This document compares mortgage and loan options from various banks and brokers. It finds that brokers provide more choice and competitive pricing due to being able to access products from many banks. Brokers have lower operating costs than bank branches. The document also outlines differences in rates and fees for owner-occupied homes, investment properties, fixed vs variable loans, and SMSF property finance specifically between St. George and Liberty Finance.

1. Richard Glynn B.Com

2. Why use a Finance/Mortgage Broker?
• One subsidiary IN one subsidiary OUT
• Need to view the Broker as a branch for all banks
• Less expensive costs to run a broker business
compared to Branch
• Choosing client suitability from hundreds of
products
• This creates more competitive pricing /more
choice
• Servicability / Capacity To Borrow
• The bank you choose compensates us for the
introduction
• Private Banking – costly, as they view superior
service equals high interest rates and more fees.

3. Home Loans (Non–Super)
• Owner Occupied Loans
(Fees waived in first year.
Includes off-set account.
min $250k)
• Major banks average
(St George, CBA, NAB, Westpac, ANZ)
$0
$100
$200
$300
$400
$500
Fees
Fees
ING
Major banks (average $350 -$390 p.a.)
4.13% 4.28%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Variable rate
Variable interest rate
ING
Major banks

4. Investment Loans
• Increase in variable rates to
above 4.6%p.a (up to 4.9%)
for investment borrowing
Recent APRA Legislation Changes has caused decreased
demand for major banks appetite for investments loans
Reduce maximum LVR
• St George 80%
• Macquarie Bank 80%
• Nab 90% including Mortgage
insurance
• Liberty - Up to 95% LVR plus
the full LMP fee capped (up
to 99%)
• Tighter credit
guidelines

5. Loan Structures
Fixed loans
• Security of guaranteed rate for period
1-5 years (more at some banks,
generally expensive)
Variable loans
• Flexibility
• 100% off-set account
Split Loans
• How much fixed, How much variable?
• Financial advise
Interest only
• Tax deductable for Investment loans
• Less expensive than P&I
• Good hardship fallback
Principal and interest payment
• Reduction of debt

6. SMSF Property Finance
St George
• SMSF residential Variable Interest rate
5.94% p.a.
• Max LVR 70%
• $12 monthly ongoing
Liberty Finance
• SMSF residential Variable Interest rate
5.49% p.a
• Max LVR 80%
• $10 monthly ongoing
0
500
1000
1500
2000
2500
3000
Setup Fees for SMSF include:
$100 settlement
$205 per additional trustee
$1500 establishment fee
$615 guarantor
$0
$500
$1,000
$1,500
Setup Fees for SMSF include:
$495 Setup fee
$495 Processing fee
Liberty Finance
St George