Archives for July 2018

The top five advantages of using a mortgage broker

July 25, 2018 By Synergy Lending

Shopping, watching a movie, catching up on the news – there are many things that are cheaper and easier to do online these days. But obtaining a quality home loan? Well, the only time you’ll want to use the internet for that is connecting with an expert.

When it comes to picking a home loan, people tend to go for one of three options: search online, visit their bank, or use the services of a mortgage broker.

Here we look at five reasons why a mortgage broker is hands-down the best option to find the right home loan for you:

1. We work for you, not for an institution

We brokers are independent professionals who have access to home loans from a wide range of different lenders (30+).

A bank will only offer you access to its own products, which may not necessarily be the best fit for your personal situation.

A broker works on behalf of the client, picking suitable products from a number of different lenders in order to give you the best choice.

2. We’re faster

Brokers are specialist professionals who concentrate on finding suitable home loans for their clients.

Our processes are often simpler and much faster than you can expect from a bank, where processing and approval can take weeks.

3. You have more chance of success

When you work with a broker, you are given access to dozens of home loan products from various lenders.

This means there’s a far greater chance of finding something suitable, rather than simply relying on the products of a single institution.

We also know which ones you’re most likely to have success with, which can save you countless hours of applying online yourself.

4. Our livelihood depends on great service

Most brokerages are small, independent business owners who know that good reputation and word-of-mouth advertising are vital to their continued success.

That’s why our number one incentive will always be to deliver excellent results and impeccable customer care.

5. We do all the hard work for you

So you’ve just picked out the home of your dreams. You should be spending time comparing wallpaper patterns, not figuring out how to file all the paperwork.

Fortunately, we take care of all the paperwork on your behalf, making the lending process as simple, fast and convenient as possible.

Get in touch

If you, a friend or a family member is looking at purchasing a home in the near future, then get don’t hesitate to get in touch.

By making the process of finding finance easier for you, you’ll have more time to use the internet for what it was truly made for: online shopping, watching a flick and catching up on the news!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to move house like a boss

July 25, 2018 By Synergy Lending

Back-breaking furniture, perilously narrow staircases and chipped crockery – the idea of moving house strikes fear into the hearts of most. But with careful planning it doesn’t have to be a nightmare.

So you’ve just secured the home of your dreams? Congratulations. Now the fun really begins.

The good news is that knowing how to move properly will help ease the gigantic task ahead.

So to help you keep your sanity, here are our top five tips to guarantee less mess, less stress, and ultimately, more moving success.

Draft a budget

A moving budget doesn’t just help manage the cost of moving, it also acts as a checklist to make sure you haven’t overlooked anything.

Besides the obvious expenses like removalist fees and utility connection costs, it can also help you remember things like redirecting your mail. Here’s a good rundown from ASIC’s MoneySmart website on some costs to expect.

It’s cull time

Moving is often the perfect time to get rid of any stuff you no longer want or use.

Go from room to room and work out what items you can offload at a garage sale to make some extra cash. Not only will you save on removal fees, but the extra cash can go towards paying for the removalist.

Hiring a removalist

Sure, offering friends pizza and beer to help you move is one way to do it, but you’ll still probably need an expert hand. If so, ring several different removalists and compare both the quotes and the insurance coverage.

Be sure to enquire as to whether there are any additional fees – for example, if the move takes longer than expected.

Also ask if they offer moving supplies as part of the deal as this can help you save money on boxes and tape.

Ask for leave

Moving house isn’t something you want to squeeze into a two day weekend.

Talk to your boss about taking an extra day or two off to move, and think about putting the kids in childcare if necessary to make the day less stressful.

The best bit? Removalists often charge cheaper rates mid-week.

And finally, pack smart

How you pack will help you when you’re unpacking so keep in mind a few things.

Pack boxes with heavier items on the bottom and don’t overfill a box – weight limits are there for a reason.
Newspaper makes great fill for packing boxes, as do tea towels and dishcloths.
Keep a list that labels and numbers every box as you pack it to keep track of the items in each box. This is important in case anything is lost, and ensures you don’t unpack the garden tools in the kitchen.

We’ve seen hundreds of our clients prepare for their big house moving day before. So if you’d like any extra tips or advice, be sure to get in touch. And yes, apologies in advance, but it’s a darn shame – we’re already busy that day…

Four simple ways to increase your property’s resale value

July 17, 2018 By Synergy Lending

Everyone dreams of investing in a home or business that will fetch them more money than they originally bought it for. Here’s how to roll-up your sleeves and get started.

Making the appearance of your property desirable is critical because yours will be among a long list of properties that a potential buyer will see.

So how do you make your property stand out from the pack?

Well, by implementing a few of the below affordable steps you may not only raise the appraisal value of your property – but maybe a few eyebrows too.

1. Kitchen and bathroom upgrade

The kitchen and the bathroom attract the most scrutiny from potential home buyers and can make or break a deal.

