Mortgage Broker Currumbin
Davies Home Loans can help with loans for almost any Australian Property but we like to focus on the QLD Gold Coast and NSW Northern Rivers areas. Sometimes a story about a particular suburb and particular person can help people understand what makes us different.
As life progresses, people often find that their current home no longer suits their circumstances and they decide it is time to change. This can involve the selling of one home and the purchase of another, or just buying another and keeping the old one as an investment property. We always encourage people to talk to our mortgage broker Currumbin as a research point of contact about 3-6 months before the purchase to allow the implementation of a plan. We think it is easiest to demonstrate this with an example (names have been changed for privacy reasons).
Jack and Jill were in their own home, which they had renovated and added significant value, they wanted to buy another ‘renovator’ but keep the current home as an investment property. They had other investment properties and were quite familiar with the process. Also, they are capable educated people and could have easily researched and achieved an appropriate cost effective loan on their own, but as we don’t charge clients a fee, they chose to have our mortgage broker Currumbin do all the work for them.
Overall there were no problems evident and Jack and Jill envisaged an easy loan. Fortunately they included our Mortgage Broker Currumbin to help. At Davies Home Loans we have extensive experience with many different types of loans and the first thing we identified was potential land tax issues in the future from owning multiple properties. Secondary was that on moving out of the current home so it would become an investment property meant that the lender linked to that home would then increase the interest rate to ‘investment’ rate levels once they changed address.
The first thing our Gold Coast Mortgage Broker did was to gain consent to talk directly to their accountant to check if land tax issues would occur and investigate options. The accountant was quite skilled and immediately saw the need to set up a Trust under which the new property would be purchased. The next thing was to look at options with the current home and lender to reduce future costs. Fortunately we were in the planning stages so we had time to refinance the current loan to more competitive owner occupier rate fixed for 3yrs. This meant that when they moved out, it would be 3 years before the ‘investor’ rate would be applied.
The land tax saving was $4,200 per year, albeit setting up the trust documentation and complying with additional bank rules on trusts incurred costs of $3,000. Overall a small saving the first year with ongoing larger savings. Refinancing saved $1,500 per year, bringing the ongoing annual saving achieved by our mortgage broker Currumbin to $5,700. Over a 30 year loan term, these savings total over $160,000 and the clients didn’t even know they had a problem.