All Posts By

Smartmove Support

All posts by Smartmove Support

How to invest in property through an SMSF

By | Tips

For some years, self-managed super fund members have been able to invest in residential property, as long as they follow strict guidelines. The first step is to have a discussion with an expert to determine whether investing through an SMSF is the most appropriate approach to property investment given your personal circumstances. If it is, the next step is to set up the SMSF, and using the services of a specialist is recommended. Do this before you start looking at an investment property to buy. Another tip is to be…

Read More

Lower, owner occupied, interest rates on all investment properties

By | Tips, Uncategorized

This client was able to get lower, owner occupied, interest rates on all their investment properties…. An existing client of Smartmove approached me to purchase multiple investment properties and build a portfolio. The borrowing capacity was very strong, and we didn’t require the rental income or tax benefits from the investment properties in order to satisfy the banks serviceability model for the lending request. When this is the case, there are some banks in the marketplace who don’t determine the interest rate by the purpose the property is used for,…

Read More

How to select a business loan

By | Uncategorized

Finance for a start-up For a startup company with no trading business or cash flow, it can be quite difficult to secure a business loan. An alternative is to take out an investment loan against the equity of your home or property. A lot of the banks don’t have much of an appetite for startups, so an investment loan would be a good alternative for anyone wanting to fund a new venture. It provides flexibility and you’re more likely to secure approval. Finance for quick cash flow Similar to a…

Read More

Explainer: how redraw and offset accounts can save you money

By | Tips

Redraw facilities allow you to deposit spare income into your home loan account, allowing you to redraw a sum equal to the extra repayment amounts in the future. In the meantime, the extra money paid will lower the amount of interest charged while still giving you access to your money. However, there may be restrictions on how much money can be withdrawn and when. For redraw, it depends on whether the facility applies to a fixed-rate or variable loan. Most institutions only allow redrawing from a variable-rate loan, or fixed-rate…

Read More

How to buy a house when you have a HECS or HELP debt

By | Tips

You can remember it now: sitting in a chair at the back of the lecture theatre, chatting to your friends and ignoring the debt that each day at university was plunging you into. But now you’re older and wiser, and reality has set in. You want to buy a property, but you’re unsure how your student HECS or HELP debt could impact your ability to take out a loan. When you apply for a home loan, you’ll need to reveal information about your liabilities, poor credit ratings and any other…

Read More

Explainer: Fixed-rate Loans

By | Tips, Uncategorized

When purchasing a property, borrowers can decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations. Fixed-rate loans usually come with a few provisos: borrowers may be restricted to maximum payments during the fixed term and can face hefty break fees for paying off the loan early. However, locking in the interest rate on your home loan can offer stability. For those conscious of a budget and who want to take a medium-to-long…

Read More

How to increase your borrowing capacity

By | Tips

Maximising the amount a lender will hand over to you isn’t about trying to take on unmanageable levels of debt. It’s a matter of taking a few simple but smart steps that could mean the difference between toiling in that ‘fixer-upper’ or owning your dream home. 1. Shop around for lenders Different lenders define income in so many different ways that it pays to use a credit adviser who knows their way around what’s included and what’s not. One lender may allow share dividends as income, while another lender may…

Read More

What you need to know about Interest Only repayments.

By | Tips

There are many occasions which are suitable for Interest Only mortgage repayments . For example, when you earn a significant portion of variable income such as commission/bonus, for investment properties when you have owner occupied debt, maternity leave or if you are self-employed. Banks don’t automatically grant Interest Only repayments and may only allow them in certain situations. You will pay a premium for interest only of between 30-60 basis points above a principle & interest rate for the same product. Generally, the maximum term is 5 years interest only,…

Read More

Debt to income ratios and why it may not be a good indicator of what you can borrow

By | Tips

Simply put a debt to income ratio is your total debts (including home loans, car loans, credit card limits etc) divided by your gross/taxable income. Borrowers will often ask what a bank will lend them as a multiple of their income. Six times income is considered reasonable but not necessarily an accurate indication of your borrowing capacity. And here’s why. Debt to income ratios or DTIs are used as a secondary borrowing capacity measure by Australian lenders. The primary measure is based on a household cash flow model. In essence a…

Read More

Fixed Rates versus Variable – the ins and outs

By | Tips, Uncategorized

When purchasing a property, refinancing or just renegotiating with your current lender, borrowers can generally decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations. Fixed-rate loans usually come with a few provisos: borrowers may be restricted to maximum payments during the fixed term and can face hefty break fees for paying off the loan early, selling the property or switching to variable interest during the fixed rate period. However, locking in the…

Read More
Call Smartmove