Q1. Overall, how satisfied were you with my services? Excellent

Q2. On a scale of 1 to 5 (1 being very poor, 5 being exceptional), how would you rank your overall experience with me? 4

Q3. What elements of the service I provided most impressed you? No matter what challenges came up with getting us the loan you just always had a solution around the problem. You never gave us false expectations that you could get the loan and we trust you.

Q4. What did you most like about me? Your work ethic towards our case and how personable your service towards us was.

Q5. Please rate me on each of the following 
Understanding of your needs - Excellent
Knowledge and explanation of products - Excellent
Courtesy and friendliness - Excellent
Communication - Excellent
Quality of Service - Excellent

Q6. Did I keep you informed during the application and approval process? Yes

Q7. Would you be interested in knowing more about any of the other services I provide? Yes

Q8. Would you recommend my services to others? Yes

Q9. How did you hear about me? 
Other - Friend who is a client (name withheld)

Comments: Although we don”t know anyone at this stage who could benefit from your service we will highly recommend you to our friends and family on the occasion that they needed a broker. Nothing was ever too much trouble it felt like you were part of our team and we were all aiming for the same goal.

Speculation is rampant that we will in fact see another rate cut in the near future – however it is being suggested that with some consumer confidence already improved slightly from the last quarter of 2011 – the RBA is holding on to see what real and tangible effect, previous rate reductions have caused our economy. 

There has also been a lot of speculation as to whether the banks would have passed on the rate cut even if the RBA was to reduce the cash rate. That is a real possibility – there is much talk of increased funding costs and the bank bill swap rate (will be addressing what this is in a later post) and how that really affects the costs of lending.

There has also been a lot of talk in the media about “going down the road and getting a better deal” … while that is an option for everyone… lets take a look at what we have been seeing in our business AND what you need to consider when refinancing…

So what am I seeing in my business?  

Enquiry has definitely picked up in the previous 3 months – with people checking to ensure their home or investment loan is still suited to their needs, and competitive. With the new legislation intro ducted in July last year, abolishing deferred exit costs from mortgages, it is definitely more cost effective than ever to switch lenders, to obtain a more competitive interest rate or product. 

There are a few things to consider though. 

1. The new laws only apply to loans which were settled (came into effect) post 1st July 2011. Some lenders are applying this new legislation to all loans they hold, however this is not the case across the board, AND if your facility was set up pre July 2011. You may still incur some exit costs. 

2. The new legislation only prohibits deferred establishment fees and exit costs. It does not ban fees that are reasonable in the process of discharging a mortgage. There is work to be done by the lenders solicitors such as discharging title, attending settlement and closing out a legally binding contract. So we have seen many lenders charge an administration fee of from $150 – $500. So while the larger fees may no longer be able to be charged, you may incur a fee in this range to switch. 

3. Because lenders are no longer allowed to charge larger exit costs – they are charging more regular upfront entry costs. We used to see a lot of lenders offer NO application or set up costs.. theses are now more rare. So prepare to have upfront costs to switch to a new lender. 

4. You still have to pay all government charges, title transfer fees and title registration costs. 

5. Mortgage insurance. If you loan amount is more than 80% of the value of your property – you would have paid mortgage insurance when you set up your loan. You may not have paid it at settlement though, more than likely it was capitalised on top of your mortgage. If your loan amount is still over 80% of the value of your property – if you switch lenders, mortgage insurance WILL be payable again. It is not transferrable. Having to pay this fee again, can wipe out any potential interest savings you would make on the slightly lower interest rate…

So it is well worth doing the sums and speaking with your mortgage broker, to determine the ACTUAL savings you would have on your loan… taking into consideration any outgoing costs, set up costs and government charges, as well as mortgage insurance premiums. They will be able to provide you with the real numbers – so you can make an informed decision. 

If you are even considering refinancing, and would like to run the numbers… shoot me an email to lbarton@mintfinance.net.au and I would be happy to chat with you about where you are at, and what potential options you may have. 

Have a great day! 

Leah 

Just a friendly reminder, our office is officially closed until Monday 9th January, 2012. If you do have an urgent matter, please email me directly at lbarton@mintfinance.net.au with URGENT in the subject loan. 

Until then – enjoy the holidays!! 

All the best, 

Leah 

Income Protection Insurance provides an income stream should you become unable to work due to illness or injury. Benefits are paid monthly, not as a lump sum – which helps to ease the day to day financial burden of being unable to work. 

The amount of cover is normally restricted to 75% of your gross salary. 

The choices in cover, depend entirely on an individuals circumstances. However some would argue that income protection is probably the most important type of insurance – after all where would you be without your income?

How well could you survive without your income for a period of 12 months or longer? Your income is used to maintain a certain living standard and also to build wealth and provide for your retirement. Unlike Trauma insurance, Income Protection does not specify a list of accepted conditions. Therefore greater coverage is provided, particularly for temporary illnesses such as back injury and stress related illnesses.

