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The total value of residential dwellings in Australia has surpassed $8 trillion for the first time, according to new data from the Australian Bureau of Statistics. During the March quarter, the total value of Australia's 10.6 million homes rose by $449.9 billion – the biggest jump on record.At the same time, national property prices rose 5.4% – the fastest rate of growth since the December 2009 quarter. The breakdown by capital city was:Sydney = 6.1%Hobart = 6.1%Canberra = 5.6%Perth = 5.2%Melbourne = 5.1%Darwin = 4.7%Brisbane = 4.0%Adelaide = 4.0%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 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 Red-hot property market sets new record

Reserve Bank governor Philip Lowe has reminded banks they need to continue rigorously assessing home loan applications.“It is important that lending standards remain sound in an environment of low interest rates and rising housing prices,” he said in a recent speech.“The RBA does not, and should not, target housing prices. We do, though, have a strong interest in trends in household borrowing, especially given the already high level of household debt in Australia.”What, exactly, are 'high lending standards'? Well, it can differ from lender to lender, but it's based on three core factors:Employment status and incomeSavings and credit historyExisting loans and equityWhere it gets tricky is that different lenders assess those factors differently, and so reach different conclusions on who they lend to. As a mortgage broker, I can give you expert advice on which lender would best suit your personal circumstances.Need trusted 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. Call me 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 RBA urges banks to keep lending standards high

Buying a home is perhaps one of the biggest financial decisions a person makes in their life. I would say it's the biggest and beautiful decision which will age with you, and see the ups and down together with you. Now when it dwells ready to become a part of your life how can you make the experience you regret. So of course you want to be sure the decisions you're making are the right one.Now when you've found your right home at the right price, then the next thing that awaits is the right source of borrowing money. There are so many options out there that can be tempting for ease to opt for a mortgage with one out of them.Now with the changing time gone are days when Australians were only reliant on the banks rather it has turned out to be mortgage brokers in Sydney are the new guide and financial aid who are rescuing you from the luring deal while steering you through the process and hitching on the best deal for you. But the good news is they don't just help you find the perfect mortgage but also save you time, money as well as are legally obliged to put your interest first. They're always on your side As we all possibly know, always a mortgage broker in Sydney is obliged to serve you. So the time you join your hands with a mortgage broker, they will do things to benefit you. They don't work for the lender, they work for you and to profit you, they can give access to far more products than the bank or if you went direct. They give you unbiased advice and an array of options from their lending panel to choose the one which suits you the most and best. They abide by the law A Sydney mortgage broker is abide by the law 'Best Interest Duty' obligation. According to Best Interest Duty, a broker will work for you, not the lender. So, even though a particular product may add a commission to the broker, they won't recommend it until it lies in your true interest. They understand your financial need A mortgage broker in Sydney works to provide the best out of their knowledge and only a mortgage with the lowest interest rate is best is not necessarily true. That's why the best mortgage broker will always first analyse your financials to understand your financial needs, circumstances and goals.They ask you several questions and go through your credit scores, and use this information to filter out the most suitable options from their lending pane. You may save some extra bucks Several different types of fee can be involved in taking a new mortgage loan or say while working with a new lender, which includes an origination fee, application fee, appraisal fees. Working with a mortgage broker in Sydney may be able to get lenders to waive some or all of the fees, which can eventually save hundreds to thousands of bucks. You're protected While in the process your mortgage broker has a duty of care to you. Thus out of their duty, they must recommend a suitable mortgage and must be able to justify the reasons for selecting that particular loan. Why he thinks the … [Read more...] about When you visit a Mortgage Broker, your interests are better protected

Borrowers who stick with the same lender year after year are probably being slugged with a ‘loyalty tax’, according to new data from CoreLogic. Owner-occupiers who took out new variable loans in April were charged an average interest rate of 2.77% p.a. However, owner-occupiers with existing variable mortgages were charged an average of 3.10% p.a. – forcing them to pay a loyalty tax of 0.33 percentage points.Investors had to pay an even larger loyalty tax, with variable loans priced at 3.06% for new borrowers and 3.44% for existing borrowers – a gap of 0.38 percentage points.For a $500,000 mortgage, those interest rate differentials can add up to a lot of money over the life of the loan:You pay $31,887 less interest over 30 years with a rate of 2.77% p.a. rather than 3.10% p.a.You pay $37,539 less interest over 30 years with a rate of 3.06% p.a rather than 3.44% p.a.Paying too much? 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 chat 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 Loyal borrowers pay higher interest rates

