As of the middle of this year, the average interest rate for new home loans was 3.51%. The average interest rate for established home loans was 3.99%.

This sums up what the loyalty tax is all about. Basically, lenders reserve their most competitive offers for new customers.

Taking out a new home loan

If you’re taking out a home loan, the loyalty tax works in your favour. It means you’ll have a better shot at securing a competitive offer – and an even better shot if you speak to us first.

It also means that your new home loan definitely isn’t something you want to set and forget. Instead, we suggest you:

• Track what the RBA does with cash rates each month
• Monitor whether your bank passes these changes on to you
• Speak to us as soon as your circumstances change
• Ask us about repricing or refinancing your loan

If you already have a home loan

Refinancing seems to be on everyone’s radar, and while there are certainly advantages to refinancing, it’s something you want to do with a trusted professional in your corner.

When deciding whether refinancing is in your best interests, we’ll help you determine:

• Strategy: Does the loan you’re switching to support your overarching property strategy?
• Fees: Will the exit fees, valuation costs, and application fees be outweighed by the gains you make from switching?
• Protecting your credit score: Will this application negatively impact your credit history?

To reprice or refinance?

Did you know that getting a better deal on your existing home loan doesn’t always mean switching lenders?

Sometimes, it’s simply a matter of us negotiating a better offer with your existing bank – otherwise known as repricing.

Speak to us

There are so many variables to consider, and lots of moving parts, which is why we work with our clients for the life of their loans to make sure they don’t fall victim to the loyalty tax.

Get in touch to understand your options.

If you’re a homeowner, it’s important not to set and forget on your home loan. After all, what suited your situation a year or so ago may not necessarily suit you today.

With interest rates going up and a constantly changing market, it’s a good idea to regularly review your home loan to ensure you’ve got one that serves your best interests.

Here are our tips on what to consider:

Keep track of interest rates

Lenders regularly update their interest rates. If you’re on a variable home loan, your current rate will constantly change. By staying up to date with the rates on offer in the market, you’ll know if you’re paying too much – and you’ll have leverage to negotiate with your lender. Which brings us to our next tip…

Negotiate with your lender

You may not think you can get a better rate from your existing lender or have them price match with another lender. The good news is that it is possible. If you find a lower interest rate with a different lender, or your existing lender offers new customers a cheaper rate for the same product, it’s worth speaking with them. They may offer a better deal to keep your business.

Switch to a different lender

You aren’t bound to your lender, so if you’re not happy with their offering, you can seek a more suitable solution with another lender. Refinancing or switching your mortgage to another lender may help you achieve your property goals. You do, however, want to make sure you factor in any break costs.

Speak to us!

As mortgage brokers, we keep our fingers on the pulse when it comes to home loans. We take the guesswork and hassle out of comparing lenders and will negotiate with them on your behalf. We’ll also manage the refinancing process for you.

Book an appointment with our team, and we can help you understand your options.

Have rising interest rates got you thinking about refinancing? You’re not alone.

According to PEXA’s Refinance Index, the number of homeowners switching lenders has surged across the country, with refinancing volumes increasing by 21.5% over May.

Head of Research at PEXA, Mike Gill, has said that property owners have been feeling the crunch of higher living costs due to inflation and rising interest rates. This has motivated many to review their home loan and look for a better deal.

Is refinancing right for you?

If you’ve had your loan for more than 12 months or your financial situation has changed, it may be worth considering refinancing.

Your decision will ultimately depend on your personal situation, but common reasons for refinancing include:

• Securing a lower interest rate on your loan.
• Accessing features such as an offset account or redraw facilities.
• Accessing equity in your home to renovate, invest or travel.
• Consolidating your debts, such as a personal loan or car loan, with your mortgage to make your finances more manageable.

What to consider

You need to weigh up the pros and cons to make sure refinancing is the right move for you.

One of the key factors is any upfront or ongoing cost associated with ending your current loan and switching to a new product. For example, if you’re on a fixed rate mortgage and decide to leave early, you may be charged a discharge fee and a break fee, which can be costly.

How to refinance

Refinancing is like applying for a home loan, as you’ll need to provide all your information and supporting documents to a lender. It can take four to six weeks to process and finalise a refinance application.

If you’re considering refinancing, make an appointment with our team. We can advise on what’s going to serve your best interests, and help find you a competitive home loan. We will also take care of the refinancing process on your behalf.

Saving for a deposit is the biggest hurdle for first home buyers. According to a recent ANZ CoreLogic report, it takes 11.4 years to save a 20% deposit in Australia.

While the outlook may appear grim, buying your first home or investment property isn’t out of reach. Here are our tips for reaching your goal sooner.

Set a savings goal

A savings goal will give you a target to work towards. A common goal is 20% of the purchase price, which avoids lender’s mortgage insurance. To work out your target amount, you’ll need to know how much you can borrow. You can get an estimate by using our borrowing calculator.

Work out how much you can save each month

You’ll need to work out how much you can afford to save each month to reach your goal. Our savings calculator help you. Remember to be realistic with your budget and timeframes to avoid stretching yourself.