Therefore, you should consider allocating the larger chunk of your remodelling budget to these spaces.

If your budget allows for it, consider installing new modern sinks, updating the countertops and replacing old cabinets.

2. Improve energy efficiency

Buyers will generally be willing to dig a little deeper into their pockets for a home that will help them save on energy costs in the long run.

So hire a Level 2 electrician to inspect the property and try to follow their recommendations to the letter.

You can install appliances that have positive energy conservation ratings and also replace old windows with ones that have a durable sealing. New modern doors and increased insulation can also boost energy efficiency in your home.

3. Give it a fresh coat of paint

Painting can make a property look and feel new. Who wouldn’t want to buy a home or business that’s ready for them to move in immediately?

However, go for neutral creams and whites that will suit most people’s preferences and avoid bold colours.

Remember that lighter shades like beige and white give the impression of spacious rooms.

4. Enhance curb appeal

The appeal of your property, when viewed from a distance, is important.

If it looks abandoned and gloomy, then it needs work to make sure it ready to greet its new owner.

You can make cosmetic improvements like trimming overgrown bushes, mowing the lawns, planting grass on bare areas and growing flowers.

Final tips

Property improvement should not cost you too much if you focus on the critical areas that appeal the most to buyers. It also helps to think of the above ideas as adding to your investment – not an expense.

If you’re unsure where to start, or would like some extra tips, don’t hesitate to get in touch.

We understand precisely what residential and commercial buyers look for in a home and investment property respectively, and would be more than happy to help out.

We’ve got your back

July 17, 2018 By Synergy Lending

It’s no secret that the banking royal commission has shone a light on serious misconduct and poor lending standards by some of Australia’s biggest banks. So we thought it was a good time to address the proverbial elephant in the room and set the record straight.

You may have seen headlines in recent times regarding the lax lending practices of some of the banking industry’s less scrupulous operators.

It’s important to note that it’s the practices of a few big players, not the mortgage broking industry generally, that are under the microscope. But that distinction is not always clear in the headlines and the news grabs.

So we thought now was a great time to set the record straight: Our number one priority is, and always has been you, our client.

Some cold hard stats

Ok, so anyone can talk the talk. But here’s proof that mortgage brokers like us walk the walk. Recent research shows that:

The customer satisfaction measure of mortgage brokers is in excess of 70%, which is considered “outstanding and industry leading” for financial services.
The amount of home loans settled each year by mortgage brokers has doubled over the last decade, highlighting strong customer satisfaction.
In 2017 mortgage brokers helped Australians secure finance for more than half of all home loans.
Only 1% of consumer credit complaints to the Financial Ombudsman Service between 2013 and 2017 were about mortgage brokers.
And finally, one that I find particularly interesting – especially due to the Royal Commission – is that over the last five years, mortgage brokers have moderated the dominance of the major lenders and increased competition in this space.

What motivates us

While it’s true that we’re paid a commission by the lender, rest assured that we’re driven to secure the most suitable home loan deal for you.

After all, having you tell your family and friends about us at the next backyard barbeque is much more valuable to us than any slight variation in commissions between lenders.

That’s why we’ll always fight tooth and nail to secure the best possible home loan for you and your family.

If you’d like to find out more about how we’ve got your back, feel free to give us a call anytime.

Are you flushing money down the drain by putting off refinancing?

July 11, 2018 By Synergy Lending

Every year thousands of Aussie families flush their hard earned dollars down the gurgler because they put off the simple act of refinancing their mortgage. If you’re overdue, rest assured that it’s much easier than you may think!

While there are no hard rules about refinancing, it makes financial sense to review the loan when your individual circumstances change.

For example, you may be growing your family, moving to a new location, or getting married.

There are also plenty of reasons that exist outside personal circumstances, including the major financial benefits it can offer, and we’ll run through some of these below.

Refinance to get a better rate

Refinancing does not always have to mean changing banks.

There are hundreds of circumstances in which borrowers refinance their loans to get a better rate from their bank.

The mortgage market is very competitive, and a deal signed two years ago may not be in your best interest today.

However, if your bank is not in a position to offer you a better rate, there are many lenders in the market who can get you a better deal.

Lock in a great rate

You may have seen the news recently that the RBA kept the official cash rate on hold at 1.5% for a record 21st meeting.

However it won’t stay that low forever!

In fact, half of Australia’s leading economists in Australia’s longest running survey – the BusinessDay Scope economic panel – believe the RBA will lift its cash rate by the end of the financial year.

With so many experts predicting interest rates to rise in the next 12 months, and some banks already increasing their interest rates, now could be a good time to lock in an interest rate on your home loan.

Consolidate debt

Refinancing helps to reduce the interest payable on the different loans you have, which can include credit card, car loans or personal loans.

It basically involves combining all the loans into a new mortgage, giving you one simple repayment to make each month instead of a bunch of them – which can lead to late fees if you forget one.

