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Australians purchased 5.3% more new homes in February than the month before, according to the Housing Industry Association (HIA).However, HIA chief economist Tim Reardon said this increase was off a “very low” base. Based on the number of new homes being approved for construction and purchased, he forecast there would be a decade-low amount of homebuilding activity in 2024, despite the pent-up demand for housing. Nevertheless, banks are still keen to lend to Australians who want to build a new home or renovate an existing one. To finance your project, you’ll need a construction loan (rather than a regular home loan). Here’s how construction loans work:To apply for a loan, you need to provide the lender with your building contract, building plans and council approvals You receive the money in stages (usually five) throughout the project, rather than one lump sum at the start You pay interest only on the portion of the loan you’ve received, not the entire amount Construction loans typically have terms of 12-24 months; they may then revert to a standard home loanGet in touch if you 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. Chat to us 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 home purchases rise 5.3%

Learn How to Get a Home Loan with Help from Expert Mortgage Brokers in 2024 The process of getting a home loan can be frustrating and overwhelming especially if you are a first home buyer. This is where a mortgage broker can step in to provide valuable assistance and guidance. A mortgage broker can help make the situation less stressful than it needs to be. In this article, we will talk about the role of a mortgage broker, the benefits they offer, and how they can help you find the right home loan tailored to your specific needs. What is a Mortgage Broker and How Can They Help? A mortgage broker is a financial intermediary who helps individuals secure home loans from lenders. They act as a middleman between borrowers and lenders, offering expert advice and guidance throughout the loan application process.One of the key advantages of using a mortgage broker is the access to a wide range of loan options from various lenders. Brokers can compare different loan products on your behalf, helping you find the best deal with competitive interest rates and favourable terms.Mortgage brokers have in-depth knowledge of the home loan market and can assist you in finding a loan that aligns with your financial goals and preferences. Whether you are looking for a fixed-rate loan or a variable-rate option, a broker can help you navigate the complexities of the loan process. Why Should I Use a Mortgage Broker? Using a mortgage broker can save you time and effort in researching and comparing home loans. Brokers have access to a wide network of lenders and can provide tailored recommendations based on your individual circumstances.Mortgage brokers are industry experts who stay abreast of the latest market trends and lending regulations. They can offer valuable insights and recommend loan options that are best suited to your needs, ensuring you make informed decisions.Mortgage brokers have the resources to compare thousands of home loan products from different lenders. This extensive comparison allows you to select the loan that offers the most competitive interest rates, favourable terms, and flexibility in repayment options. What is a Fixed Rate Home Loan? A Fixed Rate Home Loan is a type of home loan where the interest rate remains the same for a set period, typically between one to five years. This means that your repayments will also remain unchanged during this fixed rate period, providing certainty and stability in your budgeting. However, it is important to note that once the fixed rate period ends, your loan will revert to a variable rate which is subject to change based on market conditions.It is essential to take into account potential break costs if you decide to refinance or pay off your loan early during the fixed rate period. To navigate through the complexities of choosing the right loan for your situation, you can seek loan advice from a mortgage broker near you, … [Read more...] about How Can a Mortgage Broker Solve Your Home Loan Needs?

