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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

Some interesting new data sheds interesting light on the eternal debate over whether to have a variable or fixed home loan.Reserve Bank of Australia data for August shows owner-occupiers on three-year fixed loans were paying, on average, 1.26 percentage points less than those on the discounted variable rate.However, as the graph shows, these things move in cycles. The gap between fixed and variable rates might start closing, with the Reserve Bank signalling it will start increasing official interest rates once the economy strengthens. If you're wondering whether to go fixed or variable, here are three things to consider:Does your variable rate have features a fixed loan might not have?Do you want the repayment certainty that comes from a fixed loan?Have you considered a split loan, which is part variable and part fixed?Want to compare rates? 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 Fixed vs variable rate comparison reveals big difference

Almost 598,000 residential properties were sold in the year to August, which is the highest number of annual sales since 2004, according to CoreLogic.The August result was 42% higher than the year before and 24% higher than the 20-year average. Six states and territories recorded sales volumes above their 20-year average:QLD = up 28.9% on the 20-year averageWA = up 28.6%NSW = up 25.3%ACT = up 24.8%SA = up 23.4%VIC = up 20.5%TAS = down 3.3%NT = down 12.0%As the statistics show, buyers are competing hard for properties right now. So if you’re in the market, it’s vital you get your finances in order. That way, if you see a property you like, you can beat the competition.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 Buyers snapping up properties in red-hot market

Why Our Stamp Duty Calculator is the Best Solution For Property Owners In Sydney? Stamp duty is a mandatory tax that the state and territory governments levy on a home buyer, whenever they purchase a property. It is the amount of tax you will have to pay on any property purchase. The amount will depend on a number of factors, including where you live and if you are a first home buyer in Sydney. When purchasing a home or investment property, there are a number of costs that can take buyers by surprise, especially if you’re a first home buyer in Sydney and you are just becoming familiar with how the entire buying process works.Whilst there are a few costs that can be factored into your home loan, there are others that are required to be paid upfront, and by a certain deadline – and this includes the stamp duty for the residential property you have purchased. It is important to note that the amount of it payable is subject to a few varying calculations, and the total cost is influenced by which state and even the territory you are purchasing in, the property’s value or purchase price, and if it will be your primary place of residence or as an investment. For instance, the stamp duty calculator in NSW indicates that it should be paid within three months of the settlement of the property.How do you calculate stamp duty?The fees vary depending on the state or territory you are purchasing in. Each region has its own sliding scale, subject to its own calculations. Ultimately, it is determined by the dutiable value of your property, which is the price you paid for it, or its value on the market at the time of purchase.The lower the value of the property, the lower the bracket will be, and the less you will have to pay. To look at it another way, it is calculated by applying a sliding scale of taxation, with percentages increasing according to the value of the property. The general rule is that the cheaper the property, the less tax will be paid. Freshwater Financial Services’ stamp duty calculator in NSW is determined based on the dutiable value of the property, the place it is purchased in, and the property type. The data required, is sourced directly from the relevant state or territory office of state revenue, to ensure the most accurate figures. However, there are a number of other factors that can also determine the costs of it.In helping you secure a competitive home loan that suits your goals and financial position, a qualified and experienced mortgage broker can also assist in calculating how much you should expect to pay, according to the property you are purchasing and the place you choose to buy your home in. Knowing the amount earlier on can help you best budget for it, and it is always advantageous to have a professional guide you through the buying process, especially when you are a first home buyer in Sydney.Connect with us today and let us help with your stamp duty calculations, you can book a free appointment with our best … [Read more...] about Why Our Stamp Duty Calculator is the Best Solution For Property Owners In Sydney?

The Australian Taxation Office has reminded property investors to beware of common tax traps that can delay refunds or lead to an audit.The most common mistake investors make is failing to declare all their property income, including capital gains from selling an investment property, according to the ATO.Other common mistakes include claiming for interest charges on personal loan amounts and immediately claiming the full amount of capital works.“If you take out a loan to buy a rental property and rent it out at market rates, the interest on that loan is deductible. However, if you redraw money from that mortgage for personal use, such as buying a boat, or going on a holiday, you can’t claim the interest on that part of the loan,” according to the ATO.“We also see taxpayers claiming capital works as a lump sum rather than spreading the cost over a number of years. Capital works include a new building or an extension, renovations or structural improvements.”For more information, see the ATO's investors toolkit and its depreciation and capital allowances tool.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 ATO warns property investors about tax mistakes