Our commentary on issues important to home owners, investors and borrowers
There are a few ways to structure your home loan repayments. Finding the best option may save you time and money on your mortgage. Here is some information to help you choose the repayment structure that works best for you.
Read MoreOn the 1st of July, the Australian Government made 10,000 new places available under the First Home Loan Deposit Scheme, the New Home Guarantee and the Family Home Guarantee, respectively.
This totals to 30,000 new scheme places released to support Australians buying a home. Under the First Home Loan Deposit Scheme and the New Home Guarantee, you can purchase a property with a deposit of as little as 5% without paying lenders mortgage insurance (LMI), which would be typically required for deposits under 20%.
The newly announced Family Home Guarantee lowers the deposit required to 2% without paying LMI for single parents with dependent children, regardless of whether or not you’re a first home buyer.
This is because the federal government guarantees the remaining value of a 20% deposit to the participating lender. There are over 30 participating lenders in the scheme through whom the scheme places are made available.
These spots are likely to be filled within a matter of months – so if you’re interested, it’s a good idea to reach out to your mortgage broker soon. But first, make sure that you meet the eligibility criteria below.
Read MoreRepublished from The Conversation.
In tax as in many endeavours, it’s easy to work out how things should be; harder to work out how to get there.
In NSW, Treasurer Dominic Perrottet wants to replace the one-off stamp duty on real estate transactions with an annual land tax.
In the long run, this one single reform could produce the biggest possible gains of any tax reform, state or federal.
Read MoreRepublished from The Conversation.
The budget plan to scrap Australia’s decade-old responsible lending obligations warrants detailed examination.
It is hard to see how the stated reasons for easing what’s asked of banks and other lenders make much sense, and the timing is strange.
Introduced in 2009, the responsible lending obligations made it illegal to offer credit that was unsuitable for a consumer based on their needs and capacity to make payments.
Read MoreAn increase in the size of your family can be the catalyst for upgrading your living circumstances. But what issues do you need to consider before you prepare your loan application?
Read MoreThe amount you can borrow and the amount you should borrow are sometimes two very different things. Before you apply for a home loan, it makes sense to realistically assess your financial situation. Here’s how to do it.
Read MoreLoanscape is your information resource about lending and property.
Loanscape has today released its Borrowing Capacity Index for Q3/2024. It shows that the borrowing capacities of Australian individuals and families have started to recover after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 37% higher than 2 years ago.
Loanscape has today released its Borrowing Capacity Index for Q2/2024. It shows that the borrowing capacities of Australian individuals and families have stabilised after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 35% higher than 2 years ago.
Combined dwelling values have re-accelerated across the nation in February, with all mainland capitals soaring in value. It probably comes as no surprise that Perth claimed the top spot by gaining a whopping 1.8% for the month
Loanscape has today released its Borrowing Capacity Index for Q1/2024. It shows that the borrowing capacities of Australian individuals and families continue to decline. The more modest decline in the size of average loans being taken confirms that lower income borrowers are being disproportionately impacted by interest rate hikes: the family income required to qualify for the average loan in Australia is now 32% higher than 18 months ago.
The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.
The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.
Loanscape has today released its Borrowing Capacity Index for Q4/2024. It confirms the forecast trend that borrowing capacities of Australian individuals and families are recovering from their low levels which coincided with the last of the recent increases to borrowing rates initiated by the Reserve Bank of Australia.