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Low Deposit Loan Assistance for More Home Buyers

October 16, 2023

The Australian Home Guarantee Scheme (HGS) is a government initiative that helps eligible borrowers purchase a home with a smaller deposit. The scheme was introduced in 2019 and has been expanded several times since then.

On 1 July 2023, a number of changes to the HGS came into effect, including:

Permanent residents are now eligible. Previously, the HGS was only available to Australian citizens. However, from 1 July 2023, eligible borrowers who are Australian permanent residents will also have access to the scheme.
Joint applications are now allowed. Previously, only single applicants were eligible for the HGS. However, from 1 July 2023, two eligible individuals can now apply for the scheme together. This is a welcome change for couples and friends who are looking to buy a home together.
Previous home owners can now apply. Previously, only first home buyers were eligible for the HGS. However, from 1 July 2023, eligible borrowers who have previously owned a home can also apply for the scheme, as long as they have not owned a property in the past 10 years. This is good news for people who are looking to buy a new home after selling their previous one.

In addition to these changes, the HGS has also been expanded to include 10,000 new places for eligible single parents with at least one dependent child who have a deposit of as little as 2%.

These changes to the HGS make it more accessible to a wider range of borrowers. If you are thinking about buying a home, it is worth checking to see if you are eligible for the scheme.

Can I apply for the Home Guarantee Scheme if I have previously owned a home?

Yes, from 1 July 2023, eligible borrowers who have previously owned a home can apply for the HGS, as long as they have not owned a property in the past 10 years.

This is good news for people who are looking to buy a new home after selling their previous one, or for people who have previously owned a home but have since separated or divorced.

To be eligible for the HGS, you must also meet the following criteria:

You must be an Australian citizen or permanent resident.
You must be at least 18 years old.
You must have a deposit of at least 5% (2% for the Family Home Guarantee).
You must intend to be an owner-occupier of the purchased property.

If you are interested in applying for the HGS, you should contact a participating lender.

What are the benefits of applying for the Home Guarantee Scheme?

The main benefit of applying for the HGS is that you can purchase a home with a smaller deposit. This can make it easier and more affordable to buy a home, especially in expensive markets.

In addition, the HGS can help you to avoid paying lender’s mortgage insurance (LMI). LMI is a type of insurance that protects the lender in case you are unable to repay your loan. However, it can be expensive, so avoiding LMI can save you a significant amount of money.

How can I apply for the Home Guarantee Scheme?

To apply for the HGS, you must contact a participating lender. A participating lender is a lender that has agreed to participate in the scheme.

You can find a list of participating lenders on the National Housing Finance and Investment Corporation (NHFIC) website.

Once you have contacted a participating lender, they will be able to help you to assess your eligibility for the scheme and to apply for a loan.

Conclusion

The Australian Home Guarantee Scheme is a great way for eligible borrowers to purchase a home with a smaller deposit. The recent changes to the scheme make it more accessible to a wider range of borrowers, including permanent residents, joint applicants, and previous home owners.

If you are thinking about buying a home, it is worth checking to see if you are eligible for the HGS by contacing your Origin Finance Broker by calling 1300 30 6767 or filling in the enquiry form on this page.

When mortgage stress strikes, here’s what to do about it

October 5, 2023

Mathew Elmas|The New Daily| 11 August 2023

How to tell if you’re in mortgage stress and what to do about it (thenewdaily.com.au)

If you’re like millions of other home owners across Australia, you’ve probably had to make room in your monthly budget for massive increases in mortgage repayments over the past year or so.

A series of RBA hikes has added more than $1000 to monthly bills for a typical $500,000, 25-year home loan since May 2022, leaving many people on the brink of mortgage stress.

And it’s about to get a whole lot worse for many, with an oft-cited fixed rate mortgage cliff now upon us, threatening to throw hundreds of thousands more people onto higher repayments.

CoreLogic research chief Eliza Owen says about 880,000 fixed rate loans will expire this year and 440,000 next year – moving people off the COVID-19 era’s record low rates.

She said a household with a $550,000, 30-year loan could see repayments jump from $2017 a month to $3175 – a 60 per cent increase. More Australians are facing mortgage stress due to rising rates, here’s what to do about it.

If you’re like millions of other home owners across Australia, you’ve probably had to make room in your monthly budget for massive increases in mortgage repayments over the past year or so.