The best news? All your debts are charged at the home loan interest rate – which is usually much lower than a credit card rate!

Increase your investment

If you are looking at your investment options but are financially constrained, it’s time to consider refinancing your mortgage.

One reason to do so is to buy another property.

Refinancing in this circumstance makes a lot of sense because you will have enough equity in your property, which may enable you to make another house purchase.

Get in touch

If you’re feeling like it’s probably time you should refinance your home loan, but are simply too busy to do so, then we’ve got great news for you: our job is to make it super quick and easy!

In fact, we can help make the whole process so stress free you’ll be kicking yourself for not doing it earlier.

So if you can identify with any of the above reasons to refinance you home loan, feel free to get in touch with us today!

Could you benefit from salary sacrificing?

July 11, 2018 By Synergy Lending

Keen for a new laptop or car? Sick of putting your hand in your pocket to pay off your mortgage? All of these things could potentially be paid for through a salary sacrifice arrangement.

With the majority of a fresh financial year ahead of you, now is a good time to look at getting the most from your pre-tax earnings.

What is salary sacrificing?

Salary sacrificing, also known as salary packaging, involves you and your employer making an arrangement where they pay for goods and services out of your pre-tax salary.

As a result, you can reduce your taxable income and boost your disposable income.

What can you sacrifice?

It all depends on your employer and the industry you work in but there are three broad categories of things that can be packaged: those that attract fringe benefits tax (FBT), those which do not, and superannuation.

– Fringe benefits

Firstly, let’s clarify that when we say that these items attract FBT, it’s your employer who has to pay the tax, not you.

That can make offering these benefits less attractive for employers, although many will use the benefits as a great recruitment and retention tool.

Common fringe benefits include health insurance, car loans and novated leases, school fees and childcare fees.

It’s also possible – depending on your industry and employer – to use a salary sacrifice arrangement for home mortgage repayments, income protection insurance, disability insurance, relocation expenses and even car parking and holiday accommodation.

– Exempt benefits

These are things your employer doesn’t have to pay tax on. They commonly include work-related items such as portable electronic devices, computer software, protective clothing, tools of the trade and briefcases.

You may also be able to salary sacrifice for work-related travel expenses (domestic or international), self-education expenses, professional memberships and subscriptions, home office expenses and airport lounge membership.

– Superannuation

You’re probably well aware that most employers will let you salary sacrifice into superannuation.

Doing so can boost your retirement nest egg in a tax effective way – you’ll pay just 15% tax on salary sacrificed into superannuation, rather than the marginal tax rate of up to 47%.

To get the most out of the arrangement, however, it’s important to look closely at the fine print.

That’s because, unless otherwise agreed, salary sacrificed super contributions are classified as employer super contributions, which means your employer can pay you less in super guarantee contributions.

It’s also important to ensure that you don’t go over the concessional (before tax) contributions cap and that your income doesn’t trigger Division 293 tax.

What next?

As with anything in life, there are pros and cons, swings and roundabouts.

Salary sacrificing is no different.

Before making any big decisions, make sure you get proper advice from your an appropriate financial services professional you’d like to find out how to get the most from your pre-tax (and after-tax!) earnings, please get in touch today.

Putting the property price dip into perspective

July 5, 2018 By Synergy Lending

Sure, property prices across the nation may have fallen for nine consecutive months, but it’s far from doom and gloom. Let’s put it all in a bit of perspective.

It’s easy to see a headline such as “Australian dwelling values fall for the ninth consecutive month” and start feeling down about the whole thing.

But let’s put it in perspective

National dwelling values have only fallen 1.3% since their September 2017 peak, according to CoreLogic data.

The news gets even better

Despite the recent consecutive national monthly falls, national dwelling values remain 32.4% higher than they were five years ago.

That means if you bought the average Aussie house for $300,000 five years ago, it’s now worth roughly $400,000 – so you’re still way ahead.

“This highlights the wealth creation that many home owners have experienced over the recent growth phase,” says CoreLogic research director Tim Lawless.

So what’s driving the dip?

Well, according to Lawless, the recent dip is primarily due to tighter finance conditions and less investment activity.

Unfortunately, “We don’t see either of these factors relaxing over the second half of 2018,” says Lawless.

But wait, there is some slightly better news too: “APRA’s 10% investment speed limit is being lifted this month,” adds Lawless.

The cap, which was introduced in 2014, required banks to limit growth in lending to housing investors to 10%.

So that may ease the weaker housing market conditions somewhat, although not enough for pundits to predict the small monthly declines to end just yet.

Your next move

Despite the RBA on Tuesday announcing that they had kept the official cash rate on hold at 1.5% for a record 21st meeting, the recent BusinessDay Scope economic panel gives the RBA an even chance of lifting its cash rate by the end of the financial year.

The survey, which is Australia’s longest running, is made up of 26 of Australia’s leading economists

So if you’d like to find out more about refinancing your home loan, give us a call today. We’d be more than happy to run through your options with you.