In the realm of home loans, fixed-rate mortgages often become a popular choice. However, borrowers should be aware of significant risks associated with fixed-rate loans as we see them as ‘safe’ but there are major risks.
 
Aside from the obvious certainty that is offered on fixed rates, consider ‘break costs’.
 
Harking back to the Global Financial Crisis, Australia's monetary policy and mortgage market were not immune to the financial contagion that followed the collapse of the U.S. sub-prime mortgage market. The Reserve Bank of Australia drastically reducing the cash rate from its peak of 7.25% in June 2008 to a mere 3.00% by May 2009.
 
During this period I received many distressed enquiries from new clients looking to refinance to the lower variable rates. They had fixed their rates, and were paying nearly 4% more than the variable rates. Due to the plunging rates, the break costs they were being quoted were in the tens of thousands of dollars. This was a possibility they had been unaware of when fixing their rates. Though it may have been disclosed in verbal and written documentation from their bank, it must have not been explicit enough.
 
In giving credit advice, we will always explain that the most significant risk is the potential for break costs. These costs can be seem disproportionate if interest rates have decreased since you locked in your rate, as they are based on the wholesale price you bought funds at when you locked your rate. Other things to consider are lack of access to redraw, and also that few banks allow a 100% offset on a fixed rate.
 
If you're contemplating fixing your home loan, it's crucial to be aware of these potential challenges. Thoroughly assess the advantages and disadvantages before making a decision, and consult a qualified credit advisor such as Wilson Financial before making a decision.
 

​I get it, it’s confusing, but let us explain why we go to these lengths to cover our clients!

​Helen who fronts up Wilson General Insurance will look after what is regarded ‘General’ insurance so these are things like;

​Helen is called a General Insurance Broker and she is an Authorised Representative of the Financial Services Licensee Ausure Pty Ltd with access to hundreds of insurers.

George on the other hand is a Financial Planner who fronts up Wilson Wealth & Insurance. Amongst all the important full financial planning he also helps set your  ‘Personal’ insurance, which is;

This business is run under the licencee Alliance Wealth Pty Ltd Financial Licensee. The licence to sell both products are different, one relates to things, another relates to people.
 
Is there any cross over?
There can be perceived cross over, so its important to educate yourself and use experts to guide you, particularly in these instances such as Income Protection vs Accident & Illness as well as Business Interruption v’s Keyman or Business Overheads
This is because the policies do have similarities in when a claim would occur.

 
Accident & Illness - Helen
 
Personal Accident / Illness policies are issued by general insurance companies and may be cancelled by the insurer due to changes in occupation / health circumstances or in the event of a bad claims history. Policy weekly benefits are normally paid for between 12 months to 2 years. Waiting excess periods are generally 7 to 14 days. Note this policy can be extended to include Accidental Death and Disablement paid as a lump sum.
 
 
Income Protection Insurance - George
 
Non-Cancellable Income Protection policies are issued by Life Insurance Companies and are not subject to GST. This type of policy cannot be cancelled by the insurer except due to non-payment of the premium. This cover is mainly available to white-collar occupations or qualified trades persons.
 
Benefit payment periods are usually greater than 2 years, eg. through to Age 65, meaning you could potential be on claim for 20 years or more.
 
When comparing the two types of policy you should be aware that the Income Protection (1 above) has superior ancillary benefits and premiums are able to be paid annually or monthly. Another consideration is that Income Protection premiums increase with age. It is important when stating incomes that they are net of business expenses as the net income is used to calculate your insured benefit. It is important to review your level of cover on a regular basis.
 
What else can be confused for the same policy?
Business Interruption (Helen/General) Vs Keyman Insurance or Business Overheads (George/Personal) as the policies do have some similarities in when a claim would occur.
 
Business interruption would be claimed following a property loss, say fire/flood affected. Business overheads insurance would come in to when the life insured is unable to work due to illness, injury or medical condition. The insurance then pays a monthly benefit to the business for a 12 month period to cover all the overheads of the business including rent, employees, vehicle and equipment leases  and even a replacement for yourself so your business can maintain its health and momentum while you recover. This policy can be held in addition to your personal income protection, Disability and Trauma insurances.
 
 
How do I figure it out?
If you’re not sure what you need, talk to Helen or George, they’ll arrange to meet with you either together or separately depending on how complex you are, and put the most suitable cover in place for you. When it comes to making tough decisions about where you spend your money and what you need, it comes down to understanding your risks and concerns, your budget and helping you devise a strategy that gives you peace of mind without breaking the bank. As we deal with claims, we can help guide you and provide explanations on what covers your business or you personally need to consider.
 
General Insurance advice is made on behalf of Wilson General Insurance Pty Ltd (ABN 80 648 713 320) as an authorised representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433

IN order to keep you reading every item below is not your run of the mill things to do list...
​
I wrote this off the back of Annie Kane putting the shout out to her broker reader group that she was going a bit Stir Crazy. I love how Annie, Editor of The Adviser was completely transparent and popped her email address in her recent request for help! What a brilliant lesson to ask for help. So in honour of you Annie, here are some things I think we can all be doing during lock downs to feel productive, or better about ourselves!

