Real life self-employed customers we can help

This is Dave, a real life borrower who achieved his goal with an alternative home loan solution.

Having worked hard to get his business humming, Dave was now in a position to buy his own place. But he hadn’t finalised his tax returns with his accountant so his bank said no to a loan.

How we could help: With an Alt Doc loan from an alternative lender, his goal of owning a home became real.

Most common solutions we can assist self-employed customers with:

Newly self-employed:

  • Minimum 6 month  ABN and GST registered (if applicable)

When last 2 years’ financials are not available

Financial declaration and one alternative document to verify income:

  • Accountant’s letter
  • 6 months’ BAS statements
  • 6 months’ business bank statements

Cash out for business purposes

  • Adverse credit
  • Paid/unpaid defaults
  • Court judgements and writs
  • Discharged bankrupt (one day)
  • ATO debts

PCL Money also regularly helps self-employed clients with:

Investment portfolios

Complex trust structuring

Companies in administration

Full Doc purchase up to 95% LVR or

Alt Doc purchase up to 85% LVR

Unlimited debt consolidation

 

Contact PCL Money today

email: enquiries@pclmoney.com.au

ph: 02 4226 9977

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Real life self-employed customers we can help

This is Elsa, a real life borrower who achieved her goal with an alternative home loan solution.

Elsa had worked really hard to get her personal training business up and running. Things were going well and she was feeling ready to buy her own place. But because she’d only been in business 6 months, her bank said no to a loan.

How we could help:

With an Alt Doc loan from an alternative lender, her dream of buying her own home suddenly became a reality.

Most common solutions we can assist self-employed customers with:

Newly self-employed:

  • Minimum 6 month ABN and GST registered (if applicable)

When last 2 years’ financials are not available:

  • Financial declaration and one alternative document to verify income:
  • Accountant’s letter
  • 6 months’ BAS statements
  • 6 months’ business bank statements

Cash out for business purposes

Adverse credit:

• Paid/unpaid defaults

• Court judgements and writs

• Discharged bankrupt (one day)

• ATO debts

 

PCL Money also regularly helps self-employed clients with:

  1. Investment portfolios
  2. Complex trust structuring
  3. Companies in administration
  4. Full Doc purchase up to 95% LVR or
  5. Alt Doc purchase up to 85% LVR
  6. Unlimited debt consolidation

 

Contact PCL Money

email: enquiries@pclmoney.com.au

ph: 02 4226 9977

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Are you paying too much for your business finance or home mortgage?

In Australia we have a competitive finance industry and have a rich variety of finance deals available from many different lenders.

Are you confident that you have found the best loan deal on the market? You could well be paying more than you need to for your business or home loan.

Many Australian homes and business are paying more interest than they need to because they are not prepared to re-finance.

Some reasons why some people are not prepared to re-finance include a misplaced loyalty to their current bank, the idea that it will take a lot of effort to switch lenders and the fear of talking about their finances.

With so many  lenders in the industry and different loan offerings on the market it is hard to be sure that  you are getting the best deal available that fits your requirements.

A finance broker such as PCL Money www.pclmomey.com.au and Illawarra Home Loans www.ihl.com.au are not locked in with any one financial institution and are able to source the best loans deals available.

PCL Money and Illawarra Home Loans negotiate with a range of lending institutions and are able to offer their clients the best loan deals on the market for their needs.

This can save you a huge amount of time trying to talk to lending institutions detailing your situation and arranging to get quotes.

PCL Money and Illawarra Home Loans have recently expanded their panel of lenders so they can offer their clients the best possible choice of business and personal loan options available.

Whether you are seeking to re-finance your existing borrowings for a better interest rate and conditions, or seeking a new loan, call PCL Money and Illawarra Home Loans on 02 4226 9977

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Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.

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The Reserve Bank has kept its hold of interest rates at 1.5 per cent

 

The RBA has decided to keep interest rates at record low for the 25th consecutive month.

