Andrew Tinkler Liberty Adviser - Mortgage Broker Hampton

22/09/2022

Wishing you a game-changing weekend. No matter which team you’re supporting, we’ve got your back with lending solutions to help you score your next goal and .

07/09/2022

Why you may want to consider reviewing your current mortgage.

I went through a little financial exercise this morning with an existing client. She had purchased a home for $750,000 in early 2018 with a $600,000 mortgage. She had taken out a 30 year Variable rate loan, repaying Principal and Interest. Earlier this year, her repayments were $2,290 per month.
At the time, the Reserve Bank of Australia’s (RBA) official cash rate was at a record low of 0.10%.

As everyone is aware, the RBA have subsequently raised the official cash rate over 5 consecutive months, to its current level of 2.35%. As could be expected, her Bank has raised their Variable interest rate on existing loans lock-step in line with the RBA increases. Based on the comments from the Reserve Bank Governor, she thinks these interest rates may go higher over the next few months.

Her monthly repayments have so far increased to $3,036 per month, which is almost $750 above what she was paying early this year. She is concerned that further increases of the RBA rate will put her in mortgage stress. (Following the global financial crisis of 2008, the RBA rapidly reduced the cash rate, and once comfortable that the financial system was recovering, raised the rate back to 4.75%).

My client wanted to know if she has any options.

Since early 2018, the price of property in Melbourne has increased significantly. Using industry valuation data, her property may now be worth $913,000. Because she has been making Principal & Interest repayments in the 4+ years since she took out her home loan, the principal outstanding (amount owing to the Bank) has reduced to $536,400. And because her original loan was created at a Loan to Value ratio (LVR) of 80%, the interest rate applied by her Bank was at the ‘high’ end. This same Bank offers a lower rate on loans with an LVR

05/07/2022

With today's announcement that interest rates are rising again, it's nice to be reminded that 40,000 new places under the Federal Government’s Home Guarantee Scheme (HGS) have become available to help Australians to buy their own home.

https://www.nhfic.gov.au/media-resources/media-releases/australian-government-home-guarantee-scheme-40-000-new-places-released-on-1-july/ #:~:text=From%201%20July%2C%2040%2C000%20new,Family%20Home%20Guarantee%20(FHG).

From 1 July, 40,000 new places under the Federal Government’s Home Guarantee Scheme (HGS) will become available to help Australians to buy their own home.  

01/04/2022

Don’t forget to wind back your clocks for the end of and make the most of that additional hour!

18/03/2022

This year’s theme is Keep Calm, Stay Wise, Be Kind – three fundamentals to happiness. Consider doing something for yourself and someone else that makes you smile today!

18/02/2022

Well it's not too late. Yet!

Mortgage brokers say rates are rising faster than homeowners and potential home buyers can lock in better deals, but there are still options.

20/01/2022

Here's an interesting article for those looking at investment opportunities, but with less than $100,000 for a deposit.

Got a spare $100,000? New research has identified the top 20 property investment locations across Australia for investors who have saved the milestone deposit.

07/10/2021

What impact will APRA's tightened home loan standards have on the average borrower?

Today APRA announced that they would be forcing banks to be more conservative when assessing how much new customers can borrow (https://www.theage.com.au/business/banking-and-finance/apra-unveils-loan-curbs-for-new-customers-as-housing-risks-grow-20211006-p58xlt.html). To achieve this, they will require banks to test whether customers can manage repayments at an interest rate 3% higher than the actual rate of the loan.

What will be the effect on an average borrower?

Currently, most lenders on my panel already apply a margin of 2.5% on the actual interest rate. So, if you are applying for a loan at 2.5%, they will calculate your ability to service the loan (meet repayments) assuming a 5% interest rate (2.5% actual rate plus 2.5% conservative servicing assessment margin). For a $500,000 loan, this means they will require that your income supports a repayment of $2,684 per month (assuming a 30 year loan where you are repaying Principal and Interest). Increasing the margin to 3%, as required by APRA, will means the lender will apply a 5.5% rate (2.5% loan rate plus 3% APRA required margin), which comes out at $2,839 per month, which is 5.7% higher than you would have been required to show you can repay previously. Your actual repayments aren't effected, but the amount you can borrow very well may be!

If you want to learn more, I'd be happy to help. 👨‍🏫

30/06/2021

If you’re looking to invest and interested in how you can make your super work harder with the help of an SMSF loan, this is one video you don’t want to miss! Watch now for all our tips on how to and invest with an SMSF loan bit.ly/2R9NjHl

https://liberty.com.au -- Heidi Armstrong explains all you need to know about SMSF loans: How they work, and how to go about getting one.Australians love inv...

29/06/2021

Looking to invest in property using your SMSF? As an experienced broker, I can step you through the requirements of an SMSF loan to help fund your next purchase. Reach out today to find out about our competitive rates and flexible features. https://j.mp/3zV9dzU