If you’ve paid down your home loan somewhat or your property has appreciated in value, you may be able to use your home’s equity to fund an investment property purchase. 

With today’s cost-of-living pressures, winter can be a challenging time financially for households, especially with soaring electricity and gas bills.

If you’re looking to buy a property, it’s important to remember that your gambling habits could be taken into account when you apply for a home loan. Your lender will look at any track record of gambling when assessing your financial situation and ability to repay the mortgage. Not only could gambling jeopardise your chances of being approved for a loan, but it could also impact your ability to refinance down the track. Understanding the process When you apply for a home loan, your lender will do an affordability assessment. As part of this, they’ll assess your income (from all sources) against your outgoings (your regular expenses). They’ll also likely check your credit score. If a lender sees evidence of regular gambling transactions as part of your expenses, it may be a red flag. They’ll look at how much money you’re gambling, how frequently you’re betting and what type of gambling you’re participating in. If it’s a small amount you’re gambling relatively infrequently for leisure, it probably won’t raise any alarm bells with the lender. The occasional Powerball ticket, for example, will be considered harmless. However, if it’s an ongoing habit that’s getting out of control, it could limit your ability to secure finance. How to turn things around There are steps you can take to try to maximise your chances of getting approved for a home loan if you do have a history of gambling. Domino your debts: Paying off your debts – whether it be credit card debt, car loan or personal loans – is a good place to start, as it shows you are able to manage your finances effectively. Budget and save: A strong track record of saving will go down well with lenders. Keep putting money aside regularly and grow your savings nest egg. Boost your credit score: You can access your credit score and credit report for free every few months. If you notice any errors in the report, contact the credit provider. The government’s moneysmart website offers tips on how to improve your credit score, such as lowering your credit card limit, paying your utility bills on time and keeping on top of credit card repayments. Stop gambling: If you think your gambling may jeopardise your home loan application, try to reduce or quit gambling. Seeking help There are many resources available to help you tackle a gambling addiction. GambleAware offers tools and support for those who are looking to stop gambling. The site includes a gambling assessment to see how the habit may be impacting your life, as well as research and links to gambling support groups. You can also get immediate support from Gambling Help Online on 1800 858 858. It’s free and confidential. Other options can be found on the Health Direct website . Like to talk through your finance options? If you’d like to know more about how your gambling habit may affect your home loan application, we’re here to answer your questions. Talk to us confidentially about your financial situation and we’ll help you work towards getting the finance you need.

Retirement often conjures up images of afternoons on a golf course or adventures in a motorhome, of growing your own vegetables or spending quality time with the grandkids.

The Labor party pulled off a landslide victory in the recent federal election. So, what does this mean from a housing perspective?

End of financial year tax tips for investors 

Negative gearing is a popular investment strategy in Australia, but it’s also a term that often comes up in the media, particularly when there’s an election looming, like right now. Let’s take a look at what it means, what capital gains tax (CGT) is and why you need to know about these terms if you plan to invest in property.

It’s Federal Budget time, so let’s cut to the chase. What’s in it for aspiring homeowners looking to purchase a property in 2025?  Here are some of the key takeaways that could affect you.

The Reserve Bank of Australia (RBA) has cut the cash rate and interest rates have come down.

At its February board meeting, the Reserve Bank of Australia (RBA) reduced the cash rate by 25 basis points to 4.10%, marking the first cut in more than four years. For 14 months, the RBA held the cash rate steady at 4.35%, maintaining that they needed clear evidence of inflation sustainably moving toward their 2–3% target before making any adjustments. The latest data from the December 2024 quarter showed that the RBA’s preferred inflation measure dropped to 3.2%, down from 3.5% in the previous quarter, signalling enough progress to justify easing monetary policy. How will the rate cut affect my repayments and how much will I save? All major lenders and banks have officially agreed to pass on the rate cut, meaning that mortgage holders who are currently on a variable interest rate should have received a 0.25 reduction to their interest rate. This will mean that you will save some cash on your monthly interest repayments. The amount saved will depend on your current interest rate and loan size. As an example, on a loan of $1,000,000 over a 30 year loan term at a variable interest rate of 6.00%, you will save approximately $160 per month with the 0.25 rate cut.* How will the rate cut help boost my borrowing power? Rate cuts mean more borrowing power because when interest rates decrease, the monthly loan repayments become smaller, allowing individuals to qualify for a larger loan amount as a larger portion of their income can be allocated towards debt servicing, effectively increasing their borrowing capacity. A new Canstar analysis shows that a single person earning the Australian average full-time wage of $100,292 currently has a borrowing capacity of $534,200. But that same person could potentially borrow an additional $12,000 more from the bank with the cash rate cut to 4.10%.** Will home values rise? Lower interest rates make buying more attractive by increasing affordability and borrowing power, which leads to overall better buyer sentiment. This historically results in more buyers in the market and can drive housing values higher. For those looking to purchase property, particularly for first home buyers we recommend focusing on getting your pre-approval sorted from now and securing a place before the prices start to climb. Will there be more rate cuts from here? Despite the cut, the RBA board emphasised that sustainably returning inflation to the 2-3% target remains its priority, and suggested further interest rate cuts are not guaranteed. It said it would continue to make its decisions based on incoming economic data, as well as global and financial market developments. What home loan benefits can accounting professionals’ access? Despite changes in the market, the benefits available for accountants remains unchanged. With evidence of professional body membership you could access certain market advantages, such as home loans with just a 10% deposit and waived Lender's Mortgage Insurance. These benefits can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for accountants such as Accounting Home Loans to gauge what’s best for you. Get in touch: (02) 9127 5557 enquiries@accountinghomeloans.com.au www.accountinghomeloans.com.au *Calculation assumes payments are made monthly, pay off the principal and interest, and there are no changes to bank fees. **Source: Canstar.com.au . Based on an owner-occupier paying principal and interest taking out a 30-year loan at the current average new customer rate of 6.24% or 5.99% after an RBA rate cut. Based on CBA's serviceability calculator and assumes borrowers have no debts, minimal expenses and no dependents earning the current average full time ordinary time earning wage as recorded by the ABS. This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Credit Representative (557666) is authorised under Australian Credit Licence 389328.

Are you finding it difficult to save money or stick to a budget? You’re certainly not alone. Working out a realistic budget is an effective way to take control of your finances and smash your saving goals.  If you’re looking for tips to get you started with budgeting, be sure to keep reading on!