Devastating bush fires highlight need for property owners to undertake a financial check up

The devastating bush fires that have occurred over the last few weeks highlight the urgent need for property owners throughout Australia to undertake a financial check-up.

These bush fires have caused millions of dollars in damage to properties but unfortunately a large number of the affected property owners were either underinsured or in some cases had no property insurance.

The financial trauma caused by these bush fires has only added to the emotional turmoil of these unfortunate property owners have suffered.

It is a traumatic enough experience to have your property destroyed by a bush fire. However, it is even more traumatic if you don't have the necessary funds to rebuild the property due to lack of insurance.

This summer is shaping up to be a deadly bush fire season so property owners throughout Australia need to ensure that their properties are correctly insured as part of an overall financial check-up.

A financial check-up should also include a review of current mortgages.

With interest rates constantly changing and new home loan finance packages constantly coming onto the market, a home loan package which appeared very attractive a few years ago may now be superseded by more competitive or flexible products.

It may surprise property investors that there are a large number of home loan packages to choose from at very competitive interest rates.

Choosing the right home loan package can now be just as important as choosing the right location for your property. Choosing a better home loan can literally save you thousands of dollars over the life of the home loan or give you the opportunity to purchase additional investment properties.

A lot has happened in mortgage lending sector over the past year with APRIA relaxing lending restrictions especially for property investors.

In addition, the RBA has made three cuts to interest rates totalling 0.75% over recent months.

Lenders are now aggressively vying for business with highly competitive interest rates so property owners should shop around to get the best deal by utilising the services of a professional mortgage broker.

Property investors have been one of the major beneficiaries of this more competitive lending market and as a result they can now boost help boost their cash flow by obtaining more competitive housing finance.

A financial check-up can be used by property investors to identify other opportunities to boost cash flow especially if they own a number of investment properties.

For example, a major issue that property investors overlook is not fully claiming their tax depreciation benefits.

These tax depreciation benefits can amount to up to 60% of the overall value of the property over time.

It is never too late to claim these tax depreciation benefits as they can be claimed retrospectively. A retrospective tax depreciation report can deliver an investor thousands of dollars in unexpected tax benefits.

By Paul Bennion, Managing Director, DEPPRO

FLEXI 3.08% OO P&I

We're happy to announce a reduction on our Owner-Occupied Variable rate to co-inside with our current fee promotion. Along with a great low rate, we are still covering valuation fees up to $300.

Product features:

  • NRAS properties up 80% Refinance
  • Construction up to 95% For O/O
  • Construction of up to 4 units on one title
  • Bridging Finance Servicing on end debt only
  • No Credit Scoring below 80% LVR
  • Investment lending up to 90% I/O
  • Offset account available on all loans including fixed

Resicom Update

Please keep Resicom in mind for any urgent private deals as it was at this time last year when we were first approached about a $13M deal which we did in four days with no valuation so if something comes across your desk please let me know.

All the best for the Christmas and New Year's period.

Craig Robertson

E: craig@resicom.com.au

T: +61 3 9614 7333

26 lenders announced for First Home Loan Deposit Scheme

Twenty-six additional lenders have been appointed to the initial panel of the government's First Home Loan Deposit Scheme, including major bank Commonwealth Bank.

The National Housing Finance and Investment Corporation (NHFIC) has announced its full panel of lenders taking part in the federal government's First Home Loan Deposit Scheme (FHLDS).

Following on from the announcement that NAB had been chosen as the first major lender for the panel, CBA has been named as the second major bank to offer loans under the scheme, along with 25 non-major lenders.

The participating lenders will have the ability to write loans for first home buyers (FHBs) who have saved deposits as little as 5 percent, with the government set to guarantee the rest of the deposit under the FHLDS.

CBA and NAB will reportedly be able to issue up to 50 per cent of the 10,000 annual guaranteed loans provided per financial year, according to the NHFIC Investment Mandate.

