Government to make borrowing easier – but how much?

Graeme Salt Broker 2, News Leave a Comment

This week, Treasurer Josh Frydenburg, announced changes to lending rules designed to make it easier to get a loan. Treasurer Frydenburg announced the removal of many Responsible Lending obligations that have forced banks to pore over loan applicants’ living expenses and then decline a loan because a would-be borrower was perceived to spend too much money on the gym or …

Closer to the city? Prices down. The Burbs & beyond? Prices up

Graeme Salt Broker 2, News Leave a Comment

A two-speed market is developing for both rentals and owner-occupied properties Research from Corelogic showed that rents have fallen by as much as 10 per cent in certain inner locations since the onset of Covid-19, but that locations some distance from the CBD have enjoyed rental growth. With poor rental returns, it’s difficult to see investors making a bee-line for …

Property to rise instead of fall?

Graeme Salt Broker 2, News Leave a Comment

Author – Graeme Salt What happens if the so-called fiscal cliff does not exist?  What happens if those who had a mortgage repayment holiday due to Covid-19 can actually recommence making loan repayments? Given that Australia’s property market has held up pretty well, many economists are now softening their predictions on the property market; predicting modest falls due to the …

Aussies now spending in suburban locations

Graeme Salt Broker 2, News Leave a Comment

Covid-19 has changed our spending patterns and will have a profound impact on our investments. With so many of us now working from home, in suburban locations, the clever money is in the burbs rather than the CBD. SGS Economics estimates that around $400m in spending on incidentals such as coffees, lunches and alcohol has been diverted from the Sydney …

Will the bank force you to sell your home?

Graeme Salt Broker 2, News Leave a Comment

800,000 borrowers have deferred loan repayments in response to the economic fallout from the COVID-19 pandemic.  JobKeeper payments are set to reduce in September and by the end of March 2021, mortgage repayment holidays must stop. What happens to borrowers then? Already one ANZ exec has said foreclosures could a reality for those unable to make repayments. Crunch time is …

First home buyers could save over $70k in government assistance

Graeme Salt Broker 2, News 2 Comments

All levels of government are pulling out the stops to boost the housing market and particularly lend a hand to first home buyers. There’s now a wide range of government grants and stamp duty concessions that are available to first home buyers – potentially saving you thousands of dollars. The table below summarises the grants and concessions for which you …

First-time owners save $10k with special loan

Graeme Salt Broker 2, News Leave a Comment

A national lender has slashed its charges to first home buyers who wish to borrow up to 85 per cent of a property – potentially saving themselves up to $10,540. Normally, when borrowers need more than 80 per cent of property value, banks require them to pay Lenders Mortgage Insurance (LMI).  However, in this instance, the lender is effectively waiving LMI …

Aussies make most of the lockdown to get a better home loan deal, so should you.

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The latest figures from the Australian Bureau of Statistics show 33,712 owners refinanced their mortgages in a single month, around a quarter higher than the previous month and around 50 per cent above normal levels. Nearly two in three of those were switched from one lender to another, as customers voted with their feet for the best deal. But even where borrowers …

COVID-inspired first-time buyers rush to fill the property gap

Graeme Salt Broker 2, News Leave a Comment

Nearly half of millennials looking to purchase a home believe the pandemic has helped them move closer to their property-buying goals. An ING-commissioned survey of about 1,000 prospective home buyers shows that a third of millennials intend to enter the housing market before 2022. At the same time, luxury home prices in Melbourne have buckled as the virus-induced downturn slashes demand …