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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

New data from the Australian Bureau of Statistics has revealed the winners and losers from the widespread lockdowns that occurred in July and August.Accommodation & food services was the industry that suffered the biggest fall, with the industry experiencing a 16.6% month-on-month decline in turnover in July and then another 6.5% decline in August.Construction (-2.9% and -0.1%) and other services (-2.2% and -5.5%) were the only other industries to experience turnover declines in both July and August. Conversely, the mining sector increased its turnover by 4.6% in July and 0.1% in August.Manufacturing (1.2% and 0.9%) and wholesale trade (0.6% and 1.0%) also expanded in both months.Need a 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 Cafes and gyms feel pain, but mining and manufacturing spared

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