Osinski Finance Updates

Could your home loan pre-approval be out of date?

Wed, 22 Apr 2026 23:12:15 GMT

Having loan pre-approval can be a smart move for home buyers. But the recent Reserve Bank cash rate hikes could leave your pre-approval in need of an update.

There’s a lot to love about home loan pre-approval.

It shows how much a bank will let you borrow for a home – that’s your ‘borrowing power’.

Pre-approval also indicates you’re a serious buyer, providing extra bargaining clout in price negotiations.

And while pre-approval typically only lasts for three to six months, that can be sufficient time for many buyers to find their ideal home.

But there’s a catch.

Pre-approval is not a guarantee. Rather, it is a guide of what you can borrow based on circumstances at the time pre-approval was issued.

And the two rate cash rate hikes the Reserve Bank of Australia has implemented this year may have chipped away at your borrowing power.

That can make it worth reviewing your mortgage pre-approval.

Here’s what to weigh up.

Your borrowing power may have altered

Your borrowing power, also known as ‘borrowing capacity’, is a key factor when it comes to buying a home.

It’s the amount a bank is willing to lend for a home loan, and it’s based chiefly on your income and living expenses.

However, interest rates also play a role.

A rise in interest rates will mean higher repayments, and this has the potential to reduce your borrowing power.

As an example, Canstar says a solo home buyer on the average full-time wage ($106,950) will be able to borrow around $12,000 less as a result of the March 2026 rate rise.

Add in the 0.25% February rate hike, and that same home buyer could be looking at a $25,000 cut to their borrowing power.

A couple on the average wage may have seen their combined borrowing power drop by $49,000 since February.

That’s why it’s so important to call us to understand your true borrowing power as it currently stands.

Yes, there are online calculators available. But these may not consider every aspect of your personal situation.

The risk of outdated pre-approval

Taking a ‘she’ll be right’ approach to your loan pre-approval could work against you.

You may find, for example, that after negotiating a great price on a place you’re keen to buy, you struggle to get the home loan you need.

Worst case scenario: you risk being the winning bidder at auction but failing to get finance to complete the purchase – a situation that could mean losing your deposit.

Here too, a call to us can confirm if you are good to go for a home loan before you start putting money on the table for a property purchase.

How to boost your borrowing power

The good news is that there are steps you can take to potentially boost your borrowing power – no matter what interest rates are doing.

Here are a few ideas to get started.

Review household expenses – even a small change in non-essential spending can make a difference.

Lower the limit on your credit card – lenders often base your borrowing power on the assumption your credit card is maxed out. Think about asking your card issuer to trim your credit limit. Or close it altogether.

Clear other debts – a lingering car loan, the remains of student debt, and even an ongoing buy now, pay later balance can impact your borrowing power. Knuckling down to clear the slate could see you rewarded with increased borrowing capacity.

Know that rate matters – the rate you pay isn’t the sole decider of whether a loan is a good match for your needs. But the lower the rate, the more you may be able to borrow.

Talk to us for up-to-date loan pre-approval

Successful home buying doesn’t have to mean borrowing as much as you can.

However, it makes sense to start the ball rolling with a clear idea of your current borrowing power.

Talk to us to know if your loan pre-approval is out of date, or to organise new pre-approval on a loan that’s well-matched to your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Is Now a Good Time to Buy a Home in Australia as Rates and Fuel Prices Rise?

Wed, 22 Apr 2026 16:10:05 GMT

Higher interest rates and rising petrol prices would normally cool buyer confidence. That is not what we are seeing.

While fuel costs have dominated the news cycle, property values have kept moving higher in the background. Over the past 12 months, national home values climbed 9.9% , marking the fastest annual pace of growth since June 2022.

That strength has held up even with two rate hikes in 2026 and a cost-of-living backdrop that remains tight for many households. Buyers are still active. Expectations are still firm. And many Australians still believe property prices have further to run.

A recent Westpac-Melbourne Institute survey found a clear majority of consumers still expect home prices to rise over the next year. Only around one in ten think values will fall. That helps explain why Westpac also found that 83% of Australians believe now is the time to buy.

The best time to buy a home in Australia depends on your position

Buying a property is not a small move. Most people only do it a handful of times in their lives. It is personal, financial, and emotional all at once. That means the right timing is not just about the market. It is also about whether you are ready.

That includes your income, savings, borrowing power , and how comfortable you feel managing repayments. This is why getting clear advice matters before jumping in.

Waiting for prices to fall can sound sensible. But it can also backfire. If the market stays firm or prices rise again, sitting on the sidelines may mean paying more later. For many borrowers, the good time to buy a home in Australia is not when every headline looks calm. It is when their finances are in order, and the loan structure suits their goals.

Home values are still forecast to rise in 2026

Higher interest rates are expected to affect the market. But a slower pace of growth is not the same as a major downturn.

ANZ expects price growth to ease rather than collapse. Its forecasts suggest capital city home prices will rise 2.8% in 2026, followed by another 2.1% in 2027.

The bigger story is that conditions will vary by city. Some markets are expected to post strong gains, while others may soften slightly for a period.

Perth is forecast to lead with 12.3% growth this year. Brisbane is tipped to rise 9.7%, while Darwin is expected to gain 8.0%. Adelaide is forecast to increase 5.75%, Hobart 3.7%, and Canberra 1.6%.

Sydney and Melbourne are the exceptions, with values expected to soften by 0.7% and 1.7%, respectively, in 2026. Even then, those are modest shifts rather than sharp corrections. Both cities are forecast to return to growth in 2027, with prices expected to rise by at least 2.6%.

That matters for anyone asking is now a good time to buy a home in Australia, because current forecasts still point to a market that is holding up better than many expected.

Why do many still see this as a good time to buy a home in Australia

One of the biggest reasons prices are proving resilient is simple. Demand is still stronger than supply.

The number of homes listed for sale remains tight. New listings across most state capitals are lower than they were a year ago. At the same time, although more homes are being built , NAB says construction levels are still not keeping pace with population growth .

That imbalance helps explain why values are staying elevated. It is also one reason many households still view this as the best time to buy a home in Australia, especially if they have found a property that suits their long-term plans.

Buyers are still moving when opportunities appear

Limited supply has not scared buyers away. If anything, it has kept competition alive.

Cotality estimates that close to 560,000 homes have been sold so far in 2026 . That is almost 6% above the five-year average. NAB has also reported that home loan lending rose sharply in the second half of 2025, with owner-occupiers rather than investors driving mortgage activity in the final quarter of the year.

That says a lot about current sentiment. Rate hikes have not removed demand. Uncertainty in the Middle East has not done it either.

According to realestate.com.au, some first-home buyers and upgraders are treating slower price growth as a chance to act . Auction demand also remains hot in parts of the market that are popular with first-home buyers. In that environment, the best time to buy a home in Australia can come down to spotting an opening before competition builds again.

So, what should buyers take from all this?

No one can say with certainty where prices will move next month or next quarter. Property markets do not follow a neat script.

What we do know is that many Australians who bought earlier are relieved they did. Over the long run, property values have generally trended higher rather than lower. That does not mean every purchase works out perfectly. It does mean that delaying purely in the hope of a big fall can be risky.

If you are trying to decide to buy a home in Australia, the answer depends less on fear-driven headlines and more on your personal numbers. And whether it is a good time to buy a home in Australia for you will come down to readiness, borrowing power, and the type of loan you choose.

Speak with Osinski Finance about your next step

If you are weighing up a purchase, Osinski Finance can help you move forward with clarity. We assist clients with home loan s , investing in a property , and becoming a first-time home buyer , with practical guidance tailored to your goals and financial position. Whether you are ready to buy now or are still working out the best time to buy a home in Australia, our team can help you understand your options and choose a loan that fits. Contact us today to discuss your next step.

One in Five Investors Are Buying Investment Property Interstate

Wed, 15 Apr 2026 21:59:19 GMT

Is the grass greener across the border? For plenty of Australian investors, it just might be.

Investor activity has been running hot recently, with investment loans hitting record highs. At the same time, rising home prices have pushed many buyers to look beyond their local market. That is why more Australians are considering investing in interstate property rather than staying close to home.

The appeal is not hard to understand.

Australian property has given investors a lot to smile about lately . V acancy rates remain low in many areas, rents have been climbing , and strong price growth has meant more than 93% of recent investor sales made a profit . That is the highest level seen in a decade.

Unsurprisingly, this trend has encouraged more investors to jump into the market and buy rental properties. In turn, new investment loans have surged to record levels .

But here is the intriguing part.

According to PropTrack’s latest Investor Report, as many as one in five investors across Australia are now purchasing outside their home state. In some parts of the country, including the ACT, Tasmania, and the Top End, 40% or more of investors are buying interstate.

So, is it a smart move? Often, yes. But there are a few things worth weighing up first.

Why interstate investing gives investors more choice

One of the biggest benefits of buying as an investor is flexibility.

Unlike a home you plan to live in, an investment property does not need to be close to your work, family, or social life. That opens up far more options. You can focus less on convenience and more on the numbers.

This is one reason interstate property investment can make sense. It can expose you to a different market, so you don't rely on one city or region. That added diversity may help spread risk across your portfolio.

Of course, location still matters. You still want a market with strong capital growth potential, solid rental returns, and consistent tenant demand. Sometimes your local area will offer all three. Occasionally, it will not.

And that brings us to another major reason investors head across state lines.

Affordability can make interstate property more attractive

Property values vary significantly around Australia, and that can heavily influence where investors choose to buy.

Take Sydney as an example. With a median home price above $1.295 million , many investors may find it difficult to buy a rental property locally. Yet that same budget could potentially stretch further in markets such as Hobart at $737,742, Melbourne at $828,249, or Adelaide at $937,021. A regional purchase may also be within reach, with the national and regional median sitting at $758,788.

That difference matters.

For many Australians, buying investment property interstate is not about chasing a trend. It is about finding an entry point they can actually afford. In some cases, that lower buy-in price may also leave room for healthy rental returns.

What to watch out for before investing in interstate property

While interstate property investment can be a straightforward process, it does come with a few extra challenges.

The first is local knowledge. If you are purchasing in another state, you may not know the neighbourhoods, tenant profiles, growth pockets, or potential red flags the way a local would. That makes research essential.

The second challenge is practical. It is a lot harder to inspect homes when they are not just down the road. You cannot always duck out for a quick Saturday inspection and be back by lunch.

This is where a buyer’s agent can be useful. A buyer’s agent is a licensed professional who knows the local market, can help identify properties that suit your goals and budget, and may also assist with negotiations.

That support is not free, of course. A buyer’s agent may charge a flat fee or a percentage of the purchase price . It is an added upfront cost. However, when venturing into an unfamiliar market, this expense could prove to be worthwhile.

There is also property management to think about. If you own a rental in another state, you will likely need a property manager to handle the day-to-day running of the property. That means another ongoing cost, so be sure to factor it into your numbers before committing to any interstate investment strategy.

How investment loans work for an interstate purchase

The positive news is that you do not need to use a lender based in the state where you are buying.

When buying investment property interstate, you can still apply for a suitable investment loan through lenders from anywhere in Australia. What matters most is finding a loan that fits your circumstances, borrowing capacity , and long-term plans.

The loan process itself is broadly similar to applying for an owner-occupied home loan. But there is one detail worth paying attention to. Some lenders take expected rental incom e into account when assessing how much you can borrow, while others do not.

That might sound like a small difference, but it can have a real impact on your borrowing power and overall budget.

Talk to Osinski Finance about interstate property investment

If you are thinking about building wealth through property, Osinski Finance can help you make sense of the numbers before you commit. We help clients with home loans , investing in a property , and becoming a first home buyer , with practical guidance that matches real goals and real budgets.

Whether you are exploring your first interstate purchase or planning your next move, speak with us early. We can compare lenders, explain how different banks assess investment applications, and help you understand your borrowing options with clear, practical advice from our loan advisor . Message us to chat about your plans and find the right loan strategy for your next step.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5% Deposit Scheme Helps More Than 300,000 Aussies Buy Their First Home

Wed, 08 Apr 2026 21:51:51 GMT

Saving a full 20% deposit can feel like a long, expensive wait, especially when property prices keep pushing higher. The 5% deposit scheme in Australia gives eligible buyers a chance to get into the market sooner, without spending years trying to hit a deposit target that keeps moving.

Since launching in 2020, the Australian Government’s scheme has helped more than 300,000 first-home buyers purchase a place of their own. It has also supported the construction of close to 30,000 new homes, which is no small effort in a market crying out for more supply.

For many buyers, that support has been the difference between continuing to rent and finally buying. In fact, more than one in three first home buyers used the scheme from 2024 to 2025.

If you are wondering whether this scheme could help you leap into homeownership, it is worth understanding how the 5% deposit scheme works , what it can be combined with, and where you need to be careful.

How the 5% Deposit Scheme Australia Works

The biggest hurdle for many first home buyers is not proving they can manage loan repayments. It is pulling together a 20% deposit before prices move again . This 5% deposit scheme tackles that problem head-on.

Normally, if you borrow with less than a 20% deposit, you will usually need to pay lender's mortgage insurance, also known as LMI . That cost can run into the thousands, and it adds another hurdle when you are already stretching to get your foot in the door.

Under this scheme, the federal government guarantees part of the loan . That means eligible buyers can enter the market with a lower deposit and avoid paying LMI.

There are also no waitlists, no income limits, and no place limits . You can buy an existing home or build a new one, provided the property sits within the price cap for your area and you meet the eligibility rules .

The borrowers often ask about what is designed to shorten the savings timeline without removing the need for proper planning. In plain terms, the scheme market participants use can help you buy sooner, provided the numbers still work for your budget.

Why the 5% deposit scheme for first-time home buyers matters

One of the most useful parts of this support is that it does not have to work alone. Eligible buyers may be able to combine it with other first-home buyer incentives offered by federal, state, or territory governments.

That may include the First Home Owner Grant , which provides a one-off payment in many states and territories for eligible buyers purchasing or building a new home. Depending on where you buy, you may also qualify for stamp duty concessions or waivers.

There is also the First Home Super Saver Scheme , which can help some buyers grow part of their deposit through super. Used together, these incentives can make a meaningful difference to how quickly you move from saving to buying.

The 5% deposit scheme can be especially useful when paired with these other forms of assistance. For many households, the scheme for first home buyers is not about taking shortcuts. It is about using every available support option wisely.

The possible downsides to think through carefully

A smaller deposit can help you buy sooner, but it is still important to look at the full cost of the loan over time.

When you put down less up front, you need to borrow more. That can mean higher repayments, more interest, and a longer wait to build equity in your home. It may also make refinancing harder later on.

That is why the home loan matters just as much as the scheme itself. The interest rate, fees, loan features, repayment setup, and future flexibility should all be looked at carefully before you commit.

Good advice can help you avoid an expensive mistake. The scheme may get you into the market faster, but the wrong loan can still cause problems later.

Talk to Osinski Finance before you make the leap

If you are thinking about using this pathway, contact Osinski Finance before you make a decision. We help clients with home loans , investing in property , and buying a first home , including support for those exploring the 5% deposit scheme for first home buyers .

Our team can explain your options clearly, compare suitable loans, and help you understand what you can afford. Message us if you want practical advice and the right support before you buy.

Increase in Property Listings Gives Home Buyers More Room to Move

Wed, 01 Apr 2026 22:30:13 GMT

If you have been house hunting lately, you have probably felt the frustration. Choice has been tight, good homes have moved fast, and plenty of buyers have had to settle for less than they wanted. The good news is that rising property listings are starting to change the picture, and that could give buyers more options than they have seen in months.

Price is still the big hurdle for first-home buyers. That part has not changed. When there are not enough homes on the market, competition heats up, and buyers end up paying more or compromising on what they want.

That shortage has been a real issue. Westpac says supply constraints have been one of the biggest barriers for Australians trying to buy their first home, with one in four first home buyers, or 26%, saying a lack of listed properties has held them back.

Now, though, conditions may be starting to shift.

According to SQM Research, new listings “surged” 48.6% nationally in February, making it the strongest monthly rise since spring 2025. New listings also kept climbing over the four weeks to mid-March.

That matters because an increase in property listings can create breathing room for buyers who have been stuck in a market with slim pickings.

Where the Property Listings Increase Is Strongest

Cotality reports that March has brought year-on-year growth in new listings of 10% or more across Melbourne, Brisbane, Hobart, and Canberra.

Sydney and Adelaide have also moved higher, though at a more modest pace. Sydney is up 4.1%, while Adelaide has recorded a 4.8% lift in new listings.

Perth and Darwin are the exceptions. They are pushing against the broader trend, with new listings down 12.8% and 12.3%, respectively, compared with a year ago.

Even so, rising property listings across many capital cities suggest the market is starting to loosen. That is good news for buyers who have had too few properties to choose from for far too long.

Why Rising Property Listings Matter for Home Buyers

Across the capital cities, the four weeks to mid-March saw an extra 27,772 homes hit the market. That is not a small bump. It is a meaningful lift in available stock.

The most obvious upside of an increase in property listings is choice. When more homes are available, you are less likely to feel pushed into a property that only half fits your needs. You have a better shot at finding the layout, location, block size, or features you actually want.

More supply can also take some heat out of price growth. It does not automatically send values backwards, but it can stop prices from running too hard, too fast.

That said, buyers should not assume a jump in listings means home values are about to fall. Listings are still 9.1% lower than they were a year ago , so we are not yet in a balanced market where supply and demand are evenly matched.

That is why waiting on the sidelines could be risky. If you delay your plans in the hope that prices will soften, the market may move the other way.

SQM Research ran the numbers and found that even if the Reserve Bank lifted interest rates by another 0.25% by mid-year, capital city home values could still finish the year 3.0% higher . In cities such as Perth, Brisbane, Darwin, and Adelaide, home values could rise by at least 10%.

In other words, it may give you a better buying environment, but they do not guarantee cheaper properties.

What Buyers Should Do While the Property Continues to Increase

This is where strategy matters.

If the current property listings increase, giving you more homes to choose from, the next step is to make sure you are ready to act when the right one appears. That starts with knowing your borrowing power.

Your borrowing capacity may have changed following the March rate hike. A clear understanding of what you can comfortably borrow helps shape your budget and keeps your search grounded in reality.

It is also worth tracking local sales results and the time it takes for homes to sell. Values may not fall, but if properties begin sitting on the market for longer, buyers may gain more room to negotiate.

Pre-approval is another key piece of the puzzle. Westpac research shows that two in five home buyers see competition from other buyers as a major barrier to entering the market. In a market where conditions are improving but competition still exists, being organised matters.

Having pre-approval in place can help you move faster and more confidently than buyers who are still sorting out their finances after they find a property they like.

An increase in property listings helps, but it is most useful when your finance is sorted, and you know your next move.

Make the Most of Rising Property Listings With Osinski Finance

A changing market can create good opportunities, but only if you are prepared to use them. More stock gives buyers more flexibility, yet timing, borrowing power, and loan structure still play a big role in the outcome.

At Osinski Finance, we help with investing in a property , becoming a first home buyer , and refinancing your home loan . If you want clear advice, the right loan options, and support from start to finish, contact us to talk through your next step.

Double Trouble as the RBA Cash Rate Rise Lifts the Cash Rate to 4.10%

Wed, 25 Mar 2026 03:47:46 GMT

Mortgage holders across Australia have copped another tough update, with the Reserve Bank of Australia lifting the cash rate by 25 basis points to 4.10% in a narrow 5-4 vote.

That makes it the second increase this year, and, for many households, it is one more hit to an already stretched budget. If you are feeling frustrated, you would not be alone. With petrol prices already sitting high and eating into everyday spending, another rise feels especially hard to bear. Still, the majority of the RBA Board decided it had enough reason to move.

The central concern was inflation, which is proving stubborn, along with global economic uncertainty linked to the war in the Middle East. In other words, the Board was worried enough about price pressures to deliver a second consecutive rate rise in 2026.

In its statement , the RBA’s Monetary Policy Board said the data since its February meeting suggests that some of the increase in inflation reflects greater capacity pressures. The Board also pointed to the conflict in the Middle East, saying sharply higher fuel prices could add to inflation if they remain elevated.

Put simply, the RBA believes there is a real risk that inflation could stay above its 2 to 3% target range for longer than previously expected. And when that happens, borrowers usually feel the effects quickly. For many households, the RBA cash rate rise affects home loans by putting more pressure on the monthly budget.

How the RBA cash rate rise affects home loans

If you are on a variable rate, your lender will likely move to increase your home loan rate in the near future.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point increase could add about $77 a month to repayments. Over a year, that is around $924. Include last month’s increase as well, and the annual impact blows out to about $1,848.

For a borrower with a $750,000 loan, the increase is likely to be around $115 a month. That works out to roughly $1,380 a year, or $2,760 if you factor in the previous rise too.

And if your loan balance is $1 million, minimum monthly repayments could climb by about $154. Across 12 months, that is around $1,848 extra. Add in the February increase, and the figure rises to about $3,696.

Of course, those examples assume your lender passes on the full 25 basis point increase to your variable home loan . Many lenders do, but it is still worth checking what your bank actually announces before you make any decisions.

Understanding the RBA cash rate rise on the home loan impact

The numbers above matter, but there is another detail worth knowing. When rates eased down from the recent peak of 4.35% during 2025, many banks did not lower borrowers’ direct debit repayment amounts. Instead, they kept repayments the same, which meant more of each repayment went towards paying down the principal rather than the interest.

If your lender handled things that way, your minimum repayment may not jump with this latest increase. That does not mean nothing changes. The RBA cash rate rise home loan impact could simply show up differently, with a larger share of your existing repayment going towards interest and less going towards reducing the principal.

That distinction matters. For one household, a rate rise means a bigger monthly debit. For another, it means slower progress on paying down the loan. Either way, the RBA cash rate increase on home loans still affects how fast you build equity and how much flexibility you have in your budget.

This is also why it is worth checking what your lender actually does, rather than guessing. Policies can differ from bank to bank. Once lenders announce their moves, you will have a clearer picture of whether your repayment changes or whether the structure of your repayment changes instead.

Talk Through Your Options with Osinski Finance

Another rate rise is never welcome news, but it does not mean you are out of options. If it has been a while since your last review, now is a smart time to look at your loan and check whether it still suits your needs, especially if you are trying to understand the RBA cash rate rise on home loan impact on your repayments and overall budget.

At Osinski Finance , we help clients with home loans , investing in a property , and navigating the path to becoming a first-home buyer . Whether you want to refinance, compare lenders, plan your next property move, or make sense of your borrowing options, we are here to help you weigh it all up clearly.

Every borrower’s situation is different, which is why we take the time to look at the numbers and find a lending solution that fits.

