Stress less by bundling debt
27 July 2022
If your client has credit cards, personal loans, business loans or even ATO debt, we can help them consolidate their debts into their home loan. By reducing their monthly outgoings, they could get some much needed cash flow to get back on track. We even have unlimited debt consolidation for Near Prime, Specialist and Specialist+ loans. To see how much your clients could be saving with Connective Elevate visit our comparison calculator.
We've updated our servicing calculator to account for an adjustment to our negative gearing percentage. To find out how this affects your client’s home loan.
We helped a Brisbane couple who didn’t have sufficient documentation to verify their income and therefore, were unable to get approval from the bank. With only an accountant's letter for verification, we were able to pre-approve the loan just in time for auction.
Recent global events have led to a significant increase in the cost of goods and services. Because of this, the current inflation rate of 5.1% is well above the RBA target rate of 2-3%. In an attempt to bring inflation under control by cooling spending activity, the RBA increased the cash rate in May (+0.25%) and June (+0.50%). The May increase is the first increase since 2010. Higher-than-normal inflation can be bad for the economy because goods like food and petrol become unaffordable for people whose salaries aren't increasing at the same rate. Also, businesses can't always pass on the higher costs, which means they have to cut back production, which in turn creates supply chain problems.
The RBA cash rate is one of many factors affecting interest rate decisions. Connective Elevate, like many lenders, borrows the funds they lend to home loan clients. Therefore, when the RBA increases rates, the amount it costs Connective Elevate to borrow the funds we lend to our clients also increases. We need to factor this higher cost into the interest rates we charge our new and existing clients, which is why we've had to raise all our home loan interest rates.
Different banking systems and processes means that lenders will change interest rates at different times. You will have noticed in May and June that Connective Elevate increased their interest rates for new clients before many other lenders, and because of this, our interest rates may have appeared more expensive. Please be aware that the interest rates on most loans lodged after an RBA cash rate increase will increase at some point, regardless of the lender. Usually at unconditional approval or after settlement.
This publication is intended for Connective and Bluestone accredited introducers and referrers only and is not to be distributed to anyone else, including consumers, under any circumstance. The information provided is general in nature and does not take into account your individual personal needs, requirements and circumstances. It is not a recommendation about any financial product(s) and does not constitute financial or tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. The information in this email is given in good faith, believed to be accurate at the time of posting and is subject to change at any time. Information accurate as of 8 July 2022.
Your Connective Elevate Home Loan is administered by Bluestone Servicing Pty Ltd (Bluestone) ACN 122 698 328 (Australian Credit Licence No. 390183) on behalf of the Credit Provider, Permanent Custodians Limited ACN 001 426 384. Distributed by Connective Credit Services Pty Ltd ACN 143 651 496 (Australian Credit Licence No. 389328) trading as Connective Home Loans.