Welcome to Aspire Financial Services
. While our parent company has been focussing on Residential Construction Lending (NewBuild) since 1999, we have always offered a broader service to our clients - including purchasing a home or investment property, to refinancing.
We have always taken care of our clients financial wellbeing by offering quality insurances and sound advice.
We are sometimes asked why not go directly to a bank or insurance company? Isn't it cheaper. The answer is no, not usually, but most importantly banks and insurers offer products and they will only promote their own. They rarely if ever offer advice, just their own products.
But perhaps the most important reason to employ an advisor is the quality of advice
. "It's never been about the best interest rates, it always been about the best interest rates wrapped in great advice".
Now you can save some money.
So why Aspire?
We think this quote tells the story why...To desire is to obtain; to "aspire" is to achieve. James AllenDoing Your Homework means letting us do your Homework
Purchasing a home can be stressful, but doing your homework and getting the transaction in order makes all the difference. For many, finance is last on the list when in fact it should be first. A loan offer will let you know in advance what, if any, restrictions or limitations you may face. NewBuild can offer you a loan through a number of banks, mainstream lenders, and quality finance companies.
Choosing your lender
For most of us choosing a lender is obvious. We go with the lender we bank with because we are loyal to them. A growing number now appreciate that loyalty may not be reciprocated, and are happy to look for better lending criteria, terms and interest rates.Others are solely focused on interest rates. And while interest rates are very important, choosing your lender based on rates alone is a trap.
Interest Rate Trap?
Each bank has different rules on break costs. Some banks can cost thousands, or even tens of thousands of dollars more than another bank to break all because of how they determine a break cost calculation. So if you choose bank because of a lower rate, you stand a reasonable chance of paying a whole lot more if you don't look at the back end of your loan conditions. Secondly, have you noticed there is usually a large interest difference between a short term fixed rate and a long term fixed rate. This is another trap for those not familiar with how banks price interest rates.
How can you beat the banks?
Banks always have a strategy to make their profit. Part of that strategy is to price interest rates for their own financial benefit. If you were to look at the rates two years ago when interest rates were all very high, the 5 year fixed rate would have been the cheapest rate, so many selected that rate. But a year later, interest rates had plummetted, and everyone on a five year rate could not get a lower rate without a massive, and often unaffordable, break fee.Conversely, now that rates are starting to climb, the banks have made the short term rates more attractive. By fixing short term now, when the market does improve, and rates climb, you will be left with no choice but to go up with the interest rates.I appreciate this is technical, but it is so important to understand that just picking the lowest interest rate you can find can be a short sighted financial strategy. A very good general rule of thumb when choosing an interest rate (remember, how long you have the loan, and your personal situation should be considered) is:
When interest rates are high, stay with a short term fixed, or even a floating rate. When the interest rates are low, stay with the longest fixed rate you can afford. In other words, don't chase the lowest rates just what the bank wants you to do.
Most banks have a penalty for breaking a fixed rate loan. But it's important to know that yours will almost never have a break fee if you break a longer term rate and the interest rates are higher than when you fixed. If rates are lower, you will generally have to reimburse the difference for the balance of your fixed term. Banks have different formulas so this is where sound advice is helpful. Banks will almost always indicate a break fee is payable, when often it is not. This is to prevent you from shopping around for a better home loan. Also, even if you do break and pay a penalty, there may be substanial financial benefits to do so. Again, seeking sound advice will benefit you.