Finance Update and Royal Commission

Finance Update and Royal Commission

Royal Commission
Obviously over the past couple of days, there has been a lot of press regarding the Banks and now Mortgage Brokers. And yes the Banks have issues with their culture and lets hope this will fix the problem.
The Commissioner has made some misleading comments regarding our industry, and doubtful if he has ever set foot in a Broking business. Most Banks pay the same referral fee to a broker (ie Commission) for introducing the business. If they pay the same fee, and some lower, and it is the best product for you at the time, where is the conflict? It comes down to individual circumstances and every client is different. They don’t pay any more, and if they did then this is explained upfront as to why we had to go down that path, ie if a client had arrears, defaults, etc can pay a higher interest rate and fees.
Today’s Gold Coast Bulletin states that the Commonwealth Bank was paying an estimated $6,600 on average per broker loan. This works out to a loan of $923,000 approx. This would be the average loan in the southern cities and not the average loan across the board. In our portfolio it was only $256,780.
At KT Financial Services we work very hard for you the client, to make sure you get the best product on offer at the time. We are always here to answer your questions, and assist in your needs, even after settlement. As an example you want to fix your loan, we prepare the forms, you sell a property we complete the forms, send off and follow up. You want to know if you can borrow more money, we do the calculations. You need an increase for Improvements, Pool, etc we complete all the forms and its as if it is a whole new loan. Some things don’t go through but we still do it as it is all part of our service. It doesn’t just stop.
If you have any questions or concerns, please do not hesitate to contact us.

Small Business Tax Concession
If you are thinking of buying a business asset, don’t forget about the $20,000 immediate tax deduction.  If you purchase an asset with a cost of up to $20,000 (including Solar) you will get the full deduction in this 2019 financial year and that includes financed purchases.  To see if this deduction is available to you, I suggest you talk to your Accountant and then talk to us about finance options!

Motor Vehicle Rates

Well it is that time again and all the Car yards have the specials flowing. Remember if you already have your finance Pre-Approved you should be able to receive a discount on the vehicle. Don’t get caught out with the car yards quoting 0%, 1% or 2% finance, what they loose on the rate is already factored into the sale price. We can assist.

Home & Investment Interest Rates

The Banks are still lending, it’s just that the rules have changed and keep changing. Mainly now it is all about Living Expenses. We would suggest that if you are looking at a loan and you think things are tight,  try and cut down on your expenses for 3 months leading up to an application as the Banks require at least 3 months of bank statements to confirm your spending.

Reserve Bank

As expected the RBA rate remained on hold this month when the  board meet today. Some Banks have increased, and some decreased rates outside of this.
All Types of Finance Available
Here at KT Financial Services we can look at all types of finance, so if you are looking for a New Home, Investment, buying property in your SMSF (Self Managed Super Fund), Business purchase, buying a Commercial building, purchasing a New Motor Vehicle or Equipment, etc we may be able to assist. Conditions apply.

Any questions, please do not hesitate to contact us.
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