credits

Things are likely to heat up over the next few months – good and bad heat depending upon your ability to react and take advantage of some of the opportunities.

And yes, there’s also plenty of interesting news at the moment. Here are some mortgage, property and car stories that are making headlines:

– Interest rate update.

– Loan demand declines.

– Rent freezes rejected.

– EV sales on the rise.

Read more below.

But first, we like to take you on a 10 minute detour to some things which might be also of interest to you….

Pssst….. Our car buying services ‘are now go’!

For me, looking for my next car is akin to going to the dentist – something I have to do but I’m really not looking forward to it. Particularly these days. New cars are hard to find and used cars are so expensive because new cars are just not available in the quantities we need. So new car scarcity = used car price hikes. Capitalism at work!

We can now offer you an interesting solution: when you have a particular car you want to purchase, let us know (be specific!) and we can use our data-scraping service to try and find your ideal vehicle no matter which showroom it is hiding in. We access all the websites in a single search engine. Truly remarkable!

Whether New or Used, we can find the car you love. And all with a negotiated deal which takes the tyre-kicking out of car buying. No more hassle, no more haggling. Just the best price. Delivered to your front door.

And, you will get the best loan for you, all approved BEFORE you go car shopping!

Find out how this works!

A Client’s Story

Dilemma

– A request for Cash out for business purposes was declined (pretty standard reason)

– The 3% buffer was added to existing loans so….

– The proposed loan would not service

Lender’s solution

– Cash Out for business purpose approved

– No buffer on existing loans

– Same day approval

– Digital docs issued same day for fast settlement

A Lender’s Gem

Development finance

– No pre-sales

– No income for servicing if the project is going to be sold

– Commercial and residential

– NCCP (consumer regulated loans) and non-NCCP deals

– Fund residual stock and vacant land

Regional Property Report Updates

For investors, this is a bonanza offering for 30+ regions around Australia. The level of detail and research is ‘second to none’ so delve into these reports before making your next property investment decision.

Tip #1: and if you don’t have a property investment advisor,

do yourself a HUGE favour and make sure you use one!

Some great property investment advisors

I have quite a few seasoned professionals who can assist you (including the authors of the Regional Property Reports), so I can certainly put you in contact with someone who can make your next buying decision a better one.

Tip #2: your biggest cost of your next property purchase

is the opportunity cost of choosing the wrong property

A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years (Example: a 2% annual return difference (5% compared to 7%) on a $500K property purchase results in a capital gain difference of $63K over 5 years and $179K over 10 years).

The last 3 months Regional Property Report updates are set out below:

Click here for access to our Regional Reports

Our latest survey results are in!

Our question this month was: How often do you have a termite and pest inspection conducted for your properties?

Some observations:

– One in three homeowners play it safe and are not interested in playing Russian Roulette with the termite fraternity. I am one of them. After all, a home is a depreciating asset which will decrease even faster if it looks like swiss cheese (meanwhile, the land it sits on increases in value).

– Interestingly, this insurance policy approach (avoiding the risk of termites) comes at the princely cost of around $200 to $400 per inspection.

– I have to wonder if property pest inspectors need a business coach 🙂 After all, can you imagine leaving 56% of your potential clients without a reason to use you?

– If you live in cities like Melbourne (as I do), and you are ‘in the blue’ (aka the above colour blue), then YOU ARE A RISK TAKER! 🙂 Termites and pests have a Roladex of all the Melbourne suburbs where the pickings are good and they are on their way to munch through your home!

Connect me with a property inspector – 0411 190 474

Believe it or not!

The Reserve Bank of Australia (RBA) has unveiled that lenders have refrained from fully implementing the complete sequence of rate rises observed in the last year.

Throughout the span from May 2022 to June 2023, the RBA raised the cash rate from 0.10% to 4.10%, marking a substantial 4.00 percentage point escalation. Conversely, during this identical period, lenders raised their variable interest rates by an average of merely 3.37 percentage points. Interesting statistic…. But what is behind this?

The RBA said this was due to “the effect of discounting on variable-rate housing loans associated with strong competition between lenders”.

As these rate rises have been occurring over the past year, mortgage brokers have been helping Australians refinance at record levels. This has put pressure on banks to be restrained in how much they increase rates, because they know that if their rates are too high, brokers will recommend other lenders to their clients.

