Lending and Leasing**
Home and investment loans
Regardless of whether you're buying your first home, upgrading your home, building your dream home, down-sizing or you want to review your current home loan, SMC Advisers can save you loads of time and money.
Through our team of specialist mortgage brokers we provide the best lending solution by:
• Calculating how much you can borrow, how much deposit you need and if you can afford the repayments.
• Finding the right loan for you based on your personal needs & requirements
• Recommending a range of loans from industry leaders.
• Structuring your loan correctly for tax purposes
• Liaising directly with the lenders and follow up until you move in
• Helping you own your home sooner
Refinancing home and investment loans
Are you getting the best deal on your home loan? That's a question every single home or investment property owner should be asking themselves. Refinancing your home loan could help you:
• Save money
• Repay your loan sooner
• Access features that you don't currently have
• Get the peace of mind that you have one of the most competitive loan products on the market.
Don't have time to be calling around to banks to try and get a better deal? You don't have to – SMC Advisers offers a mortgage broking service and can compare a number of different loan options to best suit your needs.
Vehicle and equipment finance
As a business owner, you know that time and money are limited. The way you pay for your business purchases can have a significant impact on your after-tax profits. Understanding the various types of equipment finance is time consuming, that's why you should let SMC Advisers do the hard-work for you.
SMC Advisers take the time to understand your financial situation and are specialists in structuring finance to make the most of your financial situation. Whether you are buying a car, van, truck, commercial trailer, earthmoving equipment, medical equipment, manufacturing equipment or even fitting our a new premises SMC Advisers can help you!
We specialise in:
• Pre-approved finance, so you can have peace of mind when shopping for your car or equipment
• Fast approvals
• Professional tax advice and tailored recommendations
• Preparation of the loan application & financial statements
• Maximising your depreciation and tax deductions
• Claiming back the GST in your next BAS
Not in business? No worries – SMC Advisers can help you through their consumer car loan services, with industry leading interest rates and friendly professional service.
Business loans and financing
Need a business loan or do you want to purchase a commercial premises, but not sure if you can afford it? SMC can help take the guess-work out of business loans and financing. We can help you decide if you need the money upfront or if you need it to be on-call, help you decide what type of security to offer for the loan (if any) and we can help you weigh up whether a fixed or variable interest rate might be most beneficial for your individual circumstances. SMC Advisers will also review your financial information to ensure the loan is structured correctly to maximise your tax deductions and minimise your expenses.
Depreciation and tax deductions
SMC Advisers offer a full range of financial services and as a result we understand how to structure your situation to maximise your depreciation and tax deductions.
What is depreciation?
As buildings or equipment gets older they starts to wear out, or depreciate. The Australian Taxation Office (ATO) is aware of this and allows individuals and business holders to claim a tax deduction for the declining value of such assets. Depreciation is one of the most forgotten tax deductions, but it can have a huge impact on the bottom line for both investors and people in business. For example, if a business purchases a brand new car and uses it predominately for business purposes, if the finance was structured correctly the business could claim a tax deduction for the decline in value of the vehicle each year until it has no value (based on a formula provided by the ATO). However, if the finance was structured incorrectly the business may miss out on this tax deduction, which could result in them paying more tax.
Preparation of financial application and financial statements
SMC Advisers take all the hassle out of applying for a home loan, investment property loan or car / equipment finance loan because we prepare the application to the bank's standards and follow up until you have obtained an approval. Even better, if SMC Advisers are already your Accountant because we already know your situation and can use that information to help the bank understand it.
Pre-approved finance for peace of mind
SMC Advisers organise home, car and equipment finance for our clients on a daily basis and we know how important it is to have the money ready for when you find that dream home, a low price on a car, or the equipment that is exactly what you want. That's why we highly recommend that you obtain a pre-approval for finance before you go shopping! A pre-approval is the bank giving an indication of your borrowing capacity, before you go shopping giving you peace of mind.
Too often clients call us up when they have already made the purchase and it puts unnecessary pressure on everyone involved, especially themselves. Even worse, is the rare occasion where you don't call SMC at all and you end up with the incorrect finance type and end up paying too much for your finance.
