some light on where the best value is (in the current market) and serve a good reminder of the benefits of what fundamentally sound property investing can do for you.

With increasingly negative media coverage surrounding the Australian property market, now might be a good time to step back and gain some perspective on things before you throw in the towel on the whole notion of investing.

Property investing is not a get rich quick strategy, it’s a long-term game designed to build a nest egg for the future. Done correctly, it can lead to genuine wealth creation giving investors more options in life such as early retirement, funding their children’s education, or providing additional cash flow to enjoy more of the good things in life like travelling or living in your dream location.

Property markets, like all other markets, are susceptible to temporary slumps and stagnation, but for many investors the key to their success has been TIME in the market more than TIMING of the market. 40 years ago, the median house price across Australian capital cities was just $37,337. Today, the median house price across the whole of Australia is $809,201 which is almost a 20x increase in value. Let’s just say the market slows down over the next 40 years and only performs at 50% of the previous 40-year growth, that would still be a 10x increase, which would mean that by 2058 median house prices would be a little over $8 million. Not too shabby!

In this game, it generally pays to be patient and remember that in many cases short-term volatility is being underpinned by long-term growth – you just have to hold on. There are still some good signs for our future property markets which are, in some ways, a protected species:

  • Australians have established a long love affair with property (which is probably why when it misbehaves we start getting all emotional about it in the media)
  • The property sector is Australia’s #1 employer
  • It is deeply embedded into our economy and financial sectors
  • Property provides a massive revenue stream to all tiers of government

Also, relative to other overseas countries Australia has:

  • A healthy economy
  • A rapidly growing population
  • Stable government (despite our compulsion to bring in a new prime minister every 5 minutes), and
  • Enjoys a high quality of life and desirability to live here

It must be said that much of the negative press towards Sydney real estate is justified, due to its sheer unaffordability. However, there are many more affordable markets that are backed by solid fundamentals for both capital growth and rental yields that should be getting more coverage.

Stay tuned for our next blog post to find out where these locations are and find out how you can pick up a great property for under $500,000….

Let us know your thoughts by commenting on our blog and feel free to give us a call on 0430 227 328 if you have any questions.

by Simon Salotti, Business Development Manager at Divitis Finance

The post Property Investing: Should I stay, or should I go? appeared first on Divitis Finance.

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Despite the Reserve Bank of Australia (RBA) keeping a record low interest rate of 1.5% for the last 25 consecutive months & Westpac recording a $5.4 billion profit last year. Westpac announced that they are increasing their variable interest rates by 0.14% p.a.

On a $500k loan this is going to increase your repayment by approx. $700 p.a. This is disheartening as banks are claiming it’s due to increased pressure from the international markets increasing their interest rates. A lot of the Australian banks get their wholesale funding from overseas so if they increase, our banks feel pressured into increasing their rates too.

If you are a Westpac customer you won’t be the only ones that are put out… ANZ and CBA (who record a profit of $9.3 billion) followed today, increasing their rates by 16 and 15 basis points respectively.

If this information concerns you or your lifestyle cannot absorb further increases, now is the time to get in touch with us. We can review your mortgage to ensure you’re on the best rate and advise should you wish to look at some of the many great fixed rate options that are still available in the market.

If you haven’t reviewed your mortgage or interest rate in a while now is the perfect time to pick up the phone and give me a call – 0430 227 328 or email me on dylan@divitisfinance.com.au

p.s. I’d like to share this article as it’s one of the better ones  I’ve read this year around RBA’s interest rates and the impact it’s having on your home loan rates

The post The Banks are at it again! appeared first on Divitis Finance.

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Have you been slacking? Missing loan, credit card or utility bill payments? With the introduction of Comprehensive Credit Reporting (or CCR for short) it is more important than ever to make your repayments on time.

CCR was introduced in July 2018 and is a system whereby lenders share more of your data with credit bureaus such as Equifax and Experian, which in turn will be listed on your credit report. Currently, Australians mainly have negative information such as defaults and bankruptcies listed on their credit report, but with CCR additional information such as the type of credit we hold and whether we make payments on time will be included.

If you are applying for a credit card, a loan, or to buy goods or services on credit, your credit report can make or break your application.

Credit reports record your credit history – from how many times you applied for credit and which loans were opened, to your history of making repayments, defaults and how much debt you have available. This report can be condensed into a ‘credit score’ – your credit score compares you to other borrowers and assesses your creditworthiness to help credit providers decide who to lend to and how much to charge for interest.

Credit providers will use your credit report or credit score, any information you provide during the application process and other details to determine if they will lend to you, how much they will lend and on what terms.

Good news…

If you have been paying off your credit card and loans on time, this will count towards your credit worthiness – as you have been demonstrating your ability to responsibly manage debts. Credit providers can check if the credit you applied for is right for you. Better still, they may offer a loan with an interest rate and repayment schedule that is tailored to your unique circumstances.

Bad news…

With a clearer picture of your financial health, credit providers are in a better position to see if you should be given credit. A poor credit history will be more obvious and you may not be approved for credit.

But all is not lost. Under the new system, if you pay off your overdue payments and continue to pay your debts on time, credit providers will be able to see that you are now managing your loans (however, defaults will continue to stay on your credit report for five years).

Click on the link below for the full article:-
https://www.creditsmart.org.au/personal-lending-justgot-a-little-smarter/

The post Don’t be a slacker…Your loan depends on it. appeared first on Divitis Finance.

