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25.01.2022 I have had a few clients see the FB marketing of people/businesses saying" how to pay off your mortgage in 7-10 years". Most (probably all) of these systems require buying more property (occasionally shares) and either using the positive cash flow to pay down the mortgage. Or they using negative gearing to get a tax advantage and funnel the tax advantages back to the owner occupied mortgages. Some may also use some tricky mortgages which have much lower owner occupied rate...s which are offset by higher (tax deductible) investment rates. We have knowledge on each of these systems. If you want general advice on these strategies without being sold a property let us know. As they all have Pros and Cons- so be mindful of this in the current low rate/low growth environment. As most of these operators are more likely to be interested in selling you a property and not giving you the full picture. This is not a regulated part of the investment market (though hopefully this will change). Don't get me wrong, some of these strategies will work. But we have had clients to duplex developments being told they would make $100k in equity once strata titled- some did and some also lost money as the area became flooded with duplex stock (just an example) and values dropped. So do your research and ask questions. See more

25.01.2022 Which is better? Plan A - Buy a home Or Plan B - Buy an investment property and rent

25.01.2022 Here is some interesting Data and information from Corelogic and the ABS. As expected the higher value properties are seeing more of a downward trend. The Australian housing market is not one market, but a collection of many. Over the past few months, dwelling market performance has varied by region, in both a cyclical and structural way. As per historic cycles, the most expensive parts of Sydney and Melbourne seem to be leading the current downswing. ... Over the month of May, dwelling values in the top quartile of the Melbourne market (dwellings worth $959,500 or more) had fallen by 1.3%, compared with a 0.6% decline across the middle of the market, and a 0.3% decline in the lowest value quartile. Across Sydney, the same period saw a decline in the highest market segment (where dwellings are worth over $1.35 million) of 0.6%, followed by a 0.4% decline across the middle of the market, and a slight increase in the lowest value segment of 0.1%. The more expensive parts of the Sydney and Melbourne dwelling markets have higher levels of volatility, and are at times a first mover when it comes to the direction of price change. Research from the RBA asserts that more expensive property can be most reactive and volatile in responses to changes in the cash rate. The performance of property markets amid COVID-19 suggest the high end of the market may also be more responsive to negative economic shocks. Which markets have been most impacted by COVID-19? The tables below show SA4 regions across the capital cities, ranked by the capital growth performance in dwelling markets from March to May. Unsurprisingly, Melbournes inner city and eastern suburbs have seen the largest decline across the metropolitan region, and the past two months have seen a decline in values across some high end markets in Sydney, such as North Sydney, the Inner West and the Northern Beaches.

25.01.2022 RBA keeps rates on hold today as we all wait for the budget tonight.......... Ok, how about we watch the budget for you tonight and give you the highlights tomorrow :)

24.01.2022 Its a busy week in the mortgage space. With the RBA rate reduction, the proposed changes to the tax rates and the proposed changes to how banks calculate borrowing capacity. We will keep you posted on these changes and how they impact your loan options. Let me know if you have any questions?

23.01.2022 Is this your bank? Then it's time to take advantage of our Free Loan Comparison Service. Some clients discovered saving $300+ per month by switching to a better deal. Private message me today to see how much you could save by switching.

