Thinking about refinancing your home loan?

Have rising interest rates got you thinking about refinancing? You’re not alone.

According to PEXA’s Refinance Index, the number of homeowners switching lenders has surged across the country, with refinancing volumes increasing by 21.5% over May.

Head of Research at PEXA, Mike Gill, has said that property owners have been feeling the crunch of higher living costs due to inflation and rising interest rates. This has motivated many to review their home loan and look for a better deal.

Is refinancing right for you?

If you’ve had your loan for more than 12 months or your financial situation has changed, it may be worth considering refinancing.

Your decision will ultimately depend on your personal situation, but common reasons for refinancing include:

What to consider

You need to weigh up the pros and cons to make sure refinancing is the right move for you.

One of the key factors is any upfront or ongoing cost associated with ending your current loan and switching to a new product. For example, if you’re on a fixed rate mortgage and decide to leave early, you may be charged a discharge fee and a break fee, which can be costly.

How to refinance

Refinancing is like applying for a home loan, as you’ll need to provide all your information and supporting documents to a lender. It can take four to six weeks to process and finalise a refinance application.

If you’re considering refinancing, make an appointment with our team. We can advise on what's going to serve your best interests, and help find you a competitive home loan. We will also take care of the refinancing process on your behalf.

---

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

How to boost your savings for a home deposit

Saving for a deposit is the biggest hurdle for first home buyers. According to a recent ANZ CoreLogic report, it takes 11.4 years to save a 20% deposit in Australia.

While the outlook may appear grim, buying your first home or investment property isn’t out of reach. Here are our tips for reaching your goal sooner.

Set a savings goal

A savings goal will give you a target to work towards. A common goal is 20% of the purchase price, which avoids lender’s mortgage insurance. To work out your target amount, you’ll need to know how much you can borrow. You can get an estimate by using our borrowing calculator.

Work out how much you can save each month

You’ll need to work out how much you can afford to save each month to reach your goal. Our savings calculator help you. Remember to be realistic with your budget and timeframes to avoid stretching yourself.

Get rid of your debt

If you have ongoing debts, such as personal loans, car loans or credit cards, focus on paying these off as soon as possible. Consider consolidating your loans into one to make them manageable. Avoid increasing debt by removing credit cards.

Look for ways to cut back on spending

Look at your bank transactions from the last three months and look at expenses to cut or reduce. These include memberships or services that you no longer use or need. Consider changing your spending habits, such as eating out less.

Open a high interest savings account

Set up a separate account for your savings and choose one with a high interest rate and no monthly fees. Transfer money into your saving account as soon as you get paid or set up automatic transfers.

Reduce your accommodation expenses

Saving for a deposit and renting can make it hard to achieve your goal. If it’s possible, think about moving back home with your parents, or moving to a share house.

The process of saving for a first home can seem overwhelming. We can help you by looking at your situation and goals and creating a savings plan to get onto the property ladder. Call our team today.

Get to know the key players in the property purchase

When you buy a home, there are several key players who will be a part of your property journey. In this article, we’ll introduce these people to you.

1.    Mortgage broker

** **
This is us! We'll likely be the first person you meet when buying a home. We'll ask you about your goals and financial situation, then research the thousands of options available and present you with solutions that support your best interests. We can also help you apply for a pre-approval, which will provide you with an idea of how much you can borrow and can give you a competitive edge when you get to the actual property transaction.

2.    Conveyancer or solicitor

A conveyancer or solicitor will take care of the legal processes involved in buying a home. These include reviewing the sale of contract, undertaking title searches, arranging pest and building inspections, and organising the transfer of a property to you.  

3.    Real estate agent

A real estate agent is the gatekeeper between you and your dream home. While they are paid to look after the seller, a good agent will negotiate a positive outcome for both parties. Take the time to speak to agents as they can provide helpful information about properties they are selling.

4.    Pest and building inspector

Before buying a property, it’s a good idea to arrange a pest and building inspection to protect yourself from costly problems down the track.  An inspector will check for issues such as termites, safety hazards and building defects.
 

5.    Buyer’s agent

A buyer’s agent – or buyer's advocate – searches for, evaluates, and negotiates the purchase of a property on a buyer’s behalf. They are useful if you are time-poor or want an expert to help you buy a home. A buyer’s agent will charge a fee, which varies between providers.

As your local mortgage broker, we can help you find the right home loan for your needs. We can also refer you to the other professionals mentioned above. Call us today to understand your options.

---

null

Best Aussie suburbs to find a “renovator’s dream”

Most of us have at one time dreamed of discovering a hidden little gem and renovating it into the most enviable house on the street. With the $25,000 HomeBuilder grant, those dreams are closer to becoming a reality for many. But where to look?

Well, recent realestate.com.au data might have revealed the answer.

They’ve analysed all the listings in their database for keywords such as “renovate”, “renovation” and “STCA” (subject to council approval), and then ranked each suburb on the percentage of properties containing those keywords.

So with the federal government’s HomeBuilder scheme providing eligible homeowners a $25,000 grant to substantially renovate their homes, the below suburbs could be a good starting point for your search.

The top five “renovator’s dream” suburbs in each state

QLD: Sadliers Crossing 4305 (58%), Petrie Terrace 4000 (53%), Newtown 4305 (50%), Herston 4006 (50%), Grange 4051 (47%).

NSW: Lethbridge Park 2770 (70%), North St Marys 2760 (67%), Hebersham 2770 (64%), Oakhurst 2761 (62%), Kandos 2848 (59%).