A series of RBA hikes has added more than $1000 to monthly bills for a typical $500,000, 25-year home loan since May 2022, leaving many people on the brink of mortgage stress.

And it’s about to get a whole lot worse for many, with an oft-cited fixed rate mortgage cliff now upon us, threatening to throw hundreds of thousands more people onto higher repayments.

CoreLogic research chief Eliza Owen says about 880,000 fixed rate loans will expire this year and 440,000 next year – moving people off the COVID-19 era’s record low rates.

She said a household with a $550,000, 30-year loan could see repayments jump from $2017 a month to $3175 – a 60 per cent increase.

“Average fixed rates with terms of three years or less bottomed out at 1.95 per cent in May 2021 for owner occupiers, while average variable rates for new owner occupier borrowers are now 5.66 per cent,” Ms Owen said.

But how do you tell whether such increases in your monthly bills will land you in mortgage stress?

And what should you do if you are struggling to keep up with higher repayments?

Are you in mortgage stress?

More than a million Australians are estimated to be at risk of mortgage stress right now, according to the latest Roy Morgan figures, so if you are struggling you aren’t alone.

5 trends to watch in the housing market this spring

October 4, 2023

Cameron Kusher| RealEstate.com.au| 22 September 2023

5 trends to watch in the housing market this spring – realestate.com.au

The housing market has been unexpectedly resilient this year in the face of significant increases in mortgage interest rates.

After a turbulent 2022, property prices had been expected to continue falling this year, but this has not been the case.

Sales volumes rebounded early in 2023 and remain strong, and prices have risen every month as limited stock on market has heightened demand.

With September marking the start of the spring selling season and conditions stronger than at the start of the year, this spring looks set to be busy.

Here are the trends shaping the property market.

More properties for sale

We know that spring typically sees an increase in new listings, however, spring last year never sprung.

Fast forward to this year and new listings in Sydney and Melbourne started to lift well before spring, after being persistently low for around a year.

Change in new listings on realestate.com.au in August 2023 compared to August 2022

We expect momentum in market activity to continue in Sydney and Melbourne, at least initially.

It will be important to monitor whether the lift in new listings in Sydney and Melbourne carries through the entirety of spring or if new listing activity slows before the end of the selling season, given it kicked-off earlier.

Interest rates at, or near, peak

Borrowers have faced rapidly rising interest rates since May of last year, however, official interest rates have remained unchanged over the past three months.

It’s likely rates are at or near their peak, though they may still rise again in the future.

For people buying or selling real estate, the pause in interest rates affords more certainty.

Even though borrowing costs have significantly increased, certainty around mortgage costs is likely to increase the willingness of buyers and sellers in this market, boosting activity.

More favourable conditions for buyers

Property prices were expected to fall throughout this year given borrowing capacities have reduced by around 30% since the interest rate hiking cycle began, but that has not come to fruition.

Instead, we have seen a low volume of stock for sale, a significant increase in sales activity and more people actively looking to purchase.

More properties are hitting the market this spring, potentially slowing price growth as the supply and demand ratio rebalances. Picture: Getty

If supply increases, this could result in slower price growth or even some price falls.

More stock for sale means more choice for buyers and potentially less urgency to purchase, especially if buyers are expecting more options will come to market over the coming months.

Housing affordability to worsen

National housing affordability is at its lowest level since 1995, and with many homeowners still rolling-off fixed-rate mortgages at around 2% and resetting to mortgage rates closer to 6%, they will have to dedicate a lot more of their income to servicing their mortgage.

For some borrowers this significant increase in mortgage repayments may result in them having to sell their properties.

Home prices are broadly expected to continue climbing this year, diminishing the supply of cheaper housing and further deteriorating affordability.

Will rents continue to climb?

Although rents have increased substantially over the past year in most major capital cities, the rate of rental price growth has been slowing over recent months.

It’s unclear if rental affordability has stretched too far to rise further or if this slowing is temporary.

During the pandemic, average household sizes shrunk and people flocked to houses over units. Fast forward to today and the gap between the cost of renting a unit and a house remains wider than it was pre-pandemic.

Given this, renters are likely to look for cheaper alternatives which initially may be a unit but may end up being a share house.

Rents will likely continue to climb across the major capital cities but not to the magnitude that they have been rising over the past year. Furthermore, we may continue to see rental growth for houses lag that of units.

