A Note From Martin Walmsley, Principal Broker
I hope everyone is faring well during the continued lockdowns across many parts of Australia. As restrictions start to ease in NSW, we will continue to offer our full range of services via video and phone meetings, as well as offering COVID-safe face-to-face meetings when restrictions permit.
During September, I was thrilled to be a finalist in the Rising Star category of the NSW Better Business Awards. The awards acknowledge finance brokers who are leading the state across various metrics including customer service, innovation, and dedication to their clients’ best interests. It was an absolute honour to be recognised among other leaders in my field, and I would like to take this opportunity thank those clients whose wonderful feedback and reviews saw me named as a finalist.
September through to December is traditionally a very busy time in the finance broking industry as people look to refinance existing loans or move into new properties before Christmas. Due to increased lender turnaround times during holiday periods, if you are considering a new purchase or refinance, now is the time to chat with me to ensure everything is in place so the process runs smoothly and efficiently as we head towards the end of the year. As always, I am available on 0434 103 326 or by email at marty@nbshomeloans.com.au if I can be of any assistance.
Read below for our October Interest Rate Update
Interest Rate Update Snapshot For Australia As At 13 October 2021, From NBS Home Loans
Owner Occupied Loans from:
Fixed: 1.79% (comparison 2.62%)
Variable: 1.98% (comparison 2.15%)
Residential Investment Loans from:
Fixed: 2.14% (comparison 2.77%)
Variable: 2.24% (comparison 2.31%)
There are also several lenders offering cashback on eligible refinances, with offers of up to $3000 cashback currently available. (T&Cs, eligibility criteria and normal lender assessments apply.)
Please contact us on 0434 103 326 if you’d like to chat further about options.
Thanks For Recommending NBS Home Loans!
As a small business, we rely largely on word of mouth referrals. In fact, around 70% of the new clients we see each year were referred to NBS Home Loans by our existing clients.
If you have an existing loan with NBS Home Loans and you refer a new friend or family member to us, and your friend or family member successfully settles a loan of $250,000 or more with us by 31 January 2022, we’ll send you a $500 gift card to say thanks for the referral. (Additional conditions apply, including a limit of one gift card per referrer per new client, so please contact us for more info.)
How Will Changes To Lender Assessment Rates Impact How Much You Can Borrow?
You may have seen recent media coverage about changes to the way lenders will assess how much money people can afford to borrow, and you may also be wondering how this may impact your ability to take out a new loan or refinance in future.
In early October, the Australian Prudential Regulation Authority (APRA) informed Australian Deposit-taking Institutions (ADIs) that it expects them to assess borrowers’ capacity to repay loans at a rate of at least 3% more than their loan product rate. This move was prompted by a number of factors including rising house prices, record low interest rates and growing household debt. With interest rates expected to eventually increase as the economy bounces back, APRA hopes this move will increase future financial stability and ensure borrowers can afford debt repayments as rates increase.
While this is a significant change in the way borrowing capacity will be assessed, it’s important to note that lenders already factor in an average rate buffer of about 2.5%, and some banks had already increased this buffer in anticipation of APRA’s announcement. Early indications are that this move will reduce average borrowing capacity by about 5%- 8% once it takes effect in late October.
The APRA News Update can be found here.
Buy Now Pay Later Services And Your Loan Application
In the lead up to Christmas, we tend to see a surge in the use of Buy Now Pay Later (BNPL) services such as Afterpay, Zip and Klarna. These services allow you to purchase an item or service upfront, and then pay for it in installments afterwards. These repayments are usually interest-free, but there are generally fees associated with using these services.
It’s important to be aware that these services can have an impact when you apply for a loan. If you have several BNPL facilities running at once, it can be easy to miss a repayment or to become unable to meet your repayments; Any defaults may be listed on your credit report and this can reduce your overall creditworthiness in the eyes of lenders. It’s also a common misconception that lenders won’t be aware that you have a BNPL facility unless you default on repayments, as most facilities do not appear on your credit report.
