Needs Analysis

Q1: What are the preminary reasons for seeking credit or the reasons of an existing contract?

For example: purchase home, buy land, building, investment property, refinance, renovate, relocation, debt consolidation, study, holiday, car, boat, extra cash, etc

Q2: Term (No of years) of Credit Sought?

Q3(a): If you are refinancing or consolidating debts, please provide details of the debts that are being refinanced or consolidated and the resulting benefit to you.

Q3(b): If your current loan(s) are fixed rate loans, what is the total break cost including admin fee you have received from your existing lender(s)?

Q4: If you are purchasing property, how long are you looking to retain the property for? Please provide reasons below.

Your preferred Loan Options will be discussed at length during our LOAN INTERVIEW to ascertain your preferred options and your in depth understanding of these options are in line with your needs and requirements, and there is no conflicting preferences and options in order to structure your loan options and preferences in your BEST INTERESTS based on your current financial situation, circumstances to best suit your short term goals and long term objectives. (Please refer to the FACT Sheets attached in our email for your understanding of the various loan options which will also be discussed and explained to you in our LOAN INTERVIEW).

2(A) LOAN TYPE

Trying to predict home loan interest rates can be a risky business, but in effect, every homeowner is doing this whether they decide on a variable interest rate or fixed. Home loans depend on your individual circumstances, needs and objectives, financial goals, preferences, attitudes and motivations.

If you’re new to the market or worried about interest rates going up sooner rather than later, then fixing all or a portion of your loan could be your strategy.

If you want certainty of the repayment and are more comfortable to know what the exact repayment will be for a period of time (fixed rate period) during your loan term, you may decide to fix the entire or portion of your loan.

If you’re more confident with interest rates and are happy to be paying what the great majority of other lenders are paying (relatively speaking), you may find a variable rate home loan is more suited to your needs.

In general, no one can predict or guarantee if the interest rates will rise or fall. You can not rely on the lender, broker or anyone else involved in arranging the loan to advise you, or expect any of them or any of their employees or representatives to manage your interest rate exposure. If you enter into a fixed rate loan for a fixed rate period you will not have the benefit of a lower interest rate if your lender's variable interest rate falls during that period or the lender's new fixed rates offered later during that period are lower. Where you have a fixed interest rate loan, you may be required to pay a break cost to the lender if you repay your ahead of time any amount in excess of the 'prepayment threshold' during the fixed interest rate period OR you switch to another product, interest rate or repayment type.

Some of the other considerations you should give are: Is the security (the property) likely to be sold during the fixed rate period? If you are planning to sell the home or investment property; you may end up paying out the loan in full and when the loan is paid out in full the lender is likely to charge you the break cost.

Do you expect large amounts of funds, windfall of money due to the financial gain or sale of assets or inheritance etc. and do you want to substantially reduce your loan balance or entirely pay out the home loan in full? If you pay out the home loan in full or substantially reduce the loan balance more than allowable additional repayments (generally $5000 to $1000 per year maximum) during the fixed interest rate period, you will be required to pay the break cost.

Are you refinancing your current home loan which has a linked offset account and the NET loan balance after considering the offset account balance is considerably low which you may end up paying off in a relatively short period of time, you should not proceed with fixed rate loan option unless there is an option to link offset account and/or unlimited redraw without any penalty or fees.

2(B) REPAYMENT TYPE

Differences between P&I repayment and IO repayment Generally, when you make a loan repayment, your repayment pays down some of the principal balance as well as the interest accrued. This is known as principal and interest (P&I) repayment. However, you may be able to choose to make interest only (IO) repayments for a specific period, so you’re only paying the interest charged. This means your repayments during that period will be lower than principal and interest repayments. Because you eventually have to repay the principal balance, this interest only period is always limited. You need to consider your financial situation carefully to plan for the end of your interest only period, when you switch to principal and interest repayments, as your repayment amount will be higher. The key differences are summarised in the table below: (P&I)This means you will be paying down your principal balance (as well as interest it accrues) from your first repayment. (IO)You're not reducing the principal balance which interest continues to be calculated on during this period. This may mean paying more interest over the life of the loan.