Cautious optimism as RBA holds interest rates for second straight month

August 16, 2023

Cautious optimism as RBA holds interest rates for second straight month – realestate.com.au

Sarah Dowling~ Realestate.com.au~ 1 August 2023

The Reserve Bank of Australia has held interest rates steady for a second straight month, giving borrowers hope the central bank has reached the end of its tightening cycle.

At its August board meeting on Tuesday the RBA kept the official cash rate at 4.1% – where it’s remained since June – as inflation continues to track lower and household spending slows.

“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” RBA governor Philip Lowe said in a post-meeting statement, the second last before his term ends in mid-September

“In light of this and the uncertainty surrounding the economic outlook, the board again decided to hold interest rates steady this month. This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook.”

Since reaching a peak of 7.8% in the December 2022 quarter, the annual rate of inflation has been cooling faster than expected with the latest Consumer Price Index easing to 6% in the June 2023 quarter, down from 7% in March.

While that’s still well above the RBA’s 2-3% inflation target, updated forecasts released Tuesday predict CPI will ease to around 3.25% per cent by the end of 2024 and to be back within the target range in late 2025.

PropTrack senior economist Eleanor Creagh says that takes some pressure off the RBA, allowing more time to assess the outlook as it tries to engineer a soft landing whilst returning inflation to target.

“Though still high relative to history and well above the RBA’s 2-3% target range, CPI inflation was below both market expectations and the RBA’s official forecasts and looks set to continue to moderate and move lower into the first half of 2024,” Ms Creagh said.

“Despite the tight labour market, with the unemployment rate holding at a multi-decade low of 3.5%, and still rising services inflation, the full impact of recent rate rises is yet to be felt and we’re likely to continue to see inflation moving lower.”

But the RBA still hasn’t closed the door to future rate hikes if inflation takes too long to return to target, saying the priority is to return inflation to target within a reasonable timeframe.

“The recent data are consistent with inflation returning to the 2–3% target range over the forecast horizon and with output and employment continuing to grow. There are though significant uncertainties.” Mr Lowe said

Home prices now higher than a year ago

With interest rates now widely tipped to have peaked, Ms Creagh says confidence is returning to the property market – setting the stage for a strong spring selling season.

The latest PropTrack Home Price Index rose for a seventh consecutive month in July, reversing much of the falls recorded over 2022, and taking national home prices 1.36% higher than a year ago.

During the month, the value of an average Australian home lifted by 0.16% to a median $748,000.

Ms Creagh says home prices are now just 1.44% below the March 2022 peak nationally, with some capital cities reaching new record highs.

“Stronger housing demand and a limited flow of new listings hitting the market have offset the impact of substantial interest rate rises that have been pushed through since May 2022,” she said.

“Although total stock on market has increased slightly, the flow of new listings has remained soft in recent months, leading to increased buyer competition and solid selling conditions with prices continuing to lift.”

All capital cities except Darwin and Canberra saw prices rise in July, led by Adelaide where prices grew 0.62% to an all-time high of $676,000. Brisbane and Perth also set new peaks with prices up 0.37% and 0.36% respectively.

Sydney prices recovered a further 0.28% to a median of $1,046,000, sitting just 2.22% below the February 2022 peak, while Melbourne inched up 0.01% to a median $805,000.

“Melbourne’s recovery has not been nearly as sharp as Sydney, though it did not see as large a decline in 2022,” Ms Creagh said.

“As a result, prices in Melbourne are still 4.91% lower than the March 2022 peak and 1.3% lower than a year ago.”

Hobart prices rose 0.21% to $680,000 in July but remain down 6.6% from the March 2022 peak.

“However, this comes after several years of outperformance as well as strong growth during the pandemic. Home prices in Hobart are still up 38.3% since March 2020,” Ms Creagh said.

Strong lead in to the spring selling season

While winter is traditionally a quiet period for the property market, limited stock and unseasonably high buyer demand in some cities and regions is putting sellers in a prime position ahead of spring.

“Given limited new stock is coming to market, buyer interest is being concentrated, leading to increased competition and solid selling conditions that are seeing prices continue to lift,” Ms Creagh said.

“Seven months of price rises that have gathered traction across markets could also be drawing buyers off the sidelines.”

She says while the full impact of recent rate rises is yet to be felt, broader market activity suggests confidence is returning.

“Sales volumes have increased, auction activity has strengthened, and auction clearance rates are holding firm,” Ms Creagh said.