23.01.2022 The Australian Banking Association (ABA) has made official its approach to credit reporting through the COVID-19 crisis, with the primary driver of its decision being alleviating stress for Australian customers. Borrowers who are granted a six-month deferral on loan repayments will not have their credit rating affected as a result of the holiday, so long as they were up to date with repayments prior to the economic impact of COVID-19. If a customer is granted a deferral on t...heir mortgage and other credit products because of COVID-19, banks will report customers as not having missed a repayment, provided they were all up to date when granted relief, explained ABA CEO Anna Bligh. Australias banks are here to support customers who have lost their jobs or significantly lost income because of COVID-19 Customers in these circumstances should not have to worry about their credit rating as well. The approach for customers who were already behind on their repayments before being granted a COVID-19 deferral has yet to be decided. Banks will simply not report the repayment history information for the duration of the deferral period through leaving that field blank; once the deferral has ended, the institution will determine how to report for those customers retroactively. There may be other factors which can affect a customers credit rating, but customers accepting a COVID-19 loan repayment deferral can rest easy that the deferral will not be one of them, said Bligh. The Financial Rights Centre has warmly welcomed the ABA announcement. CEO Karen Cox said, People calling our advice services have so much to contend with right now: the stress of not being able to pay their bills, fears for their own health, and fears for loved ones. They should not have to worry about their ability to access credit when this is all over. We warmly welcome the ABAs announcement that their customers credit reports will be quarantined from the impact of this crisis and we call on the rest of the finance industry to follow suit. I would like to thank brokernews for this article.

22.01.2022 Understanding the buying and loan process Purchasing a new home or an investment property can be a daunting prospect, and you might find it difficult to identify the first logical step. Here we look at the process of securing a loan so you can buy the property that suits your needs and your budget. Ask yourself what you want to achieve...Continue reading

22.01.2022 At Mortgage Advice we are currently working from home like many are. But here is our example of why we support clients getting solar panels. Its not just good for the environment, but it can be good for the wallet as well. Have a great weekend.

22.01.2022 I just came across this image in an article. It shows the increase in borrowing capacity for owner occupied loans based on the APRA changes yesterday. Once again just because you have access to extra funding doesn't mean you should necessarily use it. But if you do want to we can show you ways to minimize risk.

22.01.2022 Due to last nights storms we are having a few internet issues today. Please call us if you need to get in contact :)

21.01.2022 I saw this article today and thought it would make a good handy hint. If you do use your debit card, only use your spend account. Transfer money into it for making purchases and keep the balance at roughly what you need in the average week (for convenience). This will limit your exposure. Use Paypal or the like for online purchases where you can. As they have fraud prevention/insurance measures in place. By doing this weekly you will also have a good feel for where you are spending your money. https://www.cnbc.com//debit-cards-are-dangerous-warns-frau

21.01.2022 It was good to see the big 4 banks act quickly. and pass on the full 0.25%

21.01.2022 The RBA has dropped rates again by 0.25%. The decision, announced by RBA governor Phillip Lowe on 1 October, followed muted economic performance across key metrics, including employment, inflation and wage growth. Now to wait and see what the banks do !!

18.01.2022 COVID 19 Update: In line with government advice and actions to contain the spread of Covid-19, our team will be taking steps to minimise the risk to our staff, our community and to support our clients. We have now activated our Business Continuity Plan and from Tuesday 17 March we will implement work from home policy, cancel all non-essential travel and face to face meetings.... Our objective is to reduce health risks to our staff and community and to provide uninterrupted support to our clients. We don't intend to reduce level of service at all. We will utilise technology, systems and processes to ensure uninterrupted service while maintaining adequate levels of data security. Video calling is very accessible and we have multiple platforms we can use to meet with you. Stay healthy and do your bit to protect your family, friends and broader community.

18.01.2022 Taxes and red tape comprise half the cost of new house-and-land packages, according to research from the Centre for International Economics commissioned by the Housing Industry Association (HIA). The research found that 10% of government revenues come from housing taxes. According to the HIA, prices can reach as high as 50% of a house-and-land package in Sydney, 37% in Melbourne, and around 33% in Brisbane, Perth, and Adelaide. This was taken from MPA(mortgage Professionals Australia) Magazines website today. It not often I see the numbers worked out like this so I thought I would share :)

17.01.2022 P&I investment loan repayments vs negative gearing using interest only payments is a bit of a topic currently. As the interest rate on the I/O loans is higher than P&I loans. But it all boils down to your risk profile and strategy. But I still feel that you shouldn't buy an investment property for the tax deduction. The investment has to stack up. We are in a low interest rate and low growth environment with political factors around negative gearing. Which swings the argument towards P&I repayments. Cash flow is probably the most critical factor you will need to consider. At Mortgage Advice we are not allowed to make this decision for you, but we can advise of the pros and cons of each strategy. Let me know if you want to discuss in more depth.