Get rid of your debt

If you have ongoing debts, such as personal loans, car loans or credit cards, focus on paying these off as soon as possible. Consider consolidating your loans into one to make them manageable. Avoid increasing debt by removing credit cards.

Look for ways to cut back on spending

Look at your bank transactions from the last three months and look at expenses to cut or reduce. These include memberships or services that you no longer use or need. Consider changing your spending habits, such as eating out less.

Open a high interest savings account

Set up a separate account for your savings and choose one with a high interest rate and no monthly fees. Transfer money into your saving account as soon as you get paid or set up automatic transfers.

Reduce your accommodation expenses

Saving for a deposit and renting can make it hard to achieve your goal. If it’s possible, think about moving back home with your parents, or moving to a share house.

The process of saving for a first home can seem overwhelming. We can help you by looking at your situation and goals and creating a savings plan to get onto the property ladder. Call our team today.

If you’re a home buyer, you probably think your main cost is the price of a home. But did you know there are hidden expenses related to buying a property? Here are six common costs to factor into your budget.

1.    Conveyancing and solicitor fees

A conveyancer or solicitor takes care of the legal paperwork involved in buying a home, such as reviewing a contract, carrying out land searches and lodging documents. Their fees can range from $500 to $2000.

2.    Stamp duty

Stamp duty is a tax charged by state and territory governments on a property transaction. The cost depends on factors such as location, price and if you’re buying as an investor or owner-occupier. First home buyers can receive a stamp duty concession depending on the state and territory they buy in.

3.    Pest and building inspections

Pest and building inspections are optional but recommended for peace of mind that a property has no underlying issues. A combined pest and building inspection can range from $300 for a small home to $1000 for a large home in metropolitan areas.

4.    Loan application or establishment fees

Lenders charge a one-off fee for setting up a home loan. Application fees vary according to lenders, your mortgage product and loan amount. Some lenders may waive the fee under special circumstances such as a promotion.

5.    Lenders Mortgage Insurance

If you’re borrowing more than 20% of a purchase price, a lender will charge you Lenders Mortgage Insurance (LMI). LMI protects the lender from financial loss if a borrower can’t meet their home loan repayments. The amount depends on factors such as your deposit, your home loan amount and whether the property is an investment or owner-occupied. You can avoid paying LMI by saving a bigger deposit.

6.    Property valuations

While you may agree to a purchase price with a seller, a lender will still carry out a valuation of a property before giving you unconditional approval. They will use this valuation to assess if they’ll lend to you. A valuation can cost between $300 and $600, but some lenders may not charge for it.  

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If you need help understanding the various costs involved in buying a home, reach out to us today.

For the first time in over a decade, the Reserve Bank of Australia lifted the cash rate from 0.1% to 0.35%.

An interest rate rise will increase the cost of home loan repayments, forcing homeowners to spend more on their mortgages.

With economists predicting more rate rises on the way, here are five ways to protect yourself to make sure you can live with your home loan.

1.    Refinance your home loan

If you’ve had your loan for a few years, chances are it may no longer suit your current needs, and you may be paying more than you should. By refinancing, you can switch to a mortgage with a lower interest rate and features that you can leverage to your advantage.

2.    Fix the interest rate

Fixing your mortgage lets you lock in a rate for a period of time – generally one to five years. During the fixed period, your repayments will stay the same, which gives you peace of mind that your repayments won’t change if rates increase. However, your ability to make extra repayments may be limited, and there are break fees for ending before the end of the fixed period.

3.    Make extra repayments

If you’re in a good financial position, consider making extra repayments on top of your loan. Even a small amount like $200 a month can make a big difference. Extra repayments help reduce your loan amount and the amount of interest charged on it. They also act as a buffer for any financial emergencies like sickness or loss of a job.

4.    Reduce spending and debts

Take time to review your budget and find ways to cut back on spending. If you have any ongoing debts, focus on paying them off. A helpful tip is to pay more than the monthly minimum amount and consolidate multiple debts into one to make them more manageable.

5.    Speak to an expert (us!)

Make an appointment to speak to us to review your home loan and advise if refinancing is right for you.

Give our team a call, and we can walk you through the steps to be prepared for an interest rate rise.

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More Aussie home buyers are turning to mortgage brokers to help them break into the competitive property market.

According to the Mortgage & Finance Association of Australia, two in three home loans are written by mortgage brokers. This is up 12% from two years ago, and shows that people see the value in what we as mortgage brokers have to offer.

Here are five reasons why coming to see us – instead of heading to your bank – is a smart choice:

1.    We are home loan experts

We make it our business to know the ins and outs of home loans and to stay up-to-date with the latest and greatest. We’ll help you understand how different loans work and advise what may suit your needs.

2.    We compare products from a range of lenders

We have access to home loan products from a wide range of Australian lenders. This gives you more choice and saves you time and effort – no more having to trawl multiple bank websites to compare products!

3.    We find the right loan for your needs

Finding the right home loan is more than simply picking the one with the lowest rate. You also need the right features that will support your longer-term property strategy. We take the time to understand your financial situation and needs so that we can provide you with a tailored solution.

