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Abundance Mortgage & Finance Brokers

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24.01.2022 Home loans have come a long way in the past few decades, and now there are a range of features you can access that can really benefit you in the long run. Fortunately, there are a few key features that you need to know about that can make all the difference and potentially save you thousands of dollars over the life of the loan. Offset Account... An offset account is one of the most common features of a standard variable home loan, and it’s also one of the most effective. An offset account is like a transaction account that works in conjunction with your home loan. You effectively save interest on money that you have sitting in your offset account, while still retaining full access to it, as you would with the account you use for everyday purchases or even your savings account. While there are different types of offset accounts, a 100% offset can be the most beneficial for some, as it saves you the same rate of interest that you’re paying on the home loan. Unlimited Additional Repayments If your goal is to pay down the balance of your home loan as soon as possible, you’re going to want to be able to make frequent repayments over and above the minimum requirements. Some home loans don’t allow you to do this or have a cap on the additional amount you can repay. Fortunately, there are plenty of products that do offer unlimited additional repayments, and this can save you both fees and interest over the long term. Split Loans If you’re unsure as to whether you should be fixing your home loan, the good thing is, it is possible to have the best of both worlds with a split home loan. As the name suggests, this type of loan allows you to split the loan between variable and fixed interest, so there is a degree of certainty around your repayments while still having some level of flexibility that comes with the variable loan. Redraw Facility If you’re someone who is likely going to be paying back your loan faster than the term dictates, a redraw facility might be something to consider. In essence, a redraw facility is very similar to an offset account, in that you have access to all the money you repay over and above the minimum. If you don’t need access to those extra funds, but want to have the money there for a rainy day or an emergency, then a redraw facility is a very effective option. Package Deals If you have a range of different loans, such as car, personal and home loans, then it is possible to package them all together. By doing this, you will likely be able to get lower interest rates and also save on the fees you would pay should you elect to take them out separately. The main catch with a package deal is that you are a little more tied to that one lender than you might be otherwise. It’s always a good idea to review your loans regularly with your mortgage broker.

19.01.2022 ? With interest rates at record low levels, homeowners are starting to think a lot more about fixing their home loans. The RBA has made it known that interest rates are likely to stay low for a while yet; however, there is increasing evidence to suggest that they will need to rise sooner rather than later.... For homeowners who want some security around their monthly repayments, a good idea is to look at a fixed-rate home loan. As the name suggests, a fixed-rate home loan will allow you to lock in your interest rate for a period of time, which is normally around 2-5 years, after which, the loan will generally revert to a variable rate. One of the things that can catch homeowners out, is the fact that the actual rate you receive on your fixed-rate home loan doesn’t begin until the loan is settled. That means the rate you see when you apply for a fixed-rate home loan can be very different from what you actually get. In an environment in which interest rates are likely to rise, this is something that you need to be aware of. Rate Lock One of the things you can do to protect yourself in the event interest rates look as though they are going to rise is to secure a rate lock. As the name suggests, a rate lock will ‘lock in’ the interest rate on your fixed-rate home loan at the time of application or, perhaps, when you pay the rate lock fee. This means that even if rates move higher between the time you apply and the time the loan is settled, you will still receive the same agreed-upon interest rate. Generally, lenders charge either a fixed fee or a percentage of the home loan, which is normally up to 0.2%, to access a rate lock. The rate lock will last anywhere from 60 to 90 days and varies between different lenders. As interest rates come into focus and more and more borrowers consider either taking out a fixed-rate loan or at least fixing a portion of their mortgage, it might be worth considering whether to look at a rate lock. A rate lock is most effective in a period when rates will potentially rise. It is also most suited to borrowers who will likely need a bit of time to find and secure a property.

18.01.2022 House prices across Australia are continuing to see a sharp rise, and that can make it very tricky for buyers. Clearly, most states are in the grip of a seller’s market, so it’s important to both adjust your expectations and know how to buy when prices are rising. Have finance organised... Arguably, the most important element of buying a property during any market is to make sure you have your finance organised. However, when markets are rising, you not only need to know how much you can spend, but you need the confidence to be able to act quickly. As prices move higher, we also see the time it takes to sell a property, fall dramatically. As a buyer, if you have a preapproval in place, you’ll be able to make an offer early and have the confidence that your finance won’t be an issue. Look at all options Most Australian’s like to browse the real estate portals and then attend open homes on the weekend. Unfortunately, when markets are hot, you need more options, or you’ll be stuck fighting over the few properties that are actually listed for sale. One of the most effective things you can do is get on the email list of the leading agents in the suburb or suburbs in which you are wanting to buy. Sales agents often let people know about upcoming listings, and if you are confident and prepared, you might be able to make an offer before the listing ever sees the light of day. Do your research When markets are moving, it seems as if every property is selling well above its asking price. It is incumbent upon you, the buyer, to understand where the market is at in your area of interest, and the best way to do that is to track recent sales. By understanding what’s selling, you will know what a fair price is and also how long you have to act. Talk to all the sales agents in your area if you want even more insight as they are the ones who are always on the pulse of the market. Manage your expectations When markets are moving, it's unlikely that you’re going to get a significant discount on a property that has multiple interested parties. If a market is rising by 5% each quarter, it's conceivable that from the time you began your search to when you go to put in an offer, some property might have appreciated sharply in value. Again, you will need to know your market and put in an offer that is competitive. There’s no point fighting over a few thousand dollars and missing out when houses are rising by double digits on an annual basis.