It stated that it is not concerned by rising home loan rates. “Some lenders have increased mortgage rates by small amounts, although the average mortgage rate paid is lower than a year ago”

The ASX cash rate futures market has had priced in a ‘no change’ and a the likelihood of a rate hike through to the end of 2019 is seen as almost non-existent.

The last time that the RBA cut rates was in August 2016 and the last rate rise was in November 2010.

The RBA has also downgraded its short-term inflation forecast to 1.75 per cent.

It remained upbeat about that economy and stated that GDP  growth has been “above trend.”

This is despite the fact that household income has been growing slowly and that household debt levels are high. The drought has also led to difficult conditions in parts of the farm sector.

The RBA also did not express concern with some of the out-of-cycle rate rises emerging in the home lending sector.

“Money-market interest rates are higher than they were at the start of the year, although they have declined somewhat since the end of June,” Dr Lowe, the Governor of the RBA, said.

“Some lenders have increased mortgage rates by small amounts, although the average mortgage rate paid is lower than a year ago.”

If you are looking to buy a new home or re-finance existing borrowings then have a chat to the experts at PCL Money www.pclmoney.com.au and Illawarra Home Loans www.ihl.com.au

They have recently expanded their panel of lenders so they can offer their clients the best possible choice of loan options available.

This can save you a huge amount of time trying to talk to lending institutions detailing your situation and arranging to get quotes.

You can visit their website or call 02 4226 9977 for a confidential discussion – you will discover that your needs are their most important consideration.

Since 1987 they have been helping Australian Families and Businesses achieve their financial goals and established a reputation as one of  the nation’s premiere finance brokers.

 

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Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.

 

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Mortgage Brokers increase competition and choice, driving lower interest rates

A Deloitte Access Economics report released 24 July, 2018 has found that mortgage brokers drive more competitive mortgage pricing, provide valuable services and greater choice for consumers.

The average mortgage broker has access to 34 different home loan lenders, and of these they use an average of 10 lenders to settle loans based on their customer’s choice, financial circumstances, needs and preferences.

Mortgage brokers drive competition in the lending market by providing access to a wide range of lenders – not just the major banks or their affiliates – helping to drive down interest rates for all Australian home buyers and investors.

The report, titled The Value of Mortgage Broking, which was commissioned by the Mortgage Broking Industry Group (MBIG), revealed that more than half of all home loans each year are originated by mortgage brokers – and this number continues to grow.

In addition, the market share of broker-originated loans for lenders who are not major banks or their affiliates has increased from 21.4 per cent to 27.9 per cent in just four years, highlighting the competition being driven by brokers.

Mortgage & Finance Association of Australia CEO, Mike Felton, said that the report provided important insight into the industry and the value it provides to everyday Australian homebuyers – particularly in helping to drive lower interest rates for all consumers, not only those who use a broker.

“The mortgage broker channel has made home loan financing cheaper for all Australians. While not only providing homebuyers with access to more residential lending options, mortgage brokers have contributed to a fall in net interest margins of more than three percentage points over the past 30 years,” Mr Felton said.

While the financial sector has been under significant scrutiny from regulators, mortgage brokers continue to be focused and dependent on building strong relationships with customers. These existing relationships, both directly and indirectly, make up 70 per cent of mortgage broker business, giving brokers a strong incentive to provide a competitive and valuable service.

Finance Brokers Association of Australia Executive Director, Peter White, said mortgage brokers were committed to providing exceptional customer service that included sound advice, lower search costs, greater competition and a diversity of choice.

“Customer satisfaction is critical for our industry. With so much referral and return business, brokers know they must do everything they can to help their customers secure finance that works for them. And, it’s clear that this is happening – more than 90 per cent of homebuyers are happy with their mortgage broker’s performance,” Mr White said.

“Beyond this dedication to serving their customers, mortgage brokers are experienced professionals. The report found the average broker has 13.8 years’ industry experience, which speaks to the quality of service and value that brokers provide their customers.”

