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There has been a massive increase in home loan borrowing over the past year, according to the latest data from the Australian Bureau of Statistics. Australians took out $22.5 billion of mortgages in September – a 25.5% jump on the year before. That included increases of:33.8% for owner-occupiers4.2% for investors There was also a massive increase in first home buyer activity among owner-occupiers.First home buyers took out 13,569 loans in September. That was not only up 45.5% on the year before, but was also the highest figure in 11 years.The surge in borrowing comes as no surprise – interest rates are at record-low levels. And with governments around Australia providing assistance for first home buyers, it’s no surprise to see so many younger buyers entering the market.Want to get into the market?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 Record-low interest rates drive a surge in home loan activity

The federal government has doubled the number of openings for its popular First Home Loan Deposit Scheme.When the scheme started in January, only 10,000 eligible first home buyers were able to participate each financial year. That has been increased to 20,000 for this financial year.Under the scheme, the government acts as a guarantor for eligible first home buyers, allowing them to:Take out a mortgage with just a 5% depositSkip the usual requirement to pay lender’s mortgage insurance (LMI)The scheme includes 27 participating lenders who are now accepting applications.To be eligible, you must earn no more than $125,000 for singles and $200,000 for couples.Also, you must purchase a home under the price cap, which ranges from $250,000 in regional South Australia to $700,000 in Sydney.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 More first home buyers get mortgage help

It will soon become easier to qualify for a mortgage, under reforms proposed by the federal government.Lenders will no longer have to comply with strict 'responsible lending obligations' when issuing mortgages, although they will still have to follow certain lending standards.Under the current ‘lender beware’ system, lenders can be held accountable when borrowers default on their mortgages – which has made nervous lenders less willing to give out loans.But under the proposed ‘borrower beware’ system, borrowers will become more accountable for their loan applications – which should encourage lenders to assess applications faster and say yes more often.The government feels the current system forces lenders to use one-size-fits-all criteria when assessing loan applications; it wants to move to a system that allows lenders to take a more flexible, commonsense approach.This change is expected to particularly benefit first home buyers and self-employed borrowers, who can struggle to qualify for loans under the current rigid system.The reforms will take effect on 1 March 2021, if approved by parliament.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 Good news for buyers as ScoMo changes home loan rules

Australians are showing more confidence in the property market, new auction figures have revealed.There were 14,216 auctions held in the capital cities during the September quarter, according to CoreLogic. That was up from 13,783 in the June quarter.The clearance rate (the percentage of properties put up for auction that actually sold) also rose, from 47.9% in the June quarter to 59.2% in the September quarter. The clearance rate statistics from the different markets were:Canberra = 78.8% from 746 auctionsTasmania = 64.3% from 14 auctionsSydney = 63.1% from 8,147 auctionsAdelaide = 62.2% from 734 auctionsMelbourne = 51.0% from 3,320 auctionsBrisbane = 44.5% from 1,057 auctionsPerth = 28.6% from 198 auctions Why did the auction statistics improve in the September quarter? It probably reflects growing consumer confidence, with Australia increasingly getting on top of the coronavirus problem.Planning to buy?I can help you get 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 Buyers give vote of confidence to the property market

Staying loyal to your bank could cost you thousands of dollars, according to the new Reserve Bank of Australia data.At the end of August, there was a gap of 0.29 percentage points between existing variable owner-occupier mortgages and new ones. Existing owner-occupiers were being charged an average of 3.21%, while new borrowers were being charged 2.92%.There are two ways you can avoid paying this 'loyalty tax':Negotiate a rate cut with your existing lenderRefinance to a new lender with a lower-rate loan If you do refinance, make sure the loan you're switching to doesn't revert to a higher interest rate at a later date.Banks compete hard for new customers, but sometimes take existing borrowers for granted, so the longer you stay with one lender, the more likely it is your loan is uncompetitive.If you’ve got a steady income and you’ve built up equity in your home, you could potentially refinance to a loan with a lower interest rate and lower fees.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 Loyal borrowers charged extra on their mortgage

Borrowers who paused their mortgages for six months when the coronavirus crisis started are facing a moment of truth.Those deferrals are scheduled to end soon – and, when they do, borrowers may be expected to resume paying off their mortgage.If you’re still in difficulty, your lender will speak to you about your options.This may include offering you another four-month extension. Alternatively, your lender might suggest ways to reduce your monthly repayments, such as:Extending your loan termShifting to interest-only payments “Customers who will be unable to pay their loan over the longer term will be offered tailored assistance that addresses their needs,” according to the Australian Banking Association.More than 900,000 loans have been deferred since we entered lockdown six months ago, with hundreds of thousands of assessments due in the coming weeks:80,000 mortgages and 65,000 business loans by the end of September180,000 mortgages and 40,000 business loans by the end of OctoberNeeding 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 Banks are about to start un-pausing mortgages

Australia has a very comfortable level of mortgage debt, according to new data from the Australian Bureau of Statistics and Australia’s banking regulator, APRA.The total value of Australia’s housing was $7.14 trillion at the end of June, while the total value of outstanding loans secured by residential property in Australia was $2.01 trillion.That means the nation’s collective loan-to-valuation ratio (LVR) was 29.4%. As you can see in the chart above, the vast majority of outstanding home loans are below 81% LVR. The breakdown is:Under 60% LVR = 32% of outstanding mortgages60% LVR to under 80% LVR = 47% of outstanding mortgages80% LVR to under 90% LVR = 16% of outstanding mortgages90% LVR to under 95% LVR = 4% of outstanding mortgages95% LVR and above = 1% of outstanding mortgage If you apply for a home loan with a deposit of at least 20%, you can save a substantial amount of money:You won’t have to pay lender’s mortgage insurance (LMI)You can access lower interest rates and more competitive offers Lenders are competing hard for low-LVR customers – get in touch to see if we can get a few competing for your business.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. Help me get into the market 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 Most homeowners well-placed to pay off their loan

Australians have paid off enormous amounts of credit card debt since we entered lockdown, according to new statistics from the Reserve Bank.Between March and July, the most recent month for which there is data, Australian consumers reduced their credit card debt from $41.3 billion to $34.7 billion – a drop of 16%.This is the lowest amount since 2006. Consumers not only paid off old credit card debt between March and July but also cut back of new spending:Value of transactions = down 6%Number of transactions = down 17% At the same time, as the graph shows, the amount of interest being accrued on all credit cards (both personal and business) fell from $28.2 billion to $22.5 billion, a drop of 20%.It seems Australians have responded to the economic crisis by cutting back on non-essential spending.If you're thinking of taking out a home loan and you've been eliminating your credit card debt – smart move. Your borrowing power can significantly improve if you have less credit card debt and a lower credit card limitNeeding 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 National credit card debt falls to 14-year low