Loan Market Home Finance

Australia’s home finance sector is increasingly using social media to better connect with consumers, says leading mortgage broker Loan Market.

A survey of 152 of the company’s brokers found almost one in three are actively using social media tools such as Facebook, Twitter or the business site LinkedIn to promote their businesses.

Of those who had yet to utilise social media, 70 per cent said they were planning to in the near future.

Twelve per cent of those already twittering said it had boosted customer enquiries while the remaining 88 per cent said they expected social media to become highly influential in the financial services sector.

Loan Market Chief Operating Officer Dean Rushton said the emergence of social media was a fact of life for those working in the home finance industry.

“Many people in the financial services sector have been slow to catch on to the benefits of social media,” Mr Rushton said.

“But clearly it is the communications tool of the future with so much of the population spending time online, particularly on social networking sites such as Facebook.

“Those in the financial services sector who embrace this revolution will ensure they don’t get left behind.”

Mr Rushton said Loan Market as a company was now regularly utilising Twitter and Facebook to connect with clients, staff and the wider mortgage broking industry.

But he said while Loan Market recognised the enormous potential benefits of social media, it also warned its staff about some of the pitfalls as well.

“Electronic social mediums can provide many positive marketing and communications opportunities, but, as with all other media, there are attendant risks that warrant a disciplined corporate approach,” Mr Rushton said.

“It’s still early days but we’re constantly working with our team to train them on how to use social media responsibly and to be aware of the potential pitfalls of inappropriate messages or blogs.”

Accessing equity to buy your first Investment property is an exciting move into wealth creation. Whilst, many of us agree we should act sooner rather than later, our first purchase can be a daunting affair. The new loan amongst other considerations needs to be tax effective, and choosing the right loan using your broker can be the key to getting things correct from the very beginning.

Loan Market Brokers can be the “expert on your side”.

State Manager of Loan Market Mark De Martino says, “Many borrowers first question is, in who’s name do I place the property? It’s certainly not for us to decide, but an expert broker will talk this over with your Accountant to ensure everyone agrees on the best structure for your individual circumstances”.

“With a wide range of lender products to choose from and over 40 different lenders, our obligation free service could be the move that’s in your best interest”.

If you want to purchase a house in The Hills, be aware that prices are high.

Australian Property Monitors has released statistics revealing the median house price across Sydney is now $595,745.

Real estate agents in The Hills say it’s much more difficult to get a house below $600,000 in the area than it was 12 months ago, and the volume of demand versus stock can not be met.

Baulkham Hills mortgage broker Sonya Grosso urged potential home buyers to start planning early and look at all of their finance options if they were looking to purchase property in The Hills.

“Baulkham Hills, Kellyville, Castle Hill – they’re all desirable suburbs and it’s easy to get discouraged when competition from other buyers is tough. However a good mortgage broker can assist you with a savings strategy and will be able to explain how a home loan pre-approval can help, along with giving you all of your home loan options.”

Source: www.hillsnews.com.au, Loan Market

Property prices will be pushed even higher unless we build more houses, according to the Reserve Bank of Australia.

An undersupply of housing that isn’t meeting the growing demands of the population is to blame.

Dr Phillip Lowe, assistant governor, economics, at the RBA said it was vital Australia increases the supply of new housing.

“If this does not happen, further adjustment in housing prices and rents is likely to occur to balance supply and demand,” he told the Urban Development Institute of Australia National Congress on Wednesday.

Property prices rose by more than 10 per cent in 2009 and many economists believe prices will continue to climb this year, despite rising interest rates.

Source: ninemsn.com.au

Home owners on the Gold Coast are looking to upgrade their properties despite rising interest rates, according to leading mortgage broker Loan Market.

Loan Market Gold Coast broker Nathan Swain said since the start of the year he had received a significant increase in enquiries from people about upgrading.

“Around 90 per cent of my customers are looking to sell and then upgrade to a bigger property,” Mr Swain said.

“They’re looking to upgrade from their $300,000 to $500,000 properties up into the next price bracket.

“We have had a lot of enquiries about purchasing acreage properties and the Gold Coast hinterland is proving very popular with buyers at the moment.”

Mr Swain said the Reserve Bank of Australia (RBA) lifting the cash rate from 3.75 per cent 4.0 per cent last week was no surprise and most mortgage holders would have been prepared for the increase.

He said interest rates were still below traditional average levels and the previous three increases had not had an adverse impact on the residential property market.

“The reality is that rates are still reasonable and mortgage holders understand that the RBA only reduced them last year in response to the global financial crisis,” he said.

Mr Swain said property prices were still increasing despite the upward movement in interest rates.

“The conditions for homebuyers at the moment are still very favourable,” he said.

“But people wavering over whether to jump back into the market may miss the boat and cost themselves the chance to purchase their dream lifestyle property,”
 
Mr Swain said those concerned about interest rates should consult a mortgage broker for expert advice on their home loan package.

“A mortgage broker can assess your personal circumstances and give you the best advice on the range of lending options available,” he said.

Loan Market Gold Coast mortgage brokers:

• Andrew Kemeny
• David Richardson
• Doug Hall
• Ernest Di Martino
• Helen Read
• Jason Cuerel
• Jonathan Fulton
• Louise Thom
• Megan Cranitch
• Mike Ruiz
• Nathan Swain
• Scott Hallam
• Stephen Orme

Source: Loan Market

Vietnamese speakers have access to a professional home loan service, thanks to Mulgrave mortgage broker, Mai-Linh Tran.

