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Buy your first home: get started here

As a first home buyer, there is a lot of information for you to digest. You’re trying to work out whether your deposit is large enough to buy the house you want. You’re not sure which loan is going to be the right one for you. And you’re trying to get a sense of how auctions work, so when the time comes you can walk away with the winning bid.   To help make things a little easier for you, below you'll find the questions that many first home buyers come to us with. Just … [Read more...]

RBA Interest Rate Decision – 6 August 2019

  At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent.   After two months of consecutive rate cuts, the RBA Board has left the cash rate unchanged, as it waits to see the economic impact of previous rate cuts. Here are some of Philip Lowe's commentary surrounding the decision: Economic growth in Australia over the first half of this year has been lower than earlier expected, with household consumption weighed down by a protracted period of … [Read more...]

July 2019: Housing Affordability at an all time high

What is 'Housing Affordability'? Housing affordability refers to the relationship between expenditure on housing and household income. And according to the Housing Industry Association (HIA) Affordability Index, right now housing affordability is the best it’s been in 20 years. The HIA Affordability Index takes into account the latest dwelling prices, mortgage interest rates and wage developments. Which means that despite the fact that house prices have risen significantly faster than … [Read more...]

How have the lenders responded to the RBA July 19 cash rate cut?

Just when you thought you knew what interest rate you were paying on your loan, the goal posts have moved again! It’s good news though, with another round of rate cuts announced by the lenders. This is what we know so far… CBA rate changes (effective 16 July): - Rates on variable loans (OO and Investment) with P&I repayments will drop by 0.19. - Rates on variable loans (OO and Investment) with IO repayments will drop by 0.20 NAB rate changes (effective 12 July for existing … [Read more...]

RBA Interest Rate Decision – July 2019

    The RBA has cut the official cash rate by 25 basis points to a new record low of 1%.  So, why has the RBA cut the cash rate again, after cutting the cash rate to the previously historic low of 1.25% on June 4?    RBA Governer Phillip Lowe says this second rate cut was made to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. Lowe's additional comments below re-iterate those made by the RBA post the … [Read more...]

What is a ‘Family Guarantee Loan’ or ‘Limited Security Guarantee’ loan?

What is a Family Guarantee or Limited Security Guarantee Loan? A Family Guarantee Loan is where a family member - usually your parent(s) - use equity in their property to help you purchase your new home. A Family Guarantee Loan allows you to buy property - without needing a large cash deposit saved. In some cases, you don’t really need much in savings at all. A Family Guarantee Loan also allows you to avoid paying Lenders Mortgage Insurance,  because your total borrowings are less than … [Read more...]

First Home Buyer ACT Stamp Duty Concessions from 1 July 2019

As of 1 July, if you’re a first home owner purchasing in the ACT, the first home owners grant of 7K will no longer be available. However, the good news is that as a first home buyer with a household annual income of less than $160,000,* providing you satisfy eligibility criteria, you will not be required to pay any stamp duty (or ‘conveyance duty’ as it’s referred to by the ACT Government) on your purchase. Up until now, first home buyer stamp duty concessions have been offered on new … [Read more...]

Planning for your ‘Off-Plan’ purchase

Whether you're buying a property as your first home or purchasing an investment property, purchasing off-plan is a common way to achieve both these objectives. Over the years, we've assisted many clients purchase off-plan properties and have published posts about this buying strategy here and also here. However, due to changes in the lending environment - and some recent instances where clients have experienced difficulty obtaining finance for their off-plan purchase - we wanted to revisit … [Read more...]

RBA Interest Rate Decision – June 2019

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. Here are some extracts from Phillip Lowe's comments following the rate decision.  At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. The outlook for the global economy remains reasonable, … [Read more...]

Fixed Rate loan Break Costs

So, you’re thinking of refinancing to another lender to take advantage of some attractive interest rates you’ve seen around. The thing is, you have a fixed rate loan. And as a borrower with a fixed rate loan, you already know that your fixed rate loan essentially locks you into an agreed interest rate and specific repayment for a set period of time “the fixed term”.  And that if you refinance this fixed rate loan, it’s likely you’ll incur ‘break costs.’ So what exactly is a break … [Read more...]

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