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The Reserve Bank of Australia (RBA) has unveiled a series of reforms, in response to an independent review commissioned by the federal government.Starting in 2024, the RBA board will meet eight times per year to assess the cash rate, rather than the current 11. Meetings will last longer; and, before each meeting, board members will have the opportunity to speak with a broader range of RBA staff."The less frequent and longer meetings will provide more time for the board to examine issues in detail and to have deeper discussions on monetary policy strategy, alternative policy options and risks, as well as on communication," RBA governor Philip Lowe said.“Likewise, the staff will have more time for analysis, with less time spent preparing summaries of recent developments.”In another change, the governor will hold a media conference after each cash rate meeting, which “will provide a timely opportunity to explain the board’s decisions and to answer questions.”Meanwhile, the federal government has decided not to grant Governor Lowe a second seven-year term. As a result, the current deputy, Michele Bullock, will assume the top job in September when Governor Lowe's term expires.Need a home loan? 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 RBA to change how it sets and communicates about the cash rate

Consumers have been warned to expect heightened scam activity and new tax scams now that tax season is almost upon us.The Australian Taxation Office (ATO) received about 20,000 scam reports in the first 11 months of the 2022-23 financial year, according to Minister for Financial Services Stephen Jones.Minister Jones said impersonation scams – in which criminals pretend to be from the ATO – were common at this time of year.Under these scams, fraudsters will contact people by unsolicited phone calls, emails, text messages and social media messages. They may offer to answer tax questions, promise fake tax refunds or direct users to fake myGov login pages. Often, their aim is to collect as much personal information as possible.The ATO will never send you a link to login to their online services or ask you to send personal information via text, email or social media.Do not respond if you receive any suspicious contact. Instead, call 1800 008 540 to check if it was the ATO speaking with you.Need a home loan? 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 Consumers warned about tax scams

The federal government will change the law so buy-now-pay-later (BNPL) products are regulated as credit products, like home loans.The reason BNPL services are regulated differently is because, technically, they’re not a form of credit, as consumers are not charged interest.However, as Minister for Financial Services Stephen Jones told the Responsible Lending & Borrowing Summit: “BNPL looks like credit, it acts like credit, it carries the risks of credit.”“We have heard that some people are opening multiple BNPL accounts, to access far more debt than they’d be able to get on a credit card or a payday loan,” he said.However, Minister Jones also said BNPL had done a lot of good for the economy, and provided a lot of benefit to both consumers and businesses.As a result, he said the government’s legislation would be “a proportionate solution” that would allow consumers to continue enjoying BNPL while establishing “appropriate safeguards”.The government plans to release exposure draft legislation later this year and introduce the final bill to parliament by the end of the year.Need a home loan? 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 Govt announces “appropriate safeguards” coming to BPNL sector

The Australian Taxation Office (ATO) has revealed it will have three key focus areas this tax time – one of which will be deductions claimed by property investors.The reason property investors are being targeted is because an ATO review found nine in ten property investors were filing faulty tax returns. Common errors included:Leaving out rental incomeMaking mistakes with property-related deductions – like overclaiming expenses or claiming for improvements to private propertiesAs a result, the ATO said it would match investor tax returns with data from home loan providers and insurance providers, to ensure investors don’t omit income or inflate deductions.“Around 80% of taxpayers with rental income claimed a deduction for interest on their loan, and this is where we’re seeing mistakes,” ATO assistant commissioner Tim Loh said.“For example, you can’t refinance an investment property to buy personal items, like a holiday to Europe or a Tesla, then continue to claim the interest expenses as a tax deduction.”The ATO's other two focus areas will be work-related expenses and capital gains tax.Need a home loan? 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 ATO reminds property investors to take care with their tax returns

Australia's mortgage market is experiencing a significant shift, with many homeowners coming off two-year and three-year fixed-rate loans onto much higher variable rates today.Starting during the 2020 pandemic, there was a boom in fixed-rate borrowing, as lenders slashed their fixed rates to record-low levels and many borrowers took advantage. At the peak, almost 40% of outstanding home loans in early 2022 were fixed, which was “roughly twice their usual share from prior to 2020,” according to a research paper published by the Reserve Bank of Australia (RBA). As of March 2023, about 25% of fixed-rate loans outstanding in early 2022 had expired. By the end of 2023, another 40% will expire; and by the end of 2024, another 20%. This is what the media has been referring to as the 'fixed-rate cliff'.Here are three tips if you're about to revert from a fixed to a variable loan:Start budgeting right now for higher interest ratesContact me to discuss whether you could refinance to a new lender with a more suitable fixed or variable rateLimit your spending to increase your chances of qualifying for a new loanSwitching from fixed to variable? 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 What you should know about the ‘fixed-rate cliff’

Things are looking up for owners of units, whether owner-occupiers or investors. After the national median unit price fell for 10 consecutive months, it increased in both March (0.6%) and April (0.7%), according to CoreLogic. CoreLogic economist Kaytlin Ezzy said this could signify “the start of a slow recovery phase, with inflation seemingly moving past its peak and consumer sentiment rising from near-record lows”. Meanwhile, unit rents are not only surging (up 14.8% over the year to April), they’re growing significantly faster than house rents (8.4%). “The mismatch between [unit] rental supply and demand has seen capital city rental growth reaccelerate, which will be unwelcome news to many tenants already struggling to find affordable rental accommodation,” Ms Ezzy said.“While units across each of the capitals and rest-of-state regions still offer a more affordable rental alternative compared to houses, the stronger rental growth seen in the medium to high-density sector, in part due to their relative affordability, has seen the gap narrow.”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 Unit prices and rents heading north

It's too early to say first home buyers are back, but they've certainly made a welcome return to the market, according to the latest data from the Australian Bureau of Statistics.The number of new owner-occupier first home buyer loan commitments rose 15.8% in March, after reaching a five-year low in February.That said, first home buyer activity was 21.8% lower than the year before and 50.5% lower than the January 2021 high. Now that property prices appear to be rising again (see first story in newsletter), it might be wise for first home buyers to enter the market sooner rather than later, before prices rise further. Saving a deposit can be hard, but there are two ways to speed up the process.Under the First Home Guarantee, the federal government helps eligible first home buyers purchase a property with just a 5% deposit without having to pay lender’s mortgage insurance. Income and price caps apply.First home buyers who have parental support can use a guarantor home loan to enter the market with, potentially, a 0% deposit. Again, conditions apply.I love helping first home buyers get on the property ladder.Contact me for expert advice.See how much you can borrow now. 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 First home buyer activity jumps 15.8% month-on-month

The Reserve Bank of Australia (RBA) is set for a shake-up, following a review commissioned by the federal government.The review made 51 recommendations, including specific measures to create a clearer monetary policy framework and stronger monetary policy decision-making.Treasurer Jim Chalmers said the government agreed in-principle with all the recommendations and would work with the RBA and parliament to implement them.Subject to consultations with the opposition, the Treasurer said the government would introduce legislation to:Reinforce the independence of the RBA in the operation of monetary policySplit the RBA board into two – with one board to oversee monetary policy and the other governanceStrengthen the RBA’s mandateClarify that Australia’s monetary policy framework will aim for both price stability and full employmentTreasurer Chalmers also said the government would institute a more transparent process for appointing external members to the RBA boards.Need a home loan? 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 Treasurer reveals plans to reform RBA