Not many first home buyers know about these new schemes so we are listing the major announced first home owners grants and schemes as of 2022.

The First Home Guarantee

Previously known as the First Home Loan Deposit Scheme, this scheme allows first-home buyers with deposits as low as 5% to qualify for a home loan without paying Lenders Mortgage Insurance (LMI) fees.

The scheme will now have 35,000 places each financial year, beginning from 1 July 2022.

Family Home Guarantee

Under the scheme, single parents can buy a home with just a 2% deposit without paying Lenders Mortgage Insurance.

The Family Home Guarantee is available through financial year 2025.

This scheme originally offered 10,000 total places spread across four years. The government has now added 5000 new places each year, from 1 July 2022 to 30 June 2025.

Regional Home Guarantee

The new Regional Home Guarantee will allow borrowers to buy or build a home in select regional areas with a deposit as small as 5%, without paying Lenders Mortgage Insurance.

The scheme will include 10,000 places each year, from 1 October 2022. 

The Regional Home Guarantee is open to first-home buyers and anyone who has not owned property in the last five years. Permanent residents are eligible. If the legislation passes, the scheme will be available from 1 October 2022 to 30 June 2025.

First Home Super Saver Scheme

The First Home Super Saver Scheme allows first-home buyers to save a deposit for their first home inside their super account, to take advantage of the concessional tax treatment.

Under the scheme, the government has increased the total amount of savings borrowers can release from super to make a deposit on a home from $30,000 to $50,000.

Which Schemes Are You Eligible For?

I may be able to help you find out which schemes are available to you. We want to make sure that you’re eligible for the government scheme/grant you’re applying for. Each program has a slightly different eligibility requirement so you want to check off all the boxes prior to submitting your application.

Let me help you find the most competitive and most efficient home loan for your situation.

Call 0408 081 082 today!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post New Home Ownership Schemes: What They Mean For You appeared first on Soul Finance Group.

A lower interest rate can potentially reduce the amount you pay on your mortgage repayments and may results in getting your loan paid off faster. A good credit standing doesn’t usually guarantee you of a low interest rate as you need to shop around to find competitive rates. Consulting a finance broker to help you with this is always a good way to go. Banks and lenders have their varying measures in assessing the risk a borrower poses. Knowing what you can do to qualify for a low interest rate is a helpful way to save yourself from potentially paying too much.

Here are some tips to help you land a low interest rate for your home loan:

Check your credit report.

This particular tip is something all lenders will look at. Ideally, your credit report should be free of bankruptcy and/or other serious delinquencies. Dispute any information on your credit report that you deem inaccurate. To request a copy of your credit report, visit Equifax website (formerly Veda). However, you have also to take note that multiple and consecutive inquiries on your credit report may hurt your home loan application. If you have too many inquiries on your credit report, a lender may think that you are having trouble obtaining credit making you a high lending risk. In that case, the lender could charge you a higher interest rate.

Research current home loan interest rates.

You know what they say, knowledge is power. The more you know, the more ways you can think in landing that low interest rate. Check the interest rates offered by various lenders and non-lenders.

This will give you an idea on whether you’re paying too much in terms of interest, and can give you a good bit of bargaining power if you show that you know what you’re doing. Make sure you look for loan rates that are at or below the market average. On the other hand, if you wish to avoid this hassle, seeking the help of a finance broker can give you the same advantage.

Ask and you shall receive.

When all else fails, consult a finance professional. But while you’re at it, contact your current lender. There are lenders who tend to offer their new customers discounted rates and special deals that existing customers don’t get. The most effective approach you can do is to prove your loyalty to them. Maximise the fact that you’re paying your repayments on time. You have nothing to lose and much to gain by enquiring about a lower interest rate. Call your lender stating that you have found a better offer from a competitor (even if you haven’t). Negotiating for an interest rate that’s just 0.25% lower than your existing rate can potentially save you a significant amount of money over the duration of the loan.

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Get a Low Interest Rate appeared first on Soul Finance Group.

New year, new financial you! Here’s how to start 2022 off on the right foot.

The last few years were not so pleasant years for most of us but one good thing to come out of it was how it made us more aware of our money habits and finance plans.

We’ve compiled a list of hacks or tips you can try to give you some inspiration in helping you reach your finance goals.

Limit discretionary spending

To get a better sense of what you’re spending your money on, check your bank statements or download a spending tracker app. Sometimes a shock, like realizing that you’re spending $200 a fortnight on Uber Eats or racking up hundreds in Afterpay debt by buying homewares and clothes online, is exactly what your behavior needs to shift.

Keeping track of your spending may reveal transactions coming out of your bank account that you were unaware of, like a subscription you forgot to cancel.

Get started on your emergency fund

Building an emergency fund can be challenging, but it offers flexibility and comfort in case of unexpected expenses. It might be better to set a goal of saving $100 a week or even a smaller amount every day instead of $400 a month.

