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How To Pick A Mortgage For First Home Buyers Buying your first property is an exciting time. Every first home buyer in Sydney dreams of a home where they can dwell in peace and, moving from a rented house to owning one is one of the greatest leaps anyone makes in their life. The prospect of painting the walls, hanging pictures, and creating your sanctuary away from the world is exhilarating. If you’re looking to become a homeowner, you’ll likely be considering a mortgage to help you finance the purchase. Many mortgage brokers in Sydney can help you find the perfect mortgage for your home. Here are some tips that you should consider to pick your mortgage:1. EligibilityBefore you get too excited about becoming a first home buyer in Sydney, check if you qualify for a home loan. Contact several lenders to get an idea of how much money you can borrow based on your current debts and financial position.This will give you a realistic understanding of what, and where, you can buy. It may be worthwhile consolidating your credit cards to one new low-rate credit card so you can lower your limits and improve your overall financial position. You can hire mortgage brokers in Sydney to help you find the best mortgage options for your home loan.2. Finance OptionsIt is a good idea, if you’re a first home buyer in Sydney, to compare different home loans to make sure you're getting the right rate and features. There are many options from variable to fixed-rate loans, to interest-only and investment loans, and there are many different types of mortgages to suit different situations.3. Sydney Mortgage BrokersFrom house-hunting to shifting, the whole process can be tiresome and complex. And finding the perfect loan rate is not an easy task. You may have banked with the same institution over years but that doesn’t necessarily mean they will give you the best deal for your home. That’s where mortgage brokers in Sydney come in. Sydney mortgage brokers work on your behalf, shortlist the best deals to get you the optimum result at no cost to you. But, you need to hire a trusted mortgage broker in Sydney. 4. Sort Out Your DebtsIf you already have some personal debts, you might find it harder to get a home loan approved, or you may not be able to borrow quite as much as you wanted. Focus on paying off any large and/or unsecured debts you may have before you apply for a home loan, especially high-interest debts. Earlier we suggested consolidating your credit cards; if you have several personal loans or car finance, you might want to consider combining those debts into one as well.Your mortgage broker in Sydney can help you clear your debts by emphasizing important financial areas.If you’re a first home buyer in Sydney looking for mortgage plans, connect with us and book a free appointment with the best Sydney mortgage brokers.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your … [Read more...] about How To Pick A Mortgage For First Home Buyers

The use of buy-now-pay-later services has surged in recent years, more than doubling between 2018 and 2021, according to Roy Morgan. Meanwhile, credit cards are also used by a lot of Australians.While both buy-now-pay-later services (BNPL) and credit cards have pros and cons, you might not realise that using them can affect your mortgage borrowing power.If you regularly use BNPL, lenders might think you’re struggling to manage your finances, and wonder how much they could safely afford to loan you.If you have a credit card, lenders will assume you’re going to spend up to your limit each month. So if your limit is $10,000, lenders will assume you’ll ‘borrow’ $10,000 each month. That will make it look like you have more debt, and therefore reduce how much money banks are willing to loan you.And if you miss BNPL or credit card repayments, lenders will be even more concerned.If you want to maximise your borrowing power you should:Reduce or eliminate your use of BNPL servicesLower your credit card limit or cancel your cardMake all your repayments on timeWant 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 Shopping on a pay later scheme can affect your home loan chances

First Home Super Saver Scheme Housing affordability is an ongoing concern for many families, and a hotly debated topic both socially and politically. First-home buyers in Sydney are faced with the very real challenge of saving a home deposit in a low-interest rate and low real-wage growth environment. To assist the group, the federal government of Australia introduced the First Home Super Saver Scheme (FHSS).The First Home Super Saver Scheme (FHSSS) helps Australians boost their savings for a first home by allowing them to build a deposit inside superannuation, giving them a tax cut. The FHSSS applies to voluntary superannuation contributions made from 1 July 2017. These contributions, along with deemed earnings, can be withdrawn for a home deposit from 1 July 2018. In simple terms, the scheme allows super members to save for a first home deposit via their superannuation account, as well as (or instead of) their bank account, which typically yields lower returns. It is a government scheme made to assist first home buyers in Sydney with speeding up the time it takes to save and buy your first home.Advantages of this schemeThe First Home Super Saver Scheme makes it easier for you to save your deposit by making before-tax contributions to your superannuation. It can automate saving for your deposit by portioning a part of your income to be put into your super account before tax. Here are some of the benefits that a first home buyer in Sydney can make use of: Any earnings that you make on contributions to the First Home Super Saver Scheme are taxed to 15% in your superannuation fund, this can assist with speeding up your savings because the tax rate is likely less than your marginal tax rate.You get favorable tax treatment on eligible funds that are withdrawn (and any earnings associated) from your super.Putting your savings on autopilot, and having them in the FHSSS makes them genuine savings in the eyes of the banks.If you do not use the funds to buy a home you can keep them in your super fund and help build for the future.Who is eligible?If you are a first home buyer in Sydney and clears the following criteria, then you are eligible: You need to be 18 years or older to participate in the Scheme.You did not own property in Australia before.You have not previously had an amount released from super under the Scheme.You need to either live or intend to live in the property you are buying as soon as practicable and, for at least 6 months of the first 12 months, you own it.How to withdraw from super under this scheme?When you’re ready to purchase a home, you will need to request the ATO to advise you on how much you have available to withdraw. You can then submit an application to them asking for the funds to be released from your super. Note that your maximum release amount will be the total of your eligible contributions, taking into account the yearly and total limits, and associated earnings (your concessional contributions and associated … [Read more...] about First Home Super Saver Scheme