The report also highlighted the significant value the channel provides for rural and regional Australians. With customers in rural and regional areas making up three in 10 mortgages originated by mortgage brokers, brokers provide access to a range of lenders in places where there may be few or no bank branches.

The Value of Mortgage Broking report was commissioned by MBIG to provide Australians with greater transparency into the role mortgage brokers play in the market, and the value they provide.

Below are some of the key highlights on the mortgage broker industry from the Deloitte report.

• The mortgage broker channel drives competition among lenders, which helps reduce interest rates.

• More than 90 per cent of mortgage broker customers are happy with the service they receive.

• Half of all home loans are originated by mortgage brokers, and this number continues to grow.

• Mortgage brokers are improving access to lenders that are not major banks or their affiliates.

• The four major banks account for just 50.7 per cent of broker-originated loans.

• An average mortgage broker has 13.8 years’ industry experience.

• Brokers that are sole traders earn an average income after costs and before tax of $86,417.

• The mortgage broking industry supports more than 27,000 full-time equivalent jobs.

• The mortgage broking industry contributes $2.9 billion to the Australian economy each year.

• Sixty-four per cent of brokers have education and training above their required qualifications.

The Mortgage Broking Industry Group (MBIG) comprises AFG, Astute Financial, Aussie, Choice Aggregration, Connective, FAST, Finance Brokers Association of Australia, Loan Market, Mortgage & Finance Association of Australia, Mortgage Choice, National Mortgage Brokers, PLAN Australia and Smartline.

The full Deloitte Access Economics report, The Value of Mortgage Broking, can be accessed at https://www2.deloitte.com/au/en/pages/economics/articles/value-mortgage-broking.html

by FBAA | Jul 24, 2018 | Media |

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Research reveals high satisfaction with mortgage brokers

New independent research has revealed most people who have sourced mortgages through brokers are satisfied with almost every aspect of the transaction.

The Finance Brokers Association of Australia (FBAA) commissioned the research project through finance industry researchers MyNextAdvice to gauge the level of satisfaction with clients who had settled on mortgages obtained through FBAA members.

The research took into account responses from 2049 clients who had settled loans, on a range of key performance indicators including broker-client relationship and ease of doing business.

FBAA executive director Peter White said the results indicate brokers are doing the right thing by their clients. “Overall confidence with the brokers relevant to this research was 95 per cent, and the same percentage said brokers were easy to do business with.”

In other findings:

  • 94 per cent were happy with their broker’s knowledge and competency.
  • 93 per cent agreed their broker had their clients interest at heart.
  • 93.6 per cent found their broker understood the borrowers needs, objectives and financial situation, and
  • 92.1 per cent were satisfied with the strength of the broker-client relationship.

The depth in the sentiment came from the many comments that clients volunteered on their survey forms. A high proportion said they had received excellent or fantastic service.

One respondent seemed typical in his remarks. “Highly recommended, excellent service, quick response, excellent savings and results. Highly recommended to friends and family who have said the same thing. A+”

Mr White said FBAA members were clearly looking after the individual needs of their clients. “While these results are good they are not perfect.

“There is always room to improve but when we see the issues in the royal commission we know the broker industry is best in breed, and the objections raised by the productivity commissioner are simply not based in fact or competent research.”

by FBAA | Sep 18, 2018 |

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Looking for financial solutions that work for your business?

PCL Money offers a personalised service and professional staff which ensures that you will you get the best financial deal possible for your business needs.

We take time to understand the nature of your operations and suggest packages that save you time & money.

Our comprehensive range of products & services means you can consolidate your finances with an institution that can meet your needs.

It doesn’t matter if you are buying or expanding a business, participating in management buy-outs, preparing shareholder exits, or on a path to merger an/or acquisition or undergoing inter-generational change,

STOP PRESS: PCL Money currently has a 3.79% 3 years fixed rate up to $500,000 and you can refinance business debt at this rate.