Message us today to discuss your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why More Homeowners Are Using an Offset Account to Tackle Higher Rates

Wed, 18 Mar 2026 22:23:40 GMT

Who does not want to pay less interest and get rid of a mortgage sooner? That is exactly why more borrowers are paying attention to loan features that can quietly do some heavy lifting in the background.

With interest rates still at the forefront of their minds, many Australians are looking for simple ways to reduce the pressure. One option getting plenty of attention is the offset account , especially among borrowers who want savings without changing their lifestyle too dramatically.

The latest rate rise from the RBA has pushed homeowners to look harder at every available strategy. And one of the most popular options right now is a loan structure that helps trim the interest bill without changing the regular repayment amount.

NAB, one of the big 4 banks, says it is seeing “ offset accounts surge ” as borrowers search for low-effort ways to deal with rising rates. According to the bank, three-quarters of its home loan customers now use one.

Borrowers aged 40 to 60 are still the biggest users of offsets overall. But the strongest growth is coming from younger homeowners. NAB says the number of offset accounts linked to new loans for customers under 35 has almost doubled compared with last year.

So what is driving the interest? It comes down to a pretty simple idea. If your money can sit in the right place, it may help cut interest and shorten the life of your loan at the same time.

Why a Home Loan Offset Account Is Getting More Attention

An offset account for your home loan is an everyday transaction account linked to your mortgage . Instead of earning interest in the usual way, the balance in that account is used to reduce the amount of your loan that interest is calculated on.

That difference matters. If you have a mortgage balance of $500,000 and keep $20,000 in the linked account, the lender calculates interest on $480,000 rather than the full loan balance.

Your minimum monthly repayment usually stays the same. The benefit is that more of that repayment goes towards the principal instead of disappearing into interest. It is the same repayment amount, just working harder.

That is why this feature appeals to so many homeowners. It does not always require a major budget overhaul. It simply rewards borrowers who keep cash sitting in the right place.

In plain terms, it gives your savings another job. Rather than leaving that money idle, it helps reduce the interest charged on your mortgage every single day the funds remain there.

Over time, those savings can add up in a meaningful way. Less interest means more progress on the loan balance. And the faster the balance falls, the less interest gets charged in future months too.

That compounding effect is where the real value often sits. For borrowers who keep a healthy cash buffer, it can be one of the more practical ways to pay down a mortgage faster.

How the Savings Can Add Up

How much you save with an offset account depends on three main things. The first is the size of your loan. The second is how much money you keep in the linked account. The third is your interest rate.

Here is a simple example.

Say you have a $500,000 mortgage over 30 years with an interest rate of 5.99% and a comparison rate of 6.37%. Now, assume you keep $20,000 sitting in the linked account the whole time.

Using one bank’s online offset calculator, the potential savings are significant. Over the life of the loan, that setup could reduce total interest by $90,571 and help you become mortgage-free about 2.5 years earlier.

That is not pocket change. That is the kind of result that gets people to stop and look twice.

Of course, calculators are examples, not promises. Real savings depend on how your loan is structured, how much money stays in the account, and whether the interest rate changes over time. The important part is understanding what your own numbers look like, not someone else’s.

When an Offset Account for Your Home Loan Makes Sense

A home loan offset account can be a strong option for the right borrower, but it is not automatically the best fit for everyone. Like most loan features, it works best when it suits the way you already manage money.

The more cash you keep in the linked account, the stronger the benefit. That means it usually suits borrowers who keep solid savings and do not keep dipping into the account for extra spending.

One practical workaround is choosing a lender that offers multiple linked offset accounts. That can let you separate your money into buckets, such as everyday spending, emergency savings, and future goals, while still reducing loan interest across the total balance.

That setup can be especially helpful for households trying to stay organised without losing the benefit of their cash reserves. It adds structure, which is handy when life gets expensive, and everything seems to want a direct debit.

There is another side to the equation, though. Some offset loans come with higher interest rates or extra fees. If your savings balance is modest, those added costs may eat into the benefit or wipe it out altogether.

That is where the comparison matters. An offset loan might sound like a good deal, but if you do not keep much money in savings, a cheaper loan without offset features may save you more overall.

It is also worth asking whether the money you plan to keep in the account could serve a better purpose elsewhere. Depending on your goals, there may be cases where investing, reducing other debts, or building a different financial buffer makes more sense.

Refinancing Can Be Part of the Strategy Too

One important point is that you usually cannot bolt offset features onto just any existing mortgage. In many cases, you may need to switch to a different loan, which can mean refinancing.

That is not necessarily bad news.

If you have had the same loan for a while, refinancing may offer two opportunities at once. You might be able to move to a lower interest rate and gain features that better match your needs, including offset functionality.

That can be a useful double win. You are not just changing the packaging. You may be reducing the cost of the loan while improving how your money works against it.

For many borrowers, the bigger issue is not whether offsets are good or bad in general. It is whether the current loan still makes sense at all. A review can show that your current rate is no longer competitive, the features are not worth the cost, or the loan no longer suits your budget.

The main thing to remember is this. You do not have to accept a higher rate without question. There may be better ways to reduce the impact and take control of your loan.

Talk to Osinski Finance About Your Next Property Move

For borrowers with steady savings habits, an offset account can be a practical way to cut interest and potentially pay off a home loan sooner. The savings can be meaningful, especially over the long term.

But it only works well if it suits your income, loan size, savings, and overall financial goals. That is why it helps to look at the numbers properly rather than guess.

If you want expert guidance, speak with Osinski Finance . They can help whether you are sorting out a home loan , planning on investing in property , or getting ready to buy as a first-home buyer . Our team helps borrowers compare loans, weigh up loan features, and choose finance options that suit their budget and plans.

Message us today .

How First Home Buyers Can Get Into the Market Sooner With the 5% Deposit Scheme

Wed, 11 Mar 2026 21:39:03 GMT

For many first home buyers, saving a deposit can feel like trying to catch a train that keeps pulling away from the platform. Just when the goal looks close, property prices rise again, making it even harder to buy a home with a 5% deposit.

That has made the path to homeownership more difficult, especially over the past decade. While plenty of buyers aim for a 20% deposit, that target can take years to reach, and during that time, the market may not sit still.

That is why options that shorten the wait deserve a proper look. A new report by Domain points to one pathway that could help some buyers purchase much sooner, in some cases by more than five years.

Rising home prices are stretching out deposit timeframes

Across Australia’s capital cities, home values rose by 9.9% over the past yea r , according to Cotality. That is already a hefty jump, but it does not tell the whole story for buyers at the entry level.

Domain found that in some markets, entry-priced homes have increased by more than 20% over the past 12 months alone, calling it an extreme rate of price growth. For first home buyers trying to save while prices climb, that can turn a tough task into a drawn-out one.

Its figures show that the time needed to save a 20% deposi t now ranges from 2 years and 7 months for an entry-priced unit in Darwin to 7 years and 7 months for an entry-priced house in Sydney. That is a long time to stay on the sidelines while prices keep shifting.

Over the past five years, Domain says the price of entry-level homes has risen 68% . In other words, many buyers are not just saving for a deposit. They are chasing a moving target.

What could the first home buyer 5% deposit scheme change?

For eligible borrowers, the first home buyer 5% deposit scheme may offer a way to bring those plans forward. The federal government’s 5% deposit scheme allows eligible buyers to purchase with a deposit of 5% , or even 2% for single parents , without paying the lender's mortgage insurance.

There are property price caps that apply, so not every property will qualify. Even so, there are no caps on personal income, and there is no limit on how many people can apply each year.

That is what makes the first home buyer deposit scheme worth exploring. Domain’s analysis found it could help first home buyers looking to purchase a house in Sydney get into the market 5 years and 7 months sooner .

The gains were also significant elsewhere. In Brisbane and Adelaide, the scheme can cut more than four years off the time needed to save a deposit, while in every other capital city it can bring buying plans forward by more than three years.

Can you buy a home with a 5% deposit and still manage the loan comfortably?

Yes, some eligible buyers may qualify under the first home buyer 5% deposit scheme, but the deposit is only one part of the picture. Lenders still need to see that you can comfortably afford the repayments over time.

That matters because a smaller deposit usually means borrowing more. Higher loan amounts can mean higher monthly repayments, so it is important to make sure the loan still fits your budget.

This is where early advice can make a big difference. Looking at likely repayments, borrowing power , and the type of loan that suits your circumstances can help you move ahead with more confidence and fewer surprises.

Talk to Osinski Finance About Your Options

The 5% deposit scheme has already helped more than 240,000 Australians into home ownership , and for the right borrower, it could be the shortcut that makes buying possible years earlier than expected.

At Osinski Finance , we help with home loans , guide first home buyers , and assist homeowners with refinancing . If the 5% deposit pathway could help you buy sooner, we can explain how it works, check whether you may be eligible, and compare loan options that suit your budget and goals. Contact us today to talk through your next move with confidence.

How Much to Earn to Buy a House in 2026?

Wed, 04 Mar 2026 22:16:36 GMT

Saving a deposit matters. But your income is usually the real lever that decides whether a lender will say yes, and how much they will lend.

That is because your income drives your borrowing power . It also shapes how a lender views your ability to repay the loan under tougher conditions.

When you apply for a home loan, lenders look closely at your personal income. They need confidence that you can handle repayments without stress. They also have legal obligations to avoid approving loans that push people into unmanageable debt .

The tricky part is that many buyers want a simple figure. They want a clear target. Something like, “Tell me the exact salary I need.”

In practice, there is no single number. How much income to buy a home depends on where you buy, what you buy, and whether you buy alone or with someone else.

The average income to buy a home is over $100,000. Is it enough?

Across Australia, average weekly earnings for full-time employees sit around $2,130. That works out to roughly $110,791 per year. These figures are based on May 2025 data, so the average could be a little higher by early 2026.

Even so, an average full-time income is not always enough. Not if you are buying in a high-priced market. Not if you are buying solo. The gap between wages and median house prices still bites in many areas.

Income needed to buy home: what the numbers look like by city

Domain estimated what buyers may need to earn in each capital city. The numbers assume a 20% deposit. The analysis is focused on houses, not apartments. It also shows how much tougher it can be for a solo buyer.

Here is the snapshot of estimated annual incomes:

Sydney ( Australia’s most expensive market ): About $232,000 for a single buyer. For couples, about $121,000 each.
Melbourne: About $145,000 for a single buyer. For couples, about $85,000 each.
Brisbane: About $166,000 for a single buyer. For couples, about $94,000 each.
Adelaide: About $143,000 for a single buyer. For couples, about $84,000 each.
Perth: About $147,000 for a single buyer. For couples, about $86,000 each. Perth house prices have jumped about 97% over the past five years .
Hobart: About $118,000 for a single buyer. For couples, about $72,000 each.
Darwin ( the most affordable in the analysis ): About $111,000 for a single buyer. For couples, about $68,000 each.
Canberra: About $151,000 for a single buyer. For couples, about $88,000 each.

If you are curious about how much to earn to buy a house, use these as guideposts. Your outcome will vary by lender. It will also shift with your debts, expenses, and interest rate .

Flexibility and schemes can move the goalposts

Because the analysis is based on houses, the bar is higher. Apartments often cost less than houses. That can reduce the income needed.

The estimates also assume the city’s median house price. If you buy in a cheaper suburb, the numbers can drop. The same applies if you buy a smaller home. Flexibility can help, especially for first-home buyers.

Government schemes may also help you buy sooner. One example is the federal government’s 5% Deposit Scheme . It can allow eligible first home buyers to buy with a smaller deposit. It can also remove the lender's mortgage insurance. Property price caps apply. Other schemes may suit your situation better.

When people ask how much to earn to buy a house, they often focus on salary alone. The bigger lever can be what you buy and where you buy.

Thinking about increasing your income? Check how lenders count it

Canstar found that around one in two Australians expect a pay rise in the months ahead . A higher salary can improve borrowing power.

But extra income is not always treated the same. Many lenders do not count 100% of overtime pay . Some take a conservative view of bonuses and commissions, too. They may average it over time. They may also want a longer history.

That is why you should check your numbers before you commit to a plan. The income to buy a home is not only the total amount. It is also how that income is earned and verified.

Talk to Osinski Finance before you push ahead

If you want a clear view of the income needed to buy home, speak with Osinski Finance . We help Australians with home loans , investing in a property , and becoming first-home buyers . We help you compare lenders, work out your borrowing power, and see which first home buyer schemes you may qualify for.

We can show you how much you may be able to borrow with different lenders. We can also map your next steps if you are close.

Message us today .

Thinking of a Tree Change? Housing Affordability and the Regional Price Gap

Wed, 25 Feb 2026 22:10:39 GMT

Growing numbers of younger Australians are opting for regional living. For many, the lure of a seachange or treechange is simple. You can often get more home for the same money, or spend less for something similar.

With property values continuing to climb, the median home price across our combined capitals has now p ushed past the $1 million mark . That has plenty of Aussies rethinking the city plan and swapping skylines for regional horizons.

Relocations from capitals to regions are outpacing moves in the opposite direction, according to the latest Regional Movers Index . And recent CommBank research shows more than 5.3 million Australians, about 37% of city dwellers, would consider a tree change .

Gen Z (aged 18–29) is leading the trend, with almost half considering a regional move. The Regional Australia Institute (RAI) also found that more affordable housing is a key appeal for more than two-in-five would-be tree changers. That rises to one-in-two Gen Xers (1965–1980).

So, are homes really cheaper once you get beyond the big cities? And what should buyers watch for when buying among the gum trees, where the pace is slower but the decisions still matter, especially when Australia’s house affordability is a key reason people are making the move?

Australia's housing affordability and the $250,000+ gap

There’s no getting around it. Regional Australia can offer a generous serving of housing affordability, especially if your budget is feeling squeezed.

As a guide, the median home price across our combined capitals is currently $1,002,520 . Across regional markets, the median value is $743,672. That is a difference of $258,848.

That gap can help in a few practical ways. It can reduce property-related costs like stamp duty. It can also help first home buyers with a smaller deposit bring forward their buying plans, or buy a house rather than an apartment.

A lower purchase price may also mean you need to borrow less. That can translate into lower home loan repayments, which is often the real win when you are comparing locations. For many buyers, that repayment difference can make the budget feel more manageable each month.

Australia house affordability and what happens to price growth

Let’s clear up a couple of myths.

Yes, you can get great coffee outside the cities. And no, regional areas do not always lag behind state capitals for p roperty price growth .

The latest house price data from Cotality shows regional home values rose 10.3% over the last year. That outpaced the 9.2% gains across state capitals. It is not a one-off result, either.

Regional home values climbed 57.4% over the past five years, compared to 42.8% across the combined capitals. The Australian Housing and Urban Research Institute says this reflects a knock-on effect from the l ong-term trend of people migrating out of cities and into regional areas .

If you are weighing lifestyle plus Australia housing affordability, these numbers matter. They show that “cheaper” does not automatically mean “flat” when it comes to growth. It also means you should still do your research on your suburb, because not every regional market moves at the same speed.

Could a tree change affect your home loan eligibility?

If you are thinking about pulling stumps from the city and moving to the regions, start with your job prospects. Many regional locations have healthy job markets , but it is worth checking what is realistic for your occupation and qualifications.

You may not need to change jobs at all. An RAI study shows close to half (47%) of city dwellers planning a regional move would stay in their current job on a remote or hybrid basis .

Either way, it pays to talk through your work arrangements before you apply. Home loan lenders like to see stable employment when you submit an application. Beyond that, the home loan process is much the same, whether you plan to buy in a capital city or a country town.

For many buyers, housing affordability is the headline. The finer detail is your borrowing position, your deposit, and how the repayments land once the loan is in place. Housing affordability is not just about the purchase price. It is also about how comfortably you can hold the property over time.

Ready to Explore a Regional Move? Talk to Osinski Finance

If you are considering farewelling the big smoke for country living, Osinski Financ e can help you map out the numbers before you commit. We work with Australians across home loans , whether you are a first home buyer , upgrading your place, or investing in a property .

Get in touch today, and we will run through your situation.

Which Generation Leads Australia’s Housing Wealth Today?

Wed, 18 Feb 2026 21:52:04 GMT

Forget the lazy headline that Baby Boomers own everything. That story used to fit, but the numbers have moved on.

If you care about housing wealth generations in Australia, it helps to know who is holding the most property-based wealth right now, and why the baton is changing hands.

The myth and the shift in housing wealth generations in Australia

Baby Boomers (born 1946 to 1964) are retiring in bigger numbers. With that comes a steady reshuffle of property ownership.

A growing slice of Boomer households are selling, downsizing, or simplifying. That shift has opened the door for the next cohort to take the lead.

What KPMG found about Australia housing & wealth generations

A KPMG report shows Gen X (born 1965 to 1980) now holds more property-based wealth than any other generation .

Millennials (born 1981 to 1996) are also building momentum. They are not “missing” from the market, they are arriving later and climbing fast when they do.

This snapshot of Australian housing wealth is a reminder that housing outcomes are changing by age group, not freezing in place.

The “great wealth transfer”

Baby Boomer households are still the wealthiest overall. Their net worth (assets minus debt) averages $2.375 million per household.

KPMG also points out a trend that matches what plenty of families are seeing first-hand. As Boomers step back from full-time work, many are downsizing and shifting more money into cash and superannuation.

The result is Boomer Australia property wealth now averages $1.36 million per household. That is the key change in the Australian housing wealth story, even though it is still a strong result.

Gen X takes first place on property wealth, averaging $1.455 million per household. Millennials sit behind them on $890,000 in average household property wealth.

Property wealth is growing fastest for young Aussies

Younger Australians still hold the lowest overall property wealth. That part is not surprising.

What is surprising is the pace of change. KPMG says 25 to 34-year olds, essentially Gen Z (born 1995 to 2012), have recorded the biggest gains in household wealth over the past five years.

Since 2019–20, that Zoomer group has seen household wealth rise by around 63%. According to KPMG, rising home ownership among younger Australians is a big reason, which suggests a decent portion are finding ways onto the ladder.

The upside is that Australia housing wealth generation is not locked to one “lucky” cohort. It can shift quickly when ownership rates move.

Property ownership pays off, even when it feels hard

These stats reinforce a simple point. A home is not only a roof over your head, it is also a long-term asset.

Yes, buying usually means a home loan . But paying down that loan can work like forced saving, because you are steadily converting repayments into equity.

Without the benefits of ownership, long-term renters can face real pressure later on . An RBA paper by the Grattan Institute flags serious financial challenges for renters in retirement.

How You Can Get Started

If you want to build wealth through property, it is worth checking what support is actually on the table. There are government schemes that can help you buy sooner, depending on your situation.

Options may include the First Home Owner Grant , potential stamp duty concessions (which vary by state), and the Australian Government 5% Deposit Scheme , which can help eligible buyers purchase with a smaller deposit and avoid lenders mortgage insurance.

Once you see the pattern of housing wealth generations in Australia, the next step is making your own plan, not just watching the stats.

Ready to make your next move with Osinski Finance?

Osinski Finance helps Australians figure out what they can comfortably borrow, which schemes they may be eligible for, and whether they are set up to buy now or need a tighter run-up plan.

Whether you are buying your first hom e , reviewing your current home loan , or weighing up investing in a property , we will walk you through the numbers and lender options.

Message us and let’s map out your next step.

RBA Lifts Rates Again: What This Cash Rate Hike Means for Your mortgage

Wed, 11 Feb 2026 04:23:47 GMT

Mortgage holders around Australia have copped another shift, with the Reserve Bank of Australia (RBA) lifting the cash rate by 25 basis points to 3.85%. Below is what drove the decision, and the practical ways it can flow through to your home loan.

Those three rate cuts in 2025 were nice while they lasted. The mood has changed fast.

Why the RBA Cash Rate Hike Landed in Early 2026

Fresh ABS inflation data has clearly put the RBA back on the defensive. Inflation was 3.8% in the year to December 2025, which is still above the RBA’s 2 to 3% target range.

In its statement , the RBA’s Monetary Policy Board said inflation had fallen a long way since the 2022 peak, but it lifted again in the second half of 2025. It also pointed to private demand running hotter than expected, stronger capacity pressures, and a labour market that remains a little tight.

That backdrop helps explain the cash rate hike, and why the decision was unanimous. The Board’s view was that inflation is likely to sit above target for some time, so it was appropriate to lift the cash rate target.

How the RBA Rate Hike Could Change Your Monthly Repayments

Unless you are on a fixed rate , your lender will usually move soon after the RBA does. In practice, the rba cash rate hike often means a higher interest rate on variable home loans , especially if the bank passes the full 25 basis points on.

As a guide, for an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s move could lift repayments by about $77 per month. That is roughly $924 per year added to the household budget.

With a $750,000 loan, the minimum monthly repayment could rise by about $115 per month, or around $1,380 per year. On a $1 million loan, it could be about $154 per month, or roughly $1,848 per year.

All of this assumes your lender passes on the RBA cash rate hike in full, and does it automatically. Some lenders do. Some tweak pricing in other ways.

There’s another wrinkle from 2025 that is easy to miss. When rates came down from the recent cycle peak of 4.35% through 2025, many banks kept borrowers on the same repayment amount. That meant more of each payment went to principal, not interest.

If your bank did that, your repayment amount may not jump after this move. Instead, a bigger slice of your existing repayment (0.25%) will be interest, and less will chip away at the balance.

If you are unsure what your lender is doing, give it a few days for the announcements to roll in. Then check your next repayment notice, or get someone to run the numbers properly.

Feeling the Strain of Your Mortgage? Talk to Osinski Finance

An RBA rate hike rise can sting, especially when your budget is already doing the hard yards. The good news is you may still have a few practical levers to pull, even if repayments are creeping up.

If it has been a while since your last home loan review, now is a smart time to check in. Depending on your setup, you might be able to renegotiate with your current lender, refinance , or consider debt consolidation.

At Osinski Finance , we help Australians with home loans , investing in a property , and planning the next move as a first home buyer . If you want clear options after the banks confirm their changes, get in touch and we will run the numbers with you and map out a plan that fits your goals.

Australian House Prices Forecast 2026: How High Could Prices Go in 2026?

Wed, 04 Feb 2026 22:34:31 GMT

After a solid run-up through 2025, plenty of commentators reckon property prices could keep pushing higher in 2026. This post looks at what the big forecasts are saying, including the Australian property price forecast 2026, and what that could mean if you’re planning to buy, upgrade, or invest.

In 2025, home owners had a strong year. Buyers, on the other hand, had to keep pace as property prices lifted 8.6% nationally .

KPMG’s latest outlook suggests there may still be momentum left. It forecasts house prices could rise a further 7.7% in 2026 , with growth continuing into 2027.

