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!

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! 🏡⛱️🐶🧸

​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.

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: 

• Has access to more lenders, meaning you’re more likely to hear a ‘yes!’
• Is specifically trained in mortgages and knows how to structure your loan to suit your goals
• Acts as your own personal banker, guiding you through every step of the home loan process
• Will be your broker for life! You’ll receive ongoing help and advice whenever you need it during the life of your loan 

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!

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:

• To get a better interest rate and lower their weekly repayments
• To access their equity for future investments
• To renovate
• To consolidate debts

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.

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!
​

1. Speak with your broker... there are a few little costs, that you don't want to find are surprises, to allow for in your deposit.... are you going to need to pay Lenders Mortgage Insurance? What about conveyancing costs? Not sure what to allow for these (or how to avoid Lenders Mortgage Insurance if possible)? We know, speak to us.
2. Run a tight ship... more and more lenders now assume that your living costs, will continue and are not negotiable... for example, you might be hitting the town a little more at the moment, with the knowledge that when you buy, you will tighten your belt, and run a more efficient budget... but the banks won't see it like that.... so, tighten the belt now, and show that you can stick to a realistic budget over a 2-3 month period, it will make the application for finance run more smoothly, and the bank will likely ask less questions!
3. Much like point 2, don't lean on your credit card too much.... credit cards are unsecured finance, and while it is logical that you might use and pay out the balance in full each month to accrue points or similar, a credit card that has a balance that is increasing each month, indicates you may be spending more than you are making... Remember, that sometimes, you might use your credit card to pay off say whitegoods over a period of time, but, for incidentals, probably not a great idea to carry forward over multiple months (not to mention it will save you a packet in interest!)
4. Got any other lines of credit, unused credit cards, personal loans, and even AfterPay? An important lesson to learn, is that the banks will assume that you can max out these facilities any time, even if you haven't used them in a long time, and will assume the maximum due payment... AfterPay repayments, given they are over a short period of time, often really hurt borrowing capacity! So, if you don't need it, get rid of it... it will improve your credit score too!
5. Remember, that for every $700 of possible unsecured credit repayments each month, this will wipe out around $100,000 in borrowing capacity for property... in real terms, a credit card with a $15,000 limit, will wipe out $150,000 in borrowing capacity for that new property... if you don't need it, get rid of it!

Got more questions? Feel free to book a meeting and let's chat!

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:

• Loan contracts 
• Property title checks
• Credit checks
• Attending a settlement

Mortgage fees and costs

• Mortgage establishment fees – Lenders generally charge a mortgage establishment fee – a fee for setting up a mortgage.
• Property valuation – A third party chosen by the lender, is appointed to determine the value of your land and improvements.
• Mortgage registration – Your Mortgage deed needs to be registered with the government.
• Mortgage stamp duty – Some State Governments charges stamp duty to register your mortgage.
• Lenders mortgage insurance – If you don’t have 20% of the purchase price or the value of the property, the lender will require you to pay for a lenders mortgage insurance policy that covers their risk in the event you default on your repayments.

Property Fees and costs

• Building, Pest and Electrical Inspection fees – It’s wise to have your property inspected for any structural or electrical problems and for pests (e.g. termites).
• Stamp duty – Governments charge Stamp Duty to transfer the ownership of a property.
• Registration of transfer fee – The new owner of the property needs to be registered at the Land Titles Office.
• Legal fees – You generally need to pay a Solicitor of Settlement Agent to handle the transfer of ownership of the property on your behalf
• Home & contents insurance – Most homeowners insure their home and contents against a range of threats: burglary, fire, storm, etc. Lenders insist that your property is insured while you have a mortgage.
• Life and income protection insurance – Borrowers should consider protecting their incomes and themselves while they have a mortgage.
• Utility costs – Connecting electricity, gas and telephone can attract a fee.
• Council Rates – Your local council charges rates to cover garbage collection and a host of other services.
• Water Rates – The water corporation charges rates for the supply and upkeep of water to your property.
• Body corporate fees – If you buy an apartment or Strata Titled property, body corporate fees are charged, and some fees can be significant – particularly if the building is in need of a major work (e.g. concrete cancer, security upgrade, new hot water system, etc) or if there are lifts, pools and other communal facilities.
• Maintenance costs – Don’t forget to make provision for regular maintenance on your home – even if you decide not to undertake significant renovation.

