ca-home-loans

Offset or redraw: Things to consider as rates rise

Thu, 30 Apr 2026 00:24:15 GMT

With interest rates rising, many borrowers are taking the time to review their home loan arrangements. A review of your loan structure may assist in managing repayments, subject to your individual circumstances.

Offset accounts and redraw facilities are features offered on some home loans. When used appropriately, they may help reduce the interest payable and overall loan costs, depending on individual circumstances.

Offset accounts

An offset account is a transaction or savings account that’s linked to your home loan. The money you have in this account ‘offsets’ your loan balance when your lender calculates interest.

So, if your loan balance is $500,000 and you have $50,000 in a 100% offset account, the bank will only charge you interest on $450,000.

You generally don’t earn interest on the balance held in the offset account. Instead, the money is actively reducing interest charges.

Key benefits:

Interest savings. The balance in the offset reduces the interest charged on your home loan.
Flexibility. Funds aren’t locked away. You can access the money immediately for daily transactions and ATM withdrawals.
Tax-effective savings on interest. Interest savings are generally not treated as taxable income. However, tax outcomes can vary depending on your individual circumstances, so it’s important to seek advice from a qualified tax professional. Offset accounts may provide an effective after-tax benefit similar to your loan interest rate, depending on your circumstances.
Help reduce the loan term over time. By reducing interest, a bigger chunk of your regular repayment goes towards the principal, reducing the overall mortgage term.
Good for investors. For investment properties, using an offset account instead of a redraw facility ensures that if the money is withdrawn, the tax deductibility of the loan interest is maintained.

Potential drawbacks:

Potentially higher fees. If the offset account comes with a loan package, there may be annual fees attached.
Potentially higher interest rates. In some instances, loans with offset accounts may come with higher interest rates.
Limited availability. Offsets are usually attached to variable-rate loans, not fixed-rate mortgages.

Redraw facilities

With a redraw facility, you can make extra repayments in addition to your minimum fortnightly or monthly home loan repayment. The extra funds reduce the loan balance, which lessens the amount of interest you pay. You can redraw the funds in future as required.

So, if your loan balance is $500,000 and you repay an extra $50,000, the new loan balance is $450,000. The lender will charge interest on that amount.

Key benefits:

Interest savings. By making extra repayments, you reduce the principal loan balance and the interest payable.
Help reduce the loan term over time. Making extra repayments regularly may help you to pay off your mortgage sooner.
Repayment holidays. If you are ahead on repayments, some lenders may allow you to reduce or pause repayments, subject to their terms and conditions.
Less temptation to spend. Your funds may be harder to access than with an offset account, making it easier to save.

Possible drawbacks:

Restricted access. Lenders often set limits on withdrawals (though this could be a good thing and keep you accountable to your savings targets).
Contamination risk for investors. If the redraw is attached to an investment property, using the redraw for personal expenses may impact the deductibility of interest (it’s a good idea to chat to your accountant about your personal tax situation).
Limited availability. Redraw facilities usually come with variable-rate loans, not fixed-rate mortgages.

Please note that while these features may help reduce interest costs, they also come with limitations and may not be suitable for all borrowers .

Why a record number of Aussies are refinancing

In 2025, more than 640,000 homeowners refinanced their mortgage, representing a 20 per cent jump from the previous year.

With multiple interest rate hikes so far this year, many borrowers will be looking to refinance to a loan with a more competitive interest rate or one with interest-saving features.

Like to chat through your finance needs?

Whether refinancing is right for you depends on a range of factors, including your financial situation and goals. If it’s an investment property, you’ll also want to consider the tax implications for offset accounts versus redraw facilities.

To explore which loan structure is right for you, get in touch today.

Why investors are focusing on rental income in 2026

Tue, 28 Apr 2026 04:50:59 GMT

Property investors may be motivated by different goals. With changing market conditions and some areas seeing slower price growth, some investors may be placing greater focus on rental yield and cash flow rather than capital growth alone. This shift may influence both property selection and financing decisions.

If you’re considering investing in property, here’s what to know about rental yields and why they matter.

What is rental yield?

Rental yield is the annual rent generated by a property, divided by its market value and expressed as a percentage. It’s a commonly used measure to help investors assess a property’s income potential.

For example, if a unit rents for $500 per week, it generates $26,000 in annual rent. If the property is valued at $600,000, the gross rental yield would be 4.3%.

The two main types of rental yield are:

Gross rental yield is calculated before costs. It enables investors to quickly compare income potential across different properties in various locations.
Net rental yield is calculated after costs (such as body corporate, property management fees and insurance). This is usually the figure investors are most interested in, because it provides a clearer picture of the property’s income after expenses, although it doesn’t account for all costs such as loan repayments or tax.

What’s a ‘good’ rental yield?

A higher rental yield generally indicates stronger rental income relative to a property’s value. For context, average rental yields across Australia’s capital cities were around 3% for houses and 4.3% for apartments as of March 2026.

Some investors use yield ranges as a general guide, but what’s considered suitable can vary widely depending on individual goals, risk tolerance, and market conditions.

Examples of areas with high rental yields include:

Echuca, Victoria – houses 10.6%, units 13%
Newman, Western Australia – houses 10.3%, units 12.4%
Pegs Creek, Western Australia – houses 11.4%, units 10.2%

Factors affecting rental yield

Rental yield can vary depending on a range of factors, including property type, location, and broader rental and property market conditions.

➢ Property type

Apartments often have higher rental yields than houses, as they may be more affordable to purchase and can generate relatively strong rental income. However, they may also come with ongoing costs such as strata or body corporate fees.

Houses, on the other hand, may have lower rental yields, but are sometimes associated with stronger potential for long-term capital growth.

➢ Location

Properties in some regional areas may offer higher rental yields than those in metropolitan areas, often due to lower purchase prices and, in some cases, limited rental supply. However, these areas may also experience higher vacancy rates, and price growth can be more variable.

➢ The rental market

Changes in rental supply and demand, such as an oversupply or shortage of rental properties, can influence rental returns.

➢ The property market

Market conditions, including whether prices are rising or falling, may also affect rental yield outcomes.

Why rental yields are a key focus in 2026

Rental yield highlights the potential income a property may generate, making it an important consideration for many investors — particularly in the current market environment.

With interest rates and inflation influencing market conditions, some market commentators suggest property price growth could moderate in 2026, although forecasts can vary and are subject to change. As a result, some investors are placing greater focus on rental yield and cash flow, including the income a property may generate on an ongoing basis.

Like to chat about your finance options?

Rental yields can be an important consideration for investors entering the market, particularly in the current environment.

If you’re considering starting your property investment journey, we can help you compare different loans and lenders to find an option that suits your needs and circumstances.

Get in touch today!

This information is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for your circumstances.

Why many first home buyers choose to work with a mortgage broker

Wed, 08 Apr 2026 23:27:32 GMT

Buying your first home is an exciting milestone, but it can also feel overwhelming when everything is new and unfamiliar.

There are many moving parts in the home-buying process, and it can be difficult to know where to start. The good news is that you don’t have to figure it all out on your own. A mortgage broker can guide you through the process and handle much of the heavy lifting from comparing lenders and interest rates to supporting you at every stage of your home loan journey.

It’s no surprise that the majority of Australian borrowers choose to work with a mortgage broker. In fact, 77.3% of all new residential lending in the September 2025 quarter was facilitated by mortgage brokers.

Here are some reasons many first home buyers choose to work with a mortgage broker.

Understand your true borrowing power

One of the first steps in buying a home is understanding your borrowing capacity – that is, how much a lender may be willing to lend you.

While online calculators and AI tools can provide a rough estimate, they may not fully take into account your individual financial circumstances and long-term goals.

As your mortgage broker, we can get a clear picture of your income, expenses, liabilities and assets so that we can estimate how much you may be able to borrow and which loan options could suit you.

We can also organise pre-approval for your finance, so that you’re ready to go when you find the right home.

Helping you explore available options

As a first-time buyer, you may be entitled to various schemes or government incentives to help with your purchase. Examples include the Australian Government 5% Deposit Scheme, First Home Super Saver Scheme, the Help to Buy Scheme, and the First Home Owner Grant .

As your mortgage broker, we’ll explain your options and whether you’re eligible for any government schemes or incentives. We may also discuss different ways to strengthen your application, such as the possibility of a family guarantor arrangement.

Mortgage brokers typically work with a wide range of lenders, from major banks to smaller providers, and can help compare loan options based on your financial circumstances and goals.

Tailored advice for first timers

As your mortgage broker, we’ll be with you each step of the buying journey, from pre-approval through to settlement and beyond.

The 2025 Helia Spotlight report found the top reason home buyers are turning to mortgage brokers to help them navigate the complex property market is for their knowledge and experience. We can explain confusing jargon and ensure you understand the true cost of the loan.

Ready to take the first step?

By using a mortgage broker to understand your borrowing capacity, handle the paperwork and get your finance in order, you can focus on the fun parts of buying your first home.

If you’re thinking of buying your first home, or would like to talk through your potential options, get in touch today! Let’s turn your home ownership dream into a reality.

What happens when you refinance your home loan?

Tue, 07 Apr 2026 05:17:33 GMT

With interest rates rising in recent months, many Australians have seen their mortgage repayments increase. As a result, more homeowners are starting to ask whether refinancing their home loan could help them reduce costs or improve their loan structure.

In fact, refinancing activity has surged. Last year, more than 640,000 homeowners switched their home loan, representing a 20 per cent increase compared to the previous year.

So, what exactly does refinancing involve, and how do you go about doing it?

Reasons to refinance

Refinancing involves taking out a new home loan to replace your existing one, either with your current lender or with a different provider. Once approved, the new lender pays off your existing loan and establishes the new mortgage in its place.

Common reasons to refinance include:

To access a more competitive rate.
To potentially reduce your mortgage repayments.
To change loan terms – for example, a shorter loan term may help you pay off your loan sooner, although the repayments may be higher
To access available equity – for renovations, debt consolidation or for other big-ticket expenses.
To change your loan structure – e.g. from variable to a fixed-rate mortgage.
To access interest-saving loan features like offset accounts or redraw facilities.

What’s the process?

The refinancing process is similar to applying for a new home loan, but it can feel much simpler when you know what to expect. Here’s how it typically works:

1. Review your goals

Start by chatting with your broker about why you’re looking to refinance – whether it’s to get a more competitive rate, access equity, or improve your loan features. We can also help you weigh up the potential costs involved, such as valuation fees, exit costs, or break fees if you’re on a fixed rate.

2. Compare your options

We’ll compare a range of lenders on your behalf to help identify loan options that may suit your needs and circumstances.

3. Get your documents ready

Similar to your original application, you’ll need to provide supporting documents like proof of identity, income details, employment information, and a summary of your assets and debts.

4. Submit your application

Once everything is ready, we’ll submit your application. The lender will usually arrange a valuation of your property, and if you’re borrowing more than 80% of its value, lenders mortgage insurance (LMI) may apply.

5. Approval and paperwork

If your loan is approved, you’ll review and sign the final documents before the new lender arranges to pay out your existing loan.

6. Settlement and next steps

Once your old loan is paid out, your refinance is complete. From there, you may be able to benefit from a more competitive rate, improved features, or access to available equity to support your financial goals.

Can I stay with the same lender?

If you’re happy with your current lender, you can absolutely stay with them – especially if your loan still suits your needs and you’re comfortable with the service you’re receiving.

But it’s still worth taking the time to see what else might be available, as rates, features and offers can change over time, and there may be opportunities to improve your overall loan setup.

Some long-term customers may find that newer borrowers are offered sharper rates or promotions – a difference sometimes referred to as the “loyalty tax”. Exploring your options, whether that’s negotiating with your current lender or considering a new one, can help you understand what’s out there and whether you’re still getting a competitive deal.

Like any major expense, it pays to shop around and compare your options to see what might suit you best.

What about cashback offers?

Some lenders may offer incentives, such as cashback offers, to attract new customers – which can be appealing depending on your circumstances.

You should be aware that there may be strict eligibility criteria attached, such as a minimum loan size. Importantly, the loan may not necessarily be better for you financially in the long run, so it’s important to consider the big picture before jumping on a cashback offer.

Is now a good time to refinance?

The decision about whether to refinance depends largely on your individual circumstances and goals. However, with mortgage rates increasing, it may be worth reviewing your home loan at the very least, to consider refinancing if it makes financial sense.

To find out whether refinancing could be the right move for you, get in touch today!

3 tips to navigate the risks and rewards of interstate investing

Thu, 26 Mar 2026 06:22:18 GMT

When it comes to buying an investment property, you don’t necessarily need to limit yourself to your own backyard.

Looking beyond your local market, including interstate, can open up new opportunities when the timing is right. Often referred to as “borderless investing”, this approach allows you to tap into growth in different regions.

However, investing in a different state comes with its own considerations. Understanding how it works, where the opportunities may be, and what to watch out for can help you make more informed decisions.

Here are three reasons borrowers are interested in interstate investing.

❖ Diversify your property portfolio

One way some investors attempt to manage risk with their investments is to diversify. By spreading your investments across different locations, you’re not relying on just one market. If one area slows down, another might still be performing well. It may be a helpful way to balance your portfolio over time, reduce the impact of local downturns, and tap into a wider range of growth opportunities.

That said, diversification doesn’t remove risk entirely. Property markets can shift due to factors like economic conditions, housing supply and demand, and changes in interest rates.

❖ Seize opportunities

Investing interstate can give you access to markets that may be more affordable or experiencing stronger growth at different points in the cycle. Because conditions can vary across states, looking beyond your local area may help uncover opportunities you might not find closer to home.

For example, some markets have recently outperformed others. Perth, Brisbane and Adelaide have seen solid growth over a recent rolling quarter, with housing values rising 6.8%, 4.8% and 4.3% respectively, while Sydney and Melbourne recorded slight declines of -0.1% and -0.4%.

This highlights how opportunities may emerge within different parts of the country at different times. That said, markets can shift, and past performance isn’t always an indicator of what’s ahead.

❖ Benefit from tax perks

Another reason some property investors consider buying interstate is the potential difference in land tax thresholds and rates across states or territories.

Land tax is an annual levy based on the value of your investment property (excluding your principal place of residence). This tax is managed independently by each state or territory (not applicable in the Northern Territory ).

Keep in mind that Australian stamp duty rates and thresholds may also differ by state or territory.

Land tax laws are complex and change frequently. As tax outcomes depend on individual circumstances, it may be worth speaking with a qualified tax professional before making decisions based on tax considerations.

Key considerations to help balance the risks and rewards

Before investing interstate, it’s important to take a step back and assess both the potential upsides and the risks involved.

With that in mind, here are some key considerations before getting started.

1. Do your research

Before buying interstate, it’s important to do your homework. This means understanding the broader market, the city or town, and the specific suburb.

What are the rental yields and vacancy rates like?
How is capital growth tracking? What infrastructure is planned? What is the expected population growth, and how might it affect housing supply and demand?

Having access to this kind of insight can help you make more informed investment decisions, rather than relying on market sentiment or short-term trends. If you’d like a clearer picture of where opportunities may lie, get in touch for a personalised property report.

2. Choose your strategy

Before buying interstate, it’s important to consider your overall goals.

Do you plan to buy and hold, and ideally benefit from capital growth?
Maybe you want to buy and flip, and hope to turn a profit in the short term by adding value through renovations?
Perhaps you’re a rentvestor intending to rent where you want to live, while owning an investment property in a more affordable or high-growth area.

It may also be worth thinking about whether the property is likely to be negatively geared, where losses may be offset against your income. Or perhaps your property is positively geared, where rental income exceeds expenses.

Taking the time to define your strategy upfront can help guide your decisions, keep your investment on track, and ensure the property you choose aligns with your long-term goals.

3. Get a reliable local team

If you’re buying interstate, you’ll need a team of professionals on your side.

A reputable buyer’s agent can offer local market insight, help identify suitable properties, and negotiate or bid on your behalf. You may also need a conveyancer or solicitor to help with the legal transfers, as well as a building and pest inspector to assess the property’s condition.

Lastly, it may also help to speak with an experienced finance broker when considering your borrowing options.

How we can help

Navigating interstate investing and finding a loan that suits you can feel complex, but having the right support can make a difference. A broker can help you understand your options, compare lenders, and explore loan structures that may align with your goals.

We work with a wide range of lenders and can help you get a clearer picture of what may be available based on your individual circumstances. If you’d like to explore your options, feel free to reach out – we’re here to chat and help you figure out what might work for you.

Disclaimer: The information provided is general in nature and does not constitute financial, tax or credit advice. It does not take into account your personal objectives, financial situation or needs. You should consider seeking independent professional advice before making any investment decisions.

Are you secretly paying ‘loyalty tax’ on your home loan?

Tue, 24 Mar 2026 00:56:04 GMT

Loyalty is an honourable trait, but not necessarily when it comes to your home loan.

Sticking with the same lender indefinitely may mean you’re paying what’s known as a ‘loyalty tax’. This often shows up as higher interest rates compared to what new customers are offered.

With interest rates on the rise, now could be a good time to check whether you are paying loyalty tax and it may be worthwhile exploring your options along the way.

What is loyalty tax?

Loyalty tax refers to the extra cost some borrowers pay simply by staying with the same home loan provider over time.

To attract new customers, lenders often advertise lower interest rates or special offers that aren’t automatically passed on to existing borrowers. As a result, long-term customers can end up paying a higher rate without realising it.

In some cases, the longer you remain with one lender, the more a loyalty tax can creep in. That’s why reviewing your home loan from time to time can help ensure you’re still on a competitive rate.

Interest rates aren’t the only area where loyalty tax can apply. In some cases, long-standing customers may miss out on special offers, encounter additional fees, or receive a lower standard of customer service than new customers.

Why it pays to review your home loan

Whether it’s your utilities or your mortgage, comparing providers can help you identify areas to save. While the amounts may seem small at first, they can accumulate over time and contribute to broader financial goals.

What to do if you’re paying loyalty tax

Compare rates

Start by checking how your current interest rate compares with the rates your lender is advertising to new customers. If there’s a noticeable difference, it may be time to take action.

Request a lower rate

You may also consider negotiating directly with your lender to see if a more competitive rate is available. In some cases, lenders may apply a discretionary discount to retain existing customers.

Having a strong credit history and a lower loan-to-value ratio can help strengthen your negotiating position.

Shop around and refinance

If you’d like to see what else is out there, we can compare home loans across the market for you. If we find a more suitable or competitive option, refinancing could be worth a look and it may even give you access to new customer offers.

We’ll break down the potential savings and explain any costs involved, so you can decide with confidence.

Ready to say goodbye to loyalty tax?

When it comes to home loans, it doesn’t pay to set and forget. Regularly reviewing your mortgage and comparing options can help reduce the risk of paying a loyalty tax.

The good news is that refinancing is generally more straightforward than buying a property. There’s no contract of sale, no real estate agents, and often far fewer parties involved – just us and, in many cases, your lender.

To get started, get in touch today and we’ll help you run the numbers.

First home buyer decisions: Apartment or a house on land?

Mon, 09 Mar 2026 23:26:01 GMT

If you’re looking to buy your first home in 2026, one of the first big questions is whether an apartment or a house makes more sense for you, which often comes down to your lifestyle, financial situation and what you’re working towards.

Each option comes with its own benefits and trade-offs, so understanding the differences can help you make a more confident decision.

Let’s take a look at the pros and cons of each.

Apartments

Pros

Lower price tag

Buying an apartment may allow you to get into the market sooner, as apartments are usually more affordable than houses.

Take Sydney, for example, where the median house price is more than double the city’s median unit price.

A lower purchase price usually means a smaller deposit and a more manageable mortgage.

Capital growth potential and rental appeal

Historically, houses have outperformed apartments in capital growth across most Australian cities. However, recent data shows that apartment prices have been growing faster than house prices in most capital cities – although Melbourne buyers are not quite convinced.

If you decide to rent the property out in future, apartments can possibly offer an attractive rental yield (the annual rental income as a percentage of the property’s value) in some areas.

Lower running costs

Living in a smaller property means less electricity and gas usage, and therefore lower utility costs.

Less maintenance

Apartment living often comes with less maintenance and common areas are typically looked after by strata management. This means you’re less likely to spend weekends mowing lawns or tending gardens.

Security and lifestyle appeal

In some cases, apartments may provide added security compared to suburban houses, particularly in complexes with controlled access.

They’re also frequently positioned in central or well-connected locations, close to cafés and other everyday amenities.

Cons

Strata or body corporate constraints

Apartment living often comes with strata or body corporate rules, such as limits on pets, renovations, or noise. While these help manage shared spaces, they may feel restrictive for some owners.

Costly fees

Depending on the amenities, strata fees can be costly and are an ongoing expense. Over time, these fees can add to the overall cost of apartment ownership.

Less space and privacy

Living in a smaller space is not for everyone. Common areas can also mean sacrificing your privacy, as you’ll be sharing these areas with neighbours.

Oversupply risk

In suburbs with a high number of apartments, oversupply can affect demand and resale value. Boutique complexes with fewer units may perform better than large high-rise developments.

Houses

Pros

Long-term capital growth potential

Houses have traditionally delivered stronger long-term capital growth, largely due to the value of the land. That said, apartments in some cities have recently recorded faster short-term growth .

No strata constraints or fees

Unlike apartments, houses don’t come with strata fees or body corporate rules. This generally gives owners more freedom to renovate, extend, or personalise their home.

More space and privacy

Houses typically offer more internal and outdoor space, along with greater privacy. This can be appealing if you value room to entertain, garden, or enjoy facilities like a pool without interruption.

Cons

Higher entry point

Houses generally come with a higher purchase price and require a larger deposit. For some buyers, this may mean looking further from the CBD or their workplace to stay within budget.

More maintenance

With more space comes more upkeep. Houses typically require ongoing maintenance, and older properties can involve higher repair and renovation costs over time.

Higher costs

A higher purchase price can also mean higher upfront costs, such as stamp duty. Ongoing expenses like insurance and general upkeep may also be higher compared to an apartment.

Ready to get started?

There’s no universal ‘right’ answer as to whether an apartment or house is better. It all depends on your budget, lifestyle and long-term goals.

If you’d like help understanding your borrowing capacity or talking through your purchase plans, get in touch today . We can review your finances and help you assess which type of property may be the best fit for you.

Property investment trends for 2026

Tue, 24 Feb 2026 00:41:51 GMT

For many property investors, 2025 offered compelling reasons to buy.

The cash rate came down three times and property prices soared in many markets, driven by lower rates, tight housing supply and government incentives. Meanwhile, rents continued to climb across much of the country.

So, following February’s cash rate increase, what might investors expect next? Below we explore key investment property trends likely to shape the market in 2026.

Uneven price growth across markets

National home values are projected to continue to rise, but growth is unlikely to be evenly spread.

Insights from Cotality’s Decoding 2026 report show that 87% of real estate agents and financial professionals across the property and finance sectors expect dwelling values to rise over the year ahead, while only 3.5% anticipate prices to fall.

Queensland, Western Australia and South Australia are considered the most bullish markets , with strong price performance supported by high population growth and limited supply.

Looking ahead, Perth, Adelaide and Brisbane are expected to outperform Sydney and Melbourne, where price momentum softened towards the end of 2025.

Increased demand for dual-occupancy properties

Properties that can accommodate multi-generational living are expected to be in high demand throughout 2026.

As both housing prices and rents rise, more families are choosing to live together, making dual-occupancy homes particularly attractive to investors. This includes properties such as a main residence with a granny flat, duplexes, side-by-side townhouses, or homes with a detached studio or cottage that functions as a second dwelling.

These types of properties can offer investment benefits, including higher rental income, greater flexibility and reduced risk.

An uptick in regional investing

Investors seeking value outside the capital cities may have regional areas on their radar in 2026. Regional markets often offer lower entry costs than capital cities, high rental yields, and the opportunity for investors to diversify their portfolios across geographic locations.

In terms of price growth, regional areas have remained comparatively strong , yet they’re still feeling some pressure. Flexible working arrangements and lifestyle migration has meant more people are thinking of moving to regional areas, increasing demand for housing.

