How important is an ethical bank for you?

The mirror was held up to the major banks earlier this year during the Royal Commission into misconduct. The treatment of clients and ethical behaviour was questioned and investigated.
Most Australians have some sort of banking product with one of the major banks. But if you want to, it’s actually not that hard to change to a bank or lender who acts within their stated ethical objectives.
We can provide you with several ethical, community minded, socially responsible and customer focused lender options… these loans can also come with great interest rates & leading edge technological capacity for all of your banking needs.
If this is important to you – let us know and we’ll give you some brilliant options.

Contact us by calling our office 03 8372 0775 to arrange a time to have a chat.

Comprehensive Credit Reporting

Your public credit history now holds much more information than it used to, which means that now when you apply for any loan or credit facility, the lender you are applying to will be able to see much more than ever before about how you manage your credit.

Australia used to run a reporting approach where only ‘negative’ financial information was available. The focus was on the number of credit enquires you’ve made, whether you had defaulted on loan repayments (over 60 days and follow up action taken by the lender), bankruptcies, insolvencies and court orders and judgements – the really serious stuff.

Now, credit reports are likely to show much more about how you run your credit facilities. The report will provid a two year, month by month snapshot of whether your monthly loan repayments have been on time or how late they have been.

Also reported are the account type (credit card, pesonal loan) open and close dates and the current facility limit you can borrow up to.

You can obtain a copy of your own credit file at any time for free, which could take up to 14 days to be sent to you. If you need it quickly, we can access same day reports for a small fee.

Contact us to discuss your unique personal financial situation.

First Home Loan Deposit Scheme

First Home Loan Deposit Scheme

The Federal election on May 18th has some significant differences between the parties, with many relating to property and business.

The most recent announcement by the Liberal party is a policy to help first home buyers, by offering a government guarantee to reduce the deposit needed when buying your first home.

How it works and when can you apply?

The government will provide a guarantee to your lender which will mean that you won’t have to pay Lenders Mortgage Insurance, nor will your family have to provide a Limited security guarantee over their property.

If the Liberal party is successful at the election it will start from 1st January 2020.

To qualify:

  • you and your partner/spouse must be eligible for first home buyer benefits
  • you will need to have genuine savings of 5% of the purchase price
  • income caps are $125,000 for a single and $200,000 for a couple
  • there is no cap on the purchase price of the property
  • it will be available to the first 10,000 first home buyers per year.

Make sure you aren’t 10,001!

If you think this might help you buy your first home, call us now and we’ll help you work out a savings plan, so you are ready January 1st 2020.

New Office!

We got the keys to our new office last week. So excited!
Quite a bit to do now, in order to make it our very own work space. It’s going to be a remarkable transformation and I can’t wait to see it take shape from the paper plans to real life.

Visit us on Facebook – https://www.facebook.com/michele.mansfield.EV

 

 

Michele gets Gold!



Receiving recognition for mortgage broking & advising for over 15 years has caused me to reflect on the journey, joys and challenges that I have experienced over that time.

The absolute key to our business success is our ideal of communicative & mutually beneficial partnerships with our clients, network & community. Our culture of exceptional service provides our clients with outcomes that entirely meet their needs & future goals. When our clients are happy and we have earnt their trust, they refer their friends and family to us. This is a vital component to the growth & success of our business.

For many years now, every one of our new clients has come from a personal referral from a previous client, which is testimony to the respect & care everyone experiences from the EquityVision team.
Many clients from my first year in 2003, are still clients today, and over those 15 years we’ve grown & changed together.
Lisa was single when we first did a loan together and now she is married to a great bloke, they have 2 gorgeous kids, a beautiful home & two investment properties.

Equityvision in 2003 was based in a sunroom in our rented apartment with a fax machine, desktop computer & phone sitting on an old dining table. Today, we are on the verge of moving into a brand new office to fit in our growing team (currently 3 and I can’t wait to find number 4!).

Personally I have also grown & changed and although I now have a few more wrinkles, I love every one of those wrinkles for the experiences that they represent.

Thank you to all of my wonderful clients!!

Home loans and credit cards

Home Loan and Credit Cards
Did you know that just having a credit card will reduce how much you can borrow for a home loan?

Let’s have a look:

Daniel is looking to purchase his first home and he wants to find out how much he can borrow. He’s working in a sales support role in the city and earns $85,000 pa. Daniel doesn’t have any debt. But he does have a credit card with a limit of $20,000, which he pays off in full by the due date each month, so I guess that doesn’t count, does it?