Increase your equity by paying down your home loan

Equity in your home is the difference between the value of the property and how much you still owe on it. Building home equity is important because it’s a resource you could tap into later on if you want to buy another home (this is known as a home equity loan).

In addition to being able to convert equity in your home into cash once the property is sold, equity in your home can also be used to finance renovations, invest, or fund a holiday. You can even use your equity for the deposit for your next home or investment property.

Put your savings in an offset account

An offset account can be an easy way to reduce the interest you are charged on your home loan. It operates like a transactional savings account that is linked to your home loan balance. Any money in this account offsets your loan balance, reducing the amount of interest you are charged.

Refinance your home loan to a more competitive rate

With most home loan interest rates now at around the 2% mark, there has never been a better time for borrowers to shop around and get a better deal.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Kick Off Your 2022 Finance Goals appeared first on Soul Finance Group.

The holidays are here! This time of the year is the most exciting, not to mention expensive and hectic! With the holiday rush, we tend to always forget something. So to help you avoid that (and avoid unnecessary spending), we are giving you an easy guide for that ultimate Christmas checklist.

Grab your pen and paper and add these to your Christmas checklist to prevent you from forgetting important items until the last minute!

Home Decorations

The most notable transformation for Holidays is probably the moment when lights and various Christmas decorations go up. Nothing says Christmas like 20 Santas on your front porch! Of course, the Christmas tree is the star of the “show.” The trend now is buying artificial trees that can be stored for a year and can be used over and over again. For other decorations such as the ones you put on the staircase, to your doors, and/or cabinets, you can check out dollar stores for some cheap but quality items. Thrift stores are also a great place to shop for Christmas decorations that you can get at a much cheaper price.

Christmas Dinner

Whatever your tradition for Christmas eve or Christmas day is, you’ll want to include a Christmas meal for family or even friends in your checklist. Decide on what meals to prepare and then create a list of all the things to buy. Most people wait until a week or two to do their holiday meal shopping. But if you want to avoid the crowd and the traffic, schedule your shopping earlier. You might score discounts for some food items on your list. All you need to worry about are the perishable items that you can purchase a week before Christmas.

Gifts

Gifts will probably get the biggest chunk on your list in terms of budgeting during the holidays. While I can advise you to start your gift shopping early to save you both time and stress, that may not possibly work since Christmas day is fast approaching (2 weeks!). The good news is some of the good deals happen during this time as people start to shop so stores drop their prices to clear out inventory and tempt people to buy more! Hint: purchase items that you either know aren’t likely to go on sale or are already specially packaged for the holidays.

There you go! Some of the basics in your Christmas checklist which you can use as a guide especially if you are sticking to a set budget. So have at it, make your list and check it twice!

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post A Basic Guide to Your Christmas Checklist appeared first on Soul Finance Group.

ou probably promised yourself earlier this year that you would start saving in time for the holiday season. Perhaps you did and you fell short, so now you start looking for ways to finance your Christmas shopping. A holiday loan could help ease that burden for you.

So how and where to start?

What is a holiday loan

Holiday loans are usually unsecured personal loans or short-term loans. You can use these to fund any holiday-related expenses such as gift shopping. Lenders who offer this type of loan may require different eligibility criteria so seek the help of a professional mortgage broker to guide you in comparing the available loan products in the market.

Details to consider when securing a holiday loan

• Interest rates – make sure you land on a competitive interest rate that is going to work well with your financial situation. You can opt for a variable or fixed rate.
• Repayment options – You have the choice of paying weekly, fortnightly, or monthly depending on your capability. Tip: look for a loan that offers extra repayments facility so that you can put any additional cash towards paying off your loan faster if you’re able to.
• Processing time
• Loan amount and term

How to apply

It’s important to do your research first and see if securing a holiday or personal loan suits your current situation. A professional mortgage broker can advise you on which loan option to grab to make sure it will work for you. Prepare documents such as proof of your identity (Passport, driver’s license, and or Medicare card), proof of income, and other financial details. Your mortgage broker will do the legwork for you so you won’t have to.

Holiday loans, such as personal loans and short-term loans, could bridge the gap between your savings and your Christmas shopping budget. Seek the help of a professional mortgage broker in your area to make sure you secure the most efficient loan option for your financial situation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Not Enough Christmas Budget? Consider Securing a Holiday Loan! appeared first on Soul Finance Group.

The pandemic has changed the way we live in one way or another. This includes changes in the financial situation for some. Whether your goals have shifted and you’re interested in cashing in your home equity, here are three major signs it might be time to refinance. 

You have been with your current lender since forever.

By comparing lenders, you may find that some can give you better benefits than others in the form of interest rates, terms, customer experience, or features. Because interest rates are at a record low, lenders are in tight competition. If you’ve been with the same lender for years, chances are you’re probably missing out on a better deal elsewhere.

