Frequently Asked Questions
Q. What is a SMSF?
A. A Self-Managed Super Fund is a superannuation fund controlled by the individual investor. It provides flexibility to the investor and allows them to choose their investment types.
Q. Are SMSF’s easy to set up?
A. It is easy to set up a Self-Managed Super Fund when you are dealing with professionals. There is a lot of regulation surrounding the superannuation environment and it something best left to those with experience in the field. Whilst you can be involved in the process it is imperative that your SMSF abides by specific regulations.
Q. Who manages my SMSF?
A. Ultimately the individual is responsible for their own SMSF. Nieuvision offers comprehensive services to make this process almost hands free for the investor. The compliance, maintenance, audits, tax returns and reviews of the SMSF can be done by us.
Q. How much do I need in superannuation before I can set up a SMSF?
A. There is no minimum amount required before you can set up a SMSF.
Q. What are the fees?
A. There is an upfront cost to set up the SMSF which varies between $1,000 and $3,000 depending on circumstances. The ongoing fees are between $1,000 and $2,500 depending on SMSF investments and complexity.
Q. What fees am I currently paying?
A. Different super funds have different fees. Typically they range between 1% – 3% of the total fund balance. You can contact Nieuvision and ask us what your current fees are.
Q. What sort of property should I purchase inside my SMSF?
A. The individual has full discretion as to which property they purchase. Ultimately the investment performance of the property should be the highest priority. There are specific guidelines on property types that SMSF cannot purchase. It is best to discuss this with an expert at Nieuvision.
Q. What does a mortgage broker do?
A. Mortgage brokers are professionals in the home loan industry. They work with you to determine your borrowing needs and how much you can borrow. Brokers help ensure you don’t take out a loan that is too big for you. Professional mortgage brokers only focus on loans. They have access to a wide variety of loans which means your broker can find a loan is just right for you.
Q. Do you charge fees for home and investment loans?
A. Some mortgage brokers charge a fee and some don’t. When you take out a loan via a mortgage broker it does not cost you more. Brokers get paid commission by the bank for bringing new business to them, this does not impact your rate or level of service. Some brokers charge a fee for their service. They must disclose this fee upfront to you so you know what you will be up for if you engage their services.
Q. Don’t you just recommend the lender who pays you the most commission?
A. Absolutely not! There is legislation in our industry, called the National Consumer Credit Protection Act or NCCP, that is designed to protect consumers and ensure ethical and professional standards in the finance industry. We tell you upfront what commission we will be getting from the bank. Our job, our only job, is to find the best loan for your needs and serviceability.
Q. How much can I borrow?
A. This depends on how much you have saved for a deposit and what your current expenses are. Call us and we can discuss your options in more detail, or check out the loan calculators page of our site.
Q. Should I go fixed or variable?
A. Brokers are only allowed to recommend a product based on what you say is most important to you, for example, “pay my loan off quickly”, or “guaranteed repayments”.
Q. I am not in your area, can we still work together?
A. Sure thing. We have mobile brokers so we can come to you!
Q. Who sets interest rates?
A. The reserve Bank of Australia meet on the first Tuesday every month to determine the official cash rate for the country. The lenders then use this information to set their own rates. Mortgage brokers do not set rates.
Q. Why should I use a mortgage broker if I can go with a bank?
A. When we talk about a ‘loan product’ we are preferring to the thousands of options that are currently available for you for your loan. Each bank (for lender) has lots of different loan options – low doc, package loans, re-draw facilities, plant and equipment loans, fixed, interest only, interested in advance, variable, introductory variable… the issue you face as a consumer is, ‘which loan is right for me?’ And that is where a mortgage broker comes in. If you go direct to the bank, you will only be offered the loan options available through that one lender. At Nieuvision we are with Connective Brokers. This mean we have access to many lenders – these include the major banks, second tier lenders and credit unions. We can source you a loan from the lender of your choice. As your mortgage broker, we do all the leg work for you.