Unlike other forms of personal risk insurance, Income Protection premiums are tax deductible for most taxpayers. The after tax cost of the cover can therefore be significantly less than the cost of the premium. 

SPECIAL LIMITED OFFER – REDUCED PREMIUMS BY UP TO 20% OFF – WITHOUT REDUCING COVER!!! email brad@sterlingfs.com.au for more information today
OFFER EXPIRES FRIDAY 21st OCTOBER 2011
Conditions apply. Premium reductions are dependant on amount of cover obtained and subject to change without notice.

“With interest rates appearing to be hold and prices having eased since the highs of 2007, first home buyers are starting to make a tentative foray back into Queensland’s property market.”

According to the Australian Bureau of Statistics, there were 1,331 dwellings financed to Queensland first home buyers in July, a small improvement on the 1,298 that were financed in July last year.  

“However, the number of dwellings financed is still well down on the most recent peak of first-timer activity in late 2008 and 2009 when the First Home Owners Boost was in play. During that period, the strongest activity was in March 2009 when 4,000 dwellings were financed for first home owners.  

“First home buyers still receive a full concession on stamp duty if they purchase a home priced up to $500,000 or vacant land priced up to $260,000. There is then a sliding scale of concession depending on what price you pay for a house between $500,000 and $600,000 or land between $260,000 and $400,000.  

“First-timers can also receive the $7,000 First Home Owners Grant. They can also apply for the $10,000 Queensland Building Boost if they buying or building a new home before 31 January 2012 and meet certain criteria. 

“While access to grants makes the transition to home ownership easier, most first home buyers are saving for at least one to two years before they have accumulated enough funds for a deposit, according to REIQ research.

“Access to finance may be slightly improved since the GFC, but it remains imperative that first home buyers attempt to save the highest possible deposit before purchasing a property to minimise the amount they need to borrow. This will also minimise the amount of interest that will eventually be paid. 

“Some lenders may require the borrower to carry mortgage insurance, depending on the amount the borrower requests. Mortgage insurance protects a lender, not the borrower, against any loss should a borrower default on their loan and the buyer typically bears the cost of mortgage insurance for the lender.

“First home buyers should take into account the potential for interest rates to rise once their loan is established and ensure they allow a buffer to enable them to make higher repayments should this occur. 

“It is always advisable that first-timers talk to their financier or mortgage broker before they start property hunting so they know what boundaries or limitations they may have. This will allow them to place an offer with confidence that they are not over-stretching their financial capabilities.”

If you are a first home buyer – or know someone who is, get them to subscribe to our First Home Buyer FREE video series – this will give you some good foundations to start with. Or alternatively, have them CONTACT US for a no obligation consultation to help them navigate the sometimes overwhelming road to Home Ownership.

I would like to take this opportunity to thank my valued clients for their patience this year while some things were delayed due to personal circumstances, that saw me out of the office more than normal this year. With the diagnosis of Congenital Heart Disease for my baby nephew Zane in January, it has been a constant stream of hospitalisations, surgeries and procedures which definitely took our attention away from the business for a while.

It is with deep regret that I say Zane passed away on 26th August, at 16 months old. He is missed deeply every day and I want to thank you for your messages of support and understanding during this difficult time. My sister, her family and our extended family are truly grateful for the generosity and support that we have all been shown. 

In Zane’s honour, “The Zane Walker Memorial Fund” has been set up in conjunction with Precious Hearts, to help raise funds to assist other families with children suffering from Congenital Heart Disease (CHD) in need of financial assistance. They are going through such an emotional roller coaster, only exacerbated by high costs associated with a prolonged hospitalisation and medical treatment. Not to mention reduced income due to parents needing to take time off to care for their ill children. All contributions to the Zane Walker Memorial Fund, over $2 are tax deductible. 

We would like to take this opportunity to announce that a percentage of all commissions and income received by Mint Finance, will be donated to the Zane Walker Memorial Fund. And it is the ongoing support of clients just like you, that will continue to allow us to make a difference in peoples lives. 

We will keep you posted on various events being held in his honour. 

Your support of Mint Finance, will support families throughout Australia dealing with CHD. 
If you have a friend or family member, who you think could benefit from our services, please forward this email on to them. We are here to help!

Here is what Glenn Stevens, Governor: Monetary Policy Decision had to say in his media statement; 

Recent information is consistent with a moderation in the pace of global growth, though fears of a major downturn have not been borne out so far. The pace of US economic expansion picked up in the September quarter, but is still only moderate and leaves considerable spare capacity. China’s growth has slowed, as policymakers there had intended. Output in Asia has now recovered from the effects of the Japanese earthquake, and domestic demand in the region is generally expanding. Trade performance, however, is starting to see some effects of a significant slowing in economic activity in Europe, where the prospects are for economic weakness to continue. Commodity prices, while still at high levels, have generally declined over recent months.

