Superannuation was created in order to help people support themselves in retirement as opposed to relying on an inadequate aged pension. While the rules and regulations surrounding super are always changing, one thing remains the same; the attractive tax breaks available relating to superannuation contributions, withdrawals and income streams.
 
Whereas most people end up paying a high percentage of tax on their income, super contributions are only taxed at 15%, and the fact that the funds are invested and cannot be accessed until retirement means that the discipline that many people struggle with is taken out of their hands to create a solid retirement fund. 
 
We’ve put together a list of 5 super tips to help you get ahead TODAY!
 
 
Know how you are invested
Request a recent super statement from your provider and look into whether or not the investments are appropriate for your risk appetite and return needs. You could be invested in high risk returns or very low risk cash, do you know? The choices you make now can have a huge impact on your nest egg in the long run so it’s definitely worth doing some research. If you’re not sure which way to go, get professional advice.
 
Understand compounded returns
The more you have in super, the more you earn over time. If you have $10,000 in Super and your fund creates a return of 8% this year, your fund will grow by $800. If you experienced the same growth on a balance of $100,000 your fund would grow by $8,000. This adds to the principal and is in addition to whatever you contributed to super. It means that in a year of positive growth through super, the more you start out with, the more you will earn. Keep in mind not every year will produce positive growth, in investing, sometimes you lose money, but in the long run, most super funds produce positive returns. Seek advice on whether you are with an appropriate fund/ product to meet your needs and risk tolerance.
 
Consider Salary Sacrifice
Salary Sacrifice is making additional pre-tax contributions to super in order to build your retirement asset. It can reduce your total tax obligations and assist in increasing long-term growth through super. You need to seek advice to consider if this strategy is suitable for you as it will reduce cash flow, and there are limits to how much you are allowed to contribute to super each year without being penalised.  
 
Research the insurances you have through super
Insurance through super can be a cost effective way of insuring yourself but there are limitations to the types of covers and the quality of the policies when they are held entirely through super. Don't assume you are covered just because you have some cover through super. Want more information on alternative insurance coverage options? We can help you with that!
 
Take action now to see and enjoy the results later
A lot of people don't think about super till they are in their 50's. Time flies and when you reach 65 you will have financial needs, children, maybe even grandchildren to take care of. Being prepared is about connecting the things you do today with the results you want further down the track.
 
So that’s it… 5 things to think about when it comes to growing your super. If you need some advice and would like to discuss your individual circumstances with us you can reach out to us via the contacts below;

Wilson Financial Office - 1300 780 826
 

 
 
General Disclaimer
This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly neither Alliance Wealth nor its related entities, employees or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.

0Brokers are now responsible for nearly 60% all loans written in Australia and this figure is rising! Why, because it’s a win - win - win… for you, the broker, and the lender!
 
Have you ever stopped to wonder how it is a broker doesn’t charge you any fees for their service? You wouldn’t be the first. So, in the spirit of transparency, we want to let you in on the behind the scenes of our business...
 
Let’s start at the start...
 
Banks and lenders in the retail market have overheads. Aka - branches. They pay rent. Wages. Marketing. Utilities. Stationary costs. And, instant coffee costs (ewww! Who likes instant anyway?)
 
They also have what’s known as "Third Party Banking". That is us, the brokers.  We are ‘freelancers’ because they don’t pay our rent, wages or, in our office, Nespresso coffee costs. Instead, they pay us commission based on our ability to get loans funded with them. Much like a real estate agent would receive commission if they sold your house. 

It's simply a different model to branches, with a different remuneration system. We feel brokers have an edge though, as we can work for multiple banks instead! 
 
But do you sell the exact same products as the banks?
 
Yes! However our brokers are accredited with between 30-40 lenders so you end up with way more choice!

Some lenders alter the name of a product for the broker market so they can distinguish where the loan came from, but the rate and fees are exactly the same. For instance, Commonwealth Bank sell a 'Wealth Package' which brokers sell to clients as a "Mortgage Advantage Package", there is literally no difference aside from what your contract says!
 
Surely the products you sell aren’t exactly the same as the ones I see in branches?
 
Absolutely, they are! However, we do have some tricks up our sleeve as brokers… Let me give you an example;
 
Today if I log on to a major bank website, I can see a home loan product offering a variable rate at - 4.80%. Less the package discount of 0.5% (for buying a package) and you get a rate of 4.30%
 
When you deal us, we can negotiate this rate further!
 
We recently negotiated a 1.70% discount on that same rate by undertaking what is called ‘price negotiation’ with that lender. That means the rate was 1.20% cheaper via us (i.e. 1.70% was our discount, but the package discount is only 0.5% online) than it was as advertised directly through the lender! Ergo the client got 3.10% via us Vs 4.30% with the lender!!! The average loan in the Southern Highlands is around $550,000 at Wilson Financial so the negotiated rate represents an interest saving of $6,600 ......PER YEAR
 
So why else would you choose a broker over going direct with a lender?

Aside from the obvious reasons above such as extra choice of lender and price negotiations, shopping around in one spot there are some other benefits...

