Exit costs when refinancing

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Refinancing can be a great way to save money if you believe you are paying too much for your loan, but there is more to it than just finding a loan with a lower interest rate and making the change. Before making the switch, ensure the savings you could make outweigh the fees involved. Here are the different exit costs to consider:

Exit fee

Although loans taken out after 1 July 2011 are not subject to deferred establishment, or exit, fees, those taken out prior may still be. Also known as ‘early termination’ or ‘early discharge’ fees, they can sometimes be paid by your new lender but are normally applied to an early contract exit.

Establishment fee

Also known as ‘application’, ‘up-front’ or ‘set-up’ fees, these cover the lender’s cost of preparing the necessary documents for your new home loan. They are payable on most new loans, and the alternative to not paying this particular fee is being charged higher ongoing fees for the life of the loan.

Mortgage discharge fee

Covering your early legal release from all mortgage obligations, this fee is not to be confused with an exit fee. Also known as a ‘settlement’ or ‘termination’ fee, its purpose is to compensate your lender for the revenue it may lose due to the contract break.

Lender’s mortgage insurance (LMI)

The non-transferrable premium means that if you hold less than 20 per cent equity at the time of your refinance, you may have to pay LMI even if you paid it on the original loan. Extra care is also needed here because, whether or not you hold 20 per cent of the original valuation of the property, you may not if the property’s value has decreased and; while LMI may not have been a consideration at all in the original loan, it may be payable on the refinance.

Stamp duty

If your purpose for making the switch is to increase your loan amount, for example to fund renovations, then stamp duty will apply only to the difference between the original loan amount and the refinanced loan amount. Different rules apply in different states, so it’s worth speaking to your broker to see if this charge applies.

Other government charges

Fees are applied for the registration and deregistration of a mortgage so that all claims on a property can be checked by any future buyers. Varying from state to state, these can potentially add up to $1000 or more.

Break fee

If you were on a fixed rate loan, your lender is likely to charge you a fee for ‘breaking’ out of the loan term. This fee varies depending on the amount owed, the interest rate you were locked into, the current interest rate and the duration of your loan.

Although some of these fees can be negotiated by a broker, the total cost can be substantial. Using a broker will ensure that refinancing helps you achieve your goals while maintaining your capacity to service the debt. Get in touch today to see whether we can help you ensure that pay only the relevant fees for your unique circumstance.

Business Loans – what you need to know

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Applying for a business loan is a completely different process to that of a home loan application. To ensure you don’t lose your way, we’ve set out a clear path for you to follow.

1. Find a specialised broker

Commercial lending is very different to residential, so when searching for a broker, it is important to seek one who is not only accredited, but also experienced in commercial and business finance.

“The first things you should ask a broker is what experience they have with commercial and business loans, and how many lenders they are accredited with in the commercial space,” says the finance broker. “This is to ensure you are presented with a range of options that give you maximum choice.”

2. Gather your paperwork

Unlike residential loans, where much of the paperwork is straightforward, business loans are assessed on a case-by-case basis, which means the documentation that needs to be provided varies depending on the situation.

“Every deal is taken on its own merit, so consumers need to be prepared that lenders will ask for extra information outside of what would normally be expected,” says the finance broker. “In a nutshell however, you’re going to need proof of income and expenses, assets and liabilities, essentially anything that demonstrates that you’re asset rich.”

Other advisable forms of paperwork include tax records, exit strategies and of course, your business profile, so that lenders know what kind of business they are lending to.

3. Do a self check

Loan to value ratios (LVR) on business loans are lower than those in residential. In comparison to the potential 95 per cent you could obtain with LMI on a home loan, you may only get between 50 to 70 per cent for its business counterpart, which means having extra money or equity to put into the deal deems you an ideal applicant.

“Having a good income and asset position is crucial as commercial loan terms are usually a lot less, which would make the monthly repayments a lot higher,” advises the finance broker.

4. Further tips

Work with your broker to negotiate terms and product features that best suit your situation. This will help avoid extra onerous tasks that are sometimes expected with commercial lending.

“Ideally you would want a loan that doesn’t require ongoing reviews and one that has a long loan term,” advises the finance broker. “Some banks may offer a better rate with only a three year loan term for example, but that just means you’ll have to renegotiate your rate and fees once your term ends. This could potentially mean forking out more application and establishment fees, which could add up to an extra $1500 to $2500 expense.”

If you are considering taking out a business loan get in touch today – we can help.

How do I know I’m getting a good deal from my lender?

