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Every state has recorded a rise in property investor borrowing over the past year, with Western Australia leading the way.Throughout Australia, investors took out $9.72 billion of home loans in November 2023, which was 18.0% higher than the year before, according to the most recent data from the Australian Bureau of Statistics.Looking at the individual states, the year-on-year increases in investor borrowing ranged from 3.5% in Victoria to 42.1% in Western Australia. This strong increase in property investor activity might be because investors are enjoying a double wealth gain right now: during 2023, investors enjoyed increases in both the national median property price (by 8.1%) and national median rent (by 8.3%), according to CoreLogic.One of the key things to remember with investor loans is that your outcomes can vary significantly from lender to lender. Depending on your financial position and the property you want to buy, different lenders will offer you different loan products, loan sizes and interest rates. As your broker, I will compare the market for you and shortlist lenders that suit someone with your specific scenario.Want to invest in property in 2024? Let's talkHit 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 Investors commit to $9.72bn of home loans

Do First Home Buyers Pay Stamp Duty Yes! First home buyers pay stamp duty.When it comes to purchasing a first home, there are numerous financial considerations that prospective buyers must take into account. One crucial aspect is stamp duty, a tax levied by the government at the time of a property purchase. This article delves into the implications of stamp duty for first home buyers and explores various ways to minimize this cost. What is Stamp Duty and How Does it Affect First Home Buyers? Explanation of Stamp DutyStamp duty is a NSW government tax imposed on a range of transactions, including the purchase of property and land. The amount payable is based on the property’s value, and it must be paid within a designated time frame after the property is purchased. The duty exemption is a crucial aspect of this tax and often varies between states.Stamp Duty for First Home BuyersFirst home buyers are typically required to pay stamp duty when they are about to buy a home. However, various concessions and exemptions might be available to assist in reducing this financial burden. These concessions are put in place to support eligible first home buyers, recognising the challenges they face in entering the property market.Stamp Duty Concessions AvailableStamp duty concessions are government initiatives that reduce the amount of duty payable by first home buyers. These concessions are designed to make homeownership more accessible by lessening the financial strain associated with purchasing property. What are the Eligibility Criteria for First Home Buyer Grants and Stamp Duty Concessions? Eligibility Criteria for First Home Buyer GrantsEligibility for first home buyer grants is generally determined by factors such as the buyer's residency status, the property's value, and whether it is a principal place of residence. These grants aim to provide financial assistance to those seeking to buy their first home.Stamp Duty Concession EligibilityThe eligibility criteria for stamp duty concessions primarily focus on the buyer's status as a first home purchaser, the value of the property, and whether it is intended for residential purposes. These criteria aim to alleviate the financial pressure felt by first home buyers when entering the property market.First Home Owner Grant Application ProcessApplying for the First Home Owner Grant involves completing an application form and providing the necessary supporting documentation. This process can often be facilitated through the relevant state government authority, streamlining the application process for eligible first home buyers. How Can First Home Buyers Save on Stamp Duty? Stamp Duty Exemptions for First Home BuyersStamp duty exemptions for first home buyers are intended to completely waive the duty payable on the purchase of their first property. This significant financial benefit encourages and supports individuals in their quest to buy their first home.Available … [Read more...] about Do First Home Buyers Pay Stamp Duty

Despite rising interest rates, Australians have improved their credit score over the past year.The national average credit score rose from 846 in 2022 to 855 in 2023, according to an analysis of more than two million credit scores by credit bureau Equifax.That means the average Australian has improved from ‘very good’ to ‘excellent’, based on Equifax’s gradings:Excellent = 853 to 1200Very good = 735 to 852Good = 661 to 734Average = 460 to 660Below Average = 0 to 459Lenders generally check your credit score when you apply for a loan – and the higher your score, the more likely your application will be approved and you’ll get a lower interest rate.To build and protect your credit score, Equifax recommends:Establishing a rainy-day fundPaying bills, loans, credit cards and rent on timeChecking your score regularly (you can order a free copy of your credit report every three months)Closing unnecessary credit accountsLimiting the number of credit applications you makeContacting your lender if you’re worried about falling behind on paymentsNeed a home loan? Let's talk.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 Average credit score hits 855

Refinance Your Home Loan: Get A Better Interest Rate Are you considering refinancing your home loan to secure a better interest rate? Home loan refinancing can be a beneficial financial move, allowing homeowners to potentially save money by obtaining a lower interest rate. In this comprehensive guide, we'll explore the various aspects of refinancing a home loan, including its benefits, the right time to refinance, and understanding the options available to you Why Refinance Your Home Loan? Refinancing a home loan can offer numerous benefits, potentially saving you thousands of dollars in interest payments over the life of the loan. By securing a lower interest rate, you can decrease your monthly repayments and ultimately reduce the total interest paid over the loan term. Additionally, refinancing can provide an opportunity to access the equity in your home, allowing you to use the funds for other investments or financial needs. When considering whether to refinance, it's essential to weigh the potential savings against any associated costs. Types of home loans available for first home buyers First home buyers may choose from a variety of home loan options, including fixed-rate loans, variable-rate loans, and specialised government-backed schemes such as the First Home Loan Deposit Scheme and the Family Home Guarantee. Each option has its own benefits and considerations, making it crucial for buyers to compare them carefully Benefits of Refinancing Your Home Loan Refinancing your home loan can result in a lower interest rate, reduced monthly repayments, and potential access to home equity, which can be used for other investments or financial requirements. When is the right time to refinance your home loan? Timing is crucial when it comes to refinancing a home loan. It's important to consider factors such as current interest rates, your financial situation, and the potential savings from refinancing.Additionally, if you're planning to access the equity in your home, the timing of the refinance should align with your investment or financial needs. Factors to Consider Before Refinancing Prior to refinancing, it's essential to assess the associated costs, potential savings, your current loan terms, and any changes in your financial circumstances. Understanding these factors can help you make an informed decision about whether to proceed with refinancing your home loan. Understanding Home Loan Refinancing Options When considering home loan refinancing, it's important to understand the various options available to you. Whether it's choosing between a fixed rate home loan and a variable rate home loan, comparing different offers, or understanding the steps involved in the refinancing process, having a comprehensive understanding of your options is crucial to making the right decision. Fixed Rate vs. Variable Rate Home Loan Refinancing One of the key decisions when refinancing … [Read more...] about Refinance Your Home Loan: Get A Better Interest Rate

