There's been a significant increase in first home buyer activity over the past year, based on the latest data from the Australian Bureau of Statistics.There were a total of 9,491 owner-occupier first home buyer mortgages issued across Australia in December 2023, which was 12.9% higher than the year before.First home buyer activity rose in six of the eight states and territories, with Queensland and Tasmania being the exceptions to the rule. While it can be challenging to buy your first home, this data shows it’s not impossible. Here are four tips to get on the property ladder:Look for ways to decrease your spendingCheck whether you're eligible for the First Home Guarantee or Regional First Home Buyer GuaranteeConsider asking your parents or another relative to guarantee your home loan (so you can drastically reduce or even eliminate your deposit requirement)Contact me, so I can explain your options and coach you through the processGet in touch if you need a home loanHit 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 First home buyer loans rise 12.9%
Should you buy now or wait for a potential rate cut?
Many economists believe the Reserve Bank will start cutting interest rates in the final quarter of 2024. So if you're thinking about entering the market, should you buy now or wait for those potential rate cuts to occur? To answer that question, it can be helpful to consult long-term data. During the decade to January 2024, Australia's median property rose 80.1%, according to PropTrack. Prices rose faster in the combined regions than the combined capital cities (92.5% vs 75.7%), while house growth exceeded unit growth (89.4% v 44.4%). But the general trend for all these categories was the same – up. Domain's chief of research & economics, Nicola Powell, believes buyers should take a longer-term view and not get too hung up about how the market is currently performing. “When you’re purchasing a property, it’s for a long-term investment and you are going to ride multiple property cycles, and that’s how you build financial wealth. So if I would give any advice, it would be to buy when it’s right for you. Housing markets are complex and often impossible to predict.”Ultimately, the question or whether to buy now depends on your personal situation and goals. For some, now will be the right time; for others, it will be better to wait. I'm happy to have a chat and crunch some numbers for you, so I can present personalised loan options for your situation.Get in touch if you need a home loanHit 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 Should you buy now or wait for a potential rate cut?
How to Refinance your Home Loan: A Step-by-Step Guide
How to Refinance your Home Loan: A Step-by-Step Guide Refinancing a home loan can be a smart financial move for homeowners looking to save money or consolidate debt. Understanding the process of refinancing, when to consider it, and the associated benefits is crucial for making informed decisions about your mortgage, and this article covers all of these. Let’s get to it. What is a home loan refinance? Refinancing a home loan involves replacing an existing mortgage with a new one. This new loan often comes with different terms, including a new interest rate, loan amount, or loan term. Home loan refinance allows homeowners to lower their interest rates, switch from a variable to a fixed rate loan, or access the equity in their homes. Understanding the concept of refinancing Refinancing essentially means paying off your existing home loan with a new one. It gives you the opportunity to adjust your loan terms to better suit your current financial situation. When should you consider refinancing your home loan? There are several scenarios when refinancing your home loan can be beneficial. For instance, if interest rates have dropped since you initially obtained your mortgage, refinancing can help you secure a lower interest rate, thus reducing your monthly payments and overall interest costs. Benefits of refinancing your home loan The main benefits of refinancing include potential savings on interest, the ability to switch home loans to a better interest rate or loan product, and the opportunity to consolidate debts under a single, manageable mortgage. Refinancing can also provide access to additional funds through loan top-ups. How does one refinance a home loan? Refinancing a home loan involves a series of steps and considerations. It's important to understand the process, gather the necessary documents, and be mindful of potential mistakes to avoid when navigating the refinancing journey. Steps to refinance your home loan The first step in the refinancing process is to thoroughly research and compare home loan options. Once you've found a suitable loan, you can apply for the new home loan and go through the approval process before finalising the refinance. Documents required for refinancing When refinancing, you'll typically need to provide documents such as identity proof, income statements, and property valuation reports. These documents are essential for us to assess your eligibility for the new loan. Common mistakes to avoid when refinancing Common errors when refinancing include failing to consider all associated fees and charges, not comparing interest rates and loan features, and neglecting to review the new loan terms carefully. It's crucial to be aware of these potential mistakes and take steps to avoid them Factors to consider when refinancing Several factors should be taken into account before refinancing your home loan. Comparing interest … [Read more...] about How to Refinance your Home Loan: A Step-by-Step Guide