In 2025, regional dwelling values rose 9.7%, compared to 8.2% across the combined capital cities. Western Australia stood out, with a 16.1% annual increase, followed by regional Queensland, which saw values rise 12.6%. Regional Victoria had the lowest growth, up 6% in 2025.

Energy efficiency a priority

Energy efficiency and climate resilience are becoming increasingly important considerations for investors.

Properties with features such as solar panels, battery storage, electric vehicle charging, quality insulation and smart energy management systems are expected to be more appealing to tenants in 2026, which in turn can enhance long-term investment appeal.

Young buyers looking to rentvest

Rentvesting is expected to gain further momentum in 2026, particularly among younger buyers navigating affordability challenges.

Rentvesting involves renting in a location that suits your lifestyle, while purchasing an investment property in a more affordable area with the potential for solid rental returns.

This approach can suit buyers who value flexibility and lifestyle, are priced out of their preferred suburb, but still want to build wealth through property ownership.

Thinking about investing?

With the right knowledge and support, property investors can navigate 2026’s property market with confidence and take advantage of emerging opportunities.

If you’re considering purchasing an investment property this year, get in touch. We can help you understand your borrowing capacity, compare lender options and structure your finance to support your long-term investment goals.

Is your home loan still healthy? Here’s what to check.

Tue, 10 Feb 2026 00:28:15 GMT

As interest rates shift and the property market evolves, your mortgage may not be something you set and forget. Just like your financial goals, your home loan needs can change over time, which is why it’s worth checking in regularly.

If you haven’t reviewed your loan in a while, now could be a good time to do a quick health check. Read on to see what your home loan health check could uncover.

Why reviewing your home loan matters

What worked when you first bought your home might not be the best fit anymore. A home loan review can help you assess where things stand today and whether there’s room to improve. Here’s what you might uncover:

1. More competitive rates

Lenders are constantly updating their rates and offers. You might now have access to a more competitive offer than when you first signed your loan, potentially saving you interest over the life of the loan.

2. Lower monthly repayments

Securing a lower rate or adjusting your loan structure can reduce your repayments and free up extra cash. This can give you more room in your budget or allow you to redirect funds toward savings or investments.

3. More suitable loan features

Offset accounts, redraw facilities, and flexible repayment options can influence how effectively you manage your mortgage. These features can help you reduce interest and gain more control over your day-to-day finances.

4. A loan structure that fits

As your goals change, your loan should evolve with you, and changes in your equity position may allow you to restructure your loan more effectively. Whether that’s accessing equity for renovations or investments or rebalancing your loan to better match your long-term goals.

5. Simplified finances through debt consolidation

If you’re juggling credit card debt or personal loans, rolling them into your mortgage could reduce your overall interest rate and make repayments more manageable, giving you a clearer financial picture.

6. Improved equity position

As your property value grows and your loan balance reduces, your loan-to-value ratio (LVR) may improve. A lower LVR may provide more competitive rates, reduce or eliminate lenders mortgage insurance (LMI), and open up more refinancing options.

Small changes may help to reshape your financial future

Even if your loan seems to be running smoothly, reviewing it regularly may highlight areas to consider. Small changes such as discussing competitive rates or adjusting your repayment frequency (for example, switching to fortnightly payments) may affect your loan over time.

Too often, homeowners stick with the same loan for years without exploring other options. A home loan health check gives you the chance to stay informed and make sure your mortgage still aligns with your lifestyle and financial goals.

Ready to review your loan?

Your mortgage is one of your larger financial commitments, and it may benefit from regular review. As the market shifts and your personal circumstances evolve, a review may help you consider your available options.

Reach out if you’d like a home loan health check to see whether your loan still aligns with your current circumstances.

Your budgeting guide to buying your first home

Thu, 22 Jan 2026 04:26:44 GMT

Nothing compares to that feeling of buying your first home. If you’re planning a 2026 property purchase, saving the deposit is often one of the biggest hurdles. Careful planning and perseverance can play a role in working towards this goal.

Here are some tips to help you work towards your savings target.

Set a savings goal

The first step is to work out how much you’ll need for your deposit. Check out what properties in your preferred suburbs are selling for, and from there, you can work backwards and estimate the amount of deposit you’ll require.

You may like to look into the Australian Government’s 5% Deposit Scheme , which allows eligible first-home buyers to enter the market with just 5% deposit. If you’re not planning to use the scheme, aiming for a 20% deposit may help you avoid lenders’ mortgage insurance (LMI).

Create a budget

Next, create a monthly budget. This can help you to understand how much you may be able to save.

Factor in your total monthly income after tax, then list all of your expenses. Don’t forget to include regular costs like rent, utility bills, insurance, and streaming services, as well as unexpected expenses like your car repairs.

There are loads of budgeting tools available to help with tracking expenses. Some apps even break down and track your expenses as well as provide suggestions to help you work towards your saving goals.

Automate your savings payments

If you don’t have a separate savings account yet, opening one may be a useful first step – for example, an account that offers interest and has low or no ongoing fees.

Setting up an automatic monthly transfer may help you build savings over time, with less day-to-day effort.

A strong savings track record is something lenders look for when assessing home loan applications, so this habit may be relevant when you’re preparing to buy.

Reduce spending

If you’re looking to make progress towards your savings goals, you may need to cut down on discretionary spending. That might mean saying goodbye to your gym membership and instead exercising outdoors. Joining the local library instead of buying books new. Or cutting down on meals out and limiting entertainment such as streaming services.

There are also ‘no spend challenges’ shared on social media, such as limiting clothing purchases for a period of time or reducing how often you eat out. Some people find these approaches to be helpful when reviewing their spending habits.

Ways to increase income

Some people consider ways to generate additional income when working towards a savings goal. This might include options such as tutoring, taking on additional hours at work, or exploring a side project.

You may also choose to review items you no longer use, such as sporting equipment, musical instruments or collectibles, and consider whether selling them aligns with your circumstances. Small amounts can contribute towards a savings goal over time.

Talk openly about your goals

Talking to your family and friends about your home buying goals can be helpful for some people in staying mindful of their plans. Social catch ups might look a little different in 2026, such as more dinners at home with friends rather than going out. Over time, these adjustments may support your savings efforts.

Being prepared

Buying your first home is exciting, and we’re here to provide information and support throughout the process.

As your finance broker, we can help you understand how much you may be able to borrow, explain the costs involved in buying a home (such as stamp duty and legal fees), and discuss finance options including pre-approval.

We can also explain whether you’re eligible for government incentives, such as the First Home Owner Grant or the First Home Super Saver Scheme . And if your deposit isn’t quite there yet, we can talk through what alternative options could be available to you.

Get in touch if you’d like to discuss your options.

How young Australians are navigating housing affordability challenges

Thu, 22 Jan 2026 04:22:36 GMT

For many young Australians, home ownership can feel more like a distant dream than something within reach. Rising living costs, strong property price growth and slow wage increases have put real pressure on those hoping to buy their first home.

Research by Deloitte Access Economics earlier this year, highlighted just how challenging the landscape has become. Average home prices rose 67% from $548,000 to $915,000 in the decade to 2023, while average weekly incomes for Australians aged 21 to 34 only grew 20%.

The research found that major milestones like leaving home and starting a family are now being delayed. In 1981, around a third of 20 to 24-year-olds lived with their parents, but by 2021, that number had doubled to 63.8%. Nowadays, 40% of young Australians aged 25 to 34 rely on family assistance to get into the housing market.

With property prices soaring across the nation, there’s no doubt affordability is a key factor hindering entry into the market. But if you are an aspiring first-home buyer, it’s important to remember that with the right strategy and guidance, home ownership can be achievable.

Here are some of the ways you might be able to get into your own home sooner.

Help to Buy

Help to Buy is a new shared equity scheme designed to make home ownership more accessible. The Australian Government can contribute up to 30% (for existing homes) or 40% (for newly built homes) to your mortgage. With this scheme, you will only need a 2% deposit.

Applications opened on 5 December 2025, with 10,000 spots available each year. There are income limits of up to $100,000 for individual applicants or $160,000 for single parents and joint applicants.

5% Deposit Scheme

The 5% Deposit Scheme is open to all first-home buyers and allows you to purchase your first home with a 5% deposit, without having to pay Lenders’ Mortgage Insurance (LMI).

There are property price caps, but there are no limits on income or scheme places. The 5% Deposit Scheme (formerly known as the Home Guarantee Scheme) has already helped over 248,000 Australians get a leg up on the property ladder since 2020.

First Home Super Saver Scheme

This scheme allows you to save a deposit for your first home using your super .

You make extra voluntary contributions to your super fund, so that you can grow your saving faster. The benefit is you can make the most of lower tax rates.

When you’re ready to purchase, you can apply to withdraw your savings plus associated earnings and use them towards your first home deposit.

Support from family

There are a few different ways your parents or a loved one may be able to help you enter the property market.

Your parents might provide a cash gift towards your deposit (lenders will likely require a statutory declaration), or loan you the money under your own agreement.

They could also act as a guarantor. This is where they use their equity as security for your loan, reducing or eliminating the need for a deposit and helping you to avoid LMI.

Another option is to unlock their equity by refinancing their mortgage, then gifting or lending you the money. There’s also the option of joint ownership, meaning you purchase the property together.

It’s important to assess the risks involved with each scenario and seek professional advice, and to make sure everything is in writing to avoid any misunderstandings.

Ready to get started?

Buying your first home can feel overwhelming, but you do not have to navigate it alone. If you would like to understand your borrowing options and start building a plan with confidence, we are here to help.

Get in touch and let’s chat through your finance questions so you feel supported and ready to take your next step toward home ownership.

2025 in review, what to expect in 2026

Tue, 13 Jan 2026 00:16:46 GMT

Well, that’s almost a wrap on 2025 and what a year it’s been for the property market.

Let’s take a look at some of the highlights from 2025 and see what aspiring property purchasers can expect from 2026.

Looking back on 2025

Interest rates came down

The Reserve Bank of Australia (RBA) started the year with a bang, with a cash rate cut in February of 0.25% to 4.10%.

Rates held steady in April, but borrowers celebrated again in May, when the RBA cut the cash rate a further 0.25% to 3.85%.

The third and final cash rate cut for the year came in August, when the RBA reduced it by 0.25% to 3.60%. Since then, the cash rate has remained on hold.

Inflation

Inflation has taken Australians on a bit of a rollercoaster ride this year. It kicked off 2025 at 2.4% in the March quarter , easing to 2.1% by June – a welcome sign that things were stabilising.

But the calm didn’t last for long. By September , inflation had climbed back up to 3.2%, with the Consumer Price Index rising 1.3% for the quarter, which was the sharpest quarterly increase since March 2023 .

Then came October, when inflation jumped again to 3.8%, signalling renewed pressure across the economy.

Considering the RBA’s target band of 2–3%, this upward trend is far from ideal and continues to shape both economic policy and household budgets.

Property prices

Property prices across Australia soared throughout 2025, driven by rate cuts, low supply and government incentives.

By October, Australia’s home value growth hit the fastest pace in more than two years throughout the month, surging 1.1%, according to Cotality. That marked the strongest monthly gain since June 2023 and pushed the annual growth rate to 6.1%.

Prices continued their upward trend in November, rising 1% nationally and pushing year-to-date growth up to 7.7% .

Overall, national dwelling values are set to close 2025 at least 8% higher . Darwin, Brisbane and Perth were Australia’s top-performing capitals, outpacing Sydney and Melbourne.

New housing initiatives

Government incentives designed to help more Australians get into the market moved the goal posts in 2025.

From October, the Australian Government’s 5% Home Guarantee Deposit Scheme was expanded to include all first home buyers, replacing the former Home Guarantee Scheme. Income caps were removed, property price caps increased, and the scheme became unlimited, meaning any first-home buyer with a 5% deposit could apply.

The Help to Buy Scheme launched on 5 December 2025, with 10,000 spots available each year. Eligible home buyers can purchase with as little as 2% deposit. The Australian Government will contribute up to 30% for existing homes or 40% for newly built homes towards the purchase price. Although, property price and income caps apply in this scheme.

Rents increased

Rents continued to climb in 2025. The median weekly rental value across Australia’s combined capital cities is now $702 per week putting even more pressure on tenants already feeling the squeeze.

Outside the cities, the picture is a little kinder. Regional rents remain noticeably lower, still sitting below $600 a week, offering some welcome relief for those willing to look beyond metropolitan areas.

What’s ahead in 2026

Interest rates may remain stagnant

With recent inflation data shaking things up, economists have now revised their forecasts for where interest rates are headed in 2026.

Experts predict that the cash rate will remain on hold at 3.60% for an extended period.

Although, some economists are forecasting further cuts , with predictions that the cash rate will fall to 3.35% by June next year and to 3.1% by September 2026.

APRA’s high-DTI cap comes in

From 1 February 2026, the Australian Prudential Regulatory Authority will introduce a new 20% cap on mortgages with a debt-to-income (DTI) ratio of six or more, with separate limits applying to owner-occupiers and investors.

This means it could become more difficult for higher-risk borrowers to secure finance when lenders are nearing their cap. Although, most borrowers currently remain well below this threshold.

Market conditions may be more restrained

According to Cotality , market conditions may be more restrained in 2026, as borrowing capacity, affordability and credit assessments impact demand. National property listings remain 18% below the five-year average.

“Supply remains tight, but the demand environment is shifting,” Cotality Australia head of research Eliza Owen said.

“Inflation forecasts have been revised higher, interest rate expectations have adjusted with them, and households are facing stricter borrowing assessments.

“Those factors can temper buyer activity even when stock levels are low.

“Lower value markets may still outperform because they carry less sensitivity to credit constraints, but overall growth is likely to be more measured compared with 2025.”

Together, these factors paint a picture of a property market entering a more cautious phase. While opportunities will still emerge, particularly in lower-value markets, buyers and investors may need to navigate 2026 with a more strategic, measured approach.

Like to chat through your finance options?

After a year of economic shifts and rate changes, 2026 is shaping up to bring fresh opportunities. Whether you’re thinking about refinancing, buying a home or making your next investment move, being informed and having your finances in good shape will make all the difference.

If you’d like to explore your 2026 plans and the finance options available to you, get in touch today.

Your guide to investing in a holiday home

Tue, 09 Dec 2025 01:00:27 GMT

Imagine waking up in a cosy mountain retreat or in a beach shack overlooking the ocean – all in your very own holiday home. Sounds dreamy, right?

Whether you’re after a sea change, a tree change, or simply a place to unwind, investing in a holiday home can be an attractive way to diversify your property portfolio and create a retreat to escape to.

But before you turn this dream into a reality, here are a few reality checks you may need to consider before you dive in.

Plan how you’ll use it

Start by thinking about how often you’ll use the property and when. Your plans for personal use versus renting it out will have a big impact on your finances and potential returns.

Keep in mind that peak tourism periods, like summer for waterfront properties, often bring in the highest rental returns, which might mean forfeiting plans to stay there during those times.

Also, do your research to understand whether other holiday homes tend to rent out seasonally or year-round, as this will affect your income and budgeting.

Research the market thoroughly

As with any property purchase, it’s imperative you do your homework before purchasing a holiday home.

What’s the supply versus the demand like for holiday rentals?

Get to know the local tourism scene and holiday rental market. Will you have to rely on seasonal crowds, and if so, how will you cover costs during quieter times?

Check for capital growth indicators in the local area. It’s a good idea to choose locations that provide access to amenities such as shops, cafes and public transport. Check whether there are any infrastructure upgrades in the pipeline, as this could impact the property’s capital growth potential.

Check the local laws, rules and regulations

You’ll want to get your head around the local requirements for short-term rental accommodation. Regulations vary around the country.

Some areas may have restrictions on short-term holiday letting, or you may need to register the property to operate a short-term rental.

There may also be limits on how long you can live in the holiday home, as well as minimum standards of behaviour and requirements. Local councils may have laws (such as fire safety, noise control, parking or overcrowding) that could affect your holiday home.

There could also be other things like levies to consider. In Victoria, for example, a short-stay levy of 7.5% applies for bookings of less than 28 consecutive days.

Bottom line: do your research and understand your obligations.

Understand the financial implications

You’ll need to be able to cover the ongoing costs of owning a holiday home. Examples include:

Mortgage repayments
Council rates
Home insurance
Public liability insurance
Cleaning fees
Maintenance costs.

It’s important to be aware of the tax implications of owning a holiday home and to chat through these with your accountant or financial planner.

Examples of financial implications to consider:

Tax deductions – You can  claim tax deductions  for expenses associated with earning rental income (interest on the home loan, maintenance costs, etc.), but  only to the extent the home is rented out or genuinely available for rent . See the ATO’s holiday homes page .
Negative gearing – If the property’s costs are greater than the income it produces, you may qualify for tax breaks through negative gearing. This means you can deduct any losses against other income, like your  salary, wages or business income .
Capital gains tax – You may be subject to capital gains tax when you sell, assuming you make a gain. If you own the property for more than 12 months, however, you may qualify for the  capital gains tax discount , meaning 50 per cent of the gain is tax-exempt.
Stamp duty and land tax obligations.

Ready to make it happen?

If you’re ready to take the next step towards owning your dream holiday home, we’re here to help.

Get in touch today to start the conversation about bringing your holiday home dream to life.

Tips for a budget-friendly festive season

Thu, 20 Nov 2025 04:25:36 GMT

The festive season is a time to celebrate, relax and connect with loved ones, but it can also put extra pressure on the household budget.

With the rising cost of living, a little planning can go a long way towards keeping the season merry without overspending. The festive season can be expensive, especially with the current cost-of-living crisis and increasing financial pressures on households.

A study by ASIC last year found that Aussies estimated they would spend an average of nearly $800 a person over the festive season on gifts, holidays and celebrations. For those living paycheck to paycheck, coming up with that extra cash can make the festive season more stressful than magical.

Thoughtful planning is the secret to avoiding overspending. Here are our tips for a stress-free, budget-friendly festive season.

Map out your holiday spending

Planning in advance will help you to create a spending budget for the festive season. This is key if you want to avoid getting into financial trouble.

Create a budget for gifts and start buying them sooner rather than later. Giving yourself a runway to plan out your expenses in the lead up to Christmas can make a world of difference when it comes to managing your outgoings. You may even be able to make the most of end-of season spring sales or Black Friday (28 November) discounts.

Once you have a clear idea of your expected expenses, you can start planning how to generate the extra funds you’ll need. You may have to reduce non-essential spending on things like dining out if necessary.

You could also drum up some additional income by selling unwanted items online, having a garage sale, or by starting a side hustle like pet sitting, tutoring or dog walking.

Ditch costly gifts

Handmade or personalised gifts are a great way to get into the Christmas spirit, without breaking the bank. Think about ways to show people you care about them, without forking out a fortune.

You could bake loved ones special treats or give them a plant cutting from your garden in a hand-painted pot. Even a Christmas card with thoughtful words can be a great way to show your loved ones you care about them.

Plan your festive feast ahead

We all enjoy a good festive feast, but there’s no doubt this can be one of the most expensive parts of Christmas.

Having a set meal plan and buying in advance can be a great way to save money. Grab products when they’re on sale, and stock up on items that may get costly as Christmas approaches.

Also, if you have a big family attending a festive meal, ask each guest to bring a dish. People usually don’t mind contributing, and it will help ease the load (and financial burden) on you.

Avoid maxing out the credit card

At Christmas time, it can be tempting to tap and go, then worry about the consequences later. However, running up your credit card isn’t ideal, as it may lead to overspending and you could struggle to pay off your debt in the new year.

Keep in mind that interest on credit cards can be high, so if you don’t pay it off regularly, you may end up paying a lot more for the items you purchase.

Instead, try to stick to using cash or your debit card, so that you stay within budget and don’t spend beyond your means.

Thinking of a bigger purchase?

If your festive wish list includes a new home or investment property, we can help make it happen.

As your finance broker, we’ll explain your purchasing capacity, organise pre-approval and find you a competitive home loan that suits your goals and aspirations.

Get in touch today to start the conversation.

4 signs to spot a growth suburb

Tue, 04 Nov 2025 00:27:07 GMT

While some property investors prioritise rental yield – that is, how much income a property earns, as a percentage of its value – others see capital growth as the ultimate objective.

There is no guaranteed way to predict the future capital growth of a suburb, but there are growth indicators that can be a strong sign that property prices will increase.

In the current buying climate, with historically low listings and strong demand for available properties, doing your homework is key before buying an investment property. Here are 4 signs to look out for when researching a suburb’s capital growth potential.

Demand is likely to outweigh supply

Ideally, if you can find a suburb where demand is likely to exceed supply, that’s usually a strong indicator of potential growth.

Look at how much available land there is in the suburb. Is there much more capacity to build new houses? If the answer is ‘no’, then property prices may go up.

Also consider the likely population growth in coming years. If more people are expected to move to the area, demand for housing will increase, thereby potentially pushing up dwelling values.

Checking the average property days on the market, discounting rates and auction clearance rates can also help you ascertain the level of demand in a suburb.

There’s strong investment in infrastructure

Say the government is investing in new infrastructure in the area – maybe with a new school, hospital or train line. That may help push housing prices upwards in the near future.

New or improved transport links can make a suburb more attractive to commuters, for example, while other investments in infrastructure can create employment, increasing the demand for housing among workers.

Do some digging online to see what planned infrastructure works are in the pipeline. The local council can also be a good resource to investigate upcoming infrastructure projects.

The suburb is being gentrified

When buyers with higher incomes move into a lower socio-economic suburb and begin making improvements, gentrification happens.

The average income in the area increases, and those individuals spend money on improving the suburb (whether by renovating or by spending locally).

Signs of gentrification include:

New hospitality or retail venues are springing up in previously uninviting areas
Established homes are being renovated
New residential buildings are being built
Larger infrastructure projects are in the pipeline
A younger demographic is moving in.

Once a suburb undergoes gentrification, property prices often head north, so check for the signs that things are heading that way.

Nearby suburbs are experiencing capital growth

If a suburb nearby has experienced a surge in prices in recent years, chances are that growth could trickle across to neighbouring areas.

When you’re doing your suburb research, consider areas that have experienced recent price growth. If there are surrounding suburbs that are more affordable and yet to experience a boom, they may be worth investigating for potential investment opportunities.

Ready for your next move?

If you’ve found a property with strong potential and you’re ready to grow your portfolio, I can help you organise the finance to make your next investment move possible.

Get in touch today to discuss your options.

Common mistakes when buying your first home

Tue, 21 Oct 2025 05:52:06 GMT

First home buyers can now purchase a property with as little as 5 per cent deposit without copping lenders’ mortgage insurance, after the government’s expanded First Home Guarantee Scheme came into effect on 1 October. It’s expected that 70,000 first home buyers will make the most of the scheme in its first year of expanded access.

If you’re looking to purchase your first home, there are a few common mistakes to be aware of before you dive in.

But first, let’s take a look at the expanded scheme and what it means for buyers.

Unpacking the Australian Government 5% Deposit Scheme

The scheme, formerly known as the Home Guarantee Scheme and now branded the Australian Government 5% Deposit Scheme, aims to help more Australians to buy their first home sooner.

Eligible first-time buyers on all income levels can purchase a home with a 5 per cent deposit, without having to pay costly lenders’ mortgage insurance (LMI). The government acts as a guarantor for 15 per cent of the home loan.

Price caps on eligible properties have lifted, and there is now no limit on the number of people who can apply. First home buyers in Sydney, for example, could purchase a $1.5 million home with a $75,000 deposit. A $950,000 home in Melbourne would require a $47,500 deposit.

As a first-home buyer, it’s an exciting time to be entering the market. Here are some common mistakes to be aware of.

Potential pitfalls with first-home purchases

1. Underestimating your purchasing costs

Saving your deposit is only one piece of the puzzle. You also have to consider the other upfront costs of buying a home, which may include:

Stamp/transfer duty
Transfer fees
Building and pest inspections
Legal or conveyancing fees
Loan establishment fees
Moving costs.

There are also ongoing costs to factor into your budget, such as council rates, water and utility costs, body corporate fees (for example, for apartments), maintenance and insurance. All of these need to be included in your budget.

