Enable Finance Differentiators
At Enable Finance, we provide first and foremost mortgage advice that is tailored to help our clients buy their first home and create their own version of financial freedom.
We achieve this by viewing property acquisition and finance as educational process and by hand-holding all our clients through the intricate property buying and negotiation process, regardless if it is for a new owner occupied home or an investment property. Our personalized services and financial advisory is designed to achieve a very high success rate for our clients and to empower them throughout the process.
On average, we achieve over 90% successful applications on behalf of our clients. Our philosophy is to help all our clients towards winning at the real estate game and live their dreams to the fullest.
To further add values to our clients over the long-term, we have developed referral relationships with our strategic partners to offer a range of add on property services from accounting, solicitors, real estate agents, renovations and construction specialist to property management services so that you can enjoy a seamless, and hassle-free income stream generation.
Our objective is to allow all our clients to spend their time living their life instead of worrying and stressing about the upkeep of their investments.
Mortgage Advisory Services
Enable Finance was born from Matthew Tan’s knack for making property deals for himself. Fast forward a few years, Matt created a specialized mortgage advisory platform dedicated to achieving for others what he achieved for himself. Helping others is his passion.
All Enable Finance services address the needs of both self-employed customers and salaried clients.
The Enable Finance’s mortgage advisory obtains finance approval on behalf of its clients cover the following type of banking and/or financial facilities:
Construction Loan (home build mortgage) & Development Loan
Note: From a bank’s perspective, construction loans are considered more risky and expensive when compared to traditional mortgages.
Construction loan commonly used for the construction of a residential house on vacant land or to make structural renovations to an existing property. Put simply, its purpose is to finance the costs of building a home. Total construction costs are agreed between the borrower and bank and a schedule of payments is typically set in which money is advanced in stages (progress payments) to the builders and suppliers as the build progresses. The amount that is available to be borrowed is partly dependent on the estimated value of the property upon its completion. Interest rates are often set as floating during the construction process however once completed, the loan then switches to a fixed rate.
There are a few other notable construction contracts such as:
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Turnkey construction contracts: A turnkey construction contract details a property that will be fully finished. The idea behind this is that you simply turn the key and walk into your finished house. These contracts are generally used by larger companies for complete house and land packages where price certainty is considered higher as there are very few estimated PC sums.
- Build-only construction contracts: This type of contract occurs if the land has been bought separately and you are engaging a builder to construct your new house on it. This gives access to more customisation with regards to your home as architects may be hired in order to make your house vision become a reality. The option enhances the flexibility for the borrower as they have the option to hire and make changes as they see fit.
First home
A government-supported initiative has been introduced for those who are looking to purchase their first owner-occupied home to live in and may not have the required 20% deposit that one would usually require. Buyers may qualify for a 5% deposit First Home Loan or a Grant up to $10,000 or both. A First Home Loan gives you the flexibility of being on a fixed or floating interest rate however a one-off Lenders Mortgage Insurance (LMI) premium may apply (this is commonly referred to as a low equity premium or low equity margin. Other criteria includes an income cap (A maximum yearly income cap of up to $95,000 (before tax) for 1 person or a combined maximum yearly income of $150,000 (before tax) for 2 or more people) and a house price cap (based on the regional house price).
Investment Property
Building up your property portfolio through property investment can lead to passive cash flow, wealth growth and diversification. Investment returns typically come in the form of yield from rental income and through capital gains over a longer period of time. Unlike owner-occupied properties, Investment properties require a deposit of 30% due to the loan-to-value restrictions imposed by the Reserve Bank since October 2013. The one caveat to this is that new builds are considered exempt from these LVR restrictions. A new build is defined as a property in which the Code of Compliance Certificate (CCC) is less than 6 months old and the property is purchased directly from the developer or builder. Prior to March 2021, it was common practice for any investment property to be interest-only mortgages as interest was tax-deductible. The government has since announced the phasing out of tax deductions on investment properties therefore it is important to ensure that the right strategy has been put in place and implemented.
Refinancing
This is the process of transferring your home loan from one bank to another. When you refinance, you’re essentially paying off your existing loan, then taking out a new loan at a different bank. There are some clear advantages when deciding to refinance a home loan such as:
- Locking in a more competitive interest rate.
- Ability to make use of other bank’s products or services.
- Loan structure review.
- Wanting to borrow a larger amount.
A good time to look at refinancing is when the current loan’s fixed-rate term is about to end, if there has been a significant change in your financial situation or if you’re looking to borrow more to buy a new house or investment property.
Restructuring
Mortgage restructuring is the process of rearranging your home loan as what may have worked at one point may not be the current best fit. Restructuring gives the ability to make changes to your fixed or floating interest rates, setting the right term or terms for fixed portions of the loan, and ensure appropriate loan repayment amounts are set. The usual aim of restructuring is to help save what can add up to thousands of dollars in interest repayments and allow you to repay your mortgage quicker than any standard term given to you by the bank.
Debt Consolidation
As the name implies, debt consolidation allows the combination of multiple debts into one single loan and one single rate. As an example, this can include credit cards, hire purchases, existing loans and store cards. Debt consolidation loans tend to have a lower interest rate when compared to the rate you would normally receive on a credit card and are typically over a longer period. What this means is that repayments are likely to be smaller. Budgeting is also easier because there’s only one loan to manage.
Detail is where we excel
We provide personalised mortgage advice with a focus on hand-holding our clients throughout the whole property buying process, from the beginning to the end.
Our mortgage advisory approach is very thorough and looks at all the aspects that affect the clients’ ability to settle on the property all the way from looking at the property to understanding our clients’ unique circumstances, tax and legal implications prior to referring them out to our financial partners.
We also provide in-depth budgeting forecasting so that client understands the impact of the new financial burden to ensure that they can afford the mortgage even if interest rates go up.
We also help the client negotiate or bid in auctions using our strategies to increase their chances of settling the property.
Most importantly, we work with our clients to reach a key goal that drives the spirit of our group: to become financially independent. We teach them how to grow from one property to the next and help them to get there.
We spend a lot of time with clients upfront, and all along the way until the time they settle on a property. We also chip in our clients’ annual reviews for free and will allocate the necessary time to ensure a successful closure.
In line with our long-term approach to helping our clients build their own real estate portfolios, we check up on them every year to see how they have progressed and if they are ready for their next property purchase.
On average, our long-term clients will most likely buy property 3-5 times before they retire.
