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Great news for anyone planning to take out a home loan – new legislation means consumers are even better protected when they use a mortgage broker.The Best Interests Duty, which took effect on 1 January 2021, legally obliges brokers to act in the best interests of their clients. This new law is on top of the National Consumer Credit Protection Act, which already regulates the conduct of brokers.Brokers must “prioritise their consumers’ interests” if there’s ever a conflict of interests, according to the legislation.But while brokers have to follow the Best Interests Duty – banks do not. A broker must give their client the best possible recommendation from all the lenders on that broker’s panel. However, a bank will recommend only its own products, even if there are better alternatives.Brokers act in your best interests when recommending a home loan, and have a legal obligation to do so. Banks sell you products.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. Get advice 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 New law gives consumers another reason to use brokers

How to compare home loans and features How to compare home loans and features The home loan you choose can have a substantial impact on the future of your life, whether you are a first home buyer in Sydney or making your first move into the housing market, buying an investment property, or renovating your home.There is no such thing as a one-size fits all home loan because everyone's home loan needs are unique. The best home loan with right features is easier to get if you know what you're looking for, so it's important to first understand how you'd like to structure the loan. Finding the best home loan rate comes down to comparing loans. There are a lot of mortgage options available on the market, so it’s a good idea to compare home loans and find the one that’s right for you. You may have different ideas about what you consider a good home loan than others, and your opinion may change with time.A good home loan generally includes :Competitive interest rate (makes it easier to repay the loan a lot sooner)Low establishment costs and feesFeatures that apply to your needs and genuinely meaningful for youWe’ve  put together a list of questions to ask yourself before you compare home loans in order to help you find a home loan that suits your needs.Would you like a variable, fixed, or split interest?It’s crucial to compare different home loan interest rate types in order to customize a loan to suit your needs.Fixed interest - Home loans that offer fixed-rate terms provide a degree of security if you want to budget ahead or work with a strict budget.Variable interest - The interest rate of a variable home loan varies based on market interest rates and lender price policies, which may suit those who can be flexible with their repayments.Split interest - Split interest means that a part of your mortgage loan is secured by a fixed rate, while another part is secured by a variable rate. This makes borrowing more secure and takes advantage of interest rate cuts. Calculate your repayments under different variable and fixed rates and variable rates using this handy Split Loan Calculator.Which features will you actually need? While a loan that comes with lots of extra features sounds great, it is generally true that the more features come with the loan, the higher the costs involved with it. You may opt for a no-frills loan, however, if you choose one that offers more (such as a redraw facility) you want to ensure you are using what you pay for.What will the fees be? In addition to application fees, valuation fees, lender’s mortgage insurance, monthly fees and annual fees, you may also have to pay break costs if you want out of the mortgage.What is the comparison rate? A comparison rate indicates the true cost of a home loan, based on the fees, charges and interest rate. This implies each rate has equal priority when comparing with other loans.Are you planning to stay or move?If you plan to move, build or renovate, checkout the following … [Read more...] about How to compare home loans and features

Australia’s consumer watchdog has urged people to watch out for online shopping scams this holiday season, with scam losses rising sharply in 2020.Losses to online shopping scams have increased 42% this year, with almost $7 million in reported losses, according to the Australian Competition & Consumer Commission (ACCC).Losses on classified websites, such as Facebook Marketplace and Gumtree, have increased 60% this year, to $4.5 million.ACCC deputy chair Delia Rickard said scammers create realistic-looking fake websites that offer products at very low prices; victims then receive either a fake item or nothing at all.Another trick scammers play is to post fake ads on classified websites, often claiming they are travelling and someone else will deliver the goods – but the item never arrives.Ms Rickard advised consumers to beware of:Popular products being sold at suspiciously low pricesSellers who request payment through direct bank transfer or cryptocurrencyFake Australia Post parcel delivery notifications that ask you to click links and input sensitive information (something Australia Post never does)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 Beware of online shopping scams