Usually when applying for a loan, you are required to submit bank statements showing your financial conduct over 3 – 6 months, and repayments to a BNPL provider will be evident if you have one or more of these services. Ongoing payments generally need to be factored into your expenses which can, in some cases, reduce your borrowing capacity.
While in most cases a BNPL facility in good order won’t knock you out of the running for a home loan, it’s a good idea to speak to us if you are considering a finance application in the near future so we can make sure you’re in the best possible position before applying.
Spotlight on Local Business: Francis Legal
Each quarter, NBS Home Loans is proud to shine a spotlight on another great local business owned by one of our clients. In this newsletter, we’d like to introduce Franic Legal.
Located in Hornsby on Sydney’s Upper North Shore, Francis Legal is characterised by experience, diligence and affability, and has long been held in high repute amongst locals and Sydneysiders. Lawyers Joseph Francis and his son and colleague, Andrew Francis strive to achieve the best results for their clients at reasonable prices.
Francis Legal’s areas of practice include:
- Family law and de facto relationships
- Wills, probate, estate administrations, family provision claims, power of attorney and guardianship
- Conveyancing and property law
- Business and commercial law
- Civil law, litigation and debt recovery
- Criminal law and traffic matters
- Notary public services
For more information, visit francislegal.com.au or phone 02 9987 1188 to arrange a consultation.
Property Spotlight: 12/19 The Crescent, Berala, NSW, 2141
If you are in the market for a new home or investment property, this 2 bedroom ge being sold by one of our wonderful clients, mightly be exactly what you are looking for!
Situated only 450m away from Berala station, this unit is one not to miss.
On offer are two generous sized bedrooms, neat and tidy kitchen, large living and dining that flows to a great balcony that soaks up plenty of sunlight. Investors take note that the property is currently rented and is an ideal investment for anyone looking to jump into the property market.
Whether you are a home buyer or a savvy investor looking to add to your portfolio, this property is sure to impress. For more information about the property, visit www.realestate.com.au/property-unit-nsw-berala-137308234.
Investors should also consider taking advantage of our discounted property management rates available exclusively to NBS Home Loan clients:
4% + GST for NBS Home Loans clients for most property types
3% + GST for NBS Home Loans clients for granny flat management
5% + GST for non-NBS Home Loans clients
WHAT OUR CLIENTS ARE SAYING
“Marty went beyong his role in helping us to get our Mortgage across the line during COVID in August 2020. He was 100% accurate with his assessment of the borrowing power and gave us the best options to suit our needs. If you wnt an honest Broker who cares for his customers, dont go looking anywhere else.“
Financial Hardship Resources And Contacts
We understand this is a difficult time for many of our clients, friends and family. We have compiled the below list of financial hardship contacts and resources for anyone who may find them helpful.
Lenders’ Hardship Contacts
For additional information and to be directed to the relevant section of each lender’s website, please visit this page on our website: https://www.nbshomeloans.com.au/financial-resources-hardship-contacts-covid-19-australia
ANZ: 1800 351 548
Bank of China: 1800 095566
Bank of Queensland: 1800 079 866 or CustomerAssistanceTeam@boq.com.au
Bankwest: 1300 787 144
Bluestone: 13 25 83
CBA: 1300 720 814 or customerassist@cba.com.au
Connective HL: 1300 543 558
Connective Solutions: 13 73 77
ING: 1300 349 166
Latrobe: 13 80 10 or hardshipassist@latrobefinancial.com.au
Macquarie: 1300 363 330
ME Bank: 13 15 63
MyState: 138 001
NAB: 1800 701 599
Pepper: 1800 356 383
St George: 1300 303 110
Suncorp: 1800 225 223
Virgin Money: 1800 701 997
Westpac: 1800 067 497
Additional Support Resources
Lifeline: 13 11 14
Suicide Call Back Service: 1300 659 467
Beyond Blue: 1300 224 636
Mental Health Line: 1800 011 511
Kids Helpline: 1800 551 800
MensLine Australia: 1300 789 978
GriefLine: 1300 845 745