You know, if you do not have a slush fund for ALL of your weekly, fortnightly, monthly and annual bills how are you even adulting? This is by far one of the best things I ever did myself and it does away with budgeting and worrying about hard mail! All you do is create a list of all your bills and how much they are. Add it all up to an annual figure. Divide that figure by your pay cycle i.e. 26 for a fortnight or 52 for weekly. Stick that much in your slush fund every week, ask HR to transfer it directly there so it doesn’t even touch a spending account, and use it to pay all your bills. ​​That way you know the rest is available for saving or spending. Creating a slush fund account was one of the best things I ever did for myself emotionally. At all levels of my business and family’s growth I knew how much we needed every week in that account to pay the hard non optional bills and it gave me a lot of confidence in my capacity to be the main breadwinner for my family when that happened.

​Gratefulness is a wonderful thing and scientifically proven to result in increased levels of happiness. However, sometimes you just need to get things off your chest. I speak with my children about gratefulness a lot, however, my five-year-old Winnie this year, started sharing ‘Badfuls’ which are things she is still unhappy about that happened to her that day. I believe badfuls are a great lesson, they remind you to check in with your loved ones for empathy. Checking in on the phone with a friend that can express empathy for your ‘Badfuls’ may just help you get through the difficult times. Just remember to balance them out with some ‘gratefuls’ and listen to your friends badfuls too. Remember, if you're suffering and speaking to friends isn't enough, Lifeline are there to talk on 131114, they even have a texting service too now.

​You know back to my slush fund that I was just gloating about. If you have debits coming from five places; your credit card, your income account, your partners credit card, and some random other account, it can become a nightmare. Even when you apply for finance, this can slow down the process too as banks are scrutinizing expenses and management of your accounts. So, I recently moved every single DD to my slush fund. Now when I want to check if something was credited back, or was the prescribed amount, or to notify a lender or insurer of a change, I know which account it comes from or needs to come from. It’s simplified things. For instance, I cancelled my audible account TWICE, and they are still charging me. Because I only had to check one account, I noticed it was still being charged. Make a habit of checking it every couple of weeks to look for strange transactions. As it’s not mixed in to your spending account, the slush fund can help alert you faster to these types of things.

This is in no way in support of doing anything too crazy, this is about INTENTION. In 2016 I was doing a Dry July, after years of overwork I was burnt out, and I ended up in hospital with septicaemia and having my appendix cut out urgently. Of course, I was badful of Dry July and blamed it (I still do)! Whilst I realise that Dry July was not entirely to blame, it made me realise the pressure I was putting myself under was too intentional.  So I invented Oversupply July. I still support and sponsor others in Dry July, I just choose to raise Cancer money in May with the Biggest Morning Tea instead! Oversupply July is licence to intentionally drop my guard. It is a renourishing and regenerative effort to bunker down, enjoy the best of Winter, and laying low with Covid without all the guilt.  Oversupply July does not have to be reckless, it’s just an intentional relaxation of ALL of my rules for one month. Make your own month, if your body is craving a break, give yourself intentional relaxation time. 

Trust a finance person to talk about tax. Yet, lets be tactical here. Right now your health fund, lenders and property managers are emailing you end of year statements, why not pop those straight in a file and email your accountant?
Also, a lot of you are required to have your taxes up to date for the best shot at lending, yet you dont know when that will be, how about give your tax agent a heads up and pop in their queue instead of being urgent later on? 
I am really excited to get my taxes done and focus on the next big job so get it out of the way now! If you finish something like this, it's a big tick off the life chore list and you'll feel like you got something done in lock down. Here is a handy checklist link i created six years ago when I was excited about taxes then too. As you can see, I'm excited about tax right at the start of the new financial year. 

Please note, as COVID related posts are restricted on time/lender/geography now we will be posting invidual blogs instead of updating http://www.wilsonfinancial.com.au/covid-19.html web page which has now been moved but is still accessible.

Temporary Deferral Options for Impacted Customers
 
Over the weekend, CommBank announced additional support for customers impacted by the latest Greater Sydney lockdown and New South Wales coronavirus restrictions.

Short-term home loan repayment deferrals 
For customers who have been financially impacted by the lockdown in New South Wales, we are offering a one-month deferral on home loan repayments.

This deferral is available to customers impacted by the New South Wales restrictions for a range of reasons, such as:

• They have been financially impacted, for example they are unable to work or their business has experienced or is anticipated to experience financial hardship due to the restrictions.
• They live, work and/or have investment properties or interest in the impacted areas in New South Wales.
• Customers who work or have a business in New South Wales, but live in another state or territory, and have not been able to work or their business has been or is anticipated to be impacted due to the extended lockdown and restrictions.

Please note: Arrears will continue to accrue during the deferral period and we will work with every customer at the end of their deferral to make a plan to repay the arrears independently with a suitable payment arrangement.