• Strict ASIC financing regulation means brokers MUST provide at least two other lender options. As brokers, we often look at a lot more lenders than this, but we will narrow our offering to three to four lenders in our proposal to you, or else you may be a bit overwhelmed. This regulation ensures you get a range of products to choose from when making your decision, thus making using a broker the more transparent option. 

• Brokers are often locals running small business's and have invested themselves into the local community. Supporting local is important to many people
• Some branches are shifting towards lower quality of engagement such as tele-conference for mortgage meetings, or online only. People want to know and trust their broker and not deal with call centre staff so they are flocking to brokers. 
• Experience, so many brokers are ex-bank staff now! At Wilson Financial three of the five brokers worked for banks! Many of our clients locally are stating that they have come to us due to our experience, compared to the experience they had going to their incumbent lender...

 
Why would lenders use brokers then? Why not just only have branches? 
 
Many smaller non regional lenders like ING for instance, grow their business quite quickly simply by using a broker network and some lenders are actually predominantly serviced by brokers, like Macquarie Bank.
 
Deloitte recently published findings in their Productivity Commission draft report which outlined that mortgage brokers have helped increase the market share of smaller lenders, and that to replace brokers, they would need to open 118 new branches EACH just to do what brokers have done for them. This is something that most small lenders are not planning on, due to the overheads.

We would add that the same independent report cited that;
 
“Preliminary analysis suggests that brokers do obtain slightly lower interest rates... it is not clear if this is attributable to brokers’ ability to negotiate with lenders or to other factors such as the characteristics of borrowers who use direct channels to source their loan”.

Ooh – shock horror – really? As a long term brokerage active now since 2003, here at Wilson Financial, it’s always been our ability to negotiate! 
 
Want to take our google challenge? It's easy....
 
I have one challenge for you. Go online and google the name of any lender alongside the word “reviews”. Here is an example.
 
You will often find going direct CHALLENGING, from a service perspective. Meanwhile, have a look at our testimonials page, our Google reviews, or our Facebook reviews. The results speak for themselves!!!
 
How does the service compare - isn't it faster going direct to a bank??
 
*COUGH COUGH* WHAT!

Errr.... Ok, let me ask you, if you were in a jungle, with no map, no compass, no navman or phone, and needed to get from A to B, would you rather go yourself with say, a website, some brochures and a call centre to help you, and at every milestone you meet a new person who doesn't know your back story...  By the way, if you got half way and were declined, they'd say good bye and leave....

OR would you rather have your own tour guide, who walked every step of the way with you, liaised with your accountant, solicitor, real estate agent, and was your confidante the entire time? We literally do not leave your side, we have a little policy that we do not leave any of our ducklings behind, we advocate for our clients loans to be approved, and we help show them HOW to navigate the massive minefield of finance and property.

We assist with the forms, the questions the long term planning, and the biggest one...  


WE FIND A LENDER WHO WILL APPROVE YOU!

Because guess what... someone who goes to lender A and doesn’t always fit the policy mould may fit with lender B! 

Imagine if you started your tour of the jungle only to find your lender wasn't the right fit for you, and didn't know the way - you have to go back to the start of the journey and find a new tour guide. Occasionally (and not often) we have a lender that declines a client, it could be that the property valuation didnt' stack up with that lenders valuer, guess who has the capacity to order two new free vals with two new lenders instantly, and push all your existing data to a new lender? BROKERS. Banks do not have this edge, they only work for themselves, whereas WE represent you and are motivated to get your loan approved because let's face it, even we do not get paid if we don't land you some debt!! Also, it's human nature to like and want our clients to get what they want, we love to get personally invested, so it's actually kind of awesome to be able to 'hustle' when the going gets tough and find a back up solution!
 
Furthermore, brokers are databanks of policy, and this is their MAJOR skill set when it comes to finding finance. Personally I am 17 years into broking and 19 years in finance and I’m still seeing new scenarios I haven’t seen before! The lending landscape never stops changing too, so we have to keep up, and we have done that at Wilson Financial by having Aces in their places! We have residential brokers, commercial brokers, equipment finance brokers, and a financial planner. We have a century of expertise in one spot, just to help you!
 
This is our passion and we love it. We are confident we enhance the client experience. We know lending is not a ‘one size fits all’ situation so we pride ourselves on finding the right product for you. All at no cost to you!
 
So how do we stay transparent?
 
We do a full commission disclosure in our credit proposal to every client. This MUST be signed before any client proceeds so nothing gets hidden or lost in a contract. We pride ourselves on being fully up front and honest about the money we make from selling you a lender’s product.
 
So, there you have it. A straight forward disclosure. No bells. No whistles. No T&Cs. Just truth. 
 
Interested in talking loans? 
 
Contact us today via the details below. We look forward to helping you on your journey.
 
Wilson Financial office - 1300 780 826 or 02 4860 3399

Following on from one of our recent articles on how financial institutions are helping Australian’s get back on their feet after the bushfires, this week we’re diving deep into some of Australia’s green lenders.