With more Australians now working from home, taxpayers have been warned not to “copy and paste” expense claims from previous years that would no longer apply.The Australian Taxation Office (ATO) said it would look closely at anyone who claims significant working-from-home expenses, while also maintaining or increasing their claims for things like car, travel or clothing expenses.“You can’t simply copy and paste previous years’ claims without evidence,” assistant commissioner Tim Loh said.“But we know some of these unusual claims may be legitimate. So, if you explain your claim with evidence, you have nothing to fear.”Mr Loh said the ATO expects working-from-home claims to increase, as the number of home-based workers has jumped since the pandemic.“But, if you are working at home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips.”Mr Loh said the ATO’s data analytics team would be on the lookout for unusually high claims.“Particularly where someone’s deductions are much higher than others with a similar job and income,” he added.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 situation. ATO's Warns on 'Copy/Pasting' Claims 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 ATO warns taxpayers about dubious expense claims

The total value of Australian residential real estate has now passed the $8 trillion mark, reaching $8.1 trillion at the end of April, according to CoreLogic. CoreLogic head of research Eliza Owen said that puts the value of residential property at:4 times the size of Australia’s GDP$1 trillion more than the combined value of Australia’s stock market, superannuation savings and commercial real estate stockThis valuation landmark is an important reminder that whether you want to refinance an existing loan or buy a new home, it’s vital to know the value of the property.If your loan-to-value ratio (LVR) is less than 80%, your mortgage broker will have a better chance of getting you a lower interest rate. Also, you won’t have to pay lender’s mortgage insurance (LMI).Existing homeowners can borrow against the equity in their home, and use it to fund the deposit on an investment property.Want to refinance?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 now worth four times the size of Australia’s GDP

The federal government, in its recent budget, announced three measures to make it easier for Australians to enter the market.First, the government introduced the Family Home Guarantee, which is aimed at single parents with dependents. The government will guarantee 10,000 loans over the next four years, so eligible single parents can buy a property with a deposit of just 2%. The Family Home Guarantee is open to both first home buyers and previous owner-occupiers.Second, the government has expanded the First Home Loan Deposit Scheme (New Homes), providing an additional 10,000 places in 2021-22. Eligible first home buyers who want to build or buy a new home will be able to do so with just a 5% deposit.Third, the government made it easier for people to save for their first home, by increasing the amount of voluntary contributions that can be released under the First Home Super Saver Scheme, from $30,000 to $50,000.Want to learn more?Hit the button below to arrange a conversation with one of my loan specialists to find out the information you're looking for. Book a chat 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 promotes homeownership in latest budget

A home buying process may surely feel like a roller coaster ride. The whole process gives a similar feeling of excitement and fear, the excitement of finally touching your dream and fear of missing out on something and making any expensive mistake. Between fishing and finalising your home, there's a lot more in terms of process and paperwork which can evoke  feelings of headaches. The whole journey involves several steps and with each elevating step, the difficulty and anxiety may increase, specifically if you're a first home buyer. This is why we recommend not to go the road alone on this journey. Now the question is, who can be your best companion? In our opinion, it should be someone who can guide you throughout the process, possess intellectual, factual knowledge and can solve your queries; you can certainly find all these qualities in a mortgage broker. So why don't consider their assistance? Once you've zeroed down your budget and ruminate your wallet you'll probably get an idea of how much mortgage you'll require. But the process of getting a mortgage like walking on an eggshell. After finding the mortgage loan which meets your needs, the endless battle with paperwork begins. Yes! The home loan application involves a lot of documentation because mortgage lenders have an obligation to lend responsibly. They need to ascertain that you can afford to pay back the loan amount based on your current financial situation. To ensure from their end they need to gather information about income and expenses. That's why you need to show the evidence with the right document.So here is a list of what your lender may ask you to provide. Identify proof  Be it any country this legal requirement is common & essential in all. Your lender requires your id proof to verify that you're who you claim to be. So, you must provide them with at least one primary identification proof of two secondary documents. Which can be any of the following:Primary documentAustralian driver's licenceCurrent passportPhoto IDs such as Australian tertiary institution ID card, Proof of Age, or Waterways/Boat LicenseSecondary documentsAustralian birth certificateMedicare CardCredit CardHealth Care Card Australian Citizenship certificate Ato assessment notice ( less than a year old)  Your Income details Your lender requires your current income details to evaluate if you qualify to pay back the mortgage or not and if you do then how much you can repay each month. So, may ask for:Salary Copy of your two recent payslipsBank account statements showing at least three months' salary creditsTax Return and ATO notice of Assessment ( less than 18months old) An employment contractIf you're Self-employed Personal and business tax returnsATO Notice of assessment Government incomeA bank account statement showing payment creditsA letter from Centrelink summarizing your payments Your financial circumstances Your lender will look at your overall financial circumstances while processing your mortgage … [Read more...] about What documents do you need for a home loan application?