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PFP Wealth GroupA Guide To Our ServicesFinancial Advice, Accounting and Tax Advice, Mortgage Broking

Head Office NSW11/8 Teamster Close,Tuggerah NSW 2259

Newcastle NSW108A George St,East Maitland NSW 2323

Victoria15-17 Stewart St,Shepparton Vic 3630

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All rights reserved. No part of this document may be reproduced without permission of the copyright owners. Legal Disclaimer - Financial and Investment AdviceThis document contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. In preparing the information, individual circumstances, for example tax implications, have not been taken into account and it may, therefore, not be applicable to your individual situation. Before making an investment decision, you should consider your circumstances and whether the information is applicable to your situation. This document was prepared in good faith and to the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information and we accept no liability for any errors or omissions. Past performance is not an indication of future performance. Whilst great care has been taken in its preparation, the authors, PFP Wealth Group, and its subsidiary/parent companies disclaims all liability and responsibility, including for negligence, for any direct or indirect loss or damage suffered by any person arising out of any use of this document or any information or material available from it. PFP Wealth Group has common Directors to PFP Private Wealth, PFP Lending Pty Ltd and PFP Accounting Pty Ltd however Synchron is in no way affiliated to either of these companies. PFP Private Wealth Pty Ltd (AR. 444721) is an authorised representative of Synchron (AFSL 243313) Matthew Woodards (AR. 284469) is an authorised represen-tative of Synchron (AFSL 243313) Paul Foye (AR. 383054) is an authorised representative of Synchron (AFSL 243313). PFP Accounting is a registered tax agent no. 28067002. PFP Lending holds an Australian Credit Licence no 378618

Welcome

Thank you for contacting PFP Wealth Group. PFP Wealth Group consists of three separate companies, PFP Private Wealth, PFP Accounting and PFP Lending.

PFP Private Wealth is a licenced Financial Planning company specialising in providing financial advice to our clients to build wealth for their retirement. This can be through a number of ways but primarily through di-rect personal investments or through Superannuation. Managing our clients superannuation is a main focus for us so that you achieve the results you expect come your retirement.

Matt Woodards and Paul Foye are both licenced financial advisers and are authorised representatives of Synchron (AFSL 243313). Their experience in guiding you through your investment options to achieve your financial goals will set you on the right path to having a comfortable retirement.

There are multiple investment options including Shares, Managed Funds, ETF’s (exchange traded funds), SMSF (self managed super funds) and Prop-erty to consider. Then there is your insurance needs to analyse and any aged care planning to negotiate. There’s plenty to work through but our team will take the pressure off you and guide you through the pro-cesses to get to the best solution.

PFP Accounting is a registered tax agent giving advice on everything from regular tax returns to SMSF tax ad-vice and lodgements to setting up the most tax effective structures to house your investments.

Karlie Dicker leads our Accounting division and will guide you through any tax advice you need, ensuring you get the best tax result possible. Navigating through your taxes can be quite an ordeal and getting it wrong can cost you significantly. Our goal is to get you the maximum legally entitled deductions so there’s more money in your pocket.

PFP Lending is a mortgage broking company that sources the best home or investment loan from approx. 35 different lenders. Our commitment to you is to ar-range the loan that best suits your needs and saves you the most money. With so many lending options avail-able, we remove the need for you to do any of the heavy lifting by providing you with a selection of loan products which represents facilities that are in your best interest.

Ricky Ikin and Matt Woodards will analyse your lending needs and negotiate with the banks for you. Best of all, there is no fee for this service. We are renumerated by the banks once we find the best option for you.

Depending on your needs, you can choose from one or all of our companies.

Please call us any time for an appointment on 02 4355 4724 or visit our website www.pfpwealth.com.au.

