Home Loan Repayment Guide During Pandemic

With many Australian homeowners struggling with their home loan repayments as a direct effect of the Covid-19 pandemic, the Government has beefed up its efforts to provide support to those in dire needs.

The Covid-19 pandemic has undoubtedly shaken global economies in a magnitude that has never been seen before. Its impact has dwarfed that of the 2008 global financial crisis (GFC) in 2008.

For months, many Australian homeowners have struggled financially to keep up with their home loan repayments. As a response, Australian banks are ready to disburse A$100 billion to those who have lost their jobs and missed home loan repayments during this high time of uncertainty.

More loans, lower interest rates

A large chunk of the stimulus package vouched by the RBA, which amounts to A$90 billion, will be allocated for cheap loans to Australian banks. This amount will then be used to fund loans targeting small businesses and to lower interest rates to 0.25%.

The fiscal stimulus package from RBA ultimately eased up the regulatory requirements for commercial banks and in effect, will stimulate economic relief.

Is it the best time to take out home loans?

With the fiscal stimulus package made available, banks are competing for their cuts in the competition. This ultimately makes the interest rates even more advantageous for home buyers.

While it may seem that it’s not the best time to take out a home loan, considering how uncertain the economy is, it is still worth considering. If you’re unsure whether to get that home loan or not, make sure to talk to your trusted broker and discuss your circumstances to get informed advice.

Anticipate unexpected expenses

With the current economic volatility and job uncertainties, make sure that you have ample amount of savings to finance unexpected expenses. If you are currently employed, anticipate the possibility of losing a regular source of income.
It is worth noting to have contingency plans should you or your family face hospitalisation, prolonged quarantine, among other things.

Talk to your lenders

Since many banks have released measures that aim to lessen the burden of their clients, it’s best to check whether they have waived penalties or lowered the interest rates for your outstanding mortgage.

Ask if you need to lodge an application to avail of those programs. Discuss your circumstance with your bank or lender and see if they can offer some relief on your current mortgage.

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending.

How To Get Guaranteed Approval Loans For Bad Credit Applications

Finding yourself in a bad financial situation should not hinder people from applying for any types of loans. For example, guaranteed approval loans for bad credit applications are still available for individuals who have an unattractive credit history.

Over the past years, millions of households in Australia alone have found themselves in bad financial situations due to skyrocketing interest rates. The move of leading lenders in the country to increase interest rates has shaken the repayment ability of many Australian borrowers. This has pushed them to the brink of loan default.

If you are one of these borrowers who are discouraged in pursuing that loan application, there’s still actually a hope. Lenders still give preferential treatment to potential borrowers with seamless credit history. However, some financial institutions are still willing to approve loans from borrowers with problematic credit scores.

If you are not so confident with your credit score, you might want to explore guaranteed approval loans for bad credit applications this time. It is true that your chances of getting approved to high-stake loans, there are specific types of loans that just may be perfect for your case.

Credit score during Covid-19 pandemic

Lenders are also aware of the fact that a good number of people who are on default on their loans are just victims of their personal circumstances. They’ve been in that unfavourable financial situation not by choice, but purely out of bad luck.

In the current pandemic that affected the entire world, many households in the country struggled to keep their loan repayments. Many fear that this will hurt their credit score and decrease their chances of loan approval.

According to the Australian Banking Association (ABA), missing repayments due to the pandemic should not affect the borrower’s credit score. Otherwise, the agency noted that there are ways to protect one’s credit score during this pandemic. If you’ve missed several repayments during this troubling time, you can always talk to experts to help address your credit score problems.

Getting through the process

One of the most challenging parts in getting guaranteed approval loans for bad credit applications is usually the beginning. Not knowing what to do, what things to prepare, and where to go can be very overwhelming. Whether it’s for personal loan or home loan, being prepared pays a lot.

To save yourself from this unnecessary stress, you can seek the services of professional brokers and financial advisors to help you with the process. There are companies with extensive networks with lenders and financial institutions in Australia that can be very beneficial in your loan application.

Another benefit of hiring professionals to assist you with your loan application is having your credit score assessed professionally. Different rating companies use different systems and indexes in reporting credit scores. Sometimes, people are clueless about their credit score or have inaccurate credit reports.

Experts at Intellichoice are experienced in handling different types of loan applications. The company has handled thousands of successful loan transactions for nearly two decades. It specializes in personal loan and home loan applications in Australia. They provide bespoke and expert support to anyone looking for the best deal at a reasonable rate. They can also assist potential borrowers who have problematic credit scores with their extensive credit reporting and preparation experience.

