Ready to answer all your finance questions.
Ready to answer all your finance questions.
Taking out a home loan is one of those life defining moments where instantly you’re an adult and you need to understand all the numbers things. Or do you? Mortgage brokers are your experts in the field when you don’t want to be an expert yourself.
With so much crazy going on, we thought now might be a good time to chat to Esther Scerri, a founder and director of XYZ Finance. On a regular basis Esther deals with the frustrating, daunting, painful and stressful minefield that is finance, so that you don’t have to.
How long have you been a Gold Coast local?
I have proudly called the Gold Coast home for 25 years!
What do you love most about living here?
The Gold Coast is one of those rare places that manages to offer it all. The world-class beaches and outdoor lifestyle are the jewels in its crown, but alongside that there’s also a burgeoning F&B scene, fantastic shopping, a thriving business environment and the best people.
Tell us about XYZ Finance…
My co-founder and I launched XYZ Finance 11 years ago when we saw a need in the market for more personalised finance solutions. Back then, finance didn’t have the tailored offerings of today, and we found people really appreciated having hand-in-hand guidance throughout the process of refinancing or buying a new home. Customer service is XYZ’s most fundamental core value – we want the loan process to be as enjoyable, easy and timely as possible. We’re a fun and dynamic team and we hope clients feel that throughout the process.
What’s the benefit of using a mortgage broker rather than going direct to a bank?
Mortgage brokers will give you options! Not only are interest rates important, but each bank weighs the criteria (income, deposit, genuine savings, debt level etc) differently, so when you engage XYZ we review all this information to recommend the best suited loan options. Going direct, you’ll only know what that particular bank can do, it’s limiting.
Can I defer my home loan payments and how do I do that?
Yes! Banks are offering a “repayment holiday” or “deferred repayment” incentive commonly via their hardship department. This gives you the option to defer your repayment for a period of either three or six months, depending on the lender. In switching to interest only repayments your lender will cap the monthly interest charge on top of your loan limit. While your home loan will actually be worth more at the end of the deferred term than when you made the request – meaning in the long run you’ll pay more interest – in the short term, you can manage any cashflow issues you have while navigating these unprecedented times.
How long can I defer for?
Three or six months depending on the lender.
Does this mean my repayment will go up?
Most lenders are increasing loan terms by six months, so repayments after the deferred period will revert back to the current repayment (if interest rates remain as is), however some banks will re-adjust repayments to cover the extra interest which needs to be repaid.
If the tenants at my investment property have stopped paying rent, what help can I get?
At this stage I am only aware of the repayment deferral option for loan holders. I believe some landlord insurance may cover loss of rent too, this would need to be looked into individually.
Are banks still lending to individuals and businesses at this time?
Yes, now is a great time to review your finances as interest rates are at an all-time low! Review to be able to cut costs at a time when we all need it. Get in touch with us to review your options.
Tell us your favourites on the Coast:
Coffee spot: Alkhemist on TE Peters, close to home & the office
Café for breakfast: Elk Espresso in Broadbeach
Restaurant for dinner: Rick Shores for lunch or dinner
How does your weekend usually look: Pre lockdown – beach, eating out and spending time with friends