Of course, forecasts are not guarantees. Plenty can shift over 12 months, including rates, supply, and buyer confidence.

So, what might your city do next?

City-By-City: Australian Property Price Forecast 2026

KPMG breaks down expected price growth across the major capitals for houses and apartments (units). Use this australian house prices forecast 2026 as a guide, then compare it against your own budget and timeline.

Sydney: edging closer to a $2 million median house price

KPMG expects Sydney house prices to rise 5.8% in 2026, then 5.7% in 2027. Units are forecast at 5.3% in 2026 and 4.0% in 2027.

Sydney’s median house price has been reported at about $1.62 million . A 5.8% lift would put it around $1.71m by end of 2026, and compounding 2027 would take it closer to the high $1.8m range.

Brisbane: the big gains may not be over yet

Over the past year, Brisbane home values climbed 14.6% , making it one of the strongest increases nationwide and second only to Perth.

KPMG forecasts Brisbane house prices to rise 10.9% in 2026 and 8.9% in 2027. Unit prices are tipped to increase 7.8% in 2026, then 4.9% in 2027.

Melbourne: growth expected to outpace 2025

Melbourne’s median residential property value of $854,000 has been comparatively more affordable than Sydney and Brisbane recently, but forecasts still point upward.

KPMG predicts Melbourne house prices could rise 6.8% in 2026 and 7.3% in 2027. Units are forecast at 7.3% in 2026, then 5.5% in 2027.

Canberra: moderate growth expected

Canberra’s growth was more restrained through 2025, and the outlook remains steadier.

KPMG forecasts Canberra house prices at 4.7% in 2026 and 3.3% in 2027. Units are expected to rise 4.9% in 2026 and 3.6% in 2027.

Hobart: softer growth tipped for 2026

Hobart saw prices rise over the past year, but expectations are for slightly cooler growth ahead.

KPMG forecasts Hobart house prices to rise 5.4% in 2026, with units at 5.1%. In 2027, the forecasts ease to 4.1% for houses and 4.0% for units.

Adelaide: the run of growth may continue

Strong gains over the past few years have pushed Adelaide’s median home price up to $908,000 .

House prices are forecast to rise 8.2% in 2026, then 3.3% in 2027. Unit prices are tipped to climb 6.6% in 2026, followed by 3.8% in 2027.

Perth: another year of big gains

Perth’s property market led the way in 2025, recording 17.2% price growth .

KPMG expects Perth house prices to rise 12.8% in 2026, with units up 11.6%. Growth is forecast to slow in 2027 to 5.1% for houses and 3.9% for units.

Darwin: double-digit growth may lie ahead

Darwin remains Australia’s most affordable capital, with a median home price of $578,000 , and prices are expected to keep trending up over the next two years.

In 2026, house values could rise by 10.5%, while apartments may post even stronger growth of 13.4%.

Growth for Australian housing market forecast to ease in 2027, with houses up 6.8% and units up 9.3%.

What’s likely to keep prices moving?

KPMG is not alone in expecting growth.

Cotality (formerly CoreLogic) has also pointed to a softer, slower 2026 compared to 2025, rather than a sharp reversal. In other words, think “modest” growth , not bargain-season headlines.

The recurring theme behind many forecasts is simple: demand is still strong, and supply is still tight.

Australia’s housing supply targets highlight the gap. The national ambition of 1.2 million new homes over five years works out to about 240,000 homes a year, and industry reporting has flagged how hard that pace is to maintain.

On the demand side, lower rates helped keep buyers active through 2025. The RBA cut rates three times in 2025 , and that improved borrowing power for many households.

Policy settings also played a role. The expanded 5% deposit scheme brought more first home buyers into the mix in late 2025.

The upshot was a noticeable lift in lending interest. One measure, based on Equifax enquiry data, put December 2025 home loan enquiries up 18% year-on-year .

If you’ve been watching the australian house prices forecast 2026, the takeaway is that waiting for a big drop may be a long wait. If you’re following the forecast for 2026, focus on what you can control: budget, borrowing capacity , and a realistic target area.

Time to Review Your Buying Plans?

Forecasts can change quickly. Rates can surprise. Supply can loosen in one pocket and stay tight in another.

Still, if you’re delaying a purchase purely in the hope prices fall, you may end up paying more later, or missing the property you actually want. This is where the australian property price forecast 2026 is useful, because it helps you plan with eyes open, not crossed fingers.

Get Home-Loan Ready With Osinski Finance for Your Australian Housing Market Forecast 2026 Plans

Ready to get home-loan ready?

If you want a clear plan, speak with Osinski Finance . We help Australians compare home loan options, run the numbers on investing in a property , and map out a smart path to becoming a first home buyer , using the Australian property price forecast 2026 to guide timing, budgets, and borrowing choices.

Message us today .

Home Renovation Financing Options for a Renovation Renaissance in 2026

Wed, 28 Jan 2026 22:13:33 GMT

If 2026 feels like the year to stay put and spruce up, you are not alone. More homeowners are choosing to renovate instead of relocating, and that means one big question lands early, how will you pay for it?

Australians love tackling home renovations .

Homeowners collectively spend over $1 billion each month improving their place. Along with a more comfortable home and the potential to add value, a well-planned reno can also save money. You avoid big, non-value-adding costs that come with selling and buying elsewhere, like stamp duty.

Before you pick tiles or argue about paint swatches, lock in the funding plan. The right finance options for home renovations can shape your scope, timing, and stress levels.

Renovation Finance Options Are Trending Up

For smaller upgrades, cash savings might cover it. A quick bathroom refresh or new flooring can be a lot easier to fund when you have the money sitting there already.

But if you are giving the house serious love, you may need renovation finance that go beyond your savings. That is happening more often.

The Housing Industry Association says the value of lending for home improvements is now almost three times higher than it was pre-COVID. So yes, plenty of people are borrowing to renovate.

The best home renovation financing options depend on your budget, your timeline, and how flexible you need repayments to be while the work is underway. It also pays to think about whether your plan is cosmetic, structural, or somewhere in between.

Finance Options for Home Renovations That Tap Your Home Loan

Last year, around 30,000 homeowners relied on housing finance to pay for renovations . If you already have a mortgage, your existing loan could be part of the solution.

Rising property values may mean you have enough equity to help fund the work. If that is the case, you could consider a loan top-up. This is when your lender lets you borrow extra by increasing your current home loan.

A top-up can be a simple path, but it should also trigger a second look at your rate and features. Any time you change your old loan, it is worth checking whether refinancing makes sense.

Switching to a new home loan may help you secure a more competitive rate or access better loan features. Refinancing can come with costs, so you want the maths to stack up. We can crunch the numbers and show whether the benefits outweigh the costs, and whether it lines up with your goals.

If you are weighing finance options for renovations, it helps to map the total cost first, then work backwards into repayments.

That is where choosing the right home renovation financing options becomes less guesswork and more game plan.

A Construction Loan Could Suit a Major Reno

Planning a large extension or a bigger structural project? A dedicated renovation or “ construction” loan might be worth a look.

This works differently to a standard home loan. Instead of receiving one lump sum, the funds are released gradually as the build hits key stages, like slab, frame, and final detailing.

One bonus is cash flow. Interest rate is typically charged only on the amount drawn down, not the full approved limit. Then, once the renovation is complete and formally signed off, the loan usually switches to principal and interest repayments.

Construction loans can be a solid fit for bigger projects, but they are not offered by every lender. That is why comparing renovation finance options across lenders matters, especially if you need flexible progress payments or specific features.

Chat With Osinski Finance About Your Renovation Budget

Osinski Finance can help you line up the right numbers before you start knocking down walls. We support clients with home loans , investing in a property , and becoming a first home buyer , so your renovation funding sits neatly within the bigger plan.

If you are keen to roll up your sleeves and give your place a makeover in 2026, get in touch to work through your numbers and shortlist renovation finance options that suit your budget.

Trying to plan a renovation without a budget is pure guesswork. A clear figure helps you prioritise, make confident trade-offs, and keep your project moving.

Top Property Investor Jobs: Nurses, Teachers, or CEOs?

Wed, 21 Jan 2026 21:55:04 GMT

Owning an investment property is not reserved for the ultra-wealthy. Plenty of property investors are people you bump into every day at school drop-off, the local clinic, or the office kitchen.

So, which occupations are producing the most investment property owners, and what does that mean for everyday Australians who want to build a portfolio?

Owning a home has long been the great Australian dream, but the goalposts have shifted. For many households, buying an investment property is now part of the bigger plan.

One in four households plans to invest in real estate over the next year, according to Agile Market Intelligence.

If they go ahead, they will be joining almost 2.3 million Australians who reported earning rental income in 2022–23 , based on the most recent Australian Tax Office figures.

PropTrack research also shows investors span almost all adult ages, income levels , and occupations . In other words, there is no “one type” of investor.

Property Investors: Which Occupations Come Out on Top?

When people talk about top property investor jobs, most assume the list is packed with corner offices and executive titles. Some of it is, but not all.

According to ATO 2021–2022 financial year data compiled by PropTrack , the number-one occupation on the list is general manager, with 65,559 investors.

Teachers, including both primary and secondary, share second place with 64,529 investors. The CEO/managing director lands in third with 60,800.

Nurses come in fourth (55,519), ahead of accountants in fifth (49,203).

Outside the top five, the top 20 still has a few surprises. Electricians rank 12th with 21,397 investors. Truck drivers sit 18th with 15,378. Police make the list too, in 20th place at 15,400.

The takeaway is simple. You do not need a flashy title to start building wealth through property. Even if you are not one of the top property investors, there are still practical ways to get moving.

Property Investor Pathways: Four Ways to Get Started

With that in mind, let’s walk through four options that can suit different budgets, timelines, and comfort levels. These property investors are not about having a perfect setup. They are about making a smart start with what you have.

Harness home equity

Home values nationally have risen 49.1% over the past five years .

That is welcome news for Australian homeowners who have watched their home equity grow.

Home equity is the difference between your property’s market value and the remaining balance on your home loan.

If you have enough equity, you may be able to use it as a deposit for an investment property.

If you want clear numbers, get in touch with us to work out exactly how much home equity you have and whether it could be used as a deposit.

Turn a first home into a rental

Thinking about upgrading to your next home? One of the property investor pathways is to keep your current property and rent it out instead of selling it.

This approach can help you avoid selling costs. You may also be able to leverage any equity you have built up to help fund the new home purchase.

If this option is on your radar, talk to us early about the finance structure. It is also wise to speak with an accountant, because there can be tax considerations when you switch a home from owner-occupied to an investment.

Rentvesting: weigh up the pros and cons

Rentvesting means renting where you want to live while owning an investment property in another suburb that may be more affordable.

The appeal is obvious. You get to live in a location that suits your lifestyle while still having the chance to earn rental income and potentially benefit from long-term value growth in the investment property.

According to PropTrack, rentvesting is increasin g , especially among first-time home buyers.

That said, it is not all upside. When you buy as an investor, you are unlikely to qualify for first-home-owner grants or other first-home-buyer concessions.

That trade-off should be weighed against the rental income and any potential tax savings the property may generate.

Co-investing: a possible boost to buying power

If buying solo is out of reach right now, you may consider teaming up with family or friends as co-investors.

Co-investing can increase buying power by pooling resources and sharing costs. But it also comes with extra planning.

Agree on how you will split expenses, who pays what, and what happens if someone wants to sell early. An exit plan is not pessimistic. It is protection for everyone.

If co-buying suits your goals, we can explain finance options available for shared ownership, which can also suit people in top property investor jobs. Some lenders offer mortgages designed specifically for co-borrowers.

Speak With Osinski Finance Before You Buy Your Next Investment Property

If you are considering investing in property, speak with a tax professional first so you understand the tax obligations and whether the property fits your broader goals.

From the finance side, what matters is choosing a structure that suits your situation and the buying strategy you have selected. The right setup can make the whole experience smoother, from approval through to holding the property.

If you want help turning these property investor pathways into a clear plan, talk with Osinski Finance . We help Australians with home loans , refinancing , and financing for investing in a property , so you can move forward with a strategy that matches real life.

Aussie Homeowners Just Gained $82,000 on Average in Home Equity

Wed, 14 Jan 2026 22:19:58 GMT

New year, new numbers, and they are looking pretty healthy for property owners.

After a strong 12 months in the property market , plenty of households are walking into 2026 with more wealth behind them. That lift in equity in your home can open up real options, not just feel-good headlines.

Your place is not only where you live. For many Australians, it is also a big part of their long-term wealth plan.

And 2025 proved it.

Even if the festive season has your bank account feeling a bit tired, a jump in your property value could mean you are roughly $82,200 better off on average heading into 2026, according to PropTrack .

So what is driving it, and what can you do with the value you have built?

Equity in home: 2025 was a bumper year for homeowners

Australia’s housing market wrapped up 2025 at a record high. PropTrack puts the momentum down to rate cuts, stronger investor demand, and expanded incentives for home buyers.

Nationally, the median home value climbed 8.8% across the year. That added $82,200 to the median value over 12 months .

Capital cities saw even bigger jumps in many cases:

Sydney: median value up $101,200 in 2025
Brisbane: median value up $135,900
Adelaide: median home price up $101,600
Perth: median home price up $148,100

If you have watched your property value rise, you are probably asking the next question. “How do I put that to work without making a mess of my finances?”

Here are three practical ideas worth considering.

Equity in your home: 3 smart moves to consider for 2026

When your property value rises, the gap between what your home is worth and what you owe can grow too. That extra buffer, home equity, can be useful if you have a clear plan and the numbers stack up.

1) Give your place a makeover

If your home is feeling tight, dated, or simply not working for your day-to-day life, your equity can help fund renovations.

A well-planned renovation can also increase your property’s value. That means you can improve how the home feels now while also supporting the long-term value of the asset.

Think functional upgrades first. Layout, storage, and wear-and-tear fixes usually deliver more day-to-day benefit than flashy add-ons.

2) Invest in a rental property

Property can be a long-term investment , plus it may provide rental income. It can also come with tax outcomes , so speak with your tax professional for advice that suits your situation.

And no, you do not need to be “rich” to become a landlord.

Teachers, nurses, truckies, and cops are some of Australia’s most prolific property investors . Many get there by using what they already have in a smart way.

One option is using equity in a home instead of cash as a deposit on an investment property . This can help you keep your savings available while using one asset (your current home) to help fund another (the rental property ) that may also grow in value.

3) Refinance and make a stronger loan work for you

A higher home value is not just something to mention at a barbecue.

It can also help you reduce interest costs. When your home’s value rises, your loan-to-value ratio (LVR) can drop. LVR is your loan amount as a percentage of your home’s market value.

A lower LVR can make you look less risky to lenders. That can improve your chances of securing a sharper interest rate.

Refinancing is not only about chasing a better rate, either.

A new loan could give you features that suit your current life better. It could also release funds for other goals, such as school fees, a family holiday, or consolidating personal debt to simplify your repayments. In many cases, it is about using the equity in your home with a clear purpose, not just because it is available.

Talk Osinski Finance About Putting Your Equity to Work

If your equity in home is growing but you are not using it strategically, it is worth asking why.

At Osinski Finance , we help Australians with the big three: securing a home loan , investing in a property , and refinancing your home loan when the numbers stack up. If you want to make the most of your home equity through a smarter loan setup, a renovation plan, or your next purchase, get in touch and we will map out your next steps.

Mortgage Goals for 2026: Three Money Moves to Start the Year Strong

Wed, 07 Jan 2026 22:06:09 GMT

Happy New Year. If you have been thinking about fresh mortgage goals for 2026, this is a good time to line up a few practical wins.

A New Year’s resolution can be the nudge that gets things moving. You might be aiming to buy your first home. You might want to reduce repayments. Or you might be ready to use the equity you have built.

And honestly, 2025 did not do too badly. We saw three RBA rate cuts, a wave of first-home buyer schemes announced, and national property prices rose by 8.7% . That sets the scene nicely for the three goals below.

Mortgage goal: break into the property market

If you have been trying to buy your first home for a while, the timing could be kinder than you think.

There are government schemes that may help you purchase with less than the usual 20% deposit. That can cut the time it takes to get a foot in the door.

For starters, in October last year, the federal government expanded the Home Guarantee Scheme (HGS) . That change means all first home buyers are now eligible to buy with as little as a 5% deposit , and not pay lenders' mortgage insurance.

Then in December, the federal government launched its long-awaited Help to Buy shared equity scheme.

Under that scheme, eligible buyers only need a 2% deposit . From there, the government contributes up to 40% of the purchase price for a new home, and up to 30% for an existing home. In return, the government takes an equity stake in the property.

On top of that, you may also qualify for state and territory first-home owner grants and stamp duty concessions. When you stack these options together, you might already be closer than you think.

If this goal is on your list, get in touch, and we will help you crunch the numbers.

Mortgage goal for 2026: use your home equity as a springboard

This mortgage goal is worth a look if your property value has climbed.

National property prices have increased 8.7% over the past 12 months. Over the same period, we experienced three RBA cash rate cuts, resulting in lower interest rates compared to a year ago.

That combo can open doors. You may be able to refinance to a lower interest rate, access some of the equity you have built, and still keep your loan structure sensible.

Depending on your situation, that equity could help you invest in an investment property, buy shares, or fund a renovation.

If your goal is to grow your wealth, contact us for a clearer view of your home’s potential equity and how you could use it.

Mortgage goal for 2026: refinance for a sharper rate and better features

The mortgage market is still competitive after three rate cuts in 2025. Some lenders have recently trimmed their variable home loan rates, so it is worth checking where you stand.

If you have had the same loan for a while, there is a real chance you could qualify for a lower rate. Many people do not realise how quickly their loan can drift out of date.

Refinancing to a more competitively priced loan could put money back in your pocket during 2026 and beyond. It can also help you swap into features that suit your needs better, like an offset account or more flexible repayments.

Contact us today for a home loan review. Another RBA rate cut this year is looking less likely, but you can still create a rate cut of your own by refinancing.

Make your 2026 Plan Feel a Lot More Doable With Osinski Finance

If you want help turning these mortgage goals into a real plan, speak with Osinski Finance . We support first home buyers , help you secure the right home loan , and guide you if you are investing in a property . We can also review your current loan, compare lenders, and help you refinance or use equity in a way that suits your next move.

Reach out today , and we will walk you through your options, step by step.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Christmas Mortgage Message

Wed, 31 Dec 2025 21:57:36 GMT

Season’s greetings, and here’s to a well-earned summer break. This Christmas message from your trusted mortgage broker is a small way to say thanks as the year wraps up.

As the Christmas and New Year festive season rolls around, we want to pause and say thank you. Your trust and support throughout 2025 have meant a lot. We do not take it for granted.

We also had a bit more to smile about this year. We saw three RBA rate cuts , and national property prices rose by 8.7% . For many households, that mix brought some welcome breathing room.

Christmas Message from Your Mortgage Broker

Here is a Christmas mortgage message for anyone who found 2025 a little tougher than expected.

Still, 2025 was not all smooth sailing. Plenty of families across Australia have been feeling the cost-of-living squeeze. Inflation has also started to creep back up again. And when that happens, the talk quickly shifts to rate hikes, not rate cuts .

If money is feeling tight, please reach out. We can review your home loan and see if there are ways to ease the pressure. Sometimes it is a sharper rate. Sometimes it is a smarter structure. Either way, it helps to check.

Christmas Message from Your Trusted Mortgage Broker

Consider this a Christmas message from your mortgage broker as you head into the new year with fresh goals.

And if you are thinking about buying, we are here for that too. First home, second home, or an investment property, it all starts with a plan. If a family member brings up property goals over the Christmas catch-up, feel free to send them our way.

For now, though, take the break you have earned. Enjoy the slower mornings, the good food, and the people you want close.

The year ahead will bring its own surprises. What stays the same is our commitment to support you at every stage of your property journey.

Wishing you a joyful Christmas, a relaxing holiday, and a bright year ahead. We look forward to supporting you again in 2026.

Ready for a 2026 Home Loan Check-in With Osinski Finance?

For a clearer plan for the year ahead, speak with Osinski Finance . We help Australian homeowners with home loans , first home buyer finance , and property investing , so you can compare options, understand your choices, and take the next step with confidence, without the jargon or runaround.

Contact our team today .

Suburb Property Report: See How Your Suburb Performed in 2025

Thu, 25 Dec 2025 22:26:33 GMT

You have probably seen the headlines about national property prices climbing again this year. But the real question is closer to home. How did your suburb perform, and how did your property type hold up?

According to PropTrack, home prices have risen 8.7% nationally over the past year.If that feels punchy, the longer view is even bigger. Over the past five years, property values have jumped more than 50% nationally .

If you want a clear property suburb report for your area, start by checking what homes like yours are selling for and how values have shifted recently. So what is your place worth right now, in your patch of the world? Here is the quick way to find out.

Property Suburb Report: Find Your Local Numbers Fast

To discover what the average home is worth in your neighbourhood, and how much values have increased in the past year, head to Domain’s online property price calculator .

Pop in your suburb, then check the figures. You can also toggle between house and unit, which is where things get interesting.

This suburb property report gives you a quick starting point for refinancing, renovating, or planning your next purchase.

With any luck, you will be pleasantly surprised. You could be one of the homeowners around Australia whose place has outpaced the national uptick, which is 8.7% in the past year.

Does Your Neighbourhood Top the Table for Price Growth?

Domain data highlights stand-out suburbs in 2025, which is the kind of trend you will spot in property suburb reports.

In Adelaide, houses in Blair Athol notched up 17% gains in 2025 to reach a median value of $802,500.

Over in Sydney’s south-west, houses in Cabramatta jumped 18% to hit a median of $1.152 million.

In Brisbane, Acacia Ridge (median value $830,000) recorded price growth of 13% in 2025.

Not far behind was Baldivis in Perth (median value $720,000), where house price growth topped 11% this year.

And in Melbourne, houses in beachside Frankston North racked up 10% price gains to reach a median value of $650,000.

Property Suburb Reports: The Stand-Out Suburbs and What Drove the Jump

Australia’s housing market pulled off a surprise turnaround in 2025 . It pushed higher despite affordability pain and cost-of-living pressure, and it delivered above decade-average price growth.

A few big drivers helped. There were three rate cuts in 2025 , an expanded 5% Deposit Scheme , and low volumes of homes listed for sale . When supply remains tight and borrowing costs ease, values tend to rise.

That context matters when you read your suburb property report, because it helps explain why prices moved the way they did in your area.

Osinski Finance: Use Your 2025 Property Report to Plan Your Next Step

A rise in your home’s value is not just something to mention at Christmas lunch.

It could make you eligible for a lower-rate home loan . It could also free up funds for personal goals in 2026 or help you upgrade to your next home.

