Lend Me Mortgage Brokers Perth can assist with any home loan, from First Home Loans with Fixed & Variable Rates to investment Loans.
Lend Me Car Loans Perth. Instant & 24 hour pre-approval available^ with competitive rate car loans. Fast & easy, get approved now!
Searching carsales websites can be very daunting. Locate Me finds the car, negotiates the price and coordinates delivery for you.
The only way to true financial planning success is a long-term approach. Plan Me is a Financial Planner for everyone.
- 18 Feb 2016
Loan pre-approval: How it works
When you have loan pre-approval it means you have been pre-approved by a certain lender for a certain type of loan up to a certain dollar amount. There are various types of loan pre-approval, from car loan pre-approval to home loan pre-approval, depending on what you are looking to finance.
The purpose behind gaining car or home loan pre-approval is to let you buy with confidence, so you know that when you make a purchase, you have the finance to back that purchase up. For example, if you have pre-approval on a loan, you can buy the car or property knowing that you will be granted a loan to cover the cost.
Apart from allowing you to buy with confidence, pre-approval also lets you know your purchase boundaries. If you get home loan pre-approval up to a certain amount and you go to auction to purchase a property, you will know your buying limits, which should prevent you from buying a property that you can’t afford.
There is also the fact that it can speed up the mortgage application process, so when you decide on a property, you can access your home loan faster. It can also show vendors and real estate agents that you are serious about doing a deal, which could make negotiations easier.
How it works
While many lenders offer loan pre-approval, some do not. Those that offer pre-approval will vary in their pre-approval process. Some may provide online approvals within a few minutes, whereas some will require a large amount of paperwork and a background check.
This is something to be aware of when applying for loan pre-approval. If the lender offers pre-approval within a few minutes, it could be that their credit assessment team has not seen your application, and the loan pre-approval may not be set in stone.
If you want to buy with confidence, it’s important to know that you can rely on your pre-approval. Be aware of what the lender is asking for, and ask for the pre-approval in writing. By going through a broker, this pre-approval process can be made much easier, as the broker can offer valuable advice on what you will need from your pre-approval and how to go about getting it.
What to look out for
Once you have loan pre-approval, check how long it is valid for. Again, this will vary according to the lender, but it could be anywhere between three and six months. It’s also worth thinking about other factors that may affect your pre-approval and the resulting loan.
If the lender decides you have paid too much for the property, your loan application may be rejected despite your loan pre-approval. It could also be rejected if market interest rates have changed significantly since your pre-approval was granted, or if your personal circumstances have changed, for example, if you have a new job.
Again, if you go through a broker, your broker should be able to offer advice on this. If you choose to go it alone, make sure you do your homework and read all the small print.
If you want somewhere to start, try using some of our loan calculators like the How Much Can I Borrow, Complete Loan Comparison or Basic Loan Repayments calculators here.
Of course if you have any questions, we're here to help.
Lend Me - Car & Home Loan Brokers - Perth, Western Australia
- 17 Feb 2016
Start-up Business Finance - The Options Available
Securing start-up business finance can be frustrating at times, however, there are a lot of options out there.
You may even find a combination of different funding options is suitable for different stages of the business and different aspects of the business you need to fund.
Government grants and assistance
The Federal and State Governments, and even some Local Councils offer business grants and loans which can be a great way to raise funds for a start-up business.
Grants are obviously a very attractive option to fund the growth of any business as you don’t need to pay the funds back, however they do come with strict eligibility and application requirements. The loans that the Government offers to select businesses are also quite attractive as they often have low or no interest.
Both Government grants and loans are often directed at particular industries, geographical regions and groups of people. To see if there is Government assistance suitable for your business, have a look at the information about the various grants and loans on business.gov.au.
One of the most commonly looked to sources for a start-up business finance is a loan from the bank. This sort of finance is generally easier to obtain if your business has already started to demonstrate its viability with a good track record. As with any funding source, being successful in securing a loan from the bank depends on your particular business, the stage your business is at and what you need the funds for. Typically, you will need to provide an in-depth business plan and demonstrate that you have the cash flow to pay back the loan.
Credit cards can be great for smaller cash injections into a growing a business without having to seek approval from the bank or other sources. With their typically higher interest rates, credit cards are best for smaller amounts of money that you can pay back within a relatively short period of time, otherwise the interest you pay can turn them into an expensive way to fund the business.
Angel investors are individuals or groups of individuals who invest their own money in businesses in return for an equity stake. Because they own a share of your business, and the return they see on their investment relies on the performance, angel investors will often want a say in major decisions. Many angel investors will have business experience and the advice, mentoring and input they offer can be very beneficial. However, you need to consider that their advice and decisions may not always be in line with what you envision for the business.
