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Australia's property market enjoyed extraordinary growth during 2021, but a city-by-city breakdown shows that different markets are at different stages of their cycle. Looking at a basket of all Australian homes, the median price increased 22.1% last year, according to CoreLogic. Looking just at the capital cities:Sydney’s monthly growth rate peaked at 3.7% in March and was 0.3% in DecemberMelbourne peaked at 2.4% in March and fell 0.1% in DecemberPerth peaked at 2.7% in February and rose 0.4% in DecemberHobart peaked at 3.3% in March and rose 1.0% in DecemberCanberra peaked at 2.8% in March and rose 0.9% in DecemberDarwin peaked at 2.7% in April and rose 0.6% in DecemberBrisbane (2.9% growth in December) and Adelaide (2.6% in December) are the exceptions to the rule, with both cities enjoying their strongest growth at the end of last year.So the data suggests that two of Australia’s capital cities are in strong growth mode, while the others are experiencing milder growth.Needing a 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. 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 Property prices growing at varying rates across the country

There's a house building boom going on right now, partly because of the now-concluded HomeBuilder incentive and partly because interest rates are so low.Building work started on a record 149,345 new detached houses in the year to September 2021, according to the latest data from the Australian Bureau of Statistics. If you’re planning to build a new home, please note that financing residential construction projects is more complicated than getting a standard home loan.Lenders require more paperwork – all the usual documents, plus a copy of your building contract, building plans and building specifications, as well as quotes for any additional work you might be planning.The way lenders pay out the loan is also more complicated: instead of giving the money in one lump sum, they distribute it in five ‘drawdowns’ as the build reaches key milestones.If you want to build a new home in 2022, give me a call – I can talk you through your optionsBuilding a house? 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 Hordes of Aussies building their dream home

With rents climbing steeply in many parts of the country, 2022 might be the ideal time for younger Australians to enter the market.The average rent paid by a tenant living in a capital city was 7.4% higher in the December quarter of 2021 than the same quarter of 2020, according to Domain. So if you’re a first home buyer, you might be wondering – what can you do to save a deposit? Options include:Increase your income – e.g. get a second job, do more shifts, start a side hustleReduce your expenses – e.g. move to a cheaper rental property, cut back on home delivery, buy less ‘stuff’Reduce your deposit – e.g. opt for a low-deposit loan, a family guarantee loan or a spot in the First Home Loan Deposit SchemeDon’t worry if any of this sounds confusing – I can explain your options to you in plain English. When you’re ready to talk, I’ll be happy to guide you through the process.Call me if you're a first home buyer. 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 How to escape the increasingly expensive rental market

Home loan activity is at historically high levels, according to the latest data from the Australian Bureau of Statistics.Australians committed to $31.4 billion of home loans in November, which was 6.3% higher than the previous month and 33.2% higher than the previous year.Owner-occupier borrowing was up 7.6% on the month and 17.2% on the year, while investor borrowing was up 3.8% on the month and 86.9% on the year. Want to enter the market this year? Here are three home loan tips:Maximise your credit score – pay all your bills on time and reduce your credit card limitGet started early – it can take several weeks to get a home loan pre-approvalSpeak to a broker – brokers can compare loans and access special deals on your behalfWant 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 Home loan activity strong amidst buoyant property market