We look forward to meeting you. Matthew WoodardsDirector

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A lot has changed over the years in the Financial Advice sector. Providing someone with financial advice is heavily regulated to ensure the right outcomes are met and any advice is value for money. Financial Advisers operate under strict compliance rules that are designed to ensure you are given the best advice possible. One rule that we pride ourselves on is called B.I.D (Best Interest Duty). B.I.D ensures that decisions we make are in your best interest and not our best interest. This means that we always put your needs ahead of ours so that in time you can be confident that your investment will get you the desired results. This removes any conflict of interest and ensures transparency in our investment decisions.

We also operate under a strict Code Of Ethics, designed to once again ensure we act appropriately and in compliance with all laws so that you can be comfortable that all decisions or recommendations we make are all tailored to your personal circumstances and are designed to give you the best possible financial advice.

When investing your super there are multiple investment options available to you to choose from. Making the right choices early on can have a compounding effect later in life so it’s best to get appropriate advice as soon as possible and set yourself on the right path to a successful retirement.

PFP Private Wealth

Paul Foye

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Source: Bloomberg

Shares

What is a Share?A Share is simply a part of a company. When you invest in shares you are buying a piece of a company and by doing so you are aligning your interests with the company’s future growth and earnings potential. In effect, you could take part in the success of companies like Telstra, Westpac and BHP and actively participate in the economy. Where things get more complicated is in choosing the right companies to invest in at the right price. That’s where the expertise of seasoned professionals can make all the difference.

What history tells usAlthough the share market experiences peaks and troughs, history shows that it grows in value over time.

The share market is a long-term investment vehicle. Over shorter time periods, returns can be volatile – the global financial crisis of 2008/09 demonstrated just how dramatic this volatility can be, and this is again reflective with Covid-19 causing share markets around the world to collapse.

The good news with share market investing is the longer your investment time frame the better your chances of riding out the ups and downs and enjoying steady market growth.

Share investments offer two different types of returns -

Capital Growth and IncomeCapital growth occurs when the value of your shares increase over time and is realised when you sell the shares. Income comes in the form of dividends paid by the companies you invested in.

Different investors place different importance on growth and income. In general, younger investors and those still working give priority to medium to long-term growth, whereas retired investors tend to look for income to help fund their retirement lifestyle. Most share portfolios are built to offer a mix of both growth and income.

How do shares grow?Shares grow in value when their market price increases.

For publicly traded shares, this is when their price increases on the stock exchange. Under normal conditions this movement in a company’s share price reflects changing expectations of its profits. That is, earnings per share directly influence a company’s price per share.

Targeting growthCapital growth is essential if you want to increase the value of your investments without investing more out of your own pocket. The tendency of shares to grow in value over time is one of their key attractions as an investment type.

A strong source of incomeWhen you listen to the media it’s easy to think that share investments are all about the current market price and

capital growth. What is less obvious is that shares can provide a strong and steady source of income over the long term. The income you receive from shares is in the form of dividends. Dividends are paid out of a company’s earnings and can grow over time as the capital value of your investment also grows.

A growing income streamWhen it comes to an investment that pays regular income, you may think first of a term deposit. Although a term deposit can provide regular income, it’s important to remember that it doesn’t offer any capital growth, so the income doesn’t grow over time as it might for shares. With shares, dividends generally increase as a company grows and earns more. As your income stream increases you can choose to either reinvest the income and further increase your capital or use it to help fund your lifestyle.

An additional benefit of investing for income is that high income shares tend to be less volatile than growth shares. This is because they are usually shares in well established companies in more traditional business sectors, whereas growth shares are often newer companies or companies involved in more exploratory activities.

Not only are shares a good source of income, they can also be very tax effective. This is because Australian share income is taxed favourably through what is called ‘dividend imputation’. In essence, this means that if the company has already paid tax on its income, you get a tax benefit for dividends received from that company. This is so tax isn’t paid twice and makes income from shares more attractive than that from cash and term deposits.

Even if your focus is on investing in shares for income there is a very good possibility that your capital will grow over time. Similarly, if your focus is on capital growth you may also receive dividend payments, especially as growth companies reach certain milestones.

