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.

According to RateCity’s Australian Bureau of Statistics data analysis, Australians have borrowed $46.6 billion in personal loans over the past year but experts claim many are clueless of how applications are assessed and how this might affect their credit scores.

Lenders assess the loan applicant before giving an approval and offering an interest rate. They utilise a model called “risk-based pricing” where their lowest rates are only available to customers with excellent credit scores. It’s a common mistake of the customer to apply immediately once they see a low rate and so they get surprised when they’re offered a higher rate or worse, get rejected.

It is important to note that every application can put a mark on your credit file and has the potential to reduce your score even further. Your credit score affects your interest rate so it is highly suggested for you to know what it is. You can go to the Equifax (formerly Veda) website to check your credit report and score.

Consequently, knowing what your score is can be beneficial in accessing for a better interest rate.

If you want to avoid risks any further, seek the help of a professional. As a finance broker, I can help you with the process of securing a personal loan at a no cost to you. Using your credit score and necessary documents, I can help you look for a personal loan deal that is apt for your financial situation and need.

Call 0408 081 082 today or message me on Facebook.

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 You Need to Know About Personal Loan appeared first on Soul Finance Group.

Nothing is certain in life but death and taxes. Hence for this week, we have given you some tax tips before June 30 arrives. If you have missed our posts, we are providing you this roundup. EOFY is just around the corner, so make your 2018 tax return more rewarding and check out these tips now!

This allows you to claim an immediate tax deduction for all capital purchases costing less than $20,000, rather than depreciating the cost over several years, as used to happen. This is great for tech items such as computers, tablets and phones, as well as tools and equipment, office furniture and even motor vehicles. The allowance is available to all businesses with an aggregated turnover of less than $10 million.

The expenses that you can claim include:

• Heating, cooling and lighting
• Cleaning costs
• Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
• Computer consumables, stationery, telephone and internet costs
• Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately.

If you used your personal mobile phone for work purposes, you can claim a deduction for the business-related use. Make sure you have your phone bills collected together and have kept a log of your business/personal use over a four-week period. That percentage can then be applied to the whole year.

You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation.

BONUS: Additional Tax Tips!!!

• According to Dave Ebdon, Senior Tax Specialist at Tax & Super Australia ,“The ATO will be paying particular attention to claims for clothing and laundry expenses, given that last year around 6 million people claimed work-related clothing and laundry expenses,” he said. “This is almost half of all taxpayers, and it is highly unlikely that this many people would be required to wear uniforms, protective clothing or occupation-specific clothing.” “If you don’t have receipts for your expenses, you can only claim a maximum of $300 for work related expenses.”
• Claim everything you are entitled to: Make sure you know what you can claim. For example if you are on the road for work (or work outside) you can claim sunscreen so if your foundation, lip-balm or moisturiser has an SPF factor then you may be able to claim it. You can also claim home office, internet, travel, training, handbags, food when travelling overnight.
• Gather written evidence. Make sure you have written evidence, such as receipts, invoices and bank or credit card statements, for everything you intend to claim.
• Prepay expenses. If you’re a small business you might consider prepaying expenses such as rent or insurance for up to twelve months.

* Soul Finance Group and its finance brokers do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

References:

https://mozo.com.au/savings-accounts/articles/eofy-last-minute-tax-tips-to-jump-on

https://au.finance.yahoo.com/news/12-last-minute-tips-save-taxes-040823563.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 EOFY Tax Tips Roundup appeared first on Soul Finance Group.

What to look for your in your next car loan

Owning a car comes with all sorts of responsibilities that you need to make sure you’re ready for. Once you’re decided and presented with a lot of options, it’s the fine print that really requires your attention. The trick is to find a loan with the best features for you. Here are some of the things you can look for:

Low or no (hidden) fees

Look for a car loan with low or no monthly or application and sign up fees. Be critical with this as there might be some hidden fees included. Just bear in mind that if you’re late with your repayments, no matter how low your ongoing fees are, you’ll have to stump up a late payment fee.

No early exit penalty

Can you pay out your car loan early without penalty? If you come into extra money and want to pay off your loan early, before the term ends, you want to know that you can do so without being penalised. This will differ between lenders and the loan type you apply for so make sure you enquire about this feature.

Extra payments without penalty

Can you make extra payments off your car loan? Doing so will allow you to pay off the loan sooner and can potentially save you money. You or your finance broker can enquire on your behalf whether your car loan allows extra repayments, will you be charged for doing so, and if there is a limit on how many repayments you can make within a certain time frame. These are the finer details you should find out before signing in to anything.

Redraw facility

If you have set up extra repayments but also want to be able to withdraw these if you find yourself in need of money on the spot, a redraw facility is the car loan feature you’ll need to sort this out.