The two major banks will be accepting applications for the scheme from 1 January 2020.

The other 50 per cent of guaranteed loans will be written by the other non-major lenders on the NHFIC lending panel.

The non-majors will be taking applications from 1 February 2020.

The full list of lenders on the panel, along with NAB and CBA, are as follows:

  • Australian Military Bank
  • Auswide Bank
  • Bank Australia
  • Bank First
  • Bank of us
  • Bendigo Bank
  • Beyond Bank Australia
  • Community First Credit Union
  • CUA
  • Defence Bank
  • Gateway Bank
  • G&C Mutual Bank
  • Indigenous Business Australia
  • Mortgageport
  • MyState Bank
  • People's Choice Credit Union
  • Police Bank (including the Border Bank and Bank of Heritage Isle)
  • P&N Bank
  • QBANK
  • Queensland Country Credit Union
  • Regional Australia Bank
  • Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank)
  • Teachers Mutual Bank Ltd (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
  • The Mutual Bank
  • WAW Credit Union

Applications for the scheme will begin on 1 January 2020 and can be made either directly to participating lenders or via the broker channel. The NHFIC will not be taking any direct applications.

According to the NHFIC, members of the panel have been chosen on the basis of competitiveness of offerings, geographic reach, customer care, and their ability to meet the deadline for the implementation of the scheme.

Further, the NHFIC and federal Minister for Housing and Assistant Treasurer Michael Sukkar have stated that members on the lending panel will not be able to charge eligible customers higher interest rates than equivalent customers outside the scheme.

Additional lenders may be "periodically" added to the panel after the scheme has launched, according to the NHFIC.

Panel will 'enable strong activation of mortgage broker channels'

Commenting on the news, Minister Sukkar commented: "The Morrison Coalition government is committed to helping make home ownership a reality for more Australians and to get them into the property market sooner.

"Today, the government welcomes confirmation from the National Housing Finance and Investment Corporation that 27 lenders have been selected from a wide pool of applicants to form the initial panel offering guarantee-backed loans under the First Home Loan Deposit Scheme.

"The National Australia Bank and Commonwealth Bank of Australia, together with 25 non-major lenders, have been appointed as participating lenders in the scheme.

"Importantly, all lenders have committed not to charge eligible customers higher interest rates than equivalent customers outside of the scheme," he said.

Mr Sukkar continued: "The scheme has been warmly welcomed by major industry peak bodies, and the composition of the initial lending panel reflects the industry's confidence in the Morrison Coalition government's plan to assist first home buyers.

"Further, the scheme has been deliberately designed to ensure strong representation of smaller lenders on the panel. This will promote competition between the large and small banks and ensure the scheme has broad geographic reach, including in regional and remote communities.

"The composition of the panel should also enable strong activation of mortgage broker channels and promote choice for first home buyers," he concluded.

Source: The Adviser

Commonwealth Bank- First Home Loan Deposit Scheme

We are excited to announce that we will be working alongside the government and the National Housing Finance and Investment Corporation (NHFIC) on the First Home Loan Deposit Scheme (FHLDS) to help more first home buyers purchase their own home.

From 1 January, the Scheme will support up to 10,000 loans each financial year and customers can apply in the coming new year.

We will send a separate communication to brokers which directs them NHFIC's FHLDS website for more information.

Eligibility criteria

NHFIC has developed a tool to help first home buyers find out whether they meet the Scheme's eligibility criteria. Click here to view the tool.

More information for brokers

Given the short time-frame to delivery, we are working hard to finalise the application process and will communicate this via CommBroker News as soon as possible

More information for customers

We have created a landing page on our website specifically for direct customer engagement and information.

For customer who engage us via their broker we will continue to reference the NHFIC FHLDS website for eligibility.

We look forward to continuing to work collaboratively with NHFIC on the successful implementation of the Scheme and will be in touch when more information becomes available.