“Many buyers and sellers anchor expectations from recent momentum, which can embed trends in market, with buyers likely comforted by greater certainty around economic activity, continued low unemployment and talk of the interest rate rise cycle reaching a peak.

“This is likely to sustain confidence and maintain the lift in home prices into spring, resulting in more markets returning to positive annual price growth.”

Have interest rates peaked?

There’s cautious optimism that we may have reached the peak of the interest rate cycle, with the RBA holding interest rates at 4.1% since June 2023 – the longest pause since it began raising the cash rate in May 2022.

While financial markets expect the cash rate has peaked, economists are divided over whether one more increase is needed.

ANZ is forecasting an ‘extended pause’ at 4.1% until late 2024, when it says the RBA will start to cut interest rates.

Economists at Westpac and CBA had anticipated one final rate hike in August, to take the cash rate to a peak of 4.35%.

NAB has not ruled out one or two more rate hikes, but expects sharp falls from mid-next year will take the cash rate to 3.1% by December 2024.

Modelling from realestate.com.au shows a reduction in the cash rate from 4.1% to 3.1% would free up around $327 a month for a borrower with $500,000 outstanding on their mortgage, assuming their lender passes any cuts on in full.

Increase to monthly repayments since May 22:

In these calculations, the borrower is assumed to be an owner-occupier paying principal and interest with 30 years remaining on their loan. It assumes an initial average variable interest rate of 2.86%, according to April 2022 RBA figures. The calculation does not factor in loan fees and charges, or any principal paid down over time.
Loan size	4.1% cash rate	3.1% cash rate	Difference
$500,000	$1,209	$882	$327
$750,000	$1,814	$1,323	$490
$1,000,000	$2,418	$1,765	$653

Mortgage Choice CEO Anthony Waldron says while the latest pause will be welcome news for borrowers, that didn’t stop the nation’s lenders from lifting rates on some fixed- and variable-rate home loan products last month.

“It’s not yet clear if the Reserve Bank will keep the cash rate on hold for an extended period, but with rates already having increased so rapidly since May last year, borrowers with fixed rates ending soon and those looking for a better deal should speak to a mortgage broker to understand their options,” Mr Waldron said.

Interest rates may have peaked: what it means for property

August 16, 2023

Interest rates may have peaked: what it means for property – realestate.com.au

Sarah Dowling~ Realestate.com.au~ 2 August 2023

A growing number of economists say the next move on interest rates will be down after the Reserve Bank of Australia kept interest rates unchanged for a second straight month.

The predictions come as buyers and sellers gear up for the traditionally busy spring selling season, with a renewed sense of certainty expected to support activity – and prices – in the months ahead.

At its August meeting, the RBA held the cash rate steady at 4.1%, where it has sat since June, marking the longest pause since rates began rising from a record low of 0.1% in May 2022.

In announcing the decision, RBA governor Philip Lowe didn’t rule out further increases but said it would depend on how inflation and the economy evolves.

The wait-and-see approach prompted several economists to update their forecasts, with CBA and Westpac joining ANZ and AMP on the view that interest rates have now peaked.

Westpac chief economist Bill Evans says the next challenge for the outlook should now be the timing of the first rate cut.

“The next move is now likely to be the first cut in the cycle which is forecast for the September quarter of 2024,” Mr Evans said.

CBA expects the first move will come much sooner, anticipating a rate cut in each quarter from March 2024 to take the cash rate back to 3.1% by the end of 2024.

“We expect the economy to have slowed, inflation to have moved down closer to target and the labour market to be softening to prompt the start of the easing cycle,” CBA senior economist Belinda Allen said.

“This would imply a 9 month gap between the last rate hike, i.e. June 2023, and the first rate cut under the new RBA Board meeting timetable.”

Here’s where some leading economists see interest rates moving over the coming year:

Who	Cash rate end-23	Forecast horizon
CBA	4.1%	First cut Mar 24, falling to 3.1% end-24
Westpac	4.1%	First cut from Sept Qtr 2024
NAB	4.35%	3.35% end-24, falling to 3.1% early-25
ANZ	4.1%	Extended pause at 4.1%
AMP	4.1%	Four cuts through 2024, starting in Feb

While the consensus is that interest rates have peaked, NAB expects the RBA will move once more to ensure inflation remains on track to return to its 2-3% target range by mid-2025.

