Untitled. Home Loan - Get it Right the First Time. It’s no secret that the home loan landscape is in a bit of turmoil, and it feels like every day there are new changes to policy, eligibility and lenders requirements.
It also seems that every lender’s borrower-appetite changes on a regular basis and their main focus is about keeping the industry bodies happy. Whilst doing your research is important in deciding the right mortgage for you, there are other things to consider in getting the right mortgage. You might find the home loan that ticks all the boxes in features, suitability and fees – but you might not be the borrower that the lender is looking for at the moment. They might not like your employment situation, or your savings history, or they may scrutinise over your living expenses.
No movement as RBA keeps interest rates on hold. Sometimes, no news is good news.
So, while many economists predict the next move on interest rates will be up they also think that, for the foreseeable future, the board of the Reserve Bank of Australia will keep the cash rate at the record low of 1.50%. A statement released by the RBA after last month’s decision says the global economy has strengthened over the past year, with advanced economies showing above-trend growth and low unemployment. In Australia, the economy grew by 2.4% in 2017, with the RBA expecting faster growth this year. Positive business conditions, an increase in non-mining investment and higher levels of public infrastructure are also supporting the Australian economy. May is budget month.
So, as we all wait until next Tuesday to see how the budget will affect us and interest rates, take some comfort in this statement from Deloitte Access Economics regarding the most recent Federal Government tax collection windfall: Like this: Like Loading... Types of Home Loans 101. There are a range of home loans available in Australia, so it can be hard to understand their features and whether they are right for you.
This guide explains all you need to know. Variable loans Variable loans are loans that are subject to interest rate fluctuations. Whenever your bank increases or decreases interest rates, you will end up either paying more or less for your loan, depending on what the bank has decided to do. A typical owner-occupied mortgage is taken out over 25 or 30 years, although you can reduce the overall term by making higher or more frequent payments. Fixed-rate loans. Finding a home loan when you’re self-employed. There are many perks to working for yourself, but when it comes to applying for a home loan, it seems being your own boss sends up a red flag to banks and other lenders.
Why? A salaried employee has a regular, steady income and is less likely to experience the cash flow volatility of a small business owner, contractor, entrepreneur, tradesperson or freelancer. Yet by being proactive and accessing specialist advice, self-employed applicants can also enjoy a successful and hassle-free road to securing a mortgage. Try these top tips for starters. Seek expert advice. What you Need to Know about Home Loan Refinancing.
A home loan is generally a long-term proposition, but in some situations it can make sense to refinance your mortgage.
Read this guide to the home loan refinancing process, and speak to your broker, before deciding whether it’s right for you. Refinancing involves taking out a new mortgage and using those funds to pay off your existing mortgage. Doing so can save money and result in significant financial gains over time, here are some of the reasons why you might refinance. You might want a lower interest rate. The lending products market is highly competitive and interest rates can vary significantly between banks. 3 Questions to Ask Before you Refinance your Home Loan. What to Consider when Buying a Second Property.
Buying your own home remains the great Australian dream – and purchasing a second property may help you take your wealth further.
Whether you’re building your property investment portfolio, buying a holiday house, upgrading or supporting a family member, there are plenty of things to think about before you take that all important next step. Untitled. How to Choose a Home Loan Term. Some people pay off their home loan in record time, while others take 30 years.
Which is better? Deciding on the length of your mortgage term is an important decision because it can significantly affect the amount of interest you pay, as well as have implications for equity and cash flow. Housing Affordability, what’s our new PM’s stance? On 15 September 2015 Malcolm Turnbull was sworn in as Prime Minister, signalling a new era for the Liberal leadership and this may lead to a different approach to the issue of housing affordability.
There could also be a fundamental shift in the way the government addresses economic issues, with the Turnbull government set to be “a thoroughly Liberal government committed to freedom, the individual and the market.” At the heart of Turnbull’s economic ethos is the concept of a ‘free market’, encouraging competition wherever possible. Despite low interest rates, the rate of home ownership for those under 65 is declining, along with wages growth. With the median house price in Sydney now at $1 million, housing affordability is an issue felt by many Australians, particularly those in urban areas.
This issue is not new ground for Morrison. Another area that impacts the demand side is taxation policy and, in particular, negative gearing and capital gains tax. Like this: No move on Interest Rates again. The final meeting of the Reserve Bank for 2015 produced no surprises as the Board made the decision to keep interest rates on hold.
The official cash rate continues to stand at an all time low of 2%. What is home loan portability? How will the changes to investment loans affect you? The importance of a knowledgeable mortgage broker has come sharply into focus following the recent banking system changes to investment loans.
Many panicked borrowers have turned to mortgage brokers like us, for guidance in the months since the Australian Prudential Regulatory Authority (APRA) directed the major banks to place limits on investment lending and hold more funds in capital reserves. With each bank responding individually to the directive, the changes in policy and pricing have varied wildly from one lender to the next. There has been confusion among borrowers and concern about how current and future investment lending is affected. Investment loans affected by the APRA changes.
Mortgage Brokers more popular than ever. Mortgage brokers are now responsible for writing over half of Australia’s home loans and are valued for their choice, expertise and convenience, according to a new survey commissioned by the Mortgage and Finance Association of Australia (MFAA). From a 49.9 per cent share of the market in the March 2014 quarter, total new home lending to mortgage brokers increased to 51.9 per cent in the March 2015 quarter. Over this time there was a $44.2 billion increase in mortgage lending across Australia and brokers were responsible for 71 per cent of this increase, Australian Bureau of Statistics data reveals. Could you be tempted by the lenders latest home loan offers? There’s a lot of competition for Australia’s $1.3 trillion home loan market and one could be easy to be dazzled or confused by the variety of offers available.
Indeed, some of the deals might sound more like those on offer from car dealers than the banks, but that’s what happens interest rates are low and every lender is keen to grab a share of the market. Home loan cash back offers In recent times, the deals have included cash discounts, $1000 gift cards to help with moving costs, cash rebates, holidays and even petrol discounts from one non-bank lender. A recent report by JP Morgan found that all the major banks were enticing borrowers with home loan rate discounts, with especially generous deals being offered to wealthy borrowers. “There’s been a huge spike in the number of lenders offering cash back sweeteners to borrowers, especially refinancers,” said Kirsty Lamont of Mozo, the interest rate comparison website. How to stay one step ahead Ultimately, there’s no one-stop-shop solution. Buying together – 4 tips about property co-ownership. Are you looking for home renovation finance.