Why use an Australian specialist ?

Why use an Australian specialist?

Access & Choice
Appropriate Advice
Comprehensive Advice

Access & Choice
An Australian Licensed mortgage broker has the flexibility to choose from over 20 local lenders.* With various credit policies and special lender offers from time to time your client will be able to access the greatest breadth of product features, benefits and rate options available for an Australian mortgage holder. As a result your client will have maximum choice amongst available market lenders.

Some examples of available credit policies include up to 95% loan-to-value lending for citizens, and access to large cashout or equity release, for specific purposes. The availability of fixed rate loan products over various terms, interest-only loan products for Buy-to-Let equivalent in Australia, and longer loan terms uninhibited by change of residence.

UK residents and offshore based Australians (as well as all foreign residents and resident Australians) are protected by the Australian National Consumer Credit Protection Act (NCCP Act) where they deal with an Australian licensed mortgage broker. It is illegal to provide mortgage services in the Australian market without a license. The Act ensures all brokers are licensed and monitored by ASIC – the Australian government body responsible for consumer borrowings and financial services oversight and regulation. A licensed broker must:

*Make reasonable inquiries about your financial situation, requirements and objectives
*Take reasonable steps to verify your financial situation; and
*Decide whether the credit contract you are asking for is ‘not unsuitable’ for you.

Clients have recourse options available to them in the event inappropriate advice is provided or appropriate steps are not taken in the formulation of a client’s credit assessment and determination of suitable loan products

Appropriate Advice
Australian property buyers and indeed Australian expats returning home within 5 years may well be financially better off and avoid exchange rate risks by choosing an Australian mortgage from an Australian lender. This could well be the case, despite the attractiveness of a foreign based mortgage, where interest rate differences occurring from time to time between markets appear to make the offshore mortgage a simple choice.

Hence it is appropriate to consider the wider and longer term issues relating to such borrowers and take account of the features and benefits of loan products from various providers, as well as the conditions imposed by offshore as well as local lenders, through using a specialist.

It could well be you can help the client avoid compulsory refinancing out of an offshore loan product, when a client moves between countries. This would help avoid the potential early repayment fees and new loan application costs that occur in this case – which can well outweigh any short term interest rate benefit.

Loans in non-AUD currency create a risk of foreign exchange loss when assessing capital value in Australia, and when combined with AUD rental property income, after the borrower’s return or move, to Australia.

Comprehensive Advice – Why Use Aussie Finance and property?
The most appropriate and/or most tax efficient method to structure and finance a mortgage is not necessarily the cheapest way. Choosing a UK or offshore lender to fund all Australian property mortgages for offshore Australians without reference to the tax implications, currency risks, and without taking into account the future plans of the client and their real alternatives – essentially results in mortgage advice that is limited, narrow, and possibly not within the client’s best interest.

Aussie Finance and Property, a trading style of My Financial Life Pty Ltd, is licensed by ASIC to undertake credit activities in Australia. Australian credit license 392084.
In addition, My Financial Life provides Australian financial services advice as an Authorised Representative of Patron Financial Advice, AFSL 307379. Daniel Shillito, the principal at Aussie finance & property, is a licensed financial adviser, licensed mortgage broker, and CPA.

We can discuss the planning implications, tax impacts, effects on borrowing capacity, and benefits and costs, of any such international purchase or re-mortgage.

In addition, Aussie Finance and Property has greater access: *Aussie Finance & Property has access to more than 20 Australian lenders as well as international banks and offshore finance, including UK based lenders that lend to Australians or non-Australians that want to invest in Australia – these lenders are usually inaccessible to Australian brokers residing in Australia.

In Summary, using an Australian licensed financial adviser, mortgage broker and accountant, with access to both offshore products from organizations such as Lloyds International TSB but also 20+ lenders in Australia means that your clients will receive quality, professional, comprehensive financial advice about how to manage their Australian property in the most optimal and tax effective way.