Additional thoughts: Lenders are making hay even at these reduced rates. Just witness the CBA’s record profit. So, when you are making higher than historical profits, you can do a couple of things; One strategy is to keep prices down (because you are already making good money) and try and grow your market share. I may be jumping at shadows but I reckon this explanation deserves some consideration as well.

Get in touch if you want to refinance!

Responding to the interest rate hikes of the past year, consumers are scaling down their borrowing endeavors.

Equifax, a credit bureau, has revealed that the demand for secured credit, encompassing mortgages and car loans, experienced a decline of 3.3% between the June quarters of 2022 and 2023.

Unsecured credit demand – which includes credit cards, personal loans and buy-now-pay-later services – fell 8.3%.

Equifax General Manager Advisory & Solutions Kevin James said the effect of multiple rate rises were becoming clearer.

“We are seeing accelerated growth in mortgages in early arrears, with a 33% uptick in mortgage accounts that are 30-89 days past due, compared to 22% last quarter,” he said.

Mr James also said the slowdown in demand for unsecured credit suggested consumers were spending less due to economic pressure.

“While demand for personal loans declined year-on-year, the average limit per account, and the average credit score of applicants, has increased. This could indicate that consumers who previously weren’t feeling financial strain have begun to consolidate their debts, so they can better manage their credit payments,” he said.

Rent control is no longer on the agenda, after it was dismissed by state and territory leaders at a National Cabinet meeting.

“We thank the nation’s first ministers for emphatically and unequivocally rejecting rent freezes and rent caps. This is the optimal outcome across the board for rental supply, rental affordability and – most importantly – tenants,” Real Estate Institute of Australia President Hayden Groves said.

Instead, the federal government introduced the Better Deal for Renters plan. This plan encompasses the establishment of a uniformly applied national policy that mandates valid and justifiable reasons for eviction. Additionally, the plan entails a progression towards capping rental hikes to an annual frequency and gradually implementing baseline rental standards.

This initiative builds upon the ongoing efforts of the Albanese government, exemplified by the Housing Australia Future Fund. This fund is allocated to support the construction of 30,000 fresh social and affordable rental residences within its initial five-year period.

“Adequate housing supply, based on the supply of adequately zoned and serviced brownfields and greenfields land, remains the most important factor in driving down buying and renting costs and prices across the market cycles,” Property Council Chief Executive Mike Zorbas said.

Electric vehicle sales have more than doubled over the past year, according to a new report from the Electric Vehicle Council.

In the first six months of this year, 8.4% of all new cars sold were electric vehicles (EVs), compared to 3.8% throughout 2022.

“While these most recent sales figures are encouraging, in order for Australia to achieve its climate targets, it is expected that more than 50% of all new cars sold in 2030 will need to be EVs,” the Electric Vehicle Council said.

“This means Australia will need to aim for around 1 million EVs on our roads by the end of 2027,” compared to the current estimate of 130,000.

“From reviewing global EV adoption rates for 2022 we can see that Australia continues to lag the global average, and is significantly behind many EU markets, the UK and China.”

Contact me if you’d like to buy an EV. I can help you finance the purchase.

If you are new to BIR Finance, we have a monthly newsletter on property and finance – with some insights not everyone gets to see.

One welcome piece of news from earlier this month was the Reserve Bank keeping the cash rate on hold. Finally (wait for it….), the mortgage belt can take a break from doing the heavy lifting to curb inflation.

But I had to laugh/cry when I read this quote from Deloitte Access Economics:

As Deloitte Access Economics has been warning for the past 12 months – and as the Reserve Bank’s own research shows – excessive inflation in Australia has mostly been caused by supply-side factors, meaning that interest rate increases have mostly been ineffective at bringing inflation under control.

Which has been my (often-expressed) view for many months. Oh well, Phil is gone but will Michele be any different? Meanwhile, those without a mortgage continue to sip voraciously on a champagne or two!

Back to script….

Here’s what else has made headlines in July:

– Key property price stat.

– Cash rate gets reformed.

– ATO issues a tax warning.

– HomeBuilder update.

Read more below.

But first for some of our regular updates….

Last week, a Big 4 BDM lender complimented me on my relevant posts on LinkedIn. To grow my head even larger, he said he shared them with his colleagues!!! Now I know he wants business from me but that glowing praise kept me basking in the sunshine on a cold and miserable Melbourne winter’s day – so it was all worth it! Thanks Anuj 🙂

Talking of Melbourne’s glorious weather, my wonderful VA in the Philippines, Anna, who gets these newsletters ready each month (thanks Anna!), said earlier this week, she was ‘feeling the cold’. I asked, ‘How cold is cold?’ She replied ’28 degrees’. I shivered.