2. Being led by emotion, not reason

It’s easy to fall in love with a property’s aesthetics and potentially blow your budget or overlook its flaws.

Take a critical approach when inspecting properties and make sure the property you settle on ticks your key boxes.

Remember that there will always be another property that you could call home, even if this one falls through.

3. Not getting pre-approval on your finance

Pre-approval is an indication of how much a lender is likely to lend you, based on an initial assessment of your income, expenses, assets and liabilities.

Getting pre-approval gives you a clear understanding of your spending limit, narrows down your property search and strengthens your ability to negotiate with sellers. You’ll be in a better position to make an offer or bid at auction with confidence, knowing your finances are in order and ready to go.

Pre-approval for a home loan usually lasts for 90 days.

4. Skipping the building and pest inspection

You may be tempted to skip a building and pest inspection to save money, but that could ultimately cost you thousands in the long run.

You’ll want to ensure the property is free of structural problems and unwanted pests like termites, or other issues like asbestos or rising damp, before purchasing.

Arrange the building and pest inspection before you sign the contract of sale to avoid unwelcome surprises.

Ready to get started?

Buying your first home is exciting, but it’s important to have experts on your team steering you in the right direction.

As your finance broker, we’ll run through your current financial situation and purchasing goals, then find you the right home loan for your specific needs.

We can also explain whether you’re eligible for any first home buyer government incentives that could help you achieve your goals sooner.

Get in touch today.

Refinancing is on the rise – what’s driving the trend?

Thu, 09 Oct 2025 04:10:28 GMT

With interest rates falling this year, more Australians are taking a fresh look at their home loans. In fact, close to 100,000 borrowers refinanced in the June quarter alone – that’s 21% higher than the same time last year. Put simply, more than 1,000 loans are being refinanced every day.

So, what’s driving this refinancing surge – and could it be worth considering for you too?

To reduce their interest rate or loan term

For many borrowers, the primary motivator to refinance is the potential to secure a lower interest rate with another lender.

With three cash rate cuts totalling 0.75% so far this year, there is fierce competition among home loan providers to lock in borrowers. Many lenders have reduced interest rates in the hope of getting more borrowers through the door, while holding onto existing ones.

Some borrowers are also choosing to refinance into shorter loan terms. If your income has grown or you’re in a position to pay off your loan sooner, this can reduce the overall interest paid across the life of the loan.

To access equity

Many borrowers choose to refinance in order to access the equity in their property. Equity is the difference between what you owe your lender and the current market value of your property.

With national home values on the rise for eight consecutive months and Australian house prices at a record national average , you may have more equity built up than you realise.

Refinancing allows you to tap into that equity, which can then be used for renovations, an investment property, or even helping your kids with education costs.

To access additional loan features

Some borrowers refinance to access loan features such as offset accounts or redraw facilities, which can help reduce interest while giving you flexibility with your repayments.

Others switch between fixed and variable rates, depending on what suits their situation. With recent rate cuts, some banks have lowered fixed rates, making them attractive to borrowers who want certainty over repayments.

To consolidate debt

For those with multiple different types of debt, such as a car loan, personal loan, home loan and credit card debt, refinancing to consolidate debt may be worthwhile.

Rolling all your debts into a loan with a lower interest rate and one repayment can be beneficial, but there are risks involved. It’s important to speak to a finance professional and weigh up your options before deciding whether debt consolidation is right for you.

Like to explore your refinancing options?

Experts expect refinancing activity to remain strong this year. If you’ve been with the same lender for a while, or if it’s been a few years since you reviewed your home loan, now could be the right time to see what’s available. Talk to us today and we’ll compare the market for you, step you through what potential options are available.

Big changes to the First Home Buyers 5% Deposit Scheme

Thu, 02 Oct 2025 05:10:51 GMT

From 1 October 2025, the government’s First Home Guarantee scheme will expand, making it possible for more Australians to buy a home with a deposit as low as 5%.

Whether you’re preparing to buy your first property or simply watching how the market shifts, these updates could play a big role in shaping your plans this spring.

What is the First Home Guarantee Scheme?

The First Home Guarantee is part of the Home Guarantee Scheme, an Australian Government initiative designed to help home buyers with a small deposit to purchase a property.

Under the scheme, eligible home buyers with a minimum 5% deposit can purchase a home without having to pay costly lender’s mortgage insurance. Housing Australia provides a guarantee of up to 15% of the property’s value to participating lenders, allowing purchasers to borrow up to 95% of the property’s value.

To be eligible , you must be a first-home buyer or not have owned a property in Australia in the last 10 years (applies to both in a joint application).

Previously, there were income caps applied ($125,000 for individuals or $200,000 combined for couples), along with property price caps and place limits.

What are the changes?

From 1 October 2025, the scheme will be expanded to help more Australians buy their first home. Labor originally planned to introduce these changes in 2026, but they are being brought forward.

These changes include:

No place limits: any Australian first home buyer who has saved a 5% deposit can apply.
No income caps: first home buyers with higher incomes can access the scheme.
Higher property price caps: for example, Sydney’s cap will increase from $900,000 to $1,500,000, and in Brisbane, it will rise from $700,000 to $1,000,000.
Simpler access in regional areas: Regional First Home Buyer Guarantee will be replaced by the expanded scheme.

What does this mean for buyers?

For first-time buyers, the scheme could shorten the time it takes to save for a deposit. Let’s look at a few examples, courtesy of Cotality .

In Melbourne, the median home value is now $803,242. It would take the average first-time buyer nine years to save a 20% deposit of $160,685 (based on modelling income estimates from ANU Centre for Social Policy Research of median household income as at March 2025). However, under the scheme, they could save a 5% deposit of $40,171 in 2 years.

In Sydney, the median home value is $1,228,435. Saving a 20% deposit of $245,687 would take 13 years on average, but under the scheme, they could save a 5% deposit of $61,422 in 3 years.

What does this mean for property prices?

While the changes to the scheme are positive in the sense that more first-home buyers will be able to enter the market, some experts say the downside is that it may increase competition for housing stock and place upward pressure on property prices.

Treasury department modelling suggests the scheme will add 0.5% to home prices after six years. Other experts believe the scheme, combined with falling interest rates, will push prices higher than that and impact affordability.

Like to know more?

If you’d like to chat about your eligibility for the scheme, get in touch and we’ll run through the criteria. As your finance broker, we’ll explain your borrowing capacity, organise pre-approval with a participating lender and walk you through the home loan application process.

Get in touch today.

Should you buy new or established? Here’s what to consider

Tue, 23 Sep 2025 01:28:23 GMT

Buying a home comes with one of the biggest decisions you’ll face – do you go for a brand new build or choose an established property? Each option has its own advantages and trade-offs, and your choice often depends on your goals, lifestyle and budget.

Housing Industry Association (HIA) research found sales of new detached homes increased by 18.8% in the three months to June 2025 compared to the first quarter, representing a three-year high.

Here’s a closer look at the pros and cons to help you weigh up which could be the better fit for you.

The pros of buying new

Less repair and maintenance

Older properties can be costly to maintain, but with a brand new one, you’re unlikely to need to fork out much for repairs and maintenance, at least for the first few years. If there are issues with the building or appliances, they will likely be covered under warranty.

Energy efficiency

New homes have to meet certain energy efficiency standards, which can mean lower power bills and a more comfortable living environment. It also reduces your environmental footprint.

Room to customise

Depending on the new build, you may be able to customise the property as per your preferences, whether you want earthy colours and natural materials like wood and natural stone, or bold wall paper and art deco design vibes.

Renovating and transforming an established property, on the other hand, can be costly and time-consuming.

Depreciation opportunities

For investors, new homes can offer depreciation perks, which could improve tax savings. You may be able to claim wear and tear on a new property as a tax deduction and spread the costs over several years.

The potential downsides of buying news

Building can be stressful

Unlike with an established home, where you can usually move straight in after settlement, waiting for your property to be built can be stressful. Timelines and budgets can easily blow out, and there may be delays with council approvals or issues with the builder.

You may have to compromise on location

New builds in newer suburbs can sometimes lack the character of established suburbs, where the community and infrastructure has developed over time.

The capital growth potential could also be weaker in new developments, often due to large housing releases that saturate the market. It’s important to do your homework before deciding whether a location is right for you.

Other things to keep in mind

Government incentives can sometimes tip the scales. For example, the First Home Owner Grant may be available if you’re buying or building a new property, while some stamp duty exemptions or concessions apply to both new and established homes.

The rules around it being a new home or a substantially renovated one vary by state and territory, so look into what’s available in your area .

Like to chat further?

If you’d like advice about government incentives or stamp duty concessions, your buying capacity or pre-approval support with your finance, we can help. Get in touch today and we’ll walk you through the finance side of things and help you get into your own home sooner.

How your credit report affects mortgage applications

Wed, 10 Sep 2025 01:01:58 GMT

If you’re new to buying property, you’ll want to understand your credit report and how it may impact your home loan application.

Think of your credit report as your financial report card, showcasing how you manage your debts and financial obligations. Here’s why it’s important when you want to take out a home loan.

What is a credit report?

A credit report is a detailed account of your credit history, compiled by credit bureaus. It includes your credit products, repayment history, personal information, defaults, credit applications, bankruptcy records, and credit report requests.

Lenders take into account your credit report when deciding whether to lend you money and when assessing your creditworthiness.

What about a credit rating?

Your credit report includes a credit score, otherwise known as a credit rating.

This value is calculated based on what’s in your credit report. Factors such as how much money you’ve previously borrowed, the number of credit applications you’ve made and your tendency to pay on time will all be taken into account when calculating your credit rating.

Depending on the credit reporting agency, your score may be between zero and 1,000, or zero and 1,200. The higher the credit score, the better.

Where to access your credit report

You can access your credit report for free every 3 months. It’s a good idea to review yours once a year, particularly if you’re planning to buy a property in the near future.

To request a copy, try these credit reporting agencies:

Experian 1300 783 684
illion 132 333
Equifax 138 332

Keep in mind that different agencies may have different information about you, so you might have to reach out to multiple agencies for your credit report.

What if something doesn’t add up

If you notice something is incorrect in your credit report, for example that some of the debts are not yours or that your personal details are wrong, contact the credit reporting agency and ask them to fix it. There shouldn’t be a charge for this.

It’s really important to do this, as failing to do so could jeopardise future credit applications.

Tips to improve your credit score

Manage credit card balances: Keep balances low and within the credit limit. Pay off balances in full or more than the minimum payment.
Use credit responsibly: Avoid maxing out cards, make timely payments, and don’t take on excessive debt.
Review your credit report: Regularly review for changes or errors, promptly reporting inaccuracies.
Pay your bills on time: Set up direct debits to automatically pay your bills before the due date.
Improve your credit mix: If your credit mix lacks diversity, this can have a negative impact on your credit score.
Limit new credit applications: Apply only when necessary to avoid numerous hard inquiries.

Can you get a mortgage with a bad credit report?

If your credit report isn’t in the greatest shape, don’t despair. There may still be ways to secure the finance you need to purchase your home.

Some lenders specialise in ‘bad credit’ home loans and take into consideration any personal circumstances that may have affected your ability to repay in the past. These kinds of loans often come with higher interest rates and fees, but if your options are limited, they may be worth considering.

To chat to us about your finance options, including whether a specialist lender could help you, get in touch today.

Redraw vs offset: what first-home buyers should know

Wed, 03 Sep 2025 23:03:00 GMT

If you’re planning to buy your first home this spring, you’re not alone. It’s one of the busiest times in the property market, with more listings and more competition. That’s why it’s important to be well prepared.

Beyond interest rates, there are other features that can make a big difference to your loan and how much interest you pay. Two of the most common are redraw facilities and offset accounts. While they both help reduce interest, they work in slightly different ways.

Here’s a breakdown of what they mean and how to choose the option for your needs.

What is a redraw facility?

A redraw facility allows you to make extra repayments on your home loan and then access those extra funds later if you need them.

For example, if your minimum repayment is $2,000 and you pay $2,500, the extra $500 goes towards your loan. This lowers the balance and reduces the interest charged. If needed, you can request to withdraw that extra amount at a later date.

Pros:

Lets you pay down your loan faster by making extra repayments
Helps reduce interest over time while keeping funds available

Things to consider:

Some lenders place limits on how much you can withdraw or how often
Withdrawals may not be available instantly
Fees and conditions may apply

I can help you understand which lenders offer flexible redraw options that suit your financial plans.

What is an offset account?

An offset account is a transaction account linked to your home loan. It works like an everyday bank account – you can have your salary paid in, use a debit card, and pay bills directly from it.

The money in the account is “offset” against your home loan balance. For example, if your home loan is $500,000 and you have $20,000 in your 100 per cent offset account, you are only charged interest on $480,000.

Pros:

Reduces interest charged while keeping your money accessible
Can be used for everyday banking, helping you stay organised
May help you pay off your loan sooner

Things to consider:

Some lenders charge higher fees for offset accounts, or have limits on how many you can open
Not all offset accounts reduce the full loan amount – some offer only partial offset

As your broker, I can help you compare lenders to find an offset account that matches your spending and savings habits.

Choosing the right loan features

If you’re just starting to explore your home loan options, it’s okay not to have all the answers. The most important thing is to choose a loan that suits how you want to manage your money.

Some loans include redraw or offset features as part of the package. Others may charge more or offer fewer benefits. I’ll help you make sense of your choices so you can borrow with confidence and avoid paying more than you need to.

Planning to buy this spring?

Now is the ideal time to get organised. If you’re looking at buying in the coming months and want to understand how loan features like redraw and offset accounts can help, let’s chat. I can also help you get pre-approval sorted so you’re ready when the right property comes along.

Buying beyond your backyard – a practical guide to investing interstate

Mon, 01 Sep 2025 23:37:01 GMT

Buying an investment property in another state or territory can open the door to a range of new opportunities. From more affordable price points to higher rental yields and market diversification, there are plenty of reasons to look beyond your own backyard. But investing interstate also requires careful planning, local insight, and the right financial support.

Here are 7 practical tips to consider if you’re thinking about taking that next step.

1. Define your investment strategy

Before exploring property listings, it’s helpful to think about what you want to achieve – whether that’s long-term value growth, consistent rental income, or managing cash flow. These goals can guide your decisions around location, property type, and loan structure.

If you’re unsure where to begin, I can provide general information about available finance options and suggest ways you might continue your research or seek licensed advice.

2. Know your numbers

Many investors use equity in their current home or investment property to fund their next purchase. Depending on your situation, you may be able to borrow up to 80% of your property’s value, minus any outstanding loan balance.

It’s also important to budget for all the costs involved in buying interstate. These may include stamp duty, legal and conveyancing fees, building and pest inspections, insurance, property management, maintenance, and ongoing loan repayments. Some of these expenses vary significantly between states, so be sure to get detailed advice early.

Getting pre-approval is a valuable step in the process. It gives you a clear idea of your borrowing power, helps you set a realistic budget, and shows sellers you’re serious when it’s time to make an offer.

3. Choose a finance structure that suits your needs

Not all investment loans are the same. Depending on your goals and personal circumstances, you might consider features such as interest-only repayments, offset accounts, or redraw facilities. The right loan structure can help you manage cash flow, reduce interest, and stay flexible over time.

As a mortgage broker, I can walk you through your options, compare lenders, and help tailor a finance solution that fits your strategy.

4. Research the location thoroughly

An affordable property doesn’t always mean a good investment. When buying interstate, take the time to research the local market. Look at vacancy rates, population growth, infrastructure projects, access to public transport, schools, and employment hubs.

Focus on areas with consistent demand and strong long-term potential. Read suburb reports, follow property trends, and review local council plans for future development.

If you’re unfamiliar with the area, working with a buyer’s agent can be helpful. They can provide local knowledge, assist with negotiations, and may even uncover off-market opportunities.

5. Build a reliable local team

Managing a property from another state requires trust in your support network. A good property manager will handle tenant communication, organise maintenance, conduct inspections, and ensure your property complies with local regulations.

You’ll also need a local conveyancer or solicitor who understands the legal requirements of that state or territory. And don’t forget about building and pest inspections – they’re essential when you can’t view the property yourself.

6. Understand how the local market works

Every state and territory has its own rules and processes for buying property. Cooling-off periods, contract terms, settlement timeframes, and auction regulations can all differ. Make sure you’re familiar with how things work in the area you’re buying in, so there are no surprises.

If you’re not able to travel for inspections, consider using virtual tours or requesting detailed video walkthroughs. Independent building and pest reports are also a must.

7. Keep track of your investment

Once your property is up and running, make it a habit to review its performance regularly. Monitor your rental income, track expenses, and stay informed about local market conditions. If your property grows in value or rental demand increases, it may open the door to further investment down the line.

Think about how long you plan to keep the property and what might prompt you to sell. Before you buy, have a chat with your accountant or tax adviser about the exit strategies that could work for your situation.

Thinking of buying interstate?

If you’d like help understanding your borrowing power, getting pre-approval, or structuring your finance to support an investment purchase, feel free to get in touch . I can walk you through the process and help you feel confident every step of the way.

Is now the time to refinance your home loan?

Wed, 27 Aug 2025 23:17:00 GMT

Inflation has been heading in the right direction and the Reserve Bank of Australia has cut the cash rate three times in 2025.

So, is now a good time to refinance?

The decision as to whether to refinance depends largely on your individual situation and goals. Here are a few key considerations to think about when deciding whether or not to refinance.

The latest inflation data was promising

In positive news, the consumer price index (CPI) rose by 2.1 per cent over the 12 months to the June quarter , while the trimmed mean annual inflation was 2.7 per cent to the June quarter. This is the figure the RBA pays close attention to when deciding what to do with the cash rate.

With trimmed mean inflation now at its lowest since December 2021 and well within the RBA’s target band of 2-3 per cent. There is a strong case for further cash rate cuts if inflation and economic growth continue on their current path.

The RBA’s latest Statement on Monetary Policy offered fresh insights into the outlook. Despite markets expecting lower rates since May, the RBA’s inflation forecast remains steady, with the trimmed mean sitting at 2.6 per cent for the next two years.

Financial markets are currently pricing in a cash rate low of 2.9 per cent by December 2026 before edging back up to 3.1 per cent in 2027. If the RBA’s projections are correct, they suggest the economy can operate with a cash rate around 3 per cent and inflation will remain within their target band.

Lender offers are getting sharper

Given the three rate cuts so far this year, there’s a lot of competition amongst lenders to get mortgage holders through the doors.

By refinancing, you may access an attractive cash back offer that helps you get ahead with your goals or secure a more competitive home loan rate. Refinancing and setting you up with a home loan with interest-saving features like a redraw facility or offset account could also help you get ahead financially.

So, should I refinance now or wait it out?

It’s hard to know exactly how soon the RBA will cut the cash rate again. While refinancing will depend largely on your individual situation and goals, there are mounting reasons why refinancing should be on your radar. At the very least, now is a good time to review your home loan to make sure it still measures up, particularly if you fall under any of the following categories.

You’ve been with the same lender for a long time

If your current home loan was locked in at the cycle’s peak, you may be paying more than is necessary on your mortgage. If you’ve had the same home loan for several years, chances are you could be getting a more suitable offer with another lender, so it’s worth exploring your options and shopping around.

Your situation has changed

Have your financial circumstances changed since you took out your original home loan? If so, all the more reason to consider refinancing to a home loan that marries with your current financial situation and long-term objectives.

Your debt is feeling overwhelming

If you’re juggling multiple debts at once, such as a personal loan and credit card debt, it may be worthwhile considering debt consolidation.

With debt consolidation, you essentially roll all your debts into your home loan. It means you only have to make one repayment, making it easier to manage your debt.

It’s important to remember that you may end up paying more interest over the life of the loan if you go down this road, so speak to us and we’ll crunch the numbers for you.

You want to access your equity

Want to make a big-ticket purchase, like buying an investment property or doing a home renovation? Refinancing to access your equity could help you achieve these kinds of goals.

Like to know more?

If you’re considering refinancing, reach out to us for a home loan health check.

We can help you work through all the options out there and find you a home loan to suit your specific circumstances and goals. We’ll also explain any costs involved and help you weigh up whether it’s worth refinancing.

Get in touch today.

Using your equity to buy an investment property

Thu, 31 Jul 2025 00:22:53 GMT

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.

Knowing how to use your home equity can help you achieve financial goals, but it’s important to weigh the risks, like increased debt and changing interest rates.

Let’s look at what equity is, why use your equity to buy an investment property, and how to do so.

What is equity?

Equity is the difference between the market value of your property and the balance remaining on your home loan.

Say your property is worth $1,000,000 and you owe the lender $200,000. Your total equity is $800,000.

However, not all of that equity is accessible. This is where usable equity comes in. Banks will typically lend you 80% of the value of your home, minus your existing loan balance.

In this example:

80% of the property’s value = $800,000
Subtract the loan balance = $800,000 − $200,000
Usable equity = $600,000

In some instances, you may be able to borrow more if you take out Lenders’ Mortgage Insurance (LMI).

Why use your equity to invest?

Using the equity in your home to purchase an investment property can be a powerful strategy, but it’s important to weigh both the benefits and potential risks. That’s why it’s essential to seek professional advice – whether financial, legal, or tax-related – to ensure this approach aligns with your goals and circumstances.

Let’s take a closer look at some of the key advantages and potential drawbacks of using your equity to invest.

Pros

No need to save a deposit. You can use the equity in your home to buy your next property, without having to save up a large deposit. It means you can jump back into the property market sooner, and seize on market opportunities.
Potential tax benefits. Buying an investment property may have tax implications. For example, some investors use strategies like negative gearing, which can affect their taxable income. You may also be eligible to claim deductions on expenses like interest on the loan, property management fees, and maintenance.
Expand your property portfolio. Investing in property may offer benefits like long-term capital growth and rental income. It allows you to potentially benefit from the appreciation on multiple properties over time, as well as opening up an income stream (via the rental return).
Increase your borrowing capacity. Using your equity may allow you to borrow more than you could with just your income and savings, giving you access to properties with a bigger price tag.

Cons

Increased debt: By borrowing against your equity, you’ll be increasing your total debt. You’ll need to be able to service a larger debt and the costs associated with owning your home and an investment property.
Market risk: If the value of your investment property decreases, it could affect the equity in your existing property, potentially leaving you in negative equity territory. This is where your debt outweighs the value of your properties.
Tax implications: You may be liable for capital gains tax when you sell the investment property. It’s a good idea to run through the tax implications of using your equity to buy an investment property with your tax accountant.

How to use your equity to invest?

Refinance to access equity

Refinancing to unlock your equity is a popular option. This involves taking out a new loan to pay off your old mortgage, with some money left over – that is, your equity. You can then use that money as a deposit, and take out a new loan for the investment property.

Home loan top up

A common way to borrow against the equity in your home is to get a home loan top up or increase. This involves increasing your current mortgage limit to allow you to access the funds (which can then be used for a deposit for the investment property).

Cross-collateralisation

Cross-collateralisation involves using your home as collateral and adding it to the new investment property loan, to help get the purchase over the line. In this scenario, you’d end up with 2 loans – the original mortgage secured by your home, and the new mortgage secured by your home and the investment property.

Line of credit

Another option is to set up a line of credit and use the money as a deposit for your investment property. With this scenario, your lender would approve you for a specific amount, based on your usable credit. The benefit of a line of credit is that you only pay interest on the amount that you borrow, rather than the entire limit.

Like to know more?

There may be other finance options to help you use your equity to buy an investment property (such as a supplementary loan or home equity loan).

To get started, give us a call today to talk through how you can unlock your equity – we’re here to help!

7 cost-effective tips for keeping your home warm during winter

Wed, 30 Jul 2025 23:28:05 GMT

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

Here are some tips to manage your energy costs this winter and keep the household budget in check.

1) Be smart about heating

Firstly, choose your heating wisely. According to Choice , reverse-cycle air con is the cheapest way to heat your home.