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. Governments impose stamp duties, also known as stamp taxes, on documents that are needed to legally record certain types of transactions.It is one of the most unpopular taxes in Australia, which could soon be scrapped in NSW if government plans get the green light. But what will it be replaced by? And would first home buyers in Sydney be better or worse off under the proposed new model?An Outdated TaxCurrently, stamp duty is one of the biggest upfront costs of buying property in Australia. The stamp duty calculator in NSW calculates that amount you pay based on the property’s market value under a sliding scale. Its rates vary from state to state, and whether you’re an owner-occupier, first home buyer in Sydney or an investor.In NSW, owner-occupiers face an average bill of $34,000 which is payable within three months of settlement. First-home buyers in Sydney are exempt or receive concessions on the tax if they buy an established property costing less than $800,000 or a newly built home valued at under $1 million.Critics, including the NSW treasurer, have slammed the tax as “outdated” and a “relic from a bygone era”. That’s because the rate brackets of the stamp duty calculator in NSW, haven’t been updated since 1985 when the median house price in Sydney was around $73,000.It’s now just under $1 million.The New Replacement TaxThe NSW government wants to replace stamp duty with, what the Treasurer dubbed, the “Netflix of property tax.” Under their proposals, you will be given a choice between paying stamp duty or a smaller, annual property tax based on land value. First home buyers in Sydney would get a grant of up to $25,000 instead of an exemption. There will be no double taxation. So, you won’t have to pay the annual tax if you’re an existing homeowner that’s not planning on moving.Pros and Cons of the Annual TaxThe government is consulting on their proposal with the details examined with utmost consideration. However, if this gets the go-ahead, the new model comes with both advantages and disadvantages.On the plus side, without the financial burden of stamp duty, more first-home buyers could get on the property ladder with the help of mortgage brokers in Sydney. Older people will be more likely to downsize.However, more buying and selling throughout the market could cause a short-term uplift in property prices. As a result, you may end up paying more for a new home. That could leave you worse off under the annual tax, as you’ll likely pay more in the long run. Before getting into the buying process, consult with your mortgage broker in Sydney.Looking for the best mortgage brokers in Sydney? Connect with us today and schedule a no-obligation consultation with our best mortgage brokers in Sydney to find out how we can help you with your home loan.Looking for a loan? Get in touch. Hit the button below to arrange a conversation with one of my … [Read more...] about Will The Proposed NSW Stamp Duty Impact You?

In the September quarter, mortgage brokers originated a record 66.9% of all new residential home loans, according to research group Comparator.This compares to market share of 60.1% the year before.Why is broker market share growing so strongly?One reason is value. When you go directly to a bank, you will only get told about that bank’s products. But when you go to a mortgage broker, the broker will compare loans from a wide variety of lenders.Another reason is ethics. Brokers have to follow the Best Interests Duty, which legally obliges them to work in their clients’ best interests. Banks, though, are not bound by the Best Interests Duty.Broker market share is likely to keep increasing, due to the rollout of open banking, a system that makes it easy for consumers to share their data with third parties. Brokers will be able to use open banking to help clients shop around and find more suitable loans.Looking for a loan? 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. 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 Australians turning to mortgage brokers in record numbers

Over the year to October, the size of the average Australian home loan increased 16.4%, according to the latest data from the Australian Bureau of Statistics.Loan sizes also increased in every individual state and territory, as the graph shows. Naturally, the amount of money you borrow is very important. But so is the share of money you borrow compared to the value of the property you purchase.This is known as your loan-to-value ratio (LVR). For example, if you borrowed $800,000 to buy a $1 million property, your LVR would be 80%.The lower your LVR, the more likely lenders will offer you lower interest rates and special deals. Conversely, if your LVR is above 80%, you will probably have to pay lender’s mortgage insurance (LMI), an insurance policy to protect the lender in case the borrower defaults.If you’re planning to buy in 2022, it’s important you think about:What your LVR is likely to beWhether you can aim for a lower LVR to access lower interest ratesWhether you’re willing to pay LMI to enter the market earlyThe key is to be prepared and to crunch the numbers. I can help you with both tasks.Need mortgage advice? 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 Australians taking out bigger loans in response to rising property prices

An extra 4,651 first home buyers will be able to access federal government assistance during the 2021-22 financial year.The government had originally pledged to support 20,000 first home buyers this year – 10,000 under the First Home Loan Deposit Scheme and 10,000 under the New Home Guarantee.Now, the government has added an extra 4,651 places, which went unused during the 2020-21 financial year.The First Home Loan Deposit Scheme lets eligible first home buyers purchase a home with just a 5% deposit, without having to pay lender’s mortgage insurance.The New Home Guarantee is almost identical, except it applies to new builds, off-the-plan properties and house-and-land packages.The government hasn’t stipulated where the extra 4,651 places will be allocated, but it seems likely they will be spread over both programs, based on demand.Looking to buy your first home? 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 Government boosts first home buyer support