SMC has developed a streamlined process for car, equipment and property loan's, which means we have a super-fast turnaround time for approvals. In some cases we are able to obtain an approval for car finance within 2 hours of your initial phone call, we can obtain loan documents the same day and we can settle your loan the next day – you could be driving your brand new car within 1 day of the test-drive!
Home and Investment Loan's - Frequently Asked Questions
Q. How much can I borrow?
A. The amount you can borrow will primarily depend on:
Your existing level of debt; and
Your level of savings.
Why not check out our Resources page for our "how much can I borrow" calculator or "what can I afford to borrow" calculator
Q. What will my repayments be?
A. Your repayments will primarily depend on:
The interest rate;
The length of the loan;
Whether the loan is principal and interest, or interest only; and
The repayment frequency.
Visit our Resources page for our "P and I / Interest Only" calculator.
Q. What extra costs do I need to account for?
A. Usually the largest expense you will incur when purchasing a property is stamp duty. Go to our resources page for our "Stamp Duty" calculator. You will also need to allow for other costs such as legal expenses, pest & building inspection and registration fees.
Q. How much deposit do I need?
A. In a perfect world lenders prefer you to have a deposit of 20% of the purchase price of the house, plus enough to cover the extra costs mentioned above.
However, in reality most people are not able to save this much money, so lenders will allow you to borrow more but cover themselves by forcing you to buy lenders mortgage insurance. The lenders mortgage insurance is generally payable if you borrow more than 80% of the purchase price of the property and can usually be added to the loan amount. Some lenders will allow you to borrow up to 95% of the value of the property, plus lenders mortgage insurance, which means you would need to save at least 5% of the purchase price plus the extra costs mentioned above.
Q. What's the difference between a fixed rate and variable rate loan?
A. Fixed rate loans lock in the interest rate when the loan is taken out and remains unchanged for the fixed rate term. This means you know exactly what your repayments are each month and they won't change until the fixed rate term ends. A fixed rate loan protects people from rising interest rates. Banks usually offer fixed rate terms of 1 – 5 years and at the end of the fixed rate term you can choose to re-fix it, or allow it become a variable rate loan.
Variable rate loan interest rates have the ability to move up or down at the discretion of the lender. Generally lenders will change their variable rate interest rates when the Reserve Bank of Australia (RBA) make a change to the cash rate, however there are other factors that may affect a banks decision to change their variable interest rate.
Lenders will usually allow you to have a fixed rate loan, a variable rate loan, or a combination loan where part of it is fixed and the rest is variable.
Q. Is there still a First Home Owners Grant?
A. First Home Owner Grant (FHOG) are managed by the State Government for each individual state or territory, so it is different in each state. In New South Wales the FHOG is only for first home buyers who buy or build a brand new property that has never been lived in. Generally the grant is $15,000 (until 01.01.16) for eligible transactions. For more information about FHOG in New South Wales visit http://www.osr.nsw.gov.au/benefits/first_home/
Q. How does SMC Advisers choose the lender it recommends to me?
A. Generally we will hold a meeting with you and establish your needs and wants in a home loan. Once we have established what you require we use specialist lending software to narrow down the search, then we choose a minimum of 3 suitable loans and provide you with a comparison report so you can compare the features and costs of the loan's. If you aren't satisfied with any of the products recommended we are able to recommend further loans until we find one that suits exactly what you are looking for.
Q. What will SMC Advisers home loan service cost me?
A. In most circumstances our service will be at no cost to you. This is because the bank pays us a commission to say thanks for introducing your business to them. There are some circumstances where we may charge a fee, but this will be fully disclosed to you.
If you still don't find what you're looking for give us a call on 02 4984 9707 – we're happy to help you!
** Lending services are authorised by Finconnect (Australia) Pty Ltd ABN 45 122 896 477 Australian Credit Licence No. 385888 a wholly owned subsidiary of Count Financial Limited. SMC Financial Advisers Pty Ltd (ABN 40 100 223 130) trading as 'SMC Advisers' is an Credit Representative of Finconnect.