Having personal savings when starting up a business can be an excellent position to be in, not only to help fund the business but also to pay your personal living expenses while the business gets going. It means you don’t have to start out with debt or give away control or a stake in your business to an investor. Starting a business with your own savings can also look attractive to lenders and investors who you may turn to for further funding down the track.
Crowd funding is a way to fund a business or project with relatively small contributions from a large amount of people. The people who support your project may be contributing money as a donation, pre-paying for a product or service, or investing for a share of potential future business profits.
Setting up a successful crowd funding project takes a bit or work and creativity to get the attention of enough potential backers, however if done right it can be an amazing boost to a start-up business.
It is a fairly new method of funding a business, but it is quickly growing in popularity thanks to the many online platforms designed to facilitate the fund raising process.
- 12 Jan 2016
Self Employed Home Loan
When you’re self employed and looking for a home loan it can seem quite complex. And often, many people think they are going to end up with a less attractive deal on their home loan because they are self-employed.
Although you may need to provide more documentation to secure a loan than if you were an employee, being self employed doesn’t necessarily mean you have to pay higher interest rates or have less choice with your mortgage. Here’s the deal with self employed home loan finance.
Proving your income
The main difference between being self employed and a PAYE employee when you’re applying for home loan finance is how you prove your income and your ability to service the loan.
To obtain a standard home loan without paying a higher interest rate, you’ll typically need to have been self-employed for at least two years and be able to prove your income with sufficient documentation to meet the lenders requirements.
To prove your income, you’ll usually need to provide your last two years tax returns, BAS or ATO assessments. Different lenders will use this information in different ways. Some will average out your income over the two years and others may use the lower of the two years particularly if there is a large difference between the figures.
If the income shown from these reports isn’t initially sufficient to meet the lenders requirements, it can pay to work with a broker or lender who can really look at the full picture of your income. There may be one off expenses which have significantly reduced your income for a particular year, but because they are not recurring expenses they won’t be having the same impact in the future. Having someone with the experience to look for these things can make the difference between being approved and not being approved for a standard home loan.
Another issue that the self employed commonly face when demonstrating their income to a lender is that their accountant has done too good a job at reducing their taxable income. In this case your taxable income may not necessarily reflect your ability to service a loan. This is another scenario where it is important to have an experienced broker or lender who can look at the full picture.
If you don’t meet the standard income requirements
If your income;
- doesn’t meet the lender’s requirements for a standard home loan
- you’ve been self-employed for less than two years, or
- you don’t have the documentation required to prove your income,
there are still options available to you in the form of low doc home loans.
With a low doc home loan, you don’t need to provide full financial statements or tax returns. The lender does still need to be satisfied that you can service the loan, so you may need to provide some documentation and sign a declaration of your income. The documentation you do need to provide varies between different lenders.
You will generally need to have a good sized deposit of at least 20% to be able to secure a low doc home loan. While most of the features of a low doc home loan are similar to a standard home loan, the interest rate will typically be higher because of the additional risk a lender takes with this type of loan. You don’t have to be locked into a higher interest rate forever though; once you can prove your income in line with the standard requirements, you may be able to transfer to a standard loan with a lower interest rate.
If you’re self employed and looking for home loan finance, look to work with a broker or lender who understands your unique circumstances to make sure you end up with the best mortgage for you.
Read more about how we can help you with your Self Employed Home Loan.
Lend Me - Mortgage Brokers - Perth, Western Australia
- 8 Jan 2016
What Lost Super Costs
Do you have more than 1 super fund? If the answer is yes, then you have lost super, which means lost money.
"But I know I have more than 1 fund" you say... Yes but more than 1 fund means you are literally losing super, you will be paying double the fee's. Let's look at Bob.
Bob is 27 and has 5 super funds totalling $68,537. Bob earns $110,000pa and his employer makes contributions of 9.5% of his salary.
By reviewing his super strategy, choosing a fund that could achieve his goals and rolling the above funds into the one fund Bob saved an additional $223,122 at retirement simply based on fees.
Bob then decides to salary sacrifice $61 per month ($2 per day!) of his after tax income and he further increases his Superannuation by $140,996 at retirement!
Simplifying your Super or starting to invest early can make a huge difference in retirement, in Bob’s case the above two changes have increased his Super by $364,118 or a huge 14.6% increase.
If Bob chooses to forego $300 per month (after tax) it will add an extra $554,167 to his final balance being $3,409,217.
So how do you do it?
