UNDERSTAND WHAT YOUR FINANCES CAN ABSORB BEFORE CHANGING CONDITIONS TEST THEM FOR YOU No one enjoys imagining that interest rates may rise again, household expenses may increase or a property could be worth less than expected. However, testing those possibilities before they happen can help you make calmer and more informed decisions later. A financial…
HERE’S WHAT BUYERS, INVESTORS AND HOMEOWNERS NEED TO CONSIDER. Earlier this year, many buyers were worried that property prices would keep moving beyond their reach. Since then, interest rates have risen again, the Federal Budget has changed the outlook for some investors and property conditions have become softer and more uneven. Prices have fallen in…
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…
Cross collateralisation is when a lender uses more than one of your properties as security for a single loan, or links multiple loans across several properties under one security pool. In other words, your properties are tied together and the bank has a claim over more than one asset for the debt you owe. In…
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…
Recent industry and consumer studies show: A growing share of property investors are using brokers as part of their advice team, alongside accountants and financial planners. Across the broader market, brokers now facilitate around 80% of new home loans and a similar share of refinances, according to broking industry and media reports. Australians are increasingly…
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…