The Weekly Times - TWT - 18th July 2018

16 THE WEEKLY TIMES Wednesday 18 July, 2018
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How to avoid the pain that comes with
your bank increasing variable rates
The Barefoot Broker
with Jason Khoury
IT’S official - nothing’s
more annoying
than banks increasing
their variable rates
on you and everyone
else while blaming increased
funding costs.
Notwithstanding the
recent Reserve bank decision
to leave the ‘cash
rate’ at 1.50%, they’ve
just done it again.
AMP, Bank of Queensland,
IMB and ING all
decided they’d hurt existing
clients by increasing
variable rates. The
majors, to date, have
absorbed the increased
funding costs in wholesale
markets, but we’re
certainly watching this
space.
So how can you avoid
being impacted by this?
Obviously, fixing your
interest rate not only
protects you against
RBA movements to
the cash rate, but also
against the out-of-cycle
increases the banks decide
to hit you with every
now and then.
You can fix the rate on
your home loan for two
years at 3.65% or for
three years at 3.79%.
That will be your rate
for the fixed term irrespective
of the banks
crying poor.
And for some of you,
you can have a 100%
mortgage offset account
against a fixed rate home
loan. What the… ??!
Particularly with investment
loans, we at
iChoice also like the ‘big
four’ and their direct
subsidiaries, who get
funded by them.
You can get two-year
fixed rate for investment
loans at 3.99%
if you know where to
look. That’s outstanding
value – especially
because they’ll also pay
you $1,500 Refinance
Rebate.
Far out, nobody needs
to have a rate starting
with a 4!
Westpac’s even giving
away enough reward
points to fly four people
return to Los Angeles,
just for switching
your loan to them, with
the only catch that the
loan needs to be more
than $1m to claim the
500,000 Velocity points.
If you insist on a variable
rate like 3.59% for
your investment loan
and you’re securing it
with your home, it’s wise
to go with a bank that’s
just increased its rate,
rather than one yet to
announce a rate hike.
And you’ll probably pull
off the rate they’d offered
the previous month, as
influential brokers like
the iChoice crew, can
convince to shave more
off some more to keep
you long term.
I know you love your
bank, but the reality is
they’re lawfully required
to maximise their shareholder
return.
That’s their corporate
responsibility. So anyone
who thinks the banks
actually put people first -
just doesn’t get it.
All the best deals out
there are for new-tobank
clients. So if you’re
complacent with your
existing arrangements
and couldn’t be bothered
looking around,
that’s OK. But understand
you’ve then made
a decision to cause
yourself financial loss.
Remember, you can
switch banks for your
loans and still keep
your everyday accounts
where they are.
In my book, staying
stationary is falling behind
and not making a
decision to do something
is in fact a decisive
decision to not do it.
Our new office has a
sign on the wall, with
that infamous quote
from Einstein: “the definition
of insanity is trying
the same thing over and
over and expecting a different
result”.
It’s for our clients, staff
and myself to see every
day. Sure, it’s overused
and clich, and it’s uncertain
Einstein even said
it, but it’s a great antidote
for the bubbles of
fear standing between
us and trying new stuff.
Often the best course
isn’t the most comfortable
one.
Getting a better rate is
just one of the reasons
you’d consider refinancing
- and the hassle or
discomfort - it’s all in
your imagination.
Ultimately, it’s the
structure and the allround
advice that will really
get you ahead.
We don’t miss a trick
at iChoice and won’t
charge you a cent. The
banks pay us to do their
work for them, we’ll land
you a rate you probably
didn’t think was possible
and then, a few of the
banks will offer an enticement
for accepting
a better deal - in cash or
Velocity Points.
Or just stay where you
are, pay more and get no
free professional advice.
Is there really a decision
here?
My amazing support
teams’ effrorts and lateral
thinking is why MPA
Magazine named us
Best Brokerage in NSW
for 2018. And with the
support we get from
TWT readers, were eager
to reciprocate.
Call me for a chat on
0400 900 300 or Victoria,
Alexia, Lyndall or Wendy
on 9743 0000.
Epping Bridge to be widened
The Epping Station Bridge is to be widened.
The bridge widening was jointly
announced yesterday (Tuesday) by
Epping MP Damien Tudehope and
Lane Cove MP Anthony Roberts
who said the project will cost $50
million.
“We’ve heard loud and clear the
community see the road as a pinch
point,” Mr Roberts said.
“Widening the Epping Station
Bridge is also another critical piece
of the infrastructure puzzle in Sydney’s
growing northwest and Epping
Railway Station will be further
improved when the $8.3 billion
Sydney Metro Northwest is completed
next year.”
The bridge widening project will
provide an additional westbound
lane, a central median strip and
wider footpaths over the rail line
near Epping Railway Station.
Mr Tudehope said the widening of
Epping Bridge was one one of his
election promises and he is thrilled
by the announcement.
“I am also grateful to all the residents
who have written to my office
and signed petitions, supporting
me in campaigning for this outcome,”
he said.
Roads Minister Melinda Pavey
said the $50 million dollar project
will be undertaken by Roads and
Maritime Serices and the Department
of Planning and Environment
provide the funding.
For more information visit the
website: www.rms.nsw.gov.au.
WINNERS! 2018 BEST BROKERAGE IN NSW
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