At 6%, inflation was still running at more than double the RBA’s target over the year to the June quarter.

“Following the RBA’s decision to keep rates on hold at 4.1% for a second consecutive month, we now see only one more increase this cycle, taking the cash rate target to a peak of 4.35%, previously 4.6%,” NAB chief economist Alan Oster said.

“With rates now expected to peak slightly lower than our previous forecasts, we have pushed back our expectation for the beginning of rate cuts to August 2024.”

Eyes on supply this spring selling season

After falling throughout the second half of 2022, property prices have bounced back this year with the latest PropTrack Home Price Index rising for a seventh consecutive month in July.

National home prices are now 1.36% higher than to a year ago and just 1.44% below the March 2022 peak.

PropTrack senior economist Eleanor Creagh says with interest rates widely tipped to have peaked, confidence is returning to the property market – setting the stage for a strong spring selling season.

“Buyers may be comforted by the likely end of the tightening cycle, greater certainty around future borrowing costs, and continued low unemployment,” Ms Creagh said.

“Seven months of price rises that have gathered traction across markets could also be drawing buyers off the sidelines.”

A key driver of property prices this year has been a shortage of supply, as uncertainty over interest rates and the economy kept sellers on the sidelines.

Ms Creagh says that could drive prices even higher if more sellers don’t bring their properties to market.

“If the flow of new listings picks up, which is likely, as we head into spring, the pace at which prices have grown this year may slow.

“That is unless the peak in interest rates sees homebuying demand lifting to meet the anticipated uplift in new stock coming to market.”

Supply has not kept up with demand, supporting property prices even as interest rates rose. Picture: Getty

Speaking on realestate.com.au’s real Talk podcast, Charlotte Pascoe, chief executive of real estate agency Stockdale & Leggo, noted a shortage of rental properties was another reason sellers are holding off.

“That is a really big issue because people are scared, if I sell my home, that’s great, at least then I know what I’ve got to spend, but what if I can’t find a rental property?”

“So I think people are sitting in this really uncertain period of time,” she said.

But she said those that do list will likely be rewarded.

“If you’re looking at selling a home, now is a brilliant time to do it because we have a shortage of supply. So now is actually the time when we know what you’re going to achieve.”

When mortgage stress strikes, here’s what to do about it

August 16, 2023

How to tell if you’re in mortgage stress and what to do about it (thenewdaily.com.au)

Matthew Elmas~ The New Daily~ 11 August 2023

If you’re like millions of other home owners across Australia, you’ve probably had to make room in your monthly budget for massive increases in mortgage repayments over the past year or so.

A series of RBA hikes has added more than $1000 to monthly bills for a typical $500,000, 25-year home loan since May 2022, leaving many people on the brink of mortgage stress.

And it’s about to get a whole lot worse for many, with an oft-cited fixed rate mortgage cliff now upon us, threatening to throw hundreds of thousands more people onto higher repayments.

CoreLogic research chief Eliza Owen says about 880,000 fixed rate loans will expire this year and 440,000 next year – moving people off the COVID-19 era’s record low rates.

She said a household with a $550,000, 30-year loan could see repayments jump from $2017 a month to $3175 – a 60 per cent increase.

But how do you tell whether such increases in your monthly bills will land you in mortgage stress?

And what should you do if you are struggling to keep up with higher repayments?

Are you in mortgage stress?

More than a million Australians are estimated to be at risk of mortgage stress right now, according to the latest Roy Morgan figures, so if you are struggling you aren’t alone.

In technical terms, mortgage stress is defined as needing to pay more than one-third of your income in repayments – but your budget can feel strained even if the proportion is less.

Canstar finance expert Stephen Mickenbecker said mortgage stress can’t merely be defined by “rule of thumb”.

“If you don’t have enough to pay essential bills and afford the cost of living, you’re having trouble,” he said.

If you’re struggling …

If you’re struggling to meet your repayments, financial advisor and Sort Your Money founder David Rankin said there are a few things to do.

The first step should be to put a few hours aside and go through your finances to see if there are any obvious savings that you can make.

“Are you repaying more than the minimum on any loans (including your home loan) or credit cards, for example? If so, consider switching to minimum repayments with immediate effect,” he said.

“Are you salary-sacrificing into your super? If you are suffering mortgage stress, this might be money that is more valuable to you now than in your retirement.