Portable electric heaters are convenient and cheap to buy, but they’re expensive to run and will drive up power bills. Choice estimates that running a reverse-cycle air conditioner for an entire year could cost less than running an electric heater for the winter months.

Next, heat only the rooms you’re using, rather than the entire property. Close the doors to any unused spaces and save on energy and cost.

Instead of blasting the thermostat, opt for a comfortable temperature of between 18 and 20 degrees. Every degree of additional heating can add up to 10 per cent on your energy use. If your heating system has a programmable function, pre-set it to warm your home during the times of day when you really feel the cold. To save money, turn off heating when you’re not home or overnight.

2) Seal gaps and cracks

To heat a room efficiently, aim to seal any gaps or cracks that could create a draught.

Up to 40 per cent of your heating can be lost through the windows. Check windows are closed properly, and draw the blinds or curtains to retain the heat inside. You might even consider double glazing, though this can be costly.

Ensure doors are firmly closed and use a draught stopper for added heating efficiency. If you have hard floors, lay down thick rugs for added insulation.

3) Warm yourself up in cost-effective ways

To reduce your power bills, rug up rather than reaching for the heater remote during winter. Consider materials that are warm, like flannel for your bed linen and wool clothing.

A hot water bottle or heated throw is a cost-effective way to warm up, rather than heating an entire room. Just be sure to read the instructions and safety warnings.

Lastly, keep showers short and sharp. Heating hot water can account for over 20 per cent of household energy use.

4) Service your heating systems

Regular maintenance of your heating system is important for efficiency, so that it doesn’t have to work harder to heat your home.

Clean the filters and ensure the vents are clear of dust. It might take you 10 minutes, but it could help reduce your energy consumption and save you money in the long run.

Gas heaters should be serviced by a professional.

5) Be mindful of insulation and appliances

How well is your property insulated? Heat can escape easily from poorly insulated properties. Having a fully insulated home could reduce heating and cooling costs by as much as half, so it’s worth considering.

Upgrading to energy-efficient appliances is another way to save money on your electricity bills over time. Don’t forget to turn off appliances that are not in use at the power point (such as televisions and computers), so that they’re not using energy while in standby mode.

6) Switch ceiling fans to reverse

Switch your ceiling fans to reverse mode , which will make the blades turn anti-clockwise. This will disperse the warm air from your heating system around the room and back down towards the ground.

7) Make the most of the sun

During the day, allow as much sunlight into your home as possible to warm it up naturally. If you have the budget for solar panels, they can be a worthwhile long-term investment to help reduce your energy costs.

With the right planning, your winter heating doesn’t have to break the bank. If you’re looking to renovate your home to make it more energy efficient, or you’d like to purchase a newer home with better energy performance, chat to us today about your finance options.

Can gambling impact your home loan application?

Thu, 10 Jul 2025 03:59:14 GMT

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.

Are you retirement ready? Planning for the next chapter

d.rizzuto@legalhomeloans.com.au (Darcey Rizzuto) — Fri, 30 May 2025 04:16:34 GMT

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.

In order to have the retirement you’ve always dreamed of, it’s important to plan ahead. Here are some key considerations.

When do you plan to retire?

Deciding when to retire depends on several factors, including:

How much money you will need for retirement
Government support options available to you
Whether you want to be debt-free
Your health
Your relationship status.

Your financial situation

How much money you will need for retirement depends on your lifestyle. Setting a retirement budget is the most practical way of figuring out the amount that’s right for you.

When coming up with your budget, include things like holidays, social events, and gifts. Add your figures to your living necessities and use this as your financial-needs guide.

Superannuation

In Australia, super can be accessed from the age of 55 . Using the budget you mapped out, ask yourself how you will use your super to supplement your savings and investments.

If you’re concerned that your projected super balance may not be enough to enjoy the retirement lifestyle you would like, consider ways to increase your contributions while still working.

Salary sacrifice – Are you able to put extra money into your super from your pre-tax salary? Salary sacrifice contributions are taxed at 15 percent , which is generally less than your marginal tax rate.

Personal contributions – Making additional contributions to your super using your after-tax income not only boosts your superannuation, you may also be able to claim deductions for personal super contributions.

Contribution caps – Understand what caps apply to various types of contributions, as extra tax may apply when exceeding them. Check the Australian Taxation Office (ATO) website to find out the current contribution caps, so you can contribute tax-effectively.

If your superannuation or other investments has been affected by Donald Trump’s tariff announcements and the associated market instability, it may be worth speaking to a financial planner about the best strategy moving forward. Australian superannuation members were recently warned they would need to put up with volatility in asset values in the months ahead.

Government support options

When you retire, you may be eligible for government benefits such as the Age Pension, concession card, government loans, healthcare benefits, tax offsets and low-cost banking.

Your age, assets and income will affect the benefits you’re entitled to. See the Moneysmart website for more information.

Current and future debts

Research has found that 28 per cent of Australians approaching retirement (aged 50 to 64) still have a mortgage, while 14 per cent of retirees still carry mortgage debt. Optimally, it’s usually a good idea to aim to retire debt-free.

If you still have a mortgage, credit card debt, car or personal loans, it’s worth paying off as much of your debt as possible while you’re still working, so that you don’t have to draw down on your retirement savings.

Mortgage repayments are by far the largest line item on many budgets. There may be steps you can take, however, to reduce the amount you owe while still living comfortably. Can you downsize, for example, or refinance to pay down your loan faster? Chat to us for clarification.

Need finance?

In some cases, people may need finance to help them achieve their retirement goals. Perhaps you need to renovate your home to make it retirement ready, for example? Or maybe you’ve recently divorced and you need to re-establish yourself?

As you approach 60, it can be increasingly difficult to obtain finance from traditional providers, but there may be options available to you. A popular option is a reverse mortgage, which allows older homeowners to borrow money against the equity in their property. There is risk involved, so it’s important to speak to a financial planner before deciding whether a reverse mortgage is right for you.

With the right planning, retirement can be a wonderful, stress-free time of life. Get in touch to review your current mortgage or refinance.

What Labor’s win means for aspiring home owners

Thu, 29 May 2025 05:07:25 GMT

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

If you’re an aspiring homeowner, here are the key campaign promises that may impact your buying plans. Keep in mind the measures will now need approval from the new Parliament, so be sure to watch the outcome of the legislative process.

5% deposits for all first home buyers

Labor pledged to expand the existing First Home Guarantee , so that first-time buyers can purchase a home with a 5 per cent deposit from 2026, without copping lenders’ mortgage insurance (LMI).

Generally, buyers need a 20 per cent deposit in order to avoid LMI, which usually costs the average buyer $23,000 . However, under the First Home Guarantee scheme, the government guarantees 15 per cent of the home loan, so borrowers don’t have to pay LMI.

Labor plans to remove caps on places and income, and said there would be higher purchase price limits. More than 150,000 first home buyers have reportedly already accessed the scheme.

To put it in perspective, under the scheme eligible Sydneysiders would be able to buy a $1.5 million home with a $75,000 deposit. Meanwhile, a first home buyer in Queensland could buy a $850,000 home with a $42,500 deposit.

100,000 homes for first home buyers

The Albanese Government also plans to put $10 billion towards building 100,000 homes exclusively for first home buyers.

The government said it would start construction in 2026-27, with owners able to move in from the following financial year.

Expansion of the Help to Buy scheme

Labor will boost its Help to Buy scheme, which passed the House of Representatives last year , by increasing income and property price caps.

Under the scheme, eligible home buyers can purchase a property with a deposit of as little as 2 per cent (without having to pay LMI), with the government contributing 30 to 40 per cent equity towards the purchase. So, for a $600,000 property, the deposit would be $12,000.

Prior to the election, Labor said it would lift the property price caps and income caps from $90,000 to $100,000 for individuals, and from $120,000 to $160,000 for joint applicants and single parents.

The Help to Buy scheme is expected to open for applications in 2025, with 40,000 spots available over four years.

As part of the rollout, some states and territories have already passed legislation relating to the Help to Buy scheme. To find out what’s available in your area, get in touch and we’ll look into it for you.

Foreign investors banned

From 1 April 2025, Labor introduced a 2-year ban on foreign residents buying existing properties.

The measure is intended to address housing affordability issues and prioritise housing for Australian residents.

Prefabricated homes a priority

Labor will deliver a $54 million targeted investment in advanced manufacturing of prefabricated and modular home construction and provide $120 million from the National Productivity Fund to incentivise states to remove red tape and help more homes be built faster.

Through the Housing Australia Future Fund and other programs, Labor aims to deliver 55,000 social and affordable homes (28,000 of these homes are in planning and construction).

Cost of living measures

Cost-of-living measures included new tax cuts, more energy bill relief, and initiatives to cut the cost of medicines and student debt.

Looking to buy a property?

If you’d like to explore how the government’s housing measures may help you get a leg up on the property ladder, we’re here to help.

Get in touch today.

End of financial year tax tips for investors

d.rizzuto@legalhomeloans.com.au (Darcey Rizzuto) — Wed, 28 May 2025 00:58:05 GMT

End of financial year tax tips for investors

If you own an investment property, it’s important to be aware of all of the tax deductions that could be available to you and plan smartly for the year ahead. Below is some general guidance, along with helpful links, to steer you through some top tips for the season.

Know what rental expenses you can claim

As a general rule, if you’ve spent money to earn rental income and kept records, you may be able to claim it as a tax deduction.

The Australian Taxation Office (ATO) sorts rental property expenses into three main types:

Immediately deductible expenses (in the income year you incur the expense) – like interest on your investment loan, council rates, pest control, repairs and maintenance, and low-cost depreciating items (under $300).
Deductions over time – such as capital works, borrowing expenses, and asset depreciation over several years.
Expenses you can’t claim – such as personal expenses if you’re living in the property some of the time or certain second-hand depreciating assets purchased after 9 May 2017.

Split expenses if the property isn’t always rented

Do you list your investment property on short-stay platforms like Airbnb? Or only rent out part of it, like a room?

In that case, you’ll need to apportion your expenses based on how and when the property was used to generate income. The ATO has clear rules on this, and getting it wrong could mean missing out—or worse, over-claiming. You can find more information about how to apportion expenses correctly in the ATO’s rental properties guide .

Claim deductions spread across several years

Some expenses can’t be claimed all at once, but that doesn’t mean you should forget about them.

Borrowing expenses like loan setup fees can be claimed for five years or spread over the term of the loan, whichever is shorter. Borrowing expenses of $100 or less are deductible in the income year you incur them.

You can’t claim a deduction for capital expenditure, but in some cases, you may be able to claim capital expenses relating to your property over several years, including:

You can claim a deduction for the  decline in value of depreciating assets  used for income-producing purposes (e.g. timber flooring, carpets, curtains and dishwashers). A qualified quantity surveyor can prepare a depreciation schedule outlining the decline in value of depreciating assets for tax purposes.

Book in maintenance now (and claim it this year)

Leaving small repairs until “later” can mean waiting another year to claim them. So, if there’s any work needed on your rental, try to get it sorted before 30 June. Eligible repairs like replacing a broken hot water system, fixing a door lock, or getting pest control done may be tax-deductible if completed before the end of the financial year.

Don’t forget your loan and insurance costs

In most cases, the finance costs tied to your investment property are deductible. This includes:

Interest on your investment loan
Ongoing loan account fees
Bank charges and borrowing costs

Insurance premiums may also be deductible, including cover for the building, contents, landlord liability, and loss of rent.

EOFY checklist for property investors

✓    Check what you can claim now vs. later
✓    Split expenses for part-time or partial-use properties
✓    Review borrowing and capital improvement deductions
✓    Finalise repairs and services before 30 June
✓    Include loan interest and insurance in your claims
✓    Keep detailed records and receipts

Thinking to buy a new property or refinance?

Tax time can have a big impact on your property buying journey, both positively and negatively. You should always seek professional advice in relation to your individual tax circumstances.

If you do decide to buy, we can assist with the finance side of things. Get in touch today and we’ll run through your investment loan options.

Negative gearing explained

Tue, 15 Apr 2025 00:05:39 GMT

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.

What is negative gearing?

Negative gearing is where the expenses associated with owning an asset such as an investment property (including interest expenses) are greater than the income earned from the asset.

So, say the rental return on your investment property is $2,800 a month, but your investment property costs (e.g. your home loan interest, property management fees, insurance, maintenance costs, etc.) set you back $3,200 a month. That means you’re negatively geared.

Investors who are negatively geared can deduct the losses they incur against other income, including salary and wages.

Positive gearing is the opposite – the rental returns exceed the costs of owning the property. Neutral gearing is when an investment property’s income and expenses are pretty much equal.

Why is negative gearing attractive to investors?

In Australia, it’s estimated two in three rentals (just over one million) lose money. So, why would anyone want an asset that’s making them a loss?

Some investors are willing to negatively gear their properties in the hope that the capital gain (the sale price minus the cost of the asset) when they sell the property will more than offset those losses.

The ability to deduct losses and reduce one’s taxable income, thereby lowering the amount of income tax you pay, is another real drawcard for many investors, particularly those in higher tax brackets .

What is capital gains tax (CGT)?

CGT is the tax you pay on profits when you sell the property. Although it’s referred to as ‘capital gains tax’, it’s part of your income tax. It’s not a separate tax.

If you’ve owned the property for more than 12 months, you can reduce your capital gain by 50 per cent. This is referred to as the capital gains tax discount .

Why has negative gearing been in the news?

There have been calls to overhaul negative gearing and the CGT discount for years, as opponents believe they exacerbate the housing crisis and favour higher income earners.

The Henry Tax Review conducted by Treasury in 2010, for example, recommended a 40 per cent capital gains discount, which was not adopted.

More recently, the Australian Council of Social Service (ACOSS) called for reforms to negative gearing and capital gains tax discounts.

The ACOSS report, Homes for living, not wealth creation , found the wealthiest 10 per cent of households hold two thirds of the value of investment property.

ACOSS called on the next government to halve the CGT discount to 25 per cent over five years, reducing it by five per cent per year; restrict negative gearing for new investments so that investment losses can only be offset against investment income rather than wages; and phase out negative gearing for existing investments over five years.

So, what are the major parties saying in the lead up to the May election?

Greens leader Adam Bandt has flagged he will push for negative gearing changes if his party holds the balance of power after the upcoming election.

Labor went to the 2016 and 2018 elections with a proposal to overhaul negative gearing. However, it’s not on the government’s reform agenda at present.

“We have no plans to do anything on negative gearing, because we don’t think that is the main issue. The issue is supply, and that’s what we’re tackling,” Anthony Albanese recently said.

Opposition leader Peter Dutton has “guaranteed” the Coalition would leave negative gearing and the capital gains tax concession unchanged should it win the upcoming election.

Ready to buy an investment property?

Before making any property investment decisions, it’s always wise to speak to your tax advisor or a financial planner.

If you do decide to buy, we can assist with the finance side of things. Get in touch today and we’ll run through your investment loan options.

What the Federal Budget means for homebuyers

Mon, 14 Apr 2025 23:59:18 GMT

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.

Purchasing property

Help to Buy scheme

Labor plans to boost its Help to Buy scheme by increasing income and property price caps.

Under the scheme, the Federal Government will provide an equity contribution of up to 40 per cent to support eligible homebuyers (around 40,000 Australians) to purchase a home with a lower deposit and a smaller mortgage.

Around $800 million will be allocated to lift the property price caps and income caps from $90,000 to $100,000 for individuals, and from $120,000 to $160,000 for joint applicants and single parents.

Infrastructure investment

The 2025–26 Federal Budget has allocated $17.1 billion to various road and rail infrastructure projects across the country. It’s a good idea to be across these if you’re planning to buy, as they may affect housing development and surrounding property markets.

Examples include:

$7.2 billion for safety upgrades on the Bruce Highway in Queensland.
Over $2.3 billion for critical infrastructure upgrades in the growing Western Sydney region.
A further $465 million for New South Wales to plan for regional projects and fix notorious choke points, including $250 million to upgrade Mona Vale Road and $115 million to reduce travel times on Terrigal Drive.
$2 billion to upgrade Sunshine Station in Victoria.
$350 million for the Westport – Kwinana Freeway Upgrades in Western Australia.

Read the full list here .

Foreign investors banned

The Government announced a temporary ban on foreign purchases of established dwellings for at least two years and said it would crack down on land banking.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot buy an established dwelling in Australia unless an exception applies.

The measure is intended to open up more opportunities for local property purchasers.

Prefabricated homes a priority

Labor will allocate $54 million towards the prefabricated and modular housing industry to boost home building.

Prefabricated homes are manufactured offsite in a factory, then transported to their final location for assembly. They’re said to take half the time to build as traditional brick and mortar homes.

The Government has also committed $120 million from the National Productivity Fund to incentivise states and territories to remove red tape preventing the uptake of modern methods of construction.

Incentives for housing construction tradespeople

Labor will introduce a new Housing Construction Apprenticeship stream, offering eligible apprentices in housing construction trades up to $10,000 in financial incentives. This measure is designed to address workforce shortages and boost housing supply.

Cost of living

New tax cuts and Medicare breaks

From 1 July 2026, the 16 per cent tax rate , which applies to taxable income between $18,201 and $45,000, will be reduced to 15 per cent. From 1 July 2027, it will be reduced to 14 per cent.

A worker on average earnings will get an extra $268 in their pocket in the first year, and $536 from the 2027–28 financial year.

The Government will also increase the Medicare levy low-income thresholds. As a result, more than one million Australians on lower incomes will be exempt from paying the Medicare levy or continue to pay a reduced levy rate.

More energy bill relief

The Government will extend energy bill relief to the end of 2025. Every household and around one million small businesses will receive two $75 rebates directly off their electricity bills through to 31 December 2025.

Health

The Government plans to reduce the maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) for everyone with a Medicare card and no concession card. From 1 January 2026, the maximum co‑payment will be lowered from $31.60 to $25 per script.

Cutting student debt

The Government will reduce all outstanding Higher Education Loan Program (HELP) and other student debts by 20 per cent, subject to the passage of legislation.

The Government will also increase the amount that people can earn before they have to start paying back their loans ($54,435 in 2024–25 to $67,000 in 2025–26).

Growing wages

The Government intends to ban noncompete clauses for low and middle income employees. This is expected to boost wages, with workers free to move to higher paying jobs. Aged care and childcare workers are set to receive wage increases.

Looking to buy a property?

There’s a lot to digest from the Federal Budget, but we’re here to answer your questions.

Get in touch if you need clarification about how any of the Federal Budget measures impact your property purchasing goals.

Is now a good time to buy?

Tue, 25 Mar 2025 00:03:51 GMT

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

So, is now a good time to buy property?

The answer depends on your unique circumstances and goals. But generally speaking, it’s always best to get a leg up on the property ladder sooner rather than later.

Here are some compelling reasons to consider jumping right in, rather than staying on the diving board.

Competitive interest rates

In February, the central bank lowered the cash rate from a 13-year high of 4.35 per cent to 4.10 per cent. Many lenders, including Australia’s big four banks , announced they would pass on the rate cut in full.

The average home loan interest rate is now sitting at around 6.24 per cent p.a. for owner occupiers. Interest rates are far from the levels we were seeing a few years ago when they were in the 2 per cent range, but they have been coming down in recent weeks, which is good news for prospective borrowers. Many lenders are also offering sweeteners to entice borrowers through their doors. Examples include free extra repayments and redraws, no application or ongoing fees, and annual rate discounts.

Your borrowing power may have increased

With interest rates coming down, your borrowing capacity, or the amount a lender is likely to lend you, may have increased. In other words, you may be able to afford a property that was previously just out of reach.

For new borrowers on an average income with an average-sized loan, the change in the cash rate is estimated to have increased borrowing power by $9,000 to $10,000 . That, combined with the tax cuts that came into effect from 1 July last year and the easing of inflationary pressures, may put borrowers in a better financial position to borrow right now.

If you’re interested to know what your current borrowing power is, get in touch and we’ll crunch the numbers for you.

Property prices have rebounded

Up until the February cash rate cut, there were clear signs that Australia’s property market was cooling.

Over the past few years, property prices across the nation surged. Between March 2020 and January 2024 , housing values increased 33.9% – or $239,000 – while units shot up 11.2 per cent (around $65,235).

But last year, property price growth slowed. Five of the eight capital cities recorded a decline in values between July and December. In October, property prices peaked, then dropped 0.1 per cent in December.

In February, however, national home values increased 0.3 per cent , breaking a short and shallow downturn that lasted just three months. Every capital city except Darwin recorded a monthly rise in values in February. If property prices continue to rise, it may be wise to fast-track your purchasing plans and take advantage of current prices while they last.

Ready to get started?

Deciding when to buy a home or investment property comes down to your personal financial circumstances and goals. However, there are many good reasons to consider purchasing right now. Before you start house hunting, chat to us about getting your finance pre-approved. That way, you’ll be ready to negotiate with confidence when you find the right property for your needs.

What will the interest rate cut mean for you?

Mon, 10 Mar 2025 23:36:52 GMT

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.

Make 2025 count. Here’s how you can budget more effectively to achieve your saving goals.

Thu, 06 Mar 2025 04:37:20 GMT

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!

1. Start by understanding your spend and where your money is going.

It can be easy to lose track of how much you’re spending, especially with cashless payments and credit cards. There are many online banking systems that include tools to categorise debits and make a budget – take advantage of them! Or download an app that helps you track your personal expenses on the go like ASIC’s TrackMySPEND . Once you’ve got a good idea of your regular spending, you can tailor a budget that is best suited to your individual needs.

2. Categorise your spending.

Once you have an understanding of your spending, split your regular income into accounts (or buckets) with a specific budget set for each. You may even like to transfer them into separate accounts for easy tracking. This is a helpful way to manage your spending and saving without complicating it.

As an example:

Commitments – such as regular bills, debt repayments and rent/mortgage payments
Essentials – ongoing costs such as groceries, transport, pet care and health costs
Lifestyle – non-essential spending such as dining out, shopping or entertainment
Savings – for any goals or super contributions, or to set aside for emergency expenses.

There is a more basic approach commonly known as the “50:30:20 rule”.

Budget 50% of your income for essential living expenses (such as rent, bills and groceries)
Budget 30% of your income for lifestyle costs (like dining out, buying clothes)
Save 20% of your income into a savings account.

This is a popular approach as it’s a realistic balance of enjoying things with a focus ongoing to save. A flexible approach to budgeting can help you keep track in the long-term.

3. Find savings in the essentials

Some costs can’t be avoided – but many everyday expenses can be reduced. For example, you could:

Move in with your parents/relatives, or move into a cheaper rental or share house. Short-term discomfort can pay off in the long term.
Implement tactics like meal planning, making grocery lists and buying in bulk to save money on food.
Shop around to reduce your regular bills – it’s worth checking if you’re still getting the best deal on utilities such as internet and electricity every year. You may get better value if you switch, or tell current providers you intend to switch.
Use the car less: take public transport; carpool with colleagues; or try walking or riding. You’ll be amazed at how quickly it all adds up to savings.
Refinancing – are you currently on the most competitive home loan set up? Investigating what options are out there for you could decrease your monthly repayments and save you thousands over the course of your home loan. You can check out the best rates & offers available here.

4. Other ways you could save

Look for opportunities to eliminate costs. Cancel unused services. Update your internet or mobile plans if you’re always paying for excess data.
Ask yourself: are you really using that gym membership? Are you getting value from your subscriptions? Remember, every wasted dollar is money you could be spending on your own home.

How could your credit card save you money?

Have you connected your credit card to your home loan? This simple trick could save you thousands on your home loan. You’ll firstly need an offset account. An offset account is a savings or transaction account that is linked to your home loan. But, instead of earning interest, the money in this account offsets the amount of money owed on your home loan, therefore reducing the interest you need to pay on your home loan.

Now here’s how the credit card will help. Because you want to keep as much money as you can in your offset account, use your credit card for everyday expenses like your morning coffee or utility bill. This way you can keep the money you would have used to pay for it in your offset account for longer, saving you interest on your home loan each day.

5. Continue to review your budget regularly

Ensure you regularly check in to review and adjust your budget. Monitoring your budget plan is vital to ensure you’re keeping on track. There may be times where your income has changed, you have unexpected expenses that arise or a new savings goal. Checking in will help guide you to reach your savings targets! Chat with our friendly team today.