Call us today on 02 4226 9977. PCL Money is a market leading provider of financial services to businesses of all sizes.

Posted in Uncategorized

Should you use a bank or a finance broker?

The banking royal commission has drawn attention to some serious problems between the banks and their customers. Evidence to the Royal Commission has shown patterns of illegal behaviour by financial institutions.

Last month the corporate regulator ASIC revealed banks and others in the financial services sector would have to refund up to $850 million that had been taken from customers without any service being rendered.

This is in spite of the fact that, according to David R Gallagher a senior professor of finance at University of Wollongong,  Australia has genuine world-class financial regulators.

But Gallagher does point out that the financial advice industry has long had issues of educational standards and professional proficiency.

With the banks being accused of taking $850 million without providing these services it is no wonder that more and more people are turning to finance brokers to satisfy their requirements.

A finance broker negotiates with credit providers on your behalf to arrange loans. A mortgage broker is simply a finance broker that specialises in home loans.

There is a growing perception that a finance broker may give better advice than a bank because a finance broker such as PCL Money www.pclmoney.com.au is not locked in with any one financial institution.

PCL Money have recently expanded their panel of lenders and are able to shop around for the most competitive finance deals on the market that can best suit their clients’ needs.

With rising house prices finance brokers are seen as possibly being a way of borrowing more as they have the potential to get a better interest rate than many of the big banks.

Research by Roy Morgan reveals that ‘Millennials’ (anyone born between 1976 and 1990) are more likely than any other age group to go through a finance broker rather than directly through a bank.

The research found that 42.5 per cent of Millennials with a mortgage five-years old or less had used a mortgage broker – a far higher proportion than any other age group.

One reason for this is that Millennials have grown up at a time when mortgage brokers were always there and so that they are seen as a very familiar way of acquiring a home loan.

37 per cent of people in the next generation bracket, ‘Generation X’ (anyone born between 1961 and 1995) that had obtained with mortgages had used a mortgage broker.

The figures are less for the older generations. Just over a quarter of Baby-Boomers (born between 1946-1960) had acquired their mortgage through a mortgage broker, while just over a fifth of those born before 1946 used a broker.

Older generations tended to be under the illusion that that if you deposit your money with a bank when the time comes to seek a mortgage the bank will be inclined to grant you a loan to reward your loyalty.

Whether you are after a home loan home loan, business finance or seeking to re-finance your existing loans at a better interest rate,  call PCL Money on 02 4226 9977  for a confidential discussion.

 

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Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.

 

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Should you get a variable or fixed rate home loan?

 

When you take out a home loan, you normally choose between a fixed interest rate or variable interest rate.

With a fixed interest rate home loan your interest rate is locked in for a certain period. For example it could be over 5 years. This means that your loan repayments will remain the same over the 5 year term.

So fixing your home loan does make budgeting easier because you know exactly what you’re repayments are going to be. This helps you to plan and set financial goals.

Any increases in interest rates will not affect you. However, any interest rate decreases will not apply to you. You won’t benefit from a drop in interest rates if you are on a fixed rate.

Other considerations include that fact that additional loan repayments are often not allowed with fixed rate loans. A redraw facility may not be offered on a fixed rate loan.

A fixed rate may not be the best option if you are thinking about selling your home or want the freedom to switch home loans if you find a better deal from another lending provider.

With a variable rate home loan your interest rate will move with changes to market interest rates so the interest rate will likely rise or fall over the term of your loan.

This means that your repayments will vary as the rate changes.

Some of the considerations with a variable rate home loan include that fact that you can make extra repayments, often at no extra cost, which saves you interest and helps you to pay off your loan sooner.

A variable rate home loan may have features which suit you such as unlimited redraws on any additional repayments or the ability to save on interest by setting up an offset account.

Variable rate loans are usually easier and cheaper to switch loans to another lending provider if you find a better deal.