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With so many products offered by various lenders, it can be quite perplexing trying to figure out whether or not you’ve scored yourself a good deal on your home loan.

While doing your research and comparing what’s out there in the market is one of the most obvious ways to find out whether you’re sitting on a good deal, it can be a time consuming practice and an overwhelming experience for those without specialist knowledge of the mortgage sector.

“It’s good to shop around, and yes you can use comparison websites, but because lenders call like products different names, it can get very difficult comparing apples with apples,” advises the finance broker. “Brokers know the special names and pricing, so it’s worthwhile working with one as not only will it save you time but you’ll also get a well-rounded understanding of the advantages of each product.”

That understanding of each product’s pros and cons is essential, because the best deal isn’t necessarily just the one with the lowest interest rate. It ultimately comes down to finding a loan that suits your plans – whether those plans are to pay the loan off as quickly as possible, to use it to fund renovations or investment down the track, or to pay the lowest total interest and fees over the life of a loan – and to finding a lender that will provide that loan at the level of finance required.

“Imagine you’re wanting to buy your dream home. Now, different lenders will lend varying amounts based upon the same criteria,” says the finance broker. “So that could mean that the lender with the sharpest rate may lend $200,000 less than the one with a slightly higher rate. If you really want that property, you’re going to have to go with the one with the higher rate, which may only make a few thousand dollars difference a year in interest repayments.”

We have specialist knowledge of products from multiple lenders, to ensure you are getting a good deal. Get in touch today if you are looking for advice.

What are the extra costs of buying a home?

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Application & establishment fees, stamp duty + more.

When taking out a mortgage, many people forget to consider the associated fees and expenses. Here are some of the extra costs that you’ll need to consider when you take out a home loan.

Home loan application fees

Most lenders charge a home loan application fee. This can range from loan to loan, and covers:

  • Loan contracts
  • Property title checks
  • Credit checks
  • Attending a settlement

Mortgage fees and costs

Mortgage establishment fees – Lenders generally charge a mortgage establishment fee – a fee for setting up a mortgage.

  • Property valuation – A third party chosen by the lender, is appointed to determine the value of your land and improvements.
  • Mortgage registration – Your Mortgage deed needs to be registered with the government.
  • Mortgage stamp duty – Some State Governments charges stamp duty to register your mortgage.
  • Lenders mortgage insurance – If you don’t have 20% of the purchase price or the value of the property, the lender will require you to pay  for a lenders mortgage insurance policy that covers their risk in the event you default on your repayments.

Property fees and costs

  • Building, Pest and Electrical Inspection fees – It’s wise to have your property inspected for any structural or electrical problems and for pests (e.g. termites).
  • Stamp duty – Governments charge Stamp Duty to transfer the ownership of a property.
  • Registration of transfer fee – The new owner of the property needs to be registered at the Land Titles Office.
  • Legal fees – You generally need to pay a Solicitor of Settlement Agent to handle the transfer of ownership of the property on your behalf
  • Home & contents insurance – Most homeowners insure their home and contents against a range of threats: burglary, fire, storm, etc. Lenders insist that your property is insured while you have a mortgage.
  • Life and income protection insurance – Borrowers should consider protecting their incomes and themselves while they have a mortgage.
  • Utility costs – Connecting electricity, gas and telephone can attract a fee.
  • Council Rates – Your local council charges rates to cover garbage collection and a host of other services.
  • Water Rates – The water corporation charges rates for the supply and upkeep of water to your property.
  • Body corporate fees – If you buy an apartment or Strata Titled property, body corporate fees are charged, and some fees can be significant – particularly if the building is in need of a major work (e.g. concrete cancer, security upgrade, new hot water system, etc) or if there are lifts, pools and other communal facilities.
  • Maintenance costs – Don’t forget to make provision for regular maintenance on your home – even if you decide not to undertake significant renovation.

To learn more about the hidden costs of buying a home, and discuss how we can help you, get in touch today.

Rental yields – what you need to know

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Rental yield – essentially the rate of rental income returned against the costs of an investment property is a great indicator of a property’s investment potential. But you need to keep things in perspective when you factor it into your decision to purchase property.

Calculating rental yield

A good first step in examining rental yield’s impact on the investment potential of a property is to recognise that there are two types of rental yields, gross and net, and they are calculated differently.

In property, gross rental yield is calculated by dividing the annual rental income you receive by the property value, and then multiplying this figure by 100.

