Rajat Kumar

31/12/2025

21/12/2025

Thinking about refinancing or paying off your loan early but unsure what it could actually cost you? 🤔

In the final episode of Questions I’ve Always Wanted to Ask My Broker, I explain what borrowers need to understand before making changes to their loan and why knowing this upfront can save you from unexpected outcomes later.

If refinancing or early repayment is on your radar, this episode is for you.

🎥 Episode 10: What exit costs or penalties apply if I refinance or pay off my loan early?



𝘛𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘦 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘰𝘳 𝘤𝘳𝘦𝘥𝘪𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐𝘵 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘪𝘥𝘦𝘳 𝘺𝘰𝘶𝘳 𝘰𝘣𝘫𝘦𝘤𝘵𝘪𝘷𝘦𝘴, 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘪𝘵𝘶𝘢𝘵𝘪𝘰𝘯 𝘰𝘳 𝘯𝘦𝘦𝘥𝘴. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘢𝘥𝘷𝘪𝘤𝘦 𝘧𝘳𝘰𝘮 𝘢 𝘭𝘪𝘤𝘦𝘯𝘴𝘦𝘥 𝘮𝘰𝘳𝘵𝘨𝘢𝘨𝘦 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘣𝘦𝘧𝘰𝘳𝘦 𝘢𝘤𝘵𝘪𝘯𝘨.

18/12/2025

Self-employed or earning irregular income - does that mean loan approval is harder? 🤔

In Episode 9 of Questions I’ve Always Wanted to Ask My Broker, I explain how lenders really assess business owners, contractors, and variable income earners and why the right strategy matters more than your income structure.

If you’ve been unsure where you stand or told to wait, this episode will give you clarity.

🎥 Episode 9: If I’m self-employed or have an irregular income, can you still help me get approved?



𝘛𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘦 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘰𝘳 𝘤𝘳𝘦𝘥𝘪𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐𝘵 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘪𝘥𝘦𝘳 𝘺𝘰𝘶𝘳 𝘰𝘣𝘫𝘦𝘤𝘵𝘪𝘷𝘦𝘴, 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘪𝘵𝘶𝘢𝘵𝘪𝘰𝘯 𝘰𝘳 𝘯𝘦𝘦𝘥𝘴. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘢𝘥𝘷𝘪𝘤𝘦 𝘧𝘳𝘰𝘮 𝘢 𝘭𝘪𝘤𝘦𝘯𝘴𝘦𝘥 𝘮𝘰𝘳𝘵𝘨𝘢𝘨𝘦 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘣𝘦𝘧𝘰𝘳𝘦 𝘢𝘤𝘵𝘪𝘯𝘨.

18/12/2025

Commercial lending is assessed very differently from residential lending.

Commercial lenders assess deals based on cash flow strength, lease income, business structure, industry exposure, and security quality. Each lender applies these factors differently, which is why outcomes can vary significantly.

Under APRA’s prudential standards, banks must maintain sound credit risk frameworks that assess repayment capacity and credit quality. In commercial lending, that means looking well beyond asset value to serviceability and cash-flow resilience.

In practice, lenders closely assess:

➡️ Sustainable cash flow and debt-servicing capacity

➡️ Interest coverage ratios (often around 1.5x or higher)

➡️ Lease quality, remaining lease term, and tenant concentration

➡️ Industry risk and borrower structure

Different lender risk appetites can lead to very different outcomes for the same commercial deal.

This is where an experienced commercial broker adds real value.

A commercial broker doesn’t just submit an application. They act as a finance intermediary and solution provider — developing the right loan strategy, matching the deal to suitable lenders, and managing the process from application through to settlement.

Depending on the structure and objectives, this may involve full-doc, alt-doc, lease-doc, or SMSF lending, each with its own policy settings and assessment criteria.

The right strategy can mean:

✔ Higher approval confidence

✔ More appropriate lending terms

✔ Fewer delays and conditions

✔ Funding that supports long-term business goals

If you’re considering a commercial purchase, refinance, or SMSF strategy, getting the structure and lender selection right from the outset is critical.

With over 18 years’ experience in banking and commercial finance, and access to a broad lender network, I work with business owners and investors to structure finance solutions aligned to lender policy, risk appetite, and long-term objectives.

