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The increase in interest rates over the past six months has made it harder for Australians to qualify for a home loan, and made it more important they get help from a mortgage broker.Every rate increase of 0.50 percentage points reduces an average borrower’s maximum loan size by about 5%, according to the Reserve Bank’s head of domestic markets, Jonathan Kearns.Since May, the Reserve Bank has increased the cash rate by 2.50 percentage points – which means the average person’s borrowing capacity has fallen by about 25%.The key words here are ‘average’ and ‘about’ – because borrowing capacity varies not just from person to person but lender to lender. Two banks can offer the same borrower very different maximum loan amounts; sometimes, they might be more than $100,000 apart.With borrowing conditions getting harder, it’s vital you seek guidance from an expert broker.I work with a large panel of lenders, so I know which lenders would be more likely to offer finance to someone with your scenario. I can then present your application in such a way as to maximise your chances of approval.See how much you can borrow nowSee 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 Why your borrowing capacity is probably lower than six months ago

New analysis has revealed two big reasons why rents, which are already rising steeply, are set to continue increasing.First, the number of properties listed for rent is much lower than pre-pandemic, in both capital cities and regional areas, according to PropTrack economist Angus Moore. So supply has fallen.Second, Australian Bureau of Statistics data show a significant increase in migrant and foreign student numbers. That means demand is rising."Extra demand from returning migration amid tight housing availability will contribute to the ongoing rapid advertised rent price growth we are seeing," he said. "We’re already seeing signs consistent with that dynamic. Rents are growing especially quickly in areas that recent migrants typically move to – these are mostly inner-city areas, often near major universities."Mr Moore said "rents are likely to continue growing briskly" in the foreseeable future."Vacancy rates are low across much of the country and, with population growth returning, rental demand shows little sign of tempering."Visit us to start a conversation with one of the leading mortgage broker in Sydney, Freshwater Financial Services.Need an investment 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 Rental market conditions strongly favour investors

Even though rates are rising, you can still be able to cope with your payment through the help of mortgage brokers in Sydney.Also, refinancing on northern beaches is one of the ways to reduce your payment. However, you should think carefully about the following before you proceed with a mortgage refinance in Northern beaches:Should I refinance my mortgage or is refinancing worth it?Your monthly mortgage payment or the total interest paid throughout your home loan could be reduced if you refinance your mortgage, which can be a wise financial decision.When evaluating if refinancing in Northern beaches is good for you, there may be a variety of options to take into account. Before deciding to refinance, you should carefully analyze mortgage rate trends, the value or worth of your house, your credit scores, and even how soon you want to move.How to know if refinancing your mortgage is good for youRefinancing is generally a wise choice if it would enable you to save money, increase your equity, and speed up the repayment of your mortgage.The optimal scenario is to take this action if you can reduce your interest rate by 0.50 to 0.75 percentage points and intend to live in your property long enough to repay the closing costs.Here are some situations to help you determine when refinancing a mortgage is right for youThe cost of mortgages has decreased.The rate of mortgages for homeowners is subject to change because of several factors such as changes in the market, inflation, the state of the economy, and external factors.If mortgage interest rates decrease, you might be able to save money by arranging a loan with a lower interest rate than the one you currently have.Your credit score has gotten betterYour mortgage rate is significantly influenced by your credit. Generally speaking, you'll get a lower interest rate the better your credit score is.You desire a loan term reduction.You could wish to refinance your mortgage to a shorter loan term if you're eager to wipe off debt.If you can get a cheaper interest rate and shorten your term, you could increase your savings. You will pay less interest overall if the loan period is shorter.However, your monthly payment will likely increase in exchange, so make sure it is within your budget. Don't take the chance of going into default on your debt. A mortgage broker can help you with this.Your home has gained more value.Refinancing may be advantageous if the value of your house has increased, particularly if you need to pay off other high-interest debt or have other financial objectives.When is refinancing a bad idea?It is also conceivable that now might not be the ideal moment for a mortgage refinance. Here are four scenarios in which refinancing your house might not be a good idea.You'll be moving in a short timeHave you already set your sights on a new residence? If you want to move soon, it might not be a good idea to refinance because you won't have much time to recuperate the costs.You already have a … [Read more...] about How To Know If Refinancing A Mortgage Is Right For You

Rental listings have fallen in seven of Australia's capital cities compared to the start of the pandemic, according to realestate.com.au.The portal has reported that the number of rental properties across Australia was 31% lower in July 2022 than March 2020.Listings declined in every capital city except Canberra:Darwin down 54% (between March 2020 and July 2022)Brisbane down 42%Perth down 42%Adelaide down 38%Sydney down 30%Hobart down 25%Melbourne down 8%Canberra up 33% Amazingly, rental listings declined even more in regional locations, ranging from a 25% reduction in regional Victoria to a 63% reduction in regional Western Australia.Unsurprisingly, the fall in rental listings has led to:An increase in the number of potential renters per listingA decrease in days on marketAn increase in rental rates"As rental price pressures continue in the period ahead, this could increase the attractiveness of buying for some current tenants," REA Group senior economist Eleanor Creagh said.Want to buy an investment property? 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 Why rents are rising in many parts of Australia

