A lower interest rate can potentially reduce the amount you pay on your mortgage repayments and may results in getting your loan paid off faster. A good credit standing doesn’t usually guarantee you of a low interest rate as you need to shop around to find competitive rates. Consulting a finance broker to help you with this is always a good way to go. Banks and lenders have their varying measures in assessing the risk a borrower poses. Knowing what you can do to qualify for a low interest rate is a helpful way to save yourself from potentially paying too much.

Here are some tips to help you land a low interest rate for your home loan:

Check your credit report.

This particular tip is something all lenders will look at. Ideally, your credit report should be free of bankruptcy and/or other serious delinquencies. Dispute any information on your credit report that you deem inaccurate. To request a copy of your credit report, visit Equifax website (formerly Veda). However, you have also to take note that multiple and consecutive inquiries on your credit report may hurt your home loan application. If you have too many inquiries on your credit report, a lender may think that you are having trouble obtaining credit making you a high lending risk. In that case, the lender could charge you a higher interest rate.

Research current home loan interest rates.

You know what they say, knowledge is power. The more you know, the more ways you can think in landing that low interest rate. Check the interest rates offered by various lenders and non-lenders.

This will give you an idea on whether you’re paying too much in terms of interest, and can give you a good bit of bargaining power if you show that you know what you’re doing. Make sure you look for loan rates that are at or below the market average. On the other hand, if you wish to avoid this hassle, seeking the help of a finance broker can give you the same advantage.

Ask and you shall receive.

When all else fails, consult a finance professional. But while you’re at it, contact your current lender. There are lenders who tend to offer their new customers discounted rates and special deals that existing customers don’t get. The most effective approach you can do is to prove your loyalty to them. Maximise the fact that you’re paying your repayments on time. You have nothing to lose and much to gain by enquiring about a lower interest rate. Call your lender stating that you have found a better offer from a competitor (even if you haven’t). Negotiating for an interest rate that’s just 0.25% lower than your existing rate can potentially save you a significant amount of money over the duration of the loan.

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Get a Low Interest Rate appeared first on Soul Finance Group.

Here’s a life-changing mindset for your buying habits

“We don’t buy things with money, we buy them with hours from our life.” This is a quote from minimalist blogger Joshua Becker from Becoming Minimalist. When we begin to think of the things we buy in exchange of our time rather than our money, we start to realise the weight of our purchases and understand the true cost of the things we think we want and need.

Our ‘time’ as currency

According to the ABS average weekly earnings report, the average weekly ordinary time earnings for full-time adults in Australia in May 2019 was $1634. For discussion purposes, let’s round it off to $1600 for a 40-hour workweek. Following the said life-changing mindset, a coffee ($4.00) would cost you 10 minutes of your work. A summer dress would cost you 2 hours of your work and a Louis Vuitton handbag would cost you 2-weeks worth of your work.

Of course it will always be up to you how ever you wish to spend your hard-earned money but it can be a helpful guide in being mindful how much of the hours in our lives go into the stuff we buy.

Calculating the ‘opportunity cost’

Opportunity cost refers to what you could have done with the money had you not spent it to buy new stuff. If you have the cash, perhaps you can consider making extra repayments for your mortgage. You can also opt to save up for a property you can invest on.

The takeaway

Once we start to apply this mindset, we realise how we can maximise our money—hours we spent working—and spend it into something more meaningful such as building your dream business, enrolling for a course, or even saving for your home deposit.

I hope you find this principle interesting and let me know how it resonated with you!

References:

https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/6302.0main+features1May%202019

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Here’s A Life-Changing Mindset for Your Buying Habits appeared first on Soul Finance Group.

Motivate yourself with a 2020 financial detox

A detox usually means removing all the toxins from your body. It also refers to getting rid of something harmful from your life. In this case, financial detox can mean ‘cleansing’ your finances.

If you’re thinking your finances are looking a little burdened, consider kickstarting the new year with a financial detox. If you’re not financially well, you may be prone to anxiety, worry, and fear. While going on a financial detox might not sort your financial concerns overnight, it can be the start of a life-changing habit.

Here are some ways you can try:

Review your spending

Take a look at your spending habits to identify where you spend the most. While the huge purchases are definitely hurting your pocket, the small but cumulative purchases are usually the main culprits. So as part of your financial detox, learn to be mindful about where your money is going—up to the last cent.