📞 0447 336 396

🌐 www.financecirclegroup.com.au



𝘛𝘩𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘥 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘪𝘥𝘦𝘳 𝘺𝘰𝘶𝘳 𝘪𝘯𝘥𝘪𝘷𝘪𝘥𝘶𝘢𝘭 𝘤𝘪𝘳𝘤𝘶𝘮𝘴𝘵𝘢𝘯𝘤𝘦𝘴. 𝘓𝘦𝘯𝘥𝘪𝘯𝘨 𝘤𝘳𝘪𝘵𝘦𝘳𝘪𝘢 𝘢𝘯𝘥 𝘰𝘶𝘵𝘤𝘰𝘮𝘦𝘴 𝘷𝘢𝘳𝘺 𝘣𝘺 𝘭𝘦𝘯𝘥𝘦𝘳. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦 𝘣𝘦𝘧𝘰𝘳𝘦 𝘢𝘤𝘵𝘪𝘯𝘨.

14/12/2025

Does a mortgage broker just help you get to settlement… or is that where it ends? 🤔

In this episode of Questions I’ve Always Wanted to Ask a Broker, I explain what ongoing broker support actually looks like after settlement, and why it matters more than most borrowers realise.

🎥 Episode 8:Does Mortgage broker just help me get to Settlement or is it an ongoing service?



𝘛𝘩𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘯 𝘵𝘩𝘪𝘴 𝘷𝘪𝘥𝘦𝘰 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘦 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘰𝘳 𝘤𝘳𝘦𝘥𝘪𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦 𝘣𝘦𝘧𝘰𝘳𝘦 𝘢𝘤𝘵𝘪𝘯𝘨 𝘰𝘯 𝘢𝘯𝘺 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘥.

11/12/2025

Bank vs Mortgage Broker - what’s the real difference? 🤝🏦

In Episode 7, I you’ll understand why the pathway you choose can influence the outcome of your loan application, what brokers look at that banks don’t, and how the right strategy can put you in a stronger position for an approval.

🎥 Episode 7: Why work with a mortgage broker instead of going directly to the bank?



𝘛𝘩𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘯 𝘵𝘩𝘪𝘴 𝘷𝘪𝘥𝘦𝘰 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯 𝘯𝘢𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘴𝘵𝘪𝘵𝘶𝘵𝘦 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘰𝘳 𝘤𝘳𝘦𝘥𝘪𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦 𝘣𝘦𝘧𝘰𝘳𝘦 𝘢𝘤𝘵𝘪𝘯𝘨 𝘰𝘯 𝘢𝘯𝘺 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘥.

10/12/2025

Most borrowers think income and interest rates decide their loan approval but declines usually happen for quieter reasons behind the scenes.

Here are the most common reasons banks say no — and how to avoid the pitfalls:

1️⃣ Insufficient or Unstable Income / Cash Flow

Lenders assess whether your income is stable and ongoing.
For self-employed borrowers, inconsistent business revenue is one of the leading decline reasons.
For PAYG borrowers, probation, casual contracts, or frequent job changes raise risk flags.

2️⃣ High living expenses vs HEM (Household Expenditure Measure)

Banks compare your spending to the HEM.If your bank statements show higher-than-average living costs, your borrowing power reduces even if your income is strong.

3️⃣ Poor credit conduct

Late repayments, overdrawn accounts, and high credit utilisation signal financial stress. Banks want at least 6 months of clean, consistent behaviour.

4️⃣ Low property valuation

If the bank’s valuation comes in lower than the contract price, the loan structure (LVR, deposit, LMI) may no longer work. This is common with land, construction, and competitive markets.

5️⃣ High Debt-to-Income Ratio (DTI)

Most lenders cap DTI at 6–7× your income. If your debts (even unused credit card limits) push you above this, your application may be automatically declined.

6️⃣ Applying with the wrong lender

This is one of the most underestimated reasons for declines.Every bank has different rules for SMSF, commercial, guarantees, employment types, and postcodes. A great application submitted to the wrong lender can still be declined.

How to avoid these issues:

✔ Keep accounts stable and in positive balance

✔ Track and tidy your spending 3–6 months before applying

✔ Prepare income and tax documents early

✔ Use a broker to match your scenario to the right lender from the start

✔ Reassess valuations across multiple lenders if needed

If you’re planning to buy, refinance, or invest, I can help you structure your application to avoid preventable declines.

📞 Rajat Kumar — 0447 336 396
📧 [email protected]
🌐 http://www.financecirclegroup.com.au

𝘛𝘩𝘪𝘴 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘵𝘢𝘬𝘦 𝘺𝘰𝘶𝘳 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘤𝘪𝘳𝘤𝘶𝘮𝘴𝘵𝘢𝘯𝘤𝘦𝘴 𝘪𝘯𝘵𝘰 𝘢𝘤𝘤𝘰𝘶𝘯𝘵.

07/12/2025

Most business owners aren’t sure what lenders really look for when assessing a business loan 👀

In this episode, I break down the key financial indicator that can strengthen (or weaken) your borrowing position, and how banks use it to assess your ability to repay.