‘Green lenders’ are financial institutions who are effectively using your money to invest in companies and industries who do no harm to the environment. A bit like the way you might choose to use less plastic or buy more sustainably produced foods… these lenders want to do their bit.

.If you want to make more informed choices about what type of lender you are supporting, so you can select a green option next time you borrow, we have analysed lenders that we are accredited with here at Wilson Financial.

BANK AUSTRALIA
Bank Australia takes number one on the list for us! Bank Australia exists to create mutual prosperity in the form of positive economic, social, environmental and cultural impact. They believe in benefiting their customers, communities and the planet. Their money is regarded as clean because they never loan to industries that do harm, including; fossil fuels, live animal export, gambling, arms production or tobacco. In addition to this, all of their loans are subject to a Responsible Banking Policy.

Bank Australia have also recently introduced the Clean Energy Home Loan. If you are buying or building a NatHERS rated 7 Star or higher home, or planning sustainable upgrades, you could be eligible for a 0.40% p.a. discount off your interest rate for up to five years. The Clean Energy Finance Corporation are financing half this discount. They are also the first bank in Australia to have its deposit and home lending products certified 'responsible' by the Responsible Investment Association of Australasia, and they direct 4% of their after-tax profits to projects that help people and the planet.

They are the ONLY Australian lender listed in the ‘Don’t Bank On The Bomb’ report which you can read here.  

To read more on responsible banking at Bank Australia you can click here.

TEACHERS MUTUAL
Teachers Mutual believe in the power of responsible investment. Their focus is on ethical operations, taking action on climate change, offering socially responsible finance products and giving back to their community. They have been certified as both a climate neutral and climate conscious company by South Pole, the leading provider of global sustainability financing solutions and services. This certification means Teachers Mutual is a carbon neutral bank. For six consecutive years they have been voted one of The World’s Most Ethical Companies.

So… what about the big guys?

We dug up some data on the big four and a few of our other major lenders…

ANZ
At the core of their framework is fair and responsible banking that is, keeping pace with the expectations of customers, employees and the community, behaving fairly and responsibly and maintaining high standards of conduct.
Some of the ANZ’s most recent goals are to;

• Fund and facilitate at least $15 billion by 2020 towards environmentally sustainable solutions for our customers, including initiatives that help lower carbon emissions, improve water stewardship and minimise waste.
• Encourage and support 100 of our largest emitting customers in the energy, transport, buildings and food, beverage and agricultural sectors to establish, and where appropriate, strengthen existing low carbon transition plans, by 2021.
• Reduce the direct impact of our business activities on the environment by reducing emissions, increasing renewable energy useage, reducing paper consumption in Australia and New Zealand, increasing recycling rates in our Australian commercial offices and reducing water consumption in our Australian commercial offices (>10,000m2) by 15% by 2020 (against a 2015 baseline).

In early 2019 ANZ also pledged $100m of interest free loans to help New Zealanders better insulate their homes, therefore reducing the environmental impact of having to run additional heating. Whilst not an Australian offer, it was an ambitious step in the right direction for Green lending.

CBA
The CBA recently introduced a new reward scheme for energy efficient home owners who install solar panels. This initiative, aka ‘The Green Mortgage’ initiative, sees customers provided with a $500 cashback when certified solar panels are installed.  Apparently this is the first of many initiatives to come.

MACQUARIE
The environmental impacts from Macquarie Bank’s direct operations predominantly relate to the resources they consume in their offices, data centres, and from their air travel. Macquarie seek to manage these impacts by monitoring and reducing resource use, maintaining carbon neutrality, improving the sustainability of their supply chain and occupying and creating innovative and sustainable workplaces, through the implementation of their Environmental Management Plan.

Their steps to reduce resource consumption include energy efficiency measures, data centre virtualisation, waste recycling and water management programs across their global operations.
Through their focus on occupying sustainable workplaces they aim to design and construct new premises in line with sustainability best practice and, where possible, achieve accreditation such as 6 Star Green Star, LEED Platinum, BREEAM Excellent or equivalent.

Since 2010, they have maintained their carbon neutral commitment by reducing and offsetting the emissions from their energy use and business air travel. They do this by purchasing and retiring high quality voluntary certified carbon credits each year. 

NAB
NAB are committed to understanding and managing the impacts and dependencies of their business on the environment. A few of their recent green achievements include a reduction of 43% in paper usage from 2015, making a $70b commitment to environmental financing by 2025 to help address climate change, and a commitment to reduce their greenhouse gas emissions  by 21% by 2025.

NAB are also increasing plans to provide environmental finance from $55 billion to a targeted $70 billion by 2025.They are Australia’s largest arranger of renewable energy finance and 69% of their energy financing portfolio in 2019 was for renewables. They have also committed to increasing their internal renewable energy consumption from 50% to 100% by 2025.

ST GEORGE
St George are committed to reducing the environmental footprint of their operations and as such have a range of green initiatives on the go. These include; offering staff free loans of up to $4,000 each year, which can be used for purchases such as solar hot water systems and energy efficient appliances, committing to reducing the amount of paper they use and buying it from forests that are managed sustainably and reducing their energy consumption by implementing a range of energy saving lighting options. They have also undertaken a range of initiatives to improve water efficiencies.

