What is the FHLDS Scheme? Usually first home buyers are required to have saved up a 20% deposit or take out lenders mortgage insurance (LMI). The FHLDS scheme is a new scheme guaranteeing 10,000 low deposit home loans with the borrowers only requiring as little as a 5% deposit and without paying lenders mortgage insurance. This could save first home buyers $10,000- to $40,000 depending on deposit size, loan amounts etc. Are there any spots left? When the First Home Loan Deposit Scheme (FHLDS) released 10,000 spots – 5,000 were released to the NAB and CBA. These 5,000 spots filled up almost immediately. The remaining 5,000 spaces were released to 25 ‘non-major lenders.’ Whilst the NAB and CBA no longer have any available spots, there are still spots available with these 25 non-major lenders. Same opportunity, better rates and packages are on offer… in fact there is no negative except the name of the lender. What are the Conditions? The… Read More
Covid-19 Loan Repayments If you’re concerned about your loan repayments during this Covid-19 crisis, please reach out to your broker who can guide you through the process of obtaining some relief. We are here to assist you through this process including helping you complete the forms to apply. Relevant Links here for packages available: CommBank: https://www.commbank.com.au/latest/coronavirus.html… ANZ: https://www.anz.com.au/perso…/home-loans/your-loan/covid-19/ NAB: https://www.nab.com.au/…/c…/covid19-help/home-owners-support Westpac: https://www.westpac.com.au/help/disaster-relief/coronavirus/ St George: https://www.stgeorge.com.au/about/sustainability-and-community/disaster-relief/covid-19?pid=iac:br:COVID_2003::hpg_a Macquarie: https://www.macquarie.com/au/personal/forms/financial-hardship ING Direct: https://www.ing.com.au/help-and-support/tips-hints-guides/financial-hardship.html Suncorp: https://www.suncorp.com.au/banking/help-support/financial-difficulty.html AMP: https://www.amp.com.au/home-loans/financial-hardship Bankwest: https://www.bankwest.com.au/personal/guides/financial-hardship-assistance Other Financial Relief The Government announced new measures on 22 March 2020 to provide support to affected workers, businesses and the broader community. Financial support is available to help you manage the affects of the coronavirus. Watch out for scammers who try to take advantage of coronavirus (COVID-19). Scams can take many forms. Be wary of offers to assist you access your superannuation or high-return investment opportunities. The Government, Reserve Bank of Australia and the Australian Prudential Regulation Authority have taken coordinated action to support the flow of credit in the… Read More
How buying an investment property can save you money and provide an income. It might seem challenging enough to buy one investment property, so why would you buy two? Well, while it might seem counter-intuitive to increase your borrowing, buying an investment property can help you pay off your mortgage sooner. Of course, it will often depend on your income and how your loans are structured, but an investment property offers benefits that help you pay off your loans sooner. Tax benefits The ideal scenario for an investment property is that it is what we call “positively geared’. This means that you receive more rental income than you need to pay off the mortgage and other costs such as property management. However, it’s unusual to find a positively geared property. Most investment property costs aren’t covered by rental income. To make up the difference, you need to top up that income from your savings. And this is where the tax… Read More
The ABC of buying Australian property as an expat or non-resident When you’re not living in the country (expat) or you’re being paid in a currency other than Australian dollars, it can prove slightly more challenging to buy property in Australia. Living abroad or being a temporary resident when purchasing property in Australia has a whole host of challenges, none of which are insurmountable. The trick is to know of them in advance to help you with your planning and to ensure that you have the right people on your team to make it happen. Follow our guidance to make sure you secure your loan. Top tips for expats buying property in Australia a. Get your paperwork in order This tip isn’t only for expats or non-residents; it’s for anyone who intends to apply for a loan. Most lenders want to see at least three months’ worth of savings, payslips and credit card statements. However, to give yourself the best… Read More
Your first home might not be exactly what you want but you can make cosmetic changes until you decide on what you really want. Paint, new floor coverings, taps, cupboard doors and handles, regrouting, screens/room dividers and better lighting can all refresh your home. And remember that your mortgage broker can often increase your mortgage to fund some of these renovations. Top 5 tips for a budget home renovation 1. Do the big-impact stuff first Walls and floors occupy the greatest area so have the largest impact so they’re what you want to fix first. But before you do anything, if you’ve bought an older home, it could probably do with a good clean. So hire a pressure cleaner (or engage a company that does this) to clean the exterior including paintwork, bricks, roof and driveway. Walls Whatever article you read about budget renovations, you’ll see that ‘painting’ features in all of them. There’s a good reason; new paint doesn’t… Read More
The gift that keeps on giving: my new book. If you’re like most of us, you’re more optimistic than ever that you’ll be able to own your own home or buy an investment property. But where do you start? Well, to help you out, I wrote a book. Quite a long book. The reason it’s so big is I wanted to pack in as much information as I could about buying property in Australia. But, I hear you ask, aren’t there many other books on mortgages and borrowing? Yes, there are, but they tend to be aimed at those on six-figure salaries with standard 9 to 5 roles. Frankly, these people don’t need too much help, although they’ll definitely pick up some tips for paying down a mortgage sooner. There are so many potential home owners out there who fall outside the spectrum within which lenders are comfortable lending. My book covers these home loan or investment loan borrowers and… Read More
The Reserve Bank of Australia (RBA) has delivered its final cash rate announcement for the year with the decision to leave the rate unchanged at 0.75%. In making the decision the RBA appears to be assessing the impact on the broader economy of the three previous cash rate reductions together with recent tax cuts, government spending on infrastructure and signs of improvement in the resources sector. The RBA will be keeping a close eye on household consumption and the GDP numbers being released later this week as it stays focused on the aim of restoring inflation to within its target range of 2 – 3 %. From behalf of the MAP Team – we would like to wish everyone a Merry Chrsitmas and a Happy New Year!
Interest Rate Update Since the election this year there have been two interest rate changes, a new prime minister and the banks have lowered their assessment rates. August is the first month where things appear to have stabilised. This is true for todays RBA announcement with the RBA deciding to keep the cash rate on hold at the historical low of 1%. Many economists will tell you that a lower cash rate is a reflection of the lack of business confidence in our economy. So whilst those of us with Home Loans would like to see our minimum monthly reduce as much as possible, it can be a double edge sword. So to close on that, no changes this month (August) to the cash rate. A reminder that there are some amazing fixed rates on the market below 3% with some lenders already pricing in 1-2 more rate cuts. And anyone with a variable rate mortgage with P&I repayments should… Read More
On Tuesday, the Reserve Bank of Australia decided to decrease the Cash rate by 0.25% to 1.00% It was a surprise move according to many economists in the media, as there was a rate reduction in the previous month of June. Before the decrease in June, there were no rate changes for 18 meetings; this was a record. The last time this happened was in 1996 more than two decades ago when the RBA went for 17 meetings with no changes to the Cash rate. What does an interest rate decrease mean for home loan owners? If you are on a fixed rate, this does not affect your monthly repayment. For homeowners or investors with variable home loan rates, your bank will decide on how much of the 0.25% reduction they will pass on. Some banks have made announcements already, and some will have set dates to when they make a decision. If you are unsure, contact your bank or… Read More
Labor’s negative gearing policy was announced in February 2016. Whilst there has been much debate about the merits of negative gearing and whether negative gearing should be abolished, Labor’s decision to make substantial changes to negative gearing and capital gains tax discount has been controversial. But how does it impact Australian Expats? Craig Joslin, the founder of The Australian Expat Investor, explores the issue.