Breakups are hard.
 
Yep, you heard it, I am breaking up.
 
With my bank.
 
The bank may think it’s me, but, I know it is the bank. No bias intended, but I know.
 
I was going to explain to the bank where they went wrong, and there were a few things I could have mentioned, but I need to be out of the relationship now, and I need to focus on me, and not them. It’s time for a clean break. You see, they are stuck in their ways, their communication is not great, and I need to feel appreciated, not just when things are good and the sun is shining!
 
When the idea crystalised, to be honest, I was a little put out. On reflection, I feel like my bank and I have been circling around this for a long time, and perhaps I have been a little distracted with life and goals, and parking it in the too hard basket… maybe even a little procrastination, reflecting on the good times we have had.
 
But, the time is now, and I need to be kind (thanks Matthew Hussey). We are not going to argue about this, I won't be baited with sweeteners, incentives, short term waiver of fees, after all is done, let’s not be angry with each other. I don’t need to come out of this being liked, it’s business!
 
I don’t want to give the bank hope, and I need to make a clean break, my ego doesn’t need to keep the connection. No, I am not going to buy into your cushy and cute marketing campaigns, the pretty colours, or the short-lived attention! And no, there is no reconciliation in the forward view.
 
Now, in all seriousness, I should have looked this in the eye sooner. The truth is, while I was focussed on forward progress, my finances really needed some housekeeping, and I  should have attended to this sooner, as my forward goals might have progressed even faster, if the engine was running smoother! You see, the car is your finances, and how well it runs determines how efficiently you get from where you are now, to where you want to be, and beyond.
 
So, let’s start looking at our finances, our banking relationships, more like financial transactions. Make sure that you are getting what you need out of the relationship, and assessing more often, and making the cut, the call, without emotion, if you are not getting what you want and need. 

Ring me for a chat, let’s talk about your bank, and let’s keep you progressing, making sure you are getting everything you need out of your banking relationship, not just your bank getting what it needs!

So, call me, I am getting good at breakups, and I am happy to share! 😂

The Australian government has announced an additional 10,000 First Home Loan Deposit Scheme places to be provided in the coming months!

This is a massive boost to first home buyers and will help save them tens of thousands in LMI and reduce the amount of deposit needed to buy their first home.

Read more: http://ow.ly/8NMD50BKiTD

The last two rounds offered this year were all filled up so better hurry! Are you a First Home Buyer, or know a First Home Buyer we can help?

​We can help get you into your new home faster, so let's have a chat!​

​Financial markets have been anticipating a 50% chance of the Reserve Bank of Australia cutting the official interest rates even further this year. It didn’t happen today, as the Reserve Bank of Australia has decided to keep interest rates on hold. It remains at the record low of 0.25%.
 
Federal Budget
What economic measures will be taken to deal with the downturn caused by COVID-19 will be known after tonight’s Budget announcement. It is expected to include a number of measures aimed at both households and businesses in order to encourage them to spend and invest.
 
Tax cuts
Income tax cuts are expected to be front and centre. The government will bring forward tax cuts that were to start in mid-2022 – they will now start in July this year. Under the proposal, the top threshold of the 19% tax bracket will rise to $45,000 and the top threshold of the 32.5% bracket will rise from $90,000 to $120,000.
 
What does this mean for the average Australian? For workers earning around $50,000 a year, the $1080 per annum tax cut that was scheduled for 2022 will be brought forward. Furthermore, this cut will be backdated to this financial year, beginning from July. They should see around an extra $30 in their pockets by December.
 
For those earning $120,000 or more, the tax cut will be worth up to $70 a week until July 1, 2021. The maximum tax cut of $2500 in 2022 will provide around $50 a week but will be increased for the remaining weeks of the financial year.
 
The government hopes this will encourage spending in the lead-up to Christmas, and therefore turbocharge the Australia economy.
 
Business boost
The government is also expected to offer businesses some relief. It’s not clear exactly what will be announced this evening, but is predicted to include asset write-offs and a cut to the corporate tax rate.
 
These and other announcements, combined with the record low interest rate, should be good news for mortgage holders. If you have any questions, please don’t hesitate to contact us.

Considering refinancing is a great opportunity to secure a better interest rate to your existing home loan. It can be a bit of a process, so it's best to understand a little more before jumping in... having said that, it is often well worth the hoops!

Here's a step-by-step guide to get your refinancing sorted:

Step 1: Understand the need to refinance and the most common reasons for refinancing:

• Lowering the interest rate and saving money
• Improved the loan features to achieve greater structure or convenience
• Consolidating your debt to save you money and time
• Access your home equity for other purposes such as car, holiday, or perhaps create an opportunity for investment

Knowing your 'why' makes it easier to find a new loan that fits you best.