16.01.2022 The last 12 months have been incredibly strong for regional property markets, and the latest data from CoreLogic has shown just how impressive the price gains have been. In the past year, regional property values increased by 13.0% compared with a 6.4% gain in capital city values.... Richmond-Tweed, NSW saw the most impressive gains in the country for both house and unit markets, with 21.9% and 15.5% annual growth, respectively. Ballarat, VIC saw the fastest time to sell a property in regional Australia, coming in at just 24 days. Bunbury, WA was the weakest regional area for house price growth, with 3% and -4.4% yearly growth, respectively.

13.01.2022 While it’s nice to be selling when markets are strong, this can also cause a number of issues for those who are needing to sell their home before trying to buy another. We would see this commonly with upgraders and downgraders, who might be at the time in their lives when they need more space for the family or, on the flip side, would like a smaller home that requires less maintenance as they get older.... Both sets of potential buyers will likely need to sell their own property before making an offer on another one. This can be a tricky situation to navigate, and it’s important to consider a number of factors when trying to sell. Appraise Your Current Home The first thing you need to get a clear understanding of, is just how much your current home is worth. In a seller’s market, prices can move quickly, so even in the space of three months, your property might have gained significant value. It’s always good to get multiple opinions from the leading sales agents in your area as they are on the pulse of what is selling. They can also give you a very clear idea of how fast your home might sell and also whether the property type is what buyers in that area are looking for. Look to Auction There’s no doubt that if you want to get the most you can for your property, auction is the best option in a hot market. Auctions are most effective when there are multiple interested parties who are prepared to bid against one another. However, if you need more flexibility around the terms, such as settlement, then it might be worth considering selling by private treaty. That could come at the cost of extracting the very best price. Longer Settlements If you need time to buy a home after selling, then it’s well worth pushing for a longer settlement period on your own property. It’s possible to get four-month settlement periods, and you will likely need that time to go through the buying process. Bridging Loans If you are looking to sell, but really want to buy a certain property, there are options to consider, such as a bridging loan. These loans often come with higher interest rates but can be a useful way to get the best of both worlds. Given that the property market is strong, the odds of selling your home go up; you just don’t have that certainty when you have already sold your property. Pre-approval What you can do is start talking to a mortgage broker about what your finance options are like, and in some cases, it will be possible to get a pre-approval together. A pre-approval in conjunction with a good appraisal of your current property will give you a clear idea of how much you can afford to spend in the future. Even if you’re starting out the selling process, it is well worth getting a good understanding of how much you can potentially spend and start monitoring the market.

13.01.2022 ’ ? Property prices are rising across the country, with many areas seeing record growth rates. These are the top-performing suburbs in each state over the last quarter, according to CoreLogic.... NSW - Hurstville Grove (H) - 32% VIC - Heywood (H) - 24% QLD - Mackay (U) - 23% NT - Rapid Creek (H) - 29% SA - Unley Park (H) - 28% WA - Daglish (H) - 26% ACT - Cook (H) - 15% TAS - Bridport (H) - 24%

07.01.2022 When you’re buying a property as an investment, it’s crucial that you don’t get hit with any unexpected costs. Here are some things to look out for when doing your due diligence.... Damaged roofs - A roof is one of the most expensive things to fix. If you’re looking at an older home, get an inspection done on the roof. Old hot water systems - Hot water systems don’t last forever, and the cheaper ones often need to be replaced every few years. Check when it was installed. Plumbing issues - When you have older pipes and plumbing, there are more risks of water damage and leaks. Be sure you check on them regularly so you can take fast action if needed. Mold or damp - This can be a concern by itself, but also suggests there are bigger issues, such as leaks or water damage that will need to be addressed.

05.01.2022 With house prices rising in all states and territories, we are again looking at falling levels of affordability. When the time comes to purchase a property, often the most important element is just how much a bank is going to lend you. This is known as your borrowing capacity, and the good news is that there are things you can do to increase it.... Know your credit score The first thing a lender will do when assessing your application is to look at your credit score. If you’ve got a history of unpaid bills or late payments, they will likely perceive you as being higher risk and may lend less to you, than a borrower with a higher credit score. You can start improving your credit-worthiness by paying your bills on time and preferably early, as well as getting a copy of your credit report and making sure there are no errors. Reduce debts Your borrowing capacity is effectively the spare money between how much you earn and how much you spend. Things like debts are fixed expenses that will weigh down your ability to borrow. You might be able to consolidate some of your higher-interest debts (eg, credit cards) into something like a personal loan to put you in a more favourable financial position. However, the best thing to do if you’re serious about buying a property is holding off on accruing that debt in the first place, which potentially means not using credit for things like trips or even an expensive car. Cutting credit cards One of the easiest ways of increasing your borrowing capacity is by cutting down on your credit cards. While credit card debt isn’t necessarily a bad thing, what is now commonly known is that lenders assess your credit card limit as if it is entirely maxed out. A $10,000 credit card limit could be the difference between your being able to afford a house or missing out. If you don’t need a credit card or can get away with a lower limit, it’s something you should consider arranging before applying for a home loan. Reduce your expenses It’s not just about your income when applying for a home loan. Lenders go over a person’s expenses in great detail. Expenses include everything from fixed costs, such as rent and utilities, to other things like eating out and entertainment. Most lenders will assess your last 3-6 months of bank statements to get an idea of what you actually spend your money on. If you need a home loan, cutting back on the luxuries for a while will not only help you build good money habits, but could also boost your borrowing capacity.