The Weekly Times - TWT - 22 August 2018

18 THE WEEKLY TIMES Wednesday 22 August, 2018
realeSTaTe
Better rates on uncompetitive investment loans
One of my biggest challenges
is getting the best available rate
for clients who are loyalists of
their existing bank.
Here's a strategy I'm quite sure other brokers
wouldn't have thought of - but the
iChoice team's all over it.
Barnaby and Sally love Westpac, where they
have a home loan and an investment loan, but
know their interest rates are no longer competitive,
especially the rate on their investment
loan which is well over 4%.
They turned to us but made it clear they
don't want to leave Westpac and had all their
direct debits coming out of their offset accounts,
love their credit cards and to date four
out of five clients haven't bothered getting a
broker to shop around for them.
We discussed switching his loans to CBA,
mainly for their market-leading two-year investment
rate of 3.95%, collecting a cool
$2,000 refinance rebate which is on offer at
the moment.
But they were still reluctant.
Staying at Westpac was just so convenient.
Refinancing didn't tickle their fancy, even
if it saved them a few grand every year.We
told them how they could get ahead without
changing banks.
The strategy exploits the fact that a couple
of banks will extend 'owner-occupied' rates to
investment loans, as long as the customer's
owner-occupied property can be taken as security.
Hardly anyone knows this - but now TWT
readers do, along with those they tell.Of key
importance here is: What makes a loan tax deductible
is purely its original purpose.
We refinanced their investment loan, using
his home as the security, at 3.59%!!We left
Jason and his award-winning iChoice team, excited
that Commonwealth Bank's offering $2,000 to new-tobank
clients. Not bad if you want to lock in your investment
loan at 3.99%.
The Barefoot
Broker
with Jason Khoury
their small home loan at Westpac, also using
our iChoice persuasiveness to get the
rate on that adjusted to 3.59%.
The trick here is that we substituted the
security, so that their home loan is now secured
by their investment property.
This loan remains at the 'owner-occupied'
rate, since Westpac - and most other
banks - classify and price loans based on
purpose, rather than what's being used as
collateral.
Barnaby and Sally have saved a whopping
1.10% on their $1.2m investment
loan, so they're better off by $13,200 per
annum and still get to use the same Westpac
offset account they've had for years,
attached to their home loan, which hasn't
at all moved.
They also have the option of switching
their home loan to a 3.59% rate and because
they have enough equity in it, we can
leave the investment property liquid (unencumbered).
iChoice tip: there's no need to offer banks
more collateral than they need.Where
iChoice adds most value for clients is with
'all-round' finance advice. I'm an educated
financial advisor, but specialise in lending,
so all my advice comes at no charge.
So here's something to keep in mind.
If you're living in your own home, you
shouldn't pay down the balance
of the loan more than
you're contracted obligated
to, just in case your home
becomes a future investment
property down the
track.
Nobody should make
this mistake. Embrace dual
offset accounts and get
the best of both worlds.If
you think I'm talking about
something that might be relevant
to your own circumstances,
give me a buzz on
0400 900 300.
Spacious family home in Epping
Betty Ockerlander of
McGrath Epping was recently
nominated as Local
Business Person of
the Year in the Northern
District area.
Betty sold both 33 and
35 Woodvale Avenue North
Epping on 4 Aug with great
results above the reserve.
With three bidders interested,
over 100 bids were
made over both properties.
33 Woodvale is a knockdown
and sold for $1.07m
and 35 Woodvale Avenue
sold for $1.5m, to a local
resident with possible redevelopment
in the future.
Both properties jointly had
three lot subdivision potential
on 1985sqm, which
caught the attention of developers.
Betty is currently marketing
17 Bulkira Road,
Epping (pictured) a beautiful
double-brick with classic
facade family residence
with multiple living spaces.
Set in a peaceful east side
address on a 1,005 sqm
block with 20m frontage,
it is in the coveted Epping
Boys High School and
Cheltenham Girls’ High
School catchments.
Highlights include the
vast family/dining room
and a gourmet gas kitchen
with wide stainless Euro
oven, island bench and
suspended lighting. Sets
of French doors flow to
timber entertaining decks
that gaze over private level
lawns and a sunken heated
pool. Enriched with high
ornate ceilings, leadlight
and timber fretwork, this
unique home also features
a master bedroom with an
ensuite and walk-in robe
plus the comforts of air
conditioning, gas heating
points and ample parking
with side access.
“This is one of the most
versatile properties we
have had in Epping in recent
years. A huge quarter
acre block with the home
extended to suit the northerly
aspect on all the living
areas and great bedroom
and living separation for
teenage or dual family living,”
Betty Ockerlandder
said
Auction Saturday 8 September
2.15pm, View Saturday
1.45pm - 2.15pm.
Contact Betty on 0408
505 080 or Omid Sayehban
on 0406 658 788 for
further information.
WINNERS! 2018 BEST BROKERAGE IN NSW
MPA MAGAZINE