Client Story

My clients have had some good wins over the past few weeks but one thing stands out: I would hate to be a client dealing directly with a lender!!!

We have spent a LOT of time providing documents to lenders which we had already provided to them. Luckily, we are patient and persistent (and always pleasant!).

Tip: the reduced buffer rate offered by some lenders is proving the difference between a successful refinance and a ‘Sorry, you don’t pass the servicing test for any lender’.

If you are looking at refinancing, give me a call or email me. Via Zoom, you will be able ‘to see what we see‘ – and in particular, which lenders will be likely to say ‘Yes’ to your refinance. And I can explain to you what is a ‘lender’s buffer rate’ 🙂

Time for a refi chat

Finance Tip

Yes we are a broker and we are here to get you money. That’s why you are talking to us, right?

But behind every request for money is often a much bigger goal which our clients want to achieve.

Yours could be:

– Having the security of knowing you have a place you can call ‘home’

– Growing your pool of assets so you can have a comfortable life in the future

– Saving money so you can afford your day-to-day essentials

So my question to you is:

Do you know what is your why and do you have a plan to achieve it?

Helping you sort out your why is not my thing but I know some good people who can point you in the right direction.

If you want a referral to one of my gurus, just let me know.

Your Guru hotline

Our survey results are in!

Our question was:

How important is a property inspection report when you are purchasing a property?

Some observations:

Ok, the bleeding obvious – where are the 3% (that thin red slice) when you are selling your property?

Bad joke but it had to come out.

The reality is that property inspections can save you heaps of $$$ by protecting you from buying the wrong property or not being aware of the costs to be incurred if you buy it.

A property inspector I know is also a registered builder. And HE says, property inspectors who are not qualified in the industry cannot know what they don’t know.

So, if I was you, I would DEFINITELY ask for the qualifications of your next building inspector – and those who are qualified builders have a running start. Plus if they are on the small/slim side and not afraid of heights or small spaces then even better, as it means they are able to get into those places the rest of us have no interest in.

Of course, if you are Melbourne-based and you would like to be introduced to some good inspectors, let me know. Happy to make the introduction.

Connect me with a property inspector – 0411 190 474

Regional Property Report Updates

For investors, this is a bonanza offering for 30+ regions around Australia. The level of detail and research is ‘second to none’ so delve into them before making your next property investment decision.

Tip #1: if you don’t have a property investment advisor, do yourself a HUGE favour and make sure you use one!

Tip #2: your biggest cost of your next property purchase is the opportunity cost of choosing the wrong property.

A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years.

The last 3 months updates:

Click here for access to our Regional Reports

According to PropTrack’s recent research, property prices in Australia have shown robust growth over the years, with the most recent doubling of prices being of particular interest. In May, the median price for houses reached $730,000, while units were priced at $560,000.

Upon analyzing the data retrospectively, PropTrack discovered that house prices doubled over a period of 15.4 years, whereas unit prices took 17.8 years to double. This information highlights the steady and consistent appreciation of property values in the Australian real estate market.

Breaking it down by geography:

– House prices doubled in 14.3 years in the capital cities and 16.0 years in the regions.

– Unit prices doubled in 18.1 years in the capital cities and 17.5 years in the regions.

“Across every capital city and regional area, median house prices have doubled over a shorter period of time than median unit prices have. This highlights that houses tend to appreciate in price quicker than units,” PropTrack Director of Economic Research Cameron Kusher said.

“The lower price point and slower growth also highlights that housing more of Australia in units is a good way to address our housing affordability challenges.”

Get in touch if you need a home loan

The Reserve Bank of Australia (RBA) is set to implement several noteworthy changes in the upcoming months. Firstly, there will be a change in leadership, as the current governor, Philip Lowe, will step down in September and be succeeded by Michele Bullock, the current deputy governor.

Moreover, starting from 2024, the RBA will undergo significant reforms in the way it approaches and communicates monetary policy. Presently, the RBA holds 11 monetary policy meetings annually to review the cash rate. However, under the new approach, the board will convene eight times a year for these reviews.

These meetings will be extended in duration to allow for more comprehensive discussions. Following each meeting, the governor will hold a press conference to clarify the decision made regarding the cash rate. This new approach aims to enhance transparency and provide the public with a clearer understanding of the RBA’s monetary policy actions and reasoning.