VIC: Frankston North 3200 (70%), Mount Dandenong 3767 (50%), Canterbury 3126 (47%), Ivanhoe East 3079 (45%), Doveton 3177 (44%).

WA: Glen Forrest 6071 (50%), Northcliffe 6262 (47%), North Lake 6163 (42%), Greenmount 6056 (41%), Greenwood 6024 (40%).

SA: Angaston 5353 (50%), Happy Valley 5159 (50%), Hawthorndene 5051 (42%), Aberfoyle Park 5159 (41%), Panorama 5041 (40%).

TAS: Battery Point 7004 (50%), Triabunna 7190 (46%), Moonah 7009 (46%), West Moonah 7009 (38%), Dynnyrne 7005 (36%).

ACT: Wanniassa 2903 (46%), Farrer 2607 (42%),  Evatt 2617 (40%), Curtin 2605 (37%), Mawson 2607 (32%).

NT: Driver NT 0830 (39%), Woodroffe 0830 (38%), Fannie Bay 0820 (33%), Rapid Creek 0810 (32%), Moulden 0830 (31%).

Keen to turn your reno dream into a reality?

Day-dreaming about renovating is one thing; financing it and actually making it happen is another. Fortunately, that’s where we can help out.

So if you’d like help obtaining finance to pay for that reno project you’ve got your eye on, get in touch with us today – we’re here to help make your reno dream a reality.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Best Aussie suburbs to find a “renovator’s dream” appeared first on RB Finance.

You might be closer to your first home deposit than you think

You’ve probably heard the federal government is giving $25,000 grants to eligible Australians looking to build or substantially renovate their homes. Today we’ll look at what that means for first home buyers when combined with state and territory schemes.

If you’ve been umming and ahhing about purchasing your first home for a while now, we have great news: you’d be hard-pressed to find a time when there were more government incentives to help you enter the property market.

For starters, there’s the federal government’s First Home Loan Deposit Scheme, which can help you buy your first home with a deposit of just 5% without having to pay lenders mortgage insurance (LMI) – so that’s one major cost out of the way.

But you’ll still need that 5% deposit, right?

Well, each state and territory (except ACT) has a first homeowner grant program, with most grants between $10,000 and $20,000.

On top of that, the federal government will give eligible Australians $25,000 to build or substantially renovate homes as part of the new HomeBuilder scheme (however, at this stage it’s still unclear whether or not this amount can go towards your initial deposit).

Last but certainly not least, most states and territories have stamp duty discounts or exemptions for first home buyers too, which can save you tens of thousands of dollars – another hurdle cleared!

Below, we’ll break down exactly what’s on offer in each state and territory and just how much these government initiatives could help put you within reach of a deposit on your first home.

QUEENSLAND

First homeowner grant: $15,000 on new homes valued at less than $750,000, plus the $5,000 Regional Home Building Boost Grant.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $500,000, partial concession on homes up to $550,000.

With HomeBuilder, you could have: up to $45,000 in government support + up to $15,925 in stamp duty concessions & $10,000 in LMI savings.

NEW SOUTH WALES

First homeowner grant: $10,000 for new homes valued up to $750,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $650,000, partial concession on homes between $650,000 and $800,000.

With HomeBuilder, you could have: up to $45,000 in government support + stamp duty exemption.

VICTORIA

First homeowner grant: $10,000 (urban) and $20,000 (regional) for new homes valued up to $750,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes up to $600,000, partial concession on homes between $600,001 and $750,000.

With HomeBuilder, you could have: between $45,000 and $55,000 in government support + stamp duty exemption.

WESTERN AUSTRALIA

First homeowner grant: $10,000 on new or substantially renovated homes valued at less than $750,000 south of the 26th parallel (latitude), or less than $1,000,000 north of the 26th parallel. WA also offers $20,000 grants for new homes built on vacant land or off-the-plan single-storey developments.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: exemption on homes valued at up to $430,000, partial concession on homes up to $530,000. An off-the-plan unit rebate is available for more expensive homes.

With HomeBuilder, you could have: up to $65,000 in government support + applicable stamp duty concessions.

SOUTH AUSTRALIA

First homeowner grant: $15,000 on new homes valued up to $575,000.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: full concession on off-the-plan new or substantially refurbished apartments up to $500,000.

With HomeBuilder, you could have: up to $50,000 in government support + stamp duty concession.

TASMANIA

First homeowner grant: $20,000 on new homes (reduced to $10,000 from 1 July 2020).

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: a 50% discount on stamp duty for established properties valued at $400,000 or less.

With HomeBuilder, you could have: up to $55,000 in government support.

AUSTRALIAN CAPITAL TERRITORY

First homeowner grant: none.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: first home buyers in the ACT pay no duty so long as their household income is below $160,00-$176,650, depending on how many dependents you have.

With HomeBuilder, you could have: up to $35,000 in government support + stamp duty exemption.

NORTHERN TERRITORY

First homeowner grant: $10,000 for new homes.

First Home Loan Deposit Scheme: LMI saving of up to $10,000.

Stamp duty: you can get up to $18,601 off your stamp duty costs.

With HomeBuilder, you could have: up to $45,000 in government support + up to $18,601 in stamp duty savings.

Get in touch

So, that covers the first home buyer schemes. If you think you might be eligible, the next thing to organise is financing your new home.

And that’s where we come in. Lenders will still want you to show some sort of genuine savings before they’ll approve a loan application, and we can help you get everything in order for that assessment process.

So if you’d like help obtaining finance to pay for the first home of your dreams, get in touch with us today – we’re here to help you any way we can.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post You might be closer to your first home deposit than you think appeared first on RB Finance.