Other features you can also look for would be the option to choose your repayment period and the length of approval for a car loan application.

Now that you know what you’re looking for, why not head on and start your car loan shopping spree and call Kirsten on 0408 081 082. There’s no better time than today and take advantage of the EOFY!

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 to Look for in Your Next Car Loan appeared first on Soul Finance Group.

Why use a finance broker in getting a car loan

Wanting to purchase your dream car is easy, getting finance and arranging paperwork make it to a different level of complexity. Once you have found your dream car, it’s easy to be overwhelmed with the options the dealer can provide and you might find yourself locking into a financial agreement that does not really suit your lifestyle options or take into consideration your repayment ability.

If you are interested in purchasing your first car or another vehicle for your use but feel intimidated by the process it takes dealing with financing, it’s wise to seek a finance broker instead of dealing directly with the dealers or even banks.

WHY?

As a finance broker, I don’t charge for my services and there’s no obligation when you make an enquiry.

We can make it quicker and easier for you to get a car by handling all the paperwork and doing all the legwork on your behalf. If you are struggling from a less-than-perfect credit history, are self-employed, or haven’t built up a credit profile yet, we can uncover more opportunities to access car finance. Working with our range of accredited lenders, our brokers can search through all the possible options to find you the most competitive deal.

Traveling around dealerships, having no idea whether or not your application will be approved or even stressful meetings at the bank—these can be avoided by using a finance broker in helping you finance your next car. Using a finance broker can also help you save your credit file. Applying with more than one lender can damage your credit score. Working with a finance broker essentially lets you apply with multiple lenders through one application.

All you need to do is find the car you want from a reputable dealer and as your finance broker, we can help you with financing your next car.

Looking to purchase a car? Call Kirsten on 0408 081 082 or email at kirsten@soulfinancegroup.com.au.

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 Why Use a Finance Broker in Getting a Car Loan appeared first on Soul Finance Group.

Banks apply stricter measures on clients’ living expenses and behaviours

Who is the Royal Commission??

In the Australian system of government, royal commissions are the highest form of inquiry on matters of public importance. In this case, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established on December 2017 to inquire into and report on misconduct in the banking, superannuation, and financial services industry.

Banks’ and Brokers’ Responsibility

For the benefit of the lender, broker, and the client, banks and lenders have been reassessing their business processes and started utilising some tools to help them prepare for tougher lending measures.

Some lenders have also updated their credit policies, pushing greater responsibility onto the broker to verify a client’s actual living expenses.

Client/Borrowers’ Role

As the borrower, you have to be 100% honest about your living expenses including the amount you spend on your groceries, utilities and entertainment, etc. Otherwise, chances are, you and your finances will eventually suffer in terms of repaying your loan.

Banks and brokers have the responsibility to assess and verify the information you provided. Operative word/s here: information YOU provided. They have the duty to improve their verification process, hence broker tools and updated policies are being utilised. One of the basic foundations of applying for a loan lies on your honesty and transparency in disclosing all of the required information by your finance broker and lender. Ultimately, this will determine whether or not you can afford to repay the money you borrow.

Treat this as a guide in understanding your spending and the goal to save for your repayments. As a trusted broker by many clients for more than 11 years already, I will help you throughout the process including the preparation to make sure that the deal you’re going to get is appropriate for your financial circumstance.

Sources:

https://www.brokernews.com.au/news/breaking-news/new-broker-tool-to-help-with-borrower-information-248665.aspx

https://www.theadviser.com.au/breaking-news/37735-new-software-aims-to-help-brokers-prepare-for-tougher-lending?utm_source=TheAdviser&utm_campaign=08_05_18&utm_medium=email&utm_content=4

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 Banks Apply Stricter Measures on Clients’ Living Expenses and Behaviours appeared first on Soul Finance Group.

What you need to know about credit score

Lenders check your credit score or credit rating, which appears in your credit report, to understand your credit history and see if they should lend you money. Here we explain some basic facts you need to know about credit scores and how they can possibly affect your mortgage.

What is a credit score?

Your credit score is a number based on an analysis of your credit file, at a particular point in time, that helps a lender determine your credit worthiness. It is used by credit providers, such as banks and credit unions, to help them decide whether to lend you money, how much they will lend you and may sometimes influence what interest rate is offered to you.  (from ASIC) This information basically includes:

• Personal identifying information
• Repayment histories on credit cards, loan and mortgages
• Types of credit you already have
• Number of credit enquiries in last 12 months
• Default information

What is a good credit score?

Some lenders don’t usually allow you to see the credit score they give you; they will only advise you on the outcome of your application. Nevertheless, you will be able to access the credit score from your credit file which will be a number between 0 and 1200. A “good” credit score is between 622 and 725, a “very good” score is between 726 and 832 and an “excellent” score is between 833 and 1200.

