As of the middle of this year, the average interest rate for new home loans was 3.51%. The average interest rate for established home loans was 3.99%.

This sums up what the loyalty tax is all about. Basically, lenders reserve their most competitive offers for new customers.

Taking out a new home loan

If you're taking out a home loan, the loyalty tax works in your favour. It means you'll have a better shot at securing a competitive offer – and an even better shot if you speak to us first.

It also means that your new home loan definitely isn't something you want to set and forget. Instead, we suggest you:

• Track what the RBA does with cash rates each month
• Monitor whether your bank passes these changes on to you
• Speak to us as soon as your circumstances change
• Ask us about repricing or refinancing your loan

If you already have a home loan

Refinancing seems to be on everyone's radar, and while there are certainly advantages to refinancing, it's something you want to do with a trusted professional in your corner.

When deciding whether refinancing is in your best interests, we'll help you determine:

• Strategy: Does the loan you're switching to support your overarching property strategy?
• Fees: Will the exit fees, valuation costs, and application fees be outweighed by the gains you make from switching?
• Protecting your credit score: Will this application negatively impact your credit history?

To reprice or refinance?

Did you know that getting a better deal on your existing home loan doesn't always mean switching lenders?

Sometimes, it's simply a matter of us negotiating a better offer with your existing bank - otherwise known as repricing.

Speak to us

There are so many variables to consider, and lots of moving parts, which is why we work with our clients for the life of their loans to make sure they don't fall victim to the loyalty tax.

Get in touch to understand your options.

If you’re a homeowner, it’s important not to set and forget on your home loan. After all, what suited your situation a year or so ago may not necessarily suit you today.

With interest rates going up and a constantly changing market, it’s a good idea to regularly review your home loan to ensure you’ve got one that serves your best interests.

Here are our tips on what to consider:

Keep track of interest rates

Lenders regularly update their interest rates. If you’re on a variable home loan, your current rate will constantly change. By staying up to date with the rates on offer in the market, you’ll know if you’re paying too much – and you’ll have leverage to negotiate with your lender. Which brings us to our next tip...
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Negotiate with your lender

You may not think you can get a better rate from your existing lender or have them price match with another lender. The good news is that it is possible. If you find a lower interest rate with a different lender, or your existing lender offers new customers a cheaper rate for the same product, it's worth speaking with them. They may offer a better deal to keep your business.

Switch to a different lender

You aren’t bound to your lender, so if you’re not happy with their offering, you can seek a more suitable solution with another lender. Refinancing or switching your mortgage to another lender may help you achieve your property goals. You do, however, want to make sure you factor in any break costs.

Speak to us!

As mortgage brokers, we keep our fingers on the pulse when it comes to home loans. We take the guesswork and hassle out of comparing lenders and will negotiate with them on your behalf. We’ll also manage the refinancing process for you.

Book an appointment with our team, and we can help you understand your options.

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Get in touch to find out how we can help. We’d love to hear from you.

For the first time in over a decade, the Reserve Bank of Australia lifted the cash rate from 0.1% to 0.35%.

An interest rate rise will increase the cost of home loan repayments, forcing homeowners to spend more on their mortgages.

With economists predicting more rate rises on the way, here are five ways to protect yourself to make sure you can live with your home loan.

1.    Refinance your home loan

If you’ve had your loan for a few years, chances are it may no longer suit your current needs, and you may be paying more than you should. By refinancing, you can switch to a mortgage with a lower interest rate and features that you can leverage to your advantage.

2.    Fix the interest rate

Fixing your mortgage lets you lock in a rate for a period of time – generally one to five years. During the fixed period, your repayments will stay the same, which gives you peace of mind that your repayments won’t change if rates increase. However, your ability to make extra repayments may be limited, and there are break fees for ending before the end of the fixed period.

3.    Make extra repayments

If you’re in a good financial position, consider making extra repayments on top of your loan. Even a small amount like $200 a month can make a big difference. Extra repayments help reduce your loan amount and the amount of interest charged on it. They also act as a buffer for any financial emergencies like sickness or loss of a job.