4.    We do the legwork

Applying for a mortgage can be daunting, especially if it’s your first time. But that’s where we come in! We manage the home loan process from application to settlement, and will guide you through every step to make the process as smooth as possible.

5.    We work in your best interests

We’re legally bound to provide recommendations that are in your best interests. The banks, unfortunately, can’t provide this same assurance.
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Our team of expert brokers can help you with your home loan needs. Make an appointment to speak to us today.

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The average home loan term in Australia is 30 years, but did you know there are ways to pay it off sooner? Here are some strategies people sometimes use to get ahead on their home loan. Of course, what suits your unique situation depends on a lot of variables – so it’s worth getting in touch for tailored guidance.

1.    Switch to fortnightly repayments

If you’re currently repaying your mortgage monthly, consider switching to a fortnightly plan. You’ll end up paying an extra month’s repayment as there are 26 fortnights in a year. Let’s say your monthly repayments are $2000. In a year, you’d repay $24,000. But if you paid fortnightly, you’d repay $26,000.

2.    Pay extra on top of your repayments

Every extra dollar you put towards your mortgage will make a significant difference over time. The reason is that extra repayments help reduce the monthly interest. Whether it’s a tax refund, a work bonus, or a gift, make a habit of putting additional money into your home loan.

3.    Open an offset account

An offset account is an everyday account linked to your home loan. The balance is offset against the amount owing on your home loan, so you pay less interest. The benefit is the convenience of accessing your money at any time.

4.    Consider a redraw facility

A redraw facility lets you make extra repayments on your home loan, which reduces the interest you pay. The benefit is that you can use the money in your redraw if you have an unexpected expense.

5.    Refinance to a mortgage with a lower rate

If it’s been more than a year since you reviewed your home loan, consider refinancing. Interest rates remain at record lows and the market is competitive. Simply switching to a loan with a sharper rate may help you get ahead.

The key to paying off your mortgage sooner is to ensure you have the right structure in place. We can review your loan and find a product that best suits your needs. Call us today.

Did you know ‘mortgage’ is actually an old French word that translates to ‘death pledge’? The good news is that in 2022, taking out a home loan doesn’t have to be a life sentence.

If you’ve already got a home loan, there are a couple of things you can do to pay your loan down faster and potentially be mortgage-free sooner.

Make extra repayments

This one seems obvious, but you’d be surprised at what a difference a few extra hundred dollars a month makes to the life of your loan – thanks to the ‘magic’ of compound interest. So if you’re in a position to make additional repayments, you could shave years off your loan and be debt-free sooner. Ask us for guidance on this one and we’ll crunch the numbers for you.
 

Renegotiate your interest rate

Renegotiating your interest rate with your lender – while keeping your repayments steady – is one way to pay off your loan sooner. Keeping an eye on what’s happening in the market is a good way to be prepared to ask your lender for a better deal. For example, you can ask for a rate reduction every six to twelve months if you have a variable interest rate. You may also be able to negotiate a rate reduction even if you’ve only recently taken out a home loan, say, within the last six months. We are expert negotiators and can play hardball with the bank on your behalf.
 

Find a better loan option

Does your home loan still suit your needs? Are you making the most of the benefits, or are you being hit with too many fees for features you’re not even using? Life can change in the blink of an eye, so it may be worth reviewing your current situation and researching a better loan option. Getting a good deal can help you pay off your mortgage sooner and save more money. 
 

Need help?

Whether we renegotiate your interest rate with your lender or find you a better option elsewhere – you could save significantly. Get in touch with us to review your loan and help you get a better deal.

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When you take out a mortgage, you will choose a variable, fixed or split interest rate. We’ll look at the pros and cons of a variable rate home loan.

A variable home loan is a loan in which the interest rate varies over time. It can go up or down depending on the market and the Reserve Bank of Australia’s official cash rate.

The advantages of a variable rate home loan include:

• Flexible loan features – Home loans with a variable rate often come with features such as an offset account or redraw facility. These offer flexibility around your repayments, such as paying extra to reduce the loan amount.
• Interest rate cuts ­– If your interest rate drops, your repayments will go down, so you’ll pay less.
• Ease of switching loans ­– Want to refinance to get better a deal? You can do this easily if you have a variable home loan. Because you’re not locked into a contract, you can switch loans or lenders without paying a break fee.

The disadvantages of a variable rate home loan include:

• Interest rate rises – If your interest rate goes up, your mortgage repayments will increase. It can mean paying more than you expected.  
• Budgeting challenges – Your monthly repayments may change at any time, which can make budgeting or planning for expenses challenging.  

When deciding if a variable rate mortgage is right for you, consider your financial situation and personal behaviour and lifestyle.

You might prefer a fixed rate mortgage if you want certainty over your monthly repayments. However, a variable rate home loan may be best if you want to make extra repayments without any restrictions or caps.

In some ways, you can access the best of both worlds with a split loan. This lets you lock in a fixed rate on a portion of our loan for a period – typically between one and five years – while the remainder has a variable rate.

Our team can help you decide if a variable home loan is right for you. We’ll also help you find a mortgage with competitive charges and fees, and flexible features, if that’s what you’re seeking. Get in touch with us today to understand your options.