Other assistance options available

In addition to these short-term home loan repayment deferrals, other options available to customers include:
Accessing money customers may have in redraw in their eligible loan;
Restructuring home loan debt;
Switching to a Fixed Rate home loan;
Reducing repayments to the minimum monthly repayment amount; and

Using money in the customer's Everyday Offset (if available to them)

In November 2020, CommBank announced a freeze on forced sales, which remains in place until September 2021 for eligible customers impacted by coronavirus who are struggling with repayments.

Customers are also able to seek assistance via the Federal Government, which recently announced a new Temporary COVID-19 Disaster Payment for people who are unable to work because of lockdown.

Further support updates

We are monitoring the evolving coronavirus situation closely, and will notify you of any additional assistance options available to impacted customers, either in New South Wales or other states and territories across Australia.  

We will continue to update CommBroker and the CommBank website with any new information. Additionally, you can follow our various social media channels - including LinkedIn, Facebook, Instagram and Twitter - to stay up to date with any announcements. 
Where to go for help

Customers who require help can contact our Financial Assistance Solutions team by:
 
Requesting assistance online in NetBank

Calling 1300 720 814, 8am-9pm AEST Monday to Friday, or 9am-2pm AEST on Saturday

National Document Delivery Options
 
As we recently shared, there are a range of document delivery options available to customers across Australia, designed to provide them with the right support and experience. If your customer has an impending settlement date, DigiDocs or one of the ApplyOnline options below may suit them to receive, sign or return their Home Loan documents.
 

​Australia has migrated to a Positive Credit Scoring system. Where only negatives were recorded before, meaning no actual numerical score was given, we are now reporting positives resulting in a score from between 0 to 1200 Lenders will use this credit score to help decide (amongst MANY OTHER factors) whether or not to lend you money.

Let’s talk about two fictional characters that could represent clients of ours at Wilson Financial. Any resemblance to actual clients of Wilson Financial is purely coincidental...
 
Bobby’s credit score had an unpaid council rates notice, which led to a court judgement. He had no idea as he had moved home and believe it or not, councils move very FAST when it comes to recovering debt. They have even been known to use debt collectors. Further, Bobby had made yearly enquiries for credit cards, Zip-pay, and personal loans. His  score was below average as a result at 495.

Alicia’s, a different applicant, had a credit score of 1043, with very few enquiries, no defaults, she presented an excellent track record of paying all current debts.

Which do you think the lenders prefer to see?

You see, each credit score comes with a ‘likelihood of default’ in the next 12 months and Bobby’s was over 8%. Those are NOT good odds. For lenders, bad credit clients are expensive, and do not return on the investment if they need to foreclose. Lenders in Australia have just come out the other side of a royal commission too, so are very risk averse. Even the Reserve Bank Governor has been touting that lenders should take more risk. However, credit scores are definitely making things hard for some Aussies like Bobby.

Now lets talk about Bobby and Alicia applying for what we call "High LVR Lending" also known as low deposit finance for instance. In Alicia's case her credit score will be instrumental in shepherding her through, but for a 95% lend, it will be very hard for Bobby to obtain approval solution  until he seeks credit repair and pays his council bills and does some work to improve his score.

Did you know, that you  have the right to access your credit score and credit report for free.

Now we STRONGLY recommend accessing only these three company’s for your report:
•             Equifax
•             CheckYourCredit (illion)
•             Experian
Since different agencies can hold different information, you may have a credit report with more than one agency.
We do not recommend other ‘free credit score’ websites online and in our experience Equifax is the most commonly used by banks. Sometimes we are quoted scores from free websites that have no resemblance to the score we obtain from Equifax on the report. 
You can pay on Equifax’s website or you can get the free version which is a lot slower process via this link https://www.mycreditfile.com.au/products/equifax-credit-report-formerly-known-my-credit-file

Applicants of Wilson Financial can request a copy of their credit file also.

How did they work out a credit score??

Well Bobby & Alicia had wildy different credit scores so here is what they tell us matters
•             How much money you’ve borrowed
•             How many credit applications you’ve made
•             If you pay on time
•             Defaults/Bankruptcies/Court Judgements will lower your score

In Bobby’s case, he had a lot of credit enquiries, and a court judgement which injured his score. It's not forever though, it can be rebuilt and is constantly being updated.

What will be in your report?

Your personal data such as;
•             your full name (married names/other changes)
•             date of birth
•             Your current and prior address
•             Your driver's licence number
•             Credit products
•             Repayment history
•             Defaults on utility bills, credit cards and loans
•             Credit applications
•             Bankruptcy and debt agreements
•             Credit report requests

Fixing  mistakes in your credit report
​
If anything is wrong you can ring Equifax or Illion to fix it. We have seen twins, or duplications of peoples names wearing the same credit data. In the case of the twins, they obviously had different names, but the data went on to the wrong twins account (suspicious of course, sibling rivalry?!). Regardless, it’s important to check your file for debt enquiries that are not yours. Identity theft does happen.