Put together a weekly/monthly budget

Set an amount that you will only spend on a certain week or month. That way, you’ll have a much a clearer idea of where your finances are going each month.

Set up an emergency fund

You might have been putting it off in the last decade, but this 2020, start allotting an amount for your emergency fund. Unforeseen circumstances might hurt you financially so it’s better to have a rainy day budget. You can start by setting aside a few dollars from your salary every fortnight and eventually increase it as you go along.

Explore new possibilities

Now this may sound vague but this can mean a lot of things. It’s the start of a new decade so there are limitless possibilities in achieving your financial goals in the next 10 years or even less! The trick is to find valuable resources that could help you in your financial journey. It can be tools you can find online or professional finance brokers you can connect with.

Financial detox doesn’t require you to take an extreme lifestyle change for the rest of your life. Instead, it encourages you to practice healthy financial habits using the available resources around you.

Here’s to healthier financial habits and achieving financial goals this 2020!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Motivate Yourself with a 2020 Financial Detox appeared first on Soul Finance Group.

Ultimate Christmas Shopping Hacks

You were told to save as early as January to have something to spend for Christmas shopping in December but who does that anyway? So you’re now channeling your 2018 self, doing last-minute Christmas shopping. If you’re one of the people who is strict on your budget, this guide can help you maximise your spendings.

Take advantage of deals and discounts

Look for all opportunities to save every cent. Find the tab on the retailer’s website where they put all their offers and sale items. Who know, you might score a huge deal! Be sure to check their social media accounts for any discount code they are currently promoting.

Check clearance outlets

Look for any clearance outlets near you or in your community and see if they have a sale. Most stores are also running last-minute sale blowout to get rid of their old stocks and make room for new ones in the coming new year.

Visit price comparison sites

If you are looking for a particular item online, make sure you snatch the best deal. It literally pays to check price comparison sites such as Shopbot or GetPrice to find out if you are getting the most out of your money.

DIY your cards and wrapping

Instead of spending a dollar or two for a gift box or a gift bag, minimise your spending by purchasing a simple wrapper and a ribbon and wrap all the presents yourself. Add a personal touch by writing a simple note on a gift card that can also be DIY!

For next year’s Christmas, consider allotting a separate savings account for your Christmas shopping budget. Try saving a minimal amount weekly or monthly in a year’s time.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post 2019 Ultimate Christmas Shopping Hacks appeared first on Soul Finance Group.

Top 5 places to visit in December for Australians

After a year-worth of hardwork, it is time to treat yourself to that long-overdue vacation. You might consider spending the holiday season with your family in another place, so here’s a rundown of the top 5 places you might want to check out.

Sydney

Okay. The city has probably the same weather as Perth’s but if you’re on a budget and just looking to travel within Australia, Sydney is a perfect choice. If you have kids, they will surely enjoy the Lights of Christmas light projections and singing choirs at St. Mary’s Cathedral. The Rocks Christmas Village also offers wonderful lights, decorations, and seasonal shopping. If you decide to extend your stay until New Year, be on the lookout for the fireworks display in and around the Sydney Harbour.

Phuket

If you want to celebrate a tropical Christmas, the magnificent beaches of Phuket are waiting for you. It’s an appealing destination, especially for people who want to relax and get away from the Christmas rush.

New York City

It’s always worth-visiting New York at any time of the year but December is extra special because of the skating rink and Christmas tree at the Rockefeller Center. There’s also that famous ball drop on New Year’s eve at Times Square.

Poland

Twinkling Christmas trees surrounding the city and lavish feasts on Christmas Eve called Wigilia, Christmas in Poland is definitely one for the books. The city of Krakow looks its best when its draped in Christmas festivities and cheer, sprinkled with a fresh blanket of snow to add a fairytale touch!

Banff, Canada

If you want to experience the winter season like no other, Banff is the place where you should be. You can enjoy all the fun activities like skiing, dog sledding, and ice skating.

Plan your getaway as early as now to make the most out of your travel budget. Short of funds? Ask me today on how I can help you secure the additional finance for your dream Christmas family (or even solo!) vacation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Top 5 Places to Visit in December for Australians appeared first on Soul Finance Group.

What do negative interest rates mean

When you apply for a home loan, your interest rate will dictate how much will you pay your lender. On the other hand, if you have money in your savings account, the interest rate will determine how much will your money earns. Negative interest rates are usually introduced when a country’s economy is experiencing low or negative growth, unemployment is too high, wages aren’t going up, people aren’t spending money and prices aren’t increasing. Then, the central bank will take steps in encouraging consumers to borrow and spend more.

