at Castlereagh Street, Sydney , 2000
Legend Finance Pty Ltd where we specialise in residential and commercial property finance / refinance.
ABOUT US Welcome to Legend Finance Pty Ltd where we specialise in residential and commercial property finance / refinance. Legend Finance is a response to a seismic shift in the expectations of both borrowers and lenders in today’s dynamic finance industry. We understand that what is called ‘service’ has changed dramatically and that the market place has shifted. Borrowers are no longer content with glib advice from any one lender. Our company is an independent business of ‘strategic mortgage advisors’ committed to listening to, and understanding clients needs together with helping them to achieve their specific goals. Making the process of finance evaluation and selection more intelligent, tailored and dependable for our clients is our priority. At Legend Finance we deliver innovative and analytical thinking that is personal and commercially focused and continually stretches the bounds of possibility for our clients. We believe this approach opens doors for clients to the options and advice they require – regardless of their circumstances. And with access to, and successful relationships with a number of core lenders in Australia, we are well positioned to offer our clients a multitude of products. We are proud to offer our clients a business that is dedicated to, and remains a boutique finance broking firm. The timeless fundamentals of personally tailored service, driven by clear and concise logic that translates in terms of commitment, loyalty and a dedication to achieving authentic savvy financial results for clients, is what we stand for at Legend Finance.
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Reserve Bank meeting tomorrow.....what to do? Rate down or status quo as is?
After a month of speculation on whether interest rates would be cut - yours truly didn't believe they would be - The Reserve Bank of Australia has today announced the outcome of its board meeting and it has decreased the cash rate by 25 basis points. The official cash rate is now 2.0%. In taking this decision it appears the Reserve Bank has reacted to growing concerns around the strength of the Australian dollar, modest economic growth, subdued employment and lower CPI (inflation) figures . This decrease is likely to spark a fresh round of competition amongst lenders so it may be a great time to borrow or review your current finance arrangements. Whether the full rate cut will be passed on by all lenders to their respective variable rate isn't known; nor whether fixed rates (already at record lows) will be reduced further will naturally be of immense interest.
Interest rates on hold, but for how much longer? Tomorrow, the 5th of May, the RBA meets again for its monthly meeting where a decision to cut interest rates or leave as is will be made. I have believed for some weeks now that there will be no rate cut tomorrow. After watching the ABC news this evening where Alan Kohler has advised that the majority of Economists have predicted a 40 point cut to the official cash rate – yes, that’s right, a 40 basis point cut – I still stand by my view that no rate cut will take place. I hope I’m wrong, naturally! There are two ways to look at this. On the one hand, the Reserve Bank didn’t cut interest rates last month. Yet on the other hand, interest rates are still at generational lows. So, whether rates are cut or kept on hold again tomorrow, for property buyers, renovators, refinancers and investors the cost of money remains quite cheap and with mortgage rates hovering around the mid 4% or under for fixed rates, taking out a home loan is more affordable than ever. And property owners... Low interest rates are good news for anyone with a mortgage. With interest rates at levels we haven’t seen since the 1960s, homeowners have more spending power. They can spend the money they’re saving on interest payments on home improvements, consumer goods, holidays or even simply paying off their mortgage more quickly. A number of clients I have spoken with recently have decided to avail themselves of 'cheap' rates and the equity in their property and upgrade their car, some even starting a share portfolio. Conducted appropriately, taking advantage of the low interest rate environment can be extremely positive for many.
Today's inflation result, quite tame in the eyes of some, will I believe, lesson the chance of a rate cut next month.
More movement last week and again today on fixed rates for home and investment property loans. ME Bank lead the way with a hard to beat - and ignore - 3.99% !!! Bring it on. When did anyone last borrow sub 4%?
How to make rate cut work for you The lack of a rate cut didn't surprise some, last fortnight when the RBA left rates untouched. Personally, I was a little surprised. However, the recent attention that home and investment loan interest rates has attracted in the media begs this question: Should you leave your mortgage repayments the same, or pay extra? This is easy. Pay all your income et al into your offset account. If you don’t use your bank account linked to your loan facility as an offset account, establish one…now! Putting money in the offset account of a mortgage is the best risk-free return ever. Every dollar in your offset account will, in most cases depending on the lender, reduce your loan dollar for dollar. You're saving, with a much better return than on any bank account, without paying tax. Yes that’s right…interest earnt from funds in an offset account is not taxable. Your cash in your offset account is yours. You can take it back if you suddenly need it. Utilising an offset account will allow you to make greater inroads on the interest calculated on your home or investment loan more so than paying weekly or fortnightly, over monthly repayments. This is due to the fact that compound interest on a home/investment property loan is calculated daily…as is interest on funds in an offset account linked to the loan. Hence every dollar in your offset account will have the same reducing effect on interest on your loan. If we must have knighthoods, give one to whoever invented the offset account. Or me! Paul Keating I believe created the theory of the offset account; however, I like the idea of an AM for yours truly! Call me to discuss how you can maximise this approach for your property loan.
I'm not wishing the year away; however, any one with an investment property and loan may wish to consider pre-paying a year's worth of interest on their loan before June 30. A number of lenders allow borrowers to do this; and, in addition to receiving a tax deduction (depending on your tax position) in this year financial year, some lenders will reduce the interest rate on the loan where the loan itself is used to pre-pay the interest. If you wish to do this, and or not sure if your lender will accommodate you, call me.
St George Bank offering $1,250 cash rebate to borrowers who refinance over from another lender.
ME Bank announced this week that the $1,000 cash rebate on all refinances has been extended. 3 year fixed @ 4.28%.
Suncorp Bank announced today they are still waiving for the 30 year life of a home/investment loan the $395 annual package fee. This equates to a saving of over $11,000 on loan fees.
Since The Reserve Bank of Australia announced the reduction to the official cash rate to a new record-low of 2.25 per cent earlier this month, we have seen in quick succession, a plethora of interest rate changes (reductions) from many lenders. This is on the back of an existing competitive market where borrowers have been offered enormous discounts off a standard variable rate, and the waiving of annual package fees with some lenders for example. This is welcomed news for all of us who have home loan/s of any nature, and or wish to embark on a new property purchase. As an example, the new standard variable rate (SVR) amongst most mainstream lenders is now 5.74%. This is before any negotiated discount. Many of our clients on variable rate loans are benefiting from discounts of 1.20% or more, some up to 1.35% off the lender’s standard variable rate depending on current lender and overall loan amount bringing the borrower’s rate down to 4.44% This is exciting and fabulous news. Please call me if you would like to discuss any aspect of this and or how you may be affected by todays terrific news.