Mortgage Broker – Established Residential Investment & Home Loan Specialist

Perth Hills Home Loan - Refinance to a Lower Interest Rate

Perth Hills Home Loan

 

Hello, my name is Nathan and welcome to my Perth Hills Home Loan web page. As my home office is now based in the Perth Hills (since June 2014) it would be great to assist those in the Perth Hills with their home loan requirements to ensure they have the appropriate home loan product, interest rate and service you deserve.

To get in direct contact with me, please click on my Contact Us link.

Perth Hills Home Loan – Suburbs

There are currently 250 suburbs in Perth, Western Australia but the ones I am going to focus on are located slightly north east of Perth.

Google Maps

  • Perth Hills Home Loan Suburb list consists of:
    • Gidgegannup
    • Mount Helena
    • Stoneville
    • Parkerville (home office)
    • Sawyers Valley
    • Mundaring
    • Mahogany Creek
    • Hovea
    • Glen Forrest
    • Darlington

I do cover more than the list above but as you can see the Perth Hills suburbs I have detailed are all located within 20kms of my home office.

Perth Hills Home Loan – Product Features

There are many, many home loan products on the market all of which are very similar and sometimes hard for the untrained eye to decipher which is the product most suitable for your circumstances. This is the real benefit of using a Mortgage Broker instead of going direct to a Bank or using an Online Lender.

I have never met a Mortgage Broker or viewed an Online Lender who has access to ALL home loan products in the market. The most common access is to about 40 different lenders, of which most Mortgage Brokers will only use up to about 6 different home loan lenders. Why so few? Every Mortgage Broker who has been in the trade for more than 5 years will know that the majority of products are the same. The difference between the Big 4 Banks interest rates is minimal and actually fluctuate depending on which one needs to increase their market share at the time, so the real differences a good Mortgage Broker is looking for is service. Not just service from the lender to the Mortgage Broker but the service a lender provides to you, in particular after settlement.

I have met many clients who have complained about their home loan lender and the lack or service or the poor quality of service they have received after the home loan has settled, which is extremely disappointing. Since October 2005, my goals have been simple, to place my clients with a home loan lender who offers a fully featured home loan product that has a good to great Interest Rate and an after settlement service that exceeds their expectations.

The Perth Hills Home Loan features I obtain as a minimum for my clients are detailed below.

  • Perth Hills Home Loan (minimum) features:
    • $0 Monthly Fee
    • $0 Annual Fee
    • $0 Transaction Fee
    • $0 Internal Transfer Fee
    • $0 Early Repayment Fee
    • $0 Redraw Fee
    • $0 Lump Sum Repayment Fee
    • Free 100% Offset Account
    • $0 Break Fee
    • $0 Broker Clawback Fee
      • I am yet to meet a client who absolutely knows how Mortgage Brokers are remunerated and none ever knew that a Mortgage Broker could have their Commission clawed back the Bank, which the general policy is:
        • If you refinance or sell your property within 12 months of settlement the Bank will ‘Clawback’ 100% of my upfront commission.
        • If you refinance or sell your property between 12 months and 24 months (2 years) of settlement the Bank will ‘Clawback’ 50% of my upfront commission…
        • Some Mortgage Brokers will get you to sign a document stating if this occurs that you then owe the Mortgage Broker the Bank Clawback Amount!
          • I will NEVER on charge this fee to any of my clients and this is written into my Credit Guide

Perth Hills Home Loan Special… For all clients refinancing their Home Loan located in the suburbs described above I am going to take 0.00% Upfront Commission and charge a 25% discounted Brokerage Fee of $1,320 (as per my Credit Guide) down to $990 as a flat fee instead.

Average Mortgage Broker Upfront Commission is 0.65% of the loan amount, for example:

  • $350,000 home loan times by 0.65% = $2,275 Upfront Commission
  • $600,000 home loan times by 0.65% = $3,900 Upfront commission

For my services I will charge instead of receiving this Upfront Commission, a flat fee of $990 until the end of June 2017 for clients located in the above listed suburbs.