Shares

Although the share marketexperiences peaks and troughs,

history shows that it grows in value over time.

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Investing OverseasInvesting internationally can increase your diversification further and give access to industries and companies not available in Australia. After all, according to Fund Manager Fidelity, Australia represents less than 3 per cent of the total world sharemarket. The Australian market is highly concentrated with a large representation in the financial services and resource sectors. The top 10 Australian companies make up more than 40 per cent of S&P/ASX 300 Index, with four out of the top six companies in the financial sector as at 1st May 2020.

Modern portfolio theory is a theory of investment which tries to maximise return and minimise risk by carefully choosing different assets. The other benefit of investing internationally, is that investment markets tend to move in different cycles, driven by their economic health, and other factors.

Ups and DownsSharemarkets fluctuate every day, because everyday thousands of buyers and sellers of shares trade them. Sometimes, specific events will cause the value of certain shares to rise or fall. Events such as the Global Financial Crisis and Covid-19 can cause dramatic fluctuations and increase volatility over the medium term. You may also be aware of the tech boom in the 90s and the recent

resources boom that has caused the market to surge ahead temporarily.

Substantial gains over timeWhat can get missed in all the hype, especially the doom and gloom following a sudden fall, is that overall the value of the Australian sharemarket has risen substantially over time. While the swings in the market might look extreme over one year, they are less pronounced over the long term. Traditionally, sharemarkets have recovered from short-term setbacks with significantly higher gains.

Shares seem more volatile than other types of growth investments like residential property, because shares are regularly traded and are therefore valued more frequently than property. Residential properties are valued much less often, generally when the owner is looking to sell. If they were auctioned daily their values could go down depending on daily demand which could vary greatly.

To achieve a high return it’s generally necessary to accept some volatility or risk. This is why it is important to consider your investment timeframe because often, the longer you invest, the volatility can be mitigated. Despite the volatility of sharemarkets, shares have a place in almost every properly allocated investment portfolio. It is important though to diversify your investments to reduce your risk.

Source: Bloomberg

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Shares

Market MythsBuy when markets declineWhile declining markets usually recover, it can take time. Some investors see a price drop as an opportunity to buy securities at a discount, while others see it as the start of a deeper downturn. It is important to keep in mind there is no guarantee that share prices will recover to their previous value. Sometimes, there is a good reason why individual share prices fall, for example, reflecting underlying poor corporate performance. Predicting the bottom of the market is extremely difficult. That’s why many seasoned investors use a dollar cost averaging strategy instead. Rather than investing all their money at once, they drip feed it into the market so they can average out share prices over time. The theory is this has the effect

of averaging out market fluctuations. A declining market doesn’t always represent value opportunities, however a long term investor purchasing quality stocks in a declining market could see a long term gain, but it is important to identify why the market has first declined.

Market timing beats buy and holdTiming the markets for the best time to invest is easier said than done. Even professional fund managers find it difficult to continuously time the markets for the right time to invest. Sharemarkets are unpredictable and if you try to time the market, you have to get two important decisions right: when to get out and when to get back in. You may miss the recovery completely and have to pay a higher price to get back into the market. You also risk missing out on market growth. Long-term investing isn’t about chasing the hottest performing stocks. It’s about taking a long-term view and staying the course. It won’t protect you from market downturns, but it ensures you are “in the market” during times of growth.

Managed Funds

Managed funds provide a way for investors to access professionally managed investment portfolios. Because your money is pooled with other investors you can invest in assets which might be too difficult or expensive to invest in directly.

What is a managed fund and how does it work?A managed fund pools together investor’s funds to invest in a range of investments. Typically, a professional fund manager makes investments on behalf of investors in line with the fund’s stated investment strategy, PDS and objectives. Instead of owning the investments yourself, (like when you buy shares directly), the managed fund owns the underlying investments on your behalf.