How to budget better
Becoming a better budgeter can help you save more, invest more and get ahead on your home loan.To stay on top of your finances, there are two broad approaches you can take.The first is to plan how much you’ll spend on each category (groceries, entertainment, etc) each month. If you stick to your budget, you’ll know in advance how much you’ll save.The second approach is to throw out the budget and focus on saving instead:Decide how much money you want to save each monthSet up an auto-transfer to move this amount of money from a transaction account to a savings account whenever your salary gets paidSpend whatever is left in the transaction account, however and whenever you likeThe first approach suits people who want to pay close attention to their money, while the second is for people who want to ‘set and forget’ their savings.Whichever approach you take, a good place to begin is to review your last 12 months of expenses, to see how much you’re spending and on what things. You can use that information to identify areas of wastage and set savings targets. Talk to me about your borrowing powerHit 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 How to budget better
Refinancing your Home Loan and its Importance
Refinancing your Home Loan and its Importance Refinancing a home loan is a common financial practice that homeowners engage in to take advantage of favorable interest rates, reduce their monthly payments, or access the equity built in their home. This article will delve into the various aspects of refinancing a home loan, including its definition, process, benefits, downsides, and the right time to consider it. What is Refinancing? Definition of RefinancingRefinancing is the process of taking out a new loan to pay off an existing mortgage or current home loan. It involves replacing an old loan with a new one that has better terms and conditions, such as a lower interest rate, different loan term, or improved loan features.When to Consider RefinancingHomeowners should consider refinancing when they can secure a lower interest rate, reduce their monthly repayments, or improve their overall financial situation. Additionally, consolidating debt or accessing home equity are also common reasons to consider refinancing.Benefits of RefinancingRefinancing your home loan can lead to several benefits, including potential savings from a lower interest rate, the ability to consolidate debt, and the opportunity to access the equity in your home to fund other financial goals. How Does Refinancing Work for a Home Loan? Process of RefinancingThe process of refinancing involves applying for a new loan, going through the underwriting and approval process, paying off the existing mortgage with the new loan, and then making monthly repayments on the new loan according to the new terms.Factors to Consider When Mortgage RefinancingWhen considering refinancing, factors such as the impact on interest rates, repayment terms, and any associated costs and fees should be carefully considered to ensure that the new loan is beneficial in the long run.Impact on Interest RatesRefinancing can have a significant impact on interest rates, potentially leading to substantial savings over the life of the loan through a lower rate home loan. Why Should You Refinance Your Home Loan? Lowering Your Interest RateOne of the fundamental reasons to refinance a home loan is to secure a lower interest rate, which can result in considerable long-term savings on the total loan amount.Consolidating Debt Through RefinancingRefinancing also provides homeowners with the opportunity to consolidate various debts, such as credit card balances or personal loans, into a single, more manageable mortgage.Accessing Home EquityBy refinancing, homeowners can access the equity in their home to fund home improvements, educational expenses, or other planned investments, providing a means to utilise the property's value for additional financial flexibility. What Are the Downsides of Refinancing Your Home Loan? Costs and Fees Associated with RefinancingThe process of refinancing incurs costs and fees, such as application fees, valuation fees, and potential lender's … [Read more...] about Refinancing your Home Loan and its Importance
Home building approvals trending higher