There are changes in your personal circumstances.

When did you take out your mortgage? What has changed since then? Did you change jobs or get promoted? Have your living expenses changed? Have an addition in the family? Right now, think of your financial goals when you took out your current loan— have they changed? It is important to consider these factors when choosing the right home loan for your current situation.

You have so many debts.

Struggling to pay off your debts? Debt consolidation could be the answer. This strategy involves refinancing your mortgage and using some of your equity to pay off your debt. Talk to a professional broker to see if it’s the right route for you.

Is it time to refinance?

Before you can decide, I’m more than happy to review your home loan. I could help you delve into what this means for your financial position. Speak to me today to know where you stand!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges, and eligibility criteria apply.

The post 3 Signs It Might be Time to Refinance appeared first on Soul Finance Group.

To put it simply…

This change means banks and lenders must not provide a home loan to a person until they are satisfied they would still be able to afford the repayments on a rate that is 3.0 per cent higher than the current product’s rate.

Starting November, banks will have to test whether new borrowers can still afford their mortgage repayments if home loan interest rates rose to be 3 percentage points above their current rate.

What is APRA and what do they do?

The Australian Prudential Regulation Authority (APRA) is Australia’s financial system prudential regulator. It is responsible for promoting the prudent management of regulated institutions so that they can meet their financial obligations under all reasonable circumstances.

Will I be affected?

If you are an owner-occupier and or an investor taking out a new home loan, yes you will be affected.

How would I be exactly impacted?

Right now, this change does not directly affect any current loans, but it will reduce the new maximum loan amount for a typical borrower by around 5%. If you’re thinking about taking out a home loan soon and want to understand and discuss the specific impacts on your financial plans, send me a message today.

What is a serviceability buffer?

Banks are required to examine a borrower’s ability to repay a loan at a higher interest rate than those offered today. This ensures when interest rates rise, as they eventually will, borrowers aren’t stressed by the higher repayments. The amount that banks add on to the market interest rate is known as the serviceability buffer.

Banks currently use a 2.5% serviceability buffer but APRA’s new rule will see this increase to a minimum of 3.0%. That means if you applied for a new loan with a 2.49% interest rate, you would either be assessed on your ability to repay the loan at 5.49% (2.49% + 3.0%) or the bank’s floor rate, whichever is higher.

When will banks and lenders implement the new buffer?

The changes will take effect on 31 October 2021.

What next steps should I take?

APRA is expected to use additional tools to curb bank lending if high levels of lending to indebted borrowers continues despite its higher buffer.

If you are a first time home buyer, once you applied for a mortgage with an interest rate of 2 per cent on November 1, the bank would be testing to see if you can afford to make repayments with a 5 per cent interest rate. If you could not, the loan application would be denied. If you want to discuss your current financial circumstances, please get in touch.

If you have a fixed rate home loan, no announced changes yet and will likely vary between banks. So, before you take any action, please get in touch with me for the most up to date information. Give me a ring on 0408 081 082.

Source: https://www.afr.com/companies/financial-services/why-the-next-home-loan-you-take-out-might-have-to-be-smaller-20211006-p58xsb

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post APRA’s New Mortgage Rule: What It Means For You as a Borrower appeared first on Soul Finance Group.

Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer

According to ASIC (Australian Securities and Investments Commission), Aussies plan to spend $955 on average over the holiday season. The majority resort to their savings when it comes to paying for Christmas presents while others opt for credit cards, Christmas bonus, and loans.

We have discussed here before the reasons why you should refinance. Consumers are often advised to consider refinancing in order to obtain a better interest rate and payment term. Instead of throwing out the original mortgage and creating a new one, the current loan is initially paid off to give way to the second loan. However, in this context, you can opt to cash out the equity of your home loan. To know if you have enough equity, it’s advisable to consult with your local finance broker.

What is cash out?

To give you an idea, this is a term used by Australian lenders to describe when a borrower releases the equity from their home, commonly known as home equity loan. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.

Okay, this might sound overwhelming for some but as your Finance broker, I could help you with the whole process. Here at Soul Finance Group, we could advise how much you can borrow and let you know the risks and the benefits as well.

Call me today on 0408 081 082 for a no-strings mortgage evaluation and see how much you could save by refinancing your home now– and get your loved ones’ Christmas present list checked off early this year to avoid hassle and stress.

Reference: https://www.moneysmart.gov.au/managing-your-money/budgeting/spending/australias-christmas-spending

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Need Cash for Some Holiday Spending? Here’s Why Refinancing Might Be the Answer appeared first on Soul Finance Group.

A renovation project, especially in your own home, can be a tricky process. More often than not, you literally pay for the unavoidable mistakes you encounter along the way. You may know what kind of look and style you’d like for your kitchen or room, but the options you choose may drive the price higher than you can reasonably afford.