(P&I)You could pay less interest over the life of the loan as your principal balance will be reduced by each repayment. (IO)Your minimum repayments will be lower during the interest only period as you're not repaying the principal balance.

(P&I)Generally have lower interest rates, but as interest rates may change, it's important to check the current interest rates on loan products with P&I repayments. (IO)When your interest only period ends your repayments are likely to be higher, as you’ll need to start paying more in order to pay back the principal balance and interest, within the term initially set for your loan. 

(P&I)Principal and Interest repayments may suit for the owner-occupied home loans where the interest expenses are not tax deductible and the homeowners start building equity in their home from the start of the loan term. (IO)Interest only repayments may better suit some customers' investment objectives, taking into account their particular tax and investment arrangements. 

(P&I)The cashflow (The cash position at the end of the month) is lower because you are paying higher repayment as you are paying the principal and interest both. (IO)The cashflow (The cash position at the end of the month) is higher because you are paying less repayment as you are paying only the interest. 

(P&I)Repayments cover loan principal and interest so that the loan is repaid in full by the end of the loan term, you could pay less interest over the life of the loan when compared to a loan which features a period of interest only repayments, Interest rates on principal and interest repayments are generally lower than interest only. (IO)Allows smaller payments during the interest only period enabling:Higher cash on hand for other purposes,Flexibility to manage cash flow,Smaller initial payments on investment home loans may serve a tax purpose. 

(P&I)The P&I repayments may be important to some for the one or more of these reasons: 1) Minimise interest paid over the life of the loan 2) Higher lending limit (because you start paying off loan from 1st repayment and you use full loan term to pay out the loan and hence you may be eligible for the higher loan amount than if you were to make IO repayment for some time) 3) Lower deposit required (P&I loan can be higher loan to value ratio than IO loan, for example the P&I loan can be up to 95% LVR while the same lender may restrict the IO loan to 90% LVR) 4) Build up equity from the start (The equity is build up from the start because your outstanding loan balance is reduced with your very first repayment). (IO)The IO repayments may be important to some for the various reasons: 1)Accommodate temporary reduction in income (e.g. parental leave, changing circumstances) 2) Accommodate anticipated non-recurring expense item (e.g. education, renovation/construction, furniture) 3) Variable and unpredictable income 4) Recommendation provided by an independent financial advisor/accountant, Taxation or accounting reasons (no tax advice is being given), including: Release funds for investment purposes (e.g. shares, investment property, super contributions) 5) Priority could be paying off non-deductible debts (the proposed loan could be for investment purposes) 6) Plan to convert the current owner-occupied property to an investment property in the future(maintain future tax deductibility)

2(C) LOAN FEATURES

Please answer key questions and select required loan features for all proposed loan accounts (OO & INV both)

Personal Details

APPLICANT 1

APPLICANT 2

APPLICANT 1

APPLICANT 2

APPLICANT 1

Current Employment Details

Previous Employment Details

APPLICANT 2

Current Employment Details

Previous Employment Details

Assets & Liabilities

Home Contents

Life Insurance

Over Draft

Shares and managed funds

Declaration of Living Expenses

2a. Home Phone & Internet

2b. Mobile Phone 1

2c. Mobile Phone 2

2d. Netflix

2e. Foxtel

3a. Council Rates

3b. Water Rates

3c. Electricity

3d. Gas

4a. Council rate notice - IP1

4b. Water rate - IP1

4c. Council rate notice - IP2

4d. Water rate - IP2

4e. Strata management fee - IP1

4f. Strata management fee - IP2

5a. Motor Vehicle Insurance 1- Toyota

5b. Motor Vehicle Insurance 2-Mitsubishi

5c. Private Health Insurance/Ambulance

5d. Life Insurance

5e. Income Protection Insurance

5f. Building Insurance-Investment Properties

5g. Property Building insurance (Owner Occupied property)

