The Finance Co. Perth in Perth, Western Australia | Loan service

The Finance Co. Perth

Locality: Perth, Western Australia

Phone: +61 8 6268 0130

Address: 1/58 Kishorn Road 6153 Perth, WA, Australia

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25.01.2022 Five signs youre ready to stop renting and buy a home Not sure if its the right time to spend your hard-earned money on a home deposit? These signs might indicate youre ready to stop renting and take the plunge. 1. You want an asset that may grow in value over time... This is whats known as capital growth. If your property value increases, so does your equity, which is the difference between your propertys value and what you owe on your home loan. Down the track, you could potentially use this equity for other things like further investments, home renovations, or as a deposit for your next home. 2. You want more stability If you buy your own home, theres no risk that a landlord will tell you to move out. Whats more, owning a home can offer additional security in retirement, as you wont need to worry about paying rent after you stop working. 3. You want to make a home your own Buying a home means you have freedom to make changes to it. You can mount a TV on the wall, update the carpet or recreate that gallery wall you saw on Pinterest. 4. You can afford the mortgage repayments and ongoing costs Home loan repayments might be more affordable than you think. Compare the repayment estimates to what youre currently spending on rent and you might be surprised to find there may not be that much of a difference. Keep in mind that there are some ongoing costs involved in buying a home that you dont need to worry about when renting, like council rates, strata fees and property upkeep. 5. Covering the deposit and other upfront costs is doable Generally, you need to have a deposit of at least 20 per cent of the property purchase price, and be prepared for the other upfront costs of buying a home, like stamp duty, insurance and inspections. Our home loan fees calculator can give you an idea of what they add up to. But covering a deposit might be more doable than you think. Find out more about how much deposit you need, including what to consider if you want to make a deposit thats smaller than 20 per cent. Or how about buying and renting at the same time? If you cant afford to buy a property in an area you want to live or youre not ready to put down roots, you might like to consider something called rentvesting. This involves living in a rental property while buying an investment property in a more affordable area. Before you take the plunge Buying a home is a big decision and theres a lot to think about first. The Finance Co Perth can answer any questions and talk you through whats possible. Credit: RIEWA

24.01.2022 Everyone looks forward to Christmas and the summer holiday season. After all, tis the season to be jolly. To indulge in festive fare. To get out in the great outdoors and enjoy quality time with family and friends. But this year, it could also be the right time to buy a home. Here are 5 reasons why clever property buyers are considering making a purchase this holiday season. Motivated sellers Spring is one of the busiest times of year in Australias property markets. Thats ...Continue reading

23.01.2022 Interest rate announcement . . . .... #rba #interestrate #australia #announcement #unchanged #finance #loans #banks #lending #investor #finance #borrow #homeloans #carloans #thefinanceco #broker #personalloan #holiday #thedifference See more

23.01.2022 Housing finance tumbles again, building industry calls for government to act. Australian Bureau of Statistics (ABS) figures show a dramatic drop in new housing loans. The new ABS Lending to Households and Business figures show the total value of new lending to households dropped 19.8 per cent from December 2017 to December 2018....Continue reading

21.01.2022 Reserve Bank keeps cash rate on hold but expect another cut this year TRENT WILTSHIREAUG 6, 2019 The Reserve Bank has held off cutting interest rates at its August meeting. The cash rate will remain at 1 per cent for the time being, but its almost certain the Reserve Bank will lower interest rates further in 2019 after cuts in June and July....Continue reading

20.01.2022 Is there still relevance in RBA rate watching? Over the past month, we have seen a shift in cash rate predictions for 2019 from economists. Some see it holding throughout the year, some anticipate one 0.25 of a percentage point cut, and Westpac is now projecting two 0.25 of a percentage point cuts to reach 1.00 per cent by year-end. Looking at these forecasts from a mortgage holders perspective, does it still matter if the RBA holds or cuts the official cash rate, given Aust...Continue reading

18.01.2022 Its been nearly eight years since the Reserve Bank of Australia (RBA) last raised the countrys official cash rate. Interest rates have been at historical lows for quite some time and as a homeowner, you may never have experienced an official rise in interest rates. At present, interest rates remain low and we expect them to stay that way for a while. However, forecasters predict Australias economy will continue to strengthen over the next 12 months and as it does, an RBA...Continue reading

17.01.2022 "No good news" in latest housing finance figures The number of home loan approvals fell by 0.9 per cent in November, and economists warn the weakness in the housing market is likely to be felt for some time. There seems to be no sign of a turnaround in the housing market, with tougher lending standards continuing to put pressure on loans for owner-occupiers....Continue reading

