What we are seeing:

• Very strong enquiry continues for first home buyers under the new 5% deposit scheme, irrespective of the recent interest rate rise.

• More banks offering HECS/HELP exemptions/adaptability for borrowing

• Self Employed borrowers . As we know, many self employed clients maintain a low taxable income. This can represent an issue when it comes to borrowing capacity. By reviewing the tax return for one off expenses such as major repairs we can present a case to the lender and often increase the borrowing capacity.

What we are advising our clients:

• Are you prepared for a 2nd or 3rd interest rate rise?

• Refinance needed? Take Action NOW - whilst your borrowing capacity is higher. As a simple example, for a couple earning $120k each, 2 dependents, with Commbank, if interest rates go up 0.5% from here , borrowing capacity goes from $1.2 to $1.1m. a significant difference.

• Reviewing client offset account balances. Is your current loan structure still optimal?

Some recent case studies:

• Scott - Mining worker, PAYG 350k. Fully paid off home worth $2m. Worked with accountant to purchase an investment property in Brisbane, negatively geared (accountant had advised client to find deductions to reduce taxable income). Educated the client with financial modelling, . and sourced the property using data driven buyers agency.

• Patrick, Self employed - primary producer wanting to borrow to build an additional farm building. Not enough serviceability with current lender. Sourced a lender who will consider only 1 year of financials and got this client across the line by refinancing old loan and cash out with new loan (locked in 2 years fixed at a discount to variable). Credit case exception made with what the financial picture looks like going forward with additional revenue.

Do you have any clients who could benefit from this advice? Please get in touch for a free chat.

Look forward to your email at [email protected] or call me 0403397060

Get Your Financial Plan in Place

We’re in the Snowy Mountains, Canberra and Sydney this Month

Want to discuss your client’s financial needs? Lets catch up in person or via Zoom

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team