Although Daniel doesn’t currently have any outstanding balance on his credit card the full $20,000 limit will be taken into account when determining how much he can borrow.

With the credit card, Daniel could borrow about $330,000 for a home loan.

If Daniel was to cancel his credit card he would be able to increase his home loan by approximately $85,000 – he could now apply for a home loan of around $415,000.

This means that Daniel can now start looking at a 3 bedroom, 2 bathroom house with a 2 car garage, as appose to a two bedroom, one bathroom unit.

Daniel is now planning out how he can convert his garage into a mancave and possibly even start his own veggie garden.

How are you going to repay your home loan while on maternity leave?

This is a question asked by many expectant mothers, so we have some great tips to help you through this challenging financial period. Part of the excitement and joy of planning a baby is buying gorgeous grow suits, cute cuddly toys, prams, cots and all the other stuff that you’ll need for your new family addition. A little bit less exciting, but just as important is planning how to manage your home loan repayments on a reduced family income while you’re on parental leave. Even if you are entitled to receive the government parental leave pay, it probably won’t replace your salary as it’s the national minimum wage amount for a maximum of 18 weeks.

It’s vital that you know what your options are before you go on leave, so you understand what strategies can work for you and put the right ones in place. Not all banks are the same, so if yours doesn’t have several options for you, it may be time to talk to your mortgage broker and move to a lender who understands what you need and how they can help you.

Here are some possibilities to explore:

Build up a buffer

In the lead up to your maternity leave, make additional repayments into your home loan to build up a buffer. This is the most financially responsible solution.

Pros: This buffer can sit in your home loan redraw or in your offset account and be used for your monthly repayments. If your loan doesn’t have these options talk to your mortgage broker about putting them in place.

Cons: It’s not practical if you haven’t been able to save enough.

Borrow the buffer

If you have enough equity in your home, top-up your home loan to draw out some cash to give you a buffer to tide you over your leave period.

Pros: If you don’t use it you can pay it back into the home loan.

Cons: Not all banks will lend you more money while you are actually on unpaid leave, so if this is your chosen strategy make sure you do it well before.

Your loan repayments will increase because you owe the bank more, for example if you borrow $50,000 at 4% interest, your monthly repayments will be $240 higher.

Interest only repayments

Change your loan repayments to interest only for a year or two.

Pros: If you have the right type of loan, you can still choose to make principle repayments, but if you have a tight cashflow month you only have to pay the interest for that month. For a $500,000 loan with an interest rate of 4%, your monthly loan repayments would reduce by $720 every month.

Cons: If your loan term is for 30 years, your minimum monthly repayments are calculated so that the loan is repaid in full be the end of the term. So, if you pay just interest for one of those years, then once you go back to principle and interest repayments, they will be calculated over the remaining 29 years. For our example loan above this would be an additional $40 every month for the rest of the loan term.

Some banks charge a higher interest rate during the period that you don’t pay off any principle, so make sure you check with your mortgage broker to check whether this would happen with your loan.

Fix your repayments

Knowing and understanding your family budget during the unpaid leave period is essential, and having the certainty of fixed home loan repayments during that time could be perfect for you.
Pros: If this would help you sleep at night (because your baby probably won’t!) then think about fixing the interest rate of your loan for a year or two.

At the moment, fixed rates are actually lower than variable rates, so it could be a great solution.

Cons: Fixed rate home loans are not as flexible as variable rate loans, so talk to your mortgage broker to make sure this solution works for you.

Re-finance

If you’ve had your loan for a few years already, you should owe less now than you originally borrowed. If you re-finance your loan with another lender, then you re-start the 30 year loan term with a smaller loan balance.
Pros: Your monthly minimum repayments will be lower.

Cons: Your mortgage broker will help you understand whether the costs of re-financing make this a sensible choice for you.

Loan repayment suspension

You may be able to put your loan repayments on hold for a few months.

Pros: You have no loan repayments for the arranged period of time.

Cons: The bank will still charge you interest and it will be added onto the amount you owe, compounding how much total interest you end up paying. In addition to this, at the end of the period, your loan repayments will be re-calculated and will be more than they were originally.

Returning to work

Of course, it’s not just the initial period of leave with reduced or no income that you need to think about. If you return to part-time work your income will be lower, and you may have additional expenses like childcare to pay. So make sure you plan and understand how this will affect your family budget.

Let’s talk!

As mortgage brokers (and a busy mums) we’ve had lots of experience helping local families with exactly these issues, and we’d love to help you work out the best solution for your family!