Get the Best Mortgage Broker in Sydney for Your Home Loan Finding the best mortgage broker in Sydney for your home loan is crucial for a smooth and successful borrowing experience. A skilled broker can guide you through the complex home loan process, helping you navigate the intricacies of securing a mortgage. By choosing the right broker, you can benefit from their expertise in the industry, access to multiple lenders, and personalised service tailored to your specific needs. This ensures that you not only find the most suitable loan for your situation but also secure favourable terms and rates that align with your financial goals. Understanding Home Loans and Mortgage Options When looking to buy a home in the competitive Sydney property market by 2024, it's important to have a team of expert brokers who specialise in mortgage broking and can personalise the process for you. Mortgage brokers in Australia can help you navigate through the application process and find the best home loan that suits your needs. They can also assist with investment loans for investment properties and advise on different lenders and loan products to secure the best rates and terms.If you're a first home buyer and need a mortgage, reaching out to a Sydney mortgage broker can help you find the best deal in the mortgage market. They can also provide guidance on lenders mortgage insurance and help you understand your home loan options. Finance brokers who specialise in mortgage brokerage can tailor solutions to fit your financial goals and help you make informed decisions when looking to buy your first home. Different Types of Home Loans Available When it comes to home loans, there are various types available to suit different needs and financial situations. One common type is the fixed-rate mortgage, where the interest rate remains the same throughout the loan term, providing stability in monthly payments. On the other hand, adjustable-rate mortgages have interest rates that can change periodically, potentially leading to fluctuations in monthly payments based on market conditions. Another option is the FHA loan, which is backed by the Federal Housing Administration and often requires a lower down payment, making it accessible to first-time homebuyers and those with less-than-perfect credit. For those looking to buy a home in rural areas, a USDA loan may be a suitable choice, offering low-interest rates and zero down payment options for eligible borrowers. VA loans, guaranteed by the Department of Veterans Affairs, are designed for veterans, active-duty service members, and eligible spouses, providing favourable terms and no down payment requirements. Jumbo loans are another type of home loan available for high-priced properties that exceed conventional loan limits, offering financing for luxury homes and properties in expensive markets. Understanding the different types of home loans can … [Read more...] about Get the Best Mortgage Broker in Sydney for Your Home Loan

First home buyers are able to enter the market a little faster than a year ago, new research has found.At a national level in February, it took 4 years 9 months for a first home buyer to save a 20% deposit on an entry-level house, compared to 4 years 11 months the year before. For an entry-level unit, the time to save a deposit was 3 years 5 months – one month faster than the year before. Domain classified an entry-level property as one ranked at the 25th price percentile (with the 1st percentile being the cheapest home and the 100th being the dearest). Domain's calculations assumed that first home buyers were a couple aged between 25-34, earning an average salary for someone their age.The reason that first home buyers are now able to save a deposit more quickly is not because property prices have fallen over the past year – because they've actually increased. Rather, it's because earnings power (through a combination of higher wages and higher savings account interest rates) has grown faster than property prices.Want to buy your first home? 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. Chat to us 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 Deposit hurdle gets slightly lower for first home buyers

Know the differences between a finance broker and a mortgage broker When it comes to securing financial assistance, choosing between a finance broker and a mortgage broker can be a crucial decision. Understanding the disparities between the two is essential for selecting the most suitable professional to meet your specific needs. What is the difference between a finance broker and a mortgage broker? Finance brokers and mortgage brokers play distinct roles in the lending process. A finance broker specialises in assisting clients with various financial products such as business loans, car loans, and personal finance solutions. They help you find a finance solution that best suits your needs. On the other hand, mortgage brokers focus primarily on home loans, working closely with lenders to secure the best deal in terms of interest rates and repayment options.A finance broker acts as a mediator between individuals or companies seeking financial assistance and a range of lenders. They are licensed professionals who provide guidance on loan applications, helping clients navigate through the complexities of obtaining financial aid tailored to their requirements.Conversely, a mortgage broker specialises in home loans and assists clients, including first home buyers, in finding the most suitable mortgage plan. They act as advisers throughout the loan application process, ensuring that the terms of the loan, including interest rates and repayment schedules, are favourable to the borrower. When to use a finance broker versus a mortgage broker Deciding between a finance broker and a mortgage broker depends on the type of financial assistance you require. If you are seeking a home loan specifically, using a mortgage broker may be more beneficial. However, for various financial needs such as business finance or personal loans, a finance broker would be the more appropriate choice.A mortgage broker specialises in helping individuals secure home loans and mortgages from different lenders, while a finance broker can help with a wider range of financial products such as car loans, personal loans, business loans, and equipment financing. Additionally, finance brokers may have access to a larger network of lenders and financial institutions, giving you more options to choose from.When deciding between the two, consider your specific financial goals and needs, as well as the expertise and experience of the broker in that particular area. It may be beneficial to consult with both a finance broker and a mortgage broker to determine which one can best assist you in achieving your financial objectives. Ultimately, working with a professional broker can help simplify the process, save you time and potentially save you money by finding the best financial solution for your situation. How can a broker help me secure a home loan? Both finance brokers and mortgage brokers can assist in … [Read more...] about Finance Broker vs Mortgage Broker | Know the Differences