Negative Interest Rates

Interest rates are usually positive, meaning people earn interest on their savings and have to pay it when they borrow. But with negative interest rates (financial institutions apply to people borrowing money or putting it in savings fall below zero), instead of gaining interest on amounts left in your bank account, you actually lose money. And when you borrow money from a lender, instead of paying the interest rate, you will actually get paid.

Who will benefit and who will suffer

The primary ‘winners’ for this potential negative cash rate are Australians looking at securing a loan. Lower interest rates mean less interest to pay back on money borrowed from lenders. Negative interest rates could mean a bank paying you to borrow money from it. Tourists in Australia can also benefit from this since lower interest rates can weaken the currency. Buying Aussie dollars could become cheaper for them.

Potential ‘losers,’ on the other hand are savers and retirees. A negative interest rate means losing money if you have funds in a savings account. Pensioners can also be negatively affected by negative rates especially those who depend on income from savings accounts or term deposits.

When can I get the money?

Before you’ll see any money earned on your home loan, the RBA would first need to decree the negative interest rate policy. Once that happens, commercial banks would then need to update their policies and then apply it to existing customers.

Source: Lifehacker article

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What Do Negative Interest Rates Mean appeared first on Soul Finance Group.

How to maximise falling mortgage rates

The Reserve Bank of Australia (RBA) had a back-to-back interest rate cut this year, setting the cash rate at a record low of 1.00%. Lenders had started applying the cut to their variable home loans. This is good news for Aussies with mortgages because this means borrowing large sums of money becomes cheaper.

If you are having hard time keeping up with the falling mortgage rates and thinking of the best step to make the most out of these cuts, here are some tips:

Refinance to a lower interest rate

It’s always worth checking and comparing the deals available in the market. Hundreds of products are being offered by many lenders out there. Shop around and see if your bank can match the deal you have found. As a mortgage broker, I can help you find the most suitable deal for your current situation and help you switch to it.

Make extra repayments

Lower rate means lower repayments. The money you can save from it can be spent on electricity bills or groceries. However, if you wish to get out of debt faster and save yourself from more interest in the long run, don’t change a thing. Just keep paying the same monthly repayment and this will now count as extra repayments.

Save for the future

While current rates keep getting low, there is no assurance that there won’t be any rise in the future. Keep the money and create a buffer savings when your repayments increased.

The takeaway

To fully take advantage of the falling mortgage rates, you need to know what your home loan interest rate is. You can always pick up the phone and ask your lender or mortgage broker about it. Take advantage of the hundreds of deals in the market that you can compare and see what will fit your current situation.

If you are a busy person and don’t have much time to do all of these, feel free to give me a call on 0408 081 082. I can conduct a complimentary home loan health check and advise you on the steps we can take to fully maximise the current interest rates that will work for your financial situation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Maximise Falling Mortgage Rates appeared first on Soul Finance Group.

Our favourite items from the 2020 IKEA Catalogue

One of the best things that happened this week is the release of the 2020 IKEA Catalogue. For those of you who have been looking to renovate or just need some inspiration to start redecorating their homes, this is perfect for you. This year’s theme is “Save our Sleep” which is totally relatable for so many busy Aussies!

In this blog, we’ve rounded up a few of our faves.

HILLEBORG Blackout Curtains

If you want a continuous good night sleep without the disturbance of the outside light, this pair of curtains is perfect for your bedroom.

Image: IKEA ($49, 1 pair)

BERGPALM Duvet Cover Set

According to the IKEA website, this cover is made up of thicker yarn “to create a handcrafted, vintage expression that feels casual and relaxed, inviting you to unwind.”

Image: IKEA ($39.99)

KNIXHULT Floor lamp

This modern twist to your good ol’ lamp aims to produce a minimal environmental footprint.

Image: IKEA ($59)

EIDSÅ Mirror

This classic mirror design is perfect for both bedroom or bathroom wall. You can even install the LEDSJÖ LED wall lamp on both sides for a more elegant look.

Image: IKEA

BESTÅ Wall mounted cabinet

If you’re looking for a clean and edgy, elegant vibe for your bedroom, this wall mounted cabinet fits perfectly.

Image: IKEA ($495)

SKOGSLÖK Ergonomic Pillow

Whatever your sleeping position is, this pillow can give you a comfortable, relaxing support while you’re sleeping.

