Jono’s Finance & Property Tips

1. Jono’s Finance & PropertyTips

2. Tonight’s Agenda • Latest Finance offerings • Serviceability • Handout • Top 25 tips to payoff your home loan • Why you should use a mortgage broker than going direct to a bank • Tips to buying an investment property

3. Finance Update • ING – (International Netherlands Group) • 95% Lvr – Purchases • Cap LMI above 95% (Lenders Mortgage Insurance) • Good serviceability calculator • Orange Advantage – 100% Offset loan • Special 6.89% variable for loans above $500k • Can borrow up to 85% lvr with no LMI • Saving up to $1699

4. Serviceability • Scenario 1 • Mr & Mrs Jones have the following properties cross securitized with the same bank • O/O $650,000 – Owe $300,000 @ Bank A • Inv $350,000 – Owe $315,000 @ Bank A • Inv $320,000 – Owe $288,000 @ Bank A • The Jones wish to purchase another investment property for $380,000, however Bank A will only lend them an extra $ 350,000, therefore the loan has been declined

5. Solution • A restructure of their current portfolio with the following benefits • O/O $650,000 – Owe $300,000 @ Bank B • Inv $350,000 – Owe $315,000 @ Bank A • Inv $320,000 – Owe $288,000 @ Bank C • The Jones wish to purchase another investment property for $380,000, Bank D will lend them a further $ 650,000, therefore the loan has been Approved • The other benefits include; • All properties are stand alone • Greater servicing flexibility – an increase of $300,000 between Bank A & Bank D