Frank Collum - Senior Mortgage Consultant Australian Mortgage Options

Frank Collum - Senior Mortgage Consultant Australian Mortgage Options Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from Frank Collum - Senior Mortgage Consultant Australian Mortgage Options, Loan service, Sydney.

01/08/2023

Well, the RBA has wisely decided to retain rates at the current level to avoid the possibility of the country going into recession.
However, I am still concerned that the Australian treasurer went around to the banks seeking advice as to how they could reduce the impact of high interest rates on borrowers. Funny, I thought it would be up to the treasurer to come up with an answer, not the banks who are out to make their profits as big as possible.
One change I think the government needs to address is the current ridiculous policy implemented by the RBA & other regulatory authorities such as ASIC & APRA whereby all lenders have to add a ‘stress’ rate of 2.50 - 3.00% to the actual interest rate they are looking to charge new borrowers. If any new borrowers want to borrow @ say 6%, the lender has to qualify them @ 8.50-9.00% which is extremely onerous on borrowers. When rates were 2% a couple of years ago, we were qualifying borrowers @ 4.5% which was OK but with rates now @ approx 6%, the policy should be removed. Fortunately, at Australian Mortgage Options (AMO) we have a special product which qualifies clients at the actual rate with no stress margin of 2.5% added. It makes a huge difference & has allowed a number of my clients to either borrow more than they would have been entitled to, so gave them the ability to get into the property market or refinance their existing loan from another funder when they were not able to, due to the extra 2.5%. If you want to have a chat about your particular scenario, please get back to me on 0479173266 or [email protected].

28/06/2023

OK, the EOFY is upon us. If your accountant suggests setting up a Self Managed Super Fund, we can help. If you already have a SMSF & are looking to purchase a property via that SMSF, we can also assist. As you may know, any new loan application automatically attracts a ‘stress’ rate 2.5% -3% above the interest rate quoted. In other words, if you are looking at an interest rate on your SMSF purchase of say 7.5% on a 5 yr fixed rate, the application will need to be assessed at 10% at least. That will restrict your borrowing & therefore your buying capacity. Here at AMO we have access to a 5yr fixed rate from 6.99% with the ability to break the fixed rate term after 3yrs to a variable rate if those rates have come down. There are no break costs to do this. Also, we DO NOT add the stress rate when qualifying. We assess your application @ 6.99% when the LVR is < 70%.
No SMSF, but you want to refinance or purchase an owner occupier property & having trouble getting the funds you require because of the stress rate?
We also have fixed 5yr rates from 6.39% for loans

07/02/2023

So, here we go again, another .25% interest rate rise on variable loans. For those of you out there starting to hurt, please look at refinancing now as there is probably another 2 rate rises to follow in March & April. That will take the average of the Big 4 banks Standard Variable Rate above 7.5%. That will be an increase of 3.75% in the cash rate in 12 months. On a loan of $750,000 that’s an increase, just in interest, of $2,343.75 per month, not including the principal reduction. So in the past 12 months borrowers would have needed a pay increase of $28,175pa AFTER tax to maintain the status quo. Of course on top of the interest rate rises you have now received your credit card statements showing you how you overspent over the Festive Season…….double whammy!
Here at AMO, our rates start @ 4.74% for a P+I variable owner occupier loan & 5.04% for P+ I investment loans. These rates are prior to today’s announcement as the funders haven’t confirmed their new rates yet.
But with variable rates possibly rising again in March & even April, you may need to consider a fixed rate for 1 or 2 years to avoid those extra rises. Ours start @ 5.19% for owner occupiers & 5.39% for investors. These ar P+I over 12 months with an LVR

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Sydney, NSW
2234

Telephone

+61479173266

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