To learn more about the hidden costs of buying a home, talk to us!

Feel free to reach out and book a meeting!

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.

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!

Investment in real property, such as residential real estate, is likely to be a process requiring great consideration and thought, and one that usually involves a plan for the long term. To ensure you have considered what is required before making the big purchase, we’ve outlined a few steps you might want to take in that process.

1. Make the commitment

A property investment must be a long term commitment in order for it to be worthwhile, so the very first step is to ‘do the numbers’ in order to evaluate your budget, potential constraints and future financial and personal obligations including the potential impact on family members.

“Consider your future as far ahead as you can,” said one of my industry colleagues. “You need to assess your ability to maintain or improve personal income as well as your commitment and ongoing financial capability to continue to service the financial impact of the investment for a minimum of five to ten years, as that’s what generally brings premium results.” You need to also make the commitment to ‘manage’ the investment – even if you outsource the day-to-day tasks involved including locating suitable tenants, collecting rents, paying relevant costs in rates and taxes as well as ensuring that the property’s repairs and maintenance are kept up to date. In short, make sure you have a great property manager!

2. Obtain Professional advice

You now need to obtain professional advice. An investment in real estate is likely to be significant in relation to your current financial position. If you have already discussed the investment with a licensed financial planner or investment adviser and residential real estate is considered the most appropriate in your current circumstances, you will have considered aspects including rental return, maximum capital growth and/or tax effectiveness. 

3. Get help with finding that right property if you need it!

You next need to locate a suitable property. There are buyers agents now available who can assist you in this process – potentially saving you money by disregarding inappropriate properties and concentrating on those that are more likely to deliver the highest return and capital increase to you over time.
A good buyers agent will negotiate with the agent on your behalf (who doesn't love that!), as well as terms, and assist with final inspections and the like.

4. Consider the equity you will contribute

Following that, unless you have cash or other investments that can be converted to cash to make your property investment, the next step is to contact a mortgage broker to help you to secure finance to enable purchase. 
This will give you the opportunity to ask the broker as many questions needed to alleviate any uncertainty you may have about securing that finance, and make sure that the proposal is balanced, and suitable to your needs, along with making sure that your finances are in order to support the proposal.

5. Have your team sorted!

Using the services of a mortgage broker, accountant, financial planner, solicitor/conveyancer and property manager on your team will also assist you in coming to your decision, and to make sure the decision, is a good one for the longer term.

And, if you don't know where to start with this, we do, reach out!

6. Assistance from relatives & friends

Talking to friends, family and acquaintances who have already made such an investment, or are currently considering one, can help your awareness of stumbling blocks and potential issues that you might otherwise miss. While any issues you face may seem new, it can help to bounce these off a trusted friend or relative who has been there before.

7. Collate your information 

In order to apply for finance, you will need proof of your current income, employment and your assets as well as all liabilities including debts, loans, rental payment, outstanding credit card obligations and any other due payments, for example, buy now pay later commitments. Collate these and also any paperwork that helps support your personal position. For example, if you have been a long-term tenant, get a 12-month tenancy statement that proves your capacity to make regular repayments. Before applying for a loan, minimise your current debt load, and if possible, reduce the limit on, or cancel any credit cards you have, as this is perceived by lenders as potential for debt.

It is strongly recommended that you have a fully assessed pre-approval before you start your search. This will allow you to know what your financial limits are so that you can make an offer when you’ve found a property you like.

8. Other things to consider

An investment property purchase should not be an emotional decision. It is a business decision. Consider the property's appeal to the type of individual who wants to reside in the area, and speak to a reputable property manager to find out what kind of properties are the most sought after, and accordingly rental yield the greatest results in the area you are looking for.

Interested to know more? 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!)

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! 😂