Fixed vs. Variable Rate?

Thu, 27 Feb 2025 03:51:42 GMT

So, you’ve decided to buy a property. How exciting! Understanding the world of home loans may be confusing like what the difference is between a fixed and variable interest rate home loan.

Both home loans setups offer unique advantages and what is better will depend on your situation + objectives.

Here are some of the key factors to consider when working out which type of home loan is right for you.

What is a fixed rate home loan?

A fixed rate home loan is where the interest rate is locked in or ‘set’ for a period of time, otherwise known as the fixed term of the loan. This means that the interest rate you pay will remain the same over that course of time.

Pros of a fixed rate home loan:

A major benefit of a fixed rate home loan is certainty. You’ll know exactly what your repayments to expect and at what level of interest for a certain period. Typically, this is between 1 and 5 years.

Key points:

Protect yourself against interest rate rises
Lock in your interest rate so you know what your repayments will be
Plan and set financial goals with ease

Cons of a fixed rate home loan:

A fixed rate home loan is not as flexible as a home loan with a variable rate. This may be worth considering if you expect your financial situation could potentially change in the future.

Key points:

Rate cuts won’t benefit you
Limits a borrower’s ability to pay off their loan faster by restricting extra repayments or capping them at a certain amount per year
Break costs may be charged if you repay your loan early or refinance during a fixed rate period
Redrawing funds is not available on a fixed rate home loan

What is a variable rate home loan?

A variable rate home loan is a loan with an interest rate that may change over time. If you choose this type, you may be able to take advantage of any interest rate decreases over your loan’s term.

Pros of a variable rate home loan:

Variable rate home loans tend to offer more flexibility and include more features.

Key points:

If rates fall and you’re on a variable rate, this means you’ll reap the benefits of lower interest and repayments
Allows for a wider range of repayment options, including the ability to pay off your loan faster without incurring interest rate break costs
If you wish to refinance, it’s easier to switch to a different lender or home loan product if you’re on a variable rate, without attracting break costs

Cons of a variable rate home loan:

If interest rates go up, your repayments could increase.

Key points:

Lenders can change a variable interest rate at any time generally according to the market. For borrowers, this means their rate is likely to fluctuate over the life of their loan. If your bank raises rates, your repayments will rise
It can be harder to budget for the future as you can’t be sure how interest rates might move

Split Rate Home Loans

Can’t decide? A good option can be to split the loan. If you’re indecisive on whether to go with a fixed or variable home loan, there is an option to split your loan between the two. If you split your home loan, it means that you can designate a certain portion to a variable home loan, and the rest to a fixed home loan. This means you have the certainty of a fixed rate on part of your loan as well as the flexibility to make extra repayments on the variable rate part of your loan.

Want to find out more about your home loan options?

Get in touch with one of our professional experts today.

Has the property market peaked?

Thu, 27 Feb 2025 03:50:04 GMT

In recent months, we’ve seen a definite shift in the property market. It’s left one question on many aspiring property owners’ lips: Has the property market peaked?

If you’re looking to make the most of falling interest rates and buy a home or an investment property in 2025, it’s important to be up to speed with what’s happening before you dive in.

Let’s run through what we know so far.

Property price growth is losing steam

Australia’s home values were up 4.9 per cent in 2024, adding approximately $38,000 to the median value of a home.

The first half of 2024 saw national home values rise 4.1 per cent, before slowing to just 0.7 per cent through the second half of the year. Five of the eight capitals recorded a decline in values between July and December.

Following a strong period of growth between February 2023 and October 2024, prices peaked in October and remained flat in November, then dropped -0.1 per cent nationally in December. That represented the first decline in almost two years. Prices remained broadly steady across January .

CoreLogic research director Tim Lawless said the decline in values was not surprising.

“This result represents the housing market catching up with the reality of market dynamics,” he said.

“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”

Rental growth has slowed

In 2024, the rate of national rental growth decelerated.

Throughout the year rents rose 4.8 per cent . In contrast, rents increased 8.1 per cent in 2023.

In the December quarter, we saw national rent values increase just 0.4 per cent. That represented the smallest fourth quarter change in rents since 2018.

According to CoreLogic, the numbers paint a clear picture – the national rental market has passed the peak of the rental boom.

“Rental affordability continues to be a significant drag on rental growth,” CoreLogic economist Kaytlin Ezzy said.

What this means for sellers and buyers?

CoreLogic Head of Research Eliza Owen said a cyclical downswing was likely for early 2025, but it may not necessarily be large. She said home value declines tended to be shorter and smaller than periods of property price growth.

Given the market conditions, some sellers may avoid selling until property prices come up, thereby restricting the supply of properties on the market. Growth in real incomes may also support buyer demand as inflation continues to come down.

The RBA has cut the cash rate, and this could push up property prices, as buyers’ borrowing capacities increase.

Bottom line: the property market may have peaked, but the downturn in housing values is likely to be moderate and short lived, according to the experts.

Looking to buy?

If you’re hoping to buy a home or investment property, get in touch and we’ll run through your finance options.

Interest rates have been on the move lately, which is a compelling reason to have a professional like us on your side. We understand the intricacies of a changing lending market and will find the right home loan for your specific needs.

Chat to us today.

Dreaming of a sea change? Here’s what to consider before making the move

Tue, 18 Feb 2025 00:44:41 GMT

As the new year begins and the daily grind resumes, many Australians are dreaming of swapping city life for the charm of the coast. What was once primarily about lifestyle is now a practical choice for many.

But before packing your bags for the coast, here are key factors to consider:

1. Is coastal living truly affordable?

The days of ultra-low mortgage rates are behind us, and tighter credit conditions have buyers exploring more affordable options. Coastal property markets have become more appealing as buyers look beyond cities for value. However, rising demand in some areas has reshaped the affordability landscape.

“There was a frenzy of demand during COVID when interest rates were at rock bottom, and a lot of them overshot their prices,” says Eliza Owen, Head of Australian Research at CoreLogic. Recent data shows that in some coastal towns, house prices have dropped 20 per cent, making them more accessible again. But not all regions follow this trend, so it is important to do your research.

If you’re considering a move to the coast, think beyond property prices. Evaluate the overall cost of living, including groceries, petrol, and utilities, as well as access to essential services like healthcare, childcare, quality schools, or reliable public transport. Exploring potential neighbourhoods thoroughly will help ensure the area aligns with your financial and lifestyle needs.

2. Is it the right move for your career?

Remote working has opened the door for many to embrace a sea change, but recent workplace trends suggest caution. Some companies are gradually introducing return-to-office requirements , with a few expecting employees to be in person multiple days a week. Planning for these possibilities can help ensure your coastal move remains a positive and practical decision.

Before making the leap, think about:

Your employer’s current flexibility and the possibility for future changes to remote work arrangements.
How practical it would be to attend in-office meetings from your coastal home.
Whether your new home has a reliable internet connection and a comfortable workspace.

With thoughtful planning, you can enjoy the benefits of coastal living while staying adaptable to potential changes in your work environment.

3. Are climate and environmental factors on your radar?

Coastal living offers stunning views and fresh sea breezes, but it’s important to think about the environmental risks that come with it. Coastal areas may face challenges like rising sea levels, erosion, or storm surges, which could impact both your property’s safety and its long-term value. Regional areas, on the other hand, could face bushfire risks during the hotter months.

Before committing, research the climate resilience of the property and the local area, and check whether additional insurance or protective measures might be needed.

4. What’s your long-term plan?

A sea change isn’t just a lifestyle choice; it’s a financial commitment. Baby boomers, for instance, may see this as an opportunity to use their superannuation to downsize or invest in a lifestyle upgrade. Younger buyers might view coastal properties as a smart long-term investment or a stepping stone toward future financial goals.

Whatever your motivation, it’s important to consider whether this move supports your long-term plans or could create challenges later.

Ready to start your sea change journey?

A sea change can be life-changing, but it’s a decision that deserves careful thought. As your mortgage broker, I’m here to guide you through the financial aspects of your journey, from understanding your borrowing capacity to securing a loan that meets your needs.

5 Trends to watch if you want to buy in 2025

Tue, 28 Jan 2025 00:58:34 GMT

Thinking about buying a home in 2025? The property market is evolving, bringing both opportunities and challenges for buyers. Whether you’re saving for your first home, upgrading, or investing, staying informed about the latest trends can help you make confident and informed decisions.

Here are five key trends to keep an eye on in 2025:

1. Interest rates: A cut may be coming

After holding steady throughout 2024, interest rates are poised for potential cuts, with some economists predicting reductions as early as February or May , depending on inflation and economic conditions.

Lower borrowing costs could make home loans more affordable, encouraging increased activity in the property market.

However, rising demand could eventually push prices higher later in the year. Keeping an eye on Reserve Bank of Australia decisions will be crucial for buyers looking to secure favourable loan terms before the market responds to this increased activity.

2. Rising rents driving buyers into the market

Australia’s rental market remains tight, with national vacancy rates at a low 1.8%, according to CoreLogic’s November report . As rents continue to climb, many tenants are reconsidering their long-term strategies, finding that buying a home could offer greater stability and, in some cases, lower monthly costs compared to renting.

This trend underscores the importance of acting decisively if buying is part of your 2025 plans, as more renters transitioning to homeownership may increase competition in the housing market.

3. Reduced migration and its impact on housing demand

The government has lowered the 2025 permanent Migration Program cap to 185,000 for 2024–25 , down from 190,000 the previous year. This change is expected to ease housing demand.

Tim Lawless, CoreLogic’s Head of Research, noted, “A further reduction in overseas migration will see less aggregate housing demand, especially across the rental sector where rental growth is already flattening out.” Over time, reduced migration could also lower demand for home purchases, potentially creating a less competitive market in some areas.

For buyers, this could mean greater opportunities in regions previously dominated by high rental demand or competitive first-home buyer markets.

4. More homes for sale: Expanding choices for buyers

In 2025, buyers may find the property market offering more options, as the supply of homes gradually increases. The federal government’s Housing Accord, targeting the delivery of 1.2 million new homes , is part of a broader effort to tackle housing shortages. While high construction costs and labour shortages remain challenges, a modest recovery in building approvals suggests progress is underway.

CoreLogic notes, “dwelling approvals look to have moved through a low point, and we could see more announcements from federal and state governments aimed at supporting residential construction activity.”

With a federal election anticipated sometime in the next four months, housing affordability is likely to be a key issue. Existing initiatives, such as the Home Guarantee Scheme and Help to Buy , could be supplemented with new policies, further improving opportunities for homebuyers.

5. Shifts in housing affordability opening doors for savvy buyers

In 2024, many Australians found housing affordability stretched due to high property prices and tighter lending conditions. However, 2025 may bring a turning point.

Projected income growth is expected to outpace housing values growth and potential interest rate reductions could make saving for a deposit and securing a loan more achievable. These improving conditions provide buyers with an encouraging environment to plan their next move, whether entering the market for the first time or upgrading to a new home.

By keeping a close eye on these trends and understanding how they affect your local market, you can position yourself to take advantage of these changes in 2025.

Let’s plan your property journey in 2025

Buying a home is one of the biggest financial decisions you’ll make, but you don’t have to do it alone. As your mortgage broker, I can help you understand your borrowing power, guide you through pre-approval, and ensure you’re ready to act when the right opportunity comes along.

Let’s start planning your next move – contact us today to get started!

2024 in review, what to expect from 2025

Tue, 14 Jan 2025 03:13:09 GMT

Can you believe we’ve stepped into 2025 already?

With 2025 now here, it’s the perfect time to reflect on the highlights of the property world from last year and look ahead to what’s in store for the year ahead.

Reflecting on 2024

Interest rates remained flat

The Reserve Bank of Australia (RBA) kept the cash rate steady in 2024 at 4.35%.

Inflation has fallen substantially since the peak in 2022. Headline inflation was 2.8 per cent over the year to the September quarter, but underlying inflation (as represented by the trimmed mean) remains a concern for the RBA.

Over the year to the September quarter, it was 3.5 per cent, which means it’s still some way from the 2.5 per cent midpoint of the RBA’s inflation target. The RBA doesn’t expect inflation to return sustainably to the midpoint of the target until 2026.

In other news, this year we saw a shake-up of the RBA. One big change was that there were only eight cash rate decisions (instead of 11), following a recommendation of the Review of the Reserve Bank in March 2023. Another recommendation was that monetary policy processes be more transparent, with press conferences after each meeting.

Property prices continued to climb, but the market is cooling

Australia’s property prices continued to rise in 2024, but the pace of growth slowed down.

November marked the 22nd consecutive month of property price growth across the country, but the rise was modest, at 0.1%. It was the weakest Australia-wide result since January 2023 , and could signal the end of rising house prices, experts say.

Perth was the standout in terms of property price growth in 2024. The year-on-year change was 21%.

Adelaide and Brisbane also performed strongly, with a year-on-year change of 14% and 12.1% respectively. Sydney had more modest gains of 3.3%.

Melbourne saw property prices decline -2.3% year-on-year, while prices were fairly flat in Hobart (1%), Darwin (0.9%), and Canberra (-0.1%).

Rental growth slowed

Following a period of exceptional rental growth , Australia’s rental surge cooled in many markets, as rental demand eased.

Annual rent increases for houses hit multi-year lows in Sydney, Melbourne, Brisbane, Perth and Adelaide in the September quarter, indicating a relentless stretch of rising rents may have peaked.

Sydney recorded its weakest growth rate for rental houses for a September quarter in four years, with annual gains at their lowest in almost three years. That said, the average weekly rent was still at a record high of $775.

Melbourne house rents saw the weakest figures for a September quarter since 2021, while rents in Brisbane declined for the first time in just over four years.

The slowed rental growth was attributed to decreased demand, with more people opting for shared housing and intergenerational living, and overseas migration down.

Meanwhile, Darwin and Hobart experienced their strongest September quarter for rental growth since 2020 and 2017, respectively.

Government incentives were announced

There were several announcements in the May Federal Budget aimed at helping aspiring homeowners to enter the market.

The government allocated $5.5 billion towards its shared equity Help to Buy Scheme in 2024-25 for those on low and moderate incomes. Under the scheme, the government would provide an equity contribution of up to 40% of the purchase price for new homes and 30% of the price of existing homes. The bill was passed into law by parliament last month.

The government also increased its line of credit to Housing Australia by $3 billion, and Housing Australia’s liability cap by $2.5 billion. Housing Australia administers the Home Guarantee Scheme, which encompasses the First Home Guarantee (FHBG).

Under the FHBG, part of an eligible home buyer’s home loan from a participating lender is guaranteed by Housing Australia. Homebuyers can purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

Other incentives designed to relieve cost-of-living pressures included a $300 energy bill rebate in the 2024-25 year.

The government’s tax cuts also came into effect. For some people, this meant their borrowing power increased.

What’s ahead in 2025

Interest rates may drop

The RBA Board will hold its first meeting of 2025 on 17-18 February. Speculation has been rife that there will be a cash rate cut in the first half of next year.

Only one of the big four banks believes the RBA will cut the cash rate in February – all of the others are banking on a cash rate cut in May.

The RBA has held firm about not cutting the cash rate until inflation is sustainably in the target range. All eyes will be on December quarter inflation data , which is due to be released at the end of January.

Property price growth may weaken

Many economists believe the deceleration in property price growth may continue in 2025.

SQM Research’s latest Boom and Bust Report forecasts that house prices in Sydney and Melbourne will decline further in 2025, while Perth is likely to experience the strongest growth of Australia’s capital cities.

The report forecasts average national housing prices will increase by between 1 and 4 per cent. This is assuming there’s no spike in inflation, population growth remains steady and there’s a mid-year interest rate cut.

The federal election could shake things up

The 2025 Australian federal election will be held on or before 17 May 2025. There’s speculation an early election will be called, so keep your eyes peeled.

The housing crisis is likely to be front and centre, so it’s worth watching those election promises closely. The Coalition has already proposed a plan to allow first home buyers and separated women to use up to $50,000 of their superannuation savings for a home deposit.

Planning a 2025 property purchase?

With interest rates expected to come down and property prices set to decline in some markets, 2025 is shaping up to be an exciting year for aspiring homeowners and investors.

If you’re planning to buy, talk to us about getting pre-approved on your finance, so that you’re ready to dive in when you find the right property.

Bridging Loans: A solution for buying before selling

Thu, 19 Dec 2024 04:53:24 GMT

In a fast-moving property market, timing is everything. You may find your dream home before selling your current one, but without the right financial solution, you could miss out. That’s where a bridging loan can help.

A bridging loan allows you to buy your next home before selling your current property , giving you the financial flexibility to secure your next home, potentially avoid unnecessary costs, and sell on your own terms. Here’s a quick guide to how bridging loans work and how they can benefit you.

What is a Bridging Loan?

A bridging loan is a short-term loan that helps you secure a new property before selling your existing home. It bridges the gap between buying and selling, so you can move forward without delays.

Here’s how it works:

The loan covers the purchase price of your new home, your current mortgage balance, and any additional costs (like stamp duty).
Interest is often added to the loan amount, with options for no monthly repayments during the bridging period.
Once your current home sells, the proceeds are used to repay the bridging loan.

This means you can buy first, sell later, and take your time to get the best price for your current property.

Key benefits of a Bridging Loan

Buy first, sell later
A bridging loan lets you secure your next home without waiting to sell. This gives you more control and flexibility over both transactions, helping you avoid rushed decisions.
Avoid temporary living costs
Selling first often means moving into short-term accommodation while waiting to buy. A bridging loan allows you to move directly into your new home, saving you the hassle and expense of renting or moving twice.
Maximise your sale price
You can tap into your home’s equity to make value-adding renovations before selling, boosting its appeal and potential sale price. Plus, with no rush to sell, you can time the market to your advantage.
Act quickly in a competitive market
Found your dream home but haven’t sold yet? A bridging loan gives you the freedom to act fast, ensuring you don’t miss out on the right opportunity.
Flexibility with settlements
Coordinating the sale and purchase of two properties can be tricky. A bridging loan lets you handle each transaction at your own pace, allowing you to streamline the process and helps you avoid penalties from delayed settlements.

Is a Bridging Loan right for you?

A bridging loan might be a good fit if you:

Want to upsize or downsize without the pressure of selling first
Need flexibility to buy and sell on your own timeline
Want to avoid renting or moving twice
Plan to renovate your current home to increase its value
Found the perfect home and need to act fast

How I can help

As your mortgage broker, I have access to a range of bridging finance options in the market.
If you’d like to learn more or discuss your options, I’d be happy to guide you through the process and answer any questions.

What is a Bridging Loan?

A bridging loan is a short-term loan that helps you secure a new property before selling your existing home. It bridges the gap between buying and selling, so you can move forward without delays.

Here’s how it works:

The loan covers the purchase price of your new home, your current mortgage balance, and any additional costs (like stamp duty).
Interest is often added to the loan amount, with options for no monthly repayments during the bridging period.
Once your current home sells, the proceeds are used to repay the bridging loan.

This means you can buy first, sell later, and take your time to get the best price for your current property.

Key benefits of a Bridging Loan

Buy first, sell later
A bridging loan lets you secure your next home without waiting to sell. This gives you more control and flexibility over both transactions, helping you avoid rushed decisions.
Avoid temporary living costs
Selling first often means moving into short-term accommodation while waiting to buy. A bridging loan allows you to move directly into your new home, saving you the hassle and expense of renting or moving twice.
Maximise your sale price
You can tap into your home’s equity to make value-adding renovations before selling, boosting its appeal and potential sale price. Plus, with no rush to sell, you can time the market to your advantage.
Act quickly in a competitive market
Found your dream home but haven’t sold yet? A bridging loan gives you the freedom to act fast, ensuring you don’t miss out on the right opportunity.
Flexibility with settlements
Coordinating the sale and purchase of two properties can be tricky. A bridging loan lets you handle each transaction at your own pace, allowing you to streamline the process and helps you avoid penalties from delayed settlements.

Is a Bridging Loan right for you?

A bridging loan might be a good fit if you:

Want to upsize or downsize without the pressure of selling first
Need flexibility to buy and sell on your own timeline
Want to avoid renting or moving twice
Plan to renovate your current home to increase its value
Found the perfect home and need to act fast

How I can help

As your mortgage broker, I have access to a range of bridging finance options in the market.
If you’d like to learn more or discuss your options, we’d be happy to guide you through the process and answer any questions.

4 Common Property Investment Mistakes

Thu, 19 Dec 2024 04:45:53 GMT

Diving into the world of property investment can be both exhilarating and daunting. With the potential for considerable returns, it’s tempting to jump right in. However, it’s essential to be aware of common pitfalls and arm yourself with strategies to navigate them.

Here’s a guide to help you avoid four common mistakes when buying your first investment property.

1) Poor Cash Flow Management

Understand Initial Costs : Before even looking at properties, familiarise yourself with the initial costs associated with buying. This includes stamp duty, legal fees, and inspection costs.

Anticipate Ongoing Expenses : Owning a property isn’t just a one-time purchase. There are ongoing costs like council rates, water bills, insurance, and potential repair costs. Setting aside a contingency fund may save you from financial stress down the line.

Budgeting is Key : A detailed budget will be your roadmap. It helps you identify potential financial challenges and address them proactively. If budgeting isn’t your strong suit, consider seeking financial advice or using budgeting tools and apps.

2) Falling For Rental Guarantees

The Allure of Guarantees : On the surface, rental guarantees — where a vendor promises a specific rental income — seem attractive. But it’s crucial to dig deeper. Often, the cost of these guarantees is embedded in the property’s purchase price. This means you might be paying a premium without realising it.

Market Rate Comparison : Always compare the guaranteed rate to current market rates. If the guaranteed rate is significantly higher, be cautious. When the guarantee period ends, you might struggle to attract tenants at a similar rate.

3) Risky Off-the-Plan Purchases

Potential Savings vs. Risks : Buying off-the-plan may be more affordable than buying an existing property. However, it’s essential to be aware of the associated risks.

Delays in construction can affect your financial plans, especially if you’re paying rent or another mortgage while waiting. Another potential problem with buying off the plan is that you can run into issues with securing finance. Some lenders may offer conditional approval (finance in principle) for off-the-plan purchases before construction starts, but they won’t actually loan you the money until the property has been constructed and they have performed a valuation on the finished product.

Valuation Changes : The property market can be volatile. By the time your new property is ready, its valuation might differ from your purchase price, affecting your loan-to-value ratio and potentially increasing your loan costs.

4): Trying to Do It Alone

Understanding all the ins and outs of buying a property can be tricky. From finding the right property to suit your investment goals to securing a home loan that meets your specific needs, the process can be a bit of a minefield.

That’s where we can help. As a mortgage broker, we can do the hard yards for you, from explaining your borrowing capacity and creating a purchasing budget, to providing professional advice about the right loan product and structure for your specific financial situation and goals.

Ready to start?

If you’re keen to start your property investment journey with confidence, reach out to us . We’re here to guide and support you every step of the way.

Source: Finance Focus

4 steps to take now for buying your first home in 2024

Thu, 19 Dec 2024 04:32:43 GMT

Thinking about purchasing your own home this year? How exciting! The dream of homeownership is facing some new challenges, especially for those in their twenties. Recent data from the Australian Institute of Health and Welfare shows the rate of young adults owning a home dropped from 50% in 1971 to only 36% in the latest 2021 Census. Even for those aged 30–34, it fell from 64% to 60%.

But the dream of having your own home is still very much alive!

Here are 4 steps that you can take now, to put you on the path to buying your future home:

1. Start saving early and be smart with money

Begin your journey to owning a home by saving money wisely. Consider following the 50:30:20 rule – put half your income toward essential items like food and rent, then split the rest between fun stuff (holidays, eating out) and savings. Following this rule has the potential to help you save consistently, no matter how much you make.

Build good money habits with simple changes, like cooking at home instead of ordering takeout, biking to work to save on petrol, or choosing home get-togethers over expensive outings to save up for your home deposit!