“The less frequent and longer meetings will provide more time for the board to examine issues in detail and to have deeper discussions on monetary policy strategy, alternative policy options and risks, as well as on communication,” Governor Lowe said.

“And the post-meeting media conferences will provide a timely opportunity to explain the board’s decisions and to answer questions.”

The Australian Taxation Office (ATO) has issued a warning to taxpayers regarding their work-related claims in this year’s tax return. Assistant Commissioner Tim Loh emphasized that taxpayers should avoid simply copying and pasting last year’s claims, as doing so could raise suspicions.

Mr. Loh highlighted some changes to the rules around certain deductions that taxpayers need to be aware of:

Working-from-home expenses: If you intend to use the fixed-rate method, the rate has increased from 52 to 67 cents per hour worked from home. Additionally, there is no longer a requirement for a dedicated work-space.

Work-related car expenses: If you plan to use the cents-per-kilometre method, the rate has increased from 72 to 78 cents per kilometre.

Self-education expenses: The requirement to exclude the first $250 of certain self-education expenses has been removed.

To ensure accuracy and compliance, Mr. Loh advised taxpayers to seek assistance from a registered tax agent if they are uncertain about any aspects of their tax return. This way, they can avoid errors and submit a correct tax return from the outset.

Applicants for HomeBuilder, a government initiative aimed at supporting the construction industry, have been granted an extended deadline to submit their supporting documentation. Originally set for 30th April 2023, the new deadline now allows applicants until 30th June 2025 to submit the required paperwork.

The federal government had proposed this extension in March, seeking to provide more time for applicants to gather and submit their documentation properly. After some time, all states and territories, which manage HomeBuilder on behalf of the federal government, finally reached an agreement to approve the deadline extension.

This decision aims to facilitate a smoother application process for HomeBuilder and offer applicants the opportunity to meet the requirements without unnecessary rush or pressure.

“This will help thousands of existing applicants access grants of up to $25,000,” the government said.

“It gives all existing HomeBuilder applicants another two years to finalise construction and submit all required supporting documentation.”

“The extension is available for all applicants, including for those with contracts for off-the‑plan purchases, new builds and renovations.”

“Applicants do not need to do anything to access the extension – it will automatically apply.”

HomeBuilder applications closed in 2021, so the grant is no longer available to new applicants. This extension applies only to those who had already been approved, but were affected by supply constraints and construction industry delays.

There’s so much news around at the moment, it’s hard to know where to look.

To make life easier, I’ve collated four important stories about property, finance and cars.

– Auction clearance rates rise

– Government tightens BNPL rules

– New cars in high demand

– Big home loan shift taking place

Read more below.

–

But first, our regular as clockwork updates!

We are almost past the 30 June bun rush.

For some of us it makes for a busy time but if not for you, hopefully you will have a few moments of quiet reflection on the Fiscal Year that was – full of rate rises, with dashes of uncertainty on property prices; and of course, inflation, which underpinned everything which has happened.

Covid has a lot to answer for!

–

Lender’s Carrots

There are so many interesting developments with lenders at the moment.

I am giving you some recent examples for your consideration over a $5.50 latte.

And of course, if you want to find out more…..

Contact me on 0411 190 474

So let’s continue..

#1 The Release of the Mortgage Prisoners

Some lenders are assessing servicing on their loans with a ‘reduced buffer’ when the applicant is refinancing.

The logic is a bit complicated but here goes: up until recently, for their servicing assessment, lenders have been applying a buffer of 3% OVER the quoted interest rate; thereby ensuring their clients can make mortgage repayments even if there are future rate increases (by up to 3%).

This caused a problem for borrowers who were showing they could repay their current loan but were unable to demonstrate the capacity to repay a loan with a 3% higher rate; thus preventing them from refinancing even if the refinanced rate was going to save them money.

So whilst the Cashbacks as an incentive to refinance are going, going gone, the reduced buffer is allowing borrowers to migrate from one lender to another.

But as with most things, the devil is in the details….

Nevertheless, I have just put in an application for a client who would not have been able to refinance without the reduction in the buffer rate.

#2 Private Lenders are all the rage

Who would have thought that lenders offering loans at circa 10% would be so popular!

Well, the reasons are simple. They will do deals that the mainstream lenders won’t.

They need an entity other than you or me (aka a company), and it should preferably be trading or have traded.