For example, if you collect $20,800 rent annually ($400 per week) and your property value is $450,000, it will look like this:

$20,800 (annual rent) / $450,000 (property value) = 0.0462

0.0462 x 100 = 4.622

The gross rental yield is therefore expressed as 4.622%

Presumably, the higher the rental yield percentage, the better, as it suggests a more efficient return on your investment – more bang for your buck.

Knowing a property’s gross rental yield is a quick way to make a rough comparison of how its rental returns fare with others in an area, but it does not give a full picture of the investment potential a property offers.

But the gross rental yield can be misleading.

Net rental yield, on the other hand, offers a more detailed picture of a property’s rental return. To calculate net rental yield, you also factor in the costs and expenses you incur in addition to your property’s value.

The list of costs and expenses is extensive and can include stamp duty, legal costs, building inspections and recurring expenses such as maintenance and repair work, council rates and loan interest repayments.

If you deduct $5,000 for annual costs and expenses from the annual rental income in the gross rental yield scenario in the example above, the net rental yield is 3.5%.

Of course, the credibility of net rental yield is dependent on the accuracy of assumptions you make about the cost of repairs, the property’s market value and the property’s occupancy rate.

A building inspection might reveal dormant issues that will drastically increase future repairs and maintenance expenses. Rental yield might be high for those properties occupied in the neighbourhood, but that doesn’t mean the property you have in mind will be occupied all year-round – vacancies in one street can vary from the next, too.

Rental yield is only one factor to consider

Calculating rental yield should only be part of your assessment of a property’s investment potential. To do due-diligence and ensure you’re making the right investment, it’s also important to consider the resale value, investigate market reports, demographics, sales and rentals history in an area, planning and infrastructure, and the story of the building.

Looking to buy an investment property? Get in touch and we can help you further evaluate the benefits and the issues to consider before making your purchase.

How to negotiate the best property price

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Negotiating the best property price isn’t a matter of swindling a seller. It’s about doing your homework, knowing what you want, knowing the market and making sensible offers.

When you are buying property, getting the best price can mean the difference between being able to afford it and having to settle for second best. And, of course, a purchaser is often negotiating with a seasoned professional, so any time spent brushing up on negotiating skills is well spent.

But we’re getting ahead of ourselves. For a first-class property price negotiation, the homework starts well before you even let the agent know you are interested.

The first thing to do, says buyers’ agent Shelley Horton, is get a good understanding of your requirements and circumstances. Aside from the location and type of house you are looking for, this understanding involves finance, of course.

“One of the first things I would be wanting to find out is whether a purchaser will be borrowing to finance the property, and how much they are looking to borrow,” Horton explains. “If someone is relying on finance as part of the property purchase process, I would always recommend they go and get preapproval, because if you don’t have preapproval, it doesn’t really put you in a strong position against the rest of your competition.”

Aside from meaning that when you do eventually make an offer it will be taken seriously by the seller or their agent, having finance sorted out means that you can be sure of what your stamp duty and associated costs are, and exactly what price range you can consider.

“We can start to work out what an offer range might be, and then it’s just a matter of ascertaining the market,” Horton says.

“This means doing lots and lots of research – seeing the prices other similar properties are listed on the market, checking recent sell prices for other properties that fit the criteria, comparing as much as we can like for like, so then you know that you’re not paying too much.”

Horton initially looks at online resources such as realestate.com.au or Domain. She also uses RP Data reports, but notes that the general public doesn’t usually have access to these (agents, valuers and finance broker usually do).

“The reports give us a little more insight into properties that have sold, and background on the circumstances and situations leading up to a property coming on the market, how long they’ve been on the market and whether they have switched agents,” she says.

Above all, the best thing a buyer can do is get out and look at properties, and speak to the agents to build contacts.

“I inspect properties and go to auctions just to keep in touch with the area, to see what the market is doing,” Horton says. “If you go to an auction and there was a lot of hype around the property, but then you find that there was really only one person interested in bidding, it tells a different story.”

Once you have your finance sorted and you’ve found that special property, get the building and pest inspections done as soon as you can so that if you do make an offer, you are prepared to move quickly. This can give you the edge on your competitors.

“If you have your homework done – your due diligence reports, your finance – you know exactly the position you’re in and you’re ready to go, and letting the agent and vendor know that is actually a good thing,” says Horton. “An agent wants to look for all those signs to see who is the most serous buyer. So being able to make an offer, possibly with no cooling off, will put you ahead of anyone else, because the agent knows that you’re going to start talking about dollars and, once you agree, it’s a done deal.”