If your property suburb report shows strong growth, it may be the right time to review your options.

At Osinski Finance , we help Australians secure the right home loan , get set up as a first home buyer , and finance an investment property with confidence.

No Christmas Interest Rate Cuts, So Could Rates Rise in 2026?

Wed, 17 Dec 2025 22:08:24 GMT

Not long ago, plenty of economists were pencilling in another run of rate cuts in 2026. Now the story has changed. There is even growing chatter about the risk of rate hikes next year.

That is the fun part about interest rates. They can flip the script quickly.

We started 2025 with the Reserve Bank of Australia (RBA) cash rate at 4.35%. February delivered the first cut in five years . After two more rate cuts, the cash rate is now 3.60% .

Because the RBA kept rates on hold in December , the cash rate stays at 3.60% for now. The next decision is due in February, when the Reserve makes its next rate call .

Only a couple of months ago, in October, several big banks were still forecasting lower rates in 2026 . Today, the odds of an early 2026 cut, or any cut over the next 12 months, are looking a lot slimmer.

Why Rate Cuts Are Getting Harder to Justify?

Three factors are keeping the cash rate stuck in a holding pattern.

First, the Australian economy is growing. Growth has only been 2.1% for the year, but the direction is still upward.

Second, the jobs market is holding up. Unemployment fell to 4.3% in October , down from 4.5% in September.

Third, and most importantly, living costs are still rising. Inflation is currently 3.8% , which is well above the RBA’s 2% to 3% target range.

After the December meeting, RBA Governor Michele Bullock told journalists that “ additional (rate) cuts are not needed ”. She also flagged that future rate hikes are not off the table.

Put simply, official interest rate cuts look unlikely in the near term.

What an RBA Interest Rate Cut Would Need to Look Like

For an RBA interest rate cut to come back onto the agenda, inflation needs to cool further and stay inside the 2% to 3% band. The RBA also needs to feel confident that wage pressures and broader cost increases are not about to re-accelerate.

Until then, the Reserve has a reason to be cautious. Strong employment and gradual growth can keep demand firm, and that makes inflation harder to squeeze down quickly.

Interest rate cuts could still happen, but they are no longer the most likely outcome for 2026.

What to do Now While Interest Rates Stay Unpredictable

Even if the RBA interest rate cuts hold steady, you are not stuck sitting on the same deal. The home loan market is competitive, and some lenders have recently trimmed their variable rates .

That means there may be room for you to negotiate a better outcome, especially if you have had the same loan for a while. Refinancing to a sharper rate could put money back in your pocket through 2026 and beyond. It can also help you switch into features that suit how you actually live, like an offset account , redraw flexibility, or a different fixed and variable split.

Get a Home Loan Review with Osinski Finance

If you want to see whether you can line up your own “rate cut”, speak with Osinski Finance . Even if an RBA interest rate cut does not arrive soon, we help Australians with home loans , refinancing , and investing in a property with clear options and lending structures that suit your goals, not just the bank’s.

2% Deposit Help to Buy Scheme Launches

Wed, 10 Dec 2025 22:52:06 GMT

Imagine buying your own place with a deposit of just $12,000. That is the promise of the federal government’s Help to Buy shared equity scheme. It sounds exciting, but there are some pros and cons to understand first.

The Labour government first floated a new Help to Buy scheme back in 2022. It attracted plenty of interest at the time. Three years is a long wait, though, so many hopeful buyers may have lost track of it before the 5 December launch date.

This guide walks through how the government help to buy scheme works, who can use it, and the main benefits and drawbacks to think about before you apply.

How the Help to Buy scheme works

The Help to Buy scheme is different from other support programmes already on offer. It is not a cash payment like the First Home Owner Grant . It also works differently from the 5% Deposit Scheme , where the government guarantees part of your home loan so you can buy with a small deposit and avoid the lender's mortgage insurance.

Instead, Help to Buy is a shared equity scheme . You buy the property with a very small deposit, and the government becomes a co-owner for a time. This means you borrow less and pay lower repayments.

Under this scheme, eligible buyers only need a 2% deposit. The government then contributes up to 40% of the price for a new home and up to 30% for an existing home. That contribution buys the government an equity share in the property.

Here is how it can look in practice.

Olivia is a first-home buyer. She uses this scheme to purchase an established home for $600,000. She provides a 2% deposit of $12,000 and takes out a home loan for $408,000. The government covers the remaining $180,000, which is 30% of the purchase price.

This structure delivers two main benefits for Olivia.

First, saving a 2% deposit is quicker than saving 5% or 20%. Her home ownership plans can move forward sooner. Second, because the government pays 30% of the price, Olivia borrows less, and her repayments are lower. This makes owning a home more affordable.

Who can use the government Help to Buy scheme?

The Help to Buy scheme is aimed mainly at first-time home buyers. It is also open to people who are returning to home ownership after a break. In both cases, you still need to make a 2% deposit from your own savings or other approved sources.

Income caps apply. Single applicants can earn up to $100,000 per year. Single parents and couples can have a combined income of up to $160,000 per year. Your income must fall within these limits to qualify for the scheme.

There are also limits on the value of properties you can purchase through Help to Buy . These caps differ across states and territories. They also change between metropolitan areas and regional locations. The aim is to keep the scheme focused on modest properties rather than luxury homes.

If you are unsure whether you meet the criteria, it is worth speaking with a broker or lender who understands these rules in your state.

What to weigh up before using the Help to Buy scheme

The Help to Buy scheme offers some attractive features. You can buy with only a 2% deposit. You avoid the lender's mortgage insurance. You start your property journey with a smaller home loan than usual. You also do not pay rent or interest on the government’s equity share . Normal purchase costs still apply, though, such as stamp duty, legal fees and inspection costs.

Be clear about the trade-offs. The government expects its money back at some stage. If you use this scheme, you must repay the government’s 30% or 40% equity share in the future. You can repay it through extra repayments, from the sale proceeds, or by refinancing when you can afford to.

The payback amount does not stay fixed. The government’s share is tied to the property value at the time you repay it. If the home has risen in value, the government receives the same percentage of the higher price. In simple terms, the government takes a slice of any gain in value that matches its equity stake .

Renovations need extra attention as well. For major improvements, Housing Australia, which oversees this scheme, will arrange a valuation before and after the work. This process helps to separate the value created by your renovation from the value created by the market. It protects your right to keep the uplift from your renovation spending, although it adds more steps and paperwork.

There is another practical issue. At the moment, only a small number of lenders are involved in this. This limits your choice of home loan products. More lenders are expected to join from early 2026, but for now, the options are still quite narrow.

Talk to Osinski Finance Today!

The Help to Buy scheme is capped at 10,000 places each year. It is a new way to help people buy, and you share part of your home’s value with the federal government.

If you are a first-time home buyer or returning to home ownership, it makes sense to compare this scheme with other paths into the market. Osinski Finance is an independent finance specialist that works with a wide panel of lenders.

We can compare this scheme with the First Home Owner Grant, low deposit scheme and other government help-to-buy scheme options for you. We also help with home loans , property investment and home loan refinancing .

Why Is Now a Good Time to Buy Rental Property?

Wed, 03 Dec 2025 22:01:51 GMT

2025 has been a huge year for property investors. Rapid growth in investment lending has sparked talk of a possible crackdown on loans to investors.

Here, we explain what is happening and why you might bring your buying plans forward.

The past year has been extreme for investors.

Record-tight vacancy rates have pushed rents higher.

Interest rates on investment home loan s are at their lowest level since late 2023.

National property prices are also rising at the fastest pace in more than two years .

It is no surprise that investors are buying in large numbers .

At the same time, lending to investors is growing at the quickest rate in a decade , and the Australian Prudential Regulation Authority (APRA) is paying close attention.

Some commentators now expect APRA to step in and tighten rules for investment lending to cool price growth.

So if you are wondering, is it good to buy a rental property now? It helps to understand the backdrop first.

Is Now a Good Time to Buy Rental Property? Understanding the 2025 Lending Picture

There is no question that investors have been driving the property market this year.

In the September quarter alone, the number of new investment loans jumped by 13.6%.

That equates to 57,624 new investment home loans in just three months, which is the highest figure since early 2022.

Looking over the past year, lending for investment properties has grown faster than lending to owner-occupiers, based on ABS data.

This swing towards investors is exactly what APRA is watching.

Is It Good to Buy Rental Property Now if APRA Is Worried?

What has APRA concerned is the possibility of a rise in riskier loans. In particular, the regulator has flagged an increase in what it calls high debt-to-income borrowing by investors .

That is where the warning lights switch on for would-be landlords who are asking themselves, ' is now a good time to buy rental property ?'

In a recent report , APRA noted that it is making sure banks are ready to use extra macroprudential tools if needed to strengthen lending standards.

In plain language, APRA is reminding lenders that, as the industry regulator, it has the power to change the rules for investment loans. It has done this before and could do it again.

Is Now a Good Time to Buy a Rental Property? Looking Back to 2014–2018

You might feel that 2014 was a long time ago.

Seasoned investors, however, may remember it as the year APRA stepped in to cool an overheating market. The regulator capped annual growth in lending to property investors at 10% .

APRA then tightened things further by placing a 30% limit on interest-only loans, which many investors prefer because they can reduce upfront repayments.

These measures stayed in place until APRA eventually relaxed its investment lending rules in 2018.

That period showed how quickly policy changes can alter the landscape for buyers.

Could History Repeat for Property Investors?

Conditions in 2014 looked quite similar to what we see now.

Property values were climbing quickly. Interest rates were trending lower. Household income growth was sluggish.

Today, we are again seeing strong price gains, low investment loan rates compared to recent years, and pressure on household budgets.

This mix has led many in the market to speculate that APRA might bring in fresh rules aimed at today’s group of property investors.

If that happens, borrowing capacity and product options for new investors could change in a short space of time.

What It All Means if You Plan to Buy an Investment Property

The decision to buy an investment property should never be rushed. It is a major financial move and needs proper planning.

If APRA tightens investment lending rules, investors who wait may find their borrowing power has dropped or that banks have tougher approval criteria.

At the same time, APRA’s recent comments could be the push some investors need to act sooner and secure finance under today’s settings.

If you are asking yourself, is now a good time to buy a rental property, with possible rule changes ahead? , it is wise to get clear advice on your position.

Get Clarity with the Osinski Finance Team Today!

If you want to buy a home, invest in a property , or get started as a first-time home buyer , it helps to know where you stand before any new rules come in. If you are asking yourself is it good to buy rental property now, then getting clear professional advice is the smartest first step.

Osinski Finance can review your borrowing capacity , explain how possible APRA changes may affect you, and match you with suitable home loan options.

For clear, tailored guidance instead of guesswork, contact us today and put a solid plan around your next rental property purchase.

Gen Z First Home Buyers: 5-Year Goal as 1 in 3 Plan to Buy

Wed, 26 Nov 2025 22:05:43 GMT

Gen Z has a reputation for living online, but their biggest goal is very real. A growing number are quietly setting themselves up to buy a first home before the decade is out.

Rather than waiting for the stars to align, many are building a plan, trimming spending, and reshaping what “getting a place of your own” looks like.

The classic “great Australian dream” has not gone anywhere.

Owning a home still sits high on the wishlist for many Australians. A recent Westpac survey found more than one in three (35%) Gen Zs, mainly those in their 20s, expect to buy their first home within the next five years .

That is a 5% rise since the start of the year. It points to a clear shift in confidence among Gen Z home buyers.

So what is behind the lift in optimism, and how are they turning it into action?

Let’s unpack it.

Gen Z Home Buyers and Why They Want a Place of Their Own

For many young adults, the motivation starts with independence. Almost two in five (37%) say buying a home is about finally having their own space and calling the shots. Years of living with parents or dealing with rental inspections will do that.

A solid sense of financial security is next on the list. More than one in three (34%) Gen Zs see owning a home as a key step in feeling more stable with money.

A similar share (32%) are simply tired of renting. They want to get off the rental treadmill and channel their money into a home that belongs to them. The thinking is simple: if you are going to pay for somewhere to live, you may as well work toward an asset in your name.

These are emotional and financial drivers working together. The result is a generation that is more determined to buy, even with high prices and cost of living pressure.

Gen Z home-buying strategy in action

Turning a goal into a deposit usually comes down to daily habits. Around eight in ten Gen Z first home buyers are boosting their savings by tuning their lifestyle choices. Many are cutting back on food delivery, takeaway, and nonessential spending so more cash can flow into their savings account.

They also know the property market is tight, with fewer homes listed for sale . To get around this, four in five (80%) say they are open to suburbs they had not considered before. That can mean looking a little further out or choosing pockets that are not yet “hot” but offer better home value .

Flexibility also shows up in the type of property they are willing to buy. Interest in apartments, which can often sit at a lower price point than houses in the same area, has lifted by 2% since the start of the year. At the same time, enthusiasm for traditional houses has eased slightly.

More than half (55%) of Gen Z home buyers are even considering rent vesting. This means their first purchase is an investment property in an area that stacks up numbers-wise, while they continue to rent in a location that suits their lifestyle. It is a way to enter the market without giving up the suburb they enjoy living in.

How much deposit are Gen Zs aiming for?

High property prices make the old standard 20% deposit a big mountain to climb. So many Gen Zs are choosing a different path rather than putting their plans on hold.

Over half (53%) of Gen Z first-home buyers in their 20s are happy to move ahead with a deposit of 10% or less. The focus is on getting a foot in the market, then building equity over time.

This has become more realistic with the newly expanded Australian government 5% Deposit Scheme . The scheme allows eligible buyers to purchase a home with as little as a 5% deposit and pay no lender's mortgage insurance. That can save tens of thousands of dollars and shave years off the deposit-saving stage.

For Gen Z, it is one more lever to pull in a broader strategy that blends careful saving, flexible property choices, and smart use of government support.

Turn Your First Home Plan Into a Real Timeline With Osinski Finance

Buying your first home does not have to stay in the “someday” basket.

With a simple savings plan, the right government support, and a home loan that fits your budget, owning a place can become a real goal, not just an idea.

Osinski Finance helps you with more than just one decision. We can guide you as a first-time home buyer , review and set up your home loan options , and explore ways to invest in a property that supports your long-term plans.

If you are a Gen Z first-time home buyer who is ready to move from ideas to action, contact us today. Our mortgage broker can shape a Gen Z home buying strategy that fits your income, lifestyle, and goals, so you can step into a place of your own with confidence.

How to Pay Down Your Mortgage Faster: Why More Australian Homeowners Are Tackling Debt Head-On

Wed, 19 Nov 2025 22:29:23 GMT

To save or to pay down your home loan. It is not exactly Shakespeare, but it is a genuine dilemma for many Australian families right now.

Plenty of homeowners have decided they are done waiting for interest rate cuts and are taking matters into their own hands. The focus has shifted to shrinking the mortgage balance and taking back a bit of control.

A recent survey by Agile Market Intelligence found that 69% of homeowners, the highest share this year, now see getting ahead on their home loan as their top money priority.

Let’s look at why and what learning how to reduce your mortgage quickly means for you.

Interest rate

If you are looking at how to reduce your mortgage quickly, it helps to understand how interest works on your home loan. For most people, the interest rate on a home loan is higher than the rate earned on a standard savings account.

That is not exactly a shock. Charging interest on loans is one of the main ways banks make their money.

Because of that gap, every dollar you use to cut your loan balance usually saves you more in home loan interest than you could earn in a cash savings account.

Start sooner, and the effect snowballs. The earlier you direct extra money into your home loan, the more interest you can avoid over time and the sooner you can become mortgage-free.

Here is why. Every extra repayment goes straight off the loan principal. That means the next month’s interest charge is calculated on a slightly smaller balance.

Your regular repayments do not change, so a bigger slice of each one starts working to reduce the debt rather than just paying interest.

Over time, the pendulum swings in your favour. Bit by bit, more of every repayment chips away at the balance, and less is lost to interest. That is when you really feel like you are making progress.

How to reduce your mortgage quickly and build equity at the same time

As you reduce the amount owing, your home equity usually increases, provided your property value does not fall.

Higher equity can open doors. With more equity behind you, you may:

Qualify to refinance to a loan with a sharper rate, which can drive even more savings, or
Tap into that equity to help you achieve other goals, such as investing in a rental property.

So learning how to pay down your mortgage faster is not just about the feel-good factor of seeing the balance drop. It can also expand your options and give you more flexibility in the future.

The best strategies to reduce your mortgage quickly when money is tight

High living costs mean many homeowners have little spare cash, but you are not locked into your current loan timetable.

It is still possible to pay your mortgage off sooner and trim your interest bill, even if your budget feels tight. Here are some practical ideas.

1. Pay more often

Switching from monthly to half-monthly repayments made every fortnight can be a simple way to get ahead.

Because there are 26 fortnights in a year, you effectively pay the equivalent of 13 monthly repayments rather than 12. That extra month’s worth of repayments goes straight into reducing your loan balance.

For many people, lining up fortnightly repayments with payday also helps keep cash flow smooth and predictable.

2. Add lump sums

Lump sum payments are one of the best strategies to reduce your mortgage quickly.

Instead of treating your tax refund, end-of-year bonus, or other unexpected windfalls as spending money, consider dropping them into your home loan. You are unlikely to miss funds that never really made it into your day-to-day budget, and your future self benefits from lower interest costs.

3. Consider an offset account

An offset account lets you put any spare cash to work against your home loan.

The balance in your linked offset is taken off your loan when interest is calculated, which lowers the interest bill, so more of each repayment reduces the actual debt.

4. Check the rate you are paying

You can be doing everything right and still feel like you are running uphill if your interest rate is higher than it needs to be.

For context, the Reserve Bank has reported an average variable home loan rate of around 5.5% . At the same time, comparison sites such as Mozo show plenty of lenders offering lower advertised rates .

This gap is why it pays not to assume your current rate is competitive. The only way to know for sure is to check.

How Osinski Finance can show you how to pay down your mortgage faster

Whether you took out a 25- or 30-year mortgage, you do not have to keep it for the full term. With the right structure and strategy, you can learn how to pay down your mortgage faster. You can work towards becoming mortgage-free sooner and free up money for savings, travel, or investing in a property .

If that is your goal, Osinski Finance can review your home loan , explore refinancing options , and help you set up a clear plan to get ahead on repayments and reduce your interest costs. Contact us today.

Is It the Right Time to Buy? Home Price Growth in Summer and Why Prices Could Climb

Wed, 12 Nov 2025 22:11:46 GMT

Property values are running hot as we head into summer. Many expect the heat to build over the next 12 months. Here is how that may shape your home buying plan and what rising home prices in summer could mean for you.

Home values are picking up pace. October saw the fastest monthly growth in more than two years . That momentum has buyers and sellers paying close attention.

The outlook points one way. A recent API Magazine survey found nine in ten respondents, or 88%, expect prices to head higher . That is a strong vote of confidence in the market.

Market watchers are on the same page. PropTrack tips further gains through spring and summer. The Commonwealth Bank also says, “ we still expect further gains ” this year. Forecasts can miss, but the weight of opinion leans to more growth ahead.

If those calls prove right, it could make sense to bring forward your timeline. Waiting may cost more than acting with a clear plan today.

Home Prices in Summer: Up 6.1% Over the Past Year

It has been a big year. National home prices are up 6.1% across the past 12 months . That lift shows clear home price growth in summer as the market tightens.

Lower interest rates have stoked buyer demand . Cheaper repayments widen the pool of active bidders. That shows up quickly at open homes and auctions.

Tight rental markets are drawing investors back. They now make up close to their highest share of lending since 2017 . Yields and vacancy rates are doing the heavy lifting.

Policy is adding demand at the entry level. The expanded 5% deposit first home buyer scheme is helping more buyers get a start. More eligible buyers means more competition for similar stock.

Supply is the handbrake that is not easing. New home completions sit 15.6% below the decade average. Pipes, labour, approvals, and funding all play a part. The upshot is fewer homes hitting the market.

Put it together and demand outruns supply. That is the recipe for further price pressure. It is also a reason some buyers are choosing to act sooner.

Summer Home Prices Can Chip Away at Borrowing Power

No one should rush a home purchase. Good decisions come from clean budgets, solid advice, and proper checks. That said, timing matters when home price growth in summer speeds up.

If values keep rising, the same deposit will buy a little less. Your borrowing capacity may improve with rate cuts, but price gains can outpace that lift. The result is a smaller shortlist and tougher trade offs.

Recent numbers show the squeeze. Rate cuts from the Reserve Bank have given a median income household a $51,000 boost to borrowing power . At the same time, median values across the big capitals have climbed almost $54,000 since February. Prices are moving faster than capacity.

This is not a signal to buy the first listing you see. It is a nudge to use today’s borrowing power well. A plan made now can help you stay in front of the curve.

Speak with us and we will check if you are home loan ready today. If there are gaps, we will map out the steps to get you there.

Take Stock and Get Organised for Home Price Growth in Summer

Start with the numbers. Confirm income, expenses, savings, and buffers. Lock in a budget that leaves room for rates, repairs, and life.

Line up a finance review. Pre approval sets a clear limit and shows sellers you are serious. It also helps you move quickly when the right place appears, which matters if summer home prices keep rising.

Watch local data, not just headlines. Suburb level sales, days on market, and listing volumes tell the real story. A suburb next door can behave very differently.

Plan your shortlist. Focus on homes that fit your budget, needs, and future plans. Be honest about trade offs such as commute, schools, space, and renovation work.

Keep your documents tidy. Up to date payslips, statements, and ID make finance checks faster. When competition is strong, speed is an edge.

A Note on Rates and What Comes Next

Inflation has surprised on the upside . That puts a question mark over future rate cuts . No buyer should bank on cheaper money later, especially with home prices in summer often pushing higher.

If rates do not fall as hoped, borrowing power may stall. If prices rise at the same time, the gap widens. A clear plan now can help you avoid that squeeze.

Talk with a broker who can compare lenders and products. Policy settings differ and can change. A smart lender fit can add capacity without adding risk.

Ready to Start with Osinski Finance? Let’s Set Up Your Plan

Want a straight view of your borrowing capacity , rates, and suitable lenders?

With summer home prices on the move, Osinski Finance compares a wide panel of lenders and products so you can act with confidence. We help with home loans for purchases and refinances, smart lending options for investing in property , and step by step support for first home buyers including grants and applications.

We work to your brief and handle the paperwork from start to finish so you can move ahead with confidence.

Contact us today .

Buying at Auction: Your Simple Plan to Bid with Confidence

Thu, 06 Nov 2025 21:54:28 GMT

Season 21 of The Block has wrapped. The sales story did not finish there. Two homes did not sell at auction. One drew no bids. Out in the wider market the picture looks brighter. Auction clearance rates in the capitals are rising. Here is how to get your auction game in order.

