Stephen Simone - Pride Financial Group, 388 Bay Street, Port Melbourne (2026)

06/06/2023

LOAN SETTLED - $750,000 (Upsizers - Young family) 👨‍👩‍👧‍👧🏘

Did someone say COVID baby boom? These clients just welcomed their second child and were in need of more space for the growing family. With a minimal deposit, parental leave considerations and having one applicant working for a family member, it was definitely not a straight forward scenario.

The clients found a house they were interested in and wanted to place a pre-auction offer. Due to the urgent time constraints and with no time to complete a pre-approval, we conducted a pre-purchase lending due-diligence check which gave the clients the confidence to place the offer which secured the property pre-auction!

Despite the complexities regarding the incomes, needing to rely on guarantor security and no pre-approval, this was a great example of how PFG's quality, capability and importantly speed, provided the clients with a competitive advantage over other potential buyers whilst also obtaining a $3,000 cashback!

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

02/06/2023

⚠️⚠️LENDER CASHBACKS BEING PULLED FROM MARKET⚠️⚠️

We are skipping the usual Friday news of the week to remind those who haven’t reviewed their home loan in the past 18 – 24 months (or longer), that there are quite a few lenders that have already, or are about to pull their refinance cashback offers from the market.

Come EOFY, there will only be a small handful of lenders providing cashback offers beyond July which can still technically be pulled at any time. As such, it is important now more than ever to review your lending situation, particularly when considering the latest inflation data and cost of living crisis!

FOR ANYONE CURRENLTY IN A FIXED RATE LOAN:
If you would like to discuss if these cashback offers are suitable for your situation, now might be the right time to explore your options. There are a number of lenders that are allowing you to settle by September and even November at the latest. As such, if your fixed rate is expiring in or around that time, it might still be worth considering. Noting that there are some restrictions on the application submission, approval and settlement date.

Whether you look to work with the banks directly on your own or via a broker, the most important thing is to get on it ASAP.

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

01/06/2023

DID YOU KNOW?

Getting your home loan sorted through the banks directly or via a mortgage broker has been a hot topic of discussion within the industry and tough choice to make for many consumers. There are key differences to be mindful of between the two, the most important being, who is actually required to act in your best interest.

If you’d like to find out more about how a mortgage broker can help you, get in touch below:
📧 [email protected]
📱0447 712 226

30/05/2023

LOAN SETTLED - $488,000 (First home buyers - Young couple) 👨‍❤️‍👨🏡

There are two key things to keep in mind when buying an apartment off the plan:
1. Risk of lower valuations (resulting in greater deposit contribution) AND
2. Very long settlement timeframes (exposing the client to changes in lending criteria, rates/offers and personal circumstances)

It was 12 months between contract signing and settlement for this young couple. In this instance, the valuation came in lower than the contract price which is not uncommon for apartment purchases. Having anticipated that this scenario may experience these types of issues, we made sure to get moving on this application as soon as it was practical to do so...

WIth our foresight, proactive planning and preparation, the lead time from application to settlement ensured that despite the low valuations and number of policy and rate changes, we were still able to settle on time along with a $3,000 cashback!

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

26/05/2023

So the VIC state budget took most of the media attention this week however there were a few changes on the home lending front that may have slipped through the cracks for the most part.

Westpac have come out with a policy this week that makes it easier for people to refinance their home loan under certain circumstances and may go some way to avoid being locked at your existing lender.

NAB on the other hand snuck in a 0.10% rate increase on new to bank customers. Not the first time NAB and other banks have introduced an out of cycle rate rise.
In terms of the budget, the focus was on repaying the state debt.

Despite some spending cuts and increased taxes (see the article for full details), the total state debt is expected to grow from $116 billion to $171 billion by June 2027. Like many homeowners, the state government (tax payers), has also been caught out by the ever increasing interest rates with the state debt interest increasing from $5.56 billion to $7.98 billion by 2026-27.

Be sure to check out the articles in full below:
============
1. https://www.news.com.au/finance/economy/interest-rates/westpac-to-lower-stress-test-on-some-refinance-applications-as-interest-rates-skyrocket/news-story/3adb48ff6a3df96179502f0870771a6a
2. https://www.abc.net.au/news/2023-05-23/victoria-budget-2023-spending-winners-and-losers/102372722
3. https://www.brokernews.com.au/news/breaking-news/nab-makes-second-rate-move-in-less-than-two-weeks-282521.aspx

23/05/2023

LOAN SETTLED - $590,000 (First home buyer - Young professional) 👨‍💼🏡

Being a first home buyer in a rising market can be very difficult and can unforuntatley take some time to find the right house and then to try buy it at the right price. This patricular client first engaged PFG a whole year and a half before buying and settling on a property!

During this time, we had conducted two pre-approvals that had lapsed whilst also needing to contend with increasing interest rates. Ultimately, rather than continually submitting pre-approvals and negatively impact the clients credit file, instead, we conducted detailed pre-purchase lending due-diligence and gave the client the confidence to proceed with placing offers.