Finally, it’s time to talk dollars, and you are well armed by the time you reach this point. Most agents will make buying guides available at inspections, so you will have a good idea of the vendor’s expectations; you will have a certain budget in mind because your finance is locked in; and you will have a good idea of the value of the property from all the preparation you have done (if you are still unsure here, you can have a professional run a valuation or engage a buyers’ agent).

So what should you offer?

“I tend to not start too low because the agent won’t take you seriously,” Horton says. “You have to get that balance right. You might want to start five per cent below a realistic opinion of the value of the property, and go from there. It also depends on your budget. Certainly start below your maximum, and work up to that. Every dollar you get the property under your budget is a bonus for you.”

One exception to this is when a property has been on the market for a long time and there is not much interest in it. “That might be the case where you can get something at a heavily discounted price because the property is stale,” Horton says. The key to knowing whether this is the case, of course, is all that thorough research you’ve done.

Ready to make the deal? Get in touch today to see how we can help you get your finance sorted.

What comes first: the property or the loan?

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It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan.

Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation.

But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings, gaining pre-approval with a lender will give you confidence about how much you can afford to borrow.

“First and foremost you need to determine if you’re eligible to borrow money from a lender,” says the finance broker. “Your ability to repay the loan will need to be assessed – you don’t what to find out after you’ve [made an offer] that your credit history or deposit is not up to scratch.”

Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you have always wanted, you can present to the seller and estate agent as a prepared applicant who is serious and reliable.

“It shows you mean business, and gives them peace of mind that your financing will not fall through. Don’t be afraid to let the selling agent know you have conditional loan approval in place,” the finance broker advises.

Sellers are most interested in completing their sale fuss-free and with steadfast funding, and showing that you are capable of both will help put you at the top of a potentially competitive list of applicants.

In the instance that you find and secure purchase of a home without having your loan pre-approved by a lender, there are a few pitfalls that you risk running into.

“If you don’t have financing to pay for your property, you run the risk of forfeiting your initial 10 per cent non-refundable deposit you need to put down to secure the property. This may differ depending on what state you live in, but the point is it always pays to be organised and have pre-approval in place,” Nolan says.

Saving home loan applications to the last minute also leaves less time to find the most suitable loan and have it approved ahead of settlement.

“Arranging financing as an afterthought also adds immense pressure to the process of shopping around for the right loan and gathering the paperwork to prove you can service the loan,” the finance broker explains. “You don’t want to rush this process.”

Get in touch today to take the first steps toward finding your new home.

How The ‘Best Interest Duty’ Can Help You Find The Best Home Loan

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The Best Interest Duty (BID) for mortgage brokers came into effect
1 January 2021.

The Best Interest Duty and related obligations ensure that you
receive advice that meets your objectives, financial situation and
needs, and that we act in your best interests when providing this
advice.

What does that really mean for you?

In short, it means that your mortgage broker (us!) must legally
comply with the BID to ensure that you secure the best home
loan product that is most appropriate for your situation.
It also means that not much will change for us because we have
always put our clients’ interests first.

More about BID

The Best Interest Duty guidelines state that while price will always
be a determining factor, in some cases the cheapest price may
not be the best outcome.

Some circumstances may mean that the benefits provided by
certain features might outweigh the importance of cost.

Some clients may have a strong preference for a loan feature that
may not be in their best interests. For example, someone may
insist on an interest only loan, when in our view it is not in their
best interest.

In this case, we are expected to make reasonable efforts to
explain why these features may not be appropriate or offer good
alternatives to help them make an informed decision.

Other home loan considerations where we will act in your best
interests include:

• When refinancing – “the consumer may benefit from being
made aware of any potentially minor cost savings associated
with refinancing, with an explanation of when the cost savings
would exceed the refinancing expenses.”

• Considering promotional offers – “any promotional offer
that is quantifiable will be considered as part of the cost of the
credit product… it is important to be aware of eligibility criteria,
exclusions and time limitations.”

• Comparing interest rates – for example a “fixed rate loan with
a substantial break fee could be detrimental to a consumer who
wants flexibility to refinance.”

• Deciding on account structure – “an offset account may not
be relevant to a consumer whose plans do not include repaying
additional amounts (and may be detrimental if there is an
additional cost for the feature).”

You will have the assurance that we must place your interests
ahead of our own as set out in the Conflict Priority Rule
guidelines. Conflict priority requires mortgage brokers to prioritise
the consumer’s interests in the event of a conflict of interest.