If you want to understand how lenders actually judge business performance, this one’s for you.

🎥 Episode 6: How do banks look at cash flow vs. profit when approving loans?



𝘛𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘯𝘰𝘵 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦.

05/12/2025

Ever wondered how much super you actually need before starting an SMSF? 🤔

In this episode of “Questions I’ve Always Wanted to Ask My Broker,” I break down the one question everyone asks - and why it’s not as simple as hitting a target balance.

🎥 Episode 5: How much super do I need before it’s even worth considering SMSF?



𝘛𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘯𝘰𝘵 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦.

03/12/2025

Most people hear the word equity and assume they know what it means.

But in reality, many clients I speak with either don’t fully understand it, undervalue it, or aren’t sure how to use it safely.

Equity is one of the most powerful tools you have whether you're upgrading, investing, refinancing, or planning your next property move.

Used well, it can fast-track your goals.

Used poorly, it can create unnecessary financial pressure.

Here’s the simplest way to think about it.

Equity = Your property’s current market value minus what you still owe on your home loan.

From there, we look at two types of equity:

1️⃣ Total Equity

This is the full difference between your home’s value and your loan.

It’s the big-picture number that shows your overall wealth position.

2️⃣ Usable Equity

This is the portion a lender will actually allow you to access.

Most lenders will go up to 80% of your property’s value (sometimes more with LMI or specific strategies).

And this is where strategy matters.

Equity gives you options to grow your portfolio, reduce repayments, renovate, consolidate debt, or unlock your next opportunity. But accessing it also increases debt, so it only makes sense when your income, expenses and long-term goals align.

So the real question isn’t:

“How much equity do I have?”

The real question is:

“What’s the smartest, safest way to use it for my situation?”

If you’d like to understand your equity position or explore what’s possible, feel free to reach out - I’m always happy to walk you through it.

📞 0447 336 396
📧 [email protected]
🌐 http://www.financecirclegroup.com.au

𝘛𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘪𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘵𝘢𝘬𝘦 𝘪𝘯𝘵𝘰 𝘢𝘤𝘤𝘰𝘶𝘯𝘵 𝘺𝘰𝘶𝘳 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘰𝘣𝘫𝘦𝘤𝘵𝘪𝘷𝘦𝘴, 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘪𝘵𝘶𝘢𝘵𝘪𝘰𝘯 𝘰𝘳 𝘯𝘦𝘦𝘥𝘴. 𝘗𝘭𝘦𝘢𝘴𝘦 𝘴𝘦𝘦𝘬 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭𝘪𝘴𝘦𝘥 𝘢𝘥𝘷𝘪𝘤𝘦 𝘣𝘦𝘧𝘰𝘳𝘦 𝘮𝘢𝘬𝘪𝘯𝘨 𝘢𝘯𝘺 𝘭𝘦𝘯𝘥𝘪𝘯𝘨 𝘰𝘳 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘦𝘤𝘪𝘴𝘪𝘰𝘯𝘴.

26/11/2025

Most people think their income alone determines how much they can borrow.
But there’s one overlooked factor that plays a bigger role and most borrowers have never even heard of it.

It’s called HEM – the Household Expenditure Measure.

In simple terms, HEM is the benchmark lenders use to estimate your minimum annual living expenses when you apply for a home loan.

Developed by the Melbourne Institute in 2011 using ABS Household Expenditure Survey data, it classifies 600+ everyday expenses into:

✔️Absolute basics – food, utilities, transport, kids’ essentials, communication

✔️Discretionary basics – childcare, dining out, clothing, everyday entertainment

✔️Non-basics – luxuries like overseas holidays and high-end services (usually excluded from HEM)

HEM is built from typical spending on essentials and a portion of discretionary basics, then adjusted for household size, income band and location (metro vs regional). It reflects a modest level of spending and is updated every quarter for inflation and changing habits.

Most Australian lenders (around 80–90%) rely on HEM as a core living-expense benchmark.

When you apply for a loan, your bank or broker compares your declared expenses (from your application and bank statements) to the HEM benchmark for your household type.
If your declared expenses are below HEM, the bank uses HEM.
If your real spending is higher, they must use your real spending.

Because each lender has its own HEM tables and policy on things like investment property costs, health insurance and private school fees, two banks/ lenders can give you very different borrowing outcomes on the same income.

I see HEM affect applications every single week and often in ways borrowers don’t expect.

If you’d like to understand how lenders apply HEM in your situation and which lenders may align better with your profile — I’m here to help.

📞 0447 336 396
📧 [email protected]
🌐 http://www.financecirclegroup.com.au