mortgage

Many Australians have suddenly found themselves struggling to meet their mortgage repayments from a home loan that started with low interest rates. And the number of Australians in this situation is growing. Research by the University of NSW suggests the proportion of households in financial stress has surged to 42% this year, up sharply on the start of 2020, when less than a third of households were in financial stress. In addition, calculations by the fintech company, Digital Finance Analytics,…

Are you an Australian parent considering buying a home under your child’s name? This can be a smart way to plan for their future, secure financial stability, and even reduce tax burdens. In Australia, purchasing property in your child’s name is becoming more popular as parents look for ways to create generational wealth and prepare for rising property values. However, it’s essential to understand the Australian tax laws, potential capital gains implications, and legal requirements that come with this decision.…

Tired of paying rent to a lazy landlord and watching your friends become homeowners, you crunch the numbers and figure out you can get a home loan at an interest rate of 3.7% per annum. After sifting through the auction results and doing your sums you calculate that you’ll need a home loan of $400,000 to buy a desirable property with an acceptable commuting distance to work. You plug the numbers into the MoneySmart mortgage calculator and it tells you…

Buying a new home is undoubtedly one of the most exciting times in our lives. But, on the other hand, a mortgage application can be a stressful process as you dive into a world of unknowns. Let’s look at five factors that may negatively affect your chance of being approved for a home loan. 1. Lying on your application Lying about your financial situation is a big no-no in the eyes of any bank. For example, not disclosing childcare costs…

The Reserve Bank of Australia (RBA) and the major trading banks may play the most visible role in setting interest rates, but in many cases they are being reactive rather than proactive.  A wide range of external factors feed into their decision-making process, including in no small part, our collective behaviour as investors and savers, borrowers and consumers. Then there’s the rate of inflation and wages growth, foreign currency exchange, the economic health of our trading partners, and the interest…

Are you still feeling the effects from the pandemic through mortgage repayments? When the COVID-19 pandemic struck in 2020 and Australians everywhere were forced to stop work and stay at home, the big banks reached out to affected customers offering to suspend their loan repayments and provide some much-needed financial relief. Financial relief So great was the demand for this support, that at the height of the pandemic, the Australian Prudential Regulation Authority estimated one in ten of all home…

Once upon a time, banks would lend would-be home owners a sum of money based on repayments being less than 30% of the borrower’s gross income. As interest rates fell in the early 90s and competition from non-bank lenders flourished, home loan providers relaxed this rule and increased the flexibility of loans generally. Many Australians are now paying dearly for ignoring a rule which was initially put in place to protect us and are now confronting mortgage stress. How to…

Buying a property is one of the biggest investments many people will make in their lives. When it comes to securing a mortgage, many buyers may be so focused on the immediate steps ahead that they don’t consider having the right protections in place first. Understanding the different insurance options to protect your mortgage is an important part of protecting yourself and your loan if you’re unable to meet repayments. What are the different insurances that can protect a home…

Buying a home is likely one of the biggest financial decisions you’ll make in your life. While the process can be exciting, it can also be daunting, especially when it comes to financing your dream home. This is where the benefits of using mortgage broker comes in. What is the role of a mortgage broker? A mortgage broker is a professional who will liaise with banks and other lenders or financial institutions to organise your home loan. They will have access…