Good thing, there are ways to stretch your renovation budget. Have a look at this 4 effective ways:

Create a plan.

Save money by planning ahead. Brainstorm with your contractor for design ideas and choose everything you want to include or modify, from rooms, doors, appliances, to furniture and floorings. This will define your budget and prevent hasty and costly changes later in the project. A lot of people fail to think through the renovation plan because they were too fixated at the finished product. Create a cohesive plan considering your family’s present and future needs. The secret is to stick to this plan to save yourself from spending too much.

Know your budget.

The plan you created must work with your budget and vice versa. If you have existing savings allotted specifically for this renovation, stick to this budget. Furthermore, if you’ve long been planning to revamp the look of your house but fails short on budget, you can opt to secure a finance as there are competitive deals in the market especially during spring season. Consult your local finance broker about your possible options to save effort and time. The process can be daunting so let your finance broker work out the most efficient deal for you.

Have a contingency plan.

It’s not enough that you have only one plan. Create a plan B, C, D, or even the rest of the alphabet. The idea is you’ll inevitably run into unforeseen costs while you’re renovating. You’ll tear into a wall and find pipes you didn’t know were there. You’ll discover faulty wiring. Or you’ll find rotting structural elements that need to be replaced. With a financial buffer in place (ideally 10-20% of your renovation budget), these unexpected setbacks will be less likely to make you tear your hair out.

Compromise and DIY.

One way to decrease the cost of your remodeling project is to pay attention to how labor-intensive some design features may be. For instance, if you originally visioned for some granite surfaces everywhere, aim for a similar look with a slate backsplash and composite countertops instead. Also, consider doing-it-yourself (DIY). If you or some of your family members can do it, that can save you cost for manpower labor. However, if you aren’t confident about picking up a hammer and doing the work yourself, there are other ways you can DIY to save money. Initiate a house clearing to give way to the builders. Spend a weekend clearing out the mess and even start tearing down whatever needs to go before the workers arrive.

Research, research, research. You can remodel your house without breaking the bank. Just extract those creative juices and be resourceful. To risk a cliché, if there’s a will, there’s a way!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post 4 Effective Ways to Stretch Your Renovation Budget appeared first on Soul Finance Group.

At this time of the year, you may want to invest in another property or you wish to cut down your debts because of an unforeseen circumstance. Small changes could make a huge difference over the term of a home loan, so it’s important to weigh up your options and factor in those fees and charges. Reviewing your home loan may give you a great opportunity to help cut your mortgage by getting ahead on your repayments. Interest rates have been hovering around historical lows, in turn borrowers have started refinancing or pursuing a purchase loan.

Spring season provides us time to clean up but it should not be limited to the insides of our home. Below are the ways to ‘tidy up’ your current mortgage. Happy spring cleaning (your home loan)!

 Check your interest rate.

Many Aussie home loan customers are guilty of not knowing what their interest rate is. Phone your bank or ask your broker. Better yet, check also the interest rates offered by various banks and non-bank lenders.

This will give you an idea on whether you’re paying too much in terms of interest, and could give you a good bit of bargaining power should you decide to switch lenders. Make sure you look for loan rates that are at or below the market average.

Review your fees.

Annual fees, application costs, redraw costs, exit costs—there are multiple fees that come with home loans which secretly affect customers. Educate yourself with these or ask your finance broker about these. Review your fees on your mortgage account and always look at the comparison rate on rival products as this rate factors in all the additional fees and charges associated with your loan.

Consolidate your debt.

You and your finance broker could put all of your debts together to come up with a single loan, a single interest rate, a single monthly mortgage payment. This enables you to minimise your monthly expenses and make your credit more manageable.

Debt consolidation is for you if:

• you have a hard time paying your monthly payments on time due to having to many commitments
• you have equity in your home
• you have a bad credit and a large amount of debt

Refinance your home loan.

The ultimate reason for refinancing is for you to take advantage of a better, more competitive interest rate. You can also refinance to access a home loan feature your current loan doesn’t provide.

Other reasons for choosing to refinance are:

• To facilitate home renovations
• To consolidate existing debts
• To reduce your borrowing cost
• To purchase or build a new home

Ask for a Complementary home loan health check.

A home loan health check simply means reviewing the features of your home loan which provide you with an efficient and cost-effective method when looking at your home loan options. No sweat! You could ask yourself the following questions:

Am I paying an unreasonably high interest rate?
 Am I paying outrageous fees?
 Am I frustrated by inadequate service?
 Does my loan give me the features I need?
 Am I paying for features I don’t use?
 Have my financial circumstances changed?

If you’re not sure of your answers or you don’t have any idea at all, don’t fret! As a finance broker, I can offer a complementary assessment for your home loan.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Spring Clean your Home Loan appeared first on Soul Finance Group.