With rents climbing steeply in many parts of the country, 2022 might be the ideal time for younger Australians to enter the market. The average rent paid by a tenant living in a capital city was 7.4% higher in the December quarter of 2021 than the same quarter of 2020, according to Domain. So if you’re a first home buyer, you might be wondering – what can you do to save a deposit? Options include:
Home loan activity is at historically high levels, according to the latest data from the Australian Bureau of Statistics. Australians committed to $31.4 billion of home loans in November, which was 6.3% higher than the previous month and 33.2% higher than the previous year. Owner-occupier borrowing was up 7.6% on the month and 17.2% on the year, while investor borrowing was up 3.8% on the month and 86.9% on the year. Want to enter the market this year? Here are three home loan tips:
With a clear passion for supporting the financial and professional success of women, Get Smart Financial founder Rachael Bland was inspired by strong female role models from an early age.
Her company name Get Smart Financial was encouraged by the lead female character Agent 99 from popular spy comedy show Get Smart which she spent a lot of time watching growing up as a child of the Seventies. Working for the Spy Agency CONTROL in Get Smart, Agent 99 was a mysterious female spy who spoke Chinese, German, French and Spanish, was an accomplished dancer, a violin and harp player and a talented singer. “Her character was diverse, challenged, smart, quirky and non-conformist and I totally relate,” Rachael said. While Agent 99 was trying to take control of spy agency KAOS in the fictional world of Get Smart, helping customers take better control of their finances was one of the key motivating factors in the establishment of Rachael’s mortgage broking business nine years ago. She established her business after spending more than ten years in mainstream lending, and as a single parent of three young children at the time, having the flexibility to run her own business, was also critical to the decision to branch out on her own. Rachael believes that helping her clients fulfil their financial dreams is an honour and the thing she enjoys most about being a mortgage broker. “Very often clients are not just wanting a loan or just a service, they are looking for someone to understand their vision, their dreams and their goals,” she said. “Anything is possible, with commitment, the right team all working together, and great advice, and to be a part of the journey when a client comes to realise this, is just so fulfilling.” Her passion for encouraging customers to take control of their finances, especially females, has been borne from her own experiences raising three children as a single mother. “50 per cent of marriages in Australia with children, end in divorce, and when this occurs, 80 per cent of those single parents are women,” she said. “Of those 80 per cent, around 40 per cent will live at or below the poverty line. That means of every 20 marriages, 10 will end in divorce, 8 women will be the primary or sole caretaker of children, and 3-4 will live below the poverty line. “Take notice, you need to know, your friends need to know, all young women need to understand this, it is critically important.” The importance of being financially literate is a message that she constantly impresses on her children, now young adults, and their friends. “Understanding your superannuation, what compound growth is, what capital growth is and that financial independence is a good thing,” she said. “It is my and our absolute responsibility to the next generation.” Translating her passion for supporting women’s success into tangible industry initiatives, Rachael has established a Women in Finance closed Facebook group which she describes as a “place of no judgement” where female brokers can connect, celebrate their successes, and support each other. She is also the latest appointee to the advisory board of the MFAA’s Opportunities for Women Program and believes that one of the biggest differences to enabling greater diversity and inclusion in the industry is highlighting the path trodden by successful female brokers, the barriers that were overcome along the way and the successes they have achieved. “We need to tell more of our stories, and to learn from other women. Role modelling, and leading by example is integral,” she said. “Women can be their own greatest critic, and sometimes the fear of failing, can stop us from getting out of the gates. You don’t need to know it all, you need to be driven, and prepared to grow, learn, and be the best you can be. Sometimes you have to take calculated risks and to back yourself to truly understand what you are capable of.” Her greatest wish for greater diversity in the mortgage and finance industry is to see more role-models telling their stories and the industry creating more pathways to becoming a broker for diverse individuals. “If the pathway to becoming a broker is broken down in a step-by-step format, that is easy to follow, it would help new entrants see the path, and understand that the goal is achievable,” she said. “Sometimes the path is not always clear.” She believes greater diversity is integral to maintaining the industry’s reputation as a trusted adviser by ensuring that brokers continue to really understand the needs of their diverse customers and always have their best interests at heart. “At an industry level, I am so proud to see year in year out the growth and development of our professionals, who continue to reach higher ground with our experience, education, diversity, and investment in development and training, which ultimately makes us better business owners, but also better advisors,” she said. “The combination of better collaboration, processes, experiences and diversity continues to elevate the value of brokers in Australia, and this is absolutely evidenced by the increasing numbers year-on-year of loans in Australia written by mortgage brokers, but we can and must do more. “ Regarding her own secret to success, she says her clients’ success is a testament of her success. “Our clients are front and centre of everything we do, and achieving the very best results for them, and ensuring they feel valued, informed, and empowered by our knowledge, expertise and experience, is the recipe we follow and pays dividends for all involved,” she said. “We have all had people tell us that we can only do so much, and I have always used this as motivation to defy what others believe they, or I might be capable of. Anything is possible, all it takes is hard work, and there really is no limit.” And finally, what is her advice to her younger self? “Set your goals, and know that two steps forward, and one step back, is still forward progress, and that is still ok,” she said. “Go early. Set your boundaries, and honour them and get comfortable with saying no if it is not part of your plan, no matter who it is.” Source: https://www.mfaa.com.au/news/champion-diversity-rachael-bland Do you have FOMO and is that contributing to your financial prosperity, or keeping you up at night?
