Mortgage Refinance Beginners Guide 2024 Refinancing a mortgage can seem like a daunting task for beginners, but understanding the process can lead to substantial financial benefits. This beginner's guide to refinancing your home aims to provide a comprehensive overview of the mortgage refinancing process, covering its benefits, drawbacks, and factors to consider before making this important financial decision. What is Mortgage Refinancing? Mortgage refinancing involves replacing an existing mortgage with a new loan, typically to take advantage of better interest rates, access home equity, or reduce monthly payments. The refinancing process allows homeowners to renegotiate the terms of their home loan, potentially saving money in the long run. Understanding the Refinancing Process Refinancing is the process of paying off an existing mortgage with the proceeds from a new mortgage, using the same property as collateral. This allows homeowners to secure a new loan with better terms. Benefits of Mortgage Refinancing The benefits of refinancing a home mortgage include potentially lowering the interest rate, accessing home equity for other financial needs, reducing monthly payments, and providing valuable financial relief Drawbacks of Mortgage Refinancing While refinancing offers numerous advantages, there are potential drawbacks to consider, such as closing costs, fees, and the overall financial impact of a new home loan. When Should You Consider Home Mortgage Refinancing? There are several instances when homeowners should consider refinancing their home loan in order to improve their financial situation. Steps to refinance your home loan Lowering the Interest RateOne of the primary reasons to refinance a mortgage is to secure a lower interest rate, which can result in significant savings over the life of the loan.Accessing Home EquityRefinancing allows homeowners to tap into their home equity, which can be used for home renovations, debt consolidation, or other financial needs.Reducing Monthly PaymentsBy refinancing, homeowners may be able to extend the loan term, resulting in lower monthly mortgage payments and providing financial relief. How to Refinance Your Mortgage Refinancing a mortgage involves several steps, from choosing a mortgage broker to understanding mortgage insurance and comparing home loan options.Choosing a Mortgage BrokerSelecting a reputable mortgage broker is crucial, as they can provide expert guidance throughout the refinancing process. Freshwater Finance is your most trusted option. With us, you can’t go wrong.Understanding Mortgage InsuranceMortgage insurance may be required when refinancing, so it's important to understand how it works and its potential impact on the new home loan.Comparing Home Loan OptionsExploring different home loan options and comparing their terms and associated costs is essential to finding the most suitable refinance … [Read more...] about Mortgage Refinance Beginners Guide
National property prices rose 8.1% last year
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
Investors commit to $9.72bn of home loans
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
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
Average credit score hits 855
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
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
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
Mortgage borrowing increases 5.6% month-on-month
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