Most managed funds are divided into units – so when you invest in a managed fund you are usually purchasing units in that fund. The number of units you are allocated will depend on how much money you have invested and represents your share of the fund. While the number of units you own does not change, their value will change in line with the market value of the underlying investments. This is measured by the unit price.

Simplicity Investing in managed funds is relatively easy. Once you’ve decided which fund suits your investment style, objectives and risk profile, the fund manager does the rest.

Liquidity Investors in managed funds can usually access their funds within 3 to 30 days depending on the type of fund and you are usually able to access a part of your funds without the need to cash in the whole investment. This can vary between managed funds however.

Protection Managed investments are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) through legislation which provides some safeguards to protect investors. Various research houses also provide independent research on a large number of professionally managed funds and this research can be purchased by professional investment advisers before funds are recommended to the investor to meet their specific investment requirements. It’s important to note however that the money invested in a managed fund is not guaranteed and can increase and decrease in value.

There are many different kinds of managed funds offering a range of investment objectives and strategies. Managed funds generally have a Product Disclosure Statement (PDS), which states the investment objective, benefits and costs of the fund and also details the types of investments the fund will hold, how the investments will be managed and the types of risk investors can expect.

Most fund managers offer a switching service so you can

change funds quickly and easily if your investment needs or

circumstances change.

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Managed Funds

What is a managed fund and how does it work?Professional management Professional fund managers take care of managing money on your behalf. This means you don’t have to worry about trying to time markets and choosing which companies or securities to invest in. Fund managers are experts in their field of investment, combining economic, market and corporate knowledge to analyse the sectors and companies they invest in. They also make sure your money is invested in accordance with the fund’s objectives, investment strategy and risk parameters.

Diversification As your money is pooled with other investors, you can access a much wider range of investments than you can by investing directly yourself. As managed fund investors can enjoy a greater level of diversification than direct investors, they are less exposed to the performance fluctuations of individual shares or securities. An Australian equity fund, for example, might hold 100 or more shares in its portfolio. It would be very costly and time-consuming to build this level of diversification as an individual investor.

Global investment opportunities As an individual investor it is difficult to build up a portfolio of international investments directly. Investing internationally can increase your diversification further and give you access to industries and companies not available in Australia.

Long-term growth potential Managed funds provide the opportunity to grow your money over the long term. Compounding returns over time can make a big difference to the growth of your investment. Don’t forget that past performance is no guarantee of future performance, and that returns can go up as well as down.

You don’t need much money to get started You can access a managed fund with a few thousand dollars, or less. There are managed funds available for personal investors, higher net worth individuals, self managed super funds, companies and major institutions.

FlexibilityMost fund managers offer a switching service so you can change funds quickly and easily if your investment needs or circumstances change. You should check the PDS for information about switching, including any costs involved.

Investing in managed funds is relatively easy. Once you’ve decided which fund suits your investment style, objectives and risk profile, the fund manager does the rest.

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ETFs (Exchanged Traded Funds)

An ETF is a diversified portfolio of securities constructed most commonly using an index approach that can be readily traded on the Australian Securities Exchange (ASX).

Essentially, investors in ETFs own a share of a portfolio of listed securities. ETFs are one of the fastest growing investment solutions in the world today, with hundreds of billions of dollars now invested globally using ETFs.

The aim of the ETF manager is generally to deliver the index return, before fees, by building investment portfolios using similar assets and weightings as the benchmark index – they don’t try to pick winners from losers. This means an ETF’s returns, before costs, should closely match the index it tracks, just like a traditional index managed fund. Australian investors currently have access to both domestic and international ETFs on the ASX.

The main benefits of ETFs are low costs and diversification. ETF fees are usually significantly less than actively managed funds. ETFs are also more cost efficient than investing in the same exposure of individually purchased shares. ETFs provide investors with a highly diversified investment with broad exposure to entire markets within an index. This also includes shares that investors may not be able to access directly on the ASX such as international shares.

