RichardGlynnB.Com

WhyuseaFinance/MortgageBroker?

• OnesubsidiaryINonesubsidiaryOUT

• NeedtoviewtheBrokerasabranchforallbanks

• LessexpensivecoststorunabrokerbusinesscomparedtoBranch

• Choosingclientsuitabilityfromhundreds ofproducts

• Thiscreatesmorecompetitivepricing/morechoice

• Servicability /CapacityToBorrow

• Thebankyouchoosecompensatesusfortheintroduction

• PrivateBanking– costly,astheyviewsuperiorserviceequalshigh interestratesandmorefees.

HomeLoans(Non–Super)

• OwnerOccupiedLoans(Feeswaivedinfirstyear.Includesoff-setaccount.min$250k)

• Majorbanksaverage(StGeorge,CBA,NAB,Westpac,ANZ)

$0

$100

$200

$300

$400

$500

Fees

Fees

ING

Majorbanks(average$350-$390p.a.)

4.13% 4.28%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

Variablerate

Variableinterestrate

ING

Majorbanks

InvestmentLoans

• Increaseinvariableratestoabove4.6%p.a(upto4.9%)forinvestmentborrowing

RecentAPRALegislationChangeshascauseddecreaseddemandformajorbanksappetiteforinvestmentsloans

ReducemaximumLVR• StGeorge80%• MacquarieBank80%• Nab90%includingMortgage

insurance• Liberty- Upto95%LVRplus

thefullLMPfeecapped(upto99%)

• Tightercreditguidelines

LoanStructures

Fixedloans• Securityofguaranteedrateforperiod1-5years(moreatsomebanks,generallyexpensive)

Variableloans• Flexibility

• 100%off-setaccount

SplitLoans• Howmuchfixed,Howmuchvariable?

• Financialadvise

Interestonly• TaxdeductableforInvestmentloans

• LessexpensivethanP&I

• Goodhardshipfallback

Principalandinterestpayment• Reductionofdebt

SMSFPropertyFinance

StGeorge• SMSFresidentialVariableInterestrate

5.94%p.a.

• MaxLVR70%• $12monthlyongoing

LibertyFinance• SMSFresidentialVariableInterestrate

5.49%p.a• MaxLVR80%• $10monthlyongoing

0

500

1000

1500

2000

2500

3000

SetupFeesforSMSFinclude:

$100settlement$205peradditionaltrustee$1500establishmentfee$615guarantor

$0

$500

$1,000

$1,500

SetupFeesforSMSFinclude:

$495Setupfee$495Processingfee

LibertyFinance

StGeorge