Smartline Mortgage Brokers Newsletter
 
 
IN THIS ISSUE:
 
 
Charity Profile:
Make a Wish Foundation

Smartline's New South Wales franchisees are helping to realise the wishes of Australia's sick kids, presenting a cheque for $4,000 to the Make-A-Wish Foundation.

The Make-A-Wish Foundation was established in Australia in 1985 and aims to bring magic and joy to children and young people with a life-threatening illness by granting their most cherished wishes.

Terri Unwin, Franchise Owner of Smartline North Rocks, presented the cheque to The Make a Wish Foundation at Smartline's recent NSW State Meeting.

She said as well as touching the lives of ill children across Australia, the Foundation's work extended to their families and friends.

For every home loan Smartline arranges, it makes a donation to various children's charities, including The Make-a-Wish Foundation.

To date, the group has donated well over $250,000 to various worthy charities.
 
Customer Profile:
The Humphries

Seven years into the mortgage on their three bedroom family home in Crafers in Adelaide Hills, self-employed couple the Humphries decided it was time to combine investment savvy with leisure. With the help of Smartline broker Cathy Anderson the couple did just that and invested in a holiday shack on Yorke Peninsula, approximately two hours drive from their home.

'We knew we had built considerable equity in our property but were not sure of exactly what to do with it and how best to use it,' said Leanne Humphries.'Cathy was very thorough and gave us so much information to help us make our investment decision.'

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State-by-State News

A snapshot of the latest mortgage and property industry news and innovations from across Australia.

 

Welcome to the spring issue of Newsline, Smartline's online newsletter bringing you the latest in mortgage news.

There has been a lot of media attention on issues coming out of the US mortgage market, where a number of lenders in the sub prime mortgage market are experiencing an increase in defaults. The sub prime market in the US represents lending to borrowers who do not qualify for conventional loans, however it is becoming evident that over the last couple of years the lending standards in the US market have deteriorated, resulting in some of the losses that are now emerging.

So what does all this mean for Australian mortgage holders? As the financial markets react to the events in the US, the cost of funds for lenders is pushing up, which in turn puts upward pressure on banks to increase the interest rates they charge their clients. A couple of lenders have all ready reacted by increasing their rates slightly above the 0.25% increase from the Reserve Bank of Australia.

However, there is no need for serious concern in Australia, the practices of our lenders on the whole are of a much higher standard than those that are coming to light in the US, and the sub prime market in Australia represents a much smaller portion of the market.

Should you have any concerns regarding your lending, or the broader events in the mortgage market, please feel free to contact me.

I hope you enjoy this quarter's Newsline.

Is it Time for a Home Loan Health Check?

Recent interest rate rises, along with extensive media coverage of the mortgage market issues in the United States, has prompted many Australian mortgage holders to review their current arrangements.

While the home loan or investment loan you have today may have been the right one for you at the time, the landscape is constantly changing.

As well as changes in the interest rate environment, your personal situation, employment, income or goals change, evolve and change over time. Furthermore, the range of diversity of products available in the market continues to change rapidly, with new and innovative products being launched in to the market place.

Stop Press: New Reverse Mortgage Code to Protect Borrower

A new code of conduct launched by the Senior Equity Release Association of Australia (SEQUAL) means borrowers who take out reverse mortgages will never have to pay more than the value of their home.

The code applies to all of SEQUAL's members including Commonwealth Bank of Australia, ABN Amro, BankWest and Australia and New Zealand Banking Group.

Top 10 Tips: Planning for Retirement

It's never too early to start planning for your retirement and long-term financial needs and here, we share ten tips from the Australian Securities and Investment Commission.
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Mortgage Glossary

Land Tax: An annual tax paid to the State Government, calculated
according to the value of the property.

Negative Gearing: When the tax deductions from an investment property exceed the income the property generates and an investor uses this loss to offset against their other taxable income.

Offset Account: A savings account linked to your mortgage to reduce interest payable on the mortgage.

Q&A
With Vicky Monteleone
National Lending Support Manager
Smartline

Q - 'What are the benefits of big banks versus niche lenders?'
A - There are a number of pros and cons associated with both the big banks and
niche lenders.

For some clients, they prefer to have their lending with one of the big banks, because of the greater sense of security this offers.

They also offer a full suite of home loan and financial products – meaning borrowers can package their debts into the one loan or package that can save them interest and fees, while also allowing them to hold all of their banking with the one institution.

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Please note that information in this publication is subject to change without notice.
Smartline assumes no responsibility for any errors, omissions or mistakes in this document.
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