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So… your loan application was declined and you think that owning your own home/investment property is just a long lost dream? Think again… Now more than ever banks are tightening up their policies and delving deeper into your financial situation BUT as experienced Mortgage Brokers we understand that everyone’s situation different and we use our knowledge and know-how to find the best possible solution for you and your uniquely ‘special’ set of circumstances.

1. YOU WANT TO BORROW 95%
Loans that are 95% of the property value are seen as higher risk by the banks so your application will need to be bulletproof.
Did you know? – you can borrow 100% of the property value if you have a suitable guarantor.

2. YOU HAVE BAD CREDIT
Most lenders see bad credit as an instant decline however, some will consider your application if you’re discharged from bankruptcy or have paid your defaults

3. YOU’VE APPLIED MULTIPLE TIMES BEFORE
Having too many inquiries on your credit file can make it tough to get a home loan, luckily some lenders will take a common sense approach and don’t credit score.

4. YOU’VE BEEN IN YOUR JOB FOR LESS THAN 6 MONTHS
In an ideal world the bank wants you to stay in your job role long term, in reality we understand this isn’t always the case AND we know the lenders who feel the same as us!

5. YOUR SPENDING HABITS AREN’T THE BEST
Now, more than ever the banks are looking at what you spend your money on. So beware, these days your Netflix, SportsBet and Deliveroo will impact your ability to service a loan.

6. YOU’VE BEEN SELF-EMPLOYED FOR LESS THAN 2 YEARS
This is one of the harder policies to overcome when applying for credit however, clients within certain industries can still overcome this.

7. YOU’RE COMING UP TO RETIREMENT AGE
Banks can’t discriminate against your age but they may require you to demonstrate your exit strategy.

8. YOU WANT TO BUY A UNIQUE PROPERTY
Properties such as small studios and rural retreats might float your boat, but banks only care about the resale value in case you default on your loan. Thankfully some lenders will make exceptions.

9. YOU’RE UNEMPLOYED
You don’t have a job but you want to borrow a substantial sum of money…?
We’d love to help you BUT you’re right about this one. Lenders cannot approve your application unless you can prove your source of income

IF THIS APPLIES TO YOUR OR SOMEONE YOU KNOW, GET IN TOUCH WITH US TODAY TO DISCUSS THE BEST SOLUTIONS

Get in touch with us today via our contact form or at dylan@divitisfinance.com.au or on 02 8412 0009

The post 9 REASONS YOUR LOAN COULD BE DECLINED… And 8 ways to avoid it appeared first on Divitis Finance.

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The end of the financial year/new financial year is the perfect time to take stock, assess your current situation and plan for the year ahead.

To help you along we’ve come up with 5 top tips to help you achieve your financial goals:-

  1. Self-Employed – Read this before you submit your tax return!

Tax planning is more crucial than ever before due to the continuous changes to bank verification, especially for our self-employed/business owners/contractors. If you’re self-employed and potentially have a funding requirement over the next 12 months for either business or personal (such as refinance/new purchase) be sure to consult a mortgage professional before submitting your 2018 Returns. Too often we see business owners getting themselves into a position where they can’t obtain the funding they require because their accountant has legally minimised their tax. We help our clients avoid the stress of obtaining finance as a self-employed person by having those proactive conversations with the accountant, ensuring they benefit and achieve their goals.

  1. Mortgage(s) – Check your rate!

Since 2016 our friends at the banks have consistently “crept up” interest rates & repayments (unbeknown to most loyal existing clients). If you are reading this, check your current rates RIGHT NOW! If your rates are above; 4.00% for Owner Occupied and 4.50% for Investment YOU ARE PAYING WAY TOO MUCH! Check your rate, it will only take you 2 minutes, and if you are above these benchmarks a simple call to your bank can potentially save you $$$. We have saved clients $000’s this year alone by seeking better opportunities for them.  You can check your rate at any time however, the start of the new financial year is a great time to get your finances in order. Feel free to contact us as we can guide you through how to get a better rate with your existing bank.

  1. Consolidating Debts – Get a grip!

Lots of us have that credit card or other lingering debt that we seem to be getting nowhere with in paying down. Consolidating your debt(s) into a better, more manageable situation, whether that’s into your home loan or into one debt management loan, will hopefully see you make a real dent into paying off that unwanted debt this financial year.

  1. Comprehensive Credit Reporting – Never miss a payment!

If you haven’t heard of CCR or Positive Credit Reporting before keep reading! This is set to change the financial landscape dramatically from 1st of July. Without going all finance geek on you, as of the 1st July 2018 the Australian Government will introduce a mandate that all banks are required to release information about your accounts and credit activity. Because of this the banks will be more empowered than ever to determine if you have been good and pay everything on time or if you are slack with late payments or other issues. Banks will then make their assessments based on this information so… who do you think they are going to prefer to lend to and which clients will get the best interest rates?

  1. Tax doesn’t have to be taxing – Plan ahead!

As the new tax year starts, you’re probably more focused on getting this year’s tax return lodged than worrying about next year’s. However, it pays to start preparing early. If you put in place an organised system for keeping your tax records now, at the start of the year, preparing your tax return next year will be less stressful and could result in a bigger tax refund. And the more organised your finances the better your options will be when applying for finance in the future.

Please don’t hesitate to contact me at dylan@divitisfinance.com.au or on 02 8412 0009 should you wish to discuss any of the above tips, have a separate finance need or just want a chat!

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