Keeping in mind a Real Estate Agent, to sell your home will charge you about 2.50% of the sale price, for example:

  • Sold for $550,000 @ 2.5% = $13,750 Real Estate Agent Commission
  • Sold for $750,000 @ 2.5% = $18,750 Real Estate Agent Commission

Perth Hills Home Loan – Loan to Value Ratio (LVR)

You can easily work out your own Loan to Value Ratio if you are refinancing by applying this easy formula:

  • The ‘Loan Amount’ divided by the ‘Value of your Home’ times by 100 = ‘XYZ%’ – for example:
  • $400,000 Loan Amount divided by $500,000 Home Value times by 100 = 80.00% LVR
    • As you can imagine the Value you put on your home may vary compared to when the Lender obtains an Independent Valuer’s Estimate

To obtain the lowest Interest Rate and incur the least amount of fees the LVR needs to be less than 80%.

If the LVR is greater than 80% you may need to pay a Lender’s Risk Fee or a Lender’s Mortgage Insurance Fee, which I will abbreviate as LMI, both of which protect the lender’s interest, not yours!

If refinancing your Home Loan to a new Lender the average industry maximum LVR = 88% and then the Lender’s Mortgage Insurance (LMI) is added on top to a maximum of 90% LVR.

When you take into account the LMI Fee and add this to the refinancing costs you may find refinancing to a lower interest rate is not in your best interests. You really do need to crunch the numbers before refinancing your Home Loan to ensure that you are not paying too much or going backwards with your overall Home Loan debt.

Perth Hills Home Loan – Credit Criteria

I am a big believer of being conservative and not overstretching your ability to not only repay your Perth Hills Home Loan but your ability to repay your Perth Hills Home Loan fast. And to do that means you cannot afford to have a Home Loan Amount that is greater than 5 times your Gross Annual Income. For example, if your Gross Annual Income is $70,000 times by 5 = $350,000 and as you can imagine the lower the multiple the safer you are going to be if Interest Rates rise or if you have to change jobs and the new job is paying less. So 4 times your Gross Annual Income is what you should be striving to obtain.

If you are a couple and you plan to have children, my Perth Hills Home Loan formula is to only use:

  • 100% of the remaining income earner if you decide to have a family
    • E.g. Main income earner earns $70,000 and this is set to continue of you have children
  • 50% of the secondary income earner
    • E.g. Secondary income earner earns $70,000 but will cease work or have significant time off after a child is born
    • Therefore we only use $35,000
  • Combined income is $70,000 + $35,000 = $105,000
  • Therefore the maximum Home Loan amount is $105,000 times by 5 = $525,000
    • The reason for only using 50% of the secondary income earners income is clearly due to the fact that there will be a period of time when this income is heavily reduced and the fact that there are many new expenses when a baby is born, in particular if/when the secondary income earner returns to work and child care expenses kick in, which are massive.

Alternatively there are Home Loan products on the market that can assist you in your plans to have a family. The Pregnancy Pause product is not good as that sees your Home Loan go backwards but their is another product that helps you plan for the transition of two incomes down to one. If you are interested to learn more please do not hesitate to Contact Us.

Perth Hills Home Loan – Summary

If you live in the Perth Hills and need a Home Loan, either by refinancing the one you currently have or if you are looking to buy an existing property in the Perth Hills I highly encourage you to get in touch.

It takes me 5 minute over the phone to find out if I can assist you, what your Interest Rate can be and if there are any savings to be had.

For any property that has local power and water connected with an LVR less than 80% I can beat the rates you would receive if applying with ANZ, The Commonwealth Bank, NAB or Westpac.

The mobile number detailed on my Contact Us page is my direct line, no other staff member, so when you call you know you will be speaking directly to the Owner/Managing Director, me… Nathan

I look forward to hearing from you soon

Nathan Daniell
Simplify Your Mortgage Pty Ltd
Australian Credit License Number: 387974

P.S. I hope my Perth Hills Home Loan web page has been informative and I just want to thank you for your time taken in visiting.