SUNCORP
Suncorp conducts business in a way that protects and sustains the environment for current and future generations. Their Environmental Performance Plan focuses on decreasing emissions, reducing waste and creating a more sustainable workplace. In addition to this they are supporting ongoing transparency and regulatory reporting in regards to their impact on the environment. Suncorp has also committed to net-zero emissions by 2050 and increasing the use of renewable energy. 
​
WESTPAC
Westpac have published a huge amount of information on what they are doing on the green lending front. Here is just a snapshot of what we were able to pull up;

• Increase target lending exposure to climate change solutions from $6 billion to $10 billion by 2020
• Facilitate up to $3 billion in climate change solutions by 2020, e.g. green bond issuance and arrangement
• Support customers in the agribusiness sectors that are committed to net zero deforestation by 2020
• Help customers make their homes more climate-resilient and energy efficient by providing information on how they can make improvements to their home
• Give their customers the information they need to understand how they can make climate change conscious investments by disclosing the carbon intensity of investment portfolios and continuing to evolve our climate change disclosures

Westpac have also demonstrated best practice in their emissions management through setting a science-based target to reduce our emissions by 9% by 2020 and 34% by 2030.

MYSTATE
Not so much Green, but philanthropic, we wanted to give this smaller lender a shout out These guys are Tasmanian lenders who help local youth with accessible grants. They believe it’s the little ideas, local organisations and small acts that can help make a big difference in people’s lives and help build a richer Tasmanian community. The MyState foundation has been helping educate, support and nurture young people since 2001. To date they have awarded over $1.8m in grants to more than 80 not-for-profits across 200 different initiatives. They support organisations and charities who are engaged in education or development projects for young people; especially those who help develop self-reliance, provide opportunity for further education, increase financial literacy or assist young people living with a disability to access special education, care or support.
 
 
So there you have it… a look into how lenders are doing their bit to help the environment, the world, and their communities. Feel free to contact us for more information if we can be of assistance.

Effective 1 January 2020, the federal government has introduced a new scheme for first time home buyers. Under the First Home Loan Deposit Scheme the government will now underwrite (or guarantee) loans for low to middle income owners to get people into their first home faster. What this means is that first home buyers will now be able to enter the market with as little as purchase costs, and 5% deposit* and…. no lenders mortgage insurance! Lenders will still do their normal checks on your financial situation but this will make it easier to get a loan without having saved a 20% deposit. This one change could literally save you tens of  thousands of dollars! We also have word that we are able to negotiate rates with some lenders, as if you have a full 20% deposit which means your interest rate will also be eligible for better discounts as a result of the scheme with some lenders!
​(*lender's criteria apply)

Eligibility
You can check your eligibility by speaking to us, or visiting this link. Call us if you're unsure about anything though!

Property price thresholds
To ensure the Scheme is only available for the purchase of a modest home, or the purchase of land and construction of a modest home, the following property price thresholds (maximum property purchase price under the Scheme) will apply in capital cities, large regional centres and regional areas;
 
Region  and  Price Cap (AUD)
NSW - capital city - $700,000
NSW - regional centre   (Newcastle and Lake Macquarie) - $700,000
NSW - regional centre  (Illawarra) - $700,000
NSW - other - $450,000
ACT - $500,000
QLD - capital city - $475,000
QLD - regional centre (Gold Coast) - $475,000
QLD - regional centre (Sunshine Coast) - $475,000
QLD - other - $400,000
 
For the full property price threshold listing for Australia click here.

How to apply
At present Wilson Financial is accredited with six lenders on their panel that are rolling are approved under the government panel to participate with the scheme.  If you’d like more information or, if you’d like to apply, feel free to reach out to our mortgage broker contacts;
 
Wilson Financial office - 1300 780 826 or 02 4860 3399
Liz – liz@wilsonfinancial.com.au or 0414 798 760
Chris - chris@wilsonfinancial.com.au or 0467 999 230
Colin - colin@wilsonfinancial.com.au or 0428 423 051

​Australia is currently experiencing the worst bushfire season on record. If you are experiencing financial hardship as a result of this crisis, financial relief may be available. Several of Australia’s lenders have jumped on board to offer assistance to their affected customers and, more broadly, to the Australian community as a whole.
 
Below you will find a summary of what support financial institutions may be offering. You will also then find contact information for several major lenders. If you are unable to locate contact information specific to your lender please reach out to us as we may be able to point you in the right direction.
 
