We’ll do all the legwork to find you a great home loan that suits your individual needs. We’ll compare hundreds of products and guide you through the process, saving you time and money. This service is completely free – and doesn’t stop at settlement. We’ll also give you ongoing support and expert tax advice so you can reach your long-term financial goals.
There are hundreds of home loan products available in Australia’s competitive mortgage market. So why limit your options by going direct to a lender? At Spectrum, we’ll compare over 500 products from over 20 different lenders to find you the right mortgage deal. And you won’t pay a cent, because this service is funded entirely by commissions.
We’ll submit your loan application and then keep following through with the lender until you’ve received the funds and your property has settled. We’ll also keep you in the loop every step of the way, so you don’t have to contact us for updates. In the months and years ahead, we’ll check in from time to time, to make sure you’re on top of the loan and still getting the best deal.
As an ethical mortgage broker, we always act in your best interests. This means we take reasonable steps to verify your financial position, and will only recommend loans that are appropriate for your circumstances. We always act in accordance with the NCCP (National Consumer Credit Protection Act).
Spectrum is a full-time member of the Mortgage & Finance Association of Australia (MFAA) and the Australian Financial Complaints Authority (AFCA), and abides by their strict codes of conduct. We work for our clients, not the banks. So we’ll take the time to understand your unique circumstances – and will then find the best loan for your situation.
If you’re a member of the ADF, you may be eligible for home loan subsidies under the Defence Housing Owner Assistance Scheme (DHOAS). At Spectrum, we’re accredited with DHOAS home loan providers, so we can get you a DHOAS loan, if you’re eligible. Check your eligibility for DHOAS by visiting dhoas.gov.au.
A family guarantee loan is when a family member (generally parents) uses the equity in their home as security for your home loan.
A family guarantee loan can help you:
Get you into the property market faster, as less deposit is required
Boost your borrowing power to up to 100% of the purchase price (excluding costs such as stamp duty and legal fees)
Reduce or avoid lender’s mortgage insurance (LMI), saving you thousands of dollars
Maximise the amount you can borrow, so you keep more of your cash
They can limit the guarantee to a specific amount
Then can remove their guarantee at any time (subject to lender approval)
The loan will be in your name, not theirs, so you’ll be responsible for the repayments
That’s not to say there aren’t downsides to family guarantee loans. The biggest is that if you default on the loan, the family member is legally responsible for your debt. They will have to pay back the entire loan amount, plus any interest and fees, and could lose their home.
Sarah and John want to buy a property for $400,000
So they’d need $80,000 for a 20% deposit, plus extra to cover stamp duty, legal fees and other transaction costs
However, they’ve saved only $12,000
They know they can afford the repayments – but their deposit is too small
So they have two options – delay their purchase while they save a bigger deposit or ask a family member to guarantee the loan
Sarah’s parents agree to guarantee the loan, using the equity in their house
This reduces the loan-to-value ratio (LVR) on Sarah and John’s loan to below 80% – saving them more than $8,000 in lender’s mortgage insurance (LMI) premiums
Gearing means borrowing to invest. And the more you can invest, the faster you can build your wealth. Gearing can also improve your tax position – as the interest on your home loan and other investment expenses are tax-deductible.
Jim’s marginal tax rate is 37%. He borrows $400,000 to buy an investment property. The interest rate on the loan is 3.5% p.a. and his investment income is 3.25% p.a. This means Jim’s investment property is negatively geared – it costs him more to hold than he gets in rental income. In Jim’s case, his cashflow shortfall is $630 after tax in the first year.
If we assume Jim’s investment property increased in value by 10% in the first year. That’s a $40,000 gain. So Jim is $39,370 better off (on paper) after taking into account his $630 cashflow shortfall.
|Cost of $400,000 loan at 3.5%||$14,000|
|Investment income at 3.25%||$13,000|
|Pre-tax cashflow shortfall||$1,000|
|Tax deduction at 37%||$370|
|Post-tax cashflow shortfall||$630|
|Depreciation – building & fittings||$7,500|
Lenders treat equity a bit like cash – so they lend you money towards another property without you having to sell your existing one. This is also known as leveraging equity.
Gary has $600,000 worth of equity in his home. He now wants to buy an investment property worth $400,000 as well as $100,000 worth of shares. Rather than sell his home, Gary uses $500,000 of his equity as security to purchase the investments.
As a result, while Gary now has a new mortgage of $520,000 (including $20,000 in government and lender charges), he’s increased the value of his growth assets from $600,000 to $1.1 million. Because Gary’s mortgage is for investment purposes, he can claim 100% of the interest and lender’s fees as tax deductions.