This Disclosure information is provided in accordance with the Financial Markets Conduct Act 2013 Amendment Regulations 2020 (Disclosure Regulations).
| Name of Financial Adviser: |
|
Dennis Stevenson (FSP118984) |
| Trading Name: |
|
Freehold Express |
| Address: |
|
3/301 Lincoln Road, Addington, CHRISTCHURCH |
| Phone: |
|
0800 66 66 61 |
| Email: |
|
loans@fhx.co.nz |
I am a financial adviser, and I am giving advice on behalf of Freehold Express Limited (FSP265205).
Reliability History
Neither Freehold Express Limited nor I have been subject to a reliability event. A reliability event is something that might
materially influence you in deciding whether to seek advice from me or Freehold Express Limited. As an example, it would
include legal proceedings against Freehold Express Limited or me, any disciplinary actions by the Financial Markets
Authority, or if I had been discharged from bankruptcy.
Nature and Scope of the Advice
I will provide you with financial advice in relation to your home and/or rental property mortgages (if any). I can provide
financial advice about lending from eight mainstream or first tier banks such as ASB, BNZ & Westpac and twenty-one
non-bank, or second tier lenders, such as Resimac, Pepper Money & Bluestone. My role is to recommend a lender to you
that is best suited to your needs. I also provide specialized mortgage debt reduction advice and planning.
Out of Scope
I do not provide Taxation advice, Estate Planning (Trusts, Wills, Enduring Powers of Attorney) advice, Property Ownership Structure advice, Retirement Planning advice, Investment advice (including Kiwisaver) or Fire & General insurance because I am not qualified to give advice in these areas. I can refer you to suitably qualified industry professionals if you need advice in any of these areas. It is important that you seek relevant legal/accounting advice around the ownership and borrowing entities in the event you wish to have a company or trust involved in the transaction so that we can ensure the loan structure is set up correctly.
Fees and Expenses
No fees apply to re-fixing a standard loan. We do not charge fees, expenses, or any other amount for standard mortgage broking services when a loan is advanced, unless a client repays the loan, or part thereof, within twenty-eight months of inception. This fee reimburses us for any supplier claw backs after providing a free service to the client. A fee may also be charged if the client engages another adviser, engages directly with a lender, fails to disclose information, fails to provide requested information, withdraws from a loan application, or if we obtain a lenders approval of finance and the client decides not to proceed with the approved finance, or the approved finance is not advanced within six months. The fee is calculated at a rate of $250 per hour, up to a maximum of $2,500 for the adviser’s attendances. An agreed fee is charged for any non-standard mortgage broking services before any work is carried out. While I am unable to provide you with an estimate of these fees at this time, I will confirm this with you in my Scope of Service before we proceed. If a fee is charged, the fee is payable within seven days from invoice.
Conflicts of interest and incentives
I receive commissions from the relevant bank if you take out a mortgage following my advice. The commissions are between 0.55% and 0.85% of the value of the mortgage – the amount depends on which bank and what type of mortgage you choose. In addition, we may receive a commission of between 0% and 0.2% of the remaining balance each year from some lenders. In some cases, we may receive a fee from the lender of between 1-3% of the loan amount borrowed where the lender does not pay commission. This fee can be added to your loan amount borrowed and will be paid to us at the time the loan is drawn/settled. You will be advised if this is the case and can choose whether to proceed or not. I receive commissions from insurance companies if you take out life insurance. The commissions are between 80% and 200% of the first year’s premium. In addition, I may receive a commission of between 0% and 7.5% of the annual premium each year from some insurers. I receive a referral commission of 7.5% of the company premium for any fire and general insurance you take out with Tower. The Freehold Express Plan and Mortgage Action Plan are Freehold Express Limited’s own fee-based products that we charge for under separate agreements.
General lender risks and disadvantages
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The bank fees may increase in future, thereby making it more expensive to alter your mortgage.
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The bank may change its lending criteria and loan to valuation ratio. This could impact your ability to draw down on a pre-approved loan or to refinancein the future as the bank may require you to have a higher level of equity in your property.
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Mortgage interest rates may increase in the future. This may affect your ability to service your mortgage.
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The value of your property or other assets may fall and the bank may require you to provide additional security.
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If you repay part or the entire fixed loan during the fixed rate period the lender may charge an early repayment fee.
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If interest rates reduce during your fixed rate period your interest rate will remain the same.
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During the fixed rate period you may be allowed to make extra payments without penalty subject to the lenderscriteria.
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If your income reduces,or if your expenses increase,you may not be able to afford your mortgage repayments.Version 1.12/9/2021