Getting a Diploma in Financial Planning for a Career Change This Pandemic

With thousands of people out of work because of the pandemic, many are becoming interested in getting a diploma in financial planning in Australia. 

Financial planners or financial advisors provide professional financial advice to people or businesses on how to better manage their finances. After all, professional financial planners in Australia make around 100-120k annual pay. 

As many families and businesses are struggling financially, the entire world economy has been shaken in so many ways. This has led to the dramatic increase in interest among the population on how to become a professional financial planner. 

Becoming a financial planner is not only an ideal career at this high time of uncertainties, but is also a very attractive and useful career in the years to come. Hence, the peak in interest in this career over the past months is very understandable. 

Career Path 

In Australia, the financial planning career is regulated by the Australian Securities and Investments Commission (ASIC). As such, the path to becoming a professional financial advisor is highly regulated by strict standards. 

Getting a degree

Since January 1, 2019, a new resolution has been issued requiring all financial advisors to complete a bachelor’s degree or higher studies (same equivalent) to become a financial advisor. 

Through Training

After completing a degree, the aspiring financial planner needs to work with a company that holds an Australian Financial Services License (AFSL) from ASIC. 

By getting certified

Another alternative path to become a professional financial advisor is to be certified by the Financial Planning Association of Australia (FPAA)--a duly recognised organisation of professional advisors in Australia.   

Getting a diploma

If you have finished a degree that’s totally unrelated to financial planning or finance-related programs, you have the option to enroll in a diploma for financial planning courses. 

There are several Australian universities that offer such programs either in-campus or online. The program duration usually runs for a year, which can be taken full-time or based on your own pace. 

After completing this program and finally getting your diploma, you can start working with ASIC-certified firms as a trainee and make your way up the rank and become a fully-certified and professional financial planner. 

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today!

A Beginner’s Guide To Personal Loans

Personal loans are specifically designed to finance personal expenses.  It is popular among people looking at loan products to consolidate their debts. It can be used to finance different personal needs such as purchasing a car or cash to cover medical or educational expenses, among others.

Common types of personal loans include Car loans and Lifestyle loans.  Personal loans can be secured—requires the need of collateral to secure the loan—or and Unsecured—does not require a collateral, which can include real estate property (house and lot or land) or vehicles (cars/tractors/equipment).  

Why should you get personal loans?

The application process is easy, and some lenders can render same-day approval. It is a good way to get cash for various personal expenses-including consolidating his multiple credit card debts and his personal loan--and just one pay one loan instead.

One can also use personal loans to finance his personal expenses such as health, education, and even travel expenses, among others.

Other purposes of personal loans

Personal loans are a good option if you intend to consolidate multiple debts into one—for convenience purposes.  A source of cash to finance other personal expenses.

Who should get personal loans?

Only those who are in dire needs of cash for personal expenses that need immediate funding should get a personal loan. It’s easy to fall into a debt trap with personal loans.

Since many people fall into a debt trap with personal loans, only those with a stable and continuous source of income should get this loan or any other loan type for that matter.

Anyone looking at consolidating their debts into one loan

Personal loan process

Eligible applicants can directly go to lenders, but this gives him few options in terms of interest rates. Lenders differ on their requirements and interest rates, so it’s preferable to check with a specific lender that specialises in personal loans for better results.

That’s where Intellichoice Finance comes in, we specialize in personal loans and we have lenders that have been dealing with clients with successful personal loans applications in the past 18 years.  

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a Brisbane-based mortgage broking company that was established 18 years ago. He was shortlisted as a finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. If you want to jump start your home loan application, please our online home loan application page today! 

Things To Consider Before Getting A Home Loan

Getting a home loan is already an overwhelming endeavor for most people. But considering the current economic situation, this has become a more intimidating process for many.

With the current economic condition, getting a home loan has become more challenging and as such, requires more research and effort from home buyers to avoid unnecessary stress.

Since home loans long term commitment, it requires a thorough effort from planning stage to moving in stage. Each phase of the process is emotionally taxing.

What are home loans?

Home loans are types of loans that are specifically designed for individuals who are looking at getting their own house or property. In Australia, it is by far the most popular way towards home ownership.

Since getting home loans is generally a long-term commitment that is primarily taken out by individuals primarily towards owning a house, choosing which home loan type that fits your need is important.