14.01.2022 Great start to the week. We just got a 1st Home buyer Nurse her first home loan approval. Its a nice feeling helping the people that help us. Thanks also to our fire fighters who are currently doing an amazing job too.

13.01.2022 Australian RBA drops rates to a new historic low. I will be interesting to see how the banks deal with this. With some of the major banks suffering massive profitability drops they will likely have shareholder pressure to maintain as much margin as possible.

13.01.2022 Why rates are reducing when the RBA keeps the cash rate at 0.25%? [However] in a recent address by Deputy Reserve Bank Governor Guy Debelle, it was made clear that although the cash rate target has remained at 25 basis points, the actual cash rate traded in the market has reached around 13-14 basis points, which contributes to further reductions in funding costs. These costs are especially being reflected in the fixed rate market place. Where it looks like banks are paying (offering low rates) for customer commitment to hold or even increase market share. ANZ has recently been very aggressive with cash back offers and low fixed rate offers. Which hasn't helped their turn around times at all.

12.01.2022 The RBA has left rates on hold. Yet with many lenders having fixed rates lower than the variables rates I would be backing cuts at some point in the future (banks tend not to lose money of fixed rates). That said the fixed rates might be worth a look if you want a lower rate and the piece of mind of knowing what your repayments will be.

12.01.2022 Prevent A Nasty Property Surprise [Educational Blog Status Update]: HOMEBUYERS and real estate investors are being warned to watch out for the hidden traps that may be lurking in their potential purchases.... Leaky showers, cracked ceilings and self-opening doors and among the signs pointing to bigger and more costly nasty surprises, the Association of Building Consultants says. Spokesman Chris Short says understanding a buildings condition and the likelihood of future repairs is vital when assessing a property purchase and managing a mortgage. Many homes are tidied up for sale, with the pre-sale spruce ranging from a basic clean through to bogging cracks, repainting, retiling and re-grouting, and even new floor coverings, Short says. The makeover might look good, but it also masks what might be more sinister problems such as termite damage, salt damp, structural issues, unlicensed and dangerous electrical work, and more. For example, a leaky shower might seem harmless on the surface but if the leak is allowing water to flow into the soil next to your home, its likely to attract termites. Short says building inspections can be particularly valuable for investors who will not be living in the property they buy. You need to know it well so that youre clear about urgent maintenance requirements to meet your obligations as a landlord such as ensuring smoke alarms are hardwired and the cost of long-term maintenance, he says. Property academic and author Peter Koulizos says beginners should always consider a building inspection. He adds to make sure the report is a written one, rather than a verbal agreement. Some of my students have been able to negotiate the contract down by the repair amount or they have just pulled out, he says. Koulizos says when entering any property, potential buyers should take in a deep breath. If there is a musty smell, its a sign of salt damp, he says. Another thing to check is the perimeter of the house and make sure there are paths surrounding it. You can minimise cracking by keeping the moisture content of the soil fairly constant, Koulizos says. Paths around homes are not just there for decoration. HIDING A BIGGER PROBLEM? * Cracks in ceilings and walls are hallmarks of footings sinking or rising, which causes the walls to flex. * Other signs are doors out of square in their frames, self-closing and self-opening doors. * Leaking hot water services, rainwater tanks and airconditioning pipes can create moisture that attracts termites. * New floor tiles installed over old tiles can trap moisture between the tile layers. * Cracked tiles and mould at the shower base and plaster bubbling on the wall in the room next to the bathroom are also signs of moisture. * Any repair work to the buildings paths can provide an entry point for termites. Source: Association of Building Consultants

