Loan Market Finance News

Recent figures published by the Real Estate Institute of NSW (REINSW) paint a promising picture for property investors in the Sydney market, with alerady low rental vacancies tightening further during May.

According to the results, rental vancancies in Sydney are now at around 1 - 1.5%, a situation which offers the promise of good potential rental yields to property investors.

Outer ring suburbs, those 25km or further out, have been high on the shopping list of tenants as they look for more affordable rent options, according to the REINSW.

With first home buyers taking centre stage in the housing market in the first half of 2009 thanks to the First Home Owners Grant Boost, property investors have generally remained quiet, but that may now be about to change.

If you are considering your property investment options, the correct investment loan is an essential ingredient in the investment mix, along with the right property in the right location at the right price.

A good mortgage broker can assist property investors, both new and experienced, to ensure their investment loan package is correct for their investment strategy and financial situation.

Source: Your Mortgage

Stamp duty changes taking effect in both NSW and SA today will help to reduce the overall costs of purchasing property for many home buyers.

In NSW, stamp duty has been slashed by 50 per cent for all newly built properties up to the value of $600,000.

The discount is part of the NSW Government’s Housing Construction Acceleration Plan, and will run until December 31, 2009. There will be the option to extend the discount into 2010 at a review towards the end of the year.

In South Australia, today marks the permanent removal of stamp duty on all mortgages.

To find out how the changes will affect you, talk to your mortgage broker for an assessment on your overall home loan costs.

Experienced Loan Market mortgage broker Trevor Giacometti is in the ideal position to assist you to assess your home loan options in the current home loan market.

Mr Giacometti, based in Chadstone in Victoria, has extensive experience researching and completing applications for property investors, self-employed and small business borrowers, first home buyers and home buyers.

“Borrowers of all kinds have many questions, even experienced borrowers,” said Mr Giacometti.

“The truth is that no matter how experienced you are at buying property and how often you have been through the process of applying for a home loan, there are differences every time, either in the situation you find yourself in or the home loan market itself.”

If you are located in inner Melbourne, Melbourne east or Melbourne south east, Mr Giacometti is available to assist you in assessing your home loan options, or reassessing your existing home loan.

“Many people are facing unforseen changes in their situations, or their circumstances have changed already and they aren’t quite sure how to handle that,” Mr Giacometti said.

“A simple home loan assessment can help to clarify your position, goals and most importantly, the options available to you.”

Loan Market Mortgage Broker Chadstone Trevor Giacometti
Email: Trevor Giacometti
Mobile: 0425 898 202

If you are working in the mining industry, Loan Market Mandurah Mortgage Broker, Troy Miller, understands that finding the time to search out the right home loan can be hard to come by.

“Mining industry employees often work longer than your standard nine to five office hours and that can make it difficult for them to take that step into property purchase,” Mr Miller said.

But there are options available to help you find the right home loan, according to Mr Miller.

“Finding a good mortgage broker to do the research for you is really the key.

“A good mortgage broker works some pretty odd hours as well, so we are available to talk to you when you are free and not just in regular business hours.”

And if you are working in a remote area, that hurdle can be easily overcome too.

“Consultations by phone, email and fax are very common, they’re a great solution when face-to-face meetings are just not possible and work hours are variable,” said Mr Miller.

Apart from working with mining industry employees to find the right home loan, Mr Miller is also available to assist a diverse range of borrowers, including overseas purchasers, self-employed borrowers and those who are looking to purchase a property off the plan.

Loan Market Mortgage Broker Mandurah Troy Miller
Email: Troy Miller
Mobile: 0433 012 944

Tax cuts due to take effect on July 1 this year may offer some mortgage holders the opportunity to make additional home loan repayments and reduce their mortgage faster.

The tax cuts will lift the 30 per cent threshold from $34,000 to $35,000, reduce the 40 per cent rate to 38 per cent and raise the maximum low-income offset from $1200 to $1350. this means that people earning up to $67,500 will be entitled to some offset, according to an article in The Australian today.

For those receiving a tax cut, directing any additional money into your mortgage instead of your wallet will help you to pay off your home loan faster by working to reduce the original loan amount - the principal debt - faster.

It will also mean that, when interest rates do rise, the effect on your monthly repayments will be less, as the overall loan amount will have fallen further than if you had not received any tax cuts.

The housing market is holding up well and providing opportunities for first home buyers and investors to purchase property at low interest rates, according to Loan Market Bondi Junction mortgage broker, Mark Marino.

The extension of the boost to the First Home Owners Grant in particular has provided first home buyers with additional backing when it comes to purchasing their first home.

“The Government incentives won’t make or break you as a first home buyer but they can certainly help you reduce the overall costs you are liable for,” said Mr Marino.

“Whether you choose to use it to help cover any additional costs, or to increase the size of your deposit, the boost to the First Home Owners Grant can certainly make a difference.”