In closing

Educating yourself about your credit score is important. If you're unsure, get your credit file first and start there. A frank discussion with a licenced credit advisor at Wilson Financial will open your eyes. We have worked with "Bobby's" plenty of times to assist them rebuild their scores. It does take time, but without knowing where to start, rebuilding is hard. We have had had great success with credit repair company's and can recommend them where needed too. The most important things to consider though are

•             Pay all your bills and finance facilities on time EVERY time, as missed payments are now recorded
•             Be careful with utilities when you move homes, ensure you closed the final account, or updated your address
•             Do not make unnecessary enquiries, try to limit the frequency of your credit enquiries to once a year or less
•            Check your credit file every couple of years to ensure the data is accurate

As always, we are here to help with any questions, just call or email the team!

Are you a first home owner looking to build or buy a house or land?
 
Are you wondering what grants might be available to you?
 
Look no further than our state by state (and territory by territory!) guide below.
 
Here you’ll find information regarding grants, concessions and discounts… all set to help YOU achieve your property dreams!
 
***This article was posted on the 26th June 2020 and all active grants were below, please check with your broker, or your relevant State Revenue Office to determine these grants still apply***
 


ALL STATES AND TERRITORIES (NOT REQUIRED TO BE FIRST BUILD)
In response to the deepening financial crisis stemming from the Covid19 pandemic, the Australian Government has announced a time limited, tax-free grant program to help boost the residential construction market.
 
A $25,000 grant will be available to eligible owner-occupiers (including first home buyers) who wish to build a new home or substantially renovate an existing one.

Home Builder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
 
More information is available here.
 
AUSTRALIAN CAPITAL TERRITORY

Home Buyer Concessions
The ACT Government has a concession scheme to help people buy a home or residential land. All properties in the ACT are eligible for this scheme which will lower the duty payable. Unlike the previous concession scheme, it applies to vacant residential land and both new and established homes, anywhere in the ACT and at any price.
 
More information can be found here.
 
NEW SOUTH WALES
 
First Home Owner Grant (New Homes)
A $10,000 grant for first home buyers buying or building a new home under the First Home Owner Grant (New Homes) scheme. Purchase date must be on or after 1 January 2016.
 
More information and eligibility criteria is available here.
 
First Home Buyer Assistance Scheme
Unlike the First Home Buyers Grant (New Homes), the First Home Buyer Assistance Scheme
applies to buying an existing home, buying a new home and buying vacant land on which you intend to build a home. This scheme relates to stamp duty exemptions. If you’re a first home buyer, you may be entitled to a concessional rate of stamp duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).
 
If you are buying land…
Under this scheme you won’t pay any transfer duty if your land is valued at less than $350,000. For land valued between $350,000 and $450,000, you’ll receive a concessional rate.
 
If you are buying a new or existing home…
If your home is valued at less than $650,000, you can apply for a full exemption so that you don’t have to pay transfer duty.
If the value of your home is between $650,000 and $800,000, you can apply for a concessional rate of transfer duty. The amount you’ll have to pay will be based on the value of your home.
 
More information and eligibility criteria is available here.
 
NORTHERN TERRITORY

Possibly the best state to build in when you include all of these grants, discounts, and the builder bonus you can get some serious help!
 
First Home Owner Grant
From 7 May 2019, if you are buying or building a new home, you can apply for a First Home Owner Grant of $10,000. From 1 January 2020, you can apply for the First Home Loan Deposit Scheme. To find out if you are eligible or for more information, go to the Australian Government National Housing Finance and Investment Corporation website.
 
More information and eligibility criteria are available here.
 
BuildBonus Grant
BuildBonus was introduced in February 2019 to help Territorians fulfil their dream of building their new home. If you are buying or building a new home you can apply for a grant of $20,000. The BuildBonus grant is available to Territorians regardless of prior ownership.

​More information and eligibility criteria are available here.

Territory Home Owner Discount
If you are buying an established home, a new home or land to build a new home in the Northern Territory (NT), you may be able to get up to $18,601 off stamp duty. The home must be your principal place of residence.

More information and eligibility criteria are available here.

QUEENSLAND
 
First Home Owner Grant
A $15,000 grant to help first home owners get their new first home sooner. Purchase date must be 1 July 2018 or later (The grant amount has varied since it was first introduced in 2000. Contracts dated earlier than 1 July 2018 may still be eligible for a grant).
 
More information and eligibility criteria is available here.
 
Regional Home Building Boost Grant
The regional home building boost grant is a State government initiative to help home owners in regional Queensland into their new home sooner. It will give you $5,000 towards the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000.

More information and eligibility criteria is available here. 

Transfer Duty Concessions And Exemptions
You will not pay any transfer duty if you are eligible to claim a first home concession and the value of the home is less than $500,000.
 
More information and eligibility criteria is available here.
 
SOUTH AUSTRALIA

First Home Owner Grant
A first home owner grant applies to the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards anywhere in South Australia. FHOG ceased for established homes from 1 July 2014. The amount of FHOG payable is determined by the date the contract to purchase or build a home is entered into, or the date on which construction commenced for owner builders.