2. Use credit wisely to avoid debt

Credit cards can be handy, but don’t go overboard. Missing payments or racking up too much debt not only messes with your finances but also hurts your credit score. A bad credit score can make it tough to get the right home loan when you find your dream home!

3. Consider all the costs of buying a home

Buying your first home means dealing with more costs than just your mortgage. Think about all the associated costs such as:

Stamp duty : Stamp duty is a one-off state government tax that’s based on the purchase price of the property.
Legal and conveyancing fees : Get a conveyancer, specialised in real estate legalities, to manage paperwork, including the Deed of Transfer. They can address inquiries about property zoning and technical details.
House inspection and cleaning costs : Once you pick a home, hire professionals to check its condition. This helps you know what maintenance it needs and how much it might cost. Don’t forget the expenses for cleaning and fixing up the property. A cheap deal might turn into a money pit if you go for a fixer-upper!

4. Get help from a mortgage broker

As a mortgage broker, our role is to work closely with a panel of lenders — from the big banks, to the smaller lenders you may not be as familiar with — to ‘shop around’ in the home loan market on your behalf. But our job isn’t just about comparing home loans. We stay on top of market trends and changing lender requirements, so you can be confident in the recommendations we provide.

Even before you are ready to buy a home, we can offer valuable support by explaining the home buying process and working with you to ensure you achieve your property goals.

So, if you’re planning on making your home ownership dreams a reality this year, get in touch to team up with us today!

Your guide to saving for a house deposit

Thu, 19 Dec 2024 04:24:27 GMT

Getting ready to buy a home starts with saving for the deposit. It might seem challenging, but with a solid strategy, you can make it happen. Here are several things to consider that may help get you started and on track for home ownership sooner than you think.

Check your current financial situation

Ok, this one seems a little obvious, but let’s start simple. Understanding your financial situation will get you in a good place to start setting your budget. Make sure to take a look at:

What you earn : Your paychecks or other income.
What you spend : Bills, groceries, fun stuff—where does your money go each month?
Your debts : Loans or credit cards you’re paying off.
What you own : Savings or things you could sell if needed.

Understanding these parts of your money helps you see how much you can save for your new house every month.

How much can you borrow?

Having an idea of the amount you can borrow – which is determined by your current financial situation – can help you figure out how much you’ll need to save. But remember, there are other costs involved in buying a house, like stamp duty and conveyancing fees.

To figure out the deposit you need to save, consider:

The price of the house you want,
Plus any extra fees and charges,
Minus the amount you can borrow.

If you’re unsure about these numbers, I’m here to help. As your mortgage broker, I can work with you to understand your financial circumstances and how much you can afford to borrow.

Set your savings target

Here’s what you’re aiming for:

20% of the home’s price
Extra money for other house-buying costs like lawyer fees, checks on the house, taxes, moving, and insurance.

Even though some places might let you buy with just a 5% deposit, saving more is better. It means borrowing less and showing banks you’re great with money, which might help you get your loan approved.

Government help? Yes, please!

If you’re buying your first home, you may qualify for the following:

These benefits can really help boost your savings by providing financial assistance and reducing costs when you’re buying your first home.

Government programs may offer grants, discounts, and tax breaks, which means you have more cash upfront and pay less over time.

How long will you be saving for?

If you know how much you can save each month and how much you’re able to borrow, you can start to estimate how long it’ll take to save for your deposit.

Check out this handy savings goal calculator to find out:

How long it will take to reach your savings goals
What steps you need to take to put your plan into action

When you’re getting close to your goals, it’s a good time to seek pre-approval. This means a lender has preliminarily agreed to give you finance for buying a home, giving you a clear idea of what you can afford before you make the final decision.

Start saving!

With your plan ready, it’s time to get saving. Making a budget helps you find extra savings spots. Automatic transfers to your savings make sure you keep saving regularly. If buying a house isn’t happening right away, think about investing to grow your savings.

Saving for a deposit is a big goal, but you can definitely do it with a bit of planning and help. As your mortgage broker, let me guide you on this exciting journey to owning your home. Get in touch today.

Source: Finance Focus

Budget initiatives to help aspiring homeowners

Thu, 19 Dec 2024 02:54:05 GMT

In May, the Federal Government delivered the 2024-25 budget. It included several measures such as a $300 energy bill rebate and rent assistance aimed at easing the cost-of-living pressures on Australians. Meanwhile, with the government’s stage 3 tax cuts coming into effect from July 1, some aspiring homeowners may see their borrowing capacity grow, along with their net income.

Let’s take a look at some of the government initiatives that may help you get a leg up on the property ladder sooner rather than later.

Help to Buy Scheme funding

In the May Budget, the government allocated $5.5 billion towards its shared equity Help to Buy Scheme in 2024-25 for aspiring homebuyers on low and moderate incomes.

Under the scheme, the government will provide an equity contribution of up to 40% of the purchase price for new homes and 30% of the price of existing homes.

To be eligible, you need to:

Be an Australian citizen and at least 18 years of age
Earn $90,000 or less as a single or $120,000 or less as a couple
Live in the property
Not own any other land or property in Australia or overseas
Have saved a deposit of at least 2 per cent and be able to finance the remainder through a participating lender
Be able to pay for the upfront and ongoing costs
Be buying a property that falls under the price cap for your region.

Housing Australia boost

The government increased its line of credit to Housing Australia by $3 billion, and Housing Australia’s liability cap by $2.5 billion. Housing Australia administers the Home Guarantee Scheme, which encompasses the First Home Guarantee (FHBG).

Under the FHBG (which the government has previously indicated will be available until 30 June 2025 ), part of an eligible home buyer’s home loan from a participating lender is guaranteed by Housing Australia.

Homebuyers can purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

To apply for the FHBG, homebuyers must be:

Applying as an individual or two joint applicants
Australian citizens or permanent residents at the time they enter the loan
At least 18 years of age
Earning up to $125,000 for individuals or $200,000 for joint applicants
Intending to live in the purchased property
First home buyers or previous homeowners who haven’t owned or had an interest in a real property in Australia (this includes owning land only) in the past ten years.

More information around eligibly and price caps is available here .

The Regional First Home Buyer Guarantee (RFHBG) and Family Home Guarantee (FHG) are also administered by Housing Australia.

Homes for Australia Plan investment

The 2024-25 Budget included $6.2 billion in new investment to build more homes across Australia. The plan is to build 1.2 million new homes over five years from mid-2024.

The government said among other initiatives, the money would go towards turbocharging construction, with a $1 billion boost for states and territories to build the roads, sewers, energy, water and community infrastructure needed for new homes, and additional social housing.

Up to $1.9 billion in concessional finance will go to community housing providers and charities to support delivery of the 40,000 social and affordable homes under the Housing Australia Future Fund and National Housing Accord.

Tax cuts

From July 1, the government’s stage 3 tax cuts come into effect, as follows:

As a result of the tax cuts, some purchasers will see their borrowing capacity increase as their take home pay rises, meaning they will have more options when seeking finance for a home. For an idea of your borrowing capacity, get in touch and we’ll crunch the numbers.

Like to discuss your finance options?

If you’re planning a property purchase, let’s chat. We can run through whether you are eligible for any government incentives and explain your finance options.

Get in touch today.

Source: Finance Focus

3 ways you could take advantage of the new financial year

Thu, 19 Dec 2024 01:11:01 GMT

As we enter the new financial year, it’s a great time to explore how you can make the most of it, particularly when it comes to accelerating your property goals. Whether you’re aiming to buy your first home, invest in another property, or upgrade your current residence, the new financial year brings opportunities that can help you achieve your goals sooner.

Here are three ways you can take advantage:

1. Make the most of your tax return:
If you’re expecting tax back, the extra boost in cash can help offset additional costs that come with purchasing a home such as bank fees, stamp duty, conveyancing fees and more. Additionally, the extra savings could help increase your borrowing capacity and put you in a better position with the bank.

2. Leverage Stage 3 Tax Cuts:
With the recent tax cuts now in effect, most Australians will see an increase in their take-home pay. The boost in income could help increase your borrowing power limit and also help you save for a deposit faster. For further details on how these tax cuts impact you, please click here.

3. Confirm your borrowing power:
You’ve just completed your tax return and have your financial documents on hand and up-to-date – it’s a perfect time to apply for home loan pre-approval. It cuts out much of the legwork as many of the supporting documents the bank will request to review your situation will be ready to go! You’re already thinking about your finances and planning for the financial year ahead, so it’s a great time to move forward. Additionally, any raises or bonuses received at EOFY can further increase your borrowing power, strengthening your position with lenders.

Ready to get started?

First Home Buyers Guide: What’s available for you?

Thu, 19 Dec 2024 00:37:34 GMT

What grants and incentives can first home buyers get?

As a first home buyer, you may be eligible to take advantage of various incentives and grants offered by the government. But how do you know what’s relevant to you? We’ve summarised what’s available state by state below.

Nationally:

Practising solicitors are eligible to borrow with a 10% deposit with eligible lenders. This can be used in conjunction with government grants and incentives. Current practising certificate is required and you won’t need a parental guarantee or to pay LMI.

There are 3 government schemes that are offered nationally:

The First Home Guarantee (FHBG) – Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance. From 1 July 2025 – 30 June 2026, 35,000 FHBG places are available.
The Regional First Home Buyer Guarantee (RFHBG) – The RFHBG aims to support eligible regional home buyers to buy a home sooner, in a regional area. Under the RFHBG, part of an eligible regional home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. From 1 July 2025 – 30 June 2026, 10,000 RFHBG places are available.
The Family Home Guarantee (FHG) – The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner. Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. From 1 July 2025 – 30 June 2026, 5,000 FHG places are available.

New South Wales:

Stamp duty exemptions apply for properties under $800,000 or vacant land under $350,000.
Discounted stamp duty rate for properties between $800,000-$1,000,000, or vacant land between $350,000-$450,000.
First Home Owner (New Homes Grant): $10,000 grant if you purchase a newly built house, townhouse, apartment or unit. The purchase price must not exceed $600,000. If you purchase vacant land and sign a building contract with the builder, the total combined cost must not exceed $750,000.

Source: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme

Australian Capital Territory:

Home buyer concession scheme: From 1st July 2019, eligible home buyers in the ACT will pay no or reduced duty if the total gross income of all buyers, including their partners (if any) must not be greater than the relevant income threshold . All properties in the ACT are eligible for this scheme. It applies to vacant residential land and both new and established homes, anywhere in the ACT and at any price.

Source: https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme

Victoria:

Stamp duty exemptions apply for properties under $600,000.
Reduced stamp duty on properties between $600,001-$750,000.
First Home Owner Grant (FHOG): $10,000 grant for new properties under $750,000. To be eligible, your new home must be valued at $750,000 or less and be a new home. The property must not have been previously sold as a place of residence, occupied as a home, or leased out or used for short-term accommodation, such as Airbnb.

Source: https://www.sro.vic.gov.au/first-home-owner

Queensland:

Transfer duty exemptions apply to new properties under $700,000.
Discounted transfer duty on properties under $800,000.
As of 1 May 2025, full exemption from stamp (transfer) duty on residential vacant land purchased to construct your first home, regardless of its value.
You can claim a first home (new home) concession for transfer (stamp) duty when acquiring a new home or substantially renovated home as your first residence if you meet certain requirements. Your contract (or arrangement) must be dated 1 May 2025 or later. There is no value cap for the home and residential land attributed to the home. Duty will be imposed on additional land that doesn’t form part of the residence or isn’t used for residential purposes.
The Boost to Buy scheme is a new Queensland government shared‑equity program launching from 1 July 2025. It helps first-home buyers by letting the government take up to 30% equity in a new home (or 25% for an existing home), so buyers only need a minimum 2% deposit. Homes can be valued up to $1 million, and buyers must meet income caps.
First Home Owner Grant: The first home owner grant gives eligible first-time home buyers $30,000 towards buying or building a new home in Queensland between 20 November 2023 and 30 June 2025. You must be buying or building a new home valued less than $750,000 (including land and any contract variations). After 30 June 2026, the grant amount will revert to $15,000.

Source: https://qro.qld.gov.au/property-concessions-grants/

Northern Territory:

If you plan to buy a house and land package in the Northern Territory (NT), you may be eligible for an exemption on stamp duty. You can do this under the House and Land Package Exemption (HLPE).
First Home Owner Grant (FHOG): $10,000 grant to buy or build a new home of any value.

Source: https://nt.gov.au/property/home-owner-assistance

South Australia:

For contracts entered into on or after 6 June 2024, no stamp duty will be paid on eligible new homes or vacant land.
First-home buyers in South Australia who build or buy a new home may get a $15,000 grant and avoid paying any stamp duty, regardless of the value of the home.

Source: https://www.revenuesa.sa.gov.au/FHOG

Western Australia:

Stamp duty exemptions apply for properties under $500,000 or vacant land under $350,000.
Discounted stamp duty on property between $500,001 – $750,000, or vacant land between $350,001-$450,000.
First Home Owner Grant (FHOG): The FHOG is a one-off payment of up to $10,000 for eligible applications from people buying or building their first new home. There are no income or assets tests to qualify for the FHOG.

Source: https://www.wa.gov.au/organisation/department-of-finance/fhog

Tasmania:

100% duty exemption applies on property transfer duty for first home buyers of an established home, which have a dutiable value of $750,000 or less between 18 February 2024 to 30 June 2026.
First Home Owner Grant (FHOG): $10,000 grant for a new home that has not previously been occupied or sold as a place of residence and includes kit homes from 1 July 2024.

Source: https://www.sro.tas.gov.au/first-home-owner

The process of purchasing a new home can be complex, especially as a first home buyer. Exact entitlements and eligibility will vary depending on each state’s laws. For more information, chat to your legal representative or click on your relevant state’s link.

Want to borrow with a 5% deposit? Chat to us today .

Updated: 22nd July 2025

3 must-know tips to limit surprises on settlement day

Thu, 12 Dec 2024 05:40:18 GMT

Settlement day marks the long-awaited moment when you become the legal owner of your new home, and while it’s thrilling, it can also bring a few last-minute challenges. With the right preparation, though, you can help ensure a smooth handover and avoid surprises. Here’s your guide to navigating potential settlement pitfalls and making your big day a success.

Common settlement day surprises to watch for

Settlement day is a key milestone, but sometimes unexpected issues can pop up. Here are some common surprises to be aware of:

Last-minute fees
Adjustments to council rates, strata fees, utility bills, or other closing costs may appear close to settlement day. Having a small buffer fund set aside can help you manage these without disruption.
Unsettled utility accounts
If previous owners haven’t closed out their utility bills or transferred accounts, it could cause delays with activating your services. Sorting these details early with your conveyancer can help avoid any hiccups.
Document readiness
Final loan approvals, insurance confirmations, and proof of identity all need to be in order for a smooth settlement. Double-checking these items with your conveyancer ahead of time helps prevent last-minute delays.
Outstanding repairs or condition issues
During your pre-settlement inspection, you may notice repairs or maintenance items that haven’t been completed as agreed. It’s a good idea to make sure everything is resolved before settlement day arrives.
Title transfer delays
Occasionally, issues like unresolved ownership disputes or pending property registrations can hold up the process. Staying connected with your conveyancer is key to addressing any unexpected issues early and keeping your move-in plans on schedule.

Since the timing of settlement can sometimes change, staying in touch with your conveyancer and lender – and having a small buffer fund – can help you handle any last-minute adjustments.

How to prepare for settlement

Stay organised with your paperwork
To keep settlement running smoothly, be prompt with all required documents. Your conveyancer will help you complete and submit the necessary paperwork to transfer the property title, while we’ll guide you through everything needed for your loan. Before settlement, you’ll also receive a settlement statement from your conveyancer or solicitor, outlining the exact amounts to be paid.
Complete a pre-settlement inspection
You’re entitled to inspect the property before settlement to confirm it’s in the same condition as when the sales contract was signed. The last thing you want are hidden surprises when you open the front door.
Organise insurance
Building insurance is often required by lenders and should be in place either from the time you sign the sales contract or by settlement day, depending on your state or territory’s rules. Confirming this in advance can give you peace of mind.

Looking forward to your move-in day!

With proactive planning and support, settlement day can be a rewarding step towards your new home. If you’d like additional guidance, please reach out —we’re here to help make your move-in day a success!

5 ideas to boost your property value

Thu, 21 Nov 2024 01:33:54 GMT

There are many reasons to consider renovating, from making your property more liveable to driving up its market value and increasing the rental income if it’s an investment.

So, which renovations should you consider when looking to generate a return on investment? Here’s some inspiration.

The kitchen update

The kitchen is often the focal point of a property, and it gets a lot of use, so it’s little wonder kitchen updates often drive up resale value. Consider giving your kitchen a facelift by removing walls and making it open plan, adding islands or storage areas or upgrading benchtops, splashbacks, cabinetry and appliances.

While it may be tempting to completely rearrange your kitchen layout, relocating plumbing or electrical work can significantly add to your overall costs. Keeping the cabinets in place and simply replacing or resurfacing the doors can offer substantial savings.

Cost guide: Anywhere from $10,000 to $45,000+.

The bathroom remodel

After the kitchen, bathrooms are possibly the next most popular area of the home to renovate. Buyers and tenants love fresh, modern bathrooms, so it’s worth considering as part of your renovation plans.

You can start simple by replacing old grout and upgrading fixtures such as taps, sinks, showerheads and mirrors. Re-tiling or adding new baths and showers will obviously cost more but may pay off in the long run. If you’re looking to get fancy, consider adding heated towel bars and flooring.

Cost guide: Anywhere from $8,000 to $35,000 .

The curb appeal boost

First impressions count, and when it comes to prospective buyers or tenants, you want your property to make a good impact. Landscaping can help boost the property’s curb appeal and add value.

If it’s an investment property, low-maintenance plants are a smart choice. You may also consider adding lighting and updating the fencing to give your property that ‘wow’ factor.

Cost guide: It’s recommended to avoid spending more than 5% to 10% of the property’s value on landscaping. The national median property value is $779,819 , so in this instance, budget for between $39,000 and $78,000.

Landscaping estimates vary widely, so make sure to consider multiple quotes before contracting a landscaper.

The granny flat build

If you have space for it, why not consider building a granny flat to increase your property’s value? Many homeowners are turning to granny flats to generate extra income.

According to CoreLogic , adding a granny flat could boost home values by 30 per cent and add around 27 per cent to rental income.

Be sure to get in touch with your local council to find out about planning permissions and anything else that’s required. It’s also a good idea to speak to your accountant about the tax implications.

Cost guide: The average cost to build a granny flat is $80,000 to $160,000 .

The expansion

If your house is suitable, you could consider expanding the footprint of your home.

When you decide to expand your home, you generally have two options: build outwards or upwards. Many homeowners hesitate to add a second storey, fearing that the costs will be significantly higher than those of a ground-floor extension.

To reach a decision, you’ll need to weigh up your budget, your circumstances, the block of land and your existing home to work out which option suits you. It’s estimated that building up will cost about 30% more than building out, but could add between 30 to 60% to the value of your home.

Cost guide: Roughly $1,850 to $3,000 per square metre depending on the “degree of difficulty”.

Like to explore your finance options?

If you’ve paid down your mortgage somewhat or your property’s value has increased, you may be able to access your equity to get your reno off the ground. Otherwise, we can run you through other finance options available that could be available to you.

Get in touch today

*Costs and prices in this article are indicative and should only be used as a guide. They also vary locally and are subject to market forces.

Source: Finance Focus

Buying an apartment vs a house as an investment

Thu, 21 Nov 2024 01:29:44 GMT

Do you want to jump into the property market but don’t have the budget to buy a house? A unit or apartment could be a great way to get your leg up on the property ladder.

According to CoreLogic data, unit values are now rising at a faster rate than houses in more than half of all suburbs across Australia.

Aside from being more affordable than a house, there are other benefits of apartment investing to consider. Let’s look at some of the pros and cons of investing in an apartment versus a house.

Pros of investing in an apartment

A more affordable entry point

The median house price in Australia’s capital cities is now $975,592. Compare that to the median unit price of $669,434 and that’s a big difference at the checkout.

With apartments generally being more affordable than houses, it means you’ll need to save up less of a deposit (usually around 20% of the purchase price), and you may find servicing the loan on an apartment easier too.

Fewer maintenance responsibilities

When you own a house, you have to foot the bill for all of the repairs and maintenance. With an apartment or unit, the costs of any repairs or maintenance in common areas is split with other unit owners, usually through a body corporate scheme.

Generally speaking, there’s usually less maintenance required on a unit compared to a house. There may not be a lawn to mow, for example.

Certain expenses can be more affordable

Some expenses can be cheaper when you own a unit. Council rates, for example, are usually higher for houses and may even include land taxes in some states.

If you’re paying smaller fees on an investment apartment, the returns on your investment can potentially be higher.

Potentially higher rental yield

Units often have higher rental yields than houses because you’re able to outlay less money to potentially acquire a similar rental income. This may mean you are in a better position to cover your mortgage repayments and other expenses.

Cons of investing in an apartment

You may need to pay strata fees

In a strata scheme, you’ll need to pay body corporate fees and factor these into your ongoing budget. Strata fees can be pricey and increase over time.

If there’s an onsite manager, pool, tennis courts, barbecue area and gym, expect higher fees than an apartment block with fewer facilities.

There may be restrictions

If you want to renovate your apartment, you may need to run the changes by the strata committee for approval, particularly if it affects the exterior of your apartment or any shared utilities.

There may also be restrictions around having pets, too, which could reduce your tenancy pool.

Oversupply can affect your investment

If you buy an apartment in an area where loads of high-rise apartment blocks are being built, it can affect your property’s capital growth, rental yield and demand from tenants.

Generally speaking, experts recommend seeking low-rise or boutique apartments in areas where planning rules cap the number of apartment buildings allowed.

Want to discuss your finance options?

Whether you’re looking to buy a small studio apartment, a bigger unit or a house, we can help you explore your finance options.

We’ll run you through the investment loans available to you and explain which may suit you, based on your individual financial situation and goals.

Get in touch today.

Source: Finance Focus

5 common reasons home loan applications are rejected

Thu, 21 Nov 2024 00:53:15 GMT

Applying for a home loan is both exciting and stressful. When you are successful, there’s nothing like receiving that green light from a lender to say you’re on the home run to securing your dream home.

But it’s important to be aware that even if you do have pre-approval, you can be knocked back for a home loan. Pre-approval is an indication from a lender that they’re likely to approve you for a specific loan, but you still have to meet certain lending conditions.

Here are some of the common reasons why a mortgage application may be denied after you’ve been pre-approved, and what to do if you are rejected.

Your financial situation has changed

A change to your financial situation could impact your home loan application. Maybe you’ve lost your job or are working less since you were pre-approved.

Lenders will look at your ability to comfortably repay a home loan, and if your income has taken a hit of late, then you may be rejected. Likewise, if you’ve changed jobs since getting pre-approved, your lender may deem you to be a risky borrower and decline your home loan application.

Bottom line: avoid changing jobs or selling assets between pre-approval and applying for a mortgage.

Your credit score has deteriorated

If you’ve applied for other credit products since being pre-approved (such as a car loan or credit card), taken on more debt or missed repayments on existing debt, your credit score may be affected. This in turn could impact your ability to get over the line with a lender.

Be mindful of managing your existing debt carefully and avoid applying for other forms of debt after pre-approval.

The lending criteria has changed

In some instances, changes to the bank’s lending criteria could put your home loan application on ice. If they tighten their lending conditions after you were pre-approved, you may no longer be eligible for finance.

In some instances, the lender may have given you pre-approval incorrectly. For example, they may not have properly verified your information or you may have omitted information that affects your home loan application.

Be sure to provide all the right documentation right from the get-go.

The lender has reservations about the property

Lenders may be hesitant to provide finance for certain types of properties, particularly those they suspect may be difficult to sell down the track. Examples may include inner city apartments, properties needing significant renovations and those in high-risk disaster-prone areas.

Check with your lender prior to house hunting about whether they’re less inclined to lend money for certain types of properties.