17.01.2022 Using an offset account to help pay your mortgage faster There are lots of smart things you can do to help pay off your mortgage faster. One way is to be strategic with the way you do your everyday banking by switching to an offset account. Here, we give you some tips to help you make the most of an offset account. Whats an offset account?...Continue reading

16.01.2022 Surge in home loan applications for CBA following election Commonwealth Bank CEO Matt Comyn said the bank was already starting to see the results of a shift in consumer sentiment following the federal election. The post-election buzz surrounding Australia's property market has resulted in the Commonwealth Bank's strongest week for loan applications in more than six months, according to CBA CEO Matt Comyn.... Mr Comyn said while it was difficult to read too much into results from such a short time frame, the developments following May 18 had clearly impacted lending activity. "I use some of this data with caution because it is only one week and one week doesnt make a trend, but we definitely saw in parts of the economy that we see quite a strong rebound," he said. "I think in particular at the moment, quite rightly, there is a strong interest in property." At a glance: CBA CEO Matt Comyn said the bank has had its strongest week in applications for more than six months. In the week following the election, APRA decided to remove its 7 per cent serviceability buffer on home loans and the RBA hinted it was going to cut the national cash rate at its next meeting. Mr Comyn made the comments following his address to the Trans-Tasman Business Circle on Tuesday. The removal of election uncertainty from the property market was followed by APRA's decision to remove its 7 per cent serviceability buffer on home loans, and growing speculation that the RBA would make multiple cuts to the national cash rate throughout this year. Mr Comyn said the changing landscape could be seen in the number of applications coming through to the CBA. "We did have the strongest week in applications that we have seen in more than six months," he said "It did feel certainly from a demand perspective there is quite a shift in sentiment." Related Reading: Speculation grows that RBA will deliver industry trifecta Mr Comyn made the comments following his address to the Trans-Tasman Business Circle on Tuesday. During his speech, he reflected on APRA's inquiry into the bank's operations, vowing to deliver better outcomes for customers going forward. "We have made some really proactive choices about what products and services we want to offer our customers, how we want to bring those to market, and what fees we would like to charge," he said. "We have also made real investments in and around transparency, to make sure that our customers feel that we are delivering good value and better outcomes for them." Credit: The realestate conversation

16.01.2022 RBA hands down November cash rate call The Reserve Bank of Australia (RBA) has announced its decision on the official cash rate for November, amid speculation the next rate reduction will be February 2020. The Reserve Bank of Australia (RBA) has announced its decision on the official cash rate for November, amid speculation the next rate reduction will be February 2020. Despite the Federal Reserves recent reduction of official rates to between 1.5-1.75 per cent the central b...ank has not lowered the cash rate domestically. In the lead up to todays decision, comparison site Finder had surveyed 45 of the nations leading economists and commentators, and found a majority expecting a rate cut to be held off until February next year. ANUs Alison Booth was not surprised by today's announcement, expressing the belief that the Australian economy is strong enough to hold at its current rate. "Interest rates have just been lowered and I don't think the fundamentals yet warrant any further change, she said. Becoming more bullish on the economy prior to the announcement was AMP Capitals Shane Oliver, who believes the market is currently having a gentle upswing. "While September quarter inflation was low and economic data has generally remained soft, recent RBA commentary highlighting a gentle upturn in growth and greater tolerance for low inflation suggests a lack of urgency to ease for now," he said. Despite todays unchanged rate, Finders survey has foreshadowed even lower rates in the future, with 64 per cent of economists predicting a rate cut in 2020. Finders insights manager Graham Cooke said despite the rate falling from 1.50 per cent in May to a predicted 0.50 per cent by February 2020, the general consensus is that the RBAs cuts have had little impact so far. Fears of a recession While further rate reductions wouldnt inspire the markets with confidence, 69 per cent of the economists surveyed in the lead up to todays announcement indicated a future recession is unlikely or very unlikely. Consumers are not as confident - 50 per cent expect a recession within the next 12 months. Noting this worry, more than half of the economists do (56 per cent) think households are holding back on spending in fear of recession. Mr Cooke said there is recession talk at large, both domestically and internationally. While slow wage growth and underemployment seem like cause for concern for consumers, Australian economists can see the light at the end of the tunnel, he concluded. Credit: Real Estate Business

16.01.2022 Getting ready to buy your first home? As your mortgage broker, were here to help you every step of the way. Its an exciting time and its easy to make mistakes. Here are 5 common mistakes that you should try to avoid! 1. Relying on advice from family and friends Family and friends are people you can trust, so its understandable that you listen to their advice. However, while they may have the best of intentions, its always best to seek independent professional advice when...Continue reading

