Finance Update from Matthew Kerr - Finance Manager
Well finally we are starting to see the banks get back to what they do best and this is good news whether you are looking for a home loan, an investment loan or a business loan now or in the near future. This coupled with historic low interest rates is seeing our lending volumes at record levels.
Over the last couple of years Bob Hope’s quote has been ringing loudly in my ears
“A bank is a place that will lend you money if you can prove you don’t need it”
The big things we have seen in recent months which have helped confidence in borrower’s as well as the willingness of banks to start lending more freely include:
- The election – This always seems to be a trigger for people to start making financial decisions again, and this time around the big factor with the Coalition hanging onto government was that negative gearing was to remain.
- Interest Rate cuts – I think the key thing here has been that rates simply don’t look like going up anytime soon which gives confidence to borrowers.
- Banks lowering assessment rates – This naturally improves everyone’s borrowing capacity
- Tax cuts – Freeing up some cash flow
- Conclusion of the Royal Commission – Banks have clear direction around responsible lending guidelines so can ease policy where appropriate.
This has been reflected in home and investment lending data which are both up in excess of 5% on 12 months ago.
NEW EQUIPMENT FINANCE PRODUCTS FOR SELF EMPLOYED
Hudson Finance now have a suite of lenders that can provide extremely competitive funding for self employed borrowers. This can be for:
- New/Used motor vehicles
- Cold Rooms
**to name a few**
Rates can be as low as 4.39% p.a. and if you have been in business (with an ABN) for more than 2 years and are a property owner (whether with a loan attached or not) we don’t even need your tax returns/financials.
CALL US TODAY FOR A QUOTE
TIP – Did you know that if your car dealer is offering you 1% finance then the price of your vehicle is likely to be a lot higher than if you were paying with cash. We can arrange you a pre approval so you can negotiate with the dealer knowing that they are not playing around with the figures on the loan they are also providing you.
Valuers are often the bane of my existence. This is normally when they value an existing property lower than what I/our member thinks it should be valued at which in turn can restrict the amount of money that can be borrowed or incur a costly mortgage insurance premium.
Recently though we came across some members who had purchased a property in Melbourne at auction sub $1m. It is extremely rare to see a valuation come in under purchase price for an established property in this scenario as valuers tend to run with the old adage of something is only worth what someone is prepared to pay.
In this case though the property was valued at $70,000 less than purchase price by the buyers lender who was offered to them due to a corporate arrangement with their employer.
The clients were prepared to push ahead but they would not have any funds left over at settlement to do the work required to the property so they were going to need to pay mortgage insurance and take a higher rate in order to retain some of their cash.
Their adviser at Hudson referred them through to our finance team and we were able to arrange a second valuation which came in at purchase price and align them with a lender who were offering a better rate (as standard) that what was offered under the “corporate deal”.
In the end, they had their $50,000 surplus funds on moving in to be able to do the improvements they wanted/needed to and they had a cheaper product.
This is the beauty of having access to over 30 different lenders on our lending panel.
If you would like to make an appointment with our Finance Manager please call Hudson on 1800 804 296 (freecall).