Home loan repayments can take up to 30 years, in most cases, so it requires a lot of considerations before you should jump in.

Technical aspects

In order to avoid paying the lenders' mortgage insurance (LMI), try to set aside at least 20% deposit for the loan. The higher the deposit is, the lower your loan will be. Although you will not benefit from the LMI, which is a one-time fee, it will, however, protect the lender should you fail to pay for the loan. 

Depending on your needs, there are specific types of loans just for that.

Whether you’re a first-time home buyer or a seasoned investor or a senior looking at cash to finance your daily expenses, there’s a specific loan type for you.

Knowing the perfect loan type based on your personal circumstance is a key to a seamless and worry-free experience.

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a Brisbane-based mortgage broking company that was established 18 years ago. He was shortlisted as a finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. 

Intellichoice Finance’s Darin Hindmarsh Finalist In AMA 2020 Specialist Lending Awards

 

The Australian Mortgage Awards, the most prestigious mortgage award-giving body in the mortgage sector in the country, named Darin Hindmarsh as among the finalists under specialist lending category. 

Among numerous nominations from brokers and mortgage practitioners from all over the country, Hindmarsh has been shortlisted in this year’s Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. 

Hindmarsh is the CEO and founder of Intellichoice Finance, a Brisbane-based company he established some 18 years ago. 

His story of tragedy, personal struggles, and professional challenges did not damp his spirit to continue what he started. Carrying those experiences with him, he persevered to rebuild his broking firm a year ago to its former glory. 

 

With his almost two decades of industry experience, Hindmarsh continues to help Australians fulfil their dreams of living in their own house. Staying true to its name, Hindmarsh’s Intellichoice encourages its clients to make intelligent choices in making their dreams come true. 

Intellichoice Finance is a broking firm in Brisbane, Australia that specialises in personal finance, particularly owner-builder loans. To know more about their services, you visit their website today.

Darin Hindmarsh and Rod Page explaining insurance for farmers

Mt Isa Rodeo

We've decided in the office, we all need to get to this one!

As part of our commitment to truly understanding the issues faced by farmers, we took a quick day trip out past Samford to

Gorgeous day but it gave everyone a new perspective on what hard work a pineapple farm is. (Except Rodney who did it for 10 years)

Working hard in Proserpine

Next on the list was Proserpine. They had been cut off a couple of days before but we were lucky enough to get through.

We did the morning session in Proserpine then went to Ayr.

The concerns and questions areslightly different in each region.

The weather patterns are different and that changes things.

Even though succession is really important, right now many farmers are also dealing with more immediate issues. What is going on with the local mills? How are we going to get our crops harvested?

My advice is always to focus on what you can control and do your best to get that sorted. You can’t control the weather. You can’t control government regulation.What you can control is the fact that you can insure against income/ partner lose and methods of evaluation.

We are trying to give farmers the control back that they feel like they are losing by helping them develop a strategic financial plan that will help carry them through.

Next stop - Mackay

We had a very successful talk in In Mackay at the  Canegrowers office in Mackay.

A lot of the questions and conversations were around the implications of Sucrogen who have been buying a lot of sugar mills which is having an impact on sugar prices. Farmers are a bit worried about the future. A lot of the sugar mills are up to 80 years old and it feels like times are changing.

Other issues have centred around the weather. There have also been lots of flooding which has been hard for harvesting. The erratic nature of the weather is becoming more clear.

I also met with a law firm in Mckays Law. Mark McGraw sits on the regional development council.

He was saying a lot of the cane farms have Develop Approvals on them. But a lot of them can’t go ahead because of political issues.

There also appears to be a significant resource shortage on its way. It seems the town will  only have the capacity to house 10 – 17% of the workers required for the mines.

For investors and farmers alike, this has quite a lot of implications and needs to be watched carefully

Our Amazing Farmers

Here’s Darin Hindmarsh identifying issues that farmers face and how they can be resolved.

Rodney Page our Senior Financial Planner discussing why succession planning is so important for farmers

Here’s Rodney explaining succession planning and how it can work for farmers

The trip begins

As part of our commitment to helping ensure that farmers have a well developed succession plan Rodney Page and I are heading off on a road trip to visit farmers and explain why succession planning is such an important issue.

It wasn’t a glamourous start.

I left Brisbane at 4 in the morning driving through pouring rain.

At 4.00am the Qld Government website told me the Bruce Highway was flooded  but by 5.00 the highway signs were saying  it was open again! Too late to turn back so we pushed on through Gympie.