Mai-Linh, a fluent speaker of Vietnamese, works for Loan Market Home Finance Brokersand provides a home loan service that covers home loans for first home buyers and owner occupiers, investment loans, loans for self-employed borrowers, and commercial and business loans.

“No matter what your requirements are, my aim is to ensure that your loan is the right one to meet your personal and financial goals,” said Mai-Linh.

“That can be a challenge to achieve on your own, particularly if English is not your native language,” she said.

“Helping you to understand the loans available, and the process you need to follow to successfully apply for the one that suits you, is my priority.”

Mai-Linh has over a decade of experience in the banking and finance industry to offer clients in Mulgrave and surrounds.

Loan Market Melbourne South mortgage brokers:

• Adam Nelson
• Alex Shumsky
• Alexander Heifetz
• Andy McGorlick
• Claude Rotstein
• Grant Rheuben
• Mai-Linh Tran
• Martin Fedmowski
• Rob Lee
• Sarah Thomson
• Simon Szmerling
• Trish Rotstein

Figures revealed by The Sunday Telegraph show homebuyers on an average income now have to work for 19,374 hours to purchase the average Australian house with an average mortgage.

Using the same equation, it took homebuyers only 7,500 hours to pay off the average mortgage in 1960.

According to CommSec chief economist Craig James, average wage earners half a century ago needed to work 25 hours to meet the monthly mortgage repayment of $25.00, based on an average five per cent interest rate and a $4,620 mortgage.

This is compared to the average wage earner today, who spends 70.7 hours at work to cover the monthly mortgage repayment for an average $283,000 loan at 6.64 per cent.

These statistics show increased costs of living and growing property prices are outstripping wages – working longer, harder and preparing earlier is essential for young Australians hoping to own a home.

Essendon mortgage broker John Vitone said that despite the end of the Federal Government’s First Home Owners Grant Boost, Australians wanting to get onto the property ladder still had plenty of options available.

“A good mortgage broker can assist you with planning a budget, and talk to you about family assistance and guarantor loans. Each lender has different criteria, just because you may not be qualified to borrow from one lender, it doesn’t mean you won’t be able to borrow from another,” he said.

Source: news.com.au, Loan Market

With his strong professional and academic background, Sydney mortgage broker Herman Wong knows how lenders operate, how they approve loans and how to get your loan application secured and settled as quickly and smoothly as possible. Even in the most complex situations, Herman can structure your loan and help you manage it on an ongoing basis.

He is also an expert at analysing investment and financial risks, particularly in property investment, in order to assist you build and grow your property investment portfolio and achieve your financial goals.

My wife and I have successfully completed somewhat difficult housing finance deals with Herman. As a practising financier myself in the non-housing area I have always appreciated his very professional and extremely attentive attitude to customer relationships and delivery of a successful outcomes to best suit our circumstances.  This is a sometimes rare quality these days and Herman deserves the many accolades which he receives from all of his clients. I have no hesitation in recommending his services.
Douglas R Blunt, St Ives, NSW

Riskmark’s December Quarter National Accounts report has revealed that the average Australian home price is 4.6 times the average person’s disposable income.

This is considerably higher than during the GFC, where this ratio fell to 3.9; a result of housing prices declining while household incomes remained surprisingly stable.

Rismark’s managing director Christopher Joye said Australian’s mortgage default rate is comparatively good.

“Recent analysis conducted by the Reserve Bank of Australia (RBA) has shown that despite Australia’s internationally high mortgage rates, debt-servicing is strong: Australia’s mortgage default rate is nearly one-tenth and one-quarter of US and UK levels, respectively,” Mr Joye said.

Mortgage holders who are concerned about their mortgage repayments should contact their mortgage broker.

Options such as refinancing and debt consolidation may be worth considering when interest rates rise or your personal circumstances change.

Source: theadvisor.com.au

There are a range of investment loans and loan features available – ranging from simple home loans to more complex loans that are allow you to manage tax, gearing and repayments. Go to the residential investment loans page for more information on Lines of credit and the various interest rate options available.

Always seek advice from your accountant on investment and taxation rules for your particular situation. While you may read or hear different information, talking to your accountant and or financial planner will give you the appropriate analysis of your specific financial, investment and taxation situation. This is particularly important when you are considering investment relating to your superannuation.

Property investment – golden rules

Rental returns aren’t the only opportunity to maximise property investments. There are a few golden rules to getting the most out of the borrowing side of your property investments.

1. Make sure you review your property investment loans regularly to ensure you are on the best deal available. Over the course of a long-term property investment plan, the type of loans available and your situation may change dramatically.
2. Be disciplined about the kinds of add-ons you pay for with your investment loan. Only get features and benefits you will really use. They all cost you money.
3. Do the math and change loans if there is a long term benefit. Even though the costs can add up to anywhere from hundreds to thousands of dollars, changing to a more sensible structure or lower interest rate now may actually save you quite a bit more over a long investment period. With the help of a good mortgage broker, you won’t even need to do most of the work.

The extra money you save or earn because of the change can help you to expand your property portfolio, undertake redevelopment projects, take advantage of the tax benefits of paying your interest in advance, finance renovations on your home, or even top up your superannuation.