Yesterday the Reserve Bank announced an increase in the official cash rate of 0.25% which will be passed on to all borrowers.  

Furthermore, the continued increase in the cost of funding due to volatility on global credit markets has made it necessary for some lenders to pass on up to an additional 1% on all new and existing loans.  This combined increase will see some of your clients in Mortgage Stress.

Clients of particular concern are those in the following scenarios:

• LoDoc Facilities
• Commercial Loans
• Short term debt

We can assist with these situations.

• Your clients may have used a LoDoc facility as it was easier and hadn't completed their tax returns. If their records are now up to date, they may be able to qualify for a standard facility with a more comfortable rate.
• Clients with Commercial Loans or Bills will be well aware of the rising cost of these facilities (90 Day 7.42% generally plus 2%), they may be able to take advantage of fixed rate (circa 8.7%). To see our January Newsletter from last week which discussed Business Loans at Home Loan Rates click here.
• Debt consolidation of short term debt (Credit Cards, Personal and Car Loans) to longer term debt will may see a vast reduction in the overall monthly repayments.

We can help.

We have a lender who is willing to lend to SMSFs. This is a great opportunity to leverage a client's superannuation fund into commercial or residential property.

For a SMSF Mortgage Product Guide or enquiries speak to Vic Bulfone on 03 9209 9777.

Yours Sincerely

Brent Jones

General Manager