But apart from that, they are coming to the rescue in ways I would not have imagined in mid 2022.

#3 Retirees, Grey Power, and Unused Equity

There are now a number of products to unlock the equity in your home if you are a retiree.

Reverse mortgages are one option but I now have a couple of alternatives.

So if you are a retiree, or you know one, and you want to access the equity in your home or other properties AND you don’t want to be saddled with a loan you have to repay each month, you have OPTIONS!!!

#4 SMSF Loans that are reducing your retirement pot

Let’s start with a truism: you put money into your super fund to allow you to spend more in your retirement; not to pay exorbitant fees and charges to a lender.

So, if your Self Managed Super Fund has a loan and you have had this loan on ‘set and forget’, it’s time to WAKE UP!!!

If you have had this loan for a few years, it is highly like you are paying OVERS on the rate.

And, whilst you can’t see or touch this money, it could represent quite a bit of your super fund’s income you are giving back to your lender (who, by the way, loves you more each month you leave it where it is).

#5 Bridging Finance made simple

Just the mention of bridging finance turns most clients (and brokers) to jelly.

It’s complicated, you have to take into account ‘peak debt’ and ‘end debt’ and even the calculators are often messy and hard to work out.

Well, now there are OPTIONS!!! With NO SERVICING requirements!

With a typical bridging loan, you can of course get your loan organised for your new property now.

But in today’s changing landscape, have you factored in that ‘Today’s best value lender’ may not be ‘The best value in 3 to 6 month’s time lender’?

I wouldn’t have considered this in years gone by – but these days with so many changes in the lending landscape, I would.

There are now options where you don’t actually PAY ANYTHING until your current property is sold (all the costs and charges come out of the settlement proceeds).

Yes, you pay a premium, but for many borrowers, the timeliness, ease of use and flexibility for some of these options will make these options a worthwhile consideration.

#6 I’m selling but I have NO CASH!!!

“I’m asset rich but cash poor and I DON’T want to convert my assets to cash to pay for agent’s costs, marketing costs, my new car, my holiday, my deposit for my next home.”

Well, I hear you! There are now products which can release the cash in your property with nothing to pay until settlement.

They aren’t cheap but sometimes, when you factor in the alternatives, they are. Plus, they are easy, fast and simple.

–

Our survey results are in!

Our question was:

When purchasing a property, who do you use for organising your property and loan protection insurance?

Some observations:

Wow! Let this sink in….

70% of loans are now written via a finance and mortgage broker (i.e. only 30% of customers are going direct to a bank)

BUT

– only 30% of people use an insurance broker

AND

– a further 27% buy online.

Here is what I know. And yes, I am biased because I do use a broker. But you will see why you might like to consider using a GOOD Insurance Broker (we’ll call them GIBs)

GIBs find the best deals.

– GIBS have access to insurance underwriters who only deal with brokers. You don’t.

– GIBS help you lodge your claims and they help you get PAID. For me, this is a BIG BIG benefit.

– GIBS take the uncertainty and hassle out of insurance. Form filling, claiming, comparing, not getting ripped off….

So particularly if you have a business, USE A GOOD INSURANCE BROKER.

I have a couple of brokers I would recommend – just ask me for some names.

Please email me your Good Insurance Brokers

–

Research from Domain has uncovered one key statistic that suggests the national housing market is recovering.

The combined capital cities had a clearance rate of 71.0% in May – a significant increase on the year before (55.8%) and the highest figure since October 2021.

Over the year, clearance rates rose in four of the five major auction markets – Sydney (by 21.3 percentage points), Melbourne (14.2 points), Brisbane (7.5 points) and Adelaide (6.7 points).

The sole exception was Canberra, where clearance rates fell by 0.3 percentage points.

“The continual rise in clearance rates aligns with the broader momentum that has built as Australia’s housing market begins to recover,” Domain’s Chief of Research and Economics, Nicola Powell, said.

While clearance rates are surging, auction listings remain weak across the combined capital cities.

“The mix of high interest rates, rising prices and rents, and lack of housing supply, shows that even though there are less homes going under the hammer, buyers are willing to place favourable auction offers when choice remains limited,” Dr Powell said.

See how much you can borrow now!

–

Buy-now-pay-later (BNPL) products will soon be regulated like traditional loans, after the federal government concluded they’re loans in all but name.

“BNPL looks like credit, it acts like credit, it carries the risks of credit,” Minister for Financial Services Stephen Jones said in a speech to the Responsible Lending & Borrowing Summit.