More owners and developers are planning to construct new homes and renovate existing properties, according to the latest home building approvals data.In January 2023, only 12,185 building approvals were issued. But after trending higher throughout the year, the number of approvals reached 14,529 in November, an increase of 19.2%.Please contact me before you start a building or renovation project, so I can explain how the finance works. Unlike with a regular home loan, where you receive the money in a lump sum, a construction loan involves a series of progress payments (typically five) as your project proceeds. The advantage of this approach is that instead of paying interest on the whole loan amount, you pay interest only on the portion received.Another difference is that construction loans typically start as interest-only; you can then switch to paying principal and interest once the project is complete.Want to invest in property in 2024? Let's talkHit 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 Home building approvals trending higher
Mortgage Refinance Beginners Guide
Mortgage Refinance Beginners Guide 2024 Refinancing a mortgage can seem like a daunting task for beginners, but understanding the process can lead to substantial financial benefits. This beginner's guide to refinancing your home aims to provide a comprehensive overview of the mortgage refinancing process, covering its benefits, drawbacks, and factors to consider before making this important financial decision. What is Mortgage Refinancing? Mortgage refinancing involves replacing an existing mortgage with a new loan, typically to take advantage of better interest rates, access home equity, or reduce monthly payments. The refinancing process allows homeowners to renegotiate the terms of their home loan, potentially saving money in the long run. Understanding the Refinancing Process Refinancing is the process of paying off an existing mortgage with the proceeds from a new mortgage, using the same property as collateral. This allows homeowners to secure a new loan with better terms. Benefits of Mortgage Refinancing The benefits of refinancing a home mortgage include potentially lowering the interest rate, accessing home equity for other financial needs, reducing monthly payments, and providing valuable financial relief Drawbacks of Mortgage Refinancing While refinancing offers numerous advantages, there are potential drawbacks to consider, such as closing costs, fees, and the overall financial impact of a new home loan. When Should You Consider Home Mortgage Refinancing? There are several instances when homeowners should consider refinancing their home loan in order to improve their financial situation. Steps to refinance your home loan Lowering the Interest RateOne of the primary reasons to refinance a mortgage is to secure a lower interest rate, which can result in significant savings over the life of the loan.Accessing Home EquityRefinancing allows homeowners to tap into their home equity, which can be used for home renovations, debt consolidation, or other financial needs.Reducing Monthly PaymentsBy refinancing, homeowners may be able to extend the loan term, resulting in lower monthly mortgage payments and providing financial relief. How to Refinance Your Mortgage Refinancing a mortgage involves several steps, from choosing a mortgage broker to understanding mortgage insurance and comparing home loan options.Choosing a Mortgage BrokerSelecting a reputable mortgage broker is crucial, as they can provide expert guidance throughout the refinancing process. Freshwater Finance is your most trusted option. With us, you can’t go wrong.Understanding Mortgage InsuranceMortgage insurance may be required when refinancing, so it's important to understand how it works and its potential impact on the new home loan.Comparing Home Loan OptionsExploring different home loan options and comparing their terms and associated costs is essential to finding the most suitable refinance … [Read more...] about Mortgage Refinance Beginners Guide
National property prices rose 8.1% last year
Australia's median property price reached a record $757,746 at the end of 2023, after another year of growth.The median price rose 3.0% during the pandemic year of 2020, surged 24.5% in 2021, contracted 4.9% in 2022 and then climbed another 8.1% in 2023, according to CoreLogic.The median price for the combined capitals ended 2023 at record levels, while the combined regions were just 1.5% off peak.December was the 11th consecutive month of price gains (see graph) – however, as CoreLogic research director Tim Lawless noted, it was also the smallest of those monthly gains, at 0.4%. “After monthly growth in home values peaked in May at 1.3%, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year,” he said.As interest rates move up and down, so does the average person's borrowing power. Borrowing power tended to decline in 2023 and is likely to change again in 2024 as rates evolve. The other point worth mentioning is that your borrowing power can vary significantly from lender to lender. The good news is that I can match you with a bank that wants to lend to someone with your situation.Talk to me about your borrowing powerHit 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 National property prices rose 8.1% last year