The First Home Loan Deposit Scheme (FHLDS) is an initiative of the Australian Government to help first home buyers realise their property dreams. The costs of buying a property in Australia can add up, and trying to save for a deposit can be a tall order. The scheme will be supporting up to 10,000 guaranteed loans per financial year from 1st of January 2020. The Australian Government understands these difficulties and is offering eligible first home buyers the opportunity to purchase a property with only 5% deposit. Normally, as a buyer, if you only had a deposit of 5%, you would be required to pay lenders mortgage insurance (LMI). LMI is a one-off insurance payment to protect the lender in the event you default on your loan. Under the FHLDS, eligible first home buyers could save $10,000+ in LMI fees charged by the bank. From the 1st of January 2020 the NAB and CBA will be offering guarantee loans to eligible first home buyers. From 1st of February 2020, 25 non-bank lenders will also be offering guarantee loans under the FHLDS. Who is Eligible for the Home Loan Scheme? First home buyers will need to satisfy a number of criteria… [Read More]
Conditional Loan Approval – The Smart 1st Step
The Ins and Outs of Conditional Approval There are plenty of people out there that dive in at the deep end, find a property that they’d like to buy without any consideration for their financial potential and then end up getting rejected for a mortgage. And then there are those that prefer to do things a little more intuitively; by applying for what most inside experts refer to as conditional approval. With it, you’ll have a much clearer idea of what you can borrow from a lender – or more importantly, how much you can afford to repay. And without it, you could be going into the property purchasing process near-blind. Sure, a mortgage calculator can give you an idea of your borrowing potential; especially if you take advantage of their features to get a rough idea of your financial capabilities, but there’s nothing quite as reassuring as knowing that once you’re ready to buy, your lender is 1 step closer to full approval. Is it a guarantee? The clue is in the name really. Conditional approval is technically approval; as long as your lender’s conditions are met. Provided the conditions are met, it is like being given the go… [Read More]
The Ultimate Introduction to Mortgage Brokers
Your Ultimate Introduction to Mortgage Brokers Mortgage brokers, home loan agents and interest rate comparison experts are typically all one and the same. In most cases, they act as somewhat of a ‘middle-man’ between you (as a borrower) and the lender. They collate information, compare interest rates and perform application-related tasks to help their clients secure the right type of loan for their needs. Do mortgage brokers charge? Yes and no. Yes, if they work independently and outside of the commission-based protocols offered by banks. No, if they work with specific lenders that pay them commission each time they bring a new borrower on board. What is a mortgage broker job description? In a nutshell, there are two specific descriptions for these types of home loan specialists. The first relates to independent brokers that offer mortgage comparison services at a cost. The second relates to commission-based agents that charge the bank a percentage of your loan if you sign up to a fresh mortgage. Roughly 35% of all new mortgages were handled by brokers in 2008 alone. What are independent mortgage brokers exactly? Generally speaking, an independent agent is anyone that works outside of the rules and regulations of an… [Read More]
How Frequently Do Interest Rates Change?
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]
What Grants Are Available to First Home Buyers in Victoria?
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]
- 1
- 2
- 3
- …
- 10
- Next Page »