Ray Simpson - Mortgage Australia

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Ray Simpson - Mortgage Australia

I'll help you get a better home or investment loan at no cost to you from dozens of major lending institutions.

I am committed to helping North Ryde residents get the best loans. I hold qualifications in Finance and Mortgage Management, as well as Financial Planning. These are vital in providing accurate, strategic, and timely advice to my clients; in addition to my many years in business administration and management. I simply can’t afford to get a bad reputation in North Ryde where I have lived for over 1

4 years. That is your guarantee that I will work hard in your best interests, not the bank’s. The future of my business and my personal standing in my home suburb depends on it!

30/03/2022

If you are worried about rates rising - a Split Loan may be a good choice.

I have been receiving many enquiries this month as a result of the last RBA announcement and movement of interest rates.

It's a very confusing time for our clients at the moment and their biggest question right now is should I fix my loan or not?

Some clients are choosing to set up a split loan facility.

This means that you can fix a portion of your loan and leave the rest of the loan on a variable interest rate.

This provides more flexibility than fixing your whole loan while at the same time gives you some peace of mind that a portion of you loan repayments will be at a regular and predicted amount each month.

If you want a quick look to see what your payments might look like using this facility, please check our split loan calculator on our website and then call me if you are interested in further discussions.

I am here to help you achieve your best financial outcome so please call at anytime for help or more information.

28/03/2022

Here is why you shouldn't scrimp on loan repayments:

With household costs on the rise, many mortgagees are struggling to balance their budgets. It's not surprising more Australians are skipping mortgage payments to help make ends meet.

However, missing loan repayments could land you in a bigger hole. Not only will you be up for late fees - ranging from a manageable $9 to a stinging $195 per overdue payment - but you could be adding thousands of dollars of extra interest to your debt.

At worst, a string of missed mortgage payments could see the bank recalling your loan, forcing a fire sale of your home. Even a couple of missed payments could put a red flag on your credit history, which is going to cramp future borrowings.

One of the best ways to reduce the risk of mortgage stress is to give yourself a buffer on your budget. In Australia, it's recommended borrowers' mortgage repayments make up no more than 30% of household income. The problem is many home owners borrow to the edge of the threshold when interest rates are low - as they are now - leaving no room for inevitable rate rises and other increased living costs.

Instead, budget for mortgage repayments at a 9% interest rate, a long-term average that accounts for peaks and troughs over the long run. When rates are low, stick the extra funds into your mortgage. You will not only save on interest but will have established a safety net, which you can draw on if needed when rates run high.

If you are already feeling the pinch and struggling to make payments, talk to a Mortgage Broker sooner rather than later. A Mortgage Broker can help negotiate with the lender on your behalf and can look into other loan options to ease the squeeze.

26/03/2022

Looking to get away but need some extra funding? Whether it's a destination wedding, a trip with the family or a last-minute getaway, our team can help arrange a low rate personal loan to finance your next holiday.

Our partners offer a fast, simple process and access to funds typically within 48 hours. Don�t delay, get in touch today!

24/03/2022

How to take advantage of a buyer's market:

One of the keys to success in the property market is TIMING.

So how do you know when the time is right to step up on the property ladder?

For the answer, download our guide to "Taking Advantage of a Buyer's Market".https://www.mortgageaustralia.com.au/email/files/takingadvantageofabuyersmarket.pdf

21/03/2022

We all know that interest rates are cyclical and that when rates go down they will eventually go up.

As a result, lenders have been assessing loan applications on the ability of borrowers to make repayments at interest rates approximately 2% higher than those currently available.

While lenders have been assessing your ability to make repayments at a higher interest rate, what is the reality of the fi nancial impact of your regular loan repayments?

To make sure you are ready, click here to read my "What goes down, must come up" article.https://www.mortgageaustralia.com.au/email/files/whatgoesdownmustgoup.pdf

20/03/2022

Should you buy or build your next home?

Many buyers struggling to find the right home are going back to the drawing board and building rather than buying an existing home.

There are obvious benefits to a brand new home: you can build exactly what you want and enjoy shiny new surrounds, with no wear and tear costs for years to come. But there can be downsides to creating your castle.

Let's look at some of the pros and cons of building versus buying.

THE PROS OF BUILDING

You get what you want

The great pleasure of building your own home is choosing what you want for today's lifestyle. If building, you have two options: a project home or a custom-built one.