Life can mirror art. Reality TV does not always mirror the market. The Block’s finale proved that. Two out of five homes did not sell on the day. One received no bids at all.

Across the capitals the momentum is stronger. Cotality reports clearance rates of about 72% over the past two weeks . That is well up on 59.50% at the same time last year. More homes are also going under the hammer than at any time in the last 18 months.

Auctions can feel challenging when you are buying a house at auction. You cannot know how many bidders will turn up. You cannot know the reserve. You cannot know the final price. Use the steps below to bring more certainty to your plan.

Buying a House at Auction: Five Steps That Add Confidence

1. Know your borrowing power

Start with a clear view of what you can borrow. If you are buying at auction, guesswork will not cut it. Online calculators give broad guesses and broad ranges. Results can be off the mark. Speak with a lending expert instead. A proper review looks at your income, debts, goals, and time frame. You will leave with a reliable borrowing figure.

2. Set a buying budget

Do not forget the upfront costs. Stamp duty, transfer charges, and loan application fees all add up. Get a full list before you bid. A clear budget reduces the risk of hidden costs that could derail your purchase.

3. Have your home loan pre approved

Pre approval is a lender’s early green light up to a set limit. It still has conditions. It matters at auction because there is no finance clause. Bidding without pre approval is brave or very cashed up. A firm pre approval helps you set a ceiling. It also gives you the confidence to stop at that limit.

4. Get your legal rep to review the contract of sale

Never assume a contract is standard. If you are buying a house at auction and you win, you are committed on the spot. There is no cooling off period. Ask your solicitor or conveyancer to review the contract before auction day. Know exactly what you are buying and on what terms.

5. Do all the normal pre purchase checks

Do not rely on first impressions. Order a building and pest report for houses. Order a strata report for apartments and townhouses . Yes, it is another cost. It can save you from bigger repair bills later.

Buying House at Auction: Plan the Day

When buying at auction, arrive early. Register to bid with time to spare. Set your limit and keep it in writing. Watch the pace of bids and the auctioneer’s calls. Ask if the property is on the market once bidding nears the reserve. Stay calm and stick to your plan.

Call us Before Auction Day Arrives

Selling by auction suits today’s tight markets. It puts pressure on buyers. If you are buying a house at auction, preparation takes that pressure off you. Get organised before you raise your hand.

Buying at Auction: Speak with Osinski Finance

Need help with borrowing power , budgets, and pre approval for buying a house at auction?

Osinski Finance is a friendly mortgage brokerage that compares a wide range of lenders and products. We help with home loans , investing in a property , and becoming a first home buyer . We work to your brief, explain the costs clearly, and handle the paperwork from start to finish. Contact us today to get auction-ready.

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

All Aboard: Finding Affordable Suburbs with One Extra Train Stop

Wed, 29 Oct 2025 22:38:27 GMT

If you have just jumped on the home buyer express, value sits high on the list. Staying on the train for one more stop can translate into savings worth hundreds of thousands of dollars. The idea is simple. When you are house hunting and want a bargain, scan the rail map and compare the next station down the line to spot affordable suburbs by train.

New research from PropTrack suggests buyers can pocket serious savings by looking at suburbs that sit one stop further from the city. The wins are real. Let’s break it down.

Why One More Stop can Reveal Affordable Suburbs

Property prices keep rising. One in three markets across Australia now shows a median home value of $1 million or more. That does not have to derail your plans. PropTrack’s data points to dozens of affordable suburbs by train line across our capital cities where moving just one stop along the line can unlock more affordable houses.

How much more affordable?

In many areas, the difference runs to six figures. In one case it reaches seven figures. All that changes is a few extra minutes on the commute.

There are exceptions. Some lines end in high-value suburbs. Popular schools or beaches can lift prices in certain pockets. Even so, many areas still show clear savings for the extra stop. The examples below show where buyers can benefit.

Affordable Suburbs By Train: What the Data Shows

Sydney

Sydney is the nation’s priciest market, so value can be hard to find. The extra-stop strategy helps identify affordable suburbs.

In the south, buyers pay a median of $1.75 million for a house in Como. That is a saving of $747,500 compared to Oatley at $2,497,500.

In the inner west, a house in Ashfield has a median of $2.2 million. That is about $300,000 less than Summer Hill at $2.5 million.

Melbourne

Melbourne shows some of the biggest gaps.

In Caulfield, the median house price sits at $1.87 million. That is $1,121,250 less than Malvern at $2,991,250.

In the north, Pascoe Vale buyers paying the $1.049 million median save about $519,000 compared with Strathmore at $1.568 million.

Brisbane

Brisbane has strong examples as well.

Corinda carries a median of $1.22 million and sits one station after Sherwood at $1.722 million. The savings is roughly $502,000 for only a few extra minutes on the train.

Murarrie sits at a median of $1,187,500. That is a $350,000 saving compared with Cannon Hill at $1.55 million.

Adelaide

Beachside suburbs along Adelaide’s western lines often command higher prices despite being further from the CBD. Savings still exist, especially when you compare affordable suburbs by train line one stop apart.

Claren Park records a median of $1.2 million. That is $311,000 cheaper than neighbouring Goodwood at $1.511 million.

Tonsley shows a median of $675,500. That is a $217,000 savings compared with Mitchell Park at $892,500.

Perth

Perth delivers variety at both ends of the price spectrum.

Mosman Park has a median house value of $2.4 million. It sits one stop from Cottesloe at $3,062,500. The gap is $662,500.

For more budget-friendly options, Clarkson shows a median of $730,000. That is $220,000 less than Currambine at $950,000.

Affordable Suburbs By Train Line: City Snapshots and Takeaways

Use the local rail map to shortlist paired suburbs on the same line. This helps you spot affordable suburbs quickly.
Check medians for adjacent stations. Differences of six figures are common.
Consider school zones, beaches, and line termini. These can lift prices even if the suburb sits further out.
Time the commute. A few minutes more can mean serious savings.
Validate the numbers with the latest PropTrack data and recent sales.

Find Your Affordable Suburb with Osinski Finance

PropTrack’s research shows you do not need to buy a fixer-upper to find value. Start by checking prices in your target pockets, then look one stop further along affordable suburbs by train line.

When you are ready to move, Osinski Finance is here to help with home loans , investing in a property , and becoming a first-time home buyer . We provide strategy, pre-approval support , and access to competitive lenders. We do the legwork and match a mortgage to your goals.

Call us today so we can help you begin your home-buying journey .

Bank of Mum and Dad: What $40,000 Really Does for First Home Buyers?

Wed, 22 Oct 2025 21:03:01 GMT

They say nothing beats a parent’s love. Add $40,000, and a set of house keys can feel closer. Below is a clear look at family support. You will also find other ways to buy a first home that give parents a breather.

Saving a first home deposit can feel like a marathon. Across Australia, it takes about 5.6 years on average to save a 20% deposit . Deposits grow slowly. Property prices can rise quickly. In the past 12 months, home values climbed 4.8% .

For many first-time home buyers the goal posts keep shifting. Enter the bank of mum and dad. Nearly one in three homeowners with a mortgage have had help from their parents . That help averages around $40,000.

Generosity alone does not guarantee a loan approval . You still need a plan that works for lenders and for your family.

Bank of Mum and Dad: the head start and the limits

Not every family can put up $40,000. That is fine. Even small, well-planned help from the bank of mum and dad can still make a difference.

Talk to us early about the right type of support. Some offers feel helpful but slow things down. The aim is to boost your chances, not build hurdles.

Bank of Mum and Dad Australia: how it typically works

Parents can help in different ways. Support from the bank of mum and dad might mean letting adult children live at home longer to lift savings.

Cash support is common, but the details matter. Keep these three points in mind:

Gift letter

A lender may want written proof that a cash gift is not repayable. It shows the money is free of strings.

Parent loan risks

If the help is a loan, some lenders treat it like a personal loan. Required repayments can cut borrowing power .

Genuine savings still count

Lenders like to see regular saving for three to six months. It shows discipline to manage repayments.

The bank of mum and dad: common traps to avoid

Parents want the best for their kids. Support from the bank of mum and dad should not put their own future at risk. If help will stretch mum and dad, rethink the plan.

Be clear on paperwork and ownership. Decide if the help is a gift, a loan, or a guarantee. Document it, keep records, and protect family relationships and borrowing power.

Options that do not rely on parents

If the bank of mum and dad australia is not an option, there are solid paths that keep family finances safe:

Home Guarantee Scheme at 5% deposit

Buy with a 5% deposit and pay no lender's mortgage insurance. Recent changes brought unlimited places and higher price caps.

First Home Super Saver Scheme

Use super to grow your deposit. Many buyers save about 30% faster than with a standard account.

Co-buy with siblings or friends

Not for everyone, but it can lift buying power and share costs. Speak to us about loan structures and exit plans.

Osinski Finance: Bank Of Mum And Dad Guide For First Home Buyers

Osinski Finance is an independent mortgage brokerage that works for you, not the bank. We compare lenders and explain your options clearly. We manage the process from assessment to settlement.

We help with home loans , investing in a property , and becoming a first-time home buyer .

Whether you are using help from the Bank of Mum and Dad Australia or going it alone, we will structure the loan so you can buy sooner and sleep better.

Get in touch for a friendly chat and a clear plan forward.

What Are the Chances of Another RBA Interest Rate Cut This Year?

Wed, 15 Oct 2025 21:56:21 GMT

The Reserve Bank has kept the cash rate steady, and several of the big banks have wound back calls for more cuts in 2025. Here is what that could mean for your home loan.

It looks like the RBA rate cut party may be over for 2025.

After holding in September, the Reserve Bank of Australia is taking a wait-and-see approach to assess how the earlier reductions in February, May, and August are flowing through the economy.

Pair that with a lift in inflation in October , and plenty of economists have cooled on the idea of further cuts this year.

Let’s unpack the moving parts and what it could mean for your repayments.

RBA interest rate cut: where things stand

There is a growing view that we may have seen the last of the RBA interest rate cuts for 2025.

NAB has stepped back from earlier calls for possible cuts in November and February and now expects the cash rate to stay on hold until May 2026 .

Commonwealth Bank has also put a line through a November move. Their view is that a drop in the cash rate is unlikely before February next year .

ANZ no longer expects additional cuts in 2025, pointing instead to February as the next plausible option .

Westpac is the lone standout still allowing for a 0.25% move in December . A pre-Christmas cut would be welcome news for borrowers, but it is far from locked in.

The big banks shift on rba interest rate cuts

If you were hoping for a cheaper rate before the holiday season, these forecasts may feel like a setback.

Here is the flip side.

Activity in the mortgage market has been lively, and you may not need to wait for the New Year to see savings.

With the right approach, you could bring forward your own rate relief.

What if the next RBA rate cut takes longer than hoped?

Even with the cash rate parked, lenders are still competing hard for quality borrowers. In other words, you do not need to wait for an RBA interest rate cut to see movement.

According to Mozo, several lenders trimmed variable rates in September despite no change to the cash rate that month.

Mozo also notes that a borrower with a $660,000 loan could save about $100 per month, or $1,195 a year, by switching from a 6.10% rate to 5.85%.

That is a clear hint to check what you are currently paying.

Canstar adds that a competitive rate for owner-occupiers right now sits around 5.25%.

Lenders are moving even without an rba rate cut

In a competitive market, banks and non-banks sharpen rates and cashback offers to win business. Even if the next central bank move lands later, you can still benefit from lender competition now.

Start with a quick audit:

Confirm your current rate, comparison rate and revert rate
Check fees, offset, redraw and break costs
Compare like-for-like against today’s sharper deals

A small rate drop can make a meaningful difference over a large balance.

Could you give yourself a rate cut?

If you were waiting for the RBA interest rate cuts to move again this year, it may be time to rethink the plan.

Instead of sitting tight, consider taking control of your own home loan rate through a refinance or a repricing request with your current lender. Many borrowers secure a better deal simply by asking their bank to match market offers. If that fails, a clean refinance to a sharper product can do the job.

Run the numbers, line up your documents, and check that the features match how you actually use your loan. If you pay extra regularly, an offset account may be worth prioritising. If you want certainty, weigh a fixed or split rate. If cash flow is tight, examine fees and any honeymoon rates that step up later.

Take Control of Your Home Loan with Osinski Finance

Osinski Finance offers home loans , investing in a property , and refinancing your home loan . Instead of waiting for the next RBA interest rate cut, make your move today. We review your current loan, compare options across major and specialist lenders, and negotiate directly to secure a sharper deal. We set out costs, timelines, and next steps in plain language so you can cut your rate, lower monthly repayments, and move forward with confidence.

Separating? Your Home Loan Options Under a Divorce Mortgage

Wed, 08 Oct 2025 21:52:36 GMT

Nicole Kidman and Keith Urban are back in the headlines with reports their 19-year marriage is over.

If you are also navigating a breakup, it helps to get clear on the practical steps early, especially if your goal is to keep the family home.

Many readers begin by searching for mortgages after divorce to see what is genuinely possible.

Divorce mortgage: first, get an accurate value

Unless you and your ex are selling to a third party, you will need a reliable figure for what the property is worth. This lets you gauge a fair buyout amount or confirm what you are owed if your ex is the one taking over, and it is the first step in any mortgage refinance after divorce.

A local agent can provide a market appraisal, though it has no legal standing and can be optimistic if they think a listing is likely. Free online estimates are quick, yet they lean on past sales and can miss current market shifts.

A formal valuation by a licensed valuer is the gold standard. There is a cost, but you gain an independent and precise value that both sides can use with confidence.

Funding the home when there is still a mortgage

If you plan to keep living in the home, you will need to show how you will fund it while the property remains under mortgage. You generally cannot just start making repayments on a loan held in your ex’s name. That still leaves your former partner on the hook if anything goes wrong.

Applying for a new loan in your own name is common. Lenders focus on whether you can meet repayments. Be ready to show proof of income, which can include wages, Centrelink benefits, spousal maintenance, or child support if these will contribute to the loan.

In some cases you can refinance the existing loan so it sits in your name only. There are several pathways to a workable divorce mortgage, and speaking with a broker early can help you choose the option that suits your position and timelines.

Mortgage refinance after divorce: what to expect

Mortgages after divorce are about balancing serviceability, equity, and settlement terms. Lenders will review your income, expenses, liabilities, and any agreed payouts. A clean valuation, clear documentation, and realistic buffers for costs can speed up approvals.

You will also want to factor in stamp duty exemptions or concessions that may apply in family law property transfers, plus legal and discharge fees. A tidy, well-documented application tends to keep the process on track.

Mortgages after divorce: What Lenders Look For

Keep a shared calendar of key dates, from valuation appointments to settlement deadlines. Store statements, agreements, and court orders in one folder. Close or separate joint accounts as soon as practical to avoid crossed wires.

If you are planning a mortgage refinance after divorce, stay realistic with your budget. Include rates , insurance, utilities, and a maintenance buffer. Owning the home should feel sustainable, not stretched.

Separation is a time for steady support

Breakups are tough. Having the right professionals around you helps. A family lawyer can guide the legal side. For the finance side, a broker can outline your options, prepare the numbers, and manage the lender conversation for you.

If you are looking at your next move, a short call can bring clarity and a plan.

Talk to Osinski Finance Today

Talk to Osinski Finance . We are an independent mortgage brokerage for home loans , refinancing home loans , investing in a property , and structuring a divorce mortgage. Our team compares lenders, structures buyouts, and manages the process from assessment to settlement. Whether you want to take over the loan in your name, weigh alternatives, or line up a refinance, we will set out costs, options, and timelines in plain language so you can move forward with confidence. Reach out for a confidential chat about keeping your home and setting up the next chapter on solid ground.

Mortgage Broker for Refinance: Why 99% of Australians Are Turning to Brokers

Wed, 01 Oct 2025 21:40:51 GMT

Switching your home loan may seem like a headache, but it can actually save you thousands.

Recent research shows that choosing to refinance with a mortgage broker support makes the process easier and commonly results in a lower interest rate along with better loan features.

The ABS reports a sharp rise in refinancing activity. In the June quarter, home owners moving to a new lender jumped 24% compared to the same period last year. Investment loan refinancing also climbed by 15%. Clearly, Australians are recognising the benefits of making the switch.

And when you add a broker into the mix, the rewards get even bigger. According to the Mortgage and Finance Association of Australia (MFAA) , brokers are helping the majority of borrowers secure better outcomes.

Refinance With Mortgage Broker: 99% Have Secured Discounts for Clients

Who doesn’t enjoy paying less? Even a small interest rate cut can translate into major savings on repayments and total interest across the life of a loan.

MFAA found that 99% of clients refinancing with a mortgage broker secured a discount successfully. That is almost every borrower walking away with a better deal.

A mortgage broker for refinance has access to a wide network of lenders, on average working with around 23 . This gives you access to a wider range of lenders and loan products, rather than being restricted to just one bank. A broker’s job is to compare the market and match you with a home loan that meets your needs at a competitive rate.

92% of Brokers Helped First-Time Refinancers

If you are new to refinancing, it is normal to feel uncertain about the process. A good broker makes it straightforward to understand.

The MFAA reports that 92% of brokers have helped first-time clients refinance their loans.

That means you are not alone if this is your first time switching. A broker will explain how refinancing works, what kind of savings you might achieve, and how long the process takes.

Best of all, a mortgage broker for refinance manages communication between your old lender and your new one. That reduces stress and keeps the process on track from start to finish.

97% of Clients Return to Their Broker

The numbers speak volumes about customer satisfaction. According to the MFAA, 97% of brokers have clients who return whenever they need loan advice.

It shows the trust borrowers place in refinancing with a mortgage broker for long-term financial support. From a first home purchase to an investment loan or refinancing, clients rely on brokers for ongoing support and guidance.

Ready for Refinancing With a Mortgage Broker? Talk to Osinski Finance

If you are considering refinancing, the team at Osinski Finance is here to help. We offer a full range of services, including home loans , property investment finance , and refinancing your home loan . We focus on finding finance solutions that suit your budget and lifestyle while keeping the process stress-free.

From negotiating lower rates to handling paperwork, we guide you through every step when you choose to refinance with mortgage broker support. Contact us today to book your refinancing review and start saving with confidence.

Countdown to Buying a Home Before Christmas

Wed, 24 Sep 2025 22:10:47 GMT

The festive season is fast approaching, and buying a home before Christmas is still possible. With the right support, you could be unwrapping gifts in your new living room instead of waiting out delays. A broker can help you make it happen.

Supermarket shelves already stocked with puddings and decorations are proof that Christmas is close. Just 14 weeks away.

Since most home settlements take between four and 12 weeks, buyers hoping to celebrate in a new place need to act now. A rushed purchase is never wise, but preparation makes all the difference. Being organised helps you avoid settlement delays when lenders and solicitors close for the summer holidays.

Here’s how a broker can help you secure a new address in time.

1. Check your borrowing power first

Before you attend inspections, book a chat with us. We will give you a clear idea of how much you can borrow.

Knowing your borrowing power means you can focus only on properties in your price range. This step sets the foundation for buying a home before Christmas.

2. Find the right loan and lender

A home loan is a big commitment. It must fit your budget, lifestyle, and long-term goals. If you are buying a home before Christmas, the right loan choice is even more important.

We take the time to understand what matters to you. Then we filter through the loan options and only present those that suit. You still make the final choice, but with a shorter list, you have more time to focus on finding the right property.

3. Get pre-approval to move faster

Getting your home loan pre-approved is one of the smartest steps you can take, especially if you are buying a new home before Christmas.

Pre-approval gives you a set budget and stronger negotiating power. It also builds confidence if you are planning to buy at auction. You can bid knowing your limit, which is a real advantage in today’s market. Cotality reports that auction numbers are the highest they have been since June 2025, so buyers need every possible edge.

Another big plus is speed. With pre-approval in place, much of the loan assessment has already been completed. This helps you move faster to unconditional approval once you find the right property.

In short, pre-approval keeps you competitive and lowers the chance of settlement delays.

4. Line up your expert team

Along with your broker and lender, you will need a solicitor or conveyancer. They review the contract of sale and complete the settlement process.

Having them ready before you sign avoids delays later. We can connect you with trusted professionals through our network. This saves you time and keeps the process moving as the holiday period draws closer.

5. Let us manage the process

December can be stressful enough without loan paperwork adding pressure. We will manage your application and deal with the lender from start to finish.

Since we deal with a wide range of lenders, we know exactly who to contact to keep things moving. This helps keep your loan on track and gives you more time to plan for Christmas in your new home.

Buying Home Before Christmas: Can It Be Done?

Yes. With the right steps, you can be settled in your new place before the big day. Imagine celebrating the holidays, opening champagne, and starting the new year already at home.

If buying a new home for Christmas is your goal, now is the time to act.

Let Osinski Finance Guide You in Buying a New Home for Christmas

At Osinski Finance , we help Australians secure the right finance solutions. Our services include home loans , support for first home buyers , and property investment finance . We will explain your borrowing power, connect you with the right loan, and guide you through the process of buying a home before Christmas with a professional team by your side.

Jump Into the Market Up to 4 Years Sooner With the 5% First Home Loan Deposit Scheme

Wed, 17 Sep 2025 22:30:58 GMT

For most first home buyers, saving for a 20% deposit can feel like a never-ending uphill climb. But here’s the good news: you might only need a 5% deposit to buy your first home . Even better, you may already have enough saved to qualify.

Think of saving for a deposit like running a financial marathon. It’s long, it’s tiring, and the finish line can seem far away.

According to PropTrack , it takes an average Australian household about 5.6 years to save the traditional 20% deposit. That timeline stretches even further in higher-priced areas.

And while you’re putting money aside, property prices rarely stand still. Rising values can move the goal posts, making it harder to keep pace with your savings target.

That’s why the recent expansion of the Home Guarantee Scheme (HGS) is such a game-changer. Housing Industry Association (HIA) Senior Economist Tom Devitt says the first home loans deposit scheme could shave up to four years off the time it takes to save for a deposit .

A quick calculation shows this means first home buyers could secure a deposit in just over 18 months. Many who are already saving may find themselves closer to buying than they thought.

What is the first home loan deposit scheme?

The first home loan deposit schemes, also known as the HGS, are designed to help first home buyers purchase sooner .

Unlike the First Home Owner Grant , which provides a one-off payment, no money changes hands under the HGS. Instead, it lets you buy with just a 5% deposit .

Here’s how it works. The federal government guarantees the remaining 15%, giving lenders the same level of security as if you had saved a 20% deposit. That guarantee removes the need for lenders' mortgage insurance (LMI), which can be a hefty upfront cost.

