Property investors have enjoyed a golden run over the past five years, during which the national median rent increased 39.7%. However, in July, rents increased just 0.1%, which was the slowest growth since 2020, according to CoreLogic.At the same time, annual rental growth has been trending down over the past few months.Between February and July, rental growth fell from 9.7% to 8.0% in the combined capitals, although it rose from 5.4% to 7.1% in the combined regions. The big cities appear to be close to their rental affordability limit, while the regions, which have had less rental growth, might have more capacity to absorb higher rents. Despite the slowdown of the national rental market, CoreLogic economist Kaitlyn Ezzy said rents were likely to keep increasing.“Low supply will likely continue to put upward pressure on rents, albeit at a slower pace,” she said.“With dwelling approvals and commencements at historic lows, providing sufficient new housing will not be a quick fix and remains a genuine challenge for policymakers, the property industry and, of course, tenants.”In other words, while rents are likely to keep rising, tenants are likely to get some relief and investors shouldn’t budget for the double-digit-percentage increases of previous years.Need a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Rents expected to keep growing, but at slower pace
Property investors very active in the market
Home loan volumes have significantly increased over the past year, especially among investors. Investors committed to $10.67 billion of mortgages in May, according to the latest data from the Australian Bureau of Statistics. That was 29.5% higher than the year before. At the same time, owner-occupier borrowing activity rose 12.2%, to $18.13 billion. Investors were responsible for 37.1% of the home loans that were issued in May. Despite the surge, that's only slightly higher than the long-term average (in records dating back to 2002) of 35.9%. By way of comparison, investors' share of home loan activity bottomed out at 22.4% in 2021 and peaked at 45.9% in 2015, while owner-occupiers’ share reached a low of 54.1% in 2015 and a high of 77.6% in 2021. If you’re thinking about applying for a home loan, here are three important tips to make yourself more creditworthy in the eyes of lenders:Reduce your spending, to free up money to pay off a loan Pay all your bills on time, to maintain a good credit score Contact a broker, who will compare the market for youNeed a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Property investors very active in the market
New vendor data shows interesting sales trends
Record property prices are proving to be good news for vendors, with 94.3% of all vendors in the March quarter selling their home for more than they'd originally paid, according to CoreLogic. That was the fourth consecutive quarterly increase and the highest share since 2010. However, the share of vendors who made a gross profit varied significantly from capital city to city, reflecting different market performance. Another significant finding was that house owners were more likely to record a profit than unit owners, by a share of 97.1% to 89.0%. Also, there was a clear link between the amount of time someone had owned a home and the size of their profit. Vendors made a median profit of $82,000 with a hold period of up to two years, $275,000 for up to 10 years, $435,000 for up to 20 years and $780,000 for up to 30 years. Need a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about New vendor data shows interesting sales trends
Investment Loans: How Much Can I Borrow For Investment Property?
If you are thinking about buying an investment property, you might wonder, "How much can I borrow for investment property?" This is an important question because it helps you understand your options and plan your finances. Knowing the amount you can borrow will guide you in finding the right property that fits your budget and investment goals.Investment loans can vary based on several factors, such as your income, credit score, and the value of the property you want to buy. It’s essential to do your research and speak with a mortgage broker to get a clear picture of your borrowing potential. In this blog, we will explore the key factors that affect how much you can borrow and what you need to consider when looking for an investment loan. How Much Can I Borrow For An Investment Property? When you ask, "how much can I borrow for an investment property," the answer depends on several factors. Lenders look at your income, credit score, and existing debts. They want to know if you can repay the loan. A higher income and a good credit score usually mean you can borrow more money. Lenders also consider the type of property you want to buy. A single-family home may allow you to borrow more than a multi-family property or a fixer-upper.Another important factor is your down payment. Most lenders require you to pay a portion of the property’s price upfront. This amount can vary, but it is often around 20% for investment properties. If you can save a larger down payment, you may be able to borrow more. A bigger down payment also lowers your monthly payments and interest rates, making it easier to manage your finances.To find out exactly how much you can borrow, consider getting pre-approved for a loan. This process involves a lender reviewing your financial situation. They will give you a specific amount that you can borrow based on your details. Knowing this nu mber can help you focus on properties within your budget. It also shows sellers that you are a serious buyer, making your offers more attractive. How Much Can I Borrow For An Investment Property: 5 Things Banks Look At When Assessing Borrowing Power When considering how much you can borrow for an investment property, banks look at several key factors. Understanding these factors can help you prepare your finances and improve your chances of getting approved for a loan. Here are five important things banks assess when determining your borrowing power.First, banks evaluate your financial position. They will look closely at your income, expenses, and any existing debts. A strong financial position shows that you can handle the repayments on an investment property loan. If you have a steady job and a good income, it increases your chances of borrowing more. Additionally, having a low debt-to-income ratio is favourable. This means you have more income available to cover new debt.Second, banks consider the deposit you can provide. Typically, you will need to … [Read more...] about Investment Loans: How Much Can I Borrow For Investment Property?
