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To improve or expand your business and grow your wealth it is sometimes necessary to obtain additional finance. A key component of any wealth creation strategy is to borrow at low, tax-deductible rates to create a higher after-tax return on a larger investment base. This strategy applies to both real estate and equity investments.

Through our trusted industry alliances, Prime Partners can offer you advice on a wide range of products and services and also assist you with securing the most appropriate loan to help achieve your financial objectives. Prime Partners Lending has a lending panel of over 30 leading banks and other financial Institutions & has numerous products to choose from.

Director of Lending, Patrick Kazzi, draws from a wealth of experience and expertise when advising clients. Patrick is a Certified Mortgage Consultant and full member of the Mortgage & Finance Association of Australia (MFAA). In addition, Patrick can also provide financial planning services as an Authorised representative of Professional Investment Services P/L Australian Financial Services no. 234951. Patrick is a Certified Financial Planner (CFP), Financial Planning Association (FPA).

The Home Loan market is an increasingly competitive lending market which provides access to local and international banks, building societies, credit unions and an array of specialist lenders. Some of the home loan types available, to name a few, include:

• Standard & Basic variable rates
• Fixed rates
• Low deposit & No deposit loans
• Introductory or Honeymoon rate loans
• Line of credit/Equity loans
• Low-Doc or No-doc loans
• Credit Impaired and Non-conforming loan
• Bridging loans
• Deposit bonds
• Family Equity loans
• Professional Package products

Choosing the right home loan type from this list of options will depend on your individual circumstances, interest rates & fees, lender's policy and your personal & home finance goals.

Borrowing to build wealth provides the investor with:

• a larger capital base with which to invest,
• sufficient funds to purchase high value investments such as property,
• the opportunity to "leverage" their investment return by investing in assets where the combined income and growth is greater than the cost of the borrowing.

Investment loans are typically used to acquire property, shares, managed funds, businesses, and other assets.

Because interest charged on investment loans is generally tax-deductible,, borrowing to acquire investments of the type listed above may allow you to take advantage of the associated tax benefits and introduce a regular and steady income stream.

If you're looking to buy your first investment property, or adding another one to your portfolio, getting the right Investment Loan is essential. At Prime Partners we can assist you in choosing the most suitable investment loan as well as the most suitable loan structure.

Over time your needs and priorities may change or your current finance arrangements may no longer be as competitive as they should be. As a general rule, we recommend that you review your loan structure every five years, or whenever your financial circumstances change to ensure your loan facility changes to reflect your new circumstances.

The mortgage market is a dynamic industry which is continually providing updated products and features to benefit borrowers. This means that there may be something new that could be of benefit to you.

Refinancing involves changing the loan you currently have with a lender by either changing products with the same lender or moving your loan to another lender.

By refinancing your loan, you may be able to improve your financial situation in one or more of the following ways:

• Moving to a loan with a lower interest rate and/or lower ongoing fees
• Upgrading to a loan with more features & flexibility
• Moving to a lender that has superior customer service
• Re-structuring your loan to become more tax effective
• Consolidating your personal loans or credit cards to your home loan and paying a lower interest rate
• Freeing up excess security that has been held by your current financier

Are you on the Best Loan Deal? Prime Partners Lending is available to assist in reviewing your existing loans to ensure that you are on the best loan deal. Simply fax or email a copy of your loan statement to Patrick Kazzi and he will get back to you with an analysis of your loan. Email Patrick at pkazzi@primepartners.com.au or fax 02 9879 7525.

Non-Conforming loans are designed for borrowers who have credit impairments, or who are having problems getting a loan through mainstream lenders.

Non-conforming loans are sometimes suitable to people who don't meet mainstream lending criteria, including:

• people with a bad credit history,
• people with a history of late repayments, loan default or possibly even formerly bankrupt;
• Salary sacrifice
• small business people whose past tax records may not accurately reflect their current capacity to service a loan
• new migrants with no borrowing record; and
• seasonal, casual or self-employed workers.

While you will typically pay a higher interest rate for non conforming loans, some non conforming lenders offer interest rate reductions after a period of time if you have a good repayment history. This clean record will also increase your chances of refinancing your loan with one of the mainstream lenders.

At Prime Partners we can assist you in choosing the most suitable loan option as well as the most suitable loan structure. In some instances this may involve a non-conforming loan.

Reverse mortgages are intended for people who find themselves later in their life owning their home (or most of it) but requiring more cash. A reverse mortgage allows homeowners 60 years of age and over to borrow against the value of their home and access their equity without having to sell the property.

The reverse mortgage finance could be for any specific purpose, such as a holiday, new car, caravan or modifications to your home, or it could merely be put in place to provide additional money to supplement your income/pension. It may alleviate the need to sell your home, and buy a smaller/cheaper one, just to obtain access to some additional funds.

Reverse Mortgages require no repayments during the term of the loan. Instead the interest and other charges on the loan are added (capitalised) to the loan balance. Reverse mortgage loans generally require no repayments until all borrowers permanently vacate the property. i.e:

• when you leave and move into care accommodation
• when you sell the home; or
• upon the death of the last surviving property owner

When any of the above events occur the loan becomes repayable

Funds obtained via a reverse mortgage can be taken as:

• a single lump sum,
• a series of instalments, or
• a combination of the above two options

A risk with reverse mortgages is that the amount of the loan may increase to a point where it is more than the value of your home. This is called 'negative equity'. Fortunately, most reputable lenders offer a 'no negative equity guarantee' so even in a disastrous property market you may never owe more than the value of your home.