“First home buyers pay between $25,000 and $30,000 in LMI to purchase an average home,” says the HIA’s Tom Devitt.

By using the first home loans deposit scheme, you don’t just buy with a smaller deposit. You also avoid this significant cost, making homeownership more affordable from the start.

How do the first home loans deposit scheme and first home loan schemes compare?

The federal government has announced major updates to the HGS, starting 1 October 2025. These updates are aimed at improving access to all Australian first home loan schemes .

From this date:

All Australian first home buyers will be eligible.
There will be no cap on the number of applicants each year.
Income limits will be removed, opening the scheme to buyers on higher wages.
Property price thresholds will rise to reflect current market conditions.

According to the HIA, these changes mean first home buyers could move into their first home around four years sooner on average. The first home loan deposit scheme is one of the most significant reforms for young Australians hoping to buy sooner.

How Osinski Finance can help you with first home loan schemes

If you’re a first home buyer , now could be the right time to act. The changes to the first home loan deposit scheme give you a rare chance to shorten the path to homeownership and reduce upfront costs.

Not every lender is signed up to the first home loan schemes, which makes expert guidance essential. At Osinski Finance , we specialise in helping clients with home loans , investing in a property , and becoming a first-home buyer . Our team will point you to the right lenders, outline your options, and guide you through the next step with confidence.

Get in touch with us today, and let’s get you closer to your first set of house keys.

5 Buying Home Tips to Gain a Competitive Edge This Spring

Wed, 10 Sep 2025 21:22:57 GMT

Spring is the busiest time of year for property buyers, and 2025 is no exception. With three rate cuts already shaping borrowing power, competition in the housing market is heating up. To stay ahead, you need more than just good timing. These five buying home tips will help you prepare, act fast, and boost your chances of securing the right property this season.

The warmer weather, fresh gardens, and the desire to settle before Christmas all combine to make spring the peak period for buyers. Experts suggest the August rate cut could push demand even further , so now is the time to be ready.

Here are five proven home buying tips to help you buy an edge in this spring market.

1. Set a time to review your borrowing power

Whether you are a first-home buyer or looking to upgrade, your borrowing capacity has likely changed with the recent rate cuts. It is essential to know how much you can borrow before you start house hunting.

Looking at properties outside your budget wastes time and risks missing out on the right home. Schedule a meeting with your broker to confirm your home loan readiness and borrowing limit. This will put you on solid ground as you start your property search.

2. Secure loan pre-approval

A pre-loan approval is one of the most valuable home buying tips. It confirms that a lender is willing to provide funds up to a certain amount, giving you the confidence to make strong offers.

With pre-approval, you can move quickly at open homes or auctions, knowing your top price limit. It signals to agents and sellers that you are serious, which could give you the upper hand against less-prepared buyers.

3. Explore more than open homes

In spring, homes often sell before they even reach the public market. Connecting with local agents or engaging a buyer’s agent can reveal off-market opportunities.

Share your budget and pre-approval status so agents know you are ready to act. This can help you gain early access to properties and avoid competing with large crowds.

4. Learn the buying process

One of the most practical buying a home tips is to understand each step of the property journey. The process can feel overwhelming, but having it explained clearly means you can act with speed and confidence.

The more informed you are about contracts, settlements, and conditions, the smoother your purchase will be when the right home comes along.

5. Buying Home Tips: Build your team of specialists

Buying property is rarely a solo effort. Beyond a broker, you will likely need a solicitor or conveyancer, a building and pest inspector, and possibly a buyer’s agent. Having these professionals ready means fewer delays when you want to move forward with an offer.

Your mortgage broker can provide home buying tips and connect you with a trusted network of experts who understand the pace of the spring market. Having the right team makes the entire process faster and less stressful.

Buying a Home Tips: Moving Quickly Can Save Money

While you should never rush into a property purchase, being prepared can save you money. PropTrack data shows that buyers in September often pay 0.23% below the annual average price. Buyers who wait until November could pay 0.78% above average.

Following these buying home tips ensures you enter the market ready to move quickly and confidently.

Ready to Put These Home Buying Tips into Action with Osinski Finance?

At Osinski Finance , we specialise in providing buyers with practical buying home tips and guidance to navigate the property market with clarity and confidence. Our services include home loans , support for those investing in a property , and tailored solutions for the first home buyer . From confirming borrowing power to securing pre-approval, we guide you through each step and connect you with trusted professionals to complete your purchase.

5% First Home Loan Deposit Scheme Expands Early: Will It Push Prices Higher?

Wed, 03 Sep 2025 22:40:08 GMT

The much-talked-about home loan deposit scheme is set to roll out sooner than expected, opening the door for more buyers to purchase with just a 5% deposit. But there’s a twist. With the early expansion, some experts warn that buyers may want to move quickly before property prices shift upward.

The Home Guarantee Scheme (HGS) is at the heart of this change. It allows first home buyers to enter the market with only a 5% deposit while avoiding lenders' mortgage insurance (LMI).

Currently, the HGS is only available to a limited pool of buyers who meet strict income caps and property price limits. Places are also capped each year, meaning many miss out.

Originally slated for expansion in 2026, the changes will now take effect from 1 October 2025.

That’s welcome news for anyone saving hard for a deposit. But it could also mean increased competition and higher prices once the new rules take effect.

How the First Home Loan Deposit Scheme Works

With housing affordability stretched , scraping together a 20% deposit can feel impossible. That’s why an Australia first home loan deposit scheme, through the HGS, has become such a lifeline.

Since its launch in 2020, the scheme has helped more than 230,000 first home buyers use the program to secure a property with just a 5% deposit.

While the HGS doesn’t hand out cash, it delivers savings in another way. By guaranteeing part of your loan, the federal government removes the need for LMI – a cost that can otherwise add tens of thousands of dollars to your home loan .

What’s Changing in the 5% Home Loan Deposit Scheme

Here’s what else is on the way: From 1 October 2025, every first home buyer will be able to apply under the HGS, which is also known as the Australia first home loan deposit scheme.

The cap on the number of places will be removed .
Income limits will no longer apply.
Property price thresholds will be lifted to give access to more housing options.
The Regional First Home Buyer Guarantee will be rolled into the broader First Home Guarantee.

Housing Minister Clare O’Neil has framed these changes as a way to help Australians buy sooner, with fewer roadblocks.

Why the Australia First Home Loan Deposit Scheme Could Affect Prices

The early start of the first home loan deposit scheme through the HGS could trigger price movements. The Insurance Council of Australia predicts property values could rise by up to 10% in the first year in hotspots popular with first home buyers.

Across the country, prices climb between 3.5% and 6.6%.

The reasoning is simple: boosting demand in a tight housing market usually leads to upward pressure on prices. That’s why some buyers may find it makes sense to act sooner rather than later.

Take the Next Step with Osinski Finance

No one can say for certain how the property market will respond once the new rules start. What is certain is that owning a home often feels more rewarding than paying rent.

You also don’t have to wait until October. If you meet today’s income and property caps, you may already qualify for the HGS.

At Osinski Finance , we help first home buyers navigate the home loan deposit scheme, simplifying the process so you can clearly understand your options and move confidently toward owning your first home.

Alongside helping first home buyers , we also offer expert support with home loans and property investment , giving you the confidence to plan for today while building for the future.

Contact us today to discover if you’re ready to secure your first home loan deposit scheme. You may be closer to owning your first home than you realise.

Refinancing Home Loan: 1,000 Aussies Switch Daily

Wed, 27 Aug 2025 21:44:06 GMT

Since February, three rate cuts have prompted homeowners across Australia to review their mortgages. Many have found better deals through home loan refinancing. More than 100,000 home loans were approved in the past quarter.

This week, the ABS reported that 1.26 million home loans have been refinanced over the past three years. Refinancing first surged during the RBA’s rate hikes in 2022 and 2023.

Now that rates are falling , demand for refinancing remains as strong.

In the June 2025 quarter alone, almost 100,000 mortgages were refinanced. That equals more than 1,000 home loans for refinancing every day, the highest level since September 2023.

So, why are Australians turning to refinancing in such large numbers?

Saving on Loan Interest and Cutting Repayments Through Refinancing

The RBA’s rate cuts this year total 0.75%. That has delivered some relief. Yet many borrowers are achieving far greater savings by choosing a refinancing home loan.

According to Canstar , a borrower with a $600,000 loan could save more than $12,000 in two years by switching to a lower-rate loan. This assumes they have not renegotiated their rate in the past three years. For many Australians, that is the case.

A Finder survey also shows that over half of homeowners do not know their current interest rate. This lack of awareness means many are paying more than necessary instead of exploring home loans for refinancing.

Accessing Home Equity Through Home Loan Refinancing

Refinancing a home loan is not just about securing lower repayments. It also allows borrowers to unlock the equity in their property.

Property values have risen 45% nationally in the past five years and are 65% higher than they were a decade ago. This growth gives borrowers more flexibility to use refinanced home loans to fund:

Home renovations
Children’s education
An investment property purchase
Debt consolidation at a lower rate

Upgrading to a Home Loan for Refinancing That Works Better

Many borrowers choose refinancing to improve loan features.

These features may include:

Offset accounts to cut interest
Flexible repayment options
The ability to split between fixed and variable rates
A redraw facility for extra repayments

If your current loan does not offer these features, refinancing could deliver more flexibility and long-term value.

Why It Pays to Act Now on Refinancing a Home Loan

In the last quarter, over 100,000 Australian families refinanced their mortgages. They secured lower repayments, unlocked equity, or upgraded loan features. Waiting longer only means paying more on an outdated loan.

At Osinski Finance , we make home loan refinancing simple. We offer services in home loans , property investment , and refinancing your home loan . Whether you want to cut repayments, access equity, or enjoy smarter features, our experts compare hundreds of options and handle the process for you.

Contact us today and let us help you find the best home loans for refinancing so you can save money and move forward with confidence

RBA Interest Rate Cut to 3.60%: How Much Can You Save?

Wed, 20 Aug 2025 04:54:31 GMT

Borrowers around Australia have just been handed some breathing room, with the Reserve Bank of Australia (RBA) delivering its third RBA rate cut of the year. The latest 25-basis-point trim brings the official rate down to 3.60%, offering a brighter outlook for households juggling rising costs.

Why the RBA Interest Rate Cuts Again?

After surprising markets with a pause last month, the RBA Board has now followed through with expectations by trimming the cash rate to help ease cost-of-living pressures. Governor Michele Bullock said the decision was unanimous, noting that underlying inflation has continued to track back towards the Bank’s 2–3% target range.

The RBA has faced mounting pressure from community groups, business leaders, and mortgage holders to deliver relief. While inflation has cooled, households across Sydney, Melbourne, and regional towns are still battling higher grocery bills and utility prices.

How Much Could You Save from the RBA Rate Cut on Your Mortgage Repayments?

If you’re on a variable home loan , the savings could be meaningful. Assuming lenders pass on the full cut, here’s what it looks like in practical terms:

On a $500,000 loan (25 years, principal and interest), monthly repayments could drop by about $76. That’s $912 per year.
On a $750,000 loan, you’re looking at a monthly saving of around $114, or $1368 annually.
With a $1 million loan, repayments could decrease by roughly $152 per month, or $1824 per year.

This relief can add up for families in mortgage belts from western Sydney to Brisbane’s outer suburbs, where higher debt levels have stretched budgets thin.

Why Lender Policies Still Matter?

One catch: not every bank automatically lowers repayment amounts when rates fall. Some lenders leave the repayment amount unchanged, meaning more of your money goes towards reducing the principal faster. While that helps long-term, you can ask your lender to adjust repayments to free up more cash in your budget right now.

In past RBA interest rate cuts, major banks like CBA and NAB announced changes within a week, while some smaller lenders took longer to confirm. Checking your bank’s announcement this month could save you from missing out.

Still Feeling Mortgage Stress?

For many families, even with this RBA interest rate cut, the relief might feel like a drop in the ocean. According to CoreLogic, mortgage repayments still sit higher than when most households first signed their loans in the late 2010s. Rising insurance premiums and council rate increases add extra strain.

If you’re feeling the squeeze, it may be the right moment to explore options:

Renegotiate with your current lender to see if they’ll sharpen your RBA interest rate cuts.
Refinance to a new loan with a lower interest rate or better terms.
Consolidate debts to simplify repayments and ease monthly outgoings.

Our team regularly works with families from Wollongong to Newcastle, helping them review their loans and uncover savings.

Osinski Finance: What the RBA Interest Rate Cut Means for You

The recent RBA rate cut can shift the lending landscape quickly. If you’d like a clear view of how the RBA’s cash rate cut to 3.60% could affect you, the team at Osinski Finance is here to help. Whether you’re reviewing your home loan , looking at investing in a property , or exploring options for refinancing your home loan , we’ll guide you through the best strategies. Reach out for a personalised home loan health check and put some certainty back into your budget.

Skipping Pre-Approval Leaves 1 in 10 First Home Buyers Empty-Handed

Wed, 13 Aug 2025 22:30:35 GMT

Buying your first home can be exciting, nerve-wracking, and, at times, downright frustrating. It’s not uncommon to spot a property that ticks every box, only to have your hopes dashed.

According to Finder, three out of five first home buyers have missed out on properties they wanted. The main culprit? Being outbid by someone else.

While you can’t control whether another buyer has a bigger budget, you can take steps to put yourself in a stronger position. One of the simplest and most effective is having a home loan pre-approval in place.

Yet Finder’s research shows more than one in ten (11%) first-time buyers lost a home simply because they didn’t have pre-approval ready to go.

Here’s why that’s a big deal, and why it might be your secret weapon in a competitive market.

What Is Home Loan Pre-Approval?

Home loan pre-approval is the process of applying for a mortgage before you start inspecting houses. It allows a lender to review key details like your income, deposit, and savings track record, and then confirm the maximum amount they’re willing to lend you.

It’s like both you and the lender agreeing you’re a match.

The process is typically free, and you’re under no obligation to take out the loan. But having pre-approval reassures you that finance won’t be a stumbling block when you find the right place.

It also sets clear budget boundaries and gives you confidence to negotiate strongly or bid at auction, knowing exactly where you stand.

Why Skipping Pre-Approval Can Cost You

Technically, you could wait until you’ve found the perfect home before applying for finance. But that can be risky.

Lenders need time to assess your application and confirm how much you can borrow. If the seller is looking for a quick sale, a more organised buyer with pre-approval could swoop in before you’re ready to sign.

There’s also the danger of overestimating your borrowing capacity. Without a clear figure from a lender, you could fall for a home outside your actual budget. (The good news is we can help you estimate your borrowing power even without formal pre-approval.)

Bottom line? While not compulsory, pre-approval helps you act fast and with confidence, and signals to sellers that you’re a serious buyer.

Key Things to Know About Home Loan Pre-Approval

There are a few practical details worth keeping in mind:

1. Pre-approval has an expiry date: It’s not valid forever . Most lenders set a timeframe of three to six months. There’s no need to feel pressured. If it runs out, we can assist you with renewing your pre-approval.

2. It’s based on your current situation: If your income, debts, or savings change, it can affect your pre-approval. Let us know so we can update your lender.

3. Not every lender offers it: Policies vary between lenders, so it’s worth speaking to someone who knows which options are available.

Osinski Finance: Your Fast Track to Home Loan Pre-Approval

If you’re not sure where to start with home loan pre-approval, Osinski Finance can help. Whether you’re looking for a home loan , investing in a property , or refinancing your current loan , we’ll guide you through every step. We’ll match you with lenders who provide competitive pre-approval options and ensure you’re ready to move quickly when your dream home becomes available. Don’t lose out because paperwork slowed you down.

Let’s get you pre-approved and ready to make a winning offer. Contact our team today.

How Your Home Could Help Fund Your Child’s Education

Wed, 06 Aug 2025 22:01:33 GMT

They say the three golden rules of real estate are location, location, location. But if you're thinking long-term for your kids, it’s less about location and more about education.

New insights from Cotality (formerly known as CoreLogic) reveal that properties inside the boundaries of high-performing public schools can attract eye-watering price premiums. And while that might sound like just another case of supply and demand, the story runs deeper.

Let’s unpack why where you live can have such a powerful influence on your child’s education and how your home could do more than just shelter your family.

Homes in Top School Zones Are Selling for a Premium

Cotality, formerly known as CoreLogic, has crunched the numbers across Sydney and Melbourne. Their research confirms what many families already suspect. If your house falls within the catchment of a high-performing public school , chances are it’s worth a lot more than a similar home just outside the zone.

We’re not talking about small change either. In many school zones, buyers are paying over $100,000 more just to secure an address within the catchment.

Parents aren’t paying extra just for a shorter school run. They’re investing in the quality of education their children can access, without needing to fork out for years of private school fees.

While school tuition often rises with inflation, your mortgage may stay steady or even become easier to manage in real terms over time. That makes the premium price tag on the right property potentially good value over the long term.

How Your Home Loan Could Help Cover Education Costs

Of course, not every family wants to move house for a school zone. The good news is, your home loan could still help cover schooling expenses.

Here are three ways to make your home loan work harder for your child’s future.

1. Use an Offset Account to Save on Interest and Fund School Fees

An offset account connects to your home loan and functions like a standard bank account. The money sitting in it reduces the amount of interest charged on your mortgage.

For example, if you have $50,000 in your offset account and a mortgage of $600,000, interest is only charged on $550,000. That means you pay less in interest and can reduce your loan faster.

It also gives you an easy way to grow your education savings. The money stays accessible, but it still works to your advantage in the meantime.

2. Tap Into Your Home’s Equity

Home equity is the difference between your home’s market value and what you still owe on your loan. With nearly 48.8% of suburbs in Australia at record-high property values , you might have more equity than you think.

You could use that equity to request a top-up loan from your lender. The additional funds can be used to cover school expenses or support other educational goals.

It’s also a good time to review your home loan. Refinancing to a better rate or a more flexible loan could lower your repayments and free up funds at the same time. That’s a smart move if you’re planning for school fees.

3. Buy an Investment Property

Investing in property might be another way to support your child’s education. A well-chosen rental property can generate income and offer tax benefits through negative gearing.

Over time, the property's value may increase, allowing you to access more equity when needed.

Another strategy is rentvesting. This means buying a more affordable home in one location, then renting in the school zone where you want your child to attend. You benefit from the capital growth of your investment while securing access to the right school.

A qualified accountant or tax adviser can help determine if this strategy suits your financial situation.

Osinski Finance: Helping You Plan for Education and Property

Education expenses can climb fast, and so can mortgage pressure if you borrow beyond your means.

That’s why it’s important to understand what you can borrow before you go shopping for a home near a popular school.

At Osinski Finance , we help families make confident property and loan decisions. Whether you're applying for a home loan , planning to invest in a property, or considering your options as a first home buyer , we’ll guide you through the best approach. We also help with refinancing if you're looking to unlock equity or reduce your repayments.

Let us help you build a plan that supports your family’s future. Contact our team and see how your home loan can work smarter for your child’s education.

Why Newly Built Homes Are Booming Again: What Buyers Need to Know in 2025

Wed, 30 Jul 2025 22:16:12 GMT

There’s something special about stepping into a freshly built home. Crisp paint, unscuffed floors, and untouched appliances are just part of the appeal. And it looks like more Australians are seeing the value in going new.

According to the Housing Industry Association , sales of new detached homes jumped 18.8% in the three months to June 2025. That’s the strongest growth in new home sales in nearly three years.

If you’re deciding between buying new or established, it’s worth considering the pros, potential trade-offs, and the financial assistance available to buyers choosing new homes.

The Upside of Buying Brand New

Let’s face it, a new home just feels different. It offers a clean slate and modern features that fit today’s lifestyles.

But the benefits go beyond just looking good.

Energy Efficiency Comes Standard

New builds must meet strict energy efficiency requirements . That means better insulation, smarter orientation, and lower bills for heating and cooling.

Minimal Upkeep in the First Few Years

With new fittings, appliances, and finishes, you're less likely to face costly repairs. And if something does go wrong, the builder’s warranty can often cover the fix.

Customisation Options During Construction

Building new often means you can choose your layout, colours and finishes before the home is completed. These tweaks are easier and more affordable to make early, instead of renovating later.

Tax Perks for Investors

If you’re buying for investment, a new property value can offer strong depreciation benefits. These can lead to helpful tax deductions and better cash flow.

What to Watch Out for When Buying New

Even with all the appeal, there are a few things to consider before going ahead with a new build.

Location Might Be Less Central

Most new developments are built in outer suburbs where land is more available. That can mean longer commutes and fewer services at first.

Still, these areas often offer more space for less money. As the suburb grows, infrastructure like transport and schools tends to follow.

The Wait Can Be Long and Stressful

Unlike an established home where you move in after settlement, new builds often involve months of waiting. Delays due to weather, materials, or council approval are common.

It’s not unusual to keep paying rent longer than planned or arrange temporary housing. And sorting out final defects with builders can add more stress.

Financial Incentives for Buyers of New Homes

New builds come with a few potential savings if you’re eligible. These incentives are especially helpful for first home buyers.

First Home Owner Grant (FHOG)

This grant is offered in most states for people buying or building a new home. Some states extend it to substantially renovated homes, too, so check the details here.

Stamp Duty Savings

Stamp duty is usually based on the property's value at the time of purchase. If you buy land and build later, you may only pay duty on the land, not the full home.

States including New South Wales , Victoria , Queensland , WA , and Tasmania offer stamp duty concessions for first home buyers. South Australia limits its savings to those buying or building new.

Financing a New Build: What You Should Know

How you fund your new home depends on the type of property you buy. A fully built home, a house and land package, or a block of land to build on later will each need a different approach.

You might need a construction loan that releases funds in stages during the build. Or a regular home loan if the house is already complete and ready for settlement.

Getting the right loan structure can make the entire process smoother and more affordable.

Talk to Osinski Finance About Buying New

At Osinski Finance , we help home buyers secure tailored loans for new builds, house and land packages, and construction projects. Whether you’re a first-time buyer or looking to upgrade, we can guide you through every step of the financing process.

We also help you navigate government grants, compare loan products, and find the most cost-effective option for your goals. Whether you’re applying for a home loan , becoming a first home buyer , or investing in a property , our team makes the process straightforward so you can focus on finding or building the perfect home.

Message us today to explore your options, ask your questions, and take the next step toward owning a brand-new home.

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Could Your Borrowing Power Be Bigger in 2025?

Wed, 23 Jul 2025 22:24:45 GMT

It’s been a year of financial shifts, and if you haven’t looked into your borrowing power lately, now’s a smart time to do so.

From tax and interest rate cuts to HECS changes, a lot has landed in favour of Aussie borrowers this year. These shifts could mean you’ve got more borrowing capacity than you thought.

Let’s break it down.

