Dana Boyd Mortgage Broker - Tundra

If you’re currently in the process of applying for a mortgage, you’ve undoubtedly come face to face with the concept of interest rates. These additional fees are what banks rely on to provide them with a return on their investment. In 1990 the percentage was at a whopping 17.5% – the highest amount to have hit Australian banks in history. There are a dozen of factors that can affect the way in which rates rise and fall; from the current state of the economy, to investments from third parties and external sources. But just how often do they change and is there a way to predict whether they will increase, or decrease? Financial experts and their views on rates For years now, financial advisors and mortgage brokers have been studying the rate market in an effort to learn how they can climb and drop. Over the years, many have learnt how to recognise the subtle signs that are often followed by a change in rates – and this is why we always advise our clients to obtain as much information as possible before agreeing to terms. So, how frequently can you expect these rates to change? Well, it all comes… [Read More]

The Victorian Government, as with other states and territories in Australia had developed a number of initiatives to help people purchase their first home. Each state has a slightly different incentive, however in Victoria, when purchasing/building a new home you may be eligible for a First Home Owner grant (FHOG): Buying or building a new home to the value of $750,000 Regional Victoria: grant of $20,000 Metro Melbourne: grant of $10,000 If you a buying a new or established home, you may also be eligible for the First Home Buyer (FHB) Duty Exemption One off duty exemption if principle place of residence (PPR) valued to $600,000 or a Concessional duty for PPR valued between $600,001 to $750,000  Example of FHB Duty Concession Property Value Normal Duty Duty after Concession $605,000 $31,370 $1046 $625,000 $32,570 $5428 $650,000 $34,070 $11,357 $675,000 $35,570 $17,785 $700,000 $37,070 $24,713 $725,000 $38,570 $32,142 $745,000 $39,770 $38,444   To be eligible for FHOG Your new home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less and be the first sale of the property as a residential premise. You’re not eligible for the FHOG if you or your spouse/partner… [Read More]

Whether you are a first home buyer or experienced investor, buying a property can be an exciting by daunting experience. It is therefore important to understand who’s who in the zoo and ensure that you have a network of people to help support you through the process. Real Estate Agent Does the thought of meeting a real estate agent make you think of a used car salesman? Things have changed a little, but unless it is a private vendor, you will inevitably have meet and liaise with a real estate agent when viewing and buying a property. The key is to understand that they are working on behalf of the vendor not you. They will also handle the sale and negotiation of the property to buyers. Conveyancer A conveyancer plays an important role in the purchase of a property. They handle the legal side of the property transfer. If you are in the market to purchase a property, they can review the properties Section 32 to ensure there are no obvious concerns. Once an offer has been accepted, they will prepare the legal documentation involved in the change of ownership. Many conveyancers are also solicitors and can then also provide… [Read More]

Have you been thinking about refinancing your current home loan? The cash rate has dropped to a record low with lenders dropping their home loan rates. Interest rates have dropped across both variable and fixed interest rates with Virgin Money currently offering 2.99% * fixed for 3 years! Whether you are refinancing to enjoy a lower monthly repayment or are looking to release some equity in your home for a renovation or investment property, make sure you are getting what you think you are. Make sure you read the fine print As demonstrated with Virgin Money, many lenders are offering enticing interest rates, but make sure you are actually a better deal than your existing loan. The fine print for the Virgin 2.99% was that the new comparison rate is 3.53% and was calculated on a loan amount of $150,000 for a term of 25 years with a loan to value ratio (LVR) of 80% or less. Different terms, fees or other loan amounts might result in a different comparison rate. Therefore, you may not fit their policy mould and may end up paying more than you expected. Why is the advertised interest rate 2.99% and the comparison rate 3.53?… [Read More]

Whether you like it or not, Scott Morrison is Prime Minister for a further term and with it comes a new incentive for first home buyers. As part of their election promise, the Liberal Government plans on supporting first home buyers further by establishing the First Home Loan Deposit Scheme (FHLDS). Evidence suggests that saving for a 20% deposit for a home can take on average 9 to 10 years. The Federal Government wants to help young Australians realise their home owning dream by helping with the deposit. How are the State and Federal Governments currently supporting first home buyers? At a State level, first home buyer incentives vary. In Victoria there are a first home buyer grants and stamp duty concessions: Stamp duty exemption and concessions on established homes, exemption for properties valued up to $600,000 and concession for properties $601,000-$750,000 First home buyer grants; buying or building a new home you may be eligible for $10,000 owner occupied property in metro Melbourne and $20,000 in regional areas. Live webinars to help you to understand at https://www.sro.vic.gov.au/events At a Federal level, the Government introduced the First Home Super Saver Scheme (FHSSS): FHSSS; under the scheme, you’ll be able to… [Read More]