An example of an ETF is Beatshares ETF A200. As at 31 March 2020, the ETF has a fee of just 0.07%pa while investing in every share in the ASX 200. Effectively by purchasing the share A200, you are buying a portion of 200 individual ASX shares for the cost of buying a single stock.

With thousands of ETF’s to choose from there is an ETF investment to meet every risk profile.

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SMSF (Self Managed Super Fund)

As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So, it’s no surprise that control is the number one reason people give when asked why they want an SMSF.

SMSFs give their members control over how their retirement savings are invested. Other reasons for choosing an SMSF include poor performance of an existing public fund, advice from an accountant or financial planner, or investing in assets types not available through retail or industry super funds such as direct property.

As at March 2019, according to the statistics from the Australian Taxation Office (ATO), there are around 600,000 SMSFs in Australia with a combined total of more than 1.1 million Aussies members of these funds.

The vast majority (82%) of SMSFs in Australia have balances greater than $200,000, as indicated in the table below and this is consistent with the generally held view that the cost of setting up and running a SMSF may be prohibitive for members in funds with lower balances.

SMSF’s have become an increasingly popular way for people to invest their super. Rather than being limited by a list of fund managers used by a public offer or industry super funds, SMSFs have the ability to choose from any of hundreds of fund managers available in the market, in addition to direct investments such as shares or property. An SMSF is also the only Super structure in which you can own direct property.

SMSF’s can choose virtually any kind of investment providing it complies with the Superannuation Industry Supervision Act (SIS), the SMSF’s investment strategy, and meets the sole purpose test of providing benefits for members at retirement.

An SMSF must be set up for the sole purpose of providing retirement benefits to its members (or to their dependants if any of the fund members die before retiring).

Setting up an SMSF involves creating a trust (a legal tax structure) with either individual or corporate trustees. Trustees manage the SMSF’s assets and are ultimately responsible for ensuring the fund’s ongoing legal compliance with superannuation and taxation legislation. That compliance includes annual auditing, reporting and taxation obligations to the ATO.

SMSF asset balance Percentage of total funds

Under $50k 5.5%

$50k – $100k 3.2%

$100k – $200k 7.7%

$200k – $500k 22.8%

$500k – $1m 24.8%

$1m – $2m 20.0%

$2m – $5m 12.6%

$5m – $10m 2.6%

More than $10m 0.7%

Benefits of a SMSFGreater flexibility with tax Superannuation can be a tax-effective investment vehicle. SMSFs that comply with super legislation are generally entitled to have their member’s contributions and fund earnings taxed at the concessional superannuation rate of 15% in Australia (up to certain limits) whilst in accumulation phase.

Fund earnings when an SMSF is in pension mode are also tax-free. SMSFs can potentially use tax strategies around capital gains, taxable income or franking credits as well as any depreciation for any relevant direct property investments it may purchase.

Greater control over investmentsSMSF trustees have more control over how their funds are invested. They can invest in many of the products available to public funds, as well as some products that aren’t. For example, SMSFs can invest directly in residential real estate, rather than being restricted to property trusts as many public funds are.

SMSFs can also potentially purchase commercial property, which can then be leased to a related party including themselves if they are self employed.

Potential for Lower fees Retail and industry super funds typically charge members a percentage fee based on the amount of money they have invested. By comparison, SMSF fees are usually charged a flat fee for advice services and compliance. Whilst these fees can increase over time they are usually not linked to the asset value as a percentage.

Therefore, when you have a SMSF with say two members, husband and wife for example, and they combine their

super into a SMSF, it can often result in a lower overall cost in the SMSF compared to their previous super funds. Obviously the higher the SMSF balance the more savings that can be made, and the reverse is true, the lower the balance the SMSF costs become too high, so it is often not feasible for members with low balances to start a SMSF.

In practice though, there is no such thing as an average fees. The actual fees you pay for your SMSF will depend on things such as the investments you choose and the professional services you use.

Ability to combine superAll members of a SMSF must also be trustees and as at May 2020, the maximum number of members a SMSF can have is 4. There was legislation before parliament to increase this to 6 members, however it has not yet passed. Therefore, by combining your members balances you can get multiple benefits.