Comparison website Finder recently reported that household debt hit a record high of more than $2.5 trillion at the end of December — an average of more than $257,000 per household, which represents more than 180% of disposable income which is one of the highest rates in the world according to recent reports. More than half of Australians’ debt was in the form of credit cards followed by personal loans, car loans, buy-now-pay-later services, and payday loans last year, according to Canstar’s Consumer Pulse report. Credit card debt fell to 56 percent last year from 67 percent in 2019 as consumers curbed spending in shops and restaurants during the Covid pandemic. However buy now, pay later debt nearly doubled to 18 percent from 10 percent over the same period given the fast growth in the online-based payment schemes. So the question begs, are you making impulsive decisions that you regret later because you don't actually need to pay now? If so, time to cut up those cards, and speak to us about debt consolidation, to get your payments, rates, and debt down, and power up that debt reduction while interest rates are so low! Want to save $108,000? We can do that! 🙋♀️💰🏡
Recently, the comparison provider Compare Club conducted a poll that 80 per cent of Australians cut back on spending during the three months to June so they can cover their bills. Of the 73 per cent of consumers found to have received a bill that cost more than expected, 50 per cent avoiding to eat out, and 35 per cent cut down on their saving. The majority of those surveyed were property owners who spent one-third of their income on home loans. Despite the low interest rates now, more than half of the respondents had not considered refinancing! According to Compare Club Home Loans' general manager, Matt Gatt, a homeowner with a mortgage of $450,000 could save around $3,600 annually and more than $108,000 for the entire mortgage if they reduce their interest rate by 0.8 per cent. Investors were most likely to refinance, with multiple properties because of their experience in the market. Out of 10 first home buyers, 9 of them are actively looking to cut costs, with 79 per cent comparing service providers and 59 per cent making a switch. 40 per cent of younger homeowners (aged 25-34), are more than twice as likely to compare and switch than those aged over 54, at 15 per cent. It is the youngest consumers who had experienced the highest rates of bill shock and had searched for ways to cut living costs, with half switching to more affordable providers. In contrast, consumers aged over 54 experienced bill shock, but in response, only 12 per cent switched service providers to refinance. Want to know more on refinancing your home loan? Feel free to reach out so we can provide options for you and you can start saving! With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. So, meeting with our awesome clients, Joel and Millie this morning, who have just purchased as first home buyers, the most STUNNING property in Rosebud, imagine, Hampton styled exterior, wooden floor boards, and close to the beach, which we are SO excited about, but at our 7:30am zoom this morning, Humphrey their new pup joined the call too!
He was so chilled for the new meet and greet, but literally looks more like a teddy bear than a pup! Had to share, Joel, Mille and Humphrey are going to not only love the new digs, but also the daily walks along the beach from their stunning new home! So excited for you guys!!!! Congratulations! 🏡⛱️🐶🧸 With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. The RBA Board has decided to keep the official cash rate on hold at the record low 0.10%pa this month. Their decision comes as we witness the largest one-month jump in house values in 17 years and a surge in new home loans.
