At Coeus Advisors we have assisted a number of clients with obtaining or re-financing their loans through Nexus Partners who have access to a wide range of lenders.
We have been able to continually assist clients by introducing them to lenders who can provide loans that are competitively priced and appropriate for their needs.
During the past twelve months and post the royal commission in the banking sector we have seen a heightened focus by financial institutions in ensuring that loans being written are appropriate and can be adequately funded by the customer. In simple terms this means there is increased compliance for consumers to demonstrate they can meet the criteria to service the loan they are applying for.
Some of the appropriate steps that need to be taken are as follows:
- Ensure all your tax returns are up to date and that you have no outstanding tax debts;
- Prepare an accurate budget of your normal month expenses (note most banks now ask for credit card and bank statements to verify your budget is correct);
- Be aware and have cash available to pay mandated costs (stamp duty, mortgage duty, legal and application fees);
- Stress test your loan and allow for a 2% increase in interest rates (banks generally do this as part of assessing your serviceability requirements); and
- If you have recently changed jobs or businesses be prepared for extra questions.
Whilst all of this may sound daunting there is still significant competition for finance within the sector, indicative rates for lending are as follows:
- Home loans where loan to value ratio is less than 80% range from 3.5% to 3.8%
- Investment loans (principal and interest) supported by residential property where loan to value ratio is less than 80% range from 4.1% to 4.6%
- Investment loans (interest only) supported by residential property where loan to value ratio is less than 80% range from 4.3% to 4.8%
If you need assistance in this area, please contact us.