- Search on the MyGov website for any super accounts listed in your name
- Contact each fund, verify your identity and have them send you roll over forms
- Think about what your retirement goals are, and research super funds you think might achieve your goals
- Contact them and set up a new fund
- Complete all of the roll over forms and send them back to your existing funds
- ...................to hard? You can also have a planner do it for you.
Little changes can make a big difference to your retirement, you can read more here.
Plan Me - Financial Planning - Perth, WA
The above figures are based on the following assumptions:
Income $110,000 pa – Indexed at 3%
Bob is 27 Years Old
5% Superannuation Guarantee Contributions
Moderately Aggressive Risk Profile – 7.4% annual return
Marginal Tax Rate of 37% + Medicare Levy
All additional contributions are Salary Sacrifice
- 23 Dec 2015
8 ways to pay off your home loan faster
Given the choice, most people with a home loan would prefer if it were paid off sooner rather than later. And with good reason. Paying off your home loan sooner not only means you own your home sooner, it can also save you thousands in interest. So, how do you do it?
Choose the right home loan
The easiest way to pay off your home loan faster is to make sure you have the right loan for your needs. That means choosing the loan with the lowest interest rate and shortest term possible. It could also mean choosing the loan with the features you need (at the lowest possible price). Features such as an offset account, an option to make extra repayments, and a redraw service.
Make extra repayments
Choosing to make extra repayments – on an ad-hoc and regular basis – can help to pay down the principal on your loan faster and save you a substantial amount in interest. Try to put away extra on top of your regular repayments, and whenever you get a windfall, such as a tax return or a work bonus, invest that in your mortgage too.
Don’t lower your rate
Even if your lender lowers its standard variable rate, keep your mortgage repayments at the same level. Think about it, if you could afford to pay it before, you can afford to pay it now – and those few extra bucks on your mortgage repayment can make a big difference in the longer term.
Keep your savings in an offset account
The savings in your offset account can accrue at the same level of interest as your home loan’s interest rate. Any funds in your offset account are also offset against your home loan, allowing you to pay less interest on your loan. For example, if you have $20,000 in your offset account and a loan of $350,000, you will only pay mortgage interest on $330,000.
Arrange to have your salary paid into your offset
If you have an offset account, arrange to have your income paid into it. You can take funds out of your offset account as needed, but while those funds are sitting in the account, they are helping to cut down on the amount of interest you pay on your home loan overall.
Align your mortgage repayments with your payday
It can also be a good idea to align your home loan repayments with the day you get paid. If you get paid fortnightly, arrange to pay your mortgage fortnightly. Again, this can help to cut down on the amount of interest you pay on your mortgage.
Pay starting fees and charges upfront
If possible, try to pay legal fees, establishment fees and if required, Lenders Mortgage Insurance (LMI) upfront rather than rolling them into your loan, and paying interest on them over the length of the loan. It could save you thousands.
Review your home loan regularly (something people forget!)
In the competitive world of home loans, lenders are always looking to set themselves apart from the crowd, by offering something that other lenders aren’t. Review your home loan on a regular basis to ensure it is still meeting your needs. Compare other loans on the market and consider switching if it’s worthwhile, but be sure to take into account any fees and charges that may be applied.
A 0.25% saving on a $500,000 Home Loan can save you more than $29,000 over the life of your home loan*. We can review this for you, for free with just 4 pieces of information from you... see here
Lend Me - Home Loan Brokers - Mortgage Brokers - Perth, Western Australia
*Savings calculated on a 30 year loan term. These examples are actual client cases that had specific situations and needs, our responsible lending process will apply in all cases. See our credit guide for further detail.
Lend Me: Home loan and car loan brokers
"Starting up a new business isn’t easy, with so many things to think about it can be quite a stressful process. With the services of Lend Me Asset Finance and Locate Me, they have really helped to take this stress away in the way of meeting me on my job sites to sign documents and dealing directly with the Car Dealers, Bobcat Dealers and even my accountant.
The guys at Lend Me really do take the time to listen to what you are after and work in to suit you and make the transaction so simple and convenient, I can’t thank them enough! I’ve also recommended their services to 3 friends already and have only had good feedback. Lend Me have certainly gained a client for life! Reece"
"Hi there, Saturday just gone, I picked up my dream car, a 2013 black lancer LX.
I'd like to take this chance to say Lend Me Car Loan customer service was by the far the best I have ever received. What I thought was going to be tough work turned out to be the opposite. The process easy, simple and quick for me, she did the hard yards... I will be recommending friends and family... Thanks again! Regards, Stephanie"
Why choose Lend Me?
- Competitive rates
- Fast approval
- We do the hard work
- Choice of lenders