What is an offset account? An offset account is a transaction account that’s linked to your home loan. You can deposit into it and withdraw from it just as you would with a regular everyday bank account. The key difference is that the balance in your offset account is used to reduce the amount of…
Picture this… An individual receives a $50,000 windfall – this could come from an inheritance, a tax refund or a work bonus. They choose to place these funds into an offset account linked to a $500,000 home loan. As an illustrative example, this could reduce the amount of interest charged on the loan, potentially resulting…
Your everyday spending patterns can play a part in how lenders assess a loan application. While every lender has its own policy, understanding the way income, expenses and commitments are reviewed may help you prepare more confidently. How location can influence HEM benchmarks Lenders use the Household Expenditure Measure (HEM) to estimate living costs. HEM…
Rents across Australia have risen sharply over recent years, with little sign of easing Vacancy rates remain low, new construction continues to lag behind population growth and demand for quality rentals is outpacing supply in many areas. For renters, the pressure is real. Deciding whether to buy, rentvest or stay where you are, however, isn’t…
Use this checklist to inform renovation planning Note: Outcomes depend on execution and markets. Pre-renovation planning Budget with 20-30% contingency Labour shortages inflate costs 40-60% Obtain 3+ fixed price quotes from HIA registered tradies. Cap spend at 5-10% property value Avoid over capitalising (eg $30k max on $600k home). Check council approvals Confirm permits needed…
Lenders are paying closer attention to everyday spending than ever before. At the centre of it all sits HEM (the Household Expenditure Measure). With living costs rising and lender calculators evolving, your daily transactions may reduce your borrowing capacity, sometimes by a significant amount depending on your circumstances. HEM explained simply HEM is a benchmark…
You’ve scraped together the 5% deposit, worked through the LMI considerations and borrowing calculator assumptions. Keys in hand, you’re finally a homeowner. Then reality hits! That ‘affordable’ repayment leaves you skint by the second Thursday. Strata levies are due, power bills soar and one leaky hot water system wipes out your buffer. Year 1 can…
Most home buyers are fixated on two numbers: “How little can I put down as a deposit?” and “What’s your cheapest rate?” In a high price, tight lending market, that combo can be a very expensive mistake. Here are some common myth busters about lending you should know. MYTH 1 A 5% deposit means you’re…
Renovations can potentially enhance appeal for sellers or homeowners, however success depends on markets, budgets and execution. Real estate data suggests kitchens, bathrooms and exteriors often rank highly, though ROI varies widely (typically 50 – 100% nationally per Domain/REIA reports). Note: These stats are not guaranteed. Kitchen updates – general trends Cosmetic refreshes ($3k-$7k) may…
If the feature article attracted your interest, here’s a deeper dive into stagflation, why it’s so hard to fix and what it means for your finances in 2026. The policy dilemma at the heart of stagflation Stagflation creates a nightmare for the Reserve Bank of Australia (RBA) and the government. Status in early 2026 Why…