Under the government’s new legislation, which will be introduced to parliament by the end of the year, BNPL providers will be required to hold Australian Credit Licences and comply with responsible lending obligations, just like home loan and car loan lenders.

But Minister Jones said the issue is nuanced. On the one hand, there are “unacceptable levels of unaffordable lending occurring” in the BNPL sector right now.

On the other hand, BNPL has “provided a valuable source of competitive pressure on traditional credit products, such as credit cards or payday loans”.

Therefore, he said the government’s legislation would strike an appropriate balance.

“Our plan maintains the benefits of BNPL that many Australians enjoy, and we must ensure that providers will have appropriate safeguards in place, and we must ensure that they operate honestly, efficiently, and fairly, in line with other regulated credit products,” he said.

–

While consumers have reduced their spending in some parts of the economy, they’re buying cars in record numbers.

Australians purchased 105,694 new vehicles in May, which was a record for the month of May, according to the Federal Chamber of Automotive Industries (FCAI).

The May result was 2.7% higher than the previous May record (in 2017) and 12.0% higher than the year before.

Meanwhile, the number of new vehicles sold in the first five months of 2023 (456,833) was 4.3% higher than the same five-month period in 2022.

FCAI Chief Executive Tony Weber said the recent spike in sales followed an extended period where deliveries were hampered due to shipping and logistics problems.

“This result is a signal that we are starting to see some improvement in supply. However, not all issues are resolved, and our members continue to work with their customers to improve vehicle delivery times,” he said.

Mr. Weber said that while households and businesses were concerned about rising costs, reports from automotive dealers suggested demand remained firm.

Get in touch if you need a car loan!

–

Australia is halfway through an historic shift of about two million home loans reverting from fixed to variable interest rates.

As of May, about 30% of outstanding home loans were fixed, according to the Reserve Bank of Australia (RBA) – a share that is falling from historically high levels.

An RBA research paper found that fixed-rate borrowing surged during the 2020 pandemic – in response to record-low fixed rates – “peaking at almost 40% of outstanding housing credit in early 2022, or roughly twice their usual share from prior to 2020”.

Most borrowers who fix do so for three years or less, so most fixed-rate loans that were taken out during the pandemic surge have expired recently or will do so soon.

“This equates to 590,000 loan facilities in 2022, 880,000 in 2023 and 450,000 in 2024. The profile of expiring fixed-rate loans is similar across the states and territories and between capital cities and regional areas,” according to the research paper.

Borrowers who are reverting from fixed to variable are generally being confronted with much larger repayments, as interest rates have risen significantly since mid-2022.

If you’re in that position, or will be soon, contact me to discuss your refinancing options, as I may be able to help you switch to a lower-rate loan.

–

For FREE Property Reports: Click Here

Tired of feeling like your loan is holding you hostage?

Well, it’s time to break free and unleash the power of refinancing!

Picture this: lower interest rates, reduced monthly payments, and newfound financial freedom.

Refinancing your current loan is like hitting the reset button on your financial journey.

It’s your ticket to escape the clutches of high interest rates and embrace a brighter future.

So, why settle for a burden when you can seize the opportunity to save money, pay off debts faster, and maybe even treat yourself to that well-deserved vacation?

Get ready to embark on a thrilling adventure towards a happier, more prosperous tomorrow.

Buckle up and let the refinancing roller coaster ride begin!

#1 of 13 Save money on your interest, fees and charges

FACT: The ACCC has shown most borrowers are paying thousands of dollars more than they could.

And, the longer you have had your loan, the higher this cost will be.

#2 of 13 Lower your repayments

FACT: The rate increases since May 2022 have added over $1,050 in repayments to a $500,000 mortgage – an increase of almost 50% in monthly repayments.

#3 of 13 Your Fixed Rate loan period is about to expire

FACT: Most of the 2% Fixed Rate loans are about to revert to their lender’s Variable Rate.

This will lead to significantly higher monthly repayments.

A $500,000 loan’s monthly repayments will increase by over $1,300 per month, a 71% increase in monthly repayments.

#4 of 13 You want to reduce your financial stress by decreasing your loan repayments

FACT: If you extend your current home loan term, you can significantly reduce your monthly repayments.

#5 of 13 You want to consolidate your various loans

FACT: If you have a property, you can use the equity in your property to reduce your overall current monthly interest you are paying on credit cards and personal loans.