Buy Your First Home with this First Home Buyer Loan Guide A first home buyer loan is a type of loan that is specifically tailored to help individuals who are purchasing their first home. These loans often come with special incentives and can make it easier for first-time buyers to enter the property market.Understanding the concept of a first home buyer loan is essential for those looking to purchase their first property. These loans typically offer lower interest rates and reduced deposit requirements, providing an accessible entry point into home ownership for eligible individuals Eligibility criteria for first home buyer loans Eligibility for first home buyer loans varies by location and lender. In general, individuals must be over 18 years of age and Australian citizens or permanent residents. Additionally, income and property value limitations may apply to qualify for these loans. Types of home loans available for first home buyers First home buyers may choose from a variety of home loan options, including fixed-rate loans, variable-rate loans, and specialised government-backed schemes such as the First Home Loan Deposit Scheme and the Family Home Guarantee. Each option has its own benefits and considerations, making it crucial for buyers to compare them carefully Buying your first home with a home loan Navigating the process of buying your first home with a home loan involves several key steps. From understanding deposit requirements to applying for pre-approval, being well-informed can help streamline the home buying journey Deposits required for purchasing your first home When buying your first home, you will typically need to provide a deposit. This can range from 5% to 20% of the purchase price, depending on the lender and loan type. First home buyers may be eligible for government assistance schemes to reduce their deposit burden. Applying for a home loan to buy your first home After determining the deposit amount and identifying a suitable property, first home buyers may proceed to apply for a home loan. This process entails submitting financial documents, undergoing credit checks, and potentially paying lenders mortgage insurance to protect them in case of default. First Home Owner Grant After determining the deposit amount and identifying a suitable property, first home buyers may proceed to apply for a home loan. This process entails submitting financial documents, undergoing credit checks, and potentially paying lenders mortgage insurance to protect them in case of default. Criteria for eligibility for the first home owner grant After determining the deposit amount and identifying a suitable property, first home buyers may proceed to apply for a home loan. This process entails submitting financial documents, undergoing credit checks, and potentially paying lenders mortgage insurance to protect them in case of default. How to apply for the first home … [Read more...] about Buy Your First Home with this First Home Buyer Loan Guide

Home loan borrowing activity is increasing among both owner-occupiers and investors. Owner-occupiers committed to $17.23 billion of mortgages in October, according to the latest data from the Australian Bureau of Statistics. That was 5.6% higher than the month before and 1.4% higher than the year before. Investors committed to $9.52 billion of home loans, which was up 5.0% on the previous month and 12.1% on the previous year.  Collectively, Australians signed up for $26.75 billion of mortgages, which was 5.4% more than the previous month and 4.9% more than the previous year.Meanwhile, borrowers refinanced $17.35 billion of existing home loans with new lenders. That was high by historical standards, but was 7.0% lower than the month before and 5.0% lower than the year before, as refinancing has declined from the record levels experienced between March and July. Get in touch if you need a home loan 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 Mortgage borrowing increases 5.6% month-on-month

Reserve Bank of Australia (RBA) governor Michele Bullock has outlined why the RBA might be forced to make another increase to the cash rate.The challenge, as she explained in a speech to the Australian Business Economists, is that inflation has entered a new phase, which will make it hard for the RBA to reduce inflation from 4.9% now to its target range of 2-3%.Governor Bullock said the initial surge of inflation, during which inflation rose from 2.1% in July 2021 to 8.4% in December 2022, was largely driven by international supply-chain disruptions. Now, though, the remaining inflation challenge “is increasingly homegrown and demand-driven”. We know that because:Inflation is broad-basedPrices for services (such as hairdressers and dentists) are “rising strongly”Companies are struggling to keep up with customer demand "This point is important because it has implications for the appropriate policy response," Governor Bullock said.If inflation was still being driven by international supply-chain disruptions, raising the cash rate would have little effect. “However, a more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand,” she said.Need a home loan? Let's talk.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 Inflation fight has entered new phase: RBA

An increasing number of property investors are buying interstate, potentially because they’re chasing affordability, diversification or stronger returns. PropTrack has reported that, over the course of this year, 23% of all buyer enquiries on realestate.com.au have come from people based in a different state. That compares to 17% in 2022, 15% in 2021 and 11% in 2020. South Australia is the state that’s received the most interstate enquiries this year, at 29%, followed by Queensland (27%), Western Australia (25%), Victoria (23%) and New South Wales (15%). If you’re a property investor who doesn’t want to self-manage your asset and doesn’t feel the need to drive by the home from time to time, it makes sense to at least consider buying throughout Australia rather than just locally, so you have more options. Get in touch if you’re thinking about buying an investment property, whether locally or interstate. I’ll help you get a home loan pre-approval, so you know your budget. Want to buy in 2024? Let's talkHit 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 More and more people buying real estate across state boundaries