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Large numbers of borrowers will soon be coming to the end of their fixed-rate period, with Commonwealth Bank alone revealing that $44 billion of fixed loans will expire this year, according to Canstar.Some media reports have suggested that borrowers in that situation should be worried, because their new variable interest rate is likely to be higher than their current fixed rate. However, there are four reasons not to panic:When you took out your home loan, the lender wouldn’t have approved your application unless it believed you could still repay your loan if interest rates increasedWhile no one likes paying higher interest rates, they'll continue to be low by historical standards even if they rise by 2 percentage points over the next couple of yearsIf you budget for higher interest rates now, you'll be prepared when they do increaseWhen your fixed-rate period comes to an end, you can ask your broker to refinance you to another lender offering a comparable loan with a lower interest rateContact me for home loan adviceContact me for home loan advice.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 reasons to stay calm if your fixed mortgage is about to expire

Buyers are steadily shifting their attention from houses to units.In April, median prices rose 10.4% in annual terms for units and 18.6% for houses, according to CoreLogic – a difference of 8.2 percentage points. While that gap is large, it's not as large as it was in January, when prices rose 14.3% for units and 24.8% for houses – a difference of 10.5 percentage points.By the end of April, Australia's median house price had reached $819,000. For some buyers, that is just too high. By contrast, the median unit price, while still high, is just $620,000.As property prices continue to rise, it's likely more buyers will shift from houses to units, which would lead to a further narrowing in the price growth differential. It’s even possible that, at some point, unit price growth will overtake house price growth.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. 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 Houses vs Units – Price growth gap continues to narrow

The Reserve Bank recently increased official interest rates by 0.25 percentage points and has signalled more rate rises are on the way. But don’t panic. Instead, fight back.How? By refinancing to a comparable home loan with a lower interest rate.I work with a large panel of lenders, many of which are offering special deals to people who refinance, so there's a good chance I can help you switch to a lower-rate loan. That will help offset any future rate rises. When you refinance, you'll have to go through the same qualification process you experienced when you took out your current home loan.So look for ways to reduce your expenses and increase your savings rate.Consider lowering your credit card limit, as a higher limit will reduce your borrowing capacity, even if you pay off your entire credit card debt each month.Maintain or even increase your credit score by paying all your bills on time, and, possibly, closing out any personal or car loans you might have.Want to compare interest rates? 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. 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 Why now is a good time to think about refinancing

A mortgage broker is a person who wears several hats during the financial planning process, to the point where the best of them become trusted advisors to families. The difficulty that might occasionally develop is that lines can become blurred, and clients will seek financial advice from a broker. In this article, I'd like to discuss what kind of advice a mortgage broker may and cannot provide. Please keep in mind that this is a blog and not a piece of advice. Because everyone's circumstances are unique, it's better to get expert assistance if you need particular counsel. Depending on what you require, who that may be may vary. As a mortgage broker goes about his or her various responsibilities for a customer, he or she becomes further entangled with your family's finances and situations. Clients will begin to feel at ease with the broker and will frequently inquire about investment or tax advice, as well as business formations and the like. While the finest mortgage brokers in Sydney will have a decent notion of what works well based on their experience with previous clients, they are not permitted to provide advice on the subject and should never do so. It is illegal and can lead to a conflict of interest. Mortgage brokers can help you structure your debt in a way that meets your current requirements. They can also provide guidance on the loan procedure and which products or lenders are most likely to be successful. One of the most valuable abilities that mortgage brokers bring to the table is the ability to advise on ways to save money and interest along the process. A mortgage broker cannot advise you on how to invest your money or manage your household income in order to achieve financial success. We are unable to provide advice on superannuation or insurance. A financial planner's knowledge would be required for all of this. A mortgage broker is unable to advise you on any tax-related issues or how to effectively arrange your business or personal structure for tax efficiency. You should hire a trained accountant for this. Financial advisors can assist with financial planning: Financial planners use a long-term approach. They assist with the selection of investment and insurance choices. Special emphasis is frequently paid to retirement advice and estate preparation. Aside from that, there's investment analysis. Retirement and life insurance are also taken into consideration. Other types of asset protection insurance are also available. A financial adviser helps people with their investments, taxes, and retirement planning. Additionally, college savings accounts and real estate are available. Insurance and mortgages are also included. Mortgage brokers handle home loans: A mortgage broker is a broker who acts as a middleman between the borrower and the lender. He or she is in charge of bringing mortgage borrowers and lenders together. He or she connects borrowers with lenders. He or she ensures that the lender is the ideal match. This is … [Read more...] about Can Mortgage Brokers Give Financial Advice?