#6 of 13 You want to take advantage of the current attractive Cashback offers

FACT: A Cashback can turn many higher interest and repayment loans into a better alternative for the first 2 years of your loan (and we recommend you look at your refinancing options every 2 years to keep your rates sharp)

#7 of 13 Your equity in your property has increased

FACT: Many lenders offer better rates as your Loan to Value Ratio (LVR) decreases. Your LVR decreases when your property goes up in value and also when you pay off some of your Principal.

#8 of 13 You have personal goals you need to fund

FACT: Whilst rates have gone up, home loan rates are still way cheaper than a personal loan or credit card.

#9 of 13 You want to build your wealth

FACT: Most Australians do not use the equity in their property to increase their wealth.

#10 of 13 You want a more suitable loan product

FACT: Many loans are advertised on price, ignoring potentially added-value features.

These features may actually save you more than their cost.

#11 of 13 You want financial freedom

FACT: Paying more than your normal monthly repayments or, paying your monthly amount weekly or fortnightly, can reduce your loan term by years.

#12 of 13 You are part of a family break-up

FACT: Many couples who separate or divorce want to keep their family home so their kids have stability.

#13 of 13 You owe the tax man (and you want to save your business)

FACT: The ATO is currently blitzing businesses and demanding repayment of the unpaid Covid-period tax debts.

If you want to avail our free property report, click here: Free Property Report

Book a call with me using this link: Find out more!

If you like keeping up to date with what’s happening with property, finance, cars and the economy, you won’t want to miss this newsletter. Here are four big stories:

– Govt plans RBA cash rate reform.

– HomeBuilder deadline extended.

– Cars to become more efficient.

– Inflation continues falling

With inflation falling, it’s good to see that the mortgage holders’ heavy-lifting is paying dividends for the entire community!

Read more below.

But first, our regular clockwork property updates!

There has been a whole lot going on – (and I won’t even go into my kids, school camps, cross country, and of course the onset of a chilly start to winter – I wish there was a ‘green’ log fire option).

Lender’s Carrots

A slightly unusual carrot – a survey from our friends at Banjo Loans. Banjo did a survey of small to medium businesses (SMEs) and came up with some interesting data and observations. Whilst particularly relevant for brokers and accountants, it also has some insights into how business owners are viewing the next year or so. Click the link below to obtain access to this report.

Your copy of Banjo Loans’ SME report

Client Story

An unusual one…..

A financial planner had a 70-year-old couple as clients. They had their funds tied up in a property investment fund and they needed cash to enable settlement for their retirement home. There are loan products for the ‘over 65’s’ such as reverse mortgages but in this case, these products could not be used.

However, there was a product which came to the rescue. It is basically an equity release product and is normally used for those who need cash prior to settlement from the sale of their home (i.e. asset rich cash poor). The beauty of this product is there is no repayments or interest payments to be made until settlement.

After discussions with the lender we ‘manufactured’ a solution for our clients using this product – resulting in a happy couple and a happy financial planner!

If you have an interesting loan scenario and require an innovative solution, reach out, and let’s chat.

Interesting Loan Scenarios – reach out!

Our survey results are in!

Our question was:

If you were to sell a property, would you use a vendor advocate?

Some observations:

– I suspect a lot of people have heard about Buyer Advocates and Investment Property Advisors but the purpose and use of Vendor Advocates is not as well known.

– Vendor Advocates help you choose the right real estate agent (REA) to sell your property. They are often remunerated via a commission split with the real estate agent selected.

– Their job is to make sure your selected REA does all the things they should be doing when selling your property. I am not sure about you, but when I have sold a property, I have basically let the sales agent do what they do and all I have done is get weekly reports and updates. I try to be useful but to be realistic, my knowledge is much less than the agent’s knowledge so I am often of not much value.

– A good Vendor Advocate can do a number of things: Apart from making sure you are selecting the right agent to sell your property, they earn their keep (and their reputation) by adding value to your sale and making sure your agent goes the full nine yards when selling your property.

– A good Vendors Advocate is well-versed in the real estate sales process so they know what questions to ask on your behalf and they know what is going on in the market from their regular discussions with agents in your area.

– But, like any service provider you always want a good one! I have a number of Vendor Advocates who I have spoken to and they want to make sure they are seen as adding value for their clients. After all, referrals from their happy clients is often their best form of marketing.