Firstly, it will give you a greater fund balance to purchase assets you may not have been able to purchase as an individual member, such as direct property. For example, lets take a husband and wife who want to start a SMSF to buy an investment property for $500,000 and the husband has a super balance of say $200,000 and the wife has $170,000. By combining their super they would have $370,000. Under the SIS Act, their fund would be able to borrow say $150,000 (subject to lending criteria and after seeking financial advice) giving them enough funds to purchase the investment property. Had they not combined their super into a SMSF they would not have been able to achieve their goal of buying an investment property.

Also, by combining their super into a SMSF they will now only be paying the cost to run the SMSF as a combined fund, whereas they currently are both paying individual fees to their respective super funds.

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SMSF

Disadvantages of a SMSFRunning the fund Running an SMSF can be time-consuming and costly. There are compliance obligations, such as annual financial statements, a tax return and an independent audit. Although these tasks are usually handled by PFP Wealth Group, SMSF trustees must still spend time coordinating and overseeing them.

In addition, a good knowledge of fundamental investment principles is generally recommended. You should have both a say in and a knowledge of, what you are investing in. Despite having a Financial Adviser guiding you along the way, it is preferable that you understand both the principles of investing and are comfortable with what you invest in, so some research may be required.

Higher costs on lower super balancesAs mentioned previously, a flat fee typically charged for SMSF services mean that members with low balances are typically changed more than they would if their funds were invested in public funds.

Therefore, it is generally not acceptable or in your best interest to start a SMSF with a combined balance of less than say $250,000. Whilst there is an exception for every rule, it would be difficult to justify starting a SMSF with a

balance below $250,000. The cost to start and run the fund would usually exceed the costs being paid through an existing retail or industry fund.

Once again, average fees can be misleading. The actual fees you pay will depend on the investments you choose and the services you use.

SMSF regulationSMSFs are regulated by the ATO (directly) and ASIC (indirectly).

The ATO ensures that SMSFs comply with their financial reporting and taxation obligations.

ASIC manages the registration process for independent SMSF auditors. SMSF auditors play a key role in ensuring overall regulatory compliance. They are required to report any breaches to both fund trustees and the ATO.

Heavy penalties can be imposed on SMSF trustees for non-compliance, including:

■ Their fund losing its concessional tax treatment

■ Being disqualified from their roles (meaning they can no longer be members of the SMSF, nor can they start a new fund)

■ Fines or imprisonment, depending on the seriousness of the legislative breach.

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PFP AccountingPFP Accounting is a registered tax agent providing taxation services to our clients for Personal tax returns, SMSF tax returns, Business returns and any tax or accounting advice.

With a long history of helping our clients achieve the best tax outcome as possible, PFP Accounting prides itself on being an expert with all the changing tax laws, particularly with investment property tax, to ensure you get the maximum tax refund without incurring the wrath of the ATO.

Karlie Dicker leads a team that actively sets out to achieve outstanding results by thoroughly analysing your tax position and investigating strategies that help you or your business achieve its financial goals.

It can sometimes get confusing come tax time and by not claiming all the applicable deductions you may be entitled to you are virtually giving money to the ATO. Having a great accounting team behind you will ensure that you’re in the drivers seat.

SMSF’s need particular attention come tax time because ensuring your SMSF is compliant is a main responsibility of the trustee and our team stands ready to assist you in all your regulatory responsibilities.

We can assist you with any of our services including:

■ Personal tax returns

■ Investment property tax specialists

■ SMSF tax returns and compliance

■ Self employed

■ Business including partnerships, sole traders and companies/ trusts

■ Income tax planning

■ Company and business set up

■ Book keeping

■ BAS returns and lodgements

■ Liaising with ATO on your behalf

PFP Accounting is a registered tax agent no. 28067002

Karlie Dicker

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When it comes to finding the right home or investment loan you need a mortgage broker that has the experience and knowledge to negotiate the best deal for you. PFP Lending has access to over 35 different lenders so when we research your best loan option you can be assured that a lot of time and energy has gone into ensuring it meets all your financial goals and can save you the most money possible for your unique situation.