Median price growth for the month of November ranged from 0.4% in Sydney to 1.9% in Darwin and Canberra.Over the year to November, prices grew in all capitals except Melbourne.Canberra’s median price ($672,866) is now higher than Melbourne’s ($672,172), making Canberra the second-most expensive capital city property market, behind Sydney. Peter Koulizos, chairman of the Property Investment Professionals of Australia (PIPA), said the latest statistics were in stark contrast to the alarmist forecasts at the start of COVID.“Big banks and some property commentators were predicting property price falls of anywhere from 10-30%,” he said.“At the same time, PIPA produced research to show that house prices had increased by as much as 100% in the five years after the most recent recessions.Do you 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 Real estate values keep rising, despite pandemic

Good news for existing home owners and people planning to enter the market – the government has extended the HomeBuilder scheme.HomeBuilder provides financial support to owner-occupiers who want to build a new home, substantially renovate an existing home or buy an off-the-plan property. Under the original version of the scheme, participants in the HomeBuilder scheme receive a $25,000 grant if they sign a building contract before 31 December 2020.Under the new version, participants will receive $15,000 if they sign a contract between 1 January and 31 March 2021.As before, construction must start within six months of the contract being signed.The price cap for renovations has been kept at $1.5 million (pre-renovation). However, the price cap for new builds, which is currently set at $750,000 for all states, will be increased to $850,000 for Victoria and $950,000 for New South Wales.To participate in HomeBuilder, you must be an Australian citizen and earn less than $125,000 for singles and $200,000 for couples.Need a construction 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 Government extends HomeBuilder by 3 months

It’s been a mixed picture for property investors this year, with houses outperforming units and smaller capitals outperforming larger cities.Across Australia, median house rents increased 3.2% in the year to November, while median unit rents fell 3.1%, according to CoreLogic.Perth, Darwin, Canberra and Adelaide were the only capitals that experienced increases in both house and unit rents, while Hobart was the only capital that went backwards in both categories. Many commentators are forecasting property prices to grow in 2021, so next year might be a good time to buy an investment property.If you want to enter the market, here are five ways to increase your borrowing capacity:Pay off debtsCut back on discretionary spendingLower the limit on your credit cardReduce or eliminate your use of buy-now-pay-later servicesLook for ways to increase your incomeNeeding mortgage 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 Rents surge in Perth, Darwin, Canberra and Adelaide

You know how real estate is Australia’s national sport? Well, here’s some data that proves it.Australia has overtaken America as the country building the biggest houses in the world, according to a report from CommSec. In the most recent annual results, the average size of newly-built homes was 235.8 square metres in Australia and 233.1sqm in the US.ACT residents built the biggest houses in the 2019-20 financial year, while Tasmanians built the smallest:Australians are building bigger houses today than in previous decades. New houses are 6% bigger than 20 years ago and 27% bigger than 30 years ago, according to the report.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 Australia snatches property crown from the U.S.

In just a few seconds, you can find out some data about first home buyers in your suburb.Click this link, type in a postcode and you’ll discover the average profile of first home buyers who participated in the First Home Loan Deposit Scheme during the first six months of 2020.Looking at the national data, for 6,814 borrowers, the average profile was:Age = 25-29Household income = $91,000Purchase price = $400,000Loan-to-value ratio = 95%Debt-to-income ratio = 4.3 Normally, when someone buys a property with a deposit of less than 20%, they have to pay lender’s mortgage insurance (LMI), which can cost thousands of dollars. But under the First Home Loan Deposit Scheme, the government acts as a guarantor, which allows eligible borrowers to put down a deposit of just 5% and avoid LMI.The First Home Loan Deposit scheme is open to only 20,000 first home buyers this financial year, with at least half the spots reserved for people who are building or buying new homes.Want to buy your first home?Get in touch and 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 Wondering how much first home buyers near you are paying