Eligibility criteria and other information can be found here.
 
TASMANIA

First Home Owner Grant
A $20 000 first home owner grant is available to eligible applicants who purchase or build a new home in Tasmania between 1 July 2016 and 30 June 2022 (inclusive).

More information and eligibility criteria are available here.

Duty Concession
If buying an existing home as a first home buyer you may be eligible for duty concessions. The concession provides a 50 per cent discount on property transfer duty for first home buyers of established homes, which have a dutiable value of $400 000 or less.
 
More information is available here.

VICTORIA

​First Home Owners Grant
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. The FHOG is $20,000 for new homes built in regional Victoria, for contracts signed from 1 July 2017 to 30 June 2021.

More information and eligibility criteria are available here.

FHOG For Regional Victoria
The regional First Home Owner Grant (FHOG) is a $20,000 payment for first-home buyers who sign a contract to buy or build their new home, where the contract price (or cost of construction for an owner builder) is $750,000 or less, in regional Victoria.

More information and eligibility criteria are available here.

First Home Buyer Duty Exemption, Concession or Reduction
When you buy your first home and the contract date is on or after 1 July 2017, you may be eligible for a duty exemption or concession. If your contract is dated before 1 July 2017, you may be eligible for a 50% duty reduction.

More information and eligibility criteria are available here.
 
WESTERN AUSTRALIA

First Home Owner Grant
The grant is $10,000 or the consideration paid to buy or build the house if less than that amount. If you are a first home owner, you may qualify for the grant if you are purchasing or building a new home. A home that has been substantially renovated may be considered a new home. The grant is not available for the purchase of an established home or for renovations to an existing home.

More information and eligibility criteria are available here.
 
Concessional Transfer Duty
If you receive the first home owners grant, or would be eligible except that you are purchasing an established home, you may be eligible for concessional transfer duty.

Eligibility criteria and other information can be found here.
 
 

As the eligibility criteria are extensive, with slight differentiations for each type of grant/subsidy, we would encourage you to discuss these with your broker and conveyancing solicitor. Many lenders want the applicant to complete the GRANT forms with their broker and submit them with their application, so we can assist with this.  It would be our pleasure to help you break through the paperwork overwhelm and get into that new home sooner! You can contact us here.

In response to the deepening financial crisis stemming from the Covid19 pandemic, the Australian Government has announced a time limited, tax-free grant program to help boost the residential construction market.
 
A $25,000 grant will be available to eligible owner-occupiers (including first home buyers) who wish to build a new home or substantially renovate an existing one.

Home Builder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

In order to determine your eligibility for the grant, please carefully review the eligibility criteria as follows;

Eligibility Criteria

• You are a person (not a company or trust)
• You are over 18 years of age
• You are an Australian citizen
• You are an owner-occupier or first home buyer
• You meet one of the following two income caps; $125,000 per annum for an individual applicant based on your 2018-19 tax return or later or $200,000 per annum for a couple based on both 2018-19 tax returns or later
• You enter into a building contract between 4 June 2020 and 31 December 2020 to either; build a new home as a principal place of residence, where the property value (house and land) does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property (house and land) does not exceed $1.5 million
• Construction must commence within three months of the contract date

 
How To Apply

• Homeowners will be able to apply for Home Builder through their state or territory
• Information on when and how to apply will become available through State or Territory revenue offices soon

 
More information
Home Builder Fact Sheet
Home Builder FAQs

If, like us, you are in New South Wales, you can also contact [email protected] or call 1300 130 624.
If you are in other states of Australia, please contact the Office of State Revenue (or relevant authority) in your state for more information.

Please note: At the time of publication of this article, the Office of State Revenue for each state has not yet generated application forms. If you are interested in applying, please get in touch with your broker and they will assist once the forms are released.

What’s worse than the media when it comes to gossiping about what the banks are doing?
 
The good old stand around ‘av a chat Aussie BBQ!
 
I tell you, some of the wildest rumours I hear about the Australian lending landscape are simply a case of Chinese whispers.
 
So here is the official low down about current lending conditions…


 
Are lenders still lending?
 
Yes, absolutely, and we are busier than ever.
 
What about Job-Keeper – aren’t people on this basically stuffed?
 
No, we have three lenders on panel accepting job-keeper at normal rates, so no issues there.
 
What about the self-employed – are they impacted?

Some lenders want the latest BAS, just to prove things are still going ahead, but plenty of them have no change to policy whatsoever. Some are asking for a lot more proof, others didn’t change.
 
What about people on wages who are NOT impacted – are they in trouble?
 
Lenders that used to accept payslips 60 days old have clawed back to wanting payslips under 30 or 14 days old, to check no change to their conditions, but that seems fair to us, nothing too crazy.
 
What about things like the interest rates – what’s happening?

Well, we are seeing the lowest rates on record, it’s a good time to check you aren’t paying too much. Fixed rates are far lower than variable if you wish to punt on the market, be aware of the risks however.
 
So who is it hardest for, tell me the goss?
 