Each financial institution is offering slightly different support to customers. This support may include;
​ 

• Deferral of interest and repayments
• Loan restructuring and waiving of selected fees and charges
• Assistance with emergency accommodation
• Funding of new loans and loan top-ups
• Assistance with accessing term deposits early
• Emergency credit limit increases
• Expediting insurance claims for home, contents and car insurance policies
• Waiving certain fees and charges
• Agreements around forecloses or forced sales
• Concessional loans for businesses
• Grants to help cover temporary accommodation, food and clothing
• Terminal access fee waivers for customers with merchant facilities
• Putting a halt on all interest accrual on unsecured credit products
• Fast release of funds
• Card replacement, emergency cash and goodwill payments
• The provision of mental health support

 
Lender Contacts
 
ANZ
Customers impacted can contact a dedicated hotline on 1800 149 549.
Claims can be made online at https://www.anz.com.au/personal/insurance/make-a-claim/
Insurance customers can call 13 16 14.
Visit: anz.com/hardship
 
CBA
For information or to make a claim call 1300 720 814 or visit any branch.
If you're a business customer call 13 26 07 or your dedicated CommBank relationship manager.
Visit:  https://www.commbank.com.au/support/emergency-assistance-package.html
 
NAB
NAB customers who have lost their homes can immediately access a $2,000 grant to assist with urgent needs. These funds will be deposited direclty into the customer accoutns as early as the next business day.
NAB employees who have had to evacuate their homes can also access a 1,000 grant.
Call NAB’s dedicated team on 1300 023 429.
Customers impacted by the loss of a home who need assistance can also visit their nearest open NAB branch, contact their banker directly or call NAB Assist on 1300 683 106 (8am-8pm Mon-Fri, or 9am-1pm on Saturdays AEST/AEDT). 
Visit: https://www.nab.com.au/about-us/social-impact/customers/natural-disaster-and-crisis-support

 
Westpac
Call the Westpac Assist Team on 1800 067 497. You can also contact your local branch or Relationship Manager.
Business customers should call 1800 029 749.
For insurance claims contact 1300 369 989.
Visit: http://www.westpac.com.au/disasterhelp
 
St George
If you’re experiencing financial hardship contact 1800 629 795. 
For insurance claims contact 1300 655 489. 
Visit: https://www.stgeorge.com.au/disasterrelief
 
Macquarie Bank
Customers should call 1800 806 310 for assistance.
Visit:
https://www.macquarie.com/au/personal/fire-emergency
https://www.macquarie.com/au/about/disclosures/financial-hardship
 
ING
If you’re experiencing financial hardship contact 13 34 64
To make a claim call 1800 611 422 (24/7)
Visit: https://www.ing.com.au/faq-result.html?faqid=7449
 
MyState
MyState Customer Care Team is available on 138 001.
CGU insurance policy holders wanting to make a claim should contact CGU Claims on 13 24 81.
Visit: https://www.mystate.com.au/about-us/support#/about-us/contact-us/financial-hardship
 
Resimac
Call 1300 793 741 or email arrears@resimac.com.au.
Visit: https://www.resimac.com.au/bushfire-support
 
Pepper Money
Call the hardship team on 1800 356 383, between 8:30am and 5:30pm, Monday to Friday (AEDT). 
Email assist@pepper.com.au
Visit: https://www.pepper.com.au/lending/help-centre/customer-service/financial-hardship-assistance

Liberty Financial 
Call 13 11 33
Email  help@liberty.com.au
Direct message on Facebook  https://www.facebook.com/liberty.social/
Visit: https://www.liberty.com.au/financial-hardship
 
La Trobe Financial 
Call the Mortgage Help Team on 1800 620 639
For insurance claims call CGU Claims 24/7 on 13 24 80
Visit: https://www.latrobefinancial.com.au/

Rate Setter
Call 1300 768 710  Monday to Friday 9.00am to 5.30pm AEST
​https://www.ratesetter.com.au/
 
Other assistance available to residents of the Wingecarribee Shire Council
 
Mayoral Relief Fund

Wingecarribee Shire Council have launched a Mayoral Relief Fund for residents directly affected by the Green Wattle Creek or Morton fires. Residents can apply for $500 for a household or $250 for individuals. Identification may be required. To make a claim residents need to fill out the PDF form available here: https://www.wsc.nsw.gov.au/mrf
 
Free Mental Health Support

She Counselling
She Counselling is offering 5 free 60 minute counselling sessions for those directly affected by the Green Wattle Creek or Morton fires. She Counselling works with women over the age of 18. Services are provided in Mittagong.
Visit: https://shecounselling.com.au/
Call: 0412 707 242
Email: info@shecounselling.com.au
 
Nest Psychotherapy & Counselling
Nest Psychotherapy & Counselling is offering up to 4 free counselling sessions at their office in Picton. Online and phone crisis support is also available. Nest works with anyone over the age of 16 and extends a particular welcome to anyone from the LGBTQIA community.
Visit: https://nestcounselling.com.au/about/
Call: 0484 223 042
Email: hello@nestcounselling.com.au
 
Want to give back to your community?
 
Here are 3 great ways to support those affected by the devastation…
 
Celeste Barber - RFS
Australian Comedian Celeste Barber started a Facebook fundraising campaign on January 3, 2020. Money raised is going to The Trustee for NSW Rural Fire Service & Brigades Donations Fund. At the time of publication, this fund had raised nearly $50 million!
 DONATE HERE: https://www.facebook.com/donate/1010958179269977/10157671223743418
 
My Sisters Keeper – RFS Masks
Ophelia Haragli is a Sydney cancer survivor who now advocates for cancer patients. She runs the ‘My Sisters Keeper’ Facebook page. When learning about our volunteer firefighters’ desperate need for respiratory masks, she couldn’t help but do something.
 