Interest rates have increased

Say there’s an interest rate rise in the time between pre-approval and your home loan application. The lender may find you can no longer service the loan and your application may be rejected.

Look into whether rate locking is an option (that is, fixing your interest rate before your home loan application is complete) to prevent this from happening.

What to do if your home loan application is rejected

If your home loan application is unsuccessful, you may need to:

Provide further documentation about your financial circumstances
Work on improving your credit score
Shop around for a different lender (but don’t apply to multiple lenders in a short time immediately after a rejection, as this can negatively affect your credit rating)
Stay in your current employment longer
Set up a budget and demonstrate your savings ability better
Find a different property.

Whatever you decide to do, we’re here to help you tackle any hurdles and be approved for a home loan.

Having a mortgage broker on your team can help increase your chances of a successful home loan application, as we take the time to understand your financial situation, as well as the lenders’ requirements.

To chat through your finance options, get in touch today .

Questions to ask during an inspection

Thu, 21 Nov 2024 00:44:45 GMT

When you’ve been scrolling through marketing photos of a property and you finally set foot in it at an inspection, it can be easy to get swept up in the moment.

Home stylists can be very clever at making you fall in love with a property. It’s their job to help you imagine yourself living there, or to imagine your ideal tenants in the property.

However, before you pounce on that dream slice of real estate you’ve been eyeing off, here are some key questions to ask yourself.

Are clever staging tactics trying to hide anything?

Most properties are staged to sell nowadays, as vendors know they can often get top dollar for houses and units that are beautifully presented at inspection. Try to look past the cosmetics for faults and defects that could prove costly to repair later.

Is a rug cleverly disguising uneven floors? Is a pot plant hiding cracks in a wall?

Has wide-angle photography made the living room or bedrooms look bigger in the marketing photos than they actually are?

Is the lighting covering up the fact that the property feels more like a cave?

Remember, the contemporary furniture, art and décor won’t be staying once the property is yours, so don’t fall for those kinds of distractions.

What renovations or modifications have been done?

It’s always smart to ask about any previous renovations. This can give you a clearer picture of the property’s true value, and who knows, it might spark ideas for your own future projects. Plus, if you’re thinking of making changes later on, asking about past work can help reveal any council restrictions or subdivision limitations that could impact your plans.

Why are they selling, and what price are they hoping for?

Asking why the owners are selling—and how long the property has been on the market for—can give you valuable insight, especially if they’re in a rush to sell. This, paired with finding out the price they’re expecting, can help you assess if the property fits your budget and gives you the upper hand in negotiations. The more you know, the better you can shape your offer.

What’s happening up top?

A leaky roof or water damage can be costly to fix. Signs there could be a problem include mould on the roof, roof rot, missing or buckling tiles, damaged flashing, wavy cornices, and damp patches on ceilings or walls.

Have a good look at the roof from outside the property. Check the roof gutters for rust, and make sure the downpipes run to the storm water drains.

Inside, assess the ceilings for sagging. An easy tip is to shine a torch across the ceilings, which should show up any deflections and defects.

Again, get a professional building inspection to be on the safe side.

What’s the plumbing like?

Don’t be afraid to turn on the taps and flush the toilets during the open inspection. You’ll want to listen for hammer issues and check the hot water is working.

Also, ask how old the hot water system is and when it was last serviced.

What’s the property’s orientation?

Orientation is really important because it affects how much natural light the property will get at different times of the year. North or northeast facing properties often get the most sunlight.

If the ceiling lights are ablaze during the inspection and it’s a sunny day, the house may lack natural light and you may be in for a pretty dark winter.

Have you done enough preliminary research?

You should always do some digging to understand more about the suburb before buying.

How is the area performing? What is the capital growth like?

How are comparative sales tracking and is the listed price fair?

What’s the lifestyle offering like nearby and is there access to amenities? Are there any planned developments or zoning changes that could impact your purchase?

Ready for a spring purchase?

We’d love to line up the finance you need to get into your own home or to buy an investment property this spring.

Chat to us and we’ll get the ball rolling with pre-approval today.

Will house prices keep rising in 2025?

Thu, 21 Nov 2024 00:26:35 GMT

Amid cost-of-living pressures and mortgage repayment stress, there has been some good news for homeowners.

Property prices have continued to rise for months on end across the nation.

In October, data from CoreLogic showed property values increased by 0.3% nationally . It was the 21st consecutive month of price growth across the country.

Recently, Australia’s property market also reached a new milestone. For the first time ever, the total value of residential real estate climbed to $11 trillion , according to CoreLogic. Property values in Sydney, Brisbane, Adelaide and Perth are all currently at a record high.

So, will housing prices keep rising in 2025? Let’s take a look at what we know.

Price growth has slowed

Despite the Australian property market’s impressive track record of price growth for almost two years, there’s no doubt that momentum is slowing.

National property values increased by just 1% in the September quarter, which was the softest quarterly rise since March 2023. The annual growth rate also slowed to 6.7% from a high of 9.7% earlier in the year. All of this points to the fact that the market is cooling.

Experts say increased listing volumes and more cautious buyer behaviour are to blame.

“While the market remains resilient in many areas, the pace of growth more broadly has clearly decelerated,” CoreLogic Australia Economist Kaytlin Ezzy said recently.

“Buyers and investors are becoming more cautious, and the current lending environment is leading to more measured purchasing decisions.”

Supply and demand will play a role

Whether property prices keep rising in 2025 will depend on advertised stock levels and overall supply versus buyer demand, among other factors.

When more properties are listed, buyers have more choice and there may be less urgency to purchase. There may also be more room for price negotiations, so prices can drop.

At the other end of the spectrum, when there are fewer properties available to purchase, stronger competition amongst buyers can cause prices to rise.

Perth, Adelaide, and Brisbane, for example, are still seeing advertised stock levels more than -20% below the five-year average for this time of the year. As a result, conditions are in favour of sellers.

Interest rates will likely have an impact

The Reserve Bank of Australia (RBA) has kept the cash rate on hold since November 2023 , but it’s widely believed we’ll see a cash rate cut in the first half of 2025 .

If interest rates do drop, people’s borrowing power will increase. Historically, when this has happened borrowers tend to spend to their maximum budget. This in turn can drive up property prices.

So, if the RBA cuts the cash rate, experts say we may see more competition return to the market, accelerating home price growth.

What does price growth mean for existing homeowners?

If your property’s value has increased, you may be sitting on untapped equity that you could be using to your advantage.

Maybe you want to buy an investment property in 2025? Or perhaps you’d like to drive up your property’s value even further with some home reno projects?

When you consider that some homeowners have seen their property’s value quintuple within the timeframe of a typical 30-year mortgage, it’s worth finding out how much equity you have. Get in touch for an estimate.

So, what’s the bottom line?

While there’s no crystal ball to predict which way the property market will go, many economists seem to think house prices will continue to rise, albeit more gradually in 2025.

A recent report by KPMG forecast house prices would rise nationally by 5.6% next year.

If you’re planning a 2025 property purchase, get in touch now to talk through your finance options.

Rentvesting: an option for first-time buyers

Thu, 21 Nov 2024 00:01:21 GMT

With today’s cost of living pressures and the median dwelling value in Australia now at $794,000, many young Australians feel like they’ll never be able to enter the property market.

However, it’s important to remember there’s no one-size-fits-all approach to buying your first property. For some, it could be a home to live in. For others, rentvesting makes more sense as it can offer a great alternative to get a foot up on the property ladder.

What is rentvesting?

Rentvesting is when you rent where you want to live and buy where you can afford.

By rentvesting, you can earn an income from your rental property, pay off the mortgage and potentially cover the costs of owning the property, all while continuing to live in a suburb you enjoy.

Why do people choose to rentvest?

One of the biggest motivators of buying an investment property is the potential to make a return via capital growth. This is when your property increases in value over time.

If you’re positively geared (that is, the rental return is higher than your home loan repayments and other property expenses), a rental property can also offer you an additional income stream.

Another reason people choose to rentvest is that it’s another way to enter the property market, without having to purchase a home to live in. Maybe you’ve grown fond of your inner-city apartment (that’s unfortunately out of your price range) and don’t want to move out to the “burbs”? With rentvesting, you can own your own slice of real estate where you can afford and still have the flexibility to live where you want to live.

What to know before going ahead with rentvesting

1. Potentially smaller deposit, but fewer government perks

If you choose an investment property that’s more affordable than the home you intend to live in one day, your deposit will be smaller. It might be easier to save a deposit if you go down the rentvesting route.

However, because you’re an investor and not a first-home buyer, you won’t benefit from government schemes such as the First Home Owner Grant and First Home Super Saver Scheme , which would only apply if you were living in the property.

2. There are ongoing costs to factor in

If you’re rentvesting, you’ll need to budget for all of the costs associated with owning the property (e.g. the mortgage repayments, management fees, rates, water bills, maintenance, insurance, and strata levies if it’s under a body corporate scheme).

Keep in mind, the rental income may cover some, if not all, of these costs. You’ll also need to cover your own rent too.

3. Investor loans could come with higher interest rates

As a rentvestor, you will have an investor loan. These typically come with higher interest rates than owner-occupier home loans.

This means your mortgage repayments may be larger than if you were living in your own home.

4. There will be tax implications

At tax time, your accountant will ask for information about your investment property, including the rental income and expenses (most of which can be claimed as tax deductions ).

Your accountant can guide you about the tax implications of owning a rental property, such as the potential for capital gains tax (if your property goes up in value) when it comes time to sell.

Like to know more?

If you want to get started in the property market sooner rather than later, rentvesting could be the way to go.

To explore your finance options, get in touch . We’ll help you work out whether rentvesting is right for you.

What type of home loan do I need?

Wed, 20 Nov 2024 23:52:28 GMT

When you’re new to buying property, choosing a home loan can be overwhelming. There are dozens of different lenders out there all offering different types of mortgages. So, which is right for you?

A mortgage broker can help you select the right home loan, based on your specific financial situation and goals. Here are some of the main options.

Principal and interest

Mortgages generally have two components. Principal is the amount of money you borrow. Interest is what you pay in order to borrow that money.

Your loan may be principal and interest, meaning you pay both back with each repayment. Otherwise, you may opt for an interest-only loan, but keep in mind that interest rates for interest-only loans tend to be higher than principal and interest loans.

Variable rate home loans

With a variable rate home loan, your interest rate may fluctuate in line with changes to the cash rate made by the Reserve Bank of Australia (RBA) and other factors. Some borrowers like variable home loans because of the flexibility they offer.

If there’s a cash rate cut by the RBA, for example, lenders may pass on the cut to your interest rate. Likewise, if the cash rate goes up, your interest rate will likely go up too.

Fixed rate home loans

If you choose a fixed rate home loan, your interest rate and repayments will be locked in, usually for a term of between one and five years.

This option is attractive to people who want the certainty of knowing exactly how much their repayments will be each week, fortnight or month. If interest rates are likely to rise, fixing your home loan can be beneficial. But if rates come down, you won’t benefit.

Keep in mind you may incur a fee if you decide to switch to a variable rate or refinance your home loan.

Split home loans

A split home loan offers the best of both worlds. It means a portion of your mortgage is variable, and the rest is fixed.

You’ll benefit if rates drop (on the variable portion), but will also be protected if rates increase (on the fixed component).

Other considerations

Basic versus standard

Basic home loans usually have fewer features than standard home loans, so they’re generally cheaper. Often they come with a variable interest rate.

Packaged loan

Packaged loans bundle a home loan with other financial products such as a credit card or transaction account. A discount may be applied to your home loan or fees on some or all of the products are waived for the life of the loan.

Usually, there’s an annual fee for a packaged loan.

Offset

An offset is when you have a transaction or savings account linked to your mortgage, and the balance is offset against your loan amount.

Say you have $50,000 in the offset and a loan balance of $500,000. You’d only pay interest on $450,000.

Redraw facility

A redraw facility allows you to make extra repayments on your home loan. These additional funds can be accessed – or redrawn – if you need them, but in the meantime, the money in your redraw facility reduces the interest you pay.

Line of credit

If you need to make the occasional big-ticket purchase for renovations or a holiday, a line of credit can be useful. Think of it like a credit card that’s secured by your property. You only pay interest on the funds you use.

Low-doc loans

Low-doc loans require less financial documentation to prove your income, assets and liabilities than a standard loan. They’re often used by self-employed borrowers or people with other borrowing hurdles.

These types of loans usually come with a higher interest rate than a standard mortgage and may include terms that restrict borrowers.

Ready to get started?

As your finance broker, we’ll line you up with the right home loan for your specific needs. Get in touch today and let’s chat through your requirements.

5 tips for choosing a property manager for your rental

Wed, 20 Nov 2024 23:37:36 GMT

When you rent out your investment property, you can choose to manage the property yourself or get a professional property manager to do the hard yards for you.

The key benefit of getting someone else to manage your property is the convenience factor. You won’t be the one organising tradespeople if the property floods or the heater blows up.

A professional property manager can help maximise your returns by finding high-quality tenants, conducting thorough background checks, and ensuring their financials are sound, all while minimising vacancies.

Property managers offer a range of services, which may include:

Rent advice
Leasing expertise and advertising services
Management of contracts
Advice about tenancy legislation
Inspections and hands-on management of your property

Here are some tips for choosing the right property manager.

Do your homework

Research which property management companies service the area where your investment is located. You may opt for a full-service real estate agency or use a dedicated property management company.

Make sure you read their customer reviews, even if they’ve been recommended by family and friends. That’ll give you an idea of how others have found their services and what you can expect.

Stick to local professionals

A local property manager is likely to have a solid understanding of the suburb’s demographics, the kinds of tenants you’ll attract and the right rent to charge.

This kind of local knowledge is extremely valuable when it comes to property management and will help you make informed decisions.

Make sure you understand the fees

Most property managers charge a fee based on a percentage of the rent. Others charge a flat fee amount.

There may be administrative fees, leasing fees at the start of a tenancy (usually a couple of weeks’ rent), advertising fees and additional charges for lease renewals.

Make sure you understand the fee structure and what you get for your money.

See how reachable they are

When something goes wrong with your property, you need to be able to reach your property manager fast. Test the waters and see how easy they are to communicate with.

Give shortlisted property managers a call and see how knowledgeable they are and whether they’re pleasant to deal with.

Do they only respond via email or text? Do they take a millennium to get back to you? Does their communication style work for you?

Don’t be afraid to ask questions

There are no silly questions, so ask prospective property managers anything you feel is relevant.

What services do they provide?
How do they manage maintenance tasks?
What sort of properties are in their portfolio and how many?
How do they manage rental payments?
How often do they do inspections?
Will they let you know about legislative changes that could affect your rental?
Asking lots of questions will help you choose the right property manager for your needs.

Let’s chat

If you’re in the market to buy an investment property, we can assist with the finance side of things. Get in touch today to talk through your options.

What’s a guarantor loan and how does it work?

Thu, 08 Aug 2024 02:04:37 GMT

Buying your first home is an unforgettable experience. There’s nothing like the thrill of hearing that settlement has gone smoothly and that you own your very own home.

If you’re an aspiring homeowner who is struggling to save a deposit, there may be other options to get you over the line and into your first home sooner. A guarantor loan is one of them .

A guarantor loan is where a relative, usually a parent, uses the equity in their property as additional security for your property purchase. And it’s not uncommon.

According to research by Digital Finance Analytics, the percentage of first homebuyers seeking help from parents jumped from 3 per cent in 2010 to 59 per cent, with the average loan for a deposit increasing from $23,000 to $107,000.

Here’s what you need to know about guarantor loans before diving in.

Why consider a guarantor loan?

To buy a property, you usually need a 20 per cent deposit. For many people, saving a deposit of that size can be difficult and take years, particularly with today’s cost-of-living pressures.

A guarantor loan offers an alternative way to get into the property market. Sometimes, a guarantor can mean being able to purchase a home with no deposit at all.

Having a guarantor can also help you avoid paying Lenders’ Mortgage Insurance (LMI). LMI usually applies if you borrow more than 80 per cent of your home’s value. It’s to cover the lender against the risk of you defaulting on the loan.

Who can be a guarantor?

Typically, a guarantor is a close relative like a parent, grandparent or sibling who is willing to offer up their own home equity in addition to your cash deposit.

If you’re unsure what equity is, it’s the difference between their property’s value and how much they (still) owe on it.

How does a guarantor loan work?

The guarantor doesn’t actually have to hand over any money at settlement. They simply agree to offer part of their property’s equity as security.

Here’s how a guarantor loan may work. Say you wish to buy a $600,000 property and you have a 10 per cent deposit saved of $60,000. To buy the property, you need a deposit of 20 per cent, so $120,000, otherwise, you’ll have to pay LMI.

Your parents offer $60,000 of their home equity as extra security for your home loan. They don’t have to make any payments at settlement, but if you default on your mortgage repayments down the track, the guarantor may be liable.

Once you’ve built up equity in your home – either by paying down the mortgage or if the value of the property increases – your guarantor can be released from the loan (fees may apply).

Risks to consider

Before diving into a guarantor loan, it’s important to consider the risks involved.

As mentioned, if you’re unable to make the repayments, your guarantor will be financially liable. Some of the guarantor’s equity will also be tied up in your property, which may affect their ability to sell or refinance.

There’s also the impact of mixing family and finances to consider.

It’s a good idea to seek legal and financial advice before entering into a guarantor home loan.

Like to explore your finance options?

If you’re hoping to buy a property and you don’t have a 20 per cent deposit saved, a guarantor home loan may be worth investigating.

Get in touch today and we’ll run through the pros and cons of a guarantor loan and the different lender requirements.

Mastering the settlement process. What every homeowner should know

Thu, 25 Jul 2024 03:56:53 GMT

There’s nothing quite like the buzz of seeing those words in your inbox: Confirmation of settlement of your property purchase.

Settlement day can be both exciting and stressful. But once the formalities are done, it’s all worth it.

If you’re planning a property purchase and are new to how settlement works, here’s a rundown.

What is settlement day?

Settlement day is when ownership of a property is legally transferred from one party to another. It’s facilitated by your legal and financial representatives, and those of the seller.

The actual date is stipulated in the sales contract.

Settlement periods are generally 30 to 90 days from when the sales contract is signed by both parties. However, settlement can be longer or shorter if mutually agreed upon.

What happens on settlement day?

On settlement day your solicitor or conveyancer meets with your lender and the seller’s representatives to exchange paperwork.
Typically, the buyer and the seller do not need to be present.
Your lender and conveyancer will arrange the following with the seller’s representatives:

The balance of the purchase price, along with any government fees and duties, is settled. All outgoings such as rates, water charges and strata fees are adjusted between the seller and the buyer (you pay for these from the day after settlement).
All necessary legal documents are completed and lodged with the respective agencies.
The certificate of title is transferred to your name and the property is legally transferred to you.

Once settlement is completed, the keys are handed over by the real estate agent and the property is all yours!

How to prepare for settlement?

1) Be organised with the paperwork.

For settlement to run smoothly, it’s important you provide all the necessary paperwork in a timely manner.
For the finance side of things, we’ll walk you through the documentation required for your loan application.

You’ll also need to work with your conveyancer to complete and submit all the necessary documentation to transfer the property title to your name.

Prior to settlement, your conveyancer or solicitor will likely get you to review the settlement statement, which outlines exactly what you will be paying on settlement day.

2) Complete a pre-settlement inspection

You’re entitled to inspect the property in the lead up to settlement to ensure it’s in the same condition as when the sales contract was signed. The last thing you want are hidden surprises when you open the front door.

3) Organise insurance

Make sure you check the date when you need to have your building insurance sorted. It may be from when you sign the sales contract, or by settlement. Rules vary by state and territory.

Ready to get started?

As your mortgage broker, we’ll organise pre-approval on your home loan and get your loan application over the line, so that everything runs smoothly come settlement day.

Get in touch today and let’s chat about your exciting new property purchase.

Source: Finance Focus Connective

Property Investment Jargon Explained

Thu, 25 Jul 2024 03:49:22 GMT

Are you new to the world of property investing? If you’ve ever found yourself scratching your head at the complex lingo, we’re here to turn that confusion into clarity. Imagine dazzling your dinner guests with your newfound knowledge, effortlessly chatting about the ins and outs of the market.

Negative Gearing

In simple terms, negative gearing happens when the expenses of maintaining your property—think interest repayments, council rates, and those pesky maintenance costs—outweigh the rental income it generates. Picture this: your property rakes in $25,000 in rent, but your outgoings total $35,000. You’re looking at a $10,000 shortfall. But here’s the silver lining: this could unlock a tax advantage, which is why negative gearing is a popular strategy with property investors.

Positive Gearing

As the name suggests, positive gearing is the exact opposite. It’s when your property’s income surpasses its expenses. Not only could this scenario boost your bank balance, but it also means you’ll likely pay taxes on this income. Another term you might hear is ‘cash-flow positive’—music to the ears of any investor.

Depreciation

Depreciation refers to the gradual reduction in the value of an asset over time. In the realm of property investment, this includes tangible items like appliances, carpets, and water heaters. These assets lose a bit of their value annually, based on a Depreciation Schedule compiled by a Quantity Surveyor. The good news? These depreciation costs might be deductible on your taxes.

Capital Gains

Capital gain is the increase in your property’s value over what you initially paid. This gain is typically realised upon selling the property. However, should your property appreciate in value, you could potentially leverage the capital gain by refinancing your loan, based on a new valuation.

Capital Gains Tax

When you sell an investment property that has appreciated in value, you’ll be liable for Capital Gains Tax. It’s crucial to report both gains and losses in your tax return, keeping the ATO happy.

Equity

Equity represents the portion of your property that you truly “own.” For instance, if your property is valued at $600,000 and your remaining mortgage balance is $100,000, your equity stands at $500,000. Equity can be a powerful tool, offering the flexibility to secure further properties or fund home improvements.

Rental Yield

Rental yield is essentially the income your property generates from tenants, expressed as a percentage of the property’s overall value. To calculate the gross rental yield, simply multiply the weekly rent by 52, then divide by the property’s value.

Loan-to-value ratio (LVR)

LVR, is the proportion of the loan compared to the property’s value. Most lenders prefer an LVR of 80% or less, meaning you’d need a 20% deposit. Falling short of this threshold could mean paying lenders’ mortgage insurance—a safeguard for the lender, not you, and a potential extra expense.

Armed with this guide, we hope you’re feeling more at ease with the property investment jargon.

Remember, your mortgage broker is on hand to tailor your lending strategy, ensuring it aligns perfectly with your investment aspirations. Ready to dive into the property market? Reach out today for personalised support.

This article is intended for informational purposes only and does not constitute legal, tax, or financial advice. Always seek professional counsel tailored to your specific situation. Remember, all loan applications are subject to the lender’s approval and conditions, including fees and charges .

What happens to my loan if my partner and I divorce?

Thu, 25 Jul 2024 03:42:22 GMT

Wondering what happens to your loan if you and your partner divorce or separate? Many of the married couples in Australia that divorce do so after buying a family home. If this is looking like a scenario you are facing, we’ve summarised how you can handle your mortgage in this event.

Who will have to pay the mortgage after the divorce?

Regardless of your relationship status, the mortgage will still need to be repaid. If both you and your ex-partner are named on the loan agreement, you both have an obligation to meet your monthly repayments, regardless if you are living there or not. However, there are a few options you can consider.

Option 1: Transfer ownership of property

Depending on your circumstances, your court orders may stipulate that you either acquire the jointly owned property in your own right, or alternatively, your partner will acquire the property – this is called a transfer of ownership.

This may only be possible if you qualify for a home loan as a single applicant as you will need to take over the mortgage in your own capacity and afford the repayments yourself. Applying for the mortgage this way essentially mimics the process of a standard refinance application. You can choose to internally refinance with your existing lender, or alternatively take the opportunity to review the market and refinance to a new lender who may be able to offer more competitive features (this is where your broker can assist).

As usual, the lender will assess your borrowing capacity and ability to service the loan based on income, outgoings, monthly living expenses and the value of other loans you currently have (e.g. credit card debt, car loans, personal loans, HECS/HELP).