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14.01.2022 Home loan borrowers no longer complacent, says report The Lendi Home Loan Report highlights that homeowners who settled with a non-big four lender in 2019 have signed up to loans with median interest rates between five and 22 basis points lower than borrowers settling with a big four bank. Australian borrowers are making big savings by securing finance with smaller lenders, according to the recently released Lendi Home Loan Report....Continue reading

12.01.2022 Good news for homebuyers and renters in latest CPI figures Australias consumer price index update, released on Wednesday, has exceeded economists forecasts, rising by a solid 0.5 per cent in the December 2018 quarter. The quarterly inflation figures can heavily sway the Reserve Bank's decision to hike or slash interest rates. ... While the result may be weaker than the Reserve Bank's mandate to keep inflation levels between 2 and 3 per cent, the outcome does mean the RBA will be hesitant to increase interest rates. The figures were welcomed by the Real Estate Institute of Australia (REIA) who said the results would likely keep interest rates at "historically low rates". The CPI figures show that the increased investment in housing has kept growth in rents at the lowest rate since 1995 and, as we enter an election year, is clear testament that the current taxation arrangements benefit renters and that any change in the treatment of negative gearing and capital gains tax would see an increase in rents," REIA President Adrian Kelly said. Pictured: The Reserve Bank of Australia. Image via WikiCommons. He told WILLIAMS MEDIA home buyers can feel good about the results. With the RBA meeting next week home buyers can be comfortable in the knowledge that the latest inflation data together with a cooling in the housing market would suggest that the RBA will hold official interest rates stable for some time yet, Mr Kelly said. Acting Principal Economist for the Housing Industry Association, Geordan Murray says it's extremely unlikely interest rates will rise. "It is unlikely that the RBA will make any changes to the official cash rate any time soon, given the subdued rate of inflation and underutilised capacity within the labour force," he told WILLIAMS MEDIA. Mr Murray said the RBA's cautious approach is tied to the pending fallout of the Financial Services Royal Commission. "The Royal Commission is yet to make recommendations and then we dont know which of the recommendations the government will adopt or how any changes will be implemented. There may be major changes or there may be minor changes and the RBA will be assessing a range of potential scenarios. "At the moment, the RBA will be assessing the extent to which the process of the Royal Commission itself has had an impact on lending activity. In their recent communications, the RBA has noted a tightening of credit conditions," Mr Murray told WILLIAMS MEDIA. Credit: The real estate conversation

12.01.2022 APRA is revising its 7 per cent mortgage serviceability floor ELIZA OWENMAY 21, 2019 The statutory authority APRA released a letter to authorised deposit taking institutions (banks) on Tuesday. The letter outlined that they would be making changes to serviceability assessment.... Serviceability assessments are used to make sure borrowers can repay their loans under different circumstances: for instance, if banks have to increase mortgage rates. In 2014, when household debt and property prices were rapidly rising, APRA introduced a mortgage rate floor of 7 per cent, or a buffer of 2 per cent above the mortgage rate being offered. Banks were to use whichever was higher. This meant that regardless of the cash rate or standard variable rate at the time of applying for a loan, banks would assess a borrowers ability to repay a loan at a mortgage rate of at least 7 per cent. But there are a couple of reasons APRA now thinks this floor may be a bit over the top. The first is that interest rates are expected to stay lower for longer. Low inflation and wages growth and a softening labour market has meant that expectations for the cash rate have been revised down. Because the cash rate is a main determinant of mortgage rates, it is also expected that residential mortgage rates will also stay low for longer. If APRA kept its 7 per cent floor in place, the gap between actual mortgage rates and the serviceability floor could become unnecessarily wide. The second is that the price of different mortgage products is now more varied than 5 years ago. Average outstanding securitised mortgage rates suggest that owner occupiers on a principle and interest repayment plan have lower mortgage rates so a blunt serviceability floor of 7 per cent may be unnecessarily high. But, there is a tradeoff to make sure lending stays prudent. APRA will require banks to assess a borrowers serviceability at 2.5 per cent above a mortgage product rate, which is an increase from the current 2 per cent buffer. It is worth noting however, most ADIs were using a buffer above 2 per cent anyway. According to the letter sent to ADIs Tuesday, these changes could be implemented as soon as practicable after a consultation period which closes on the 18th of June. This is big industry news, because it could potentially increase the maximum amount people can borrow. As noted in previous research, movements in the volume of mortgage lending is one of the leading indicators of house price movements. Therefore, a pick up in mortgage lending, enabled by eased assessment criteria, could point to property prices stabilising, or even increasing earlier than anticipated. Credit: Domain