11.01.2022 Please note we are changing our website and hosting today/tonight. Our email maybe affected in the process for a small period of time. Please give us a call if an email bounces back. Have a great day

11.01.2022 The RBA has just acted again cutting the cash rate to 1.00%. Last month the decrease was only passed on by 2 of the big 4 in full. It will be interesting to see if the governments commentary from last month will have any effect on all 4 dropping the full amount. This is obviously good news for mortgage holders and not so good news for those with large cash savings. With the low interest rate environment looking to be with us for a while it might be time for those with cash to start looking at alternative options.

11.01.2022 While our government might be denying climate change. Insurance companies are not. ......... There is also a certain irony to writing this post while a large storm is heading my way. Stay safe people and try to have a great weekend.

11.01.2022 What happens when your fixed rate expires? Do you know when your fixed rate term is coming to an end? Once it finishes, the bank is free to quietly switch you to a higher interest rate unless you act fast! Think of how costly it could be if you simply let the bank choose your interest rate. If your bank charges you just 0.5% more than the competitive interest rates, this adds up to a significant amount over the term of your loan. You can save yourself a great deal of money... and perhaps even cut years of your loan, if you are proactive about monitoring your interest rates and choosing the right option for you. Switching to a variable rate A variable rate can be a great option if you want to take advantage of low interest rates, or if you want the flexibility to redraw or make extra payments. When your fixed rate term expires, the bank will automatically switch your loan to the Bank Standard Variable Rate (BSVR). Do some research to find out whether this is a competitive rate; if not, you can talk to your bank and try negotiating a better deal. And if they do not offer you a competitive rate, you can switch lenders. Lenders generally prefer to negotiate rather than lose a customer, while they dont generally make their best offers to customers with a proven history of loyalty. So when it comes to your interest rate, stay alert and ask questions keep your lender busy, trying to keep you happy! Extend your fixed rate One option is to ask the bank to refix your home loan, extending it for another one, three, five to ten years. The fixed rate is a good option for you, if you are planning to pay off your loan steadily over a long period of time, and you want each mortgage payment to be a regular amount so you can budget your money precisely. Fixed rate protects you from rate rises and you could be paying less than the variable rate. However, there is also the risk that you could end up paying higher than the market rate if you are locked into an outdated fixed interest term. There may also be a break fee if you change or pay off your loan within the fixed period; this means the fixed rate is not a good option for anyone planning to sell their home. Call us today if you need assistance pinpointing the best and most competitive option for you.

10.01.2022 For our CBA clients out there with more than 5kw of solar on the roof, CBA is offering $500. see here for more details https://www.commbank.com.au/latest/green-home-loans.html

10.01.2022 Where's your dream holiday destination?

09.01.2022 Did you know a lot of home owners overpay on their mortgage? Could a better deal put an extra $250+ per month back into your pocket? We offer a free Loan Comparison Service to see if switching could save you hundreds per month. Private message me today to get a free loan comparison!

09.01.2022 Happy new year to all. We are now back up and working here at Mortgage Advice. For those affected by the fires please let us know and we will help speak to the banks about relief. Even if you aren't a client of ours we are happy to help however we can. We know it can be painful to deal with banks and I have no doubt that you probably have other things to deal with. Please stay safe people and once again a massive thank you to all helping fight the fires and with the disaster relief.