Australians are making increasing use of credit cards and buy-now-pay-later services, which could potentially have implications when they make home loan applications.Credit card applications in the June 2022 quarter were 6.0% higher than the June 2021 quarter, according to Equifax, one of Australia's big three credit bureaus.Buy-now-pay-later (BNPL) applications jumped 42.2% during the same period.Lenders look at this kind of spending behaviour when they assess home loan applications.With credit cards, lenders generally assume you’ll use your entire credit limit each month, even if you use only part of it and always pay your bills on time. That can affect your borrowing power. So if you wanted to raise it, you could either reduce your credit limit or cancel your credit card and pay by debit instead.BNPL use can also affect your borrowing power, because lenders may wonder how much of a mortgage you could be trusted with if you make a lot of non-essential purchases and seem unable to pay for them in full at the time. So to protect your borrowing power, you could either reduce your BNPL use or stop it altogether.Need home loan help? Get in touch 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 Consumers embrace pay-later options

Property prices may go up or down in the short-term, but history suggests they increase in the long-term.That’s the key takeaway from a CoreLogic analysis of property prices over the 30 years to July 2022.Australia's median property price increased 382% during that 30-year period.Houses outperformed units (453% v 307%) and metro locations outperformed regional locations (409% v 294%).Crucially, property prices didn’t grow so strongly because there were never any downturns; they grew strongly despite regular downturns along the way. “Over that 30-year period, we have seen six distinct cycles of growth and an equal number of cycles of decline (including the current downswing) across the national index,” according to CoreLogic.“Each of the upswings and downturns have been characterised by different environments and catalysts of change such as taxation policy, monetary policy decisions, economic shocks, fiscal stimulus and broader economic conditions.”While past performance is no guarantee of future performance, history suggests that homeowners who purchase quality properties and hold them for the long-term enjoy significant capital growth.Contact me 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 Property prices increased 382% over the past 30 years

There are still a lot of active buyers in the property market, judging by the latest home loans data from the Australian Bureau of Statistics.Borrowers signed up for $28.4 billion of new home loans in July. That was 11.3% lower than the previous year but 47.3% higher than the average over the previous 15 years.So while conditions are much more buyer-friendly than they were during the recent property boom, there’s still quite a bit of buyer competition, especially for quality homes. Meanwhile, refinancing activity is close to record-high levels.Borrowers refinanced $17.9 billion of home loans through new lenders in July – which was not only 7.6% higher than the year before but also the second-biggest refinancing month in history.With interest rates rising, many people realise how important it is to be on a lower-rate loan, so they’re shopping around.I’ve helped many people refinance, and I can help you too. Get in touch so we can discuss your options.Reach out if you want to refinance.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 Home loan activity falls but remains well above long-term average

Selecting the best mortgage plan can be really draining.For starters, it is not going to be easy to search through all the various pamphlets and schemes to select the one that best suits you.Secondly, every potential borrower wants to know the interest rate, the risks involved, and many more facts before finalizing one.All this can be pretty hard for anyone looking for a mortgage loan. Now imagine how hard it would be for the first time home buyers.They have absolutely no idea about the various schemes in the market or how to select the best one that is suited to their needs.So, here is a list of some mortgage loans for first home buyers Conventional mortgageA conventional mortgage means a mortgage that is not backed by a government agency. So who funds these conventional mortgages? The conventional mortgages are usually funded by private lenders like banks or credit unions. Conventional mortgages have higher interest rates than the  government backed mortgages, such as the Federal housing loans.Jumbo mortgagesJumbo mortgages are, in simple words, nonconforming conventional loans. That is, jumbo mortgages are the apt option for you if you are looking to buy a large house. In fact, Jumbo mortgages are usually sought by people who want to buy a luxurious house in an expensive area.Government-insured mortgagesThese are unique qualification procedures to obtain the government insured mortgages. These loans are aimed at low to mid income buyers. This is because of the flexible qualification required for the mortgage and the down payment criteria.Federal housing loansThese loans are guaranteed by the federal housing administration. Federal housing loans are only be used for primary residences. If anyone has had some credit issues in the past, then a Federal housing loan will be ideal.Do you live in Sydney? Are you looking for the best mortgage loans? If yes, you have to look no more. We at Freshwater Financial Services can help you select the best mortgage loan. All that you have to do is contact us here.Need a construction loan? I can help. Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review 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 4 best mortgage loans for first time home buyers