Whether the property is wholly transferred into your name or your partner’s, a transfer form will need to be generated to confirm the arrangement.

Option 2: Sell the property

Many separated couples opt for this incase where neither party can afford to meet the repayments alone. On a more positive note, if the property has been owned for a long period of time, there may be a significant amount of equity built up, meaning you could use this towards a deposit on another property. The profits will be divided accordingly between both spouses as directed by the court orders.

What happens if your ex-spouse refuses to sell?

In the event that your partner declines to sell the property that you both own, or you are unable to come to an agreement, the Family Court of Australia has the authority to compel them to do so. In the context of a divorce, the court can issue an order to enforce the sale of a house.

Have further questions, or want to explore which option is best for you? Chat to our leading professional lending experts today.

*This article provides general information only and has not considered your personal situation. Our comments strictly refer to the mortgage component of a divorce, of which the outcome is dependent on court orders and what has been agreed upon by both parties in legal proceedings. You should always seek professional advice in relation to your individual situation.

Fixed vs. Variable Rate?

Thu, 06 Jun 2024 05:07:32 GMT

So, you’ve decided to buy a property. How exciting! Understanding the world of home loans may be confusing like what the difference is between a fixed and variable interest rate home loan.

Both home loans setups offer unique advantages and what is better will depend on your situation + objectives.

Here are some of the key factors to consider when working out which type of home loan is right for you.

What is a fixed rate home loan?

Pros of a fixed rate home loan:

Key points:

Protect yourself against interest rate rises
Lock in your interest rate so you know what your repayments will be
Plan and set financial goals with ease

Cons of a fixed rate home loan:

A fixed rate home loan is not as flexible as a home loan with a variable rate. This may be worth considering if you expect your financial situation could potentially change in the future.

Key points:

Rate cuts won’t benefit you
Limits a borrower’s ability to pay off their loan faster by restricting extra repayments or capping them at a certain amount per year
Break costs may be charged if you repay your loan early or refinance during a fixed rate period
Redrawing funds is not available on a fixed rate home loan

What is a variable rate home loan?

A variable rate home loan is a loan with an interest rate that may change over time. If you choose this type, you may be able to take advantage of any interest rate decreases over your loan’s term.

Pros of a variable rate home loan:

Variable rate home loans tend to offer more flexibility and include more features.

Key points:

If rates fall and you’re on a variable rate, this means you’ll reap the benefits of lower interest and repayments
Allows for a wider range of repayment options, including the ability to pay off your loan faster without incurring interest rate break costs
If you wish to refinance, it’s easier to switch to a different lender or home loan product if you’re on a variable rate, without attracting break costs

Cons of a variable rate home loan:

If interest rates go up, your repayments could increase.

Key points:

Lenders can change a variable interest rate at any time generally according to the market. For borrowers, this means their rate is likely to fluctuate over the life of their loan. If your bank raises rates, your repayments will rise
It can be harder to budget for the future as you can’t be sure how interest rates might move

Split Rate Home Loans

Want to find out more about your home loan options? Get in touch with our team today.

5 ways to finance your renovation

Thu, 06 Jun 2024 04:59:51 GMT

Are you looking to transform your totally loveable but slightly daggy property into your dream home?

With property prices on the rise in many markets, renovating may be a more suitable option for many people rather than moving on to another property.

Whether you’re looking to rework your garden into a tropical oasis, update your 1960s bathroom or remodel your retro blue kitchen, there are several ways to fund your renovation.

1. Use your equity

Equity is the difference between the value of your property and what you owe the bank.

Say you owe $500,000 and your property is valued at $1 million. Your equity is $500,000.

Generally speaking, borrowers can access up to 80% of their home’s equity, but it does depend on the lender and what your plans are with the money. If you borrow more than 80% of your property’s value, you’ll likely have to pay lenders’ mortgage insurance.

If you’ve paid down your mortgage somewhat or the value of your property has increased, speak to us about whether you could use your equity to fund your renovation.

We’ll explain whether you can top-up your existing loan and how that may affect your repayments, interest payable and loan term.

2. Refinance your home loan

Another option to consider is refinancing your home loan to fund your renovation goals.

By refinancing, either with your current or to a new lender, you could increase the amount you owe to the bank and thereby gain access to renovation funds.

Talk to us and we’ll assess whether it may be beneficial to refinance and run through any costs involved.

3. Redraw funds

If you have a redraw facility and you’ve been making extra repayments on your home loan, you may be able to redraw those funds for your renovation.

Keep in mind that you’ll only be able to access whatever additional payments you’ve made. This may work for smaller renos, but if you have a more costly renovation in mind, you may have to explore other finance options.

4. Take out a construction loan

If your renovation involves a knock-down rebuild, an extension, or major structural changes like adding rooms, a construction loan may be worth considering.

Construction loans differ from regular home loans in that the lender releases portions of the loan in stages as the property is built.

Usually you make interest-only repayments during the construction phase. Once the renovation is finished, you can start making principal and interest repayments.

5. Apply for a personal loan

Smaller renovation projects may be financed with a personal loan. There are two options to consider.

A secured loan means you use one of your assets, such as a vehicle, as collateral for the loan. Secured personal loans usually have lower interest rates than unsecured loans, where no asset is required as security.

Unsecured loans, on the other hand, don’t require collateral. While this means you won’t risk losing an asset, unsecured loans typically come with higher interest rates, lower borrowing limits, and shorter repayment terms compared to secured loans.

Ready to get started?

Renovating can increase the value of your property and boost its comfort factor.

Whatever your renovation goals are, we’re here to work through the finance side of things to help get your project off the ground. Get in touch today for tailored financial advice to meet your unique needs.

Source: Finance Focus

What should I do when my fixed rate expires?

Thu, 06 Jun 2024 04:51:58 GMT

Is your home loan currently on a fixed rate that’s nearing expiry? If so, you may be wondering what you should do next.

If your fixed rate is expiring within the next three months, now is the time to review your home loan and make a game plan.

What are my options?

Once your fixed term ends, you can stay with your current lender or refinance to a new one. It is best when reaching the end of a fixed term to review the market in case there may be a better option available to suit your unique needs.

Whether you stay or switch lenders, you will need to decide on what interest rate structure you prefer. Your options are:

Re-fix your home loan. With this option, you’ll know exactly what your mortgage repayments will be during the fixed term and can budget accordingly. However, if interest rates do go down, your fixed rate will remain the same and you will not benefit from any savings.
Switch to variable. Variable rates may be lower than the current fixed rates on offer and there may be advantages such as loan features and unlimited extra repayment options to help you get ahead. This may be harder to budget around as there is no certainty on what your rate will be in future. If the cash rate increases, your mortgage repayments will rise too.
Split your loan. This is when a portion of your loan is fixed and the remainder is variable, potentially allowing you to benefit from both types. Most lenders will allow you to dictate the ratio split to your preference.

We’re here to help you get on the front foot in the current environment.

We have access to all major lenders and private banks and will help you select a loan that best suits your unique situation.

Want to explore the right option for you? Get in touch with our professional experts today.

5 tips that can take the stress out of settlement day

Thu, 06 Jun 2024 04:14:10 GMT

You’ve picked out your dream home, your offer’s been given the thumbs up, and now there’s just one big step left – settlement day.

Settlement day is a mix of fun and formalities. As mortgage brokers, we’re here to make sure it all ticks along without a hitch. Read on for a lowdown on what settlement day involves and some handy hints to make sure it all goes off smoothly.

What’s settlement day all about?

Settlement day is the final step in your home-buying journey – it’s when the property is legally yours and you get those new keys. Your conveyancer and mortgage broker will sort out the complex stuff, ensuring you’re clear on every detail, from insurance to lender requirements. The actual settlement date is indicated in your contract.

What happens on settlement day?

On settlement day, it’s important that you’ve:

Conducted a final inspection of the property;
Arranged building insurance immediately after the contract is signed by the seller; and
Worked with your conveyancer to ensure all documents needed for the title transfer are ready.

On this big day, your home loan provider and conveyancer will meet with the seller’s representatives to:

Finalise the payment of the purchase price, including any applicable government fees and duties.
Complete and file all legal paperwork with the relevant authorities.
Officially transfer the title to your name, confirming your ownership of the property.

Once all documents are in order and the process is complete, the settlement is final. Congratulations! The home is officially yours, and you can collect the keys.

Getting ready for settlement day

1. Meet with your mortgage broker early

It’s smart to get advice from those in the know. Talk to us before you even start house hunting. We can help set up your home loan pre-approval and support you all the way through – from finding the right place to handling the paperwork, right up to the big day and after. Reach out to us if you need help with your conveyancer search.

2. Choose a good conveyancer

A conveyancer knows all about property law and will guide you through your rights and what you need to do during the settlement. They handle all the legal bits and pieces and make sure the property title moves from the seller to you without a hitch.

3. Set a settlement date that fits your schedule

You may be able to choose a settlement date that works better for you, especially if you’re trying to coordinate moving out of your old place. You’ll usually have between 30 to 90 days after signing the contract to get everything in order. Loans, paperwork – there’s a bit to do, so let’s talk about what timeline works for your situation.

4. Stay sharp about the paperwork

We’ll take care of the loan application and make sure your pre-approval is on track. But you’ll need to fill out and return all your paperwork promptly to avoid any hiccups. It’s important to get it right. So, don’t hesitate to seek advice from legal experts.

5. Enjoy the journey

It’s normal to feel a bit nervous as settlement day gets close but try to enjoy it. With a good team behind you, we’re aiming for a smooth experience.

Get in touch early , and let’s make this happen together.

Source: Finance Focus

What documents do I need for a home loan application?

Wed, 01 May 2024 12:46:04 GMT

You’ve decided to apply for a home loan. How exciting!

Being prepared and having your documents ready can help things move faster and more smoothly. However, it can feel overwhelming when trying to get your head around everything you’ll need. To help, we’ve prepared a breakdown of all the documentation you can expect to submit when you’re ready for that big step in your property journey.

Here’s what your broker will need:

ID :

It is a legal requirement that you confirm who you claim to be to your broker. You must provide at least one primary document such as:

Australian driver’s licence
Australian passport

Or you can supply two secondary documents such as:

Australian birth certificate
Australian citizenship certificate
Medicare card

Proof of income:

Your mortgage broker will have an obligation to verify that you will be able to afford your loan repayments based on your current financial situation. To assess this, you will need to supply documentation on your income and expenses such as:

Bank account statements showing salary credits
Payslips (for PAYG applicants)
Tax returns (for self-employed applicants)

Your financial position:

Additional to your income, your broker will look at your overall financial position when evaluating your application. Essentially, they need to know if you own anything that is of considerable value (assets) and whether you have other debts (liabilities). Assets can include:

Vehicles
Shares

Liabilities can be classified as:

Existing home loans
Personal loans
Car loans
HECS debt

In most cases, the lender requires a minimum of 3 months of statements to verify ownership and account conduct of these liabilities.

It is likely that you will also be asked about your monthly living expenses, so that it can be assessed whether you will have enough to cover mortgage repayments. Living expenses can include items such as:

Groceries
Transport
Gas
Electricity
Water bills
Insurance
TV
Phone
Internet

To verify expenses the bank will look through your everyday spending account and will match this to the expenses that you have declared to your broker.

Evidence of professional body membership: (Chartered Accountants only)

It is essential that you provide evidence of professional body membership when applying for a home loan in order to access exclusive benefits specific to your industry, including:

Buying with a 10% deposit
Waived Lender’s Mortgage Insurance (LMI)
No parental guarantor required

Check with your broker:

What you may need to submit to the lender can vary according to your individual situation, so it is always best to have a quick chat with your trusted broker ahead of time.

This will make your application process smoother, meaning you can access your dream home sooner!

Have a question about the home loan process? Speak to our friendly team today .

Why do chartered accountants get special treatment when applying for a home loan?

Wed, 01 May 2024 12:46:04 GMT

As an accounting professional, you may be eligible for special home loan benefits and exemptions.

With many facing the escalating cost of living, obtaining a home loan is becoming increasingly complex. One of the main barriers to owning a home is the challenge of saving the initial deposit required, with rising expenses making it tougher for aspiring homeowners to enter or advance in the housing market. However, there is a bright side for chartered accountants, as there are exclusive benefits and exemptions available to them in the Australian mortgage market.

Why is this?

Simply put, some types of accounting professionals are considered low risk by some lenders. This is because they typically have a higher level of job security than most other industries. As a result of this they have a historically low rate of loan delinquencies as a cohort.

What are the benefits available?

Most notably, the ability to buy with a 10% deposit without having to pay Lender’s Mortgage Insurance (LMI) which significantly decreases the burden of upfront saving. There are also options available for some to borrow up to 100% with select lenders under certain circumstances. The favourable credit policies can also maximise borrowing capacity for those eligible.

What is Lender’s Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is a one-off insurance fee that’s added on to your home loan if you borrow more than 80% of the property value. The purpose of LMI is to protect the lender from financial loss if the borrower can’t afford to meet their home loan repayments and can be extremely expensive. For example, using a 10% deposit for a $1,000,000 property purchase would incur LMI upwards of $20,000.

These policies are applicable for both owner-occupied and investment properties, so it’s beneficial regardless of where you may be on the property ladder.

Who can access these benefits?

Accounting professionals, including chartered accountants, certified practising accountants, actuaries, and chartered financial analysts. If you hold evidence of professional body membership, you are likely to be eligible.

What difference does it make if I go for a mortgage broker vs. bank?

Policies vary from lender to lender and only select lenders offer these benefits. Even the lenders that do often do not train their branch staff in specific niches, so it can be frustrating to access them directly. To ensure you get the best possible result for your finance situation, speaking to a specialist broker can make a big difference.

Going through a mortgage broker offers you increased choice, which may result in a better interest rate, higher borrowing capacity and lower monthly repayments. A broker will shop around on your behalf to find you a loan based on your individual needs, facilitating the process from start to settlement free of charge.

How do I get started?

To find out if you’re eligible or to discuss your finance needs, speak to our industry experts at Accounting Home Loans today.

Disclaimer: Eligibility will depend on your unique situation. To find out what is possible for your needs, please contact us and speak to our specialists for a tailored solution. This page 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.

New Paragraph

Buying a home: The upfront costs

Wed, 01 May 2024 00:51:08 GMT

When taking out a mortgage, there are fees and expenses you need to account for in addition to the property cost. Amidst the stress of applying for a home loan, these can easily be forgotten.

Here are some of the extra costs that you’ll need to consider when you take out a home loan.

Mortgage application fees – This is a lender fee for setting up a mortgage. Most lenders charge additional fees such as loan service fees costing up to $1000. Be sure to ask your lender to itemise everything and see if they can offer reduced fee deals or package. A good broker will check this for you.
Mortgage registration fee – This is a government fee for registering your mortgage on the title of your property costing you up to $200.
Registration of transfer fee – You as the new owner of the property need to be registered at the Land Titles Office. This cost varies significantly across Australia, you can find details of the charges on the website of the state/territory revenue office here.
Stamp duty – This would be your biggest upfront cost. Stamp duty is a tax by your relevant state or territory government that is calculated based on the price of the property. Special exemptions may apply if you are a first home buyer, read our blog to find out more.
Lenders Mortgage Insurance – If you don’t have 20% of the property price or the value of the property, the lender will require you to pay for a lenders mortgage insurance policy that covers their risk in the event you default on your repayments and can cost you tens of thousands dollars. However, if you are an accounting or finance professional with evidence of a professional body membership you could be eligible to have this cost waived.
Solicitor/conveyancing fees – Your conveyancer or settlement agent should be engaged before you make an offer. They handle the transfer of ownership of the property on your behalf, which can cost up to $2500. This can include:
Completing a property and title search to ensure that the seller is legally entitled to sell.
Reviewing and exchanging the contract of sale
Arranging to pay stamp duty
Organising strata inspections and checking the body corporate records
Building and pest inspection fees – It is recommended that you organise for these inspections of the property to avoid unexpected issues later such as pest infestations or structural problem. The inspections can set you back by up to $1000, but it’s well worth the cost.
Set up fees - The costs of connecting your utilities such as electricity or internet and paying any upfront council and water rates can all add up. The amount can vary depending on when you settle and your agreement with the vendor. Also, organising connections for before or day of moving day will make the moving process a breeze. It is recommended to keep aside at least $1000 for these costs but it is wise to check with your conveyancer as well.
Body corporate fees – If you buy an apartment or Strata Titled property, be sure to request a strata report. This is useful to check if there are any disputes or debts and if it is managed well. In many cases buyers may skip this step and end up with an unpleasant surprise. A strata office or your lawyer can do the search for you and provide you with legal advice. The strata report can cost around $400 plus any extra legal fees depending on your situation.
Maintenance costs – Don’t forget to make provision for unexpected maintenance on your home, even if you decide not to undertake significant renovations. Maintenance costs can include lawn care, plumbing and small repairs.
Moving/furniture costs – Depending on whether you are moving with existing furniture or purchasing new furniture, the costs of this can add a few thousand dollars to your upfront costs.
Home & contents insurance – Most homeowners insure their home and contents against a range of threats including burglary, fire and storm. If you have a mortgage, building insurance is compulsory can cost $1000 a year. Contents insurance, however, is not mandatory but recommended.
Life and income protection insurance – Although this is not compulsory, you should consider protecting yourself and your income while you have a mortgage. Income protection provides cover in case you cannot perform your usual occupation due to sickness or injury. Life insurance on the other hand can provide money to your nominated beneficiaries in the event of your death or diagnosis of illness to cover outstanding mortgage or debts.

It’s a long list of fees we get it! Don’t be overwhelmed, a lot of these costs can vary and a good broker will try to reduce your mortgage and bank fees as far as possible. Speak to our team today to find out what the best home loan option is for you.

What you can expect when refinancing

Wed, 01 May 2024 00:44:29 GMT

Have you been thinking of refinancing your mortgage but don’t know where to start? Here’s our step by step guide to help you better understand what’s involved in the process.

Refinancing is the process of switching your existing home loan to a different lender or changing loan products. Many Australians choose to refinance to take advantage of benefits such as lower interest rates, to reduce monthly payments, consolidate their debts or to access equity in the value of their home. Refinancing can also supply you with extra cash in the bank!

So, what do you need to consider to decide if refinancing is right for you? And what’s involved in the process?

1. Understand why you’re refinancing

Being clear on why you want to refinance and what you hope to achieve should be the first question you ask yourself. Knowing the answer to this will help your broker recommend the best solution tailored to your current situation.

2. Comparing home loans

Now that you have a clear picture of why you want to refinance, it’s time to compare home loans. We will discuss available loan options with you that meet your goals and will place you in a better financial setup. Once you’re happy with our proposal, we will ask you to provide required information and supporting documents to get the ball rolling on your application. You can read more on what supporting documents you can generally expect to provide when applying for a home loan here.

3. Apply for a new home loan

The refinancing application process works in much the same way as when you applied for your existing mortgage. Upon receipt of your supporting documents, we will prepare and submit your application. We will also order a complimentary valuation to work out how much your home is currently worth.

4. Loan approval

Once the lender has these details, they will ask your permission to conduct a credit check to ensure your financial records match those you’ve provided. If your credit history is satisfactory, they will approve you for a loan. Once approved, your new lender will send you a new contract and mortgage documentation for signing.

5. Settlement

Congratulations, you’ve now refinanced your home loan! Your new lender will arrange to pay out your existing loan with your initial lender. You will officially start making repayments to your new lender.

Why refinance with a broker? Well, mortgage brokers can offer you far more options than a bank, which allows you to snap up the best deal possible. A good broker will guide you through every step of the loan process and will regularly assess your mortgage to see if the rates you are getting are still competitive, something banks are not obliged to do. Working with a broker can save you time and effort during the application process, and potentially a lot of money over the life of the loan.

So, what are you waiting for? Get in touch with our friendly team today to find out if refinancing is right for you.

What to do after receiving your home loan pre-approval

martinliu@designfox.com.au (martin liu) — Tue, 30 Apr 2024 12:46:03 GMT

You’ve got your pre-approval from the bank and know your borrowing capacity. Great, what’s next? Read below for our guide on the next steps you should take:

Start looking at properties.

Do some research and get to know the market.
Look at comparable sales in the suburbs you’re considering. This will give you a better idea of what is out there for your price point and how properties are valued in the area. This will especially assist with making a fair offer.
Sign up for real estate alerts.
This way you can be notified of new listings for the areas you’re interested in. Website such as https://www.realestate.com.au and https://www.domain.com.au are great to search for listings. You should also contact real estate agents directly and let them know what you’re looking for. They can usually provide you with a shortlist of properties they have available that fit your criteria.
Attend auctions and inspections.
This is a beneficial way to identify what to look out for. Attending inspections and auctions will help you understand how competitive the market is in the area and how other buyers are behaving.
Get property reports.
Property reports will provide you with information on the sales history and value of a given property. This may be at a cost but it’s worthwhile finding out. A good broker can also organise complimentary property reports for you. To request a report, click here .

2. Be aware of what your lender requires.

Depending on the lender and type of loan you’re taking out, certain requirements must be met by the property to be eligible for the loan. A pre-approval is subject to the lender accepting the property, so it’s best to check the criteria have been met before making any offers. Examples of the criteria can include the property size, location, or zoning. Speak to your broker or lender to find out what criteria your property has to meet.

3. Find a conveyancer.

We recommend you engage with a conveyancer (or settlement agent for WA) before making an offer to assist with the legal documents for purchasing the property. A good conveyancer will advise you throughout the process and ensure you’re protected. Introducing your broker to the conveyancer will also assist with a seamless settlement process.

4. Making an offer.

Once you’ve found a property you would like to purchase, we suggest you discuss this with your conveyancer for their advice on your offer. It is recommended you discuss which conditions should be included, such as:
2 weeks cooling-off period or finance clause. We highly recommend this as it allows time for the lender to arrange a valuation and final approval. If the vendor or agent doesn’t agree to this clause, there may be some risk involved with purchasing the property. If you can’t get a cooling-off period, you should talk to your conveyancer and broker to assess the risks involved before proceeding.
Subject to a pest and building inspection that’s acceptable to the purchaser – this is to avoid committing to a property that may have undisclosed issues, costing you more down the track.
Subject to a strata report that’s acceptable to the purchaser (applicable to strata title properties) – this is to avoid committing to the property if there are outstanding disputes and debts which may also increase your strata costs.

5. Get inspections and strata reports done.

Since this will be one of the largest purchases you make, it is well worth checking organising the following reports to avoid any unexpected costs or grief later.
Pest and building inspections.
A pest and building inspection will provide you with a report on the current condition of the property and will highlight if there are any structural problems or pest infestations. Identifying these early on will prevent these issues from worsening and prepare you for any extra costs.
Strata report.
As mentioned above, this is useful to check if there are any disputes or debts and if it is managed well. In many cases, buyers may skip this step and end up with an unpleasant surprise. It is best to enquire whether the vendor has provided a strata report along with the contract of sale. Otherwise, the agent usually has recommended providers to order the report from or your lawyer can search for you.

6. Buying at auction.

Buying at auction involves committing to buy before having formal approval from your chosen lender. As well as this, you will usually need to sign a 66w which waives the cooling-off period. Due to this, purchasing at an auction can be riskier. If you do choose to bid at an auction, it is recommended you order your inspections beforehand so you are aware of the property’s condition. You should also talk to your broker and conveyancer prior to the auction to assess your risk.

7. After your offer has been accepted or you’ve won the auction.

You will be required to pay a deposit once your offer is accepted or once you’ve won the auction. This will be your guarantee to the vendor that you will follow through with the purchase. Usually, this is 5% or 10% but can vary depending on the state. These funds are held by the agents or solicitor’s trust until settlement. If you are borrowing 100% of property value, you can organise a deposit bond. If you are going to an auction you should request this from your conveyancer prior to the day.
You will need to have your formal approval from the lender organised to finalise your home loan. This will require you to provide your lender or broker with documents including the signed contract of sale and any other additional documents the lender requested as a condition of your preapproval.

If you have any questions along the process of purchasing your property make sure you contact your mortgage broker and conveyancer for advice.

Happy house hunting!