For example

Linh and Zelda approach a mortgage broker for a home loan.

Based on the information provided, the broker sourced two very
similar loan products:

Lender 1 – A home loan package with an offset account, but NO
annual fee.

Lender 2 – A home loan package with an offset account but
includes an annual fee of $149.

The broker recommends to the client to proceed with Lender 1.

However, Lender 1 offers a higher commission to the broker than
lender 2 for the same size loan.

Commentary

In prioritising the consumers’ interests, it IS POSSIBLE that the interests
of the consumer and the broker align – even if the broker is paid more
commission. In this situation, the fact that there is an additional
benefit for the broker DOES NOT indicate that the broker did not
prioritise Linh and Zelda’s interests.

If the situation was reversed, where Lender 2 offered the broker more
commission, AND the broker recommended Lender 2 over Lender 1,
then the Lender 2 product would be inconsistent with the conflict
priority rule, and therefore becomes a conflict of interest – thus not
operating in the best interests of the consumer and not legally
complying with BID.

Best Interest Duty does NOT apply to any lenders!

A lender may offer you products, but a mortgage broker
MUST act in your best interest.

Lenders have no legal obligation to act in your best interest, but
we do!

Looking for a home loan? Contact us today to see how we can
assist you.

What The Banks Can’t Offer – But We Can!

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What a difference a year makes. After the turmoil of lockdowns
and employment uncertainty around this time last year, things are
looking up for many of our clients – in more ways than one!
26% of Australians say their families are now ‘better off’ financially
than this time last year and some recent auction clearance results
are nearly 90%.

We suspect we will continue to experience a level of uncertainty
as borders and restrictions ease and then tighten again, however
many of our clients are taking advantage of the current
opportunities to buy their first home, invest or upgrade. These
are the key reasons that you could too…

• First home buyer incentives, discounts, cashbacks and
concessions are available

• Interest rates remain at an all-time low

• Consumer confidence is lifting

• Simpler lending rules for home loans are expected shortly

For many Australians who are considering taking advantage of
the current opportunities to secure a home loan at the lowest
rates in history, the choices and process itself can be a little
daunting.

If you don’t have a good understanding of the financial services
industry or the many products and features available for home
loans, it can be difficult to decide on the right property finance
for you. Plus, mortgage applications can sometimes be confusing
and time consuming. But not for those using a mortgage broker.

It’s all about your best interests – one more reason to
use a mortgage broker.

The Best Interest Duty (BID) for mortgage brokers came into
effect on 1 January 20213.

The Best Interest Duty and related obligations ensure that you
receive advice that meets your objectives, financial situation and
needs, and that we act in your best interests when providing
advice.

This new duty gives you additional peace of mind knowing that
we are now legally required to act in your best interests.
Did you know that Best Interest Duty does NOT apply to any
banks or other lenders?

ASIC, the industry regulator, released Regulatory Guide 273
which sets out obligations for mortgage brokers under the Best
Interest Duty.

The Best Interest Duty obligations:

• are intended to more closely align mortgage broker practices
with consumers’ expectations

• should improve the support, guidance and communication
provided to consumers throughout the credit assistance
process

• should lead to a higher quality of credit assistance being
provided

The new obligations include a duty for mortgage brokers to
prioritise the interests of clients over their own – which we have
always done anyway!

Products recommended by us must be in your best interests
and the reasons for product selection should be recorded and
explained to you.
While costs (interest rates, fees and charges) are often a major
determining factor when deciding on a home loan, the cheapest
may not always be the best outcome for the borrower.

ASIC’s BID guidelines state that some consumer
circumstances will mean that the benefits provided by certain
features may outweigh the importance of cost.

While some people may value access to an offset account,
others may prioritise faster approval time. Mortgage brokers are
expected to exercise judgement in considering the relevance
of these factors with reference to the consumer’s individual
circumstances.

Regardless of legislation, how could a bank or other lender always
‘act in your best interest’, if they can only offer you a limited
number of products?

The ANSWER is… They can’t!

A lender may offer you products, but a mortgage
broker MUST act in your best interest.

We have always sought finance options for our clients that best
suit their own individual circumstances and work in their best
interests, so don’t expect anything to change from us. We will
keep focusing on doing the right thing by our clients.

Not only are market conditions and interest rates tempting
our clients to buy, but there is now the added confidence that,
amongst the other benefits of using a mortgage broker, we
are legally obliged to offer finance options that are in your best
interests.

To find out how you could secure a better mortgage deal that
MUST be in your best interest – read our guide here.