08.01.2022 Given the temperature, fires and the fact we may melt outside we have decided to suspend face to face appointments for the rest of the week. We will be doing video meetings (Skype etc) in the interim. Have a great week and try to stay cool

08.01.2022 RBA has reduced the cash rate by 0.25%. Now to see what the banks do????

06.01.2022 As restrictions around the country are easing we cautiously optimistic that business will return to a more normal state of affairs. Though for the time being we are still preferring video meetings at this stage. Travel restrictions are also forcing this. Many of the banks have historically low fixed rates and high cash incentives to switch banks. As the market for new customers shrinks I expect the banks will be more aggressive with these offers in order to gain new customers that will stay with the bank in the medium term. The 3 year rates offered are quite impressive !! Staff safe and have a great weekend

06.01.2022 On a more serious note... (Like & Share if you had a laugh)

05.01.2022 Regardless of your political persuasion, its hard not respect what he did for the country.

03.01.2022 What's A Better Strategy To Access Equity: Take Out A Line Of Credit Or Just Top Up A Loan? [Long Blog Educational Status Update]: Lines of credit can be very useful; however, you need to be careful regarding an evergreen set-up in which no repayments are needed and the interest is added on to the loan....Continue reading

03.01.2022 In light of the recent budget announcement on changes to personal income tax rate thresholds. The lenders are starting to make changes to servicing calculators. Over the course of the next week or so I expect all lenders will make these changes. The calculators will includes the new tax rates, which will ensure your borrowing power is improved immediately, with increases to the: low-income tax offset (LITO) from $445 to $700... top threshold of the 19% personal income tax bracket from $37,000 to $45,000 top threshold of the 32.5% personal income tax bracket from $90,000 to $120,000.

03.01.2022 In a letter to ADIs issued today, the regulator confirmed it will no longer expect lenders to assess home loan applications using a minimum interest rate of at least 7%. Instead, ADIs will be able to review and set their own minimum interest rate floor and utilise a revised interest rate buffer of at least 2.5% over the loans interest rate. Over the last 2-3years access to credit has become much tighter due to stricter lending guidelines and oversight, improving the quality... of credit given. This should help restore the balance somewhat. Though it will be interesting to see how the individual banks instigate this . We will keep you posted. For our investor clients I believe this will have a positive impact on your lending capacities. Though obviously prudence should still lead the way.

02.01.2022 The RBA has just reduced the cash rate by 0.25%. A new record low. The contributing factors being slow economic activity, the bush fires and COVID-19 virus. Some economists are predicting that this might be the first of 2 rate reductions. Now to see how the banks respond!!

02.01.2022 The latest ABS housing finance data shows the portion of housing finance for the purchase of property lent to investors fell to a fresh record low of 23.5% in August. This is significantly lower than the decade average of 36.1%. The decline of the property investor has been brought about by multiple factors. These include: temporary policies implemented between 2014 and 2019, which limited lending products favoured by investors. ... mortgage rate premiums for investor loans, usually 0.20% or more (can be 0.50% higher) above the equivalent owner occupied rate. less appetite for high LVR and interest only lending from the banking sector. less certainty around prospects for capital gains; high levels of housing construction which have softened rental returns. the recent global pandemic, which has created a particular negative demand shock to the rental market, thereby further inhibiting returns.

02.01.2022 How To Make An Offer In Writing To Buy A Property Here is an email template you can use to make an offer on a property you are interested in buying. ======EMAIL OFFER TEMPLATE======... To whom it may concern, I would like to make an offer on _______St ______ for $.. My preferred settlement time would be Weeks. This offer is subject to finance approval, my solicitor reviewing the contract and any Strata reports and or building and pest inspections I may carry out. ======= EMAIL OFFER TEMPLATE====== Best of luck... and if you need any ideas on finance, 2nd opinion or a pre-approval to go shopping... message me today for a complimentary chat.

01.01.2022 When applying for loans one of the biggest challenges is getting up to date loan and bank statements. Currently we have 2 options. 1)Would you prefer to supply banks 6 months statements for all of your accounts (either in PDF or hard copy)? you organise these yourself. 2)Or would you be happy to use a bank statement app? you use these to securely log into your internet banking and all of the details are pulled into a report for your bank or lender. The apps are support...ed by the banking industry and regulators. But I would like your thoughts on this as there are now more people in the industry pushing to only use option 2. But I am curious to see your responses and feel free to make comments about privacy etc.