How is your credit score calculated?

Your credit score can be affected by a range of factors, including:

• Personal details (age, length of employment, how long you’ve lived at your current address)
• Numerous credit enquiries in a short time frame
• Age of credit file
• Overdue debts and defaults
• Bankruptcy
• Late payments for mobile phones, electricity, and gas services
• Court writs or judgements

There are still a number of other factors that take into account your risk as a borrower. For more details, contact your finance broker about it.

How can you check your credit score for free?

You can access your credit file for free once a year by contacting one of the following Credit Reporting Bodies (CRBs):

• Equifax (formerly Veda)
• Get Credit Score
• D&B
• Experian

How to improve your credit score?

You can improve your credit score by looking at your current financial situation. As your financial circumstances improve your credit rating will also improve. Some ways include:

• lowering your credit card limits
• consolidating multiple personal loans and/or credit cards
• limiting your credit enquiries
• making your repayments on time
• paying your rent and bills on time
• paying your mortgage and other loans on time
• paying your credit card off in full each month

Having trouble securing a loan? We have access to lenders that don’t use an automated credit scoring system for your credit application. Instead, they look at your specific circumstances to get to the root of your credit history and your financial position. Got more questions? Give us a call today 0408 081 082, or shoot us a message on Facebook.

Source:

https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-scores

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 What You Need to Know about Credit Score appeared first on Soul Finance Group.

News and updates you see online about your home loan can be a bit overwhelming. Talk about information overload!

To avoid giving you that, we’ve created a very, easy to read infographic that contains ALL of the significant and important things you have to know that concern your home loan.

So if you are a current homeowner and would want to potentially save money on your monthly interest, take a look at this helpful guide:

What you need to know about your home loan

Disclaimer:

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

 This infpgraphic 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 You Need to Know About Your Home Loan (Very Easy to Read Infographic) appeared first on Soul Finance Group.

Why you should pursue your business dream

It’s easy to visualise your dream company because everything in your head seems to be reachable and possible. However, it’s another thing to actually make it happen and build it from the ground. There is rigorous planning involved, funds to be pooled, and time to be allotted. But those are not valid reasons to postpone your dream of building your own empire.

If you ever want to achieve the life you’ve always envisioned, you’ll have to start taking positive, calculated risks. Some are scared to take the initial step but just like anything else, the first part is always the hardest. Once you get the hang of it, you’ll be able to manage in no time. As with any risk, there is always something at stake. In building your own business, you stand to lose money, time, or sometimes, wasted effort. Which are also the very same things you stand to gain!

You may ask, how would you know when you’re ready? When is the best time to start? Ideally, as long as you have a definite goal and idea in place, now is a good time to start. Having a dream is the key. Don’t be one of those individuals who have had a fantastic concept, but for some reason, had failed to pursue their dream to start and grow a new business venture. Over the years, great companies have been built by innovators who saw an opportunity and had an inspired thought on how they might meet customer needs.

Don’t be discouraged by what others would say. You can anticipate mixed reactions, take advices, or consult the opinion of people who you value, but never doubt yourself. Sometimes, it’s easier for people to be skeptical rather than supportive. They’re quick to point out the risks or offer you excuses, and if you take it to heart, you might start to feel disheartened. Instead, use it as a motivation and reveal why you are the right person to complete this goal. Reinforce your experience or your willingness to take a risk and try something new. This may be out of your comfort zone but it’s the beginning of your dream enterprise.

So, what exactly could be stopping you from starting your own business?

Not enough emotional support? Find a couple of wise cheerleaders to stand by you and your dream. Draw strength from them whenever you feel like giving up.

Lack expertise in some departments? Maximise available resources to get work done. Outsource experts. Seek professional advice. This is especially important in sensitive areas like sales, finances, or technical operation.

Don’t have the finance to fund your dream business? There are competitive finance deals in the market available to you. You just have to be knowledgeable and aggressive enough to check which finance option will work for you. If you need more information, you can give Kirsten a ring and she’ll be more than happy to walk you through some of the options.

Kirsten Nazzari-Hawtin has been in the finance industry for 11 years. She is a trusted MFAA-accredited Finance broker and has access to over 30 lenders across Australia. Kirsten can help you with: Home loans, Buying your first home, Investment finance, Vehicle finance, Debt Consolidation, Personal Loans, Equipment finance, and of course, Business finance. Kirsten believes that every client deserves to be treated like her only client, and is passionate about delivering great results, every time. Shoot her an email at kirsten@soulfinancegroup.com.au or give her a ring 0408 081 082.

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 Why You Should Pursue Your Business Dream appeared first on Soul Finance Group.