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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?

Buying your first ever home can give you a mixed feeling, sometimes it can feel exciting and others it can give butterflies in the stomach, after all, it's surely a whacking task as well as one of the most noteworthy undertakings you'll make in your life. Searching for the ideal adobe can be perplexing especially for the first-time buyer. Your mind will likely be racing with all sorts of questions like - where should I start from? What can be the best suburbs? What should be my price range? How do I know if I have offered the right price? and many more. And that's where you need a buyer's agent to figure out all the answers to your questions. That's not it! He will help with many more things during the whole process like searching for the right property and starting due diligence when you do find your perfect home.There are plenty of more reasons you should turn to a buyer's agent while starting your house hunting journey. In this blog, I will give such more reasons why you should walk along with a buyer's agent in your first home shopping voyage. Get Access to the latest information One of the biggest perks of a buyer's agent is you get access to all the latest & accurate news. They stay updated with the reports like when a new home hits the market, where a house for sale, etc. So, a buyer agent has access to Multiple Listing Service through which they get you set up with the account so that you can also access all the information at your fingertips as they do. They exemplify you and your best interests At the onset of the process, they will ask you several questions associating with your needs and preferences to make a rough sketch of your ideal home or what it should look like. They use this information to search for appropriate properties. As soon as they will find the perfect match they will have your best interest in mind while submitting a bid. They're like a shadow of you walking together on the whole journey. However, talking about the laws, while you'll start working with them you'll have to sign a form which outlines the relationship between you two and the responsibilities they are abided by such as loyalty to the buyer, maintaining confidential information, and encouraging the buyer's preferences. Valuation and Finance For the first home buyer, all the process can be less daunting if they have a buyer's agent by their side. And among all the aspects one of the most difficult things is valuing property if you're an amateur. However, that's where a buyer's agent helps you by tackling the most crucial evaluating and financing part and gets you a fair deal. Also, nothing can beat turning to a professional to help you get the deal at fair value or even less if you got lucky. You can certainly believe it's one of their superpowers to be able to evaluate the right purchase price for the home.The road of difficulty continues till financing and surely it can be a nightmare. Although you may have your loan … [Read more...] about Why a First Home Buyer Should Use a Buyer’s Agent

Rents have surged over the past year, with houses outperforming units, according to SQM Research.Over the year to 20 May, average weekly rents jumped by 15.7% for houses throughout Australia and 7% for units. Houses also outperformed units in every capital city. Meanwhile, thanks to record-low interest rates, conditions favour buyers over renters.It’s cheaper to buy than rent 59.1% of three-bedroom houses and 83.8% of two-bedroom units throughout Australia, according to REA Insights.This analysis is based on the assumption buyers have a 20% deposit and property prices will grow by 3% per year over the next decade.Want to enter the market? I can help.Hit the button below to arrange a conversation with us 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 Conditions favour buyers as rents grow strongly

Electricity prices have fallen almost 9% since the middle of last year, resulting in large potential savings for households in eastern and southern states.That's the finding of Australia's competition and consumer watchdog, the ACCC.Retail electricity offers now available to households in NSW, Victoria, south-east Queensland, South Australia and the ACT are, on average, 8.8% lower than in June 2020, which equates to an average annual household saving of $126.Wholesale electricity costs have fallen due to an increase in renewable generation and a decrease in fuel costs.The ACCC is encouraging households to shop around and switch to cheaper plans.That said, electricity retailers are required to pass on cuts in wholesale power costs, as per laws that were introduced in June 2020.Consumers in NSW, south-east Queensland, South Australia, Tasmania and the ACT can use Energy Made Easy to compare offers. Victorian consumers can use Victorian Energy Compare.Need a home 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 Households could save $126/yr thanks to falling power prices