Ophelia started a fundraising campaign to raise money to buy masks to protect volunteers from the short and long term implications of breathing in smoke. In record time Ophelia researched and sourced the masks and got them out to RFS stations, right in the thick of the crisis. Her lifesaving work continues.
More information: https://www.facebook.com/Mysisterskeeperophelia
 DONATE HERE:
 
Ophelia Haragli 
BSB: 082231
Account number: 436029234
Description: MSK firefighters
 
World Wildlife Fund - Australian Wildlife and Nature Recovery Fund
The World Wildlife Fund (WWF) works in partnership with a variety of organisations, communities and individuals to save the Australian environment. Among other things, their work focuses on protecting those endangered species most in need. 
 
“It’s been estimated that around 1.25 billion animals have been killed across Australia to date. This includes thousands of koalas and other iconic species such as kangaroos, wallabies, kookaburras, cockatoos and honeyeaters burnt alive, and many thousands more injured and homeless.” (Source: WWF)
 
WWF are collecting funds to help save wildlife but also to assist in restoring our lost forests once the fires have cleared.
DONATE HERE: https://donate.wwf.org.au/donate/koala-crisis/koala-crisis?t=AP0120W03#gs.rno0gb



​The team at Wilson Financial are happy to assist in any way, please contact our office on (02) 4860 3399 if you wish to talk to someone or need assistance connecting to these services. ​

Firstly – let’s just make it clear – I LOVE SELF-EMPLOYED CLIENTS!
 

I recently had a client, let’s call him ‘Joey’ – and the first thing Joey said to me when he called me to discuss his needs was “you should know that I am self- employed, I know banks don’t really like lending to people if they are self-employed”.
 
Leah:  “that’s Ok Joey, I do not find that to be the case and I use all the major banks and 36 others so let’s have a look at it for you”.
 
Joey had recently been to his local bank to find out if he could borrow money to purchase a new family home, but he had been told this wasn’t an option for him because he didn’t earn enough over the last financial year to service the new debt. Joey was disgruntled by this advice, as you can imagine – so he came to me for a second opinion.
 
I got to talking with Joey, I knew that if I wanted to understand his business financials, I would need to firstly understand his business and how it operates.
 
“Leah I’m really worried you won’t like what you see, the profit is only very small” Joey pointed to a small figure that definitely wouldn’t get him a loan. “That’s Ok Joey” I said “that is just a reflection of your company’s taxable income, but what about the company wages to you, and addbacks like deprecation and leases that the bank can add to your wages? Also these directors fees, are p​aid to you, and make your profit look small, but you personally received these!”.
 
Reading Joeys financials after taking the time to understand his business structure, meant I knew exactly what figures I could use for my serviceability assessment. I was able to get Joey pre-approval for a loan of $712,000 to upgrade his family home.
 
Reading financial statements can be daunting if you don’t know what you’re looking for. Thankfully, I have spent the last two years intensively training in self-employed applicants, and now understand various structures and flows of income, and how to present this to a lender to obtain approval successfully. This is a specialty of Wilson Financial and where we really shine.
 
Joey and his family have now purchased their beautiful new family home, and they even got to keep their existing home as an Investment property.


If you are self-employed and looking for a second opinion or want to talk to an expert about borrowing money – talk to Leah today!
 

​Equipment Rent Vs Chattel Mortgage
 
Last month we had an enquiry from Bob* a tradesman to finance some equipment for his business. Not your run of the mill car or truck, but some specialized equipment for completing the job to benchmark levels. This is not considered a straightforward asset so it requires specialist finance and rate shopping.
 
Bob had already found the exact piece of equipment he wanted, and was keen to use it on the job asap. The supplier had in house finance available and had already pre-approved him for the buy! Bob’s business partner however wanted a second opinion. Everything was moving too fast and he wanted to ensure it was a good deal so wrote to us to check it out and sent us a copy of the contract.
 
Upon review of the offer we noted that it was a ‘Rental Schedule’ which means that you return the goods at the end of the lease. Jess immediately rang Bob to discuss it “Bob, do you realise that after four years, you have to return this equipment? Has anybody spoken to you about this? I’m just trying to compare this quote to us but at the end of our finance, you will own the equipment, and I just want to be sure we are comparing apples to apples”. Bob pondered “Nobody told me this Jess, let me ring and find out”.
 
Later that day Bob rang Jess back “Ok, they have told me I can have the equipment for $1, at the end of the rental schedule, so now you can compare, what can you do for me?”. Jess thought about this, something didn’t sound right, as nowhere in the contract did it say $1 “Bob, I’d like you to request that they put that in writing, just to be sure that you know the contract terms are only $1”. “Fair enough” said Bob, and went back to the suppliers.
 