Image: IKEA ($19.99)

What are your favourites?

So many new things you can add to your home and give it a new look—perfect for the Spring season! Have you had the chance to browse the catalogues? If you don’t have a hard copy, you can download it here.

Hope you find inspiration with this new collection and if you’re worried about finance, happy to discuss your options for you!

Let’s get that dream renovation starting!

References:

https://www.ikea.com/ms/en_AU/catalogue/IKEA.html

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Our Favourite Items From the IKEA 2020 Catalogue appeared first on Soul Finance Group.

How will APRA’s changes improve your home loan capacity?

Banks has reduced how much they “stress test” to see whether their customers can afford, at least, a 7% interest rate on their residential home loan repayments. This means IMPROVED BORROWING CAPACITY!

But what is Mortgage serviceability?

Serviceability is your ability to meet, or service, your home loan repayments. Banks calculate your serviceability to ensure you can afford to take on a mortgage, and to determine how big a home loan you can manage. All lenders differ in how they assess serviceability and the standards they apply in determining creditworthiness and borrowing power.

Before APRA’s changes

How were home loan applications assessed prior to the changes? If you’re applying for a home loan with an interest rate of 4.25%, the lender doesn’t calculate the repayments using this rate. They use a much higher rate to create buffer in order to ensure that you can still make repayments if interest rates rise.

Under the previous APRA guidance, lenders had to assess whether a borrower could afford repayments using a minimum interest rate of at least 7%, or 2% above the borrower’s rate, which ever was higher.

What can these changes mean for you

The changes will likely increase your borrowing potential and provide access to home loans to more people.

Industry watcher Sally Tindal said this would mean that a family of four with a household income of around $110,000 would be able to borrow up to $77,000 more. Australians with an average full-time wage of about $83,400 would witness their borrowing capacity increase by as much as $66,000.*

The takeaway

With the recent rate cuts plus mortgage deals with a 3 in front, now is a great time to purchase your next property. If you want to find out which lender has implement these changes or you need more details as how these changes can benefit you, book a chat with me and I am more than happy to help you.

Give me a ring on 0408 081 082.

*https://www.yourmortgage.com.au/mortgage-news/apras-move-to-boost-aussies-borrowing-power/264206/

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How will APRA’s changes improve your home loan capacity? appeared first on Soul Finance Group.

No asset? No worries; Small business loan in Perth

Big banks and major lenders often require that you put down property as security for repayments. However, not every business has the capacity to do so. Fortunately, there are options which don’t ask you put up your assets as security. Oftentimes, these lenders based their approval on the strength of your business, its structure, your bank statements, and credit history among others.

Loans that support small business

Why do you need funds? How are you planning to utilise this to improve your business?

• • Purchase a new equipment or software
  • Buy a new vehicle equipment
  • Business renovations
  • Improve infrastructure
  • Purchasing new capital

What are the features?

Prospa, a small business lending specialist, helps small business owners finance their needs. You can borrow from $5,000 up to $300,000 with repayments that work with your cash flow. You have the option to pay out the loan in 3 months up to 24 months, plus funding possible in 24 hours!*

No asset? No worries

Small business loans with Prospa doesn’t require you to put up a security with loan amount of up to $100,000. This is suitable for business owners who do not wish or don’t have the capacity to attach an asset as a guarantee.

How to apply

Submit your details and a Soul Finance Group finance broker will call you for a quick chat to see if you have any questions, Then, if you’re comfortable to proceed, you will be guided through the application. You will be asked to provide the following:

• • Driver Licence
  • Business ABN
  • 6 months business bank statements

Are you eligible?

If your business has a turnover of more than $6,000 per month and can demonstrate 6 months of trading for a new business, or 3 months if you’ve purchased an existing business, we most certainly can help.

The takeaway

Securing a finance need not be a tedious process. You already have your attention and time towards building your business and we wish to take the stress away by helping you fund your business needs. Don’t worry about putting up a security as we have access to a small business lending specialist that can help you. The process is quick as you could have a decision in as little as an hour, with funding possible in 24 hours.

You can visit business http://businessloan.soulfinancegroup.com.au for more details.

If you wish to know more details, give me a ring on 0408 081 082.

*Fees, terms and conditions apply.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post No Assets? No Worries; Small Business Loan in Perth appeared first on Soul Finance Group.