Preparing for a loan application… what has changed

Many clients are surprised by how thorough the loan approval process has become. The government has put pressure on the banks over the past 18 months to tighten up their credit assessment processes. The purpose of this blog is to give you an overview of what the banks look at, what questions they ask and …

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Commissions have destroyed the reputation of financial planners. When is a commission ok, if ever? And what fee structures work?

Commissions in financial services is often viewed as a dirty word. The word creates connotations of self-interested sales people flogging products to poor, unsuspecting clients – well, it does in my head. I passionately believe that financial advisors should not accept any commission as a result of making an investment recommendation. But what about commissions …

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The banks get away with a lot, don’t they?

This week, three out of the four major banks increased 5 year fixed rates by a significant amount (around 0.80% p.a.) without any warning. The banks used to give mortgage brokers and branch staff a few weeks’ notice before they increased fixed rates. This allowed us time to let clients know and give them the …

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Home loan interest rate discounts – an idiot's guide

This short blog will provide you with the tools and knowledge to negotiate the best interest rate discount on your mortgage/s. The banks leave themselves open to price competition Much has been written lately about whether the banks will be able to maintain their enormous profits (and dividends) in a low interest rate environment. The …

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Should you choose fixed or variable rates?

With interest rates at historic lows and more talk of further interest rate cuts, many clients are wondering if they should fix their interest rate. Less flexibility It is important to note that fixed interest rates have less flexibility than variable rates. That is, if you break a fixed rate loan, you could be up …

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