We meet at a time and place that suits you. We do the legwork of comparing all the rates and features of hundreds of loans – for free. We guide you through the process to settlement. We’re more than just home loans though – we offer tax/cashflow advice and long-term support to help you achieve your goals.
Where banks and specialist lenders will generally only use their own products – Spectrum is able to consider options from over 20 lenders (and 500+ products). You benefit from our research and maintaining knowledge of new and changing products. We can help you select a financial solution, that fits your particular situation. And the good news is you will get the same loan terms, conditions and interest rate as if you went directly to the same lender.
We submit the application to the chosen lender, and follow-through until the loan has settled and you have received the funds. We then check in from time to time to see how you’re progressing with the loan repayments.
In accordance with the NCCP Act we must comply with specific legislation. Our legal obligations require us to conduct reasonable investigation with respect to your requirements and objectives, your financial position and to verify your financial circumstances. We will then conduct an assessment using this information to ensure the credit provided is appropriate for your circumstances.
Spectrum abides by a strict code of conduct in order to maintain accreditations with various industry organisations. We work for you, our customer, and not the lenders.
Spectrum is a full member of the Mortgage and Finance Association of Australia (MFAA) and the Credit and Investments Ombudsman (CIO).
By law we are required to have a complaint resolution process in place. Should you require further information please ask.
As its name suggests, a family guarantee loan allows a family member (eg, parent) to use the equity in their home as security for your loan.
Maximises the amount you can borrow - up to 100% of the purchase price, plus costs such as stamp duty and legal fees.
Get into the property market earlier as less deposit is required.
Keep more of your cash by maximising the tax-deductible loan you need for investment purposes.
Helps reduce or avoid Lenders Mortgage Insurance premiums which can save you thousands of dollars.
Guarantee Amount - Your family member can nominate a specific amount that the guarantee is limited to.
Releasing the Guarantee - The Guarantee can be released at the borrower’s or guarantor’s request at any time, subject to bank approval.
Loan Repayments - As the loan is in your name not theirs you are responsible for the loan repayments.
Sarah and John are purchasing a property for $400,000.
They are able to meet the repayments on a $400,000 loan.
Sarah and John have saved $12,000 but do not have sufficient savings to cover the cost of the deposit, fees and charges so would like to borrow 100% of the purchase price.
They are faced with saving extra deposit money to satisfy the bank while the property market grows or finding another solution.
With the additional guarantee security from Sarah’s parents, the Loan to Value Ratio (LVR) on Sarah and John’s loan has been reduced to 80% which means they can avoid paying Loan Mortgage Insurance (LMI) saving them in excess of $8,000.
The more you invest, the greater the potential to create wealth more quickly. Gearing can also improve your tax position as you can claim interest and other costs associated with the money you have borrowed.
Jim borrows $100,000 to invest and his marginal tax rate is 46.5%. The interest rate on the loan is 7% p.a. and the investment income is 4% p.a. This is an example of negative gearing. The net after tax cost of borrowing is $1605 in the first year.
Now let’s assume Jim’s investments increase in value by 10% in the first year. That’s a $10,000 gain. That means Jim is $8,395 better off (on paper) after taking into account his $1605 cash flow shortfall.
|Cost of $100,000 loan at 7%||$7,000|
|Investment income at 4%||$4,000|
|Pre-tax cash flow shortfall||$3,000|
|Tax deduction at 46.5%||$1,395|
|After tax cash flow shortfall||$1,605|
|Depreciation – Building & Fittings||$7,500|
Banks will treat equity like cash – giving you a deposit for another property without you having to sell your existing one. Using your equity or other funds (e.g. cash, shares, gifts) as a deposit we would then source the remainder of funds required from any of a number of major banks.
Gary owns his own home worth $600,000. He wants to buy an investment property worth $400,000 and a share portfolio for $100,000. Rather than sell his home, Gary uses it as security to purchase the investments. This allows Gary to increase his holdings of growth assets from $600,000 to $1,100,000. He has funded these assets via a loan of $520,000 (assuming $20,000 in government and bank charges). As all of the borrowings are for investment purposes 100% of the interest and bank charges on the loan are tax deductible.