4.    Reduce spending and debts

Take time to review your budget and find ways to cut back on spending. If you have any ongoing debts, focus on paying them off. A helpful tip is to pay more than the monthly minimum amount and consolidate multiple debts into one to make them more manageable.

5.    Speak to an expert (us!)

Make an appointment to speak to us to review your home loan and advise if refinancing is right for you.

Give our team a call, and we can walk you through the steps to be prepared for an interest rate rise.

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The average home loan term in Australia is 30 years, but did you know there are ways to pay it off sooner? Here are some strategies people sometimes use to get ahead on their home loan. Of course, what suits your unique situation depends on a lot of variables - so it's worth getting in touch for tailored guidance.

Switch to fortnightly repayments

If you’re currently repaying your mortgage monthly, consider switching to a fortnightly plan. You’ll end up paying an extra month’s repayment as there are 26 fortnights in a year. Let’s say your monthly repayments are $2000. In a year, you’d repay $24,000. But if you paid fortnightly, you’d repay $26,000.

Pay extra on top of your repayments

Every extra dollar you put towards your mortgage will make a significant difference over time. The reason is that extra repayments help reduce the monthly interest. Whether it’s a tax refund, a work bonus, or a gift, make a habit of putting additional money into your home loan.

Open an offset account

An offset account is an everyday account linked to your home loan. The balance is offset against the amount owing on your home loan, so you pay less interest. The benefit is the convenience of accessing your money at any time.

Consider a redraw facility

A redraw facility lets you make extra repayments on your home loan, which reduces the interest you pay. The benefit is that you can use the money in your redraw if you have an unexpected expense.

Refinance to a mortgage with a lower rate

If it’s been more than a year since you reviewed your home loan, consider refinancing. Interest rates remain at record lows and the market is competitive. Simply switching to a loan with a sharper rate may help you get ahead.

The key to paying off your mortgage sooner is to ensure you have the right structure in place. We can review your loan and find a product that best suits your needs. Call us today.

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More Aussie home buyers are turning to mortgage brokers to help them break into the competitive property market.

According to the Mortgage & Finance Association of Australia, two in three home loans are written by mortgage brokers. This is up 12% from two years ago, and shows that people see the value in what we as mortgage brokers have to offer.

Here are five reasons why coming to see us – instead of heading to your bank – is a smart choice:

1.    We are home loan experts

We make it our business to know the ins and outs of home loans and to stay up-to-date with the latest and greatest. We’ll help you understand how different loans work and advise what may suit your needs.

2.    We compare products from a range of lenders

We have access to home loan products from a wide range of Australian lenders. This gives you more choice and saves you time and effort – no more having to trawl multiple bank websites to compare products!

3.    We find the right loan for your needs

Finding the right home loan is more than simply picking the one with the lowest rate. You also need the right features that will support your longer-term property strategy. We take the time to understand your financial situation and needs so that we can provide you with a tailored solution.

4.    We do the legwork

Applying for a mortgage can be daunting, especially if it’s your first time. But that’s where we come in! We manage the home loan process from application to settlement, and will guide you through every step to make the process as smooth as possible.

5.    We work in your best interests

We're legally bound to provide recommendations that are in your best interests. The banks, unfortunately, can't provide this same assurance.
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Our team of expert brokers can help you with your home loan needs. Make an appointment to speak to us today.

More Aussie home buyers are turning to mortgage brokers to help them break into the competitive market.

According to the Mortgage & Finance Association of Australia, two in three home loans were written by mortgage brokers in the September 2021 quarter. This was up 12% from two years ago.   

The statistic shows that customers see the value in what we as mortgage brokers have to offer, and here are five reasons why.  

1.    We are home loan experts

We know the ins and outs of home loans. We’ll help you understand how different loans work and advise what may be best for you.

2.    We compare from a range of lenders

We’re not limited to one lender as we have access to a wide range of home loans from different lenders. This gives you more choice and saves you time and effort in shopping around for the right product.   

