Articles Archives - Page 5 of 33 - MO'R MORTGAGE OPTIONS

How to buy your first home without a large deposit

We get it. There's nothing easy about saving for your first house deposit. Especially when you're renting, paying off a HELP debt and trying to cover the increased costs of living. But you just really want to buy your own home. The more cash you have saved, the more options you'll have when it comes to buying your first home. However, there are a few ways you could buy property now - even without a large deposit. We outline these options below. Pay Lenders Mortgage … [Read more...]

Under-the-radar rate hikes

You're not alone if you sighed in relief earlier this month, as the RBA announced the cash rate would remain on hold for the second consecutive month. This hasn't stopped some lenders from hiking their variable home loan rates anyway. These rate hikes - sometimes known as ‘out-of-cycle’ rate rises - easily fly under the radar. Especially when we've all been getting regular letters in the mail advising our interest rate (and repayment) is about to increase again. Out of interest, how many … [Read more...]

What’s stopping you from exploring your refinance options?

We’ve had 12 interest rate rises over the last 13 months. That’s 12 times your interest rate has increased on your home loan. And 12 times your monthly loan repayment has increased. (Actually, if we’re being technically correct here, the number of times your repayment has increased is likely to be slightly less than 12, because the last few rounds of rate hikes may not yet be reflected in your minimum monthly repayment.) If you haven’t reached out for a home loan review lately, … [Read more...]

2023: Interest rates and the economy

Despite many experts weighing in on the debate as to where rates and the economy is headed, there’s still varying opinions as to how - and when – things will play out. Rather than adding to the noise on interest rates, we’re not going to add our own predictions here. Instead, we’re going to summarise the key thoughts and ideas being shared by leading economists, so you can get an idea of where things might be headed. What can we expect for the rest of 2023? Market commentators … [Read more...]

Which one should you choose – redraw or offset?

Both redraw facilities and 100% offset accounts can help to reduce the interest incurred on your loan, but they work in different ways. Let’s take a closer look to see which option might be appropriate for you. What is redraw and how does it work? A redraw facility allows you to make additional payments into your home loan, and then access these funds should you wish to take them out of the loan at some point later in the future. For example, just say you received inheritance 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 structure your finances 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') … [Read more...]

How can I use equity to purchase an investment property?

If you own property, it's likely you've already heard the term 'equity.' Here we outline what it is, how you calculate it and how it can help you with your next property purchase. What is equity? Equity is the difference between the market value of your home and the current balance of your home loan. Equity typically grows over time due to your property increasing in value and/or the balance of your home loan decreasing. How much of the equity in my home can I release? The … [Read more...]

Why can’t I borrow as much as I’d like to? (Ways to boost your borrowing capacity)

When lenders determine your borrowing capacity, there’s a few factors they take into consideration. We take a closer look at each of the factors here. It’s helpful to understand what factors might be limiting your borrowing capacity, should you wish to maximise it. Income When performing servicing calculations, a lender is simply trying to determine that at the end of the month - after your income has come in to your account and living costs/monthly commitments have come out – … [Read more...]

Does your pre-approval give you the buying coverage you think it does?

You know that conversation you had with your local bank? The one where you walked away from the appointment thinking you were pre-approved? Well, we’re sorry to be the bearer of bad news. But there’s a fair chance you’re not as covered as you think you are. Your pre-approval may not be a pre-approval after all If you haven’t provided recent payslips or supporting documents and/or you haven’t signed a loan application, there’s a very good chance you don’t actually have a … [Read more...]

What is a credit file and how can it impact my loan application?

What is a credit file/ report? A credit report is a statement that summaries your personal credit history and provides a snapshot of your current credit accounts. Lenders use your credit report as part of their decision to approve (or decline) your application for finance. What kind of information does my credit report contain? Your credit file shows all credit accounts held in your name over the last few years (for example - credit cards, later-payment accounts, personal loans, … [Read more...]