First home buyers Archives - Page 2 of 23

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...]

3 things you need to do now if you have a fixed rate loan

If you currently have a loan that’s fixed at a rate much lower than variable rates, you may be feeling quite comfortable with your position right now. As variable rates continue to rise around you, you’re happily sleeping at night knowing that for the next 6/12/24 months, your interest rate – and monthly repayment – will remain the same. However, now is not the time to be complacent. Because when your fixed rate loan term expires, you will need to be prepared – and able to pay for - quite a … [Read more...]

Increasing Interest Rates: What can you do about it?

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4 things you can do now to prepare for a property purchase

As the saying goes, ‘What goes up, generally comes down.” Given we’ve seen record growth in property prices over the last few years, it’s not inconceivable that we may see a flattening (or evening out) of property prices over the coming year. 1. Start your research now What are you looking for in a property? If it’s a home to live in, where do you want to live? What features are you looking for? What’s your list of non-negotiables? Being able to answer these questions should form … [Read more...]

Interest rates have increased, so why haven’t home loan repayments increased yet?

As we’ve posted about here and here, in response to the RBA increasing the cash rate over consecutive months, lenders have increased their borrowing rates. And as you would be acutely aware, this means interest costs on your home loan have increased, along with a jump in your home loan repayments. But if you’ve been keeping a close eye on your internet banking portal, you may have noticed that your actual repayment amount hasn't changed yet. You can see the interest rate has gone … [Read more...]

Basic vs Packaged. Fixed vs Variable. What loan should you get?

You're getting ready to lodge an application and looking into the different types of options available. But you're starting to feel a little overwhelmed. Basic vs package, variable rate vs fixed rate... what should you choose? What’s going to fit best with the way you like to manage your money? To assist with your research, here we outline the pros and cons of different loan types available. Basic Variable Rate Loan With a basic variable rate loan, you get simply that – a simple loan (with … [Read more...]

Lenders tighten lending ratios

Some of Australia’s biggest banks have tightened their lending ratios recently, by reducing the maximum amount they’ll lend to homeowners. But before you start worrying you'll never be able to buy a home, let's take a closer look to see whether this will actually impact you and your next purchase... You may have seen in the news over the last month that lenders have lowered the maximum debt-to-income (DTI) ratio. This ratio is a measure of how much debt a household is taking on, as a … [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...]

Variable or Fixed? Maybe there’s a third option… (and it’s not what you think)

With constant media chatter about interest rates rising, we’re having lots of discussions with clients about the decision to fix all (or part) of their borrowings. And just like with any other aspect of your mortgage, what's best for you is going to depend entirely on your personal circumstances. Below we outline a few things you may not have considered when weighing up the fixed vs variable decision. We also outline a strategy you may not have considered - the “quasi-fix.” So, … [Read more...]

Why does it cost so much (and take so long) to build right now?

If you’ve been house hunting for a while (and keep missing out on auctions), you may have thought about changing strategies and renovating and/or building a new home instead. And you’re not the only one! But perhaps after initial enquiries, it’s going to be more expensive than you first thought?! Or maybe you're well down the track of building, but things aren't quite happening as quickly as you want. Here we take a closer look at the increasing costs of building and why things are … [Read more...]