3.    We find the right loan for your needs 

Finding the right home loan is more than picking the one with the lowest rate. You also need the right features to help you pay off your loan faster and save money. We take time to understand your financial situation and needs so that we can find the right loan for you.  

4.    We do the legwork

Applying for a mortgage can be daunting, especially if it’s your first time. But that’s where we come in as we manage the home loan process from application to settlement. We will guide you through every step and ensure that it’s as smooth as possible.   

5.    We don’t charge for our services

Our service and advice are free because we’re paid a commission from a lender.

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Our team of expert brokers can help you with your home loan needs. Make an appointment to speak to us today.    

If you’re applying for a home loan, you want to make sure lenders have no reason not to give you the green light. Here are five ways to improve your chances of home loan approval.

1.    Have a stable income

Lenders want to see that you have a stable income to give them confidence you'll be able to afford to repay your loan.

You should be mindful that changing jobs may impact your application. It’s ideal to be in a full-time job for a minimum of six months to improve your chances. This really depends on the lender though, so get in touch to understand how this applies to your situation.

2.    Lower your debts

Any personal debts will limit your borrowing capacity, so you should consider paying them off or reducing them.

Lenders also look at your access to money. If you have a credit card with a limit of $10,000, a lender will factor this full amount when working out how much you can borrow – even if you only owe $100.

3.    Prove that you are a good saver 

Lenders will examine your expenses as part of your application. Even if you receive a financial boost for your deposit, you'll still need to prove to lenders that you are a diligent saver and manage your money well.

In the three to six months before you apply, you may want to cut back on discretionary spending such as eating out, Uber Eats and excess online shopping. Put aside an amount every month to show a lender you have a history of regular saving.  

If you’ve been paying your rent on time, you can use this as evidence of genuine savings.

4.    Use a guarantor

Having a family member go guarantor on your loan can increase your chances of a home loan approval.

A guarantor uses the equity in their property as security for your loan. However, it means that if you can’t pay off your loan, your guarantor will become responsible for the debt.

5.    Apply with the right lender

Every lender has its own criteria for assessing your mortgage application. It’s a good idea to engage us to do the research into which lenders will view your application favourably.

A final note

If you feel you can't tick all these boxes, never fear. We can help you put together a compelling application that shows the lender you'll be a good borrower.

If you’re looking for a home loan, get in touch with us today. We’ll help you put your best foot forward to your preferred lender.

When you take out a mortgage, you will choose a variable, fixed or split interest rate. We’ll look at the pros and cons of a variable rate home loan.

A variable home loan is a loan in which the interest rate varies over time. It can go up or down depending on the market and the Reserve Bank of Australia’s official cash rate.

The advantages of a variable rate home loan include:

• Flexible loan features – Home loans with a variable rate often come with features such as an offset account or redraw facility. These offer flexibility around your repayments, such as paying extra to reduce the loan amount.
• Interest rate cuts ­– If your interest rate drops, your repayments will go down, so you’ll pay less.
• Ease of switching loans ­– Want to refinance to get better a deal? You can do this easily if you have a variable home loan. Because you’re not locked into a contract, you can switch loans or lenders without paying a break fee.

The disadvantages of a variable rate home loan include:

• Interest rate rises – If your interest rate goes up, your mortgage repayments will increase. It can mean paying more than you expected.  
• Budgeting challenges – Your monthly repayments may change at any time, which can make budgeting or planning for expenses challenging.  

When deciding if a variable rate mortgage is right for you, consider your financial situation and personal behaviour and lifestyle.

You might prefer a fixed rate mortgage if you want certainty over your monthly repayments. However, a variable rate home loan may be best if you want to make extra repayments without any restrictions or caps.

In some ways, you can access the best of both worlds with a split loan. This lets you lock in a fixed rate on a portion of our loan for a period - typically between one and five years - while the remainder has a variable rate.

Our team can help you decide if a variable home loan is right for you. We’ll also help you find a mortgage with competitive charges and fees, and flexible features, if that's what you're seeking. Get in touch with us today to understand your options.