The following day Bob rang with news “Jess, they have put it in writing but they have now told me that the buy back will actually be $1,980 for the equipment after the 48 months! I’m really shocked that the original quote was so much lower!”. Now that he had asked for it in writing, the figure had changed!! “Bob that’s ok, now that we have the true figure we can compare costs” Jess explained.
 
Jess was able to provide Bob with a competitive quote, and compare the 48 payments PLUS the $1980 to her quote for 48 payments with no balloon or costs later. Jess also structured the finance as a Chattel Mortgage “Bob, by having this as a Chattel Mortgage, and being a GST registered business, you can claim the GST on the purchased goods as a GST credit in this quarters BAS, that’s close to $2k in GST!”. Bob was thrilled with the idea, and proceeded with the purchase via a Chattel Mortgage that Jess arranged.
 
The importance of speaking with finance brokers who are specialists in equipment can be the difference between thousands of dollars in your back pocket or falling into the trap of not understanding all the fine print in the contract. We will always seek to compare the terms of other contracts with ours, and help you find ways to save money.
 
Bob now has his equipment on site and is enjoying working much faster, and is assured that he will not have to hand it back at the end of term!
 
*names and quotes have been changed to hide identity of the real client. This is based on a true story that occurred in January 2018

​Of public interest these days is the choice to fix or choose variable on your home loan. 

You may have heard of bankers and brokers spouting the concept of 'the house always wins', meaning I guess that, the banks have better modelling, enabling them to know how to price fixed rates so that they always come out on top! Rumours aside, the best thing is to inform yourselves as to what the benefits are and what the drawbacks are.

As mortgage brokers we don't advise on locking in rates or remaining on variable, but buyers should definitely consider the pros and cons. As mortgage brokers we CAN however provide you with options and a lot to think about....
 

The Pros:
Great for those on a budget seeking security, who cannot afford a hike in rates.
Stability in your budget, assuredness that your rate won’t increase (or decrease)

The Cons:

• A fixed rate can attract an early repayment penalty if you break out of it early via early repayment, sale, refinance. This fee is unascertainable until the rate is broken, as it will be based on wholesale market rates at that time. That's a very big IF! When the Rudd government legislated out "early repayment penalties" many people were mistakenly led to believe that fixed rate penalties would be waived also. Not true! So borrowers should exercise extreme caution and be committed to seeing the term of the fixed rate out. Different Lenders offer between 1and 15 year fixed rate terms.
• Most lenders do not have 100% offset accounts for fixed rate loans, so consider keeping some of your home loan on variable by splitting it, so that you can still use an offset account and park any savings somewhere.
• If the cash rate drops, you cannot simply switch out to a variable rate. The more the cash rate drops the higher your early repayment penalty could be.

 
The reserve bank has repeatedly announced more stability in the cash rate. The Sydney Futures Exchange long term yield curve currently pegs the market expectation to be one to two rate rises next year of 25bps.
 
What should we do!??!
 
A popular option we often find our first home buyers love is what we call a cocktail loan! Why not mix it all together a little if you want the best of both worlds...?

A lot of our clients split the loan half into fixed and half variable. This helps the client hedge their bets and allows them to still use a 100% offset account linked to the variable portion of the loan, and they can make unlimited extra repayments to that part without penalty. The client gets the best of both worlds and can mix the loan up into any portion they want.
 
Also, you can look at asking your broker if the banks are negotiating on any fixed rates. Some lenders are currently in a little price war on the 2 year fixed rate, so the carded rate in the branch may not be the best you can get, always ask your broker!

Lastly, I would stress that if you do wish to fix, consider paying the $395 annual fee for the 'package' that nearly every lender has. What this does, is with most lenders, gets you a further 0.15% off the fixed rate. This doesn't sound like much, but if your loan is just $263,000 the discount will cover the package fee each year, any loan size higher than that is pure savings. As an added bonus, you will get all the benefits of the package which are quite often, lowered app fees on various bank products, free renegotiations on your home loan (saving you on switch fees), valuations, offset accounts and transaction accounts without fees, annual fees waived on credit cards, and other soft benefits ! A broker can weigh all of this up for your accurately to help make an informed decision.

Step 1 - Have your loan pre-approval in place
Knowing how much you have for a deposit and how much you can borrow gives you the confidence to make a calculated offer on your property of choice.

Step 2 - Choose the right home in the right location
Research your chosen suburb by checking all advertised listings in newspapers, the internet and real estate agents. Make sure that you know the price of recently sold comparable properties. By visiting open houses and attending auctions you will be more informed of the realistic value of a property. Does the property fit your family’s growing needs?

Step 3 - Conveyancer/legal representative
The real estate agent will provide a copy of the contract for sale which should then be given to your conveyancer for advice and checking. The conveyancer will advise you of your cooling off rights (which varies from state to state). Once the contract has been signed by both parties, the contracts are legally binding. The contract will indicate when the deposit will have to be paid. If no pest and building inspections have been carried out, it is advisable that they are ordered by the conveyancer or you can arrange this yourself.