Home Loan Repayment Calculator: A Comprehensive Guide on Repayments on 300k Mortgage
Buying a home is a big step, and understanding your mortgage is important. One of the best tools to help you is a home loan repayment calculator. This tool can show you how much you will pay each month for repayments on 300k mortgage. Knowing these numbers can help you plan your budget and make smart financial choices.In this comprehensive guide, we will explain how to use a home loan repayment calculator. We will also discuss different factors that affect your repayments on a 300k mortgage, such as interest rates and loan terms. By the end of this guide, you will have a clear understanding of what to expect and how to manage your mortgage payments effectively. How Much Deposit Do You Need For A $300,000 Mortgage? To buy a home worth $300,000, the amount you need for a down payment can vary. If you choose a traditional option of 20%, you would need to pay $60,000 upfront. This larger down payment can help you avoid private mortgage insurance (PMI) and may lead to better interest rates. However, there are also options for lower down payments. For example, with an FHA loan, you can put down as little as 3.5%, which would be $10,500 for a $300,000 house. Some conventional loans allow for even lower down payments of 3%, meaning you would need only $9,000 to start.When considering how much deposit you need, it's also essential to think about your monthly repayments on a $300k mortgage. If you put down 20%, your monthly payments will be lower compared to a smaller down payment. For instance, with a 20% down payment and a 6% interest rate, your monthly payment could be around $1,816. If you only put down 5%, your monthly payment might rise to approximately $2,440, including PMI. This shows how a larger deposit can significantly affect your monthly financial commitment.In addition to the down payment, you should consider other costs associated with buying a home. These include property taxes, homeowners insurance, and maintenance fees. All these expenses can add up, so it's wise to budget for them when planning to purchase a $300,000 home. Understanding these factors will help you make informed decisions about how much you can afford to pay upfront and what your ongoing costs will be. How to Use A Home Loan Repayment Calculator A home loan repayment calculator is a useful tool that helps you estimate your monthly payments and the total interest you'll pay over the life of your loan. Here's how to use one:When using a home loan repayment calculator, you'll need to enter your loan details, such as the loan amount, interest rate, and loan term. For example, if you have a 300k mortgage, you would enter "300,000" as the loan amount.The loan term is the number of years you have to repay the loan. Most home loans have terms of 15 or 30 years. The longer the term, the lower your monthly payments will be, but you'll pay more interest over the life of the loan.Home loan repayment calculators typically offer different … [Read more...] about Home Loan Repayment Calculator: A Comprehensive Guide on Repayments on 300k Mortgage
Fixed Vs Variable Home Loans Rates: Which is Better?