Step 2: Home loan options comparison

When considering refinancing, you want to make sure you're shifting to the best new loan for the reasons that are most important to you. Make sure to seek guidance and direction in terms of the rate and features to ensure you have considered all of the important elements. You can speak with a mortgage broker, talk to lenders, or check out some comparison sites to be sure you're comfortable with your choice before you apply or transfer your home loan.

Make sure to seek details regarding the conditions of your loan, features added and removed, or how long the settlement will take when refinancing.

Step 3: Crunch the numbers

Refinancing comes with a variety of costs. There are upfront fees to the new loan, exit fees to the old loan, and mortgage registration fees to the government, and they all need to be considered into the viability and feasibility of the proposed changes.

Keep in mind that your new loan term will likely start all over again. Make sure to calculate exactly the amount of interest you can expect with your new loan and compare with your current loan to know if it's worth it to refinance.

Once you have all the figures, sum it all up to be sure that refinancing outweighs all costs.

Step 4: Applying for a new loan

Refinancing your existing loan will mean completing paperwork just like your current loan. You will need to provide a proof of income such as payslips and your IDs.

Step 5: Valuation

Make sure you understand how the valuation works because in refinancing, the new lender will want to value your home. Make sure to spruce things up before assessment as there are lots of small things you can do to maximise your property's market value.

Step 6: Loan approval

Formal loan documents will be drafted and forwarded to you for signing once your application is approved. Be keen and read the paperwork carefully and don't hesitate to speak with your mortgage broker if you have any questions, they'd love to chat!

Step 7: Settlement

On the settlement day, your new lender will receive the title deeds to your home, which was previously held by your old lender.

All you have to do is enjoy your new loan! With these refinancing tips, you could be in your new loan within 4 to 6 weeks!

Interested to know more about refinancing and don't want to worry about all the finer detail, and want an expert to look after it all at no cost to you? Feel free to reach out, book a meeting and let's chat, it's what we are good at(because I am home all the time... and I miss people, any excuse will do!)

Considering transforming your home from ‘blah’ to ‘brilliant’, but lack the funds to support your makeover? Never fear, we’ve rounded up five home renovation finance options that could help turn your dream into reality.

1 Equity Release / Top Up Home Loan

This is probably the most common way people borrow money when they want to renovate. It involves borrowing against the current value of your home, before any value-adding renovations and in most cases allows you to obtain the funds upfront. You won’t be able to borrow the full value of your home but, without mortgage insurance, you can usually borrow up to 80 per cent of its value if you own it outright....It may be worth considering Lenders Mortgage Insurance however, if you can see that the renovations are going to achieve you great return on lifestyle, and / or investment! Equity is key!
 
2 Construction loan

If you're planning to completely transform your home and undergo a major makeover, this may be a good option as you can spread the cost over a long period of time. You could even possibly borrow up to 90 per cent of the end value of your home and take advantage of mortgage rates which tend to be lower than credit card and personal loan rates. With a construction lending, the lender will assess the value of your home after the renovation based on the building plans and you can typically borrow against that value.  You won’t be given the full loan amount upfront, but usually in staggered amounts over a period of time – this is called ‘progress payments’ and is linked to a fixed price building contract which will be from your builder. 

3 Line of credit

When you apply, you can establish a revolving credit line that you can access whenever you want to up to your approved limit. You only pay interest on the funds you use and, as you pay off your balance, you can re-borrow the unused funds without reapplying if that becomes necessary.  However, care must be taken not to get in over your head in terms of serviceability and to make sure that you are actually paying off over the loan, which is not necessarily a feature of a line of credit. Rates on this product are typically much higher than a construction loan or top up loan so we want to make sure that there are no other, perhaps more suitable options for you, and that this really is the right product for you! This product feature is great if managed well, but can also be a trap if not seriously considered as your limit will never change. 

4 Personal loan

If you’re only making minor renovations – personal loans are usually capped at around $30,000 – this might be suitable, but interest rates on personal loans are higher than on home equity loans and payments need to be made usually over a maximum of seven years.... certainly worth looking at a new valuation to the home after the renovations are completed, as we might be able to consolidate that lending for you, and rates probably half that of the personal loan!

5 Credit cards

This option should only be considered if you want to undertake really small renovation projects. The interest rates are usually much higher than on mortgages, but for a very small project, that extra interest might actually total less than loan establishment fees. Sometimes, this can be a more cost effective option than increasing, or taking a loan with Lenders Mortgage Insurance, but careful consideration needs to be taken to ensure you understand the pros and cons of this approach, and that you prioritise paying off that credit card FAST!

*HomeBuilder

If you’re looking for further assistance to be able to afford your property renovation project, the Federal Government recently announced $25,000 grants for eligible Australian owner-occupiers to build a new home or substantially renovate an existing home. The Government’s HomeBuilder package is designed to assist the residential construction market by encouraging the commencement of new home builds and renovations. Income and other conditions apply and this grants program is active until 31 December 2020. For more information visit the Treasury website. 