Step 4 - Make an offer
For properties sold by private treaty you will need to make an offer to the listing real estate agent. Obtain a copy of the contract for sale and organise for your conveyancer/legal representative to check it.
Properties being auctioned are frequently open to offers prior to the auction date. However, if sold at auction you will usually be required to pay a deposit of 10% immediately. The contract for an auctioned property is unconditional and no cooling off period applies. If bidding at an auction, make sure that your conveyancer/legal representative has checked the contract and organised pest and building inspections before you bid.

Step 5 - Final loan approval
We will organise your loan documents for the balance of the purchase price to be prepared and signed by you.

Step 6 - Insurance
• Lenders Mortgage Insurance
• Your lender will require you to organise building insurance.
• Mortgage Protection Insurance
• House and contents Insurance
• Income Protection Insurance
• Life Insurance
• Total and Permanent Disability Insurance

Step 7 - Final Inspection​
Arrange for a final inspection (just prior to settlement date) with the real estate agent. Check for all inclusions in the contract for sale and that they are in working order. Check taps/light switches, power points, air conditioners, exhaust fans, hot water, swimming pool equipment and security system and request copies of all manuals for stove, dishwasher etc.

Step 8 - Settlement
Your conveyancer will attend the settlement. This is the day the balance of the purchase price is paid to the vendor. Stamp duty and lender’s mortgage insurance (if applicable) will also have to be paid. You can collect the keys from the real estate agent once settlement has been advised.

What if something goes wrong or you change your mind?
If you have signed a contract to buy a house it may be a costly exercise to withdraw even if you have not reached settlement. If the cooling off period has passed, the contract is binding. If you wish to get out of the contract you may be liable to pay compensation to the vendor. The amount will depend on the loss suffered by the vendor and is usually based on the amount it would take to re-sell the house including any loss on the subsequent sale. Read your contract carefully to be aware of the consequences of defaulting on the contract. If you do not wish to proceed with a contract, seek independent legal advice as soon as possible.

​Here is a little insight into a few of the more interesting things that occurred in the last 24 hours.
 
“Hi Liz, I need a favour” said a friend, Harrison “someone has accessed my identity and fraudulently taken out a credit card in my name, and I need you to do a credit check on me to see if there are other banks involved that I have now got credit cards with”.
 
“Oh no” I said, “not a problem!”.
 
We then completed the necessary forms, and as Veda accredited agents accessed his credit file. Thankfully Harrison had caught them early by opening his mail box and finding the card, so no other banks were implicated yet. Being in the finance world himself Harrison mentioned “I’m going to set up a Veda Alert from here in, I just want reassurance that I know about this as soon as possible”. I agreed. Veda Guard tells you if there are certain changes made to your credit file without your knowledge, such as someone applying for credit in your name.  It’s worth checking out, follow this link https://www.veda.com.au/yourcreditandidentity/product-comparison/veda-plan Veda states that more than one in five Australians have experienced some form of identity crime ! They have another service called Identity Watch https://www.veda.com.au/yourcreditandidentity/protect I would suggest to you though, that, Veda has SO many plans and services on it’s website that can easily be confused. Bottom line, if you need any help, call me!
 
Quite some hours later another call came in from Gary “Hi Liz, I hope you’re well, but I have some bad news. I just got diagnosed with a condition and I need to know if I took out some personal insurance with you when I took out my mortgage”. I had to tell Gary he didn’t. Years ago when Gary rang us, we didn’t have those services, or offer them yet. It always seems like hindsight is 20/20 and it’s never easy telling someone that they declined insurance or didn’t have any in place. Gary now needed to take a half a year off work. Suffice to say I had some ideas for him “Gary please call the hardship line with your lender, and start now with requesting and negotiating a moratorium on your repayments. You really need a strong strategy to cover your mortgage between now and when you return to work in June”. I found the number and encouraged Gary to call as soon as possible.
 
By providing medical reports Gary would easily qualify for hardship provisions. Essentially if you are finding it hard to meet your loan repayments for example, because of illness, unemployment, or changed financial circumstances, you can apply to your lender for a ‘hardship variation’ which will change the terms of your loan. To find out more about how to apply for this, head to the governments Money Smart website on this link https://www.moneysmart.gov.au/managing-your-money/managing-debts/trouble-with-debt#hardship Further if you are not happy with your lenders response you can talk to the Financial Ombudsman Service or he Credit and Investments Ombudsman, depending on the jurisdiction. 
As Gary had problems with memory I reminded him of his life insurance policy, and super balances “Perhaps contact your super provider to see if you can access the funds sooner under hardship provisions”. It was also possible he had some trauma insurance within his life insurance policy. Gary was able to take down some details that assisted with that process. Gary actually commented “Well even if you had offered insurance I probably would have told you that I couldn’t afford it as I was on a budget at the time”. Insurance is the kind of thing most of us can’t afford not to have however, and he realised this now.


So much can happen in a day. Remember, we are aim to be as resourceful as possible at Wilson Financial. Whilst we may not always have the solution you seek when you ring, rest assured as our clients we will do all we can to help you with your financial circumstances.