6 Ways First Home Buyers Could Buy Sooner

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The dream of home ownership is a tough one for many Australians to fulfil. After all, Australia is one of the most expensive countries to live in. But it’s not just the cost of living and property pricing that delays our property buying.

The road to home ownership can be a long and winding one for most. Considering the affordability of repayments, the location and lifestyle balance of the property, saving up the baseline entry level 20% deposit (if not, having to absorb further costs by paying lenders’ mortgage insurance (LMI)) and stamp duty are just some of the other factors to consider. In Australia, depending on age of the borrower and purchase price, it can take anywhere from two years to over six years to save for a deposit. This of course is also dependent on the income and expenditure of individuals.

Yes, it can be tough to get a foot on the property ladder, but first home buyers (FHBs) are not deterred.

About a third of millennials and a quarter of all Australians plan to buy a property in the next two years with many using the lockdowns in 2020 to up the ante on their savings.

There is no better time than now for FHBs to dive in and make that commitment – if possible.

Here is why:

1. Only a 5% deposit and no lenders’ mortgage insurance (LMI) – until 30 June 2021 and only through certain lenders – for those who are eligible!

Under the First Home Loan Deposit Scheme (FHLDS) eligible first home buyers can buy or build a new home with as little as a 5% deposit

Usually, a 20% deposit is required to avoid LMI costs (which can cost tens of thousands of dollars). But under the FHLDS, the government guarantees the remaining 15% of the value of the property purchase financed by the eligible first home buyer’s loan. Eligibility, property price thresholds and conditions apply.

2. One-off $15,000 grant to eligible owner-occupiers, including first home buyers

The Australian Government HomeBuilder grant provides eligible owner-occupiers, including first home buyers, with a grant to build a new home, substantially renovate an existing home or buy an off the plan home/new home. A $15,000 grant is available for contracts signed between 1 January 2021 and 31 March 2021.

The government has also extended the deadline to 14 April 2021 (inclusive) for those applying for the $25,000 which applies to eligible contracts signed on or after 4 June 2020 until 31 December 2020³. They have even lifted the property price cap for new build contracts in New South Wales to $950,000 and Victoria to $850,000 ($750,000 in all other states and territories).

Caution: lenders won’t assume you have this money because the grant is paid to you and not the bank – so be careful when working out how much money you have for the build (or even if T&Cs apply)!

3. Some lenders are offering bonus first home buyer incentives

From bonuses offered at settlement, conveyancing fee rebates, no account keeping and establishment fees, to no application and valuation fees – these are a few of the incentives offered by some lenders to attract first home buyers (however these include specific criteria and conditions).

4. Lenders’ mortgage insurance discounts are being considered by select lenders

Some lenders have been known to reduce the LMI to just $1 for eligible first home buyers! Others offer a percentage discount on LMI fees following settlement. Minimum deposits, maximum loan size and T&Cs apply.

5. Cash in on cash backs – certain lenders offer cashback incentives to first home buyers

Thousands of dollars of cashback to an eligible first home buyer with LMI and new purchase rebates are just some incentives that are on offer from some lenders.

Nabbing a great deal or incentive on your home loan could help you save money, but it is even more important to consider price (interest rates and fees) and features when choosing the right home loan.

6. Stamp duty concessions are available in some states

Besides saving for a deposit, stamp duty can be another big barrier to home ownership. However, most states and territories offer some assistance on this cost, including some exemptions, for eligible first home buyers.

Accessing one or more of these schemes or incentives could provide the assistance you need to buy your first home. It could also potentially save you tens of thousands of dollars.

But before considering any of these options, CONTACT US, so we can help steer you through the various options that may be appropriate for your specific situation. It is important to understand the various terms, conditions and eligibility criteria.

A FHB opportunity awaits

If you are one of the lucky ones who have remained financially stable, this could be your opportunity.

While there are always varying peaks and troughs in different property markets across the country, now could be an ideal time for FHBs to get into the market… Why?

  • Historically low interest rates make borrowing cheaper than it has ever been
  • Government incentives, spending and infrastructure initiatives continue
  • Consumer confidence is returning as we adapt to the new normal
  • Simpler lending rules for home loans are expected shortly

Knowing where to start, taking the initial steps and navigating through the whole process can be overwhelming. We can step you through the process from the initial stages so you can rest assured you will be well informed for one of the biggest decisions in your life. We have the experience and knowledge, along with access to a wide array of lenders, to ensure you are successfully guided through your first home buying journey.