Utlimately this client ended up with a lender offering a no ongoing fee, low rate offer that was a market leader out of the major banks all whilst being able to achieve his first home purchase!

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

19/05/2023

There has been some talk this past week as to whether or not the VIC government will look to replace stamp duty with an annual land tax instead. It seems however to have been put on the back-burner (for now at least)
We are also starting to see a shift in lender offerings particularly around refinance cashback offers as more and more lenders exit from this acquisition strategy. Some food for thought for those who have not reviewed their loan in the last couple of years!
Finally, we are seeing more of the same commentary from the RBA around rate increase expectations. The language being they will do what is necessary to reduce inflation albeit dependent on economic metrics. All eyes are on the next round of wage, unemployment and inflation data!
Be sure to check out the articles in full below:

============
1. https://www.theguardian.com/australia-news/2023/may/16/daniel-andrews-rules-out-replacing-stamp-duty-with-an-annual-tax-in-victoria
2. https://www.news.com.au/finance/business/banking/two-of-the-big-four-scrap-2k-refinancing-cashback-offer/news-story/ed1987e54294e3247910e60149322a20
3. https://www.9news.com.au/national/rba-says-more-rate-increases-may-be-required/804e72f0-2455-4cd4-938f-8e65c7a1c3de

18/05/2023

DID YOU KNOW?

What exactly happens when the interest only period ends? A few things happen but most importantly the repayments significantly increase! Proactive review of your loan is essential to avoid unexpected financial stress.

If your interest only period is expiring and need assistance navigating the renewal process, get in touch below:
📧 [email protected]
📱0447 712 226

16/05/2023

LOAN SETTLED - $656,000 (Renovators - Young couple) 💑🛠

Another exmaple whereby the requirements and objectives of the clients were at the forefront of the solution as opposed to an out of the box approach.

These clients were not only looking to refinance to find a better offer but were also looking to renovate their owner occupied property. Given the scarce availability of building materials, the clients were seeking interest only loans to maximise their cashflow during the course of the reno whilst also ensuring their balance will not reduce.

Being for an owner occupied property, interest only loans are not commonly offered by many banks at competitive rates. Nevertheless, PFG was able to source a lender and product for the clients that resulted in obtaining the interest only lending and the cashout funds required for ther reno whilst at the same time, significantly reducing their interest rate.

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

09/05/2023

LOAN SETTLED - $495,000 (Cost saver - Young professional) 👨‍💼💵💵💵💵

This was the third time we were able to assist this client with his finance needs following the original purchase of his owner occupied property and an existing refinance.

This client scenario was a perfect example of how we look to build relationships beyond helping clients move into their first home. It also highlights the importance of how we proatively engage our clients to ensure they are on a fit for purpose loan at a given point in time.

If a clients primary objective is to save money on their banking, when looking to refinance, we look for a combination of low rates, low fees and cashback opportunitues to take advantage of. This was the second refinance we assisted the client with in the past few years and has obtained $8,000 in cashback offers let alone the continued interest rate savings as a result!

Your existing bank is not going to let you know there are better offers out there so let us help you find the deal that is right for you!

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

04/05/2023

DID YOU KNOW?

If your fixed your home loan is on a low rate, be aware that when the fixed period ends, you may be in for quite the shock! This could see your monthly repayment significantly increase without much warning.

If your fixed rate loan is coming up for renewal shortly and would like to investigate your options, get in touch below:
📧 [email protected]
📱0447 712 226

02/05/2023

LOAN SETTLED - $629,000 (First Home Buyer - Young Family) 👨‍👩‍👧🏠

Where to start with this one... It was not the largest loan we have had to deal with but certainly one of the more complex! So much so the client walked into the branch of their existing bank who basically advised it was too hard and to go see a broker!

It was good planning that ensured the client did not lose his $70k deposit as this application was reliant on so many things lining up in perfect sequence and on a number of critical factors as below:
- Off the plan apartment purchase settling in 4 months time during rapidly increasing interest rates
- Needing to rely on the bank accepting a builders rebate for deposit funds
- Applicant being New Zealand citizen but still needing to rely on reduced stamp duty and first home owner grant benefit
- Needing to partially refinance an existing car loan to another secured personal loan product so as to minimise repayments but still have enough cash funds for settlement
- Clearing of ATO tax debts
- Needing to rely on one year tax returns
- PLUS many other factors at play

Oh, and let's not forget, needing to achieve all this while the builder of the apartment block was going into liquidation!

Despite all the hurdles and everything working against the client in this situation, we were still able to develop a solution that ensured the client settled on time without any loss of deposit or settlement penalties! Another example of early and detailed planning making the difference.

If you'd like to see how we could help you, please reach out!
📧 [email protected]
📱0447 712 226

Stephen Simone - Pride Financial Group

06/06/2023

02/06/2023

01/06/2023

30/05/2023

26/05/2023

23/05/2023

19/05/2023

18/05/2023

16/05/2023

09/05/2023

04/05/2023

02/05/2023

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