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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

More property listings are coming onto the market, which should give buyers more choice in 2022.In November, another 96,346 properties were listed for sale, according to SQM Research. This was 2.3% higher than the month before and 20.4% higher than the year before.As the charts show, while there’s been a significant increase in new listings, there’s been a big decrease in old listings. That suggests many of these homes have finally found buyers. If buyers have more properties to choose from in 2022, it’s likely homes will take longer to sell.Properties listed on realestate.com.au during November took an average of 30 days to sell, which is incredibly low by historical standards. The year before, the figure was 44 days.In November, the amount of new listings added to realestate.com.au reached their “highest level in a decade" for capital cities and "highest level in five years" for regional locations.Need 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 More properties being listed for sale

You might not realise that lenders often charge lower interest rates to new borrowers compared to existing customers.Over the past year, as the graph from the Reserve Bank of Australia shows, this gap has widened. Back in October 2020, owner-occupiers who took out new variable loans were charged, on average, 0.32 percentage points less than existing borrowers. By October 2021, this gap had grown to 0.37 percentage points.If the RBA increases the cash rate next year, as many economists predict, it will be interesting to see if this gap widens or narrows as lenders bid to undercut their rivals and grab more market share.Want a better rate? 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 Long-term home loan customers paying ever-high ‘loyalty tax’

For the past year, the cash rate has been at a record-low 0.10%, with the Reserve Bank using ultra-low interest rates as a way to stimulate the economy during the pandemic.But what will happen if and when the Reserve Bank raises the cash rate? Will it lead to a downturn in the property market?The answer is no, according to research by the Property Investment Professionals of Australia (PIPA), an association that represents buyer's agents.PIPA analysis of five periods of increasing cash rate movements since 1994 found that property prices continued to rise – sometimes significantly – even after rate rises of up 2.75 percentage points. So if interest rate rises don’t lead to property downturns, what does?PIPA says downturns occur because of some combination of reduced access to credit, falling affordability, worsening local economic conditions and declining consumer sentiment.Need a 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. 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 Analysis finds property prices can go up even when rates are rising

Investor borrowing has increased for 11 consecutive months, according to the most recent data from the Australian Bureau of Statistics.During those 11 months, the value of loans that investors signed up for jumped from $5.1 billion in October 2020 to $9.6 billion in September 2021 – an increase of 87.5%.The September result was also the second-largest month for investors in history. Why are so many investors entering the market right now? Because, in many parts of the country, investors are enjoying a rare trifecta of rising prices, rising rents and falling vacancy rates.Meanwhile, total home loan borrowing has been trending down since May, after previously reaching record-high levels.Monthly home loan commitments fell from $32.6 billion in May to $30.3 billion in September, due to an ongoing decline in owner-occupier activity.Whether you're an investor or owner-occupier, it's important to know your numbers and put a plan in place well before you start searching for a property. Feel free to contact me if you want to discuss your options.Learn more about property investment 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 Strong investor activity defies wider home loan trend

The Ten Most Common Questions Asked By First Home Buyers A house can be one of the most personally and financially rewarding investments you’ll ever make. But if you’ve never bought a home before, the process may seem a little overwhelming. One of the best ways to ensure the process is not overwhelming for a Sydney first home buyer is to be well educated and properly prepared for the process.There are many questions that home buyers seem to ask quite often. To help you, here are 10 of the most frequently asked questions from a Sydney first home buyer:1. What’s the first step of buying a home?Unless you’re paying cash for your house, you will need a mortgage. To know how much you can afford, you need to get pre-approved for a plan. You must first talk to your mortgage broker in Sydney and get a mortgage pre-approval. 2. What do I need to qualify for a loan?Among other things, mortgage lenders will consider employment history, credit score, debt-to-income ratio, how much you plan to put down on your home, and stable employment history.3. What are the other costs other than the loan?The down payment and lending fees are extras that will have to be paid along the way. Most lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. 4. Should I get a fixed-rate or adjustable-rate mortgage?One of the most common questions to ask as a Sydney first home buyer is whether to get a fixed-rate or an adjustable-rate mortgage. Your mortgage broker in Sydney can help decide which one is best for you. 5. How much do I need for a down payment?Saving for the down payment is the greatest obstacle for first-time homebuyers. Lenders expect between 5% to 20% for a down payment. It varies according to the lender’s requirements, and the type and length of the loan. 6. What is the First Home Buyers Assistance Scheme? Under the First Home Buyer Assistance Scheme (FHBAS), a Sydney first home buyer may get a concessional rate of transfer duty or even an exemption from paying the duty altogether.7. Am I Eligible for the First Home Buyers Assistance Scheme? First Home Buyers Assistance Scheme is a type of financial assistance that is available for people who are looking to buy a new home, an existing home, or vacant land. Contact your mortgage broker in Sydney to learn more about this scheme. 8. What is PMI?PMI stands for Private Mortgage Insurance. Most lenders require that you pay for PMI if you put less than 20% down on a home, and PMI would protect the lender if you defaulted on your loan payments. If you’re unaware of this, contact your mortgage broker in Sydney and let them help you. 9. What is refinancing?Refinancing entails getting a new mortgage to replace an existing one, often to secure a lower interest rate, lower monthly payments, or get cash out. 10. How do I get the best Mortgage? Use a mortgage broker in Sydney to help you find the best mortgage. It is time-consuming to learn about the various rates … [Read more...] about The Ten Most Common Questions Asked By First Home Buyers

Refinancing is getting a lot of attention right now, as speculation builds about the Reserve Bank increasing the cash rate in 2023 or even 2022.Australian Bureau of Statistics data shows that refinancing activity is at near-record levels. In recent weeks, a host of lenders, including all of the big four banks, have increased their fixed rates, which might be causing some more borrowers to consider refinancing.Also, some people might be thinking about refinancing to take advantage of equity they've built up in their home during the ongoing property boom.So if you’re thinking about refinancing, you’re not alone. That said, you should refinance when it makes sense for your personal situation, not because other people are doing so or because the media is speculating about interest rate movements.Depending on your scenario, refinancing might allow you to:Reduce your interest rateSwitch your interest rate type (i.e. variable to fixed)Pull out equity to fund the deposit on an investment propertyConsolidate several higher-rate debts into a new lower-rate home loanGet a loan with better featuresWant to know if refinancing is right for you? I’ll be happy to talk you through the pros and cons.Is refinancing right for you? Let's find out. 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 Five reasons to think about refinancing your home loan

Australian's built 1.02 million homes between the 2016 and 2021 financial years – a big increase on the long-term average, which has typically involved about 750,000 dwelling completions during each five-year period.Over the past 12 months, 231,816 residential building approvals have been issued, suggesting lots of new homes are in the pipeline. That said, not everyone who gets an approval ultimately goes ahead with the project.Low interest rates and government incentives are two big reasons for the recent building boom. Construction loans are similar to regular home loans in some ways – interest rates are comparable and you can choose between variable and fixed. However, where they differ is in how the lender delivers the money to the borrower.With construction loans, the lender provides your loan in stages or 'drawdowns', as the different stages of your building contract are completed. The lender charges you interest only on the funds it has provided, not the full amount: so if your total loan is for $500,000 but you've received only $100,000 of drawdowns, you'll only be charged interest on the $100,000 not the full $500,000.Thinking of building? 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 Australia goes on a building spree