Financial markets have recovered somewhat from the turmoil of recent months, helped by stronger economic data in the United States and by signs that European governments are making progress in their efforts to deal with the sovereign debt and banking problems. Equity markets have gained ground and the Australian dollar has risen significantly as risk aversion has lessened. But it is likely to be some time yet before concerns about the European situation can definitively be laid to rest and the effects of the recent turmoil on confidence may result in a period of precautionary behaviour by firms and households.

Information about the Australian economy suggests moderate growth overall. The terms of trade have now peaked and will decline somewhat in the near term, but they remain very high. In response, investment in the resources sector is picking up very strongly, with much more to come. Some related service sectors are enjoying better-than-average conditions. In other sectors, cautious behaviour by households and the high exchange rate have had a noticeable dampening effect. The unemployment rate has increased a little over recent months, though it remains close to 5 per cent.

After underlying inflation started to pick up in the first half of the year, recent information suggests the subdued demand conditions and the high exchange rate have contained inflation more recently, notwithstanding continuing sizeable increases in utilities charges. CPI inflation on a year-ended basis remains above the target, due to the effects of weather events last summer, but is now starting to decline as production of key crops recovers. Moreover, with labour market conditions now softer, the likelihood of a significant acceleration in labour costs outside the resources and related sectors in the near term has lessened. Accordingly, the Bank’s current judgement is that inflation is likely to be consistent with the 2–3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme.

Financial conditions have been easing somewhat recently, with market interest rates declining a little and competition to lend increasing.  But overall conditions have remained tighter than normal, with borrowing rates still a little higher than average, credit growth subdued and asset prices lower than earlier in the year. The exchange rate has been very variable over the past few months, but on the whole has remained at historically high levels.

Over the past year, the Board has maintained a mildly restrictive stance of monetary policy, in view of its concerns about inflation. With overall growth moderate, inflation now likely to be close to target and confidence subdued outside the resources sector, the Board concluded that a more neutral stance of monetary policy would now be consistent with achieving sustainable growth and 2–3 per cent inflation over time.

How does this affect you?

For now, we wait and see which lenders pass on what rate reductions to their customers, and when they will take effect. Lenders are under no obligation to pass on interest rate reductions or increase – and it will be interesting to see which lenders do what, in light of recent conversations about the rising cost of funding. Which is different to the cash rate.

For every $100,000 you should expect your mortgage to decrease by $250 per annum OR $20.83 per month. 

We will keep an eye on what the lenders have chosen to pass on – and will provide you with an update next week in our monthly newsletter.  

In the meantime, if you have any questions or queries, please contact me for more information.

1. Ensure you have all required supporting documents photocopied CLEARLY for your broker.
2. Request a 14 business day finance clause (this means weekends are not lost days, and that your finance clause does not fall on a Friday typically)
3. Certified ID – with more focus being put on identification measures, please ensure you have your 100 points of ID certified by a proper person. The photocopy should be in full colour, CLEAR and the certifier needs to list their qualifications
4. Attend to any requests immediately. If the lender requests additional information, it is important to take action on it immediately. Any delays, will delay approval – and therefore may impact you meeting your finance clause or cool off period. Remember vendors are under no obligation to extend these clauses.
5. Ensure you are aware of various lender turn around times, PRIOR to making your lender selection. A professional broker will know this information and should share this with you, as it may impact your decision in a purchase situation.

Happy House Hunting!

It seems as though the Australian public is unaware of how two speed economies can affect the property market.

Investing in property is now more than ever the preferred choice of investing for Australians.

There was little impact through the GFC and the slight dip in current property prices is just the typical historical correction that property cycles display.

However, what ‘s interesting is that while some metropolitan areas are experience a softening in property price there are some regional areas that are currently at the start of a mini boom.

Imagine a property going up $60,000 in 6 months. It might take 3 or 4 years for some metro properties to achieve that growth.

Imagine getting 10-15% yields on your investment property – for most people that is too good to be true.

But at Property For Wealth this is exactly what our clients are adding to their growing portfolios.

A couple of months ago BHP posted a record $23billion profit. And guess what happened to their share price? It actually went down because Wall Street decided the Dow Jones would lose 5% in value and wipe billions off the stock market. If you owned BHP shares you would be pretty irate!

Ironically, at the same time some of our clients bought investment properties that will achieve an 11% yield and the rent is going to be paid by BHP – amazing! Y

es, a $390,000 brand new house and land package that will have a corporate lease of $950 per week paid by a blue chip company posting $billions of profit. This return is significantly higher than the Dividends BHP shareholders receive! Add on some impressive capital growth and we are looking at the potentially the best investment in any market anywhere in the world! Add another $10,000 tax-free from the government and now you know why our clients are buying as many of these they can.

If you would like to contact Jason, please email us directly at loans@mintfinance.net.au to request his contact details. Thank you

ARTICLE – Jason Currie, Senior Property Strategist