Project homes offer a suite of designs, usually with options to mix and match or upgrade some features. They are cheaper than custom-built homes because the builder works on an economy of scale for the building materials and products and knows exactly how much money will be made on each design.

The other benefit is that you can tour display villages and see exactly what you will get.

A custom, or architect-designed, home will cost more but allows you to create your dream home. Just remember, the higher the quality of your materials and fittings, or the harder they are to source, the higher the cost. Size also matters, with builders working on square meterage.

You can go green

The Nationwide House Energy Rating Scheme requires all new homes to have a minimum energy rating of six stars (one being the lowest and 10 being the highest), which means lower energy and water bills for your household, plus the feel-good factor of helping the environment.

Green design includes the home's aspect to make the most of natural cooling and warming, water tanks, energy efficient lighting and better-insulated windows.

You can be part of a new community

In a world where increasingly few of us know our neighbours, a new home in a new estate can help knit you into a community.

New estates are generally located in high-growth areas that attract young families, a plus for those with kids who want to feel part of a neighbourhood.

These estates are also carefully planned, often with new parks and purpose-built shopping centres. Some are even large enough to have their own schools, heightening the sense of community for residents.

THE CONS OF BUILDING

Time and stress

Building a new home, even if you opt for a project design, requires your input and time. Even the simplest projects can take their toll, especially if couples disagree about certain fixtures, bad weather impacts timelines or the builder gets something wrong.

Busy people might struggle to find enough time to make decisions, liaise with the builder and other contractors and visit the building site. If that's the case, buying an existing home might be a less stressful option.

Locating land

While new homes are generally part of new communities, the trade-off is that the land is often located in outer suburbs, with fewer public transport options and longer commutes.

Finding vacant land in established areas is nigh impossible in some cities, so older homes in poor condition are being snapped up and knocked down. For many, the cost of buying and demolishing a home and building a replacement is prohibitive.

If you are looking to settle in an established suburb with ample infrastructure and amenities, buying a home and renovating it to suit your needs may be more affordable and convenient.

18/03/2022

Make your house a home. Contact me for a low cost home improvement loan.

16/03/2022

Avoid these Common Mortgage Mistakes:

For many homeowners, it's easy to get caught up in all of the excitement, and stumble into one or more of these embarrassing mortgage mistakes. Unfortunately I see it very often.

Getting a Standard Variable Rate loan:

Banks love nothing more than putting customers into a Standard Variable Rate. They heavily promote the extra flexibility and offset facility. The reality is it is very rarely worthwhile for the average customer to pay the higher rate for the extra features.

Even if you have a large amount of money to put in an offset account, you could achieve much the same thing with a basic loan with a redraw facility and pay a much lower interest rate.

If you want a fully featured loan, compare the costs of these extra features to the lender's cheaper products. Or better yet, push for a liefetime discount package on the standard loan and get the best of both worlds.

Honeymoon Rates:

There's an old saying - 'if it sounds too good to be true, it probably is'. This is the best way to describe 'Introductory Rate' home loans. Don't get me wrong, there are some great offers out there, and a low rate in the first year or two can make all the difference to your weekly budget. But to avoid future pain, it's best to base your comparison on the rate that you will pay when the honeymoon is over.

Rate Rises:

Part of the loan application process is to work out what you can afford to repay, based on current interest rates. But did you consider what would happen to your budget if interest rates were to increase? Many Australians have been caught out in the past, with disastrous consequences. The best way to avoid becoming one of these cautionary tales is to be mindful of both your purchase price, and the impact that future rate rises will make on your loan repayments.

Savings Fatigue:

It was a long and difficult journey to save that deposit. You might have taken on extra work, missed out on overseas travel, avoided fine dining or sacrificed your cable TV. But now is not the time to let your hair down - especially if you haven't reached your settlement date. After you hand over the deposit, you'll still need to ensure that you can cover stamp duties, conveyancing fees and moving costs. For the unlucky few, there could even be unexpected maintenance costs after you settle. (It's funny how the hot water service always seems to hang in there until the worst possible moment). So try to keep your good money habits going a bit longer.

Don't blow the budget:

Most of us take the time to think about how much we want to spend before we start making an offer on our next home, or gesturing wildly at an auction. But sometimes we get carried away and don't want to risk missing out on our dream home. So who really wins in this scenario? The vendor and the real estate agents of course! Not the proud new home owner, who has just committed to a purchase price and mortgage that he can't really afford.

