Good Afternoon and Happy Monday!
Well what a week it was! My accounting partners have been very busy this last week interpreting the stimulus package.
There certainly looks to be some very attractive incentives, increased instant asset write off’s and subsidies, the government certainly is certainly throwing some very serious cash around, firmly eliminating any talk of a surplus.
I would highly recommend having a conversation with your accountants sooner rather than later to implement a plan so that you are able to make the most of what is on offer.
The other big news as you all would have seen is Corona virus. We all know it’s been around for a while now. It’s effects worldwide have already been felt from an economic standpoint especially in the stock market, though the flow on will be felt for quite some time to come I think.
Lenders have continued to march on aggressively seeking new business in a rate war that is far from over.
I have had some luck with one of the Majors this week surprisingly. I have been working on a refinance scenario for a client currently with a smaller bank. She was told by her previous broker that nothing could be done on her rate. That might be true of her current lender.
However I have been able to obtain pricing from a major bank, who will also offer an Lenders Mortgage Insurance waiver because of her profession. The loan amount isn’t anything to be sneezed at. So I have not only saved the client over 0.5% in rate converting to about $300 PM I have been able to save them another $20,000 in LMI waiver.
While this might be somewhat of an extreme case with the savings, what it does show is how important it is to push the envelope with every opportunity. Even if a lender might be notoriously hard work, if they will do the job for a client then they are in the mix.
ME bank broke the mould this week with a release of a new policy around display homes. Usually Banks will only go to 80% LVR and have been like this for a very long time. ME bank will now go to 90%, they will still only take the standard rental income for servicing though, NOT what is actually being paid.
ANZ appeared with a pretty cracking 2 year fixed rate at 2.68%. Interestingly on the refinance scenario above they only just missed out getting the business by 0.06%
No one has yet beaten ING’s 3yr fixed at 2.49%
I hope that you all have a great week out there.
Let me know if you have any questions or scenario’s.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
Justin
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