What influences borrowing power?

Also known as your borrowing capacity, this is how much a lender is willing to lend you to purchase a property.

While every lender has its assessment criteria, three big things shape your borrowing power:

Your income
Ongoing household expenses
Existing debts, like car loans or credit cards

The thing is, your borrowing capacity isn’t fixed. It adjusts with your financial situation and changes in the broader economy.

This year, several changes are working in your favour. This year, several changes are working in your favour. Your borrowing capacity might be higher than you think, thanks to new policies and shifts in lending criteria.

1. Home loan rates have dipped

We’ve seen two rate cuts in 2025, easing the pressure on borrowers.

Just 12 months ago, variable rates for new home loans hovered around 6.3% . Today, they're closer to 5.8%.

Lower interest rates mean smaller monthly repayments, which can increase your borrowing power.

How much more?

According to Canstar, this year’s cuts could boost the borrowing power of a single average income earner by around $23,000 . For couples, it could be as much as $40,000 to $45,000.

2. Tax cuts are now live

Stage 3 tax cuts rolled in last year, and they’re putting more back into people’s pay packets.

Lower tax means more take-home pay, which helps improve your borrowing power when lenders do the maths.

Compare the Market estimates that a couple with no children may now be able to borrow $47,000 more than before the cuts .

3. Wages have gone up

More than 2.9 million Aussies saw their pay increase from 1 July thanks to a 3.5% lift in the National Minimum Wage and award wages.

If you’ve had a pay rise or even changed jobs for a better salary, it’s worth finding out how your new income affects your borrowing power.

Every extra dollar counts when lenders look at what you can afford.

4. Student debt rules have relaxed

Traditionally, lenders included HECS-HELP debts in your loan application, which reduced your borrowing capacity.

But in 2025, the approach has softened. If your HECS-HELP balance is nearly paid off, some lenders might leave it out of their calculations.

That change alone could free up thousands in borrowing capacity.

Want to lift your borrowing power even more?

Here are a few smart moves to help you stretch your borrowing capacity further:

Rework your expenses: Lenders factor in your day-to-day spending. A few cutbacks, like cancelling unused subscriptions, comparing utility plans, or reviewing gym memberships, can make a real difference.

Lower your credit card limits: Even if you don’t carry a balance, high credit card limits impact how much you can borrow. A $10,000 limit can reduce your borrowing capacity by about $50,000 . Dropping your limit is an easy win.

Tackle other debts: Whether it’s a car loan or personal finance, less debt on the books means more room for a home loan. It’s not always easy, but small extra repayments can help chip away at balances over time.

Check Your Borrowing Power With Osinski Finance

You might be able to borrow more in 2025, but that doesn’t mean you have to. The key is knowing your number.

At Osinski Finance , we help everyday Aussies understand their borrowing power and find the right home loan . Whether you're buying your first home or investing in your next property , we’ll guide you through it.

Get in touch today to see where you stand and how much further you could go.

Two-thirds of Borrowers May Save By Refinancing: New Data Shows

Wed, 16 Jul 2025 22:15:04 GMT

Plenty of Australian homeowners are holding out for rate cuts from the Reserve Bank of Australia (RBA). But if you want relief sooner, refinancing could help you reduce your rate now. The catch? Many borrowers are staying loyal to older loans that might be draining their wallets.

When it comes to the RBA, nothing is set in stone until their board wraps up its meetings.

We saw this in July. Many experts were sure a rate cut was on the cards . Instead, the RBA left rates on hold , pointing to ongoing economic uncertainty.

But that did not stop tens of thousands of homeowners from grabbing their rate cut by refinancing.

Refinancing on the rise in 2025

Fresh numbers from property settlement group PEXA show refinancing activity has bounced back . Volumes climbed 12.5% over the year to March 2025 as borrowers hunted for better deals.

That surge saw thousands of homeowners secure lower rates. According to the Australian Bureau of Statistics, more than 65,000 home loans were refinanced in the first quarter of 2025 alone.

Yet plenty of borrowers are still sitting tight.

A survey by Compare the Market revealed that 65% of people who have had the same home loan for over three years have not refinanced.

That is a worry, because the loan that suited you years ago may no longer be your best choice today.

Why consider switching?

As this month’s RBA decision reminded us, there are no promises of rate cuts on the horizon.

It can pay to be proactive. Checking in on your options can help you stay ahead.

This is even more relevant if you have had the same loan for years. The mortgage market has been shifting.

Mozo reports that while some lenders have introduced their rate cuts, others are staying put. A growing number are even offering fixed-rate deals starting with a ‘4’ . That is something we have not seen in a while.

Is refinancing the right move for you?

Loyalty is an admirable trait in many parts of life. But when it comes to home loans, it could mean you are paying more than you should.

Sticking with an old loan might leave you with a higher interest rate or outdated features.

If you have not reviewed your loan in years, now is a good time to see if it still meets your needs. If it does not, there are plenty of alternatives that might.

See How Osinski Finance Can Help You Review Your Loan

Our team at Osinski Finance makes refinancing straightforward. We specialise in refinancing your home loan and home loans tailored to your needs. We can compare lenders, explain your options in clear language, and help you lock in a rate that suits you.

Don’t keep paying more than you need to. Message us today to see how we can help you save.

Low deposit? 50,000 Home Guarantee Scheme Places Now Available

Wed, 09 Jul 2025 22:14:37 GMT

Saving up a 20% deposit can feel like an impossible mission. But there’s good news if you’re keen to get into the property market sooner. As of 1 July, 50,000 new places have opened up in the popular 5% deposit Home Guarantee Scheme. Here’s what you need to know about claiming one.

If you’ve been chipping away at that 20% deposit goal and wondering if you’ll ever get there, you’re in good company.

According to property exchange platform PEXA, it can now take buyers more than ten years to save for a deposit .

Who wants to wait that long?

That’s where the Home Guarantee Scheme (HGS) steps in. It helps eligible first home buyers secure a property with as little as a 5% deposit.

As of 1 July, an additional 50,000 HGS places have been released .

How does the 5% deposit Home Guarantee Scheme work?

The scheme doesn’t hand you a cash grant. Instead, the federal government guarantees part of your loan.

This means you can buy with just a 5% deposit and avoid paying any lender's mortgage insurance (LMI).

That’s a big deal because LMI costs can easily run into tens of thousands of dollars.

The real benefit? It’s much quicker to save 5% than 20%, and time is of the essence.

CoreLogic is tipping house prices to climb another 5.8% over the next year.

Why these new places matter

It’s no surprise that more than 230,000 first home buyers have already used the HGS to break into the market.

But there’s a catch – places are capped each year.

That’s why the release of 50,000 new spots on 1 July is such welcome news.

Here’s how those places break down:

35,000 for the First Home Guarantee
10,000 for the Regional First Home Buyer Guarantee
5,000 for the Family Home Guarantee (supporting single parents)

Eligibility at a glance

The HGS isn’t open to everyone, so you’ll need to check that you qualify.

Not sure? Reach out. We can help you confirm your eligibility quickly.

But here’s a simple guide:

Singles need to earn $125,000 or less.
Couples (including friends or siblings buying together) can earn up to $200,000 combined.

If you’re earning above these limits, don’t give up. The Albanese Government has pledged to remove income caps altogether in 2026.

There are also property price caps that depend on where you’re buying.

But you’ll have plenty of choice. You can buy new or existing properties, a house-and-land package, or even an off-the-plan apartment.

Ready to see if you’re eligible?

These spots tend to fill up fast.

If you want the chance to buy with just a 5% deposit and skip LMI entirely, now is the time to act.

Osinski Finance makes it simple to understand your options and navigate the Home Guarantee Scheme. As your local finance partner, we support first home purchases , property investment , and loan refinancing .

Get in touch today to find out if you can claim one of these limited places and take that big step toward your own home.

How to Confidently Make an Offer on a Home

Wed, 02 Jul 2025 22:26:40 GMT

Finding the perfect property in your price range is an exciting achievement. But once you’ve found the one, what’s the next move? Let’s clarify how to make an offer on a home, from first enquiry to settlement day.

Buying property isn’t something most of us do every year. Many people will only go through the process a few times in their lifetime. It’s no wonder that even experienced buyers often feel unsure about what steps come next.

If you want to put in an offer and secure your new home, here’s a clear step-by-step guide from browsing to owning.

1. Start with a Conversation

Before making any offer, it’s essential to know you’re in a position to complete the purchase.

That’s why your first step should be to talk to your broker.

A good broker will explain your borrowing capacity and deposit so you know your true buying budget.

While many buyers seek home loan pre-approval before they even begin house-hunting (and it can be a smart move), it’s not mandatory.

But once you’ve found a property you love, you’ll want to get the ball rolling on finance as quickly as possible to ensure your loan is ready in time for settlement.

2. Request the Contract of Sale

When you’re serious about a property, ask the selling agent for a copy of the contract of sale.

Reviewing this contract with your solicitor or conveyancer is crucial. This step is usually quick, but it can uncover any unusual conditions that might favour the seller.

Even conditions like a shorter settlement period aren’t necessarily deal-breakers. They can sometimes become valuable bargaining points in your negotiations.

3. Research the Local Market

By this stage, you’ve likely attended multiple inspections and gathered a feel for local pricing.

This is the moment to leverage that research. Look at comparable sales in the area to understand what similar properties are selling for, not just what they’re advertised at.

This market knowledge will provide a solid foundation for determining a realistic, competitive offer.

4. Consider Negotiating a Discount

Even if the asking price seems fair, there’s often room for negotiation.

According to CoreLogic , sellers have recently been accepting median discounts of around 3.4%. For a $600,000 home, that could mean saving over $20,000.

Of course, discounting potential varies by location. Some markets are more competitive than others.

The key is to stay within your budget and negotiate confidently without overstretching yourself financially.

5. Put Your Offer in Writing

Once you’ve settled on the price you want to offer, put it in writing. This demonstrates to the seller that you’re a serious buyer.

At this point, expect some back-and-forth on price. Negotiations are part of the process.

When both parties agree, you may be asked to pay a small holding deposit , often around 2.5% of the agreed purchase price.

This isn’t the same as the 10% contract deposit you’ll typically pay when signing the formal contract of sale.

Remember to contact your broker as soon as your offer is accepted. They check the property details with your lender and progress your home loan application.

6. Sign and Exchange Contracts

It usually takes a few days to finalise the contract.

Use this time to confirm with the selling agent how the 10% deposit will be paid.

When everything’s ready, both you and the seller will sign the contracts and exchange them. At this point, you’ll pay your contract deposit to the agent.

A good broker will stay in touch with you during this stage to make sure everything runs smoothly.

7. Prepare for Settlement

Settlement typically happens 30–90 days after exchanging contracts. This is when legal ownership transfers to you.

During this waiting period, your broker works behind the scenes with your lender to ensure your home loan is finalised and ready for settlement day.

When the big day arrives and you receive the keys to your new home, your broker will be there to celebrate your success!

Make Your Move with Osinski Finance

Buying a property can seem complicated, even intimidating, but you don’t have to figure it out alone.

At Osinski Finance , we specialise in simplifying the home-buying journey for our clients. We’ll help you with home loans , investing in property , and refinancing , letting you focus on the excitement of your new home.

Call us today to see how we can help you buy your new property.

First Home Buyers Are Back: Could It Be Your Turn Too?

Wed, 25 Jun 2025 21:44:53 GMT

Here’s some welcome winter news. First home buyers are stepping back into the market in noticeable numbers. If you’ve been thinking about buying your first home, now might be a smart time to take the next step.

Recent figures from NAB show that lending to first home buyers has risen by 16% since February. It’s a strong bump, and while this data comes from just one lender, it reflects a wider shift that’s catching attention.

Let’s look at what’s making the timing feel right for so many.

Consumer confidence is lifting. There’s been a slight but encouraging improvement in how Australians are feeling about their finances. As cost-of-living pressures start to ease, more people are feeling ready to make big decisions.

Interest rates are a major part of this. About two-thirds of Australians believe home loan rates will either stay the same or drop in the next 12 months. That’s a big confidence boost for buyers .

Westpac is backing this up with forecasts of two interest rate cuts before the end of the yea r and more to follow in 2026. For many would-be homeowners, the idea of lower repayments is enough to tip the scales.

Property Prices Are Expected to Rise

Another motivator is the belief that home values are about to increase. The latest Westpac–Melbourne Institute Index shows that expectations for house prices are now at their highest point since 2013.

More than three-quarters of Australians think property prices will go up in the next 12 months. This is especially relevant to first home buyers.

CoreLogic data confirms that while the overall pace of growth has slowed , the most affordable properties are still gaining value. This is exactly the part of the market where first home buyers are most active.

If you’re ready to buy, moving sooner might save you money compared to waiting.

First Home Buyer Support Still Available

Saving for a deposit can still be hard work. The good news is there’s a fair bit of help available for first home buyers, depending on where you live.

Most states and territories offer stamp duty exemptions or discounts, and some have first-home-owner grants that can give your savings a boost.

There’s also the Home Guarantee Scheme , which lets eligible first home buyers purchase a home with just a 5% deposit. Even better, you won’t need to pay Lenders Mortgage Insurance. This can save you thousands of dollars.

If you’re not sure what you’re eligible for, a mortgage broker can help you find out what’s available in your area and how to apply.

Listings Are on the Rise

Winter is usually a quiet season for real estate, but this year is breaking the pattern.

CoreLogic reports that over 35,000 new properties were listed for sale in the four weeks leading up to 1 June 2025. That’s a strong rebound and a sign that more homes are becoming available.

More listings mean more choice. You might find something that suits your needs, fits your budget, and is ready to move into without delay.

Is It Your Time to Buy?

A lot is working in favour of first home buyers right now. Conditions are shifting, support is available, and there’s more stock to choose from. If you’ve been waiting for a sign, this could be it.

At Osinski Finance , we make it easier to understand your lending options from the outset. We’ll assess your borrowing capacity , match you with a suitable home loan, and explain any grants or schemes you may qualify for.

Whether you're buying your first home , refinancin g , or investing in property , we offer tailored finance solutions to help you take the next step with clarity.

Our goal is to help you move forward with confidence and avoid any costly surprises.

Contact us today to get started. Whether you’re nearly ready or still weighing up your options, we’ll guide you with straightforward advice and practical support.

Australian Home Prices Now Average Over $1 Million

Wed, 18 Jun 2025 22:28:17 GMT

If you've been delaying your home-buying plans, this might be the sign you've been waiting for. For the first time, the average cost of an Australian home has cracked the $1 million mark.

Even with high living costs and a few challenging years of interest rate hikes, the property market just keeps moving. And not quietly either.

The latest data from the Australian Bureau of Statistics (ABS) reveals that the national average home price is now sitting at $1,002,500 . A historic high that has buyers and sellers taking notice.

Let’s unpack what that means for you.

Home Prices Depend on Where You Buy

The ABS figures show a 0.7 percent lift in average prices during the March 2025 quarter. That nudge was all it took to push the national average into seven-figure territory.

But these averages can be deceiving if you don't look at state-by-state breakdowns.

Here’s how things currently stand:

New South Wales leads the pack with an average price of $1,245,900
Queensland follows with $944,700
The ACT is close behind at $941,300
Victoria sits just under the million mark at $899,700
Western Australia is at $874,200
South Australia rounds out the middle at $861,900
Tasmania offers more affordability at $670,200
The Northern Territory is the lowest, with an average of $517,700

So while the national average has hit a record high, there are still pockets of affordability across the country.

Where Are Prices Headed Next?

The ABS data stops at March 2025, but recent insights from CoreLogic suggest the trend is still upwards .

Even markets that had slowed down, like Darwin, Hobart, and Canberra , are showing signs of bouncing back.

One major reason? Falling interest rates . According to PropTrack, lower rates have boosted buyer confidence and borrowing capacity . That means more people are jumping back into the market, which helps push prices higher.

Is Now the Right Time to Buy?

If you're asking yourself whether home prices will keep rising, you're not alone.

While no one can say with certainty what will happen next, many experts believe prices are likely to continue climbing.

CoreLogic has noted that the recent May rate cut should have a positive effect on home values through June and the rest of the year.

PropTrack backs this outlook, citing limited housing supply, strong population growth , and ongoing support for first home buyers as key drivers of expected gains through 2025.

Ready to Buy in a Million-Dollar Market? Osinski Finance Can Help You Make It Happen

There’s no perfect time to buy, but there is such a thing as being prepared.

If you're wondering whether you're ready to leap, a good place to start is understanding what you can afford.

We, at Osinski Finance , are ready to help you figure out your borrowing power , compare home loan options, and get clear on your next steps. Whether you're buying your first home , investing in a property , or looking for a smarter home loan , we’ll make the process simple, tailored, and stress-free.

Call us and take the first step toward owning a place you can call your own.

How to Boost Your Property’s Value by $118,000 (and Trim Your Power Bills at the Same Time)

Wed, 11 Jun 2025 21:39:51 GMT

When winter hits, there’s nothing better than snuggling up at home with a warm drink. But there’s a chill that’s not so welcome: those rising power bills.

With energy prices tipped to keep climbing , it’s easy to see why more Aussies are actively seeking energy-efficient homes. Recent insights from Domain show that buyers are willing to pay up to 14.5% more for energy-efficient houses and around 12% more for apartments. That’s roughly an extra $118,000 for a house and $75,000 for a unit.

Thinking about selling? Or just want to cut back your energy use? Here’s how to give your home an eco-friendly edge.

Aussie Homes: The Hidden Energy Drainers

It might surprise you, but Australian homes chew through about 24% of the country’s total electricity, according to Domain’s Sustainability in Property report .

It’s not just about leaving the lights on. Most homes across the country aren’t built to keep the heat in during winter or out in summer. That means we rely on heaters and air conditioners to stay comfortable.

Energy-efficient homes are designed to do the opposite. They naturally moderate indoor temperatures, which leads to lower energy bills and a more comfortable living environment all year round.

But here’s the kicker: one in four Australians still lives in a home with zero energy-efficient features .

What Buyers Want (and What Adds Value)

There’s a clear pattern in what today’s buyers are after. According to Domain, features like solar panels, passive design, and double-glazed windows consistently top the wishlist. Not only do they offer a lifestyle upgrade, but they also keep household running costs down.

And if you happen to have a north-facing home, that’s a bonus. North-facing properties take in more natural light and warmth in winter, a highly sought-after trait that only 15% of Aussie homes have.

That said, you don’t need to renovate from top to bottom to improve energy efficiency.

Start small: roof and ceiling insulation alone can slash heating and cooling costs by up to 45% .

Got room for a bigger change? Rooftop solar is becoming more affordable than ever, thanks to government grants and rebates.

And from 1 July 2025, the Cheaper Home Batteries Program will make solar batteries about 30% cheaper to install, helping households store and use more of their solar energy.

Smarter Ways to Fund Your Green Home Upgrades

Looking to make your home more energy-efficient but not sure how to fund it? You’ve got a few smart options at your fingertips.

Top up your home loan : Your current lender may allow you to tap into your existing equity, giving you access to extra funds for upgrades .
Consider a green loan : Some lenders offer loans specifically designed to finance eco-friendly home improvements like solar panels, insulation, and battery storage.
Refinance to a better deal : Refinancing your mortgage could reduce your interest rate and unlock equity, giving you the breathing room to invest in energy-efficient features.

Not only do these upgrades make your home more comfortable and efficient, but they could also significantly increase its value if you ever decide to sell.

At Osinski Finance , we specialise in helping Australians make smart, future-focused financial decisions, whether that’s applying for a home loan , investing in property , or refinancing your current mortgage . If you’re planning to upgrade your home with energy-efficient features like insulation or solar batteries, we’ll guide you through the best loan options, refinancing strategies, and ways to access your home equity to fund the improvements.

Get in touch today and let’s work together to make your home warmer this winter, cooler in summer, and potentially worth a whole lot more.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Surprise Move: Aussie Home Owners Hold Steady on Repayments as Rates Ease

dave@99content.co (Dave Barbeler) — Wed, 04 Jun 2025 21:36:48 GMT

After two rate cuts in early 2025, many Australian homeowners are choosing to stick with their current mortgage repayments. It’s a quiet but clever move that could lead to major interest savings over the long run.

There’s no denying it. Compared to last year, 2025 is looking much brighter for borrowers.

With two interest rate cuts already locked in and more predicted by some analysts , the pressure on household budgets may finally be easing.

But here’s the unexpected twist.

Rather than rushing to reduce their monthly repayments and pocket the short-term relief, most borrowers with one major lender are continuing to pay the same amount they were before the rate cuts. This simple decision could make a big difference over time.

A Potential $160 Per Month in Savings

Recent RBA rate cuts have opened the door to lower monthly repayments for many Australians.

Take the average $500,000 home loan . February’s 0.25% rate cut could have lowered monthly repayments by around $80. The second cut in May added another $80 to the potential savings .

That’s a combined monthly reduction of up to $160, or close to $2,000 a year.

Despite that, it seems the majority of borrowers haven’t contacted their lender to adjust their minimum repayment amount.

Why Aren’t Repayments Dropping?

Data from the Commonwealth Bank, which holds roughly one in four Australian home loans , shows that just 14% of variable rate borrowers reduced their loan repayments after February’s rate cut. That means 86% chose to leave their repayments as they were.

It’s not as odd as it sounds.

Most lenders, including Commonwealth Bank, don’t automatically reduce your minimum repayment when interest rates are lowered. Instead, they often keep it fixed at the same level unless you request a change.

By keeping your repayment steady while interest rates fall , more of each payment goes toward the loan principal rather than interest. Over time, this can shorten your loan term and cut thousands off the total interest bill.

Some lenders may automatically adjust repayments, so it’s worth confirming what your lender has done. If you’re unsure, now is a good time to check.

The Payoff of Sticking with Higher Repayments

If you can manage the same monthly repayment even after rates have dropped, you could be setting yourself up for big long-term savings.

Here’s what the numbers look like.

With a $500,000 mortgage at an average variable rate of 6.42% and a 25-year term, maintaining your previous repayment amount (which is effectively $160 more per month) could shave over $61,000 off your total interest bill.

Even better, you could own your home 2.5 years sooner than originally planned.

And if rates fall further in the months ahead, your interest savings could increase even more.

Find Out What You Could Save with Osinski Finance

Sticking with your current repayment amount can be a smart way to reduce interest and pay off your home loan sooner, but it all depends on your rate, loan balance, and financial goals.

From securing the right home loan to planning your next investment or refinancing your current mortgage, Osinski Finance helps you make smart, practical decisions every step of the way.

We’ll crunch the numbers, explain your options clearly, and show you how strategies like holding your repayments steady could save you thousands in interest.

