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More owners and developers are planning to construct new homes and renovate existing properties, according to the latest home building approvals data.In January 2023, only 12,185 building approvals were issued. But after trending higher throughout the year, the number of approvals reached 14,529 in November, an increase of 19.2%.Please contact me before you start a building or renovation project, so I can explain how the finance works. Unlike with a regular home loan, where you receive the money in a lump sum, a construction loan involves a series of progress payments (typically five) as your project proceeds. The advantage of this approach is that instead of paying interest on the whole loan amount, you pay interest only on the portion received.Another difference is that construction loans typically start as interest-only; you can then switch to paying principal and interest once the project is complete.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 Home building approvals trending higher

Australia's median property price reached a record $757,746 at the end of 2023, after another year of growth.The median price rose 3.0% during the pandemic year of 2020, surged 24.5% in 2021, contracted 4.9% in 2022 and then climbed another 8.1% in 2023, according to CoreLogic.The median price for the combined capitals ended 2023 at record levels, while the combined regions were just 1.5% off peak.December was the 11th consecutive month of price gains (see graph) – however, as CoreLogic research director Tim Lawless noted, it was also the smallest of those monthly gains, at 0.4%. “After monthly growth in home values peaked in May at 1.3%, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year,” he said.As interest rates move up and down, so does the average person's borrowing power. Borrowing power tended to decline in 2023 and is likely to change again in 2024 as rates evolve. The other point worth mentioning is that your borrowing power can vary significantly from lender to lender. The good news is that I can match you with a bank that wants to lend to someone with your situation.Talk to me about your borrowing powerHit 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 National property prices rose 8.1% last year

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