Short answer, yes it is possible if you have enough equity in another property you own, or you have family members who have equity in a property that they’re willing to give you access to.
The people who are eligible for this would fall into one of two categories:
– You have substantial equity in another property you own.
– You have parents or relatives who have equity in a property that they’re willing to give you access to.
If you needed your car repaired you’d go to your local mechanic or try to call around to find one that thinks they could solve your issue. You’d take the time to drive there, hope they can find the problem, and then you’d hope it isn’t going to cost you more than it should. If they can’t fix it then you have to find another mechanic and start the process all over and still be unsure whether you're over-paying.
But what if you could speak to an expert who knew exactly how to fix all your cars issues and could tell you exactly which mechanic would fix your car the best at the lowest price and organise the logistics of getting it repaired? Would you not want to deal with that expert? (not a bad idea)
Banks are the mechanics, you have the broken car, and Financial Engineers are the experts. We bring all your options to your doorstep, saving you time, money, and a potential massive headache. You can be confident you’re getting the best deal on the market. How good is peace of mind huh? Don’t make the classic mistake of walking into your bank thinking they’re going to give you the best deal because you’re a “loyal customer”. Speak to an expert who can show you 40+ options instead of just one.
This is tough to give a short answer for but what's important to understand is that every bank has a different way off assessing your situation meaning your borrowing capacity can vary greatly between lender options.
Each bank will look at your employment situation, income sources, monthly expenses, existing liabilities, marital status and number of dependents when calculating how much you can borrow. Each lender also differs in how they treat each of these factors so you can get wildly different outcomes with each bank based on the exact same scenario.
To make things even more complex, the banks will apply a buffer of between 2-3% to their actual interest rate when assessing your capacity, so if the actual rate you’d get is 6%, the banks could be assessing your loan capacity at a rate of 9% rate!
You can check out our Borrowing Capacity calculator in the 'Calculators' tab above to get an idea of how much you could borrow or drop us a line and we’re happy to do the legwork for you to calculate your capacity and work out your best options.
This is sort of like asking how long is a piece of string?
It all depends on your income, your savings, your assets, your liabilities, how many kids you have, where you live, your basic livings expenses, etc. You can use our Borrowing Capacity Calculator to get a pretty good idea of how much the banks would loan you based on your current position, or reach out!
Great question. Difficult answer.
The answer is more of a “rule of thumb” than a hard and fast rule. For starters, here are some basics:
– Loan amount at or below 80% LVR.
– Property is an owner occupied.
– The more you borrow from a lender the better. (In other words, have all your borrowing with one lender)
– Talk to an experienced mortgage broker who knows how to negotiate rates
If your home loan is more than 2 years old, chances are you’re no longer on the most competitive rate. Drop us a line so we can do a quick Home Loan Health Check at no cost to you.
Good question! In most cases there's absolutely no out-of-pocket expense for our services as we can charge an origination fee to the lender that you choose to go with after your loan is settled.
We are remunerated by lenders for introducing a suitable customer to them and for doing much of the leg work that would otherwise be done by one of their staff. This model has meant Aussies have been able to access more choice and lower rates over the last couple of decades and the lenders are happy to pay the origination fee because it’s costing them less to find and on-board new clients.
In short, we're legally bound under the Best Interest Duty Act 2021 to put our clients' needs before our own with hefty fines of up to $1,050,000.
But more importantly, we value the relationship with our clients who keep our business going and will always do the right thing by them to maintain that trust.
Plain and simple, it is against the law for us to recommend or assist you with an application for an unsuitable loan.
We’re also here for the long-haul - we've been operating for 10 years servicing many of the same clients and their families throughout that period so certainly have no interest in losing our clients' trust. We take every pre-caution to make sure any loan product is suitable and we can’t stress how important it is that you disclose your full financial position and answer all questions honestly so we can do so.
Well, the short answer is generally 10% of the purchase price.
Most lending institutions will cap the maximum LVR for investment loans at 90%, although there are some lenders which will allow less than 10% deposits in some circumstances. The primary downside of doing less than a 20% deposit is that you have to pay mortgage insurance and are penalised for the interest rate. Some lenders waive the mortgage insurance cost entirely for certain professionals – making the idea of doing only a 10% deposit for investors even more attractive. Primarily the LMI waiver extends to medical professionals and lawyers however there are a few that extend this to accountants and engineers.
Offset accounts have become an extremely popular loan feature and we would recommend them in most lending scenarios where it is an option.
Having an offset account linked to your owner-occupier mortgage can significantly speed up the process paying off the principal of the loan - just check out our Repayment Calculator in the 'Calculator' tab to see how it works.
Having an offset account linked to an investment loan can also be very advantage in reducing the interest you're paying while also keeping cash available which can be withdrawn easily without impacting the tax-deductible of the debt.
If you have a mortgage on the property you live in, you'd always want any spare cash sitting in the offset account for that loan before parking it in an investment loan offset. Why leave cash in the investment offset which is tax-deductible when that cash could be in the owner-occupied offset account offsetting the non-tax deductible debt? We don't offset ‘good debt' until you have no ‘bad debt’.
We'll take you through how to structure this through the loan and settlement process to make sure you're best set up for what you're goals are.
An investment is like any other business venture, it can either make money or lose money. Negative gearing is when your investment costs more than it makes; positive gearing is when your investment makes more than it costs.
A loss can be used to reduce your taxable income which will reduce the amount of tax you pay. However, you are only reducing the tax you pay because the income from your investment isn’t covering your costs so you would still need to make up for the negative cash flow from other income sources.
Negative gearing should be viewed as more of a 'silver-lining' to a not-great period in the investing journey but should never be the aim of any savvy property investor. Why take a loss when you have the option to take a gain?
We're not fans of paying more tax, but doing so is the best indicator that you're MAKING money, not losing it.
Easy answer...
Financial Engineers!
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