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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

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