Commercial Mortgage Broker: Get the Best Commercial Loan Broker for Commercial Property Loans Utilising an expert commercial mortgage broker for commercial property loans can make a significant difference in your real estate financing journey. These professionals specialise in connecting borrowers with lenders, guiding them through the complexities of securing loans for commercial properties. Choosing the right broker is crucial for successful financing, as they bring valuable expertise and experience to help you navigate the intricate processes involved in commercial real estate loans. Working with a knowledgeable broker can streamline the loan process, provide access to a wider range of loan options, and ultimately lead to more favourable terms and rates for your commercial property investment. What is the Role of a Commercial Mortgage Broker? A commercial mortgage broker plays a crucial role in facilitating commercial property loans for businesses. These professionals act as intermediaries between borrowers and lenders, helping to secure financing for commercial properties. They specialise in commercial finance and have extensive knowledge of the loan options available in the market.A commercial mortgage broker can assist business owners in finding the right loan options tailored to their specific needs. They have access to a network of lenders and can negotiate competitive interest rates on behalf of their clients. Why Use a Commercial Mortgage Broker for Property Financing? When it comes to property financing, using a commercial mortgage broker can offer numerous advantages. These professionals specialise in connecting borrowers with lenders, simplifying the loan process, and securing favourable terms for commercial properties. One key benefit of working with a broker is their expertise in navigating the complexities of commercial real estate financing, which can be daunting for individuals without industry knowledge. Brokers have access to a wide network of lenders, allowing them to find the best loan options tailored to your specific needs and financial situation. Moreover, commercial mortgage brokers can save you time and effort by handling the legwork involved in researching and negotiating loan terms. They can help you understand the various loan products available, compare rates from different lenders, and guide you through the application process. By leveraging their expertise, you can make informed decisions and avoid potential pitfalls in securing property financing. Additionally, brokers can provide valuable insights into market trends, helping you make strategic decisions that align with your investment goals and financial objectives.Another compelling reason to use a commercial mortgage broker is their ability to advocate on your behalf and negotiate favourable terms with lenders. Brokers have the skills and experience to present your loan … [Read more...] about Expert Commercial Mortgage Broker for Commercial Property Loans

New research by the e61 Institute and PropTrack has revealed there's been a significant increase in relative stamp duty costs in recent decades.Back in the early 1980s, buyers in Sydney, Melbourne, Brisbane and Adelaide needed to do about one month's work to cover the cost of stamp duty, assuming they purchased a median-priced property and earned the average post-tax income. But as of 2023, it takes about six months’ work in Sydney and Melbourne, five in Adelaide and four in Brisbane.Last year, almost all buyers faced a stamp duty rate equivalent to at least 3% of the sale price, while, in the early 1990s, almost all buyers paid less than this amount. PropTrack senior economist Angus Moore said the two reasons stamp duty had become relatively more expensive were because property prices had grown faster than incomes and state governments had allowed ‘bracket creep’ to occur with stamp duty tax brackets.“Bracket creep happens, firstly, because the price brackets have been updated only infrequently and, secondly, because home prices have grown, often substantially, since the brackets were last set,” he said.“That means more properties have moved up the brackets and are now paying higher rates of stamp duty.” Need a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us 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 Stamp duty costs rising due to ‘bracket creep’

The latest tranche of home loans data from the banking regulator, APRA, has revealed three interesting shifts in the mortgage market over the past year. First, there's been a meaningful rise in investor activity during that time. During the December 2022 quarter, 30.2% of new loans were for investment purposes; but in the December 2023 quarter, the share increased to 32.4%. There's been a corresponding decline in owner-occupier activity, which fell from 67.7% to 65.6%. Second, there's been a sharp decline in borrowing with a debt-to-income of 6 or greater (e.g. someone on a $100,000 salary borrowing $600,000 or more). This fell from a 11.0% share of new loans in December 2022 to only 5.6% in December 2023.Finally, the share of borrowing with a loan-to-value ratio of 80% or higher has actually increased, from 30.6% of new loans in December 2022 to 31.4% in December 2023.Whether you’re an owner-occupier or investor, I can advise you about your borrowing power and help you get a great home loan.Need a home loan? Let's chat.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us 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 Investor activity rises, high-debt borrowing falls