Budgeting is harder with a variable rate because loan repayments will increase if there is a rise in interest rates. So if you aren’t prepared for a rate rise you may have trouble keeping up with repayments.

In order to get the best information for your circumstances, it can pay you to have a talk to an experienced finance broker such as PCL Money www.pclmoney.com.au who have been in the industry since 1987.

PCL Money sources loans from a variety of lenders which mean that they are not locked in with any one financial institution but can shop around for the best loan deals on the market for their clients.

With a finance broker such as PCL Money you do not pay any extra hidden commissions. They are often able to source more attractive loans for their clients than their existing bank can offer them.

PCL Money can often provide you with less expensive finance options than the big banks as well as the ability to source loans that have the features and flexibility that best suits your needs.

With over 30 years experience in the finance industry PCL Money can give you expert guidance in the best loan packages for your circumstances whether fixed or variable.

Ask PCL Money about the option to of having a part fixed and part variable interest loan. This is called a split loan and allows you to manage some of the risks of interest rate rises while still being able to make extra repayments.

There’s generally no limit to the way you can split a loan between variable and fixed. You can allocate the funds 50/50 or 20/80 – the decision is up to you.

Whatever loan facility you decide to take out, it needs to be competitive and to work for you.  PCL Money have expanded their panel of lenders and can now offer their clients a much bigger choice.

For 30 years PCL Money has been helping businesses and families achieve financial success. You will find that your needs are there most important consideration.

For friendly and professional service with expert guidance on the best loan deals that are currently available on the market contact PCL Money at pclmoney.com.au or call us  02 4226 9977.

 

 

Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.

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Westpac has just announced that it will increase its variable mortgage rates.

It is the first of the big four banks to raise interest rates for all its variable home loans this year, although many smaller banks had already moved to higher rates to ‘offset higher costs’.

Scott Morrison the new prime minister says  people who are unhappy with their bank’s decision to raise mortgage rates should consider switching to another loan provider .

He encourages unhappy customers to vote with their feet, saying competition is important to a strong and accountable banking and finance system.

Money is a commodity. The money you get from one lending institution is the same as the money you get from another.

In theory, if your lender puts their prices up, customers should shop around to get a more competitive loan. The problem is, many people don’t.

Half of Australia’s banking customers still bank with their first-ever bank.  This is part of the reason why they control more than 80 per cent of the mortgage market.

According to the Sydney Morning Herald (2 August 2018 ) only one in three customers have thought about switching in the last two years despite saving an average of $90 a month on a home loan by shopping around.

If you have an existing mortgage or seeking to borrow money then it can be a bid advantage to use a finance broker such as PCL money www.pclmoney.com.au.

You do not pay any extra hidden commissions and will often be presented with a cheaper interest rate and more flexible loan options.

PCL Money sources loans from a variety of lenders and is able to offer their clients the best loan facilities and deals available on the market.

So with a finance broker such as PCL Money broker not only are there no extra hidden commissions but also they can often present you with a loan facility that is cheaper and better suits your needs.

This means that PCL Money can often obtain finance for their clients at a more competitive rate than what their existing bank will offer them and with more advantageous terms and conditions.

With interest rates also on the rise overseas many Australians are considering changing to fixed interest rate loans which means that they will be protected from interest rate rises in the immediate future.

PCL Money is one of the county’s most experienced finance brokers and have been helping Australian families and businesses with competitive loans products since 1987.

PCL Money can help you with commercial business loans, residential mortgages, vehicle leasing, equipment  finance and their expert knowledge of the industry often means that they can help clients who have had their loans applications rejected by the big banks.

For a confidential discussion about your lending  options and the best loan products that are on the market contact the friendly team at PCL Money on 02 4426 99 77 or visit the website at www.pclmoney.com.au

Please note that the above is general financial information only and is not intended as personal financial advice for which you should contact a licensed financial professional.

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