Ok so there are some touchy spots for certain types of clients at certain lenders, and we know how to avoid those, or at least how to assist with them. With some lenders, it’s a matter of submitting a simple Covid-19 impact statement to show how Covid-19 has impacted on you as a business owner. With others there is NO change. Lastly, many lenders and clients have not issued changes to their current policy.  It’s really not much to write home about. If you hear something at a BBQ (now that you can have them) perhaps direct them to us, we know what to do.
 
Are Australian banks good? 
 
Australia has a AAA- credit rating with Standard & Poors, and AAA with Moody’s. That is stronger than the United States or China. In fact, it’s 11th in the world. I kid you not, all the red tape, (particularly that added since the Global Financial Crisis) really does put us in good stead. Click here for credit ratings of countries. We are now such a regulated industry that it feels almost straight jacket - like and this is why you almost need to provide your DNA sequence to get a loan approval! Second tier lenders are feeling the global credit pinch though, so we have seen some tightening in their rates and discretionary (negotiated) rates.

So… where to from here?
 
Really you have to focus on what you can control.

• ​Are your interest rates good?
• Are you covered if you fall ill or have an accident?
• Have you got insurance?
• Have you got a longer term financial plan?
• Are you minimising your taxes?
• Have you got the best team around you?

 There is so much you can do! This crisis really is the litmus test – are we REALLY doing all we can?
 
If you can accurately tell me what your interest rate is TODAY, what your income protection cover is PER MONTH, and when you are going to retire and with what income. Then YES you are on track!
 
So …. there you have it! Your straight shooting, jargon free, non-gossip-like analysis of current lending conditions.
 
If you would like some support getting your financial boxes ticked … we are here to help!

A question I am asked on a daily basis and a question which I feel you would ALL benefit from hearing the answer to. Especially in the current financial climate.

“Why Isn’t MY rate that low?”

The answer to this question is complex and multi-faceted. So, for ease of translation from ‘financial lingo’ to mainstream lingo, I have popped together this fictional conversation which is based on hundreds of similar conversations I’ve had to date.

Bad acting aside, I am fully across the situation so please don’t allow the light hearted conversational tone of this text to distract you from its true benefit…

So… “Why Isn’t MY rate that low?”
                                                                                        


Phil came to Wilson Financial with what we call an ‘old rate’.

“I was referred to you by my neighbour. We’re on a really good package but our rate is nothing like the rates I’m seeing online in the two’s, how come my rate is so high?”

To which I told Phil…

“It’s ‘bracket creep’ which is a combination of the bank’s discounts getting larger over time, and the variable rates dropping. When the banks don’t pass on the full drop your rate creeps up against discounts on offer. Sometimes banks even offer NEW clients better rates than they do for existing clients!”

Naturally, Phil was bit miffed.

“Well, that’s a bit ordinary, I’m a loyal client… how do I get a better rate?”

Now, this is where the sting stops stinging so much! Cue my response…

“We have heaps of options. Firstly, you can ring your lender and quote another lender’s rate to try and get them to reduce your current rate. Often, this will give you a little bit of headway to a better rate.”

Thinking of his precious dollars, Phil interrupted…

“I did that and they reduced it a bit, but not much, why can’t they just price match?!”

Yes Phil, I’m hearing you!
​
“It’s not always that simple, banks are really big institutions, they have price wars among themselves and sometimes they seek new business as a growth strategy… in those cases, if you’re not a new client, you do tend to miss out. The other issue is that not everyone can move banks due to equity restrictions or current income, so you can’t just assume banks will price match. Some lenders also look for different types of clients, be it equity rich clients, or investors, to balance their books or meet certain targets that the regulators set out, it’s really complex!”

“We need to learn to play the game Phil” I thought. (Ok, maybe that’s going a bit too far!)

By now Phil was wondering what to do.

“So, if they won’t price match, what else can I do to get a better rate?”

Ahhh price matching… if only it were as easy as whipping out a competitor’s brochure like we do at the supermarkets!

“You could consider a product switch with your current lender by moving to a different variable rate or even a fixed rate product – they are generally the same for new or existing clients! Or, if you really want to stay variable, and just get a better rate, you could consider moving your business to another bank? Banks are literally GIVING MONEY AWAY to move to them, it’s insane.”

Now Phil was starting to see some light…

“Yeah but won’t I have break costs to leave my bank?”

And the best bit…

“Maybe, but maybe not! In July 2010 the government passed new laws on exit fees. What this means is generally lenders can’t impose an early repayment charge if your loan is variable. If it’s fixed, you could cop a fee for sure, but because most people looking to refinance are on a variable rate you’ll likely just have a one off discharge fee of $250 - $350. You’d also then have land titles office fees of around $300 per property.

(Insert Phil’s thinking face here!)

“When you’ve got lenders willing to give you $4,000 to refinance, you’re really mad if you don’t consider shopping around to switch! We can do all that running around for you and then present you with three of the most suitable refinancing options that take into account your needs and preferences”.

Almost there…

“What??? Ok, there must be a catch! How much do YOU cost me?”