House rents have climbed strongly in many parts of Australia, while some unit markets have also enjoyed strong growth, according to Domain.Over the year to September, capital city house rents increased by an average of 5.5% and six capital cities experienced double-digit growth. During the same period, capital city unit rents decreased by an average of 2.1% – although rents actually increased in six capitals. The reason rents are rising in many parts of Australia is due to an undersupply of rental properties; this has led to increased tenant demand for the limited amount of accommodation.In Perth, Adelaide, Hobart, Canberra and Darwin, the vacancy rate (the share of untenanted rental properties) is under 1.0%, according to SQM Research, which is incredibly low. In Brisbane, the vacancy rate is 1.4%, which is also low.But in Sydney and Melbourne, where rental growth is weaker, vacancy rates are above 2.5%.This is a good time to be a property investor, with rents rising, prices rising and vacancy rates falling in many parts of the country. Conditions are favouring landlords and those looking to enter the market.Want to enter the market? 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 investors enjoying strong rental growth

Australia’s banking regulator, APRA, has introduced new lending rules that will reduce the maximum amount some people can borrow. When you apply for a mortgage, lenders are required to assess your ability to repay the loan not on the actual interest rate, but on the interest rate plus a buffer. Previously, the buffer was a minimum of 2.50 percentage points; now, APRA has told lenders to increase it to 3.00 percentage points. So if you applied for a loan with an interest rate of 2.09%, lenders would have to assess whether you could repay the loan if the rate increased to at least 5.09%. APRA expects this change will reduce the average person’s borrowing capacity by about 5%. However, each person’s situation is unique. Some borrowers may not experience any reduction in their borrowing capacity. Others might experience a larger impact. In this new home loan environment, it's never been more important to get help from an expert broker who's fully across the new rules. As your broker, I can:Maximise your borrowing capacity so you can buy your dream home Show you how your borrowing capacity can change from lender to lender Compare dozens of lenders and hundreds of loans for you See how much you can borrow now.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 Regulator targets people’s borrowing capacity

First Home Owner Grant: Are You Eligible? Are you a first home buyer in Sydney? There are various schemes introduced by the government to help you purchase your home. One such first home buyer assistance scheme is First Home Owner Grant (FHOG). The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on homeownership. It is a national scheme funded by the states and territories and administered under their legislation.Under the scheme, a one-off grant is payable to first homeowners that satisfy all the eligibility criteria. It provides financial assistance to eligible first home buyers in Sydney for their first new or substantially renovated home. Eligibility CriteriaRegardless of your state of residence, there are a few qualifying ground rules to be aware of with this first home buyer assistance scheme. The most common include:You must be an individual, not a company or trust.You must be over 18.You, or at least one person you’re buying with, must be an Australian citizen or permanent resident.You, or one of the other first-time homebuyers who purchase with you, must move into the new home within 12 months of buying it and live there for at least six continuous months.If you’re buying land and building a new home, you must move in within 12 months of construction being completed.You will not be eligible for the FHOG if you or your spouse have:Previously owned or co-owned a home in Australia; orPreviously received an Australian first homeowner grant.Before you apply for a first homeowner grant, it is better to take care of the following things:Confirm the current eligibility criteria for the first homeowner grant in your particular area, check your state revenue office website, or visit the government’s guide. Stamp Duty Calculator Under the First Home Buyer Assistance Scheme, savings on stamp duty are available to first homeowners no matter whether you buy a new or established home.From 1 August 2020, the NSW government has announced that stamp duty will not apply to first home buyers for new properties valued up to $800,000 and vacant land valued up to $400,000. Additionally, a concessional rate of duty will apply to homes valued at more than $800,000 but less than $1,000,000 and vacant blocks of land valued at more than $400,000 and less than $500,000. This stamp duty exemption will be in place for 12 months to 31 July 2021.From 1 August 2021, the stamp duty calculator will work on exemptions that will revert to $650,000 for homes and $350,000 for land. You can still be entitled to savings on stamp duty even if you pay between $650,000 and $800,000 for your first home. The cost of duty rises on a sliding scale. For example, if you pay $700,000, according to your stamp duty calculator, you’ll pay $10,402.33 – a saving of $16,304.67. If your first home costs $795,000, the cost will be $30,166.77, providing a saving of $815.23.Hiring a skilled mortgage broker will be invaluable if you are a … [Read more...] about First Home Owner Grant: Are You Eligible?

With brokers now legally required to act in the best interests of borrowers – something banks aren’t required to do – borrowers have been turning to brokers in increasing numbers.Mortgage brokers settled 59% of all new home loans in the June quarter – a record market share for brokers in the June quarter.That compares to a market share of 57% in the June 2020 quarter.Last year, ASIC, the financial services regulator, introduced the best interests duty, which obliges brokers (but not banks) to act in their clients’ best interest when providing home loan advice.The Mortgage & Finance Association of Australia said the increasing popularity of brokers reflects “the ever increasing trust and confidence consumers have in their broker and the unrivalled best interests duty a mortgage broker provides”.When you visit a lender, you will be told only about that lender’s products. But when you visit a mortgage broker, you will be able to compare home loans from a range of institutions.Chat to us today.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 59% of borrowers choose brokers over banks

Have you been squirreling away money during the latest round of lockdowns? If so – join the club.Australian households have been saving an average of 9.7% of their income, according to the most recent data. However, the Reserve Bank has forecast that the saving rate will increase to about 15% by the end of September. Part of the reason people have been saving more is because they’ve been stuck at home, which has meant they’ve had fewer opportunities to spend money in shops.The Housing Industry Association recently reported that house new house sales are performing strongly – partly "due to increased household savings during the pandemic".Chat to us today. 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 doing less shopping, more saving