While this indicates the Australian economy is recovering sharply, it has prompted warnings the Reserve Bank may need to soon reassess record-low interest rates. While no one can accurately predict when this will happen, it begs the question: do you have a portion of your mortgage fixed? Fixed vs variable? The main advantage of a variable interest rate is this: when interest rates are low, your monthly repayments are low. That’s a win! But, when interest rates eventually begin to rise, your monthly repayments will increase. That’s food for thought. With a fixed loan, your repayments stay firm. This offers you certainty, which can help you plan your finances in other areas. Where does your loan stand? If you’re not sure you’re getting the best out of your mortgage, give us a call, we can go through your loan and your circumstances. With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. Buying a home is one of the biggest financial decisions of your lifetime and with so much at stake, it’s in your best interest to know every little detail about what you’re entering into.
A property valuation is an essential step in the loan application process. When you apply for your loan, the lender will send someone to determine the registered value of the property. This number may differ from the actual price you pay. Because the valuation affects your LVR it’s imperative that if you don’t like the figure you’re given, you find another lender with a more favourable valuer. We can help you find a lender that would suit best and answer any questions you might have about property valuation. Schedule a meeting and let's discuss! There are so many emotional motivations for people to buy property, however three main reasons people invest in property that stand out:
Capital Growth Simply put, this is how much the value of your property will increase over time. This isn’t something that happens overnight so be prepared to hold onto the property for a few years if you want to see significant growth. Rental & Investment Yield This is the amount of profit you make from rent after you deduct expenses such as upkeep and taxes. Rent prices in Australia are sky-high right now so you can expect excellent returns. Tax There are plenty of ways to save on your tax bill if you invest in property. You can claim expenses such as renovations and capitalise on negative gearing by offsetting any losses you incur on your property against your taxable income. Perhaps you have another reason you are thinking about property investment? Or, one of the above is your motivation? Let's discuss! Think about the last time you went grocery shopping.
I bet you spent at least a few minutes comparing brands and deliberating on which products offered the best value for money. If we expect that level of choice in our supermarkets, why wouldn’t we expect the same from our home loans? A broker’s job is to do the comparing for you. Not only are they experts but they have access to a huge database of lenders who are all wanting your business. A broker is in the position to negotiate with those lenders and find you the right value-for-money loan to fit your lifestyle. As mortgage brokers we have:
Helping people just like you to find the right home loan is my passion. If you’d like to talk to me about how I can guide you through this journey, feel free to contact me or click the button below so I can schedule a meeting! With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. Over the years I have helped hundreds of people manage their finances and find the right home loan.
It’s common knowledge that after a few years, your original loan won’t be as competitive as it once was so it’s worth scoping the market to see what else is on offer. This process is known refinancing and is the act of replacing an existing home loan with a new one. People typically refinance for one of four reasons:
While changing your home loan may lead to lower interest rates and more flexible features, it can also come with additional costs so it’s essential to calculate both the savings and the expenses involved. To find a home loan that suits your current financial situation and to see how much you can save, feel free to reach out! This afternoon, the board of the Reserve Bank of Australia met for the first time in 2021 and rang in the new year just as it left the previous one – with no change to the official cash rate. It remains at the all-time low of 0.10%pa.
So, what is the Australian economy likely to be in 2021? Considering the year that 2020 was, the Australian economy has fared better than most countries across the globe. Despite bush fires, pandemic, lockdowns and the inevitable economic hiccups that came with these. A recent Deloitte report says “2021 looks set to continue the recovery in sectors smashed by the lockdowns and border closures of 2020, allowing the likes of accommodation, food, entertainment and airlines to continue to climb back from the abyss.”. The same report indicates Australia’s economic recovery will be on the back of consumers, who are predicted to lift their spending by 6 per cent. And then there’s the housing market. Australian house prices are set to rise to record highs. The latest figures from CoreLogic show national average property prices are 1% higher than pre 9 pandemic and 0.7% higher than the previous September 2017 peak. The increase has been across the board, with every city and broader region recording a rise in January. With more people working from home in 2020, the realisation that the sea/tree change they’ve been dreaming of can be a reality has seen thousands packing up their city life and making the move. The result – demand for property outside the capitals has never been higher, and there are more city properties on the market. With interest rates at an all-time low, is 2021 the year for the change you’ve been dreaming of? Whether you’re upsizing, downsizing, a first-time buyer or just someone who wants a better deal on their mortgage, give us a call – we’re here to help. With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. First Home Buyer, looking for some tips to get you going in the right direction? Here are a few things to know that we talk to lots of our first home buyers about, to get them on the right track!
