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The property purchase process

For many, purchasing a home is a daunting process. This is especially true for First Home Buyers, but also those that haven’t purchased property in a while. Let’s face it, most of us stay in one property for quite some time and it might be a decade or more before we have to go through the process again. It can be intimidating having to negotiate with Real Estate Agents, securing a loan and dealing with the legal side of purchasing a property. Having a broker that is by your side during the w...

The art of the possible: how to pay off your mortgage sooner

It’s a simple equation. Paying down your mortgage sooner can save you thousands of dollars in interest in the long run. Here are some ways to make the most of every dollar while paying off your loan quicker. Increase your repayments... Let’s take a look at repaying a $500,000 home loan, using the mortgage calculator available on the Australian Government's MoneySmart website.  If such a loan was taken at a fixed rate of 5% and paid back at $2700 a month along with $10 in monthly fees...

Understanding which home loan features are right for you

Loans are by no means ‘one size fits all.’ Different loan types suit different age groups, different living situations and even different attitudes to money. A common trap some home-owners fall into is to consider a mortgage ‘set and forget’. You did your research, shopped around, found the right option and now you’re reluctant to revisit the process - even if your personal circumstances have dramatically changed. Before you start shopping around for a new loan, or an upgrade to y...

What to know for a hassle-free settlement day

If you are buying or selling a property, the settlement period is when you will deal with finances and paperwork to legally transfer ownership of the property. Your financial and legal reps will handle the hard stuff but knowing what is involved is key to a smooth settlement. Here we guide you through it. Before settlement The length of the settlement (typically 6 weeks in NSW) can either be outlined in the contract of sale from the outset or negotiated by the buyer or seller before signing th...

4 questions every property buyer should ask their real estate agent

If you are buying a new home or investment, chances are you will be attending a lot of open houses and meeting a lot of real estate agents. Finding the right property involves time and research, so you will need to ask the right questions to ensure you are making a competitive offer on a property that meets your long-term needs. Here we outline four questions you should always ask before you close the deal. 1. Why is the vendor selling? One of the most important questions you can ask is abou...

Behind the curtain: what drives RBA decision making?

The RBA’s decision to hold on interest rates gives us time to take a deeper look at what is going on. After all, there could be further cuts. What drives the decision making? What could send rates lower? To cut or not On the first Tuesday of each month, except January, the RBA board meets to decide if the cash rate - the market interest rate for overnight loans between financial institutions - should increase, decrease or stay the same. It's an important call because the cash rate has sway ...

7 ways to minimise debt in preparation for a mortgage

While you don’t need to be debt-free to secure a mortgage, you do need to demonstrate that you’re responsible with your finances. This means steadily paying down existing debt and saving regularly. Here are seven steps you can take to reduce your debt and ensure you’re home loan ready: 1. Work out how much you spend First things first, you need to know where your money goes each month. A good way to do this is download a spending and budgeting app. While there’s some initial effort inv...

Four must-haves for your next property inspection

You’re walking down the street when you see it – the perfect house. It’s charming, quaint and, okay, maybe a bit small, but you’re sure you could extend it later. But before you sign on the dotted line, consider whether your dreams will hold up under a little scrutiny. Every state has disclosure laws that require the vendor to tell you some of the potential pitfalls of the property. These laws aren’t comprehensive so consider the following when you’re inspecting your dream house. 1.B...

10 renovation ideas that can increase your home’s value

Taking care of basic maintenance tasks before you sell your home is a no-brainer, but a quick and not-too-costly renovation can add a lot of appeal for potential buyers, and may boost the final sale price. 1. Basics first Fix those little faults that you no longer notice – leaky taps, rusty gutters, broken window catches. They can make a huge difference to a buyer’s perception of value. 2. Landscape the garden A well-kept garden can create a low-maintenance feel before buyers even step i...

Refinancing could save you thousands – and give you greater flexibility

What is refinancing? Refinancing is the process of replacing an existing loan with a new one. When it comes to home loans, it means your existing home loan is paid off and replaced with a new one. This is different from a second mortgage, where you draw on the equity you have built up in your home. How can it help me save? If you were paying 4.29 per cent interest on a principal and interest home loan of $400,000 for a 30 year term, your monthly principal and interest payments per month will...

Money-saving SOS: Effective tips to help land that home loan

Looking to enter the property market and worried about how you’re going to secure your first home loan? It’s time to start making your money work for you so you can land that loan. Qualifying for a home loan isn’t always an easy path. Aggressive interest rates, competition in the market and less than rigorous saving habits can often push people out of the property game completely – but it shouldn’t. Saving enough money for a sufficient deposit is possible with the right guidance and pl...

Easy ways to brighten up your home

Most people want their home to be light, bright and airy, but sometimes the stars just don’t align and you can end up with rooms that are unavoidably dark – low on windows or facing away from the sun. With a few smart tricks (and clever renovations, if you’re up to the challenge) you can transform a dreary room into a breath of fresh air, either for potential buyers, tenants or just for yourself. Get painting A quick and easy way to upgrade a dark space is to freshen it up with light pa...