11.01.2022 How to secure a home loan amid tough lending Banks may have tightened their lending practices, but you can still secure a home loan. According to Peter Camphin, the director of strategic partnerships at LoanMarket, there are two vital points that determine whether homebuyers can borrow enough to buy their next home....Continue reading

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07.01.2022 Everything you needed to know about the First Home Owners Deposit Scheme The Government has released details of how first home buyers can get themselves into the real estate market. First home buyers will be able to make the next step to buying their own home, thanks to the Government's election promise of a loan deposit scheme for those who have saved a five per cent deposit.... The Government will guarantee, through the First Home Buyers Deposit scheme, the next 15 per cent of the deposit, however, participants will still need to borrow the 95 per cent of the loan but will avoid Lenders Mortgage Insurance. Participants, however, will have to be quick to qualify as the scheme is limited to 10,000 loans each financial year, starting from 1 January, 2020. Other criteria include having a taxable income up to $125,000 a year for singles and $200,000 a year for couples. At a glance: * Singles earning up to $125,000pa and couples earning up to $200,000pa will be eligible * The scheme is limited to 10,000 loans each financial year * The scheme will start from 1 January, 2020 for those who have saved up to a 5 per cent deposit Ken Morrison, Chief Executive of the Property Council welcomed the details. Prospective first home buyers now have all of the information they will need to understand their eligibility for the scheme which will be available for 10,000 loans in its first year." Its pleasing to see the Government moving ahead on the delivery of this initiative which is due to come into effect from 1 January 2020. The scheme is targeted to helping first home buyers bridge the deposit gap which continues to be a significant hurdle to home ownership, even with the recent softening in house prices. Mr Morrison said the Government is getting the balance right between helping genuine first home buyers while also recognising the variations in markets around the country, and between metropolitan and regional areas through the setting of price caps for eligible property purchases. Mr Morrison said the scheme comes at a time of declining construction levels for new housing which has an impact on jobs, housing affordability and supply. The Scheme complements other Coalition Government initiatives to reduce pressure on housing affordability in Australia and support local communities. This includes: The First Home Super Saver Scheme which helps Australians build a deposit for a first home inside their superannuation fund by making voluntary contributions. You can read more about the First Home Buyers Deposit Scheme from the Government Credit: The Real Estate Conversation

05.01.2022 Three budgeting tips for first time renters Standing on your own two feet, renting for the first time and paying your own way can be a daunting prospect. But if you can budget and keep track of your finances, the sense of accomplishment and freedom is worth the effort. It might take a little time to figure out what works for you when creating and sticking to your budget, but theres a basic formula to follow. Here are three easy budgeting tips to get you started. ... 1. Workout your household income Whether youre living alone off one income, combining pay cheques with your partner or splitting expenses with a housemate, the first thing you will want to do is work out your household income. Your household income may include your pay cheque from work, investments and government allowances, such as youth allowance. Once you have worked out your monthly income, you can start planning your budget and deducting the necessary expenses. 2. The necessary expenses From your household income, set aside money for the necessities you will need to pay each month, including your rent of course. Although different for everyone, necessary expenses can include: Insurance (home, health and car) Utilities (water, gas and/or electricity) Phone and internet connection Car loan repayments Public transport Prescriptions Groceries Write a list of the essentials you need to keep yourself and your household going - the basic necessities you can easily expect to pay each month. Typically, you will spend around 50 per cent of your income on these expenses. However, aim to spend no more than this percentage to ensure you have money left over for savings and unexpected costs that might crop up during the month. This could mean shopping around for the best deals on insurance or being savvy with your grocery list to keep expenses low. Speak with a financial advisor to work out the best way to pay for these expenses, such as setting up an automatic transfer, to ensure youre covered and never miss a payment. 3. Spending money With your monthly income and necessary expenses worked out, you now have pocket money left over to enjoy the finer things in life. But dont forget about your savings. Be sure to set aside some money for a rainy day to cover yourself for incidents, such as a car breakdown or accidental damage to your rental property. You may also wish to squirrel away some cash for a holiday or even your very own house down the track, whatever your goal may be. If you need some help saving, speak to your bank about setting up a separate account which cannot be withdrawn from online or via an ATM. This article was originally published on reiwa.com. You can find the original article here https://reiwa.com.au//three-budgeting-tips-for-first-tim/

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