Find out more about Vendor Advocates

Regional Property Report Updates

For investors, this is a bonanza offering for those regions around Australia you are not familiar with. The level of detail and research is ‘second to none’ so delve into them before making your next property investment decision.

And, if you don’t have a property investment advisor, do yourself a HUGE favour and make sure you use one. I have quite a few seasoned professionals who can assist you (including the authors of the Regional Property Reports referred to above), so I can certainly put you in contact with someone who can make your next buying decision a better one.

And remember, your BIGGEST cost of your next property purchase is the opportunity cost of choosing the wrong property. A 2% to 3% inferior annual return adds up to big $$$ over 5 to 10 years.

You can access over 30 Regional Property Market analyses. Many of these Reports have over 50 pages of detailed information including whether to consider to Buy, Hold or Sell.

The regions cover all capital cities plus regional cities across Australia.

The last 3 months updated Reports:

Click here for access to our Regional Reports

Government plans to reform how RBA sets cash rate

Treasurer Jim Chalmers has accepted all 51 recommendations put forward by a federal government-commissioned review of the Reserve Bank of Australia (RBA).

As part of the proposed changes, legislation will be introduced by Dr. Chalmers to establish two separate boards—one for overseeing monetary policy, including the setting of the cash rate, and another for managing the Reserve Bank’s internal governance.

Furthermore, the RBA will be granted a new mandate that emphasizes the pursuit of “economic prosperity and welfare of the people of Australia now and in the future” as its overarching purpose, rather than treating it as a distinct objective solely for monetary policy.

Treasurer Chalmers emphasized the importance of having the most effective central bank and monetary policy framework to address current and future economic challenges.

He noted the positive reputation and high-quality staff of the RBA, acknowledging its past contributions to Australia’s economic outcomes. However, the review identified various opportunities for strengthening the country’s monetary policy framework over the last three decades.

HomeBuilder documentation extended to 2025

Under a new initiative from the federal government, applicants for the HomeBuilder incentive have been granted a two-year extension.

Initially, the deadline for applications was on 14 April 2021, with a subsequent deadline of 30 April 2023 for submitting supporting documentation. However, this deadline has now been further extended to 30 June 2025, but its applicability depends on the acceptance of this change by individual states or territories.

The purpose of this extension is to provide support to individuals who made financial commitments with the expectation of receiving the HomeBuilder grant but faced challenges due to supply constraints and delays in the construction industry.

“I thank states and territories for their feedback on the Government’s proposed extension and the updated data they have provided on outstanding, existing HomeBuilder applications,” Minister for Housing Julie Collins said.

Car manufacturers told to lift their game on fuel efficiency

In an effort to enhance fuel efficiency, the federal government has initiated the process by releasing a consultation paper and inviting public input.

Fuel efficiency standards necessitate that global vehicle manufacturers, as well as their local suppliers, progressively enhance the average fuel efficiency of new cars.

Minister for Transport Catherine King and Minister for Climate Change and Energy Chris Bowen noted that Australia is among the few developed nations that do not currently have fuel efficiency standards in place. Consequently, there is no obligation for global vehicle manufacturers to introduce their most advanced fuel-saving technologies to the Australian market, including high-efficiency internal combustion engine technology, hybrids, and electric vehicles (EVs).

“With a fuel efficiency standard in place, Australians can expect to continue to access the same types of vehicles they do currently, from hatches to 4-wheel drives, utes to vans and everything in between. But they will also get the choice of more efficient petrol and diesel engines, more hybrids, plug-in hybrids and battery EV options available for sale.”

Once the consultation period is over, the government will develop a model for a fuel efficiency standard and then introduce legislation to parliament.

Get in touch if you need a car loan

Inflation falls for third consecutive month

Consumers can find encouragement in the recent trends indicating a decline in inflation, suggesting that it may have reached its peak last year.

According to the Australian Bureau of Statistics, inflation reached a high of 8.4% in December. However, it subsequently decreased to 7.4% in January, further declining to 6.8% in February, and reaching 6.3% in March.

It is important to note that the mentioned inflation reading represents an average, implying that not every product or product category experienced a price increase of 6.3%.

Inflation ranged from 0.8% for transport to 9.5% for housing, while prices also rose 3.2% for clothing & footwear, 6.6% for insurance & financial services and 8.1% for food & non-alcoholic beverages.

The Reserve Bank has forecast that inflation will fall to 4% by the end of this year, 3.25% by the end of next year and 3% by the end of 2025.