The opportunities are opening up for investors too.

“Investing in property has become much more common among the Australian public over recent years,” said Mr Marino.

“People from all walks of life and varying backgrounds can benefit from smart property investment, especially with interest rates at their current low level.”

Mr Marino warns potential investors that they need to do their homework and plan for interest rate rises, but believe that property investment and finding the right loan could be “just a conversation away from becoming a reality”.

Loan Market Mortgage Broker Bondi Junction Mark Marino
Email: Mark Marino
Mobile: 0403 007 890

Loan Market Central Coast mortgage broker, Daryl Wright, says there are lots of smart ways of managing your mortgage that can save you time and money off your home loan.

Mortgage management is something that has come into particular focus as people look for ways to reduce their exposure to debt in the face of rising unemployment.

“Low interest rates make starting a properly mortgage management program easier, especially if you are on a variable home loan rate,” Mr Wright said.

“The simplest thing you can do, to save money in interest charges and more quickly reduce your home loan balance, is to continue make repayments at the amount they were when interest rates were at their peak.”

Mr Wright also suggests making regular additional repayments, or looking at the frequency you make your home loan repayments, are other simple strategies that really work.

“It’s important to take into account your personal financial situation and goals, because this will affect the way you approach your mortgage management.”

And, Mr Wright says, it’s really important to consult your mortgage broker or bank straight away if things start to go wrong.

“But the good news about properly managing your mortgage, is that done the right way you will have security in case you are one of the unlucky ones to face a period out of work in the coming months,” said Mr Wright.

Loan Market Mortgage Broker Central Coast Daryl Wright
Email: Daryl Wright
Mobile: 0415 514 065

In tough economic times, managing your mortgage becomes more essential than ever, according to Loan Market Melbourne mortgage broker, Paul Moulday.

Mr Moulday says prevention is better than cure and proper mortgage management can help you avoid falling into mortgage stress should things not go quite the way you had planned.

“Definitely things like unemployment can bite you when you have a home loan, but there are ways to prepare for such an eventuality and manage it if the worst should happen,” said Mr Moulday.

“Often, mortgage stress is the result of a number of different factors, so it’s important to look at your overall finances and your mortgage together to see what solutions are available to you.”

Debt consolidation is one option to help lower the immediate repayment costs of your home loan, said Mr Moulday, or depending on your situation, simply refinancing to a more suitable home loan may help ease the pressure.

“And if you are cruising along nicely with your home loan repayments, now is the time to be thinking about makinge regular extra repayments.

“This will assist you to reduce your loan balance faster, leaving you with less debt to cope with in the event your circumstances change for the worse.”

Mortgage Broker Melbourne Metro North Paul Moulday
Email: Paul Moulday
Mobile: 0407 409 187

24 June

Sunshine Coast Loan Market Mortgage Broker, Lindy Kelly, has introduced a savings program for clients who need assistance budgeting and saving for a home loan deposit.

Ms Kelly said the program was free to customers and was designed to show them how to get into the savings cycle.

“In recent years credit has been very easy to access, but stricter lending criteria is being progressively introduced and being able to demonstrate savings is once again important,” Ms Kelly said.

“Unfortunately, a lot of people have lost the knack of saving money, which makes it difficult if you want to find the finance to get into the residential property market.”

To help potential borrowers overcome the problem, Ms Kelly and her team have developed a comprehensive program that will help customers with budgeting and saving for a home loan deposit.

Ms Kelly said customers would be offered an initial consultation where Loan Market experts would examine their financial position and ability to save.

“We can run either a 12 week or 24 week savings program, depending on your current position and the size of the deposit you want to aim for,” she said.

“We believe if you follow this plan it will enable you to save the money needed to obtain a home loan deposit and break free from the rental cycle.

“The discipline of saving is no different from meeting a fortnightly or monthly mortgage payment.”

Ms Kelly said the program involves regular face-to-face meetings with the Loan Market team as well as a weekly email briefing to keep clients on track.

Mortgage Broker Sunshine Coast Lindy Kelly
Email: Lindy Kelly
Mobile: 0421 054 432

23 June

After recently raising the interest rate on its variable home loans, the Commonwealth Bank (CBA) has indicated that a continued increase of funding costs may result in further such interest rate hikes over the coming 18 months.

According to CBA in an article  in the Herald Sun, cheaper funds sourced back in 2007 are now running out, increasing the costs of the funds banks use to provide us with mortgages.

Whether or not consumers end up wearing the cost will depend on the discretion of the banks, however a good review of your home loan options may assist you to avoid or at least lessen the impact of any home loan interest rate rises.

There are alternative home loan options availabe that may be suitable for your situation, and strategies to help you manage your mortgage effectively and more quickly reduce your home loan balance.

But, CBA believes that funding pressures may ease in 15 to 18 months time.

Source: Hearld Sun