Inflexible loans:

Just like electronics and furniture, when it comes to a mortgage you get what you pay for. There are some very cheap (and nasty) options available to borrowers. Some of these might seem appealing but it's important to consider the features that you need in a loan - today and a few years down the track.

14/03/2022

Here are some Super Savings:

In March this year Australian workers had more than $1.8 trillion stored away in superannuation funds, in part thanks to a system that generally requires employers to pay a contribution on employees� behalf. From July 1, this required employer contribution jumped .25% to 9.5%.*

For many wage and salary earners who benefit from these compulsory super contributions, super is often something they think about once a year when their statement arrives in the mail. But we could all benefit from paying more attention to what are essentially our future funds.

According to MoneySmart Week, a not-for-profit movement set up to boost our financial literacy, one of the best ways to get a better handle on your superannuation is to consolidate your super accounts.

We�re part of a group that is proud to be a key supporter of MoneySmart Week (September 1-7) set up to encourage Australians to take simple steps to make their money work harder and go further, now and well into the future. Here�s our guide to building a better financial future by consolidating your super funds.

Why Consolidate?

Firstly, you may save by paying just one set of fees. Secondly, superannuation balances build on contributions and compound interest. The more you have in your best-performing fund, the higher your returns, which are rolled back into your account.

Locate Your Super:

The first step is to find out where your super is located. If you have worked for multiple employers, especially since the compulsory super guarantee came into effect in 1992, then chances are you have more than one super account. If you are unsure what you have where, visit the Australian Taxation Office�s SuperSeeker service and follow the steps to source your funds:

https://www.ato.gov.au/calculators-and-tools/check-your-super/

Pick Which Fund?

Most people can choose which fund their super contributions are paid into. However, if your super is paid as part of certain industrial relations agreements or you are in a defined benefit fund, you may not be able to choose. Do some research if you are unsure.

A superannuation fund is a vehicle to hold your investments, so you can generally choose investments within your super fund according to your needs and appetite for risk. Remember, superannuation assets are usually held over a very long term.

So, when doing your research, look at a fund�s performance over many years, not just the recent one or two. You should also compare annual fees, including termination or exit fees, should you wish to move your funds again.

You can also manage your own super with a self-managed super fund (SMSF). These funds are broadly treated the same as any other, only you make the investment decisions. It also means you carry all of the risks and the fund�s legal responsibilities, so you need to be prepared and able to devote the necessary time and effort into making sure you manage your fund appropriately.

If you�re considering an SMSF, make sure you get the advice of a qualified professional.

Do the Paperwork:

There is some paperwork required to transfer your super between funds but it�s worth the effort to consolidate. You can either contact the super fund you are transferring to for the necessary forms or do it all online through the ATO�s SuperSeeker service https://www.ato.gov.au/calculators-and-tools/check-your-super/

Your current fund will process the transfer and you will then typically receive a rollover benefits statement. Check it�s accurate and keep it with your superannuation paperwork.

If you have multiple accounts to consolidate into one, you will need to complete the same process for each.

New Job?

If you start a new job, make sure you let your employer know you have a preferred super fund. Your employer will provide forms outlining which details they require. It�s also worth checking out your new employer�s preferred fund, as it may perform better than yours. Just make sure you won�t be penalised by high exit fees or if you are, make sure they are offset by gains in the long run.

* APRA - March 2014 Quarterly Superannuation Performance.
** Tax information: the information in this article does not constitute advice. As taxation legislation is complex, we recommend you speak with your financial advisor, tax advisor or contact the ATO for further details and expert advice regarding your personal circumstances. https://https://www.ato.gov.au/calculators-and-tools/check-your-super/

12/03/2022

Introducing the new home building methods that can save you a lot of time and money.

In the past, prefabricated houses would connote images of tackiness and shipping container living, but prefab housing is now enjoying an avant-garde revival.

Today's prefab houses consist of high end materials, follow strict green building practices and are designed by leading architects. Often they have substantially better thermal ratings than brick homes, meaning they actually cost a lot less to heat and cool.

Some new builders even start with a traditionally built lower floor, then build a prefabricated second floor, being less expensive and much faster than building a standard two-storey home.

To find out more, download my short introductory PDF article to this style of home that is growing in popularity - Absolutely Prefabulous.

https://www.mortgageaustralia.com.au/email/files/absolutelyprefabulous.pdf

Address

Gilda Street, North Ryde
Sydney, NSW
2113

Telephone

+61411563706

Website

http://www.mortgageaustralia.com.au/mortgagebroker/northryde

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