“Are there any expensive kids’ activities – or school fees – that can be put on hold, starting this term?”

The next step is contacting your bank, Mr Rankin said, because lenders are required to provide hardship assistance when needed.

There are a range of hardship provisions available from your lender, and if the public comments from bank bosses are anything to go by, they should be able and willing to lend a hand.

That could mean a temporary pause in repayments, a restructuring of your loan, or moving to interest only payments, which will take some of the sting out of your monthly mortgage bills.

“Such an arrangement might be particularly applicable if the cause of your problems is temporary, such as a short-term health setback,” Mr Rankin said.

But Mr Rankin warned that interest-only repayments are not all upside.

“Although your repayments will be lower, you will no longer be paying down any principal, which means that the can is simply being kicked down the road,” he said.

“Your loan repayments will need to increase in the future or the term of your loan extended or both, so these increased future expenses will need to be planned for.”

Get on top of it early

Mr Mickenbecker said families concerned about escalating mortgage repayments should look into how much more they’ll be paying once the full brunt of RBA rate hikes has hit them and work out whether they’ll be able to afford those bills in addition to everyday essentials.

That way you’ll have more options, such as refinancing your loan to remove excess costs, Mr Mickenbecker said, adding that households should “do something now” if financial stress looms.

“You should be getting the lowest priced loan you possibly can,” Mr Mickenbecker said.

“For every 0.25 percentage points you save on a $500,000 loan you’re knocking about $100 a month off your repayments.

“But if you’re in genuine mortgage stress you will struggle to refinance.”

The Benefits of Using a Mortgage Broker for Your Finance

July 29, 2023

Introduction

Buying a home is a big decision, and it’s important to get the right mortgage. A mortgage broker can help you navigate the complex world of home loans and find the best deal for your needs.

In this article, we will discuss the benefits of using a mortgage broker for your finance. We will cover topics such as:

What is a mortgage broker?
What are the benefits of using a mortgage broker?
How to choose a mortgage broker

What is a mortgage broker?

A mortgage broker is a licensed professional who helps people find the best mortgage for their needs. Mortgage brokers have access to a wide range of lenders, so they can shop around for the best interest rate and terms. They can also help you understand the mortgage process and make sure that you are getting the best deal possible.

What are the benefits of using a mortgage broker?

There are many benefits to using a mortgage broker, including:

Access to a wider range of lenders: Mortgage brokers have access to a wider range of lenders than you do as an individual. This means they can shop around for the best deal for you, and they can also compare different types of loans to find the one that best suits your needs.
Expertise: Mortgage brokers are experts in the mortgage market. They know the latest interest rates, lending criteria, and product features. This means they can help you find a loan that is right for you, and they can also explain the terms and conditions in plain English.
Saving time and money: Mortgage brokers can save you time and money by doing the legwork for you. They will shop around for the best deal, and they will also handle all the paperwork. This means you can focus on finding your dream home, and you won’t have to worry about the details of your mortgage.
Advocacy: Mortgage brokers are your advocate. They will work with you to find the best deal, and they will also protect your interests throughout the process. This means you can be confident that you are getting the best possible deal, and you can also be sure that your mortgage is processed smoothly.

How to choose a mortgage broker

When choosing a mortgage broker, there are a few things you should keep in mind:

Get recommendations: Ask your friends, family, or colleagues for recommendations for mortgage brokers. This is a great way to find a broker who you can trust.
Do your research: Once you have a few recommendations, do some research on the different brokers. Read online reviews, and check out their websites.
Interview the brokers: Once you have narrowed down your choices, interview the brokers. This will give you a chance to ask questions and get to know them.
Choose a broker who you feel comfortable with: The most important thing is to choose a broker who you feel comfortable with. You should feel confident that they will represent your interests and help you find the best deal.

Conclusion

Using a mortgage broker can be a great way to save time and money when buying a home. Mortgage brokers have access to a wide range of lenders, and they are experts in the mortgage market. They can help you find the best deal for your needs, and they can also protect your interests throughout the process.

If you are thinking about buying a home, I recommend that you use a mortgage broker. They can help you find the best deal, and they can also save you time and money.