One thing you must do!

There are very few exceptions to the rule that your renovations should add more value to your home than they will cost to carry out. Think about how the money you spend on a renovation will increase the value of your property. For example, consider making changes that would appeal to the majority of potential buyers to help you sell your house faster and at a higher price. 

Interested to know more in any of these? Feel free to reach out, book a meeting and let's chat (because I am home all the time... and I miss people, any excuse will do!)

While some view LMI as being exclusively beneficial for lenders, we explore the value for first home buyers.

Not to be confused with mortgage protection insurance (which is designed to protect the borrower), LMI is insurance that covers the lender’s risk within a residential mortgage transaction should the loan go into arrears and the borrower is unable to resolve the situation satisfactorily. LMI is a fairly common practice within the industry, particularly for new home buyers who may struggle to save a deposit. It allows an additional fee to be paid by the borrower and usually applies when the loan is more than 80 percent of the purchase property’s price.

The purpose of LMI is to ensure security for the lender in case the borrower fails to make loan repayments. Even though the actual house acts as security, the nature of the property market, like any investment class, means there is a chance that its value could decline, resulting in a financial loss for the lender.

The cost of the premium is dependent on several factors, such as the loan size and property value, and most insurers are flexible when it comes to the method of payment. It generally equates to around 2-3% of the value of the property you are buying, and given it is a one-off, then it often means you can get into the market sooner.  It can either be a one-off upfront premium payment or that premium could be included in the overall cost of the loan and included in monthly repayments. It is not transferable, which means a new loan may require a new fee depending on how much equity the borrower has.

What’s in it for me?

While it may appear that it is exclusively favourable to the lender, there is value to borrowers in paying the premium. Opting for LMI means it allows a borrower to independently purchase a property sooner than they otherwise might. LMI is the alternative to using a guarantor or having to save for a bigger deposit, both of which are not feasible options for many first home buyers.

A deposit of at least 20 percent of the desired loan amount is required for a borrower not to be deemed ‘high-risk’. If you consider that the average price of a home in Sydney is $650,000, that would mean a deposit of around $130,000 is required. The beauty of LMI is that it buys time, which means borrowers with smaller deposits are able to enter the market sooner rather than later.

The major benefit of LMI is that it allows the dream of home ownership to become a reality for a lot of first home buyers. To see if this is the case for you, book a meeting and let us help you!

COVID-19 has been it is fair to say, like a really bad B Grade movie with George Clooney nowhere to be seen. At this point, I would even be prepared to give some opportunity to Tom Cruise (sorry Nic) to save the day, but there have been some saving graces amongst all that 2020 has been so far! 

1. Refinancing
With the low-interest rates, banks at this point are competing hard for customers. A different lender may offer you better features on your loan that you couldn’t get previously, like an offset account, additional repayment and redraw facilities, an interest-only option or a fixed or split-interest option... with rates just above 2%, there are some serious savings to be had if you are able to consider refinancing.

If your current lender can’t offer you what you want, it's worth looking for mortgage options that do, and at the best possible rate!

2. First Home Buyer Grant
There are a number of select lenders that have been provided quota for the 10,000 Scheme places for the 2020-2021 financial year, and we can assist by guiding you through your lender options, and their respective process, to achieve the best outcome possible.... we are seeing amongst the challenges of 2020, some really exciting outcomes for our First Home Buyers, some of who are really embracing Digital Inspections to achieve some fabulous outcomes!

You could be in your first home with as little as 5 percent deposit with the scheme, and if you have a gift from family, and are currently renting which is a substitute for demonstrating your genuine savings, it could be even less.

3. HomeBuilder Grant
The Australian government announced HomeBuilder: a $700M housing package for Australians to access $25k grants for building a new home or substantially renovate an existing home.

This is available to eligible owner-occupiers including first home buyers and is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic by encouraging the building of a new home and renovations this year... there is more information to be released, so hang on tight, this could be good! 👏🏻

4. Lesser Lenders Mortgage Insurance
St. George Bank / Bank of Melbourne announced that their Lenders Mortgage Insurance (LMI) is reduced to $1.00 during the application stage to help their clients into their own home sooner for those with a loan to valuation ratio (loan / purchase price) of 85% or below.

From 13 July 2020, St.George Bank is offering to let first home buyers who are borrowing up to $850,000 for a property worth up to $1 million take out LMI for the sum of just $1.

This was introduced to account for how Australian first home buyers are re-evaluating their homeownership plans following the COVID-19 pandemic.

Interested to know more in any of these trends? Feel free to reach out, book a meeting and let's chat (because I am home all the time... and I miss people, any excuse will do!)