The icing on the cake…

“We are paid by the banks so the entire thing is fee free and obligation free! We negotiate pricing for you so you will possibly get a lower rate than what is advertised online too!

(If you're skeptical, you can read more about that here!)

Now, just like you, Phil liked the idea of saving money…
​
“That’s crazy! Can you sign me up? What do I need to do?”

                                                                                    
And there you have it… a sneak peek into the many HUNDREDS of these conversations I have each year!


Did you know, the average broker has 14 years’ experience? This is why over 60% of Australians are now turning to we brokers!

 It will be a good idea at this time to discuss these options with your accountants so that you can work out as individual businesses your needs and the borrowing levels available to you own business.

Below are links to the various major banks Covid 19 sites for both home loan and business loans:
 
https://www.anz.com.au/promo/covid-19/
https://www.commbank.com.au/latest/coronavirus/business-support.html?ei=cor_newloan#new
https://www.nab.com.au/personal/customer-support/covid19-help/business-support-loans
https://www.westpac.com.au/help/disaster-relief/coronavirus/

As always we remain here to support you so please don’t hesitate to call us to talk through what you need us to do to assist, remember those around you that are there to support your business, your accountant, solicitor, financial planners and brokers.

Best contacts for us are:
Liz Wilson – Broker and Business Owner – 0414798760
Chris Tracey – Commercial Finance – 0467999230
Geoff Lisle – Equipment Finance – 0488366131
George Root – Financial Planner – 0499992130

​Many clients are jumping straight on to home loan deferrals on offer of up to six months. Of course at this time, we are 100% on board with this, as an effective way to reduce overheads immediately. We do urge you to please temper these actions with the following thoughts in mind;

• If you wish to refinance or restructure your lending, yet are under deferment arrangements, it is highly unlikely you will be able to refinance. In fact, as a precautionary measure, I would suggest that many clients will not be able to refinance until potentially showing six months of normal conduct if you did enter in to deferment
• If you need deferment, take it, do not wait, this is in by no means a message NOT to apply, it is just we are hearing of some applying ‘just in case’ they are impacted, and we are ensuring we help our clients make transparent decisions for their future. As many choose to refinance to enable equity release for home projects or car upgrades, we want to ensure you do not put those dreams on hold.
• APRA has ruled that deferments will not show on your credit report as arrears, this is fantastic news for our clients, as means they can be safe in the knowledge that no credit damage will be done, please note you HAVE to be approved for deferment of your mortgage, this is not automatic, please contact via these online systems (NOTE – call centres are on hold for hours)

Hardship information for home loans please follow this link
Hardship information for equipment finance / cars please follow this link

​First and foremost the feedback from clients is that when lenders reach back out to them (and you will have to wait) the deferments are more being granted relatively easily. This is great news for home owners under duress. Some lenders it's as simple as a phone conversation. So don't put it off thinking it will be difficult, get ahead of your needs now.

In other news, the speed at which business’s, lenders and employees pivot will be critical to our success as a nation, as employers, and as employees. Some great examples of how business are adapting to no contact:

Lenders 

Lenders are adapting to approve video interviews for clients and guarantors so we can keep going
Valuers moving to virtual valuations – this is not out just yet but will be released soon
Banks triggering Kerbside valuations more freely (photos from the front of your street)

Business’s 

Here are some insights into how business’s I know of are adjusting;

• Independent bookshops accepting orders via phone, drive-by collection
• Gyms are now hiring out their equipment & Live streaming classes
• Virtual wine tasting! Local wineries are offering delivered wine tasting packages, and conducting virtual wine tasting classes
• Local markets – our markets are now online, offering delivery, savour the experience of still finding something new, home-made, and original and have it delivered to your door.

​Overseas innovators

For laughs – an Oregan strip club called the Lucky Devil Lounge launched a new food delivery service called Boober Eats! That’s a full redeployment of services!

Hedley & Bennet which make chef aprons started stitching fabric face masks instead.

Swimwear Startup, ‘Summersalt' switched its customer service to emotional support

If you are in services, don’t forget to connect via ZOOM/Facetime or other programs, people deal with people, not business’s.
​

Financial abuse is so common, yet people still generally only associate domestic abuse with black eyes and broken bones. To highlight the very real nature of this problem I wanted to share the story of a recent acquaintance who bravely agreed to let me share her story publicly, in order to inspire others to take action. Her identity is withheld in order to protect her safety.

So, let’s call her Sophie.

Sophie is a Mum with multiple children who fled an abusive marriage and took out a Domestic Violence Order (DVO) with the Police to protect herself and her children from her ex, their father. The order was granted for a period of five years and there is to be no contact from the father who abusively told Sophie;

“You’ll never be able to survive without me”.

The father, a drug addict, regularly stalked and threatened Sophie. He also ruined her credit rating by fraudulently taking out numerous loans in her name leaving his liabilities for her to pay off. The ex-couple had a home together and Sophie remained living in it after the break up to ensure stability for the children whilst she rode out financial separation from her ex. Sophie’s ex was on the brink of bankruptcy and as co-borrowers on their loan, their house was at risk.