6a. Motor Vehicle - CTP Insurance

6b. Motor Vehicle - Registration

6c. Motor Vehicle - Fuel

6d. Toll charges

6e. Public Transport-Applicant 1

6f. Public Transport-Applicant 2

6g. Second Motor Vehicle-CTP Insurance

6h. Second Motor Vehicle-Registration

6i. Second Motor Vehicle - Fuel

7a. School fee

7b. Tuition(s)/Kids' activities

7c. Childcare

7d. Before & After School Care

List of Documents

This is a comprehensive list of documents. Some of the documents may NOT be appplicable in your situation.

(1) For PAYG Income Applicants

Two latest payslips for each applicant (consecutive, computer generated payslips with ABN/ACN number of employers)
and
PAYG summary/Income Statement for last financial year (1 Jul 2019-30 June 2020) for each applicant.
(You may require to download the Income Statements from MyGov online account. Please contact us if you require any further information.)

(1A) For Self Employed Applicants (ONLY IF APPLICABLE)

1. Individual Tax Returns for last 2 financial years (e.g. 2019 and 2020)

2. Notice of Tax Assessment from ATO for individuals for last 2 financial years (e.g. 2019 and 2020)

3. If Company , Trust or Partnership structure - Company / Trust or Partnership Tax returns for last 2 financial years (e.g. 2019 and 2020)

4. If Company, Trust or Partnership structure - Company, Trust or Partnership financials for last 2 years (e.g. 2019 and 2020)

5. For any Company , Trust or Partnership structure where the Company , Trust or Partnership income is also to be considered for the finance application being applied for - all debts e.g. car loan / asset finance in the entity’s name must be disclosed and to be expensed - last 6 months bank statements for all such debts are required.

(2) For Existing Rental Income

Last Three months of rental income statements from licensed real estate agent and/or current copy of the lease agreement.

(3) For unsecured liabilities - Credit Cards, Personal Loans, Car Loans, Store Cards, HECS etc.

Three months of statements and overlapping transactions for all credit cards, personal loans, car loans, store cards, HECS etc.
(All credit card accounts - last 3 months of transactions/statements are required including any inactive card. Overlapping transactions are also required from the last transaction date of the last statement to date. For example, last transaction date 28/12/2019 for the last statement period 05/12/2019 to 04/01/2020-the transactions from 28/12/2019 to date you download the transactions are required. For overlapping transactions, you may use google chrome browser, Cntrl+P command and save as PDF. Please contact us for any assistance)

(4) For any existing home loan/investment loan/line of credit etc.

Last Six months of statements and overlapping transactions for any existing home loan/investment loan account

(5) For Salary Accounts, Expense Accounts and other Transaction Accounts etc.

Last Three months of statements and overlapping transactions showing all salary, expense and transaction accounts
(For overlapping transactions, you may use google chrome browser, Cntrl+P command and save as PDF. Please contact us for any assistance)

(6a) For Saving Accounts

Last Six months of statements and overlapping transactions showing genuine saving

(6b) If you do not have genuine savings

Signed and Dated copy of the Non-refundable gift letter from the donor(s)

(6c) If you have been renting currently

Rental Ledger of the property you have rented for last 1-2 years, Please request this document from your leasing Real Estate agent

(7a) For any existing property/real estate (home or investment)

Council Rate Notice for any existing real estate property

(7b) If you buying an established property or land

Fully signed and executes Contract of Sale, Copy of the freceipt for the deposit paid, Contact detail (Name, Contact No and Email address) of the person for Valuer to access the property/land, Contact detail of your solicitor/cpnveyancer (Name, Contact No and Email)

(8) Identity Verification documents (2 Photo ID documents)

Copy of Driver's Licence for each applicant
and
Australian/Overseas Passport for each applicant For overseas passport holders, copy of the current visa downloaded in the last 1 month from VEVO for Visa Holders.