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Canberra Housing Prices

It may seem as though every time you open a newspaper there's another story about the sky falling in on the property market. But what's actually happening?  We've all seen the news. Auction clearance rates are down, property prices are dipping, loans are becoming harder to source. Housing prices in Sydney and Melbourne have experienced the most significant drop, with Chris Richardson from Deloitte suggesting prices in these areas could be falling as, "much as $1,000 a week.” Richardson … [Read more...]

If you want your loan approved, here are five things to avoid

Due to the banking royal commission and increased lender regulations, it's no secret that lenders are cracking down on home loan applications. Applications that would have been approved in just a few days last year, are now being put under the microscope for much longer periods. To give yourself the best chance of having your loan approved, here's five things you want to avoid.   1. No proof of genuine savings Lenders use the term ‘genuine savings’ to describe funds you've saved … [Read more...]

What does “loan serviceability” mean? How is it calculated?

If you already have a home loan, or have started to think about getting one, you've probably heard the term "loan serviceability." Serviceability is one of the key things a lender will assess before they approve a loan, but what is it? And how is it calculated? Here's some insight into how loan serviceability is determined and why your choice of lender can dramatically impact your capacity to service a loan (and therefore secure the funds you need to buy the home you want). When a … [Read more...]

Buying a house? Here’s what you need to know about paying your deposit

So you've finally found the property of your dreams and you can't stand the thought of someone else moving in?! We know what that's like - we've been there too! BUT... don't rush to hand over your hard earned deposit, without understanding the timing of things. One of the most common questions we're asked is when and how to make the deposits on a new property. Whilst the process varies slightly from state-to-state and in private sales vs auctions, the following gives a general idea of … [Read more...]

What makes your debt tax deductible?

There are two kinds of debt in this world: the kind that is tax deductible and the kind that isn't. Knowing the difference, and how to plan your purchases accordingly, can significantly improve your cashflow, opportunities and overall financial position. So what makes debt tax deductible or not?   Non-tax deductible debt Let's start by clarifying that we're talking about whether the interest on a debt is tax deductible. A non-tax deductible debt (also known as 'bad debt') is … [Read more...]

Moving on up: you and interest rates

You would have seen over the last few weeks that lenders have started to raise their variable home loan rates. We spoke it about it here previously, suggesting that a rate rise was imminent. But now that it's happened, what can you do about it?   Find out what your lender is doing Usually when one of the big 4 banks makes a move, the rest will follow. That's because the first bank to move their rates generally gives the others cover. The first lender takes all the heat and the … [Read more...]

RBA Interest Rate Decision – September 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. Here are Phillip Lowe's comments with respect to the Australian housing market. Inflation is around 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower, at 1¾ per cent. Conditions in the … [Read more...]

Negotiating a Settlement Period

In a perfect world, you find the perfect home - complete with white picket fence - and settlement goes through on the agreed date with any dramas. So you don't end up with a truck full of moving boxes and no home to move into, here are a few things to consider when negotiating the settlement period on your next property purchase. When you buy property, there will be a 'settlement period'. It refers to the time that occurs between signing of the contract and completion of the sale i.e. … [Read more...]

Q&A Video: What’s the point of Reviewing your Home Loans?

What benefits can you expect from reviewing your home loans? (In addition to saving money, that is!) Watch our short video to find out. … [Read more...]

Can shopping with Afterpay affect your ability to buy a house?

Afterpay is the largest buy now, pay later scheme in Australia. In fact, Afterpay had more than $1.45 billion pass through its platform in the first three-quarters of last financial year. It boasts more than 1.8 million customers, who mostly use it for online shopping, and 14,000 retailers under its wing. The reason for Afterpay's rapid rise is its interest-free, instant purchase business model. To qualify, all a customer needs is a debit card, enough money for the first instalment … [Read more...]

RBA Interest Rate Decision – August 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. Here are Phillip Lowe's comments with respect to the Australian housing market. The latest inflation data were in line with the Bank's expectations. Over the past year, the CPI increased by 2.1 per cent, and in underlying terms, inflation was close to 2 per cent. The central forecast is for inflation to be higher in 2019 and 2020 than it is currently. In the interim, once-off declines in some … [Read more...]

It is time to switch to a fixed rate home loan?

Anyone thinking about locking into fixed rate loan will generally spend a little time considering the future movement of interest rates. Here we share some tools that can provide some insight into what interest rates are expected to do over the short-medium term.   Cash Rate Futures Yield Curve The Cash Rate Futures Yield Curve shows how the market expects  interest rates (or more specifically the RBA cash rate) to move over the short-medium term.  The curve does not 100% … [Read more...]

Is your home loan rate about to increase?

If you’ve owned a house for a few years, you’re probably familiar with the way things used to be with interest rates. The RBA would meet on the first Tuesday of each month to make a decision about the cash rate. The Board would announce their decision and homeowners would sit with baited breath, waiting to see how the lenders would react. Who would be the first lender to increase their rates this time around? If the cash rate fell, would the lenders pass on the rate cut in full? How … [Read more...]

RBA Interest Rate Decision – July 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. Here are Phillip Lowe's comments with respect to the Australian housing market. Inflation is low and is likely to remain so for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018.Nationwide measures of housing … [Read more...]

Why is a lender asking so many questions about my personal situation?

The lender is asking for WHAT…. ? Long gone are the days where you give the lender a Group Certificate, sign a declaration to say you can afford the loan and walk out with half a million dollars. With the amount of documentation you need to provide to a lender these days, you’d be forgiven for thinking there’s a crime investigation happening and you’re the main suspect. Don’t worry too much though. We’re sitting right beside you and will share everything we know to help you walk away … [Read more...]

It’s time to stop hitting the snooze button on your Interest Only loans

Are you someone who delays the inevitable, pressing the snooze button just one more time to get an extra few minutes sleep in the morning? And then once you’re finally up, you’re against the clock to get out the door in time? You’re not the only one. Knowing your Interest Only (I/O) loans are set to expire soon and choosing NOT to review your strategy now, is a bit like hitting the snooze button. Perhaps you already know you should do something about it but like the comfort of making … [Read more...]

RBA Interest Rate Decision – June 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. Here are Phillip Lowe's comments with respect to the Australian housing market. Inflation is low and is likely to remain so for some time, reflecting low growth in labour costs and strong competition in retailing. A gradual pick-up in inflation is, however, expected as the economy strengthens. The central forecast is for CPI inflation to be a bit above 2 per cent in 2018. The Australian dollar … [Read more...]

2017/18 Canberra Property Report – Find it here

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What questions should I ask the Real Estate Agent?

You’ve been house hunting for what seems like months (because, well it HAS been months) and you’ve have finally found “the one.” It has the open plan kitchen you want, the separate living space for you to relax without being surrounded by kids toys and a lovely patch of lawn that you know won’t stay green once you move in. But, it ticks all the boxes and you want to take things further. To ensure you have the best chance of having your offer accepted by the vendor, here are a few questions … [Read more...]

RBA Interest Rate Decision – May 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. Here are Phillip Lowe's comments with respect to the Australian housing market. The housing markets in Sydney and Melbourne have slowed. Nationwide measures of housing prices are little changed over the past six months, with prices having recorded falls in some areas. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of … [Read more...]

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