When it comes to choosing a home loan, one important decision is whether to go for fixed vs variable rates. Fixed home loan rates stay the same throughout the loan term, giving you peace of mind with predictable payments. On the other hand, variable rates can change over time, which means your payments may go up or down. Understanding these options is key to making the best choice for your financial situation.In this blog, we will explore the differences between fixed and variable rates. We will discuss the benefits and drawbacks of each type of loan to help you decide which is better for you. Whether you prefer the stability of fixed home loan rates or the potential savings of variable rates, we aim to provide clear information to guide your decision. What Are Fixed Rates? Fixed rates are interest rates that stay the same for a set period of time. This means that if you borrow money, like for a loan or a mortgage, your payments will not change. For example, if you have a fixed-rate mortgage for 30 years, your monthly payment will be the same every month for those 30 years. This can make budgeting easier because you know exactly how much you need to pay each month.When deciding between fixed vs variable rates, many people choose fixed rates for the security they offer. They prefer knowing their payments will not change, even if interest rates in the market rise.Fixed rates are often used for long-term loans, such as home loans or car loans. They provide stability and peace of mind for borrowers. Knowing that your interest rate is locked in can help you plan your finances better. Overall, fixed rates are a popular choice for those who want to avoid surprises in their monthly payments. Pros and Cons of Fixed Rates Home Loans Fixed rates home loans are a popular choice for many homeowners. One of the main advantages of a fixed rate is that your monthly payments will stay the same for the entire loan term. This can make budgeting easier and help you plan your finances better. Another benefit is that you are protected from interest rate rises, which can happen with variable rate loans. This gives you peace of mind and security.However, fixed rates home loans also have some downsides. If interest rates go down during your loan term, you won't be able to take advantage of the lower rates. Your payments will stay the same, even if the market rates are lower. Another potential drawback is that fixed rate loans often have higher interest rates than variable rate loans. This means you may end up paying more interest over the life of the loan. What Are Variable Rates? Variable rates are interest rates that can change over time. They are often used in loans and credit products, such as mortgages and credit cards. Unlike fixed rates, which stay the same for the entire loan period, variable rates can go up or down based on market conditions. This means that your monthly payments can also change, making it … [Read more...] about Fixed Vs Variable Home Loans Rates: Which is Better?
First home buyers and single parents get more housing support
The federal government has allocated another 50,000 places across Australia to its Home Guarantee Scheme (HGS) for the 2024-25 financial year.That includes 35,000 places for the First Home Guarantee and 10,000 for the Regional First Home Buyer Guarantee. Under the first program, the government supports eligible first home buyers to purchase a property with a 5% deposit, without having to pay lender's mortgage insurance (LMI). The second program is identical, but applies to regional applicants purchasing regional properties.The HGS also includes 5,000 places for the Family Home Guarantee, through which the government helps eligible single parents and single legal guardians to purchase a property with a 2% deposit, without paying LMI.For all three schemes, applicants must be owner-occupiers. Income caps apply ($125,000 for single applicants, $200,000 for joint applicants), as do property price caps (which vary from state to state).The HGS has strict conditions and is not available through all lenders. If you’re unsure whether you’re eligible or how the scheme works, reach out and I’ll be happy to help.Get in touch to apply Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about First home buyers and single parents get more housing support
Record loan sizes increase the need to shop around
With property prices at record levels, the size of the average mortgage has also hit new highs, making it more important than ever that you shop around for the right loan.Australia’s median property price reached a record $794,000 in June, up 8.0% year on year, according to CoreLogic. Meanwhile, the size of the average owner-occupied loan reached a record $626,055 at the end of May (the most recent month for which we have data), up 7.1% year on year, according to the Australian Bureau of Statistics.Just as interest rates can vary significantly from lender to lender, so can your borrowing power, depending on your financial profile, the type of property you’re planning to buy and the location of the property. Sometimes, one institution might be willing to lend you tens of thousands – or even hundreds of thousands – of dollars more than another institution. Trying to source all this information yourself would be very time-consuming. But brokers have an intimate understanding of the credit policies of many different lenders. That’s why, if you get a home loan through a broker, they can recommend a lender that is suitable for someone with your profile and scenario.Talk to me about your borrowing power Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Record loan sizes increase the need to shop around