In order to survive the period of transition from dual income to single income, Sophie called her lender and attempted to negotiate a better interest rate on their home loan. A discounted rate was offered… on one condition…

… that the lender obtain consent from her abusive and controlling ex. Yes, the one she had a no contact DVO against who told her “You’ll never be able to survive without me”.

To apply the discount they said there was no option but for them to make contact with him. This was because the loan contract had a ‘two to sign’ method of operation, which was put in place to protect Sophie in the first place. Eventually, despite her protest based on the active no contact DVO, the lender called the ex and attempted to seek his permission to reduce the rate. He refused to take the call and consequently their answer to Sophie was a NO. The rate could not be changed despite the renegotiation originally being successful.

As they had a dual-signatory set up on the loan account, the lender would not budge… even to reduce the interest rate. Something which would have had no bearing on the co-borrower. The irony of the situation was that Sophie had previously set up the dual signature in order to protect herself from further financial abuse and now, at this highly distressing time, that very act was being used to sustain her financial hardship. Her ex refused to sign the document… a very deliberate and cunning act which ultimately punished not only Sophie, but also their children.

This is where I stepped in.

I assisted Sophie in writing a formal complaint to her lender stating that they had failed to assist a customer experiencing financial abuse… despite having policies and procedures in place which should have guided their response. We referenced the Australian Banking Associates 2016 guidelines in dealing with domestic abuse, and I truly believe it is these guidelines that had the impact. The lender had categorically denied they could assist via multiple departments until this was referenced.

The complaint was finally assessed by the lender’s legal team and ultimately the discount was applied… without the consent of the abusive co-borrower. Likely, because common sense prevailed that the co-borrower would not be disadvantaged in any way, and it was preventing financial abuse to assist with the reduction.

Sophie’s rate ended up dropping by 1.47% and the variation fee of $130 was waived, possibly in a desperate attempt to complete the customer recovery process.

Regardless of the logic behind the final decision, what got her through was simply taking a stand against this abuse and holding the lender to account.

Sophie successfully took on the lender and came out on top… and so she should have given the 2016 Australian Banking Association’s commitment to enhance support for family and domestic violence survivors

Because of this rate reduction Sophie was able to stay in the family home and regain control of her finances whilst navigating the muddy waters of financial separation from an abuser.

She wanted her story shared with you all in the hope that her success will inspire others to take a stand against lending behaviours that perpetuate financial abuse.

What is financial abuse anyway?

Financial abuse is an umbrella term for a huge variety of controlling and manipulative behaviours relating to a person’s finances. The perpetrator is usually a current or former partner but can also be any another family member. Generally it is someone who;

• Unreasonably restricts the amount of money you have access to
• Withholds finances, in some cases even your own salary
• Takes out credit using your identity (credit cards, loans, fast finance etc)
• Coerces you into signing financial documents that are legally binding
• Forges your signature to secure any financial gain
• Forbids you to work and enjoy associated financial freedoms and independence
• Micromanages your funds with excessive questioning and interrogation
• Refuses to sign documents to release you of financial liability
• Deliberately sabotages your employment thus rendering you financially dependent

Of course this list is by no means exhaustive. Abusive partners are always finding new and far more creative ways to financially control and destroy their ex-partner.

The long term implications of financial abuse are vast. These may include;

• Asset repossession
• Severe financial hardship
• Bankruptcy
• A poor credit file
• Inability to secure any sort of new finance
• Inability to a secure a rental property
• Homelessness

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 – [email protected] or 0414 798 760
Chris - [email protected] or 0467 999 230
Colin - [email protected] 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 [email protected].
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 [email protected]
Visit: https://www.pepper.com.au/lending/help-centre/customer-service/financial-hardship-assistance

Liberty Financial 
Call 13 11 33
Email  [email protected]
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: [email protected]
 
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: [email protected]
 
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.

Slowly but surely we have seen every single last lender on our panel of twenty five lenders, restrict their lending to the non-resident market. Many have simply stopped lending to non-residents completely.

Historically we had lenders such as St George, with a dedicated non-resident lending cell, or Citibank who are a global lender who deal in foreign loans readily. 

The trigger for this avalanche of restrictions is a series of audits amongst lenders that has uncovered fraudulent Chinese income documents. ANZ banking group and Westpac Banking Corp found hundreds of home loans backed by fraudulent Chinese income documents. Allegedly these were manufactured with the help of dodgy mortgage brokers.

If I were to take the industry whispers at face value, this has been happening routinely. In May of this year Mortgage House has stated that it has declined foreign business, because according to their Chief Executive, Ken Sayer, “We did not want the grief. I knew this was coming. It was a no brainer,”
​
Our last remaining lender to accept non residents is Citibank. However, they will only allow non-resident applications from it’s 'gold' rated list of currencies. Further, the applicant must be in the country of that currency. Chinese Yuan is not on the list therefore residents of China need not apply.

We are no longer able to find a single lender on or off panel that will look at Chinese non-resident investors.