The Reserve Bank of Australia (RBA) will be doing things different from January 2024 after the conclusion of an independent review that was commission by the Australian Government. The report had presented a number of changes and recommendations to better communicate to Australians. After each cash rate meeting held by the RBA board, the governor, currently Philip Lowe, will conduct a conference to the...
What is a construction loan? When buying a house and land package, its generally required to purchase it in a two-part contract. You essentially sign and pay for the house and the land separately, even though the purchase is combined. If you have purchased the land titled or off the plan, the next step is to settle the land purchase. Once owned, the builder will start to apply for build permits,...
Home loan activity update. According to the recent research conducted by the Australian Bureau of Statistics (ABS), Australians are continuing to borrow funds to purchase a home. The latest data from ABS shows that its reached a historical high. During November 2021, Australians proceeded with new loan commitments of $31.4 billion. This equates to an increase of 6.3% higher than the previous month and...
Australian Prudential Regulation Authority (APRA) is tightening lending criteria. Announcement made 5th October 2021, many will see this as either a good outcome or a bad change. Essentially borrowers will be assessed with the expectation that they can pay for the proposed loan if interest rates increased by 3%. This boosts the ‘buffer’ by 0.5% at the time of the statement. For example, a borrower...
Top tips before applying for a mortgage. Most people need some form of mortgage to purchase a property. In this market insight we outline some helpful tips to better your situation before apply for a loan. It’s essential to obtain a loan pre-approval or gain clear understanding around your borrowing capacity. It will ensure you purchase a property within your affordability. It also helps narrow your...
Owning property requires a big commitment. One of the key contributors to reaching financial independence is through owning property. In recent decades, many people have found pricing affordability difficult. As prices increase, its obvious than many Australians will continue to find this worse over time. There are many ways to increase your ability to afford a home, but many...
According to recent studies and research conducted by the Reserve Bank of Australia, Australians with mortgages have significantly increased their financial buffers in comparison to last year. Taking note of the graph below, sourced by Roy Morgan, households are successfully increasing their household liquidity buffers. The left section indicates change within the indebted homeowners. They now have an...
Mortgage deferrals continue to drop. According to new research from Australian Prudential Regulation Authority (APRA) it seems many Australians are once again managing to pay their own mortgages. Back in May 2020, there were approximately 10% of of borrowers needing to pause their loan repayments. In December 2020, borrowers needing to pause their loan repayments were down to approximately 2.4%. The...
As buyers advocates looking to source new and off the plan properties for buyers we have always appreciated the services of a finance broker. A finance broker is a person who helps a buyer purchase a home loan to own/settle a property. Most buyers use borrowed funds to buy a property. Many rely heavily on the outcome of a loan approval. This is very much the reason why a finance broker can be an...
What you can borrow and what you should borrow can vary greatly. The amount between the two can be the difference between buying a property you can purchase and settle or proceeding to soon learn you’ll be loosing your deposit plus other penalties. Before purchasing a property it’s quite important to establish your borrowing capacity in advance. In this market insight we discuss this in more...