Patrick Kazzi, director of Prime Partners Lending is an accredited reverse mortgage consultant with the Senior Australians Equity Release Association of Lenders ("SEQUAL"). SEQUAL is a not-for-profit association, supported by many of Australia's leading providers of reverse mortgages. All members of SEQUAL have agreed to adhere to the SEQUAL Code of Conduct, which includes a "no negative equity guarantee".

At Prime Partners we can assist you in choosing the most suitable reverse mortgage option as well as the most suitable reverse mortgage structure.

Family Equity products are a popular alternative for borrowers with no or low deposit. Also known as Family Pledge or Family Guarantee, these products allow family members (generally the borrowers' parents) to provide a guarantee by using their home equity as security for the loan. Family equity guarantees can also be provided in the form of an income/loan serviceability guarantee.

Who should consider Family Equity Products?

• Borrowers with low or no deposit may use family equity to avoid or reduce their Lenders Mortgage Insurance (LMI) fee potentially saving thousands of dollars
• Borrowers who would like to borrow more may utilise a family equity option to get a bigger loan
• Borrowers who would like to purchase property sooner

Family equity guarantees can be complex finance products and require all parties concerned to be aware of their financial & legal obligations. For example, it may be beneficial to look at splitting the loan to limit the parent's equity guarantee exposure, by establishing an interest-only portion on the larger loan, with a view of having the parents' security released as quickly as possible.

At Prime Partners we can assist you in choosing the most suitable family equity loan option and loan structure.

Finding a suitable finance structure for your business in a timely manner can allow you to maximise on opportunities and develop your business further. Businesses need to be prepared to consider the many different options of finance available. Whether you are looking to:

• buy a new business or commercial property,
• buy new or additional business equipment,
• expand your existing business or property, or
• refinance and/or increase your existing business borrowings,

Prime Partners can assist you in choosing the most suitable commercial loan structure.

At Prime Partners we are dedicated to understanding and supporting the needs of businesses and offer comprehensive lending solutions. Our experience, knowledge and access to a wide range of lenders means we are well placed to assist you with your business finance requirements.

Some of the financing structures we can assist with, to name a few, include:

• Business loans
• Commercial loans
• Lines of Credit (Overdraft)
• Rural property
• Franchise funding
• Debtor/Invoice financing
• Trade finance
• Construction and Development finance
• Motor Vehicle & Equipment Finance
• Self Managed Superannuation Fund loans

Prime Partners can assist with construction and development finance, whether it is residential, commercial or industrial property. From home renovations to multi dwelling property development projects, our experience, knowledge and access to a wide range of lenders means we are well placed to assist & advise you with your construction and development finance needs.

In an environment that is often complex Prime Partners can source funding, negotiate costs & terms, as well as structure and deliver a tailored solution for your project. Whether you are a developer planning to build your next project, or an investor who has a construction project for an existing asset, we can work with a range of lenders to provide you with the most suitable finance solution for your development and construction needs. Prime Partners can organise construction finance for building development on a hard cost or gross realisation basis.

 

 

As your business expands, so does the requirement for your business to make capital purchases such as Motor Vehicles, Plant and Equipment. Your decision to either purchase goods from available cash funds or to finance them may have both cash flow and taxation implications for your business. What's best for your business will very much depend on your circumstances at the time.

If you're looking to build your business, financing your motor vehicle and equipment purchases can help your business to free up its cash resources and invest in those areas that are most profitable. Rather than tying up funds in depreciating assets such as motor vehicles, plant and equipment, you can re-direct your cash funds into more effective purposes allowing you to maximise on opportunities and develop your business further.

Prime Partners can organise finance for a wide range of items, including:

• cars, utilities and light commercial vehicles
• trucks and buses
• forklifts, cranes and earthmoving equipment
• computing and office equipment
• printing, medical and manufacturing equipment
• industrial plant equipment
• Self Managed Superannuation Fund loans

Some of the financing structures we can assist with, to name a few, include:

• Chattel Mortgage
• Commercial Hire Purchase (CHP)
• Lease
• Novated Lease

Financing business equipment has changed over the years particularly with the introduction of GST. Businesses looking to finance motor vehicles and equipment should be aware that some finance products will have certain characteristics which prove more beneficial to them than others.

At Prime Partners we are dedicated to understanding and supporting the needs of businesses and offer comprehensive lending & financing solutions. Our experience, knowledge and access to a wide range of lenders means we are well placed to assist you with your business finance requirements.

Super funds can now borrow money to invest in residential and commercial property!

The Superannuation laws have now been amended to allow super funds to borrow and take advantage of gearing options available to regular property investors, as long as a special structure is in place, as there are a number of laws governing Self Managed Superannuation Fund (SMSF) borrowing.

As with all SMSF matters, great care must be taken to ensure that the borrowing strategy employed is legal and compliant with the Superannuation laws. Prime Partners is well experienced in the new borrowing rules and has the ability to tailor an integrated strategy for your SMSF.

This information is provided as a general guide only and is not advice or a recommendation to enter into any transaction.