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A question I’m constantly asked and one that appears on a lot of property investing forums is “what is the difference between a redraw facility and an offset account?” The fundamental difference is that “redraw” is when you’ve paid extra money into your home loan and you’re able to “redraw” those funds back out of the loan. An “offset” account is a bank account linked to your home loan. You can place money into this account – and take it out. The money that sits in the account saves you interest on your home loan. Most variable loans come with the ability to redraw. To be able to use a redraw facility, you need to make extra repayments in addition…
Earlier in the month - the Reserve Bank of Australia announced that it would be reducing the official cash rate by 25 basis points to 1.75% Below is a list of some lenders who have announced the rate cut that they will be passing on. We are still waiting to hear from others. The Big 4 - with the exception of ANZ - have passed on the full 25 basis point cut. ME Bank has passed on the lowest cut at 5 basis points. As always - if you need any advice in regards to your home loan/loan structure or have any questions at all - please get in touch. Lender Owner occupied Investor Effective date Commonwealth 0.25 0.25 20/05/2016…
Mortgage brokers offer variety – banks are limited to their own products When you walk into a bank – they are limited to providing advice on their own products. They aren’t able, or willing to tell you, that there could be a better offer down the road with their competitor. On the other hand – most brokers typically have a large number of lenders they are accredited with. For instance – at Pass Go we currently deal with 20+ lenders including all the Big 4 banks – so we have access to hundreds of different loan products. At Pass Go - we also get preferential treatment with some lenders due to the high volumes of business we do. This often…
We are closing in on the last months of the Financial Year – and in preparation - Damian Toms from Mint Financial Advice, my own personal Financial Planner, has prepared a list of his top tips for reducing your tax burden prior to June 30. While it’s not a post directly related to property investing/home loans – I thought it was worth sharing. As always, I recommend seeking personal advice for any strategies you may be considering, as strict limits apply to contributions to super and tax penalties can be large for any mistakes. So please contact Damian if you need any assistance, advice or have questionshttp://www.mintfin.com.au/contact Please also note that I’m not a Financial Planner – and the content…
Steve and Sarah purchased an investment property in Canberra - it was a 2 bedroom unit for $300k on the north side of Canberra. They decided on this particular investment property because it was in a growing area of Canberra and there was potential to add value through cosmetic renovations. They spoke with their Canberra mortgage broker who assessed their borrowing capacity. They had a modest amount of savings but it was enough to be given the green light on finance for the investment property. At first glance, the unit was hideous. It was owned by an interstate property investor who wanted to sell up - he had a bad experience with the previous tenant and decided to give up…
Someone in Canberra recently asked me what the secret to property investing is. The truth is - there is no secret. It’s possible to buy an investment property without using any of your own money. In fact, that’s how we help most customers enter the world of property investing. If you’re currently a home owner, chances are that your property is worth more now then what you paid for it. This means you have some equity. The equity in your house might be enough for a deposit on an investment property. It might also be enough to pay all of the purchasing costs associated with buying an investment property such as stamp duty and legal fees – meaning you don’t…
In general, if you are borrowing more than 80% of the value of a property you may be required to pay Lenders Mortgage Insurance (LMI). LMI is an insurance that protects the lender in the event that you default on your mortgage repayments. The cost of the LMI premium is dependent on how much you need to borrow (for instance it’s higher on a 95% loan compared to an 85% loan) and the value of the loan. Is LMI a bad thing? While no one likes to pay for an insurance that protects the bank, LMI doesn’t necessarily have to be viewed as a bad thing. In fact, we believe it can be a handy tool for leveraging in the…
Negative Gearing The term negative gearing is thrown around quite a bit in the world of property investing. So what does it actually mean? Put simply, negative gearing means that the cost of holding the investment property is greater than the income (rent) the property receives. It is this loss that you can claim to lower your taxable income (and therefore reduce the tax that you pay). As an example, John has an investment property in Canberra and the cost of holding the property is $2000 each month which comprises of: Interest repayment on the loan $1500 Property management fees $100 Insurance $50 Rates $100 Maintenance $50 Depreciation $200 Total costs per month = $2000 John also collects $1500 per…
Monday, 18 April 2016 10:55

About the owner

Jamie Moore is the owner of Pass Go Home Loans Pty Ltd, a Canberra mortgage broker firm which specialises in sourcing and correctly structuring finances for property investors. Whilst Jamie is based in Canberra, his professional services are offered Australia wide - with his clients spread across each state and territory as well as overseas. Jamie is a platinum achiever in the mortgage broking industry and also an active property investor – appearing in both the Australian Property Investor and Your Investment Property magazines. It was Jamie’s passion for property investing that caused him to make the transition into mortgage broking and establishing Pass Go Home Loans. As a property investor himself, Jamie is able to offer his clients more…
Written by Medine Simmons and featured in Your Mortgage Magazine Many people head straight to their bank when it comes time to apply for a home loan, but finance experts warn, you may be missing out on significant benefits if you do. There are countless reasons why it pays to use a broker when shopping for your home loan, and even if you want to use your own bank for your mortgage, you can still use a mortgage broker to process paperwork and manage the application on your behalf. But if your heart’s not set on using a particular lender, a broker can be your best friend, says Medine Simmons from www.mfsimmons.com.au. She offers the following five arguments as to…
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