To see your options, fill in the enquiry form or call Origin on 1300 30 6767

How to Get Ready to Apply for a Mortgage in Australia

July 28, 2023

Buying a home is a big decision, and getting a mortgage is a big part of that process. If you’re thinking about buying a home, it’s important to get ready to apply for a mortgage as early as possible. Here are some tips on how to do that:

Get your finances in order. This means having a good understanding of your income and expenses, and making sure that you have a good credit score. You can get your credit score for free from a number of websites, such as MyCreditfile or Equifax.
Start saving for a down payment. The more money you have saved for a down payment, the better your chances of getting approved for a mortgage and getting a lower interest rate. A good rule of thumb is to have a down payment of at least 20% of the purchase price of the home, however you can protentially borrow upto 95% of the purchase price.
Shop around for a mortgage lender. There are many different mortgage lenders out there, so it’s important to shop around and compare rates and terms. You can use a mortgage calculator to help you figure out how much you can afford to borrow and how much your monthly payments will be.
Get pre-approved for a mortgage. Getting pre-approved for a mortgage will give you an idea of how much you can borrow and what your monthly payments will be. This will make it easier to make an offer on a home, and it will also give you peace of mind knowing that you’re approved for a mortgage.

Once you’ve done these things, you’ll be ready to apply for a mortgage. The application process can be a bit daunting, but it’s important to be prepared. Here are some things to keep in mind when you’re applying for a mortgage:

Gather all of your paperwork. The lender will need to see proof of your income, your expenses, and your assets. You’ll also need to provide your credit report.
Be honest about your finances. The lender will be able to see all of your financial information, so it’s important to be honest about your income, your expenses, and your debt.
Be patient. The mortgage application process can take a few weeks or even a few months. Be patient and don’t give up.

If you follow these tips, you’ll be well on your way to getting a mortgage and buying the home of your dreams.

Additional tips:

Get a copy of your credit report from major credit bureaus. This will help you identify any errors or inaccuracies that could be affecting your credit score.
Check your credit report for any late payments or collections. If you see anything that’s incorrect, dispute it with the credit bureau.
Talk to a mortgage broker. A mortgage broker can help you compare rates and terms from different lenders, and they can also help you through the application process.

If you would like to discuss your individual situation, call 1300 30 6767 or fill in the enquiry form on this page

The areas turning into buyers’ markets as investors sell up

July 19, 2023

Australian Financial Review| Nila Sweeney| 17 July 2023

Some areas dominated by property investors are turning into buyers’ markets as big increases in listings outpace demand, potentially slowing price growth, industry insiders say.

Ipswich and Logan in the south-east Queensland region posted some of the sharpest increases in fresh listings in the four weeks ending July 9, jumping by 134 per cent and 70 per cent respectively, according to Suburbtrends data.

More than 370 fresh listings were added to the Ipswich for sale market, taking the total to 652, while Logan-Beaudesert district posted a 222 increase to 540 properties.

Zaki Ameer, founder of buyer’s agency DDP Property, said the steep rise in listings was sparked by rising interest rates and new homes being completed in these areas.

“Rental yields are falling because of higher interest rates and many investors are coming out of fixed rates at the same time, so their repayments have risen sharply,” Mr Ameer said.

“I think the investors who are selling up are the ones that own their own home and have used that equity to buy an investment property investment and are now finding they can’t afford to support the investment loan, so they’re offloading their rental property.

“A lot of brand new homes that have been recently completed in the Ipswich and Logan areas are now listed for sale, so that’s also having an impact on supply.”

Landlords selling into these areas were facing a markedly softer market as the rapid interest rate rises reduced borrowing capacity by around 30 per cent, Mr Ameer said.

CoreLogic’s data shows during the boom, Logan-Beaudesert prices jumped by 49.5 per cent, while Ipswich climbed by 42.8 per cent.

“Vendors who are selling now are facing more supply and buyers can’t afford to pay as much now because their borrowing capacity has been reduced sharply,” Mr Ameer said.

“Potential buyers are mostly investors, but their numbers are dwindling, so that’s a challenge for sellers in these areas.

“As such, I think we’ll start to see some properties staying on the market for longer and more vendors discounting their prices. We’ve been able to negotiate great deals for our clients in recent weeks and I think the situation will only get better for buyers in these areas.”

Wide Bay and Darling Downs in regional Queensland also posted a large jump in listings, with 484 properties and 214 added to these markets respectively, representing a 169 per cent and 198 per cent increase.

Meanwhile, Adelaide north, Brisbane north and Cairns also recorded a spike in listings of between 53 per cent and 59 per cent.