Got more questions? Feel free to book a meeting and let's chat! So you need a deposit to buy your new home, but what are the extra costs you need to consider?15/12/2020
Application & establishment fees, stamp duty + more.
When taking out a mortgage, many people forget to consider the associated fees and expenses. Here are some of the extra costs that you’ll need to consider when you take out a home loan, however we have ways to allow for these costs by providing estimates, and even minimising these costs in some instances too! Home loan application fees Most lenders charge a home loan application fee. This can range from loan to loan, and covers:
Mortgage fees and costs
Property Fees and costs
To learn more about the hidden costs of buying a home, talk to us! Feel free to reach out and book a meeting! With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. It’s been quite a year, hasn’t it? After last month’s decision, the Reserve Bank of Australia has chosen to take stock of what has been a turbulent year and has included three cuts to the official interest rate, which now sits at an all-time low of 0.10%.
The RBA – and mortgage holders – will be buoyed by a predicted 7% rise in house prices next year (according to a Commonwealth Bank Report). November has seen record-low interest rates, a resurgent labour market, which has added 650,000 jobs in five months, and $394 billion in state and federal government stimulus. All of this is expected to move Australia out of a technical recession when official September quarter figures are announced tomorrow (Wednesday 2 December). According to data from research firm Digital Finance Analytics (DFA), this positive forecast is set to create a wave of homeowners looking to change their living arrangements in 2021. DFA’s data suggests that over 1.1 million Australians intend to sell their property in the next six months. Overall, 2021 is shaping up to be a transformative year for the Australian economy – and the housing market. So, what does this mean for you? If you’re considering a move, 2021 will be ideal. Of course, you’ll need to consider whether you’re upsizing or downsizing. Either way, the cost of borrowing will more than likely be to your benefit. If you’re happy where you are, you should still consider reviewing your mortgage. There’s a good chance you can either find a better deal or renegotiate your current loan. Whatever your plans are, we are here to help. Please feel free to contact us to discuss how we can help you in 2021. With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past. Fortunately, Get Smart Financial is here to help. We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time! Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process. We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times. Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below. If you are finding it tough to meet your current financial obligations or you are just interested in reviewing your current home loan, then you are not alone. Mortgage brokers stand ready and able to assist with your options during this difficult time.
Turbulent does not even begin to describe 2020 so far. As a result of COVID-19 and not forgetting the bushfires, thousands of Australians are out of work, with Treasury predicting that the jobless rate will double in the June quarter from 5.1 per cent to 10 per cent. Many others have had their hours reduced or have been temporarily stood down. In this period of uncertainty, at the very least many will be taking a closer look at their finances to make sure their current loan arrangements are right for them. Mortgage and finance brokers have the experience and knowledge to assist in a variety of situations and are simply an internet search or phone call away. Mortgage brokers are in regular contact with their lender panel and make it their business to understand the different options lenders currently offer. And while the options can seem straight forward, it is easy to miss the details and differences that can add up, particularly over a 30-year term. For example, a number of banks are offering to temporarily freeze mortgage repayments for three or six months. While this may seem like a good option, it is important to fully understand the implications. This could mean that the total debt will increase. Of course, depending on an individual’s circumstances, there may be a number of available alternatives that may reduce repayments while not increasing your interest bill as much in the long term. Refinancing too may be on the minds of many as a result of the Reserve Bank cutting rates and banks passing them on, to varying degrees, as well as access to a range of competitive fixed interest rate options on the market. A discussion with your local mortgage broker may be just the ticket. While a simplistic view of what constitutes a great mortgage is the one with the lowest interest rate, mortgage brokers know that what suits one person might not necessarily suit another. For instance, fixed interest rates can offer peace of mind as interest rates increase, but they can be the cause of anxiety if rates fall or if unforeseen circumstances require a change. No matter what your circumstances are, mortgage brokers can actively assist you in navigating your current situation. So, if you’ve been thinking about reassessing your finances and are not in contact with your broker, do yourself (and your cashflow) a favour and let’s chat! |
AuthorRachael Bland – Founder & CEO Archives
February 2024
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