Five Reasons why NOW is a good time to chat with your mortgage broker.

Written By Shona Stephenson

1. It takes time to organise your finances.

2. The spring selling season is about to begin.

3. Have you reduced the lenders risk on your loan?

4. Changing Financial Circumstances.

5. Renovating your property

Bridging Finance, what is it? How does it work? Is it right for me?

Every lender has slightly different rules around this, but broadly, bridging finance is a short-term housing loan designed to provide immediate funding over a specific period, usually up to one year.  The loan is a temporary solution to "bridge" the gap between the need for funds and the availability of longer-term financing. Significantly, the servicing requirements differ, and the remaining (post 12 months debt) debt is the debt that is being assessed and not the entire loan.

Get Ready To Buy Your Dream Home; he is a helpful “5-Point Mortgage Approval Checklist,” written by a mortgage specialist.

The latest economic data indicates that Interest rates are anticipated to decrease as we approach the end of 2024, presenting a favourable opportunity for prospective homebuyers. The upcoming Spring and Summer seasons could be the ideal time to turn your homeownership dreams into reality. Now is the time to take proactive steps by engaging with your mortgage broker early to guarantee your readiness. By seeking clarity on essential matters and addressing any concerns promptly, you can establish a solid groundwork for a seamless home-buying experience.

2024 Australian Interest Rate Outlook.

I’m asked daily by my clients, “How high will Australian Interest rates go in 2024?” Or “When will interest rates drop?”

To answer the question, we have to consider many factors, including economic indicators, global trends, and the Reserve Bank of Australia's monetary policy media releases. The decision on interest rates is based on factors such as inflation, employment, and overall economic well-being. Considering the current global uncertainties, the Reserve Bank of Australia will likely adopt a cautious approach to maintain stability and encourage economic progress. Financial market observers eagerly await any signals or announcements that could reveal the path of Australian interest rates this year.

The first question most clients as is how much can I borrow?

As an Expat, the factors that affect the amount you can borrow can be different from those of an onshore borrower. The timing of purchase can significantly affect the amount you can borrow.

Today I’d like to focus on two key factors that are outside of your control but can directly affect borrowing capacity and, if timed well, can assist you with a purchase.

Interest rates - Interesting Times

Earlier in the year we wrote about the effect that interest rates has on the ability to borrow funds.

Effectively, as interest rates rise, the amount you can borrow reduces. Broadly, a 1% interest rate rise reduces your ability to borrow by 10% (of total debt), eg if you could borrow $1mil and rates rise 1%, then you can now only borrow $900,000.

I’m sure you have seen over the past few months that Central Banks globally have been increasing interest rates. As inflation rises, Reserve Banks use interest rates to try and control consumer spending and control inflation.

Interest Rate 2022 -2023 Outlook.

The 3rd May 2022 will it go down as a momentous day in the financial history of Australia. The weekend news was littered with the opinion of doom and gloom (relating to interest rate rises) and the effect of what interest rate rises will have on the economy.

What is the cost of obtaining a mortgage in Australia?

As we lead into another Federal Election, one of the significant political issues leading into the last Federal Election was the Royal Commission into the Banking, Superannuation, and Financial Services Industry, or as it became known as the Hayne Review.

Should I Fix my interest rate?

Back in Quarter 3 2021, the Reserve Bank of Australia (RBA)  announced that we could see an interest rate increase at some point in 2022, previously they had suggested no changes until 2024. Since then we still have not seen the Reserve Bank make any changes to interest rates, but we have seen banks increase their fixed rates, some three times during the last six months.

Do banks reward existing customers for their loyalty when applying for a new home loan?

To Fix or not to fix, that is the question. Let’s chat about whether to fix or not fix your interest rate.

APRA increases the serviceability buffer lenders use when assessing a loan.

On 6th October 2021 APRA (Australian Prudential Regulatory Authority) announced changes to the serviceability buffer banks are to use when assessing a new loan. The buffer is to increase from 2.5% to 3% from the 1st of November 2021.