To offset or not to offset

Is having an offset account really worth it? The answer is, it COULD be. There are a number of things you need to be aware of when it comes to offset accounts. Basically an offset account means that any money in that account offsets the balance of your mortgage, reducing the amount that you pay interest on. For example, on a loan amount of $400,000 with $10,000 in an offset account, you would only pay interest on $390,000. Sounds great, right? The thing you have to be aware of is that generally ...

Five simple ways to declutter your home

Love it, use it or lose it.1. Form and Function: Is it broken or damaged? If it mattered, wouldn’t you have fixed it by now? Get rid of it! 2. The two-year rule: You say you have ‘nothing to wear’ but your wardrobe is bulging. Haven’t worn something in the past two years? Donate it to a local charity. 3. Done and dusted: Your storage spaces ar4e filled with boxes of outdated kitchen gadgets, unused gym equipment, and the baby clothes of your now-adult children. Pack them up and pass th...

5 top online homeware stores

When it’s time to deck out your new home, make sure your laptop’s fully charged and you’re ready for some high-powered online shopping. You could bag a bargain, and maybe even get some design ideas in the process. Here are some of our favourite online retailers. Big-name bricks-and-mortar stores like Myer, David Jones, Ikea and JB Hi-Fi have large online stores (especially worth remembering at stocktake sale time). If you’re looking to save cash by buyi...

How much can you afford to borrow with your first home loan?

Understanding how much borrowing capacity you have when buying your first home is an essential step for all newcomers to home ownership. The question of “How much can I borrow?” rears its ugly head for all new home buyers. As daunting as it can be, understanding your borrowing power is important – and essential – for those ready to get their foot in the door with their first home purchase. Owning property in Australia is a dream for many young professionals and families. Aside from the...

6 winning strategies for auctions

Auctions are competitive and stressful for most bidders. Here are six smart strategies that could improve your chances of winning. 1.Don’t show your hand Revealing your maximum bid limit to the agent before the auction could encourage them to push you a little further. For example, during the auction the agent might indicate you’re close to meeting the vendor’s expectations, to try to persuade you to bid above your limit. It’s in their interest because they’re usually ...

Your property inspection checklist

When you’re house hunting, it’s easy to get distracted by aesthetics. This checklist will help you focus on what’s really important at a property inspection. Is it right for you? Is a spare bedroom, second bathroom or ensuite a must? Will everyone be safe or comfortable climbing stairs? Does your dog need space to roam? Be realistic about the features you can’t live without. Floor plan and room sizes Walk around the property to get a sense of how one room flows into the next. Check ...

10 tips for choosing an investment property

So, you’re thinking of buying your first residential investment property? There are a few things to consider before making the move. Here are our top 10 tips for avoiding potential difficulties and ensuring success. 1. Know your goal Understanding your financial objectives is key to finding the right investment property. The actual property itself is rarely the end goal when it comes to investing – the financial elements should be your key focus. First, decide what your investment goal is an...

Why brokers hold the keys to getting your foot in the property door

Getting a foot in the door of your dream home might be getting harder, but talking to a mortgage broker could get you the keys more quickly. Purchasing a property in today’s housing market is not for the faint-hearted. Would-be homebuyers have only to turn on their TV – or check Facebook or Twitter – for the latest news informing them that their dream home is slipping further out of reach.  When you add in the challenge of sourcing the right loan, first homebuyer...

Smart tips for paying off your home loan sooner

Wondering how to pay off your home loan sooner? We look at some things you could do. Australian home loan interest rates remain at historic lows, and the opportunities for paying off a mortgage early are better than ever. Used in conjunction with low rates, here are some extra steps that can speed up loan repayments and reduce your loan balance. Make higher repayments One of the easiest ways to quickly reduce the balance of your mortgage is to make larger loan repayments. The minimum repayments ...

Five questions potential first-home buyers should ask themselves

As a new home owner, you may be asked by friends and family interested in buying their first home what to consider before diving in. Here are five tips you can pass on. 1. Is it the right time? Moving house can be stressful and time-consuming, so consider whether it’s suitable right now. Will your children need to move school? Are there work obligations that could make a move challenging? If you’re planning major life changes like having a baby, you’ll need to factor these in. 2....

Want to help your kids buy property? Here’s how

The real estate market can be tough for young adults, but as a parent you may be able to lend a helping hand. We tell you how. 1. Parent-to-child loan A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding arrangement, administered by an independent third party. At the start of the loan period, both parties agree to terms including repayment amounts, a schedule and a process to manage defaults. Benefits: You can set generous terms for your child, bu...

Refinancing: what you need to know

Confused about the ins and outs of mortgage refinancing? There are two key considerations when you’re looking at taking the step – why and how. Here, we examine both. A home loan is generally a long-term proposition, but in some situations it can be suitable to refinance your mortgage. Refinancing involves taking out a new mortgage and using those funds to pay off your existing mortgage. Doing it right could deliver significant financial gains over time. The two key things you need to know...

Mortgages and break-ups: Some practical tips when separating

Breaking up is hard to do. On top of the emotional impact, there are practical ramifications as well. When there's a separation or divorce, debts you’ve accrued during the relationship unfortunately don’t go away. The longer a couple is together, the harder it can be to unravel all the financial connections. Here we outline some of the issues facing both de facto and married couples when dealing with what is usually their most significant debt: the mortgage. Used alongside professional leg...