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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

COVID-19 has changed the housing preferences of many Australians, according to a new survey of nearly 1,100 property investors.The PIPA Property Investor Sentiment Survey found coronavirus has made 17% of respondents consider moving to another location. Of those who are thinking about moving, the most popular reasons were:Improved lifestyle = 78%I will be working from home in the future, so I can live anywhere = 46%Housing affordability = 40%I don’t want to live in a crowded city any more = 28%Money is not the most important thing to me any more = 16% So it’s no surprise more Australians are thinking about buying property in regional markets.The survey found 22% of respondents believe regional markets are the most appealing place to buy right now – compared to 15% in last year’s survey.If you’re considering moving to a regional area, I can help you calculate how to fund the move.Want to get out of the city?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 me out of the city! 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 Aussies eyeing up regional move

Five of Australia’s eight capital cities have turned in favour of landlords over the past year.Vacancy rates fell in Brisbane, Perth, Adelaide, Canberra and Darwin between July 2019 and July 2020, according to SQM Research.That means there were fewer investment properties on the market for tenants to choose from, which would’ve made it easier for landlords to find tenants and raise rents. However, vacancy rates rose in Sydney, Melbourne and Hobart during the same period, which would’ve made it harder for landlords to fill their properties and would’ve placed downwards pressure on rents.Hobart (0.70%) and Adelaide (0.90%) both had extremely low vacancy rates at the end of July, making them landlords’ markets.Sydney (3.60%) and Melbourne (3.10%), by contrast, are tenants’ markets right now.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 National vacancy rate falls from 2.3% to 2.1%

Australians are passionate about homeownership, with Millennials particularly keen about climbing onto the property ladder.More than one in four Australians (26%) plan to buy a property in the next two years, according to an ING survey of 2,113 people.The number is even higher for Millennials, with about one in three (32%) planning to buy a property within the next two years. There’s a feeling COVID has softened the property market and made homeownership more achievable – 46% of Millennials hold that view.The key reasons why Australians believe buying a home in the post-COVID market is more achievable are:Low interest rates = 39%A more affordable housing market = 33%New government schemes = 32%Also, 69% of people say the pandemic has forced them to take more control over their finances.The average price people want to spend on a home is $644,000 in NSW, $575,000 in Victoria, $504,000 in Queensland, $477,000 in Western Australia and $467,000 in South Australia.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 Millennials keen to enter post-COVID property market

The number of properties on the market has been increasing, but listings are still down on the year before, according to SQM Research.During July, there were 312,680 properties on the market across Australia – up 3.8% on the previous month but down 1.2% on the previous year. Between June and July, Darwin was the only capital city where property listings fell.Between July 2019 and July 2020, Sydney and Melbourne were the only capitals where listings increased. This reflects a weakening property market in Australia’s two biggest cities, according to SQM managing director Louis Christopher."Outside the two capital cities, the market is more balanced and, indeed, we are seeing an increase in demand for housing across regional Australia,” he said.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 homeowners putting their property up for sale

For the past five years, investors have been paying higher interest rates than owner-occupiers. Recently though, this gap has been narrowing.Today, investor borrowers could be paying up to 0.49 percentage points in interest more than owner-occupiers - well down on the reported gap of 0.60 percentage points from two years ago.Investor lending peaked in April 2015 – there were $10.1 billion of new investment loans (excluding refinancing) in that month, according to the Australian Bureau of Statistics.However, banks (under pressure from regulators) then made it harder for investors to get loans, through a combination of higher rates and stricter criteria.By June 2020, the most recent month for which there is data, the value of new investment loans had fallen to $4.4 billion.Fewer investors have been taking out mortgages, forcing banks to compete harder to maintain their lending volumes. One way they're doing that is through record-low rates for new borrowers. Another is by trying to poach existing borrowers from rival banks with special refinancing deals.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. Ask me about loan rates 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 showing the love to property investors

Australia’s banks will let some borrowers extend their repayment pause by another four months, subject to conditions.In March, banks announced borrowers could pause their repayments for up to six months, ending in September.Now, banks have said some borrowers can extend that period by four months, ending in January 2021 – but this extension "will not be automatic", according to the Australian Banking Association (ABA)If you’re able to resume making repayments after the six-month deferral, you’ll be expected to do so.If you can’t, your lender might talk to you about restructuring your loan, such as extending the loan term or switching to interest-only payments.If nothing has been agreed by the end of the six-month deferral, your lender might extend it by four months – but you will be expected to work with your lender during that grace period to find a long-term solution.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 Banks extend mortgage holiday but conditions apply

Confidence has returned to the property market in a big way, according to new forecasts from Domain.Domain has forecast house and unit prices to increase in both 2020 and 2021. These forecasts cover Australia as a whole and also the seven biggest capital cities (with Darwin being excluded). The $25,000 HomeBuilder grant has proved very popular, with new home sales jumping 77.6% from May to June, according to the Housing Industry Association.To be eligible for HomeBuilder, you must:Be an owner-occupierEarn less than $125,000 for singles and $200,000 for couplesBuild a new home or substantially renovate an existing homeSign the contract before 31 December 2020Start building within three months of the contract date(Other conditions apply. Click here for more details.)But beware of buying a property just to access the grant.The tight December 31 deadline means you might struggle to get a building contract signed with a reputable builder by the end of the year.Need a construction loan?Call me or 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 a construction loan 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 $25k home builder grant stimulates demand for new homes