Our first seminar was at 8.30 am to about 10 farm groups. We quickly identified some issues that needed work and Rodney is coming back to spend 3 days there on his way back.

The next seminar for the day was  at 1.00 in Bundaberg so I hightailed it throught  Childers to Bundaberg and did the seminar to about 4 or 5 farmers. All of those people wanted a visit from Rod so they are all booked in.

Wednesday, was Childers and we had more than 20 people at that seminar – all identifying issues that needed to be addressed.

How to understand the ins and outs of a self-managed superannuation fund

A self-managed superannuation fund (SMSF) can be a vehicle to help you take full control of your retirement with property, but David Hasib of Chan and Naylor says investors must know what they're in for prior to setting one up:
1. To set up a viable SMSF it's wise to have at least $200,000 in your existing superannuation fund otherwise the costs of administering the fund (minimum $1000 annually) can make the exercise unviable.

2. Your SMSF must be classified as a complying Australian superannuation fund.

3. You must become a trustee of the SMSF - this means you're responsible for managing the fund and only access it according to the law.

4. You must set up and execute an appropriate investment strategy with the assistance of SMSF professionals.

5. You must always comply with the sole purpose test in the fund to maintain tax concessions are available (eg. buying a holiday home to occupy is in most cases a no-no).

6. Always keep assets separate from personal affairs.

7. Follow the superannuation and tax rules in the trust deed, which are set up and updated by an SMSF professional.

8. Know your restrictions - what you can or can't do (eg. borrowing and lending).

9. Know what retirement planning strategies you can use to achieve your goals and objectives.

10. Do you need to outsource? Know what you're truly capable of doing and what you should outsource (eg. tax returns, administration, reporting and auditing). If you're satisfied you have what it takes to set up a SMSF then you need to: set up a trust, choose to be a regulated fund with tax file number and Australian Business Number, write your investment strategy, then set up the trust bank account. The rest is history.

For more information about self managed super funds, speak to one of the financial planners at Intellichoice today.

Tax break for savings to benefit millions of Australians

More than five million Australians will earn more interest on their savings in banks, building societies and credit unions, under a government proposal to halve the tax paid on the interest they receive.

Instead of paying $160 in tax on $10,000 of savings in a bank account that earns 5 per cent interest, the Australian taxpayer will only have to pay $80 in tax on the interest earned in 2012-13.

Under the present system, all interest earned on savings is taxed. The interest is considered additional income, which is added to the taxpayer's annual earnings.

With the proposed changes, the taxpayer will be given a tax rebate of 50 per cent on the interest earned.

The importance of property

A recently released report by global real estate firm Knight Frank and Citi Private Bank highlights the important part that property plays in the lives of the wealthy.

The report looks at the property habits of those who have fortunes of more than $100 million and found that these wealthy individuals have 35% of their wealth in property.

After their own business they see property as their most important investment and are currently more likely to invest in property than any other asset class.

Reasons for investing

When considering your investment be sure that you understand your reasons for purchasing an investment property.

Remember that you are investing to secure your financial independance, which means you want to create a passive income and build equity.

Many people try to pick the market cycle but never actually buy anything because it is not the "right time".

It's important to plan for the future and not get so caught up in the process that you could end up failing to act.

It's extremely important to get moving and do something as the cost of doing nothing can be very expensive.

The ideal time to buy is when it is right for your individual circumstances and when the opportunity presents itself.

Once a decision is made, act quickly and with confidence.

The second half of this year will bring many opportunities ; the question is, is it the right time for you?

Three quarters of us are in credit card debt

One of the myths of the credit card market is that only a minority of cardholders carry a balance on their cards from one month to the next.

In fact the opposite is true.

According to Reserve Bank credit card figures, the “revolve rate” on cards is 72% (the revolve rate is the finance industry term for cards that carry a credit balance from month to month).

Consumers spent an average of $15,963 on their credit cards over the past 12 months and carried an average account balance of $3,234.

And whilst spending on cards increased by a fairly modest 3.3 % over that 12-month period, balances still increased by 6.9% - which means we are reining in our spending on cards but accumulating more debt.

Customers with multiple credit cards should always pay off the one with the highest interest rate first.
Alternatively they should consider consolidating the debts into a low rate card through a balance transfer offer, or consolidate into a personal or home loan.

For assistance with managing your debt or if you would like more information about debt consolidation loans, speak to one of the financial consultants at Intellichoice today on 1300 55 10 45.