The big four banks have forecast that the Reserve Bank will begin lifting official interest rates from June. If and when that happens, lenders will almost certainly increase their home loan rates.That would be annoying if you're about to start looking for a property and you're planning to get a fixed-rate loan, because it's possible fixed rates will rise between when you get your pre-approval and when you formally apply for your home loan.In that case, you'd have to accept the higher interest rate – unless you’d taken out a 'rate lock', which is when a bank promises to give you the lower initial interest rate, in return for a fee.Rate locks, like all insurance policies, are priced so that the provider (i.e. the bank) finishes ahead. So, for the average borrower, the cost of the rate lock is likely to be higher than the savings it provides. But a rate lock can still be valuable by providing peace of mind.I can model different interest rate scenarios for you, to help you decide if a rate lock is suitable for you.Contact me for expert loan advice. 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 A rate lock can protect you from forecast rate rises

Most mortgage holders will be able to cope if and when interest rates start rising.That’s one of the findings from the Reserve Bank of Australia’s (RBA) latest half-yearly Financial Stability Review.Between February 2020 and February 2022, many borrowers built up big repayment buffers, by paying extra money into their offset and redraw accounts. During those two years, the median buffer for owner-occupiers with a variable-rate loan increased from about 10 months of repayments to about 21 months.“The increase in payment buffers partly reflects the impact of lower interest rates on minimum repayments,” according to the RBA.“If interest rates were to increase by 200 basis points (i.e. 2 percentage points), current excess payments would be equivalent to just under 19 months of scheduled payments.”In further good news, the share of loans in negative equity (i.e. where the loan exceeds the value of the property) has also significantly improved during the two-year period, falling from 2.25% to less than 0.25%.Want to compare interest rates? 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. 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 Median repayment buffers double from 10 to 21 months

National residential construction costs increased 9.0% over the 12 months to March 2022, according to CoreLogic’s Cordell Construction Cost Index.That was the highest annual growth rate on record apart from the introduction of the GST in 2001, and means Australians are having to pay more money to build or buy new homes.It's hard to know whether the growth in construction costs is trending up or down: costs rose 2.4% in the first quarter of 2022, which was significantly higher than the previous quarter (1.1%) but lower than the quarter before that (3.8%).“Timber costs continue to rise, with cladding, decking and other timber items affected,” according to CoreLogic construction cost estimation manager John Bennett.“Steep rises in metal prices are also now flowing through to the market, with structural steel, fixings and metal components hit hard.“We continued to see volatility in the rest of the market, with imported products the most vulnerable due to elevated shipping costs. Rising fuel costs are also on the radar and we have continued to see further increases in the cost of other materials."I can help you get a construction loanI can help you get a construction 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. 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 Supply chain issues trigger sharp rise in homebuilding costs

The federal government has expanded its support to first home buyers and single parents and has also released a new program for regional buyers.The First Home Loan Deposit Scheme and New Home Guarantee, which currently support a combined 20,000 first home buyers per financial year, will now support 35,000 per year from July 1. The price caps for these programs, which differ from area to area, will also be increased, by anywhere from $50,000 to $250,000. Under these programs, eligible first home buyers can purchase properties with just a 5% deposit, without needing to pay lender's mortgage insurance.The Family Home Guarantee, which currently supports 10,000 single parents over four years, will now support 5,000 per year from July 1. Under this program, single parents can buy properties with just a 2% deposit.The new Regional Home Guarantee will help 10,000 people per financial year (starting October 1) to buy a property in a regional area with just a 5% deposit. This program is open to first home buyers, people who have not owned a home for at least five years and permanent residents.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. 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 More buyers now eligible for federal housing incentives