LOVELY MORNING AND WELCOME TO MY BUSINESS WORLD

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1 LOVELY MORNING AND WELCOME TO MY BUSINESS WORLD

2 WHAT DO I OFFER MY CLIENTS Many years of experience in finance, not just home loans. Worked at CBA in business banking in Sydney and Adelaide. Had my own furniture business. Understand the high and lows of running a business. Understand the importance of customer service.

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4 REVIEW YOUR HOME LOANS Happy family. Why review your home loans. Changes of life cycle. Considering building your asset wealth. Quickest ways to re-pay the home loan. New loan types that may suit your current situations. Restructure loans to suit tax and personal budgets. No cost or fee to customers to review current lending.

5 HOME LOANS VERSUS INVESTMENT LOANS Home loans Lower interest rate. Most lenders offer higher LVR. Over 90% LVR or 95% LVR including (LMI). Investment loans Slightly higher interest rate to home loans Some lenders will only go to 80% LVR or few will do a max 90% LVR. Government and banks are moving policy on investment loan. Main reason due to high exposure to the eastern states investment market.

6 URBAN MYTH'S : EXAMPLE SCENARIO Offset accounts I want an offset account: Why? Because? Everyone has one. OK that s possible. Do you know how offset accounts work. Yes ish. How much do you have in your offset account over a period of a month?? $XX Scenario In offset account on an average month you have say $4K sitting in the account. Basic home loan Scenario No offset account. Loan $350K x 30 year loan term and interest rate 5%. Monthly payment $1, and you increase your payments by $50.00 a week or $ per month. To new payment of $2, If interest rate do not move for the next 30 years you will reduce your loan by 5.8 years and roughly save $71K in interest. Simple and great way for people who are not very good with their money. Loan $350K x 30 year loan term and interest rate 5%. Monthly payment $1, In offset account on an average month you have say $4K sitting in the account. Loan $350K x 30 year loan term and interest rate 5%. You reduce the loan term by 8 months and save around $13K of interest.

7 COMMERCIAL PROPERTIES General information LVR: from 60 to 70% LVR. Few lenders will go to 75% LVR. Medico s can get up to 90% to 100% LVR. Top 4 banks offer 15 year loan terms with 2 to 5 years interest only. Other lenders offer 20, 25 and 30 year loan terms. Rates interest with most top 4 banks is risked assessed, which will determine the final interest rate. Some lenders just offer rates, (like home loan rates are advertised) ING, Adelaide bank, Suncorp. etc Fees; app 0.8 to 0.5% of the loan amount, valuation paid by clients, monthly loan fee, Some lenders have no on going fees, and smaller app fees etc.

8 COMMERCIAL LOANS OVER LOAN TERMS. 15 year loan terms $500k commercial loan (CBA) 15 year loan term. Principal and interest payments. Interest rate 5.5% Monthly loan fee $20.00 Monthly payment $4, year loan terms. $500k Commercial loan (ING) 20 year loan term. Principal and interest. Interest rate 5.5 % No monthly loan fee. Monthly payment $3, Estimated saving $ P/M Plus the CBA monthly loan fee.

9 SELF MANAGED SUPERANNUATION FUNDS (SMSF). Pros Great to help build your property portfolio Business owners can rent a commercial property owned by the SMSF. Business owners paying rent to their SMSF is classed as rental income not contributions. So think about how much rent you are paying to some and would you prefer to have that rental in your SMSF. Commercial rental Say $50k p.a. into your SMSF less tax etc. times that by 10 years $$$$$$ in your SMSF not the vendors pocket. Cons Setting up SMSF can be expensive. From $1, to $3, Annual audit and accountant fees. Banks charge higher interest rates. Most Banks charges ongoing fees. Banks require min 10% liquidity before settlement. Or at least 6 months loan payments Trustees can be fined by the ATO if there is error with the SMSF. Trustees cannot rent or live in the Residential investment property under the SIS Act. You cannot cross collateralize properties LVR are <80% only for residential and <70% commercial properties.

10 CAR LOANS, LEASING ETC. Low Doc Loan Pros and Cons Own a residential property. Clean credit file. No financials. Quicker process. Sometimes an accountant sign off. Generally Self declare income. Interest rate will be higher. Benefits customer who have not done their tax returns. Suits deal under $75K only. Full Doc Loan Pros and cons Full business financials. Fully declared all assets and liabilities. Can take longer to approve. Better interest rate. When the asset purchase price is over $75k to $100K plus. If the asset is specialised then the application is full doc. I.e. buses, prime movers, Yellow assets. (mining equipment) Can purchase old cars outside the ATO guidelines : I.e. specialised car aged 25 years.

11 CUSTOMER FEED BACK ON MY SERVICE Sonya Bertram We were so grateful that Simon was able to help us as we were on a tight timeline and Simon kept us informed through the whole process and helped us understand what we were doing. Being the first investment property that we purchased we were very reliant on Simon\'s expertise and were certainly not disappointed by his assistance and efforts. In fact I would even say that Simon went above and beyond in accommodating our time frames and he was very flexible in working in with our availability. Simon has continued to follow up with us as to how we are going with everything and we are very appreciative of his support and follow up. We cannot say thank you enough to Simon for his help and guidance. Mark Folley Simon did a fantastic job and is a credit to your company he made sure all our needs where meet and was always available to talk to. Gillian Eisenkolb Simon was fantastic, he understood our requirements and was able to produce an excellent outcome. Wish we had engaged with Simon years ago. Jacqueline Greenwell Simon Bowler was an exceptional help to me, making a smooth transition during a difficult time. He was always on hand for queries and follow ups. He was very prompt in replies and chasing up issues. I believe Simon went above and beyond to provide great service. Highly recommend Simon for all your home loan needs.

12 VEDA OR CREDIT REPORT Lenders Auto decline if you have over 9 inquiries with some lenders. Decline a deal if you have one default on a Veda report. There are specialist lenders who will do defaults issues, but the interests rate are high. Types: council rates, credit cards, online credit inquiries. Customer need to be aware Looking for a car or just enquiring for a new car. Every time you apply for online credit, stores, etc this will appear on the credit file. Defaults on home loans, care loans, any type of credit can be put on your personal credit report.

13 FREE RP DATA REPORTS What is RP Data National company who analyse all sold, list, property history, rentals or all things relating to property. Clients can request information regarding properties they are interested in and the RP Data report will show related sales in the area. If you have any friends or colleagues who are thinking of a property to buy, I can send them a RP Data. RP Data will have limited information on newly built properties due to no sale history.

14 THANK YOU FOR YOUR TIME TODAY. Pros having a great broker on your side. Understand business finance. Knows how to tailor a deal with lenders with minimum disruption to you. Deals with the Banks policies and questions they can ask. Spends the time to understand your current and future lending needs to work on the best options. Brokers are mobile. Brokers work around the client life style to arrange face to face meetings - day or night. Cons having a broker on your side There is none. Brokers offer choice of over 25 lenders and 100 s of products to choose from. Banks can only sell their own products that may not suit the client. Brokers do all the running around to find the best option for your loan. Brokers liaise with the real estate agent and conveyancers etc. while the customer carries on with their life.