Our goal is to analyse your personal situation, work out which lenders policy best fits your situation and then work out which banks products can save you the most money. It’s important to recognise that not all banks are the same. Their end objective is the same, i.e. to get new business by writing new loans, but they each have a different appetite for what type of client and what type of loan they prefer the most. When you understand which bank is best suited to your individual circumstances then we can start to tailer the loan with that bank in mind.

Having so many lenders to choose from means that you are on the front foot straight away. There may be lenders out there that offer significantly lower rates that suit your needs that you may have never thought about. So instead of going to the bank you have always used, its best to see what alternatives are out there first.

Best Interest Duty (B.I.D)Just like in Financial Planning, mortgage brokers are now bound by Best Interest Duty. This means that your broker must act in your Best Interest and not their own interest. Even though PFP Lending has a proud history of already doing this, it is now a legal requirement and one we take very seriously.

There are many different criteria which determines what loan is in your best interest but you can rest assured that PFP Lending works hard to make sure your loan is the right one for you. Whilst having the lowest interest rate is fantastic, you must remember that it is not always about interest rates solely. For example, sometimes a loan with the lowest interest rate might not give you access to other important features such as, offset accounts or redraw or fixed rates for example. That’s why it is important for us to fully investigate your individual circumstances so we can weigh up all the options and then give you our recommendations to choose from.

What’s even more important is that banks do not operate under these same laws. That’s right, a bank does not have to abide by Best Interest Duty…… only mortgage brokers do.

How are we Paid?Once we have identified which lender and which loan is in your best interest, we lodge a loan with the bank. Eventually, once the loan settles, the bank will pay us a commission for the loan called an upfront payment and then an ongoing fee called a trail payment. These commissions do vary between lenders but it usually averages around 0.6% upfront and 0.15% trail income. There are usually minimal differences between lenders and certainly not enough variance to impact on our recommendation in any way. Remember, we act in your best interest not ours.

It stands to reason then that if a bank pays us then the interest rate must be higher right!!! Wrong. The interest rate we obtain for you is the same as it would have been had you gone to the bank directly. If fact, it is often lower with a mortgage broker because we have the ability to negotiate with the banks on your behalf to get the best deal possible. The banks simply pay us because it means they are not paying their staff to go out and get the loans themselves.

PFP Lending

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This is the fairest way because a bank only pays us when they actually get business, as opposed to paying staff regardless, and you get the best deal without having to pay any fees for our service.

It begs the question, why would you ever go directly to the bank for a loan? Has your lender ever told you there’s a better deal at a competitor? Of course not. At PFP Lending, if we feel that your lender is the best fit, then we will recommend that lender simple as that, but at least you get the opportunity to examine what the other 34 lenders are offering first.

Today over 55% of all new home loans are written through mortgage brokers so it’s evident that the public are voting with their feet when it comes to who they prefer to deal with for their home loan.

Matt Woodards

Ricky Ikin

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You’ve taken the first step...

We’d love to hear from you.PFP Wealth Group provides a suite of professional

financial services so you get the most out of reaching

your key objectives. They ensure that you have complete

confidence in your ability to abide by your financial plan,

and that there are related strategies in place that can

adapt to meet unexpected or altered circumstances and

enable your existing resources to be utilised in the most

tax effective way.

BOOK YOUR FREE CONSULTATION

Contact us today or complete an on-line enquiry now to secure an obligation-free consultation

02 4355 4724help@pfpwealth.com.aupfpwealth.com.au/contact-us

PFP Lending is a holder of an Australian Credit Licence no 378618.

PFP Lending is a member of the MFAA

PFP Lending is a member of AFCA

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(02) 4355 4724

help@pfpwealth.com.au