Weekly Wrap - Fri 26th June

Thanks for tuning in for another of our weekly wrap ups! 

There are a few things we wanted to talk about, including conversations that have been super relevant with clients over these last few weeks, particularly given the time of year. We’ve got some EOFY tips, especially from a lending point of view as well as some pre-purchase tips.

Awards and nominations

First and foremost, we wanted to celebrate some wins during the week. We were nominated in multiple areas of the MFAA 2020 QLD State awards!

  • The Newcomer and Young Professional Award in Customer Service of the Year for Lauren;
  • Regional Finance Broker of the Year for Phil; and
  • Loan Administrator of the Year for Michelle.

Virtual awards took place during the week and Lauren took out two of the three she was nominated for! Lauren won the Newcomer Award 2020 and the Young Professional Award 2020. She has only been with us four years, so to take out two very prestigious State industry awards is just such a huge effort, so congratulations from all of us.

End of financial year tips

With the COVID rules constantly shifting at the moment we are really needing more of that 2020 financial information. In general, it’s important to remind people to get their tax done. Those financials are what we're going to be using for the next 12 to 18 months, so we’re giving a lot of encouragement to our clients at the moment to share those drafts before they're lodged.

There are two, very different ways that we can prepare and lodge a tax return. The first is for accounting purposes where we generally aim to minimize tax. The second is for lending purposes. These two paint two very different pictures. If you're thinking about doing something in the next 12 months, we encourage you to share your draft tax returns with us before lodging because once it’s lodged, they cannot be changed. 

Moving into the new financial year, if you're having discussions with your accountant about possibly changing some business structures or establishing new entities, please reach out and touch base with us before doing so. The banks have changed the way they view changes to business structures, so please let us know so we can do our research and make sure it's okay before it's too late.

Pre-purchase tips. 

There are two areas in particular we talk to a lot of clients about: 

1) Savings and propensity. 

In the lead up to your application and getting you ‘bank ready’, there are a couple of areas that often come up. Particularly around “propensity” - your ability to make or save a similar repayment. For example, if you're paying $200 a week in rent, and your new repayments are $500 a week with the new loan, where is that $300 a week going? Is it going straight into a savings account? Is it being put into a different account? Also consider expenses, understanding we are in the new world and that they’re looking at your Uber Eats, your tap and go and online shopping - all that good stuff. We talk about what’s happening now and we talk about the post-settlement budget. Post settlement budget plays a huge role so make sure that those expenses start looking like you’ve got the home loan. We do a lot of work with clients around that, but anywhere over the next one, three, six or twelve months, if you're looking or thinking about doing this, it's really important to reach out early, so we don't get to the contract stage and then find out we need to actually put you back a couple of months. There's definitely a lot of coaching and learning through that process.

2) Professional’s package

This is the Lenders Mortgage Insurance (LMI) waiver that's available for professionals. Traditionally this was more geared towards medical professions but we've been doing a lot of this lately around accountants, lawyers, pharmacists, physios, dentists and optometrists. There's just such a broad spectrum. Of the 62 banks we have access to or maybe the 13 or 14 that offer it, they all do it differently. It’s really interesting to see some of the wins we've had, where one bank won't  waive LMI and another will, and then seeing the difference that makes.

An example we had this week is with clients who had a great relationship with their existing bank who is in one of the industries that is very targeted by the banks. It was considered really desirable. A bit of a recent change to policy with this particular bank meant they weren't quite as favourable as they'd previously been. So we sat down and met with these guys and secured them in finance through another bank who is still very favourable and offered a full LMI waiver for this client which was around $26,000 in savings. Having the ability to know where to go and which bank is most favourable right now is challenging, because they’re changing as the weeks and months go on. Saving $26,000 is a massive win for this family. 

They were over the moon and obviously saving clients money is what we get most excited about. It was a really great outcome for them.

As always there's lots happening and a lot to share. We’re loving the feedback and if there's any areas you want us to talk about or touch base on let us know, and we look forward to chatting again soon.