New listings also jumped sharply in Sydney over the recent four weeks, climbing by 14 per cent to 6189, which is the highest level since early April, according to a separate analysis by CoreLogic.

Eliza Owen, CoreLogic head of research, said listings could rise even higher in the coming weeks as more vendors were willing to test the market.

“Not only are listings higher than where they were this time of year, but they’re continuing to trend higher through what would normally be a seasonal downturn,” Ms Owen said.

“I think this could be a response to rising prices as well as surging mortgage repayments.

“If we see more out of season selling, that could take some momentum out of the market and could lead to a weaker selling environment.”

Nicola Powell, Domain’s chief of research and economics, said the unseasonal rise in listings could also indicate vendors were coming to the market earlier this year, spurred by the persistent price recovery.

“We’ve seen new listings in Sydney rise for two consecutive months, and it is unusual to see a monthly lift in June,” Dr Powell said.

“New listings are now 3 per cent higher than the five-year average, which is a massive turnaround, considering this is the first time since August 2022 that new listings have been above the five-year average.

“The unseasonal rise in new listings is helping to dilute the buyer indicator index, which means those buyers with greater intent will find a bit more choice.”

How borrowers can find a softer landing as they face the mortgage cliff

July 19, 2023

www.realestate.com.au| Lisa Calautti| 18 July 2023

With many mortgage holders approaching the end of their fixed-rate loan period and a subsequent mortgage cliff as their repayments skyrocket, there are ways to take control and limit financial stress, according to experts.

The first step to navigate looming higher mortgage payments was for borrowers to speak to their current lender, AMP chief economist Shane Oliver said.

“I think the key is to have a chat with the bank because banks don’t want people to default as that’s a problem for them as well,” he said.

“So banks are geared to helping people on this front with financial wellbeing assistance available.”

Approaching the bank for a lower interest rate was worth trying, he said.

“I think many Australians have found that the bank wants to retain people’s business, as once you go variable you could potentially switch to someone else as it’s much harder when you get a fixed ,“ he said.

Many households were well aware a “big financial pinch” was looming with many record-low fixed-rate loan periods close to coming to an end, PropTrack senior economist Paul Ryan said.

Thousands of borrowers face substantially higher repayments as their fixed-rate periods draw to a close. Picture: Getty

“The best way to prepare for that is to get in early and consider what your new expenses are going to be,” he said.

He said to take stock of expenditure on entertainment subscriptions, consider areas spending could be cut back, and perhaps consider options to increase your income.

“One of the things that are working in households’ favour at the moment is the labour market is tight, so while interest rates are going up, it’s never been a better time to apply for a new job,” he said.

Mortgage Choice franchise owner James Algar said he has been speaking to mortgage holders well in advance of when their fixed rate was due to end, which ranged anywhere from three to six months.

“Now is the time for you to get comfortable with your new budget and start living life as if your payments have already come off the fixed rates,” he said.

“Because in the meantime if they are already paying extra on their mortgage, or they are building up a ‘war chest’, inevitably when payments jump, they have bit of a cushion to cope if it takes a while to adjust,” he said.

“By and large, the more difficult conversations are with people who are getting into a greater level of debt over the past three years.

“So in terms of strategy, what we are doing with those people is having a real conversation with what has changed in their world income wise and getting back to basics with budget.”

With some banks still offering cashback deals to switch, Mr Algar warned borrowers to be mindful.

“It’s a bit of a sugar hit now and nearly in every case when someone refinances, if they are taking a cashback, they are nearly always pushing out their loan term,” he said.

Aerial view of houses in outer suburban Sydney.

Mortgage holders have been warned about the long-term costs of cashback offers. Picture: Getty

“You should not just be refinancing just for the cashback because banks are good at making money so there’s always a payback somewhere.”

While some people will be able to cut back on their spending and survive higher mortgage repayments, borrowers who believe they are at risk of defaulting should contact their bank well before that happens, Mr Oliver said.

“They could switch you to an interest-only loan, which will then be a substantial reduction in your payments.

“Of course it does come with long-term costs because you potentially have a mortgage for longer, or your repayments will be higher for longer, so you’ll end up paying more on your mortgage. But it may be sufficient to get someone across the line through this period of high rates.

“Most economists are sort of assuming that some time through next year the RBA will start cutting rates again as the economy cools and inflation falls. So, if you can sort of hang on into next year then you might find some relief.”

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