Talk to us today for expert guidance to build your property portfolio.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

RBA Cuts Cash Rate Again: What It Means for Your Mortgage in 2025

Wed, 28 May 2025 04:47:24 GMT

Australian homeowners have received a welcome break as the Reserve Bank of Australia (RBA) announced a second cash rate cut this year, bringing the official rate down by 25 basis points to 3.85%.

With this decision, the RBA continues its efforts to ease the financial burden on Australian households amid ongoing cost-of-living challenges.

A Strategic Shift in Monetary Policy

This is the second rate cut in 2025, part of the RBA's broader initiative to support household spending and economic resilience. RBA Governor Michele Bullock noted that the risks surrounding inflation have recently become more balanced, prompting the Board's decision.

“With inflation expected to remain around target, the Board therefore judged that an easing in monetary policy at this meeting was appropriate,” said Governor Bullock.

What This Means for Your Mortgage

If you’re on a variable-rate mortgage , your lender may soon reduce your home loan interest rate in response to the RBA’s move. That could directly lower your monthly repayments, but the actual benefit depends on whether your lender passes on the full 25 basis point cut.

Here are the estimated savings you could see if your lender follows through:

$500,000 loan (25-year term, principal and interest): Approx. $77 less per month, or $924 annually
$750,000 loan: Around $115 less per month, or $1380 annually
$1 million loan: Roughly $154 less per month, or $1848 annually

It’s important to note that not all banks automatically reduce repayment amounts following a rate cut. Some may keep your repayment amount unchanged, meaning a larger share goes toward reducing your principal. This can accelerate your mortgage payoff timeline, but if you’re looking for short-term cash flow relief, you can request that your repayments be adjusted downward.

For clarity on how your lender handles this rate change, it’s wise to check in after a few days.

Still Feeling Financial Pressure?

Despite this rate relief, many households continue to face pressure from high interest rates compared to when their loans were initially taken out.

If it’s been more than a year since your last home loan review, now is the time to reassess your options. With rates shifting and lenders competing for borrowers, opportunities may be available to:

Negotiate better terms with your existing lender
Refinance to a more competitive loan
Consolidate debts to improve cash flow

Each household's financial situation is different. Working with a lending expert can help you tailor a strategy that aligns with your needs and goals.

Take the Next Step with Confidence at Osinski Finance

At Osinski Finance , we help Australian families make confident, informed choices about their home loans . Whether you're refinancing to reduce repayments, buying your first home , or investing in property , our team offers personalised guidance and expert support every step of the way.

We’re here to make the process simple and smooth so that you can move forward with confidence.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Property Values Doubling Every 10 Years: Is It a Fact or Just a Popular Myth?

Wed, 21 May 2025 22:43:46 GMT

There’s a well-known belief floating around Australian dinner tables and BBQs: property prices double every ten years. It sounds convincing, doesn’t it? But is it grounded in fact, or is it just another real estate myth?

Considering Australia’s housing market is valued at around $11 trillion, it’s no wonder that many myths and assumptions have sprung up over time. You’ve probably heard a few already, like “you need a 20% deposit” or “homes sell themselves if they’re good enough”.

One of the most persistent claims is that property values double every decade. Let’s take a closer look at what the data shows.

What’s Been Happening in the Property Market Lately?

In the past year, national home values have risen by 3.2 percent, reaching an average of $825,000 . That’s an increase of about $25,000 in just twelve months.

Looking over the past five years, prices have grown by 39.1% according to CoreLogic, which translates to roughly $230,000 added to the median home value across Australia. These figures show solid growth, but do they support the idea of prices doubling in ten years?

Are Properties Doubling in Value Every Decade?

Not quite. Over the ten years leading up to April 2025, property values across Australia increased by 67.3% .The rise is notable, yet it doesn’t reach the 100% threshold that would indicate a full doubling.

Here’s how each capital city performed during those ten years:

Adelaide : 93.6% (closest to doubling)
Brisbane : 91.2 percent
Hobart : 86.4%
Sydney : 61.6%
Canberra : 60.7%
Perth : 55.6%
Melbourne : 43.8%
Darwin : -0.5%

Only Adelaide and Brisbane came close to hitting the 100% mark. Sydney and Melbourne, while showing more modest percentage growth, still delivered large increases in dollar value because of their higher base prices.

Another Common Misconception, Debunked

There’s also the widely held belief that properties in major capital cities consistently outperform regional areas when it comes to value growth. But the numbers from CoreLogic reveal a surprising twist.

Looking back to 2015, some of the biggest increases in home values haven’t been in the capitals at all. The strongest performers have been regional areas such as country New South Wales, where prices have surged by 97.5%. Regional Tasmania isn’t far behind with a 96.1% increase, while regional Queensland has grown by 91.5%.

Altogether, properties in Australia’s combined regional markets have risen to 87.5% over the past decade. In contrast, homes in the combined capital city markets have seen values grow by 61.7% during the same period.

Remember that capital city properties typically begin at a higher median price. The median value in capital areas sits at $905,000 compared to $673,000 in the regions. That means capital city homeowners might still achieve larger absolute gains in dollar terms, even if their percentage growth isn’t as high.

The Real Takeaway

It’s easy to lean on generalisations, especially when property talk is part of a relaxed weekend chat.

But when making a big financial move like buying a home, it’s worth setting the myths aside and focusing on the facts about first home buyer activity .

Not every area or property will double in value within ten years. Some may never reach that point. Your home may still experience solid growth over the long term.

With the right guidance and a loan that suits your financial situation, home ownership can be a practical and rewarding way to grow your wealth.

Partner with Osinski Finance for Smarter Property Decisions

At Osinski Finance , we know that property decisions shouldn't rely on outdated assumptions or generic advice. While property values doubling every decade might sound appealing, real success comes from strategies based on facts, not folklore.

We help Australians see through the noise by offering practical insights and personalised loan solutions that reflect the true state of the property market , not just what’s said at weekend barbecues.

Whether you’re buying, refinancing , or investing , we are ready to support you with expert guidance and finance options that suit your long-term goals.

Call us today and take the next step with certainty, backed by accurate market data and financial advice tailored to your goals.

Albo Re-elected: What It Means for Aussie Home Buyers and Owners

Wed, 14 May 2025 22:09:09 GMT

Labor’s back in for another three-year term, and some of their key housing policies are now set to roll out. Whether you’re looking to buy your first home or already have a mortgage, it’s worth knowing how these changes could affect you.

Now that the election's behind us, it’s time to look ahead at what’s on the cards for the property market .

Where the Property Market Stands Mid-2025

As we move through the middle of 2025, the Aussie property market is still heading upwards .

National home values nudged up another 0.3 % in April, taking the median property price across Australia to a new record high of $825,349.

That means a 20 % deposit sits at around $165,000, no small sum. But there could be easier ways to get a foot in the door, thanks to upcoming changes to several federal housing schemes.

5% Deposit Scheme Set for a Major Expansion

The Home Guarantee Scheme (HGS) has already helped many eligible first home buyers break into the market with just a 5 % deposit and no lenders' mortgage insurance required.

Now, even broader access is on the way. From January 2026, the scheme will undergo a significant expansion.

Under the updated rules, every first home buyer will qualify to purchase a property through the HGS. The changes will include the removal of income thresholds, an increase in property price caps, and the elimination of annual participant limits, making the scheme available to more Australians than ever before.

More Homes on the Way for First-Time Buyers

According to CoreLogic, while government incentives for first home buyers can provide a short-term boost, they often do little to solve long-term affordability challenges. In some cases, they may even drive prices higher by increasing demand without addressing the supply side of the equation.

To help rebalance the market, Labor has committed to a $10 billion investment to build up to 100,000 new homes specifically allocated for first home buyers . This move is designed to directly increase housing stock rather than simply fuelling competition for existing properties.

Independent modelling by the Grattan Institute indicates that if all 100,000 planned homes are built, property prices could fall by as much as 2.5 % . This potential decrease may help counteract the price pressures expected from the broader reach of the recently expanded Home Guarantee Scheme.

Help to Buy: Shared Equity Scheme Still in the Works

The Albanese government remains committed to launching its Help to Buy initiative, a shared equity program aimed at easing the burden for first home buyers.

Under the scheme, the federal government would contribute up to 40% of a property’s purchase price, meaning buyers could enter the market with as little as a 2 % deposit.

Although part of Labor’s 2022 election promises , the rollout has been slower than expected. This delay is largely due to the need for state and territory governments to pass individual enabling legislation before the program can be implemented in each jurisdiction.

For now, it's a matter of keeping an eye on local developments to find out when the scheme will officially launch in your area. Once operational, it’s expected to become a game-changer for many Australians looking to buy their first home with a significantly lower upfront financial commitment.

Cheaper Solar Batteries on the Horizon for Homeowners

Although about one in three Australian households have embraced rooftop solar, only one in forty have added a battery system to store that energy.

That could soon change. Starting 1 July 2025, eligible homeowners can access the federal government’s Cheaper Home Batteries Program , designed to lower the financial barrier to battery installation.

The program aims to slash battery costs by roughly 30 %, delivering an average saving of around $4,000 per unit. By making energy storage more affordable, the initiative encourages households to maximise their solar usage, store excess energy for peak times, and rely less on the grid.

Government forecasts suggest that households with existing rooftop solar could save up to $1,100 a year on electricity bills once a battery system is in place.

Make the Most of Sustainability Incentives With Osinski Finance

New and upcoming government programs are opening doors for homeowners and buyers. But figuring out which ones apply to your situation isn’t always straightforward.

Whether you’re looking to improve your home’s energy efficiency or planning to buy your first property, the right advice can make all the difference.

At Osinski Finance , we help Australians understand and access financial solutions that suit their needs. We offer home loans tailored to your budget and goals, provide expert guidance for buying your first home , and support refinancing your current mortgage to help you secure a better deal.

Our team will work with you to build a funding strategy that aligns with your long-term financial plans. Contact us today to see how these programs could work for you and take control of your next property decision.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Myth Busting: Does Paying Weekly Help You Pay Off an Offset Loan Faster?

Wed, 07 May 2025 22:12:29 GMT

There’s a widespread myth in the home loan world: switching from monthly to weekly repayments will dramatically speed up the payoff of your mortgage, especially when you have an offset account.

Let’s break that down. While paying more often can make a difference with a standard loan, the strategy plays out quite differently when working with an offset account. The real breakthrough isn’t how frequently you pay, it’s how much money you keep sitting in your offset account.

Why Do People Think Weekly Payments Help?

The thinking goes like this: If you pay half your monthly repayment every fortnight , or a quarter each week, you increase your payment frequency. Over a year, this adds up to the equivalent of 13 full payments instead of 12. That extra repayment gets applied directly to your loan balance, reducing interest and helping you pay it off sooner.

This tactic works well for traditional home loans because it subtly increases the amount you contribute annually without feeling like a major financial strain.

But offset loans are a different story.

Offset Loans Work Differently

Offset accounts are effectively transaction accounts connected to your home loan. The balance in your offset account is subtracted from your loan principal when calculating loan interest , usually daily.

So, if you have a $500,000 mortgage and $20,000 in your offset account, your lender only charges interest on $480,000. That’s $20,000 working in your favour every single day it sits there.

Even better: because you’re being charged less interest, more of your regular loan repayment goes toward reducing the principal rather than just covering the interest. This adds up over time and helps you pay off your debt sooner.

The Real Key to Paying Less Interest

If you’re serious about using your offset account to cut years off your loan, the repayment schedule isn’t your biggest priority.

What matters most? Keep as much money in your offset account for as long as possible.

Some lenders even allow multiple offset accounts linked to the same loan, which can help you structure your savings more strategically without compromising your interest-saving potential.

The logic is simple: the higher your offset account balance and the longer it stays there, the less interest you pay. The timing of your loan repayments becomes much less significant by comparison.

Want to Use an Offset Account Smarter?

Not all offset loans are created equal. Some let you link just one offset account; others allow multiple. Some include debit cards, while others may have transaction limits or restrictions on accessing funds.

If you’re unsure which type of offset loan is best for your situation or how to set up your finances to get the most benefit, we’re here to help.

Partner With Osinski Finance to Maximise Your Home Loan Strategy

At Osinski Finance , we specialise in helping homeowners and investors navigate the ins and outs of offset loans, loan structures, and repayment strategies. Whether buying your first home or refinancing an existing loan , we’ll help ensure your funds are used effectively.

Reach out today to explore your options, review your current loan, or get expert advice tailored to your financial goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Could US Tariffs Mean Good News for Aussie Homeowners?

Wed, 30 Apr 2025 22:36:50 GMT

It’s not often that global trade tensions bring a silver lining, but for Australian borrowers, a surprising upside might be just around the corner.

The big buzz this month? Donald Trump’s latest tariff moves, announced on 2 April, have made waves across international headlines.

And it’s not just political pundits taking notice, markets are feeling the pressure too, as fears of a US economic slowdown and growing uncertainty ripple around the globe .

Yet, for Aussie homeowners, there might be a hidden advantage to all this upheaval: lower interest rates .

In fact, Australia’s four major banks are all forecasting a series of rate cuts, and they might arrive sooner than expected. Here’s a closer look at what’s shaping up.

Major Banks tip the cash rate to fall to 3.35%

First up, NAB is expecting the Reserve Bank of Australia (RBA) to move swiftly. Their outlook points to a 0.5% rate cut in May , followed by a series of 0.25% cuts in July, August, November, and even into February 2026.

ANZ has a slightly different but still dovish take, predicting a 0.25% cut in May , and two more 0.25% cuts in July and August.

If these forecasts hold true, we could see the cash rate slide down to 3.35% by August, a notable drop from the current 4.1%.

Meanwhile, Westpac is forecasting three further 0.25% cuts throughout 2025.

And over at CommBank, the economists believe the RBA could slash rates by 0.75% by the end of the year. They’re even suggesting that a May rate cut is practically a sure thing , pending the latest inflation data.

Far from a done deal

While it’s great to see the big banks getting optimistic, nothing’s guaranteed yet.

The RBA calls the shots on interest rates, and right now, they’re staying tight-lipped.

At their last meeting on April 15, the RBA kept the cash rate steady. They made it clear they want to see how the US tariff drama plays out and, more importantly, what’s happening with inflation, before making any moves.

We’ll get a better idea when the next round of inflation figures drops on 30 April, just ahead of the RBA’s next meeting on 19-20 May.

So, for now, it’s a bit of a waiting game.

Potential price hikes for new builds

One potential downside of US tariffs is their impact on the cost of building materials.

If Australia experiences higher prices for construction materials, we could see an increase in the cost of new home builds and renovations .

So, if you're planning a major construction project soon, it’s a good idea to talk to us about your borrowing capacity.

Could you lock in a rate cut now?

While the major banks forecast rate cuts shortly, you don’t have to wait for those to start saving. Many lenders are already offering home loan rates starting at 5% , creating an excellent opportunity to refinance your home loan now and lower your repayments.

Refinancing could also give you access to better loan features, offering more flexibility and control over your mortgage. If you’ve been considering a change, now might be the perfect time to act.

At Osinski Finance , we specialise in helping homeowners like you secure better deals, whether you’re refinancing , buying a new property , or making sure your current loan is still the best fit.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Election 2025 Could Open New Doors for First Home Buyers?

Wed, 23 Apr 2025 21:38:19 GMT

With Australians heading to the polls on May 3, housing affordability is front and centre, and both major parties are zeroing in on first home buyers in their election pitches.

The message is loud and clear: owning your first home is tougher, and both Labor and the Coalition say they’ve got a plan to fix it.

But how do their plans stack up? And what could it mean for you if you're hoping to get your foot in the property market ?

Let’s break it down.

Labor’s Vision: More homes, fewer barriers

Housing demand is expected to outstrip supply by 163,400 dwellings over the next seven years . Labor’s answer? Build more homes.

They’re promising a $10 billion investment to construct up to 100,000 new homes dedicated solely to first home buyers . That’s a bold move, aimed squarely at long-term supply.

Labor also wants to supercharge the First Home Guarantee scheme, which lets first home buyers purchase a property with just a 5% deposit and no lenders' mortgage insurance (LMI)—a massive cost saver.

Currently, there's an income cap to access the scheme. But under Labor’s plan, that cap would be scrapped, opening up access to buyers of all income levels. They’re also planning to lift the property price caps , so buyers aren’t as restricted by location or property type.

Another major promise is the expansion of Labor’s Help to Buy scheme, which allows the government to chip in up to 40% of the purchase price. You’d then have the option to buy out the government’s share later.

The Coalition’s Offer– a tax deduction on home loan interest

The Coalition’s focus is different. Rather than helping with deposits or supply, they’re offering tax perks and flexibility for first home buyers .

Their headline policy? A new First Home Buyer Mortgage Deductibility scheme.

This would allow first home buyers to claim their mortgage interest as a tax deduction —but only under certain conditions:

The property must be newly built or under construction.
The deduction applies to the first $650,000 of the loan.
It’s limited to the first five years of the loan term.
And it's only available to individuals earning up to $175,000, or couples earning up to $250,000.

Like Labor, the Coalition is also planning to tweak the First Home Guarantee scheme, increasing both the income eligibility and property price thresholds.

But they’re going a step further by removing the annual cap on the number of people who can access the scheme.

Finally, one of their more eye-catching proposals is letting first home buyers tap into their superannuation. Up to $50,000 could be withdrawn and put toward a home deposit—but that amount must be paid back into your superannuation account when you eventually sell the property.

What does this mean for you?

No matter which party wins the election, some big changes are coming for first home buyers.

But with so many schemes, limits, and conditions to consider, it helps to have expert guidance on your side.

That’s where Osinski Finance can help.

Whether you're looking into becoming a first home buyer exploring low deposit home loans , or considering refinancing your home loan , we’re here to guide you through it all with personalised advice and support.

Get in touch with us today and let’s explore how you can take that first step toward home ownership, whoever takes office after May 3.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Australian Homeowners Have Gained $230,000 in Equity Over the Past Five Years

Wed, 16 Apr 2025 23:11:16 GMT

Property owners across the country have quietly built up a significant windfall. On average, homeowners have seen the value of their properties increase by $46,000 each year since 2020. Over five years, that adds up to a substantial $230,000 gain.

In this article, we’ll look at how that rise in home equity came to be, how it compares to previous market surges, and how you might be able to make practical use of that increased value.

What’s Happened Since 2020

A lot has changed over the past five years. From a global pandemic and political shifts to major weather events across Australia, the world has been anything but predictable.

Amid all that change, there’s a good chance your personal situation has evolved too. You might have switched jobs, welcomed new family members, or made lifestyle adjustments.

Throughout it all, your property’s value may have been steadily climbing in the background.

A 39% Rise in National Home Values

New figures from CoreLogic reveal that property prices across the country have increased by 39.1% over the past five years . That brings the national median home value to $820,331 .

In dollar terms, this translates to an average increase of $230,000 in just half a decade.

What makes this gain interesting is not just the percentage increase, but how it stacks up in actual value. While 39% might seem modest compared to previous market booms, the dollar amount is far more significant.

Take Sydney, for example. Between 1998 and 2003, home prices jumped by 78%. Melbourne saw a 79.5% rise in the early 2000s. Other capital cities like Brisbane, Perth, Adelaide, Hobart, and Canberra experienced their biggest five-year growth periods in the mid-2000s, with values roughly doubling.

But property prices were lower back then. So while percentage gains were higher, the actual increase in dollar terms was not as strong as what we’re seeing now. According to CoreLogic, the average increase during the early 2000s peak was around $140,000. That’s nearly $90,000 less than the current average.

How to Use That Equity

That $230,000 gain doesn’t have to just sit on paper. It represents a real opportunity.

If you owe less on your mortgage than what your home is now worth, you’ve built up equity. This gap between your loan balance and your home’s market value can be used as a financial tool.

Many homeowners tap into their equity for all sorts of reasons. It might be to renovate, upgrade the kitchen or bathroom, invest in another property, refinance to a more competitive rate, or even fund a family holiday. The key is to make sure you're using it wisely, with a strategy that supports your long-term goals.

Want to Explore Your Options?

If you're curious about how much equity you've built up or you're exploring what it could help you achieve, a quick conversation can make all the difference.

Osinski Finance helps Australians tap into the potential of their property by offering a full range of services, including home loans , refinancing , investment property finance , renovation funding, and debt consolidation. We’ll walk you through the numbers and help you explore tailored options based on your goals.

Reach out today and see what your equity could do for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why Half of Aussie Households Are Eyeing a Refinance This Year

Wed, 09 Apr 2025 21:56:09 GMT

The Reserve Bank of Australia may have held steady in April, but many homeowners aren't sitting around waiting for the next move. Instead, they're taking charge by refinancing to lower their interest costs.

When rates drop, people start paying attention.

February’s 0.25% rate cut , for instance, gave consumer confidence a solid lift, reaching its highest point in three years .

But with no change to the cash rate this April and no scheduled decision until 20 May, a growing number of borrowers are acting on their own terms. Rather than waiting for a signal, they’re switching to new lenders or renegotiating their current deals to score a better rate.

A recent Canstar survey shows 55 percent of variable-rate borrowers are thinking about refinancing . Even more telling, 14 percent have already done so in the last 12 months.

The Appeal of a Rate That Starts with a '5'

When was the last time you reviewed your mortgage?

You may be paying more than you should. According to Finder, both variable and fixed mortgage rates are now at their lowest since early 2023 , and sub-6 percent deals are widespread.

More than 30 lenders are currently offering at least one variable rate below 5.75 percent, according to Canstar .

Still, the average owner-occupier variable rate sits at about 6.44 percent, based on Mozo data .

That suggests a lot of households could be spending hundreds more each month than necessary.

Fixed Rates Are Trending Down Too

It’s not only variable rates that are showing improvement.

Mozo reports that 39 lenders reduced some or all of their fixed rate products in March.

And locking in doesn’t have to mean a long commitment. Several one-year fixed rate loans are especially competitive right now.

So how much can a refinance actually save you?

Over $12,000 in Potential Savings Over Two Years

Canstar’s latest analysis breaks it down . A homeowner on a 6.86 percent variable rate who switches to a 5.74 percent rate on a $600,000 mortgage could save more than $12,000 in interest over two years.

Even if your current rate is a more modest 6.06 percent, refinancing to 5.74 percent still translates to nearly $3,000 saved over two years.

Of course, your actual savings will depend on your specific loan size and interest rate. But this is a solid reminder of why it’s worth exploring your options.

Why Wait for the RBA to Make a Move?

Everyone could use a smaller mortgage repayment. But waiting around for an official rate cut could mean missing out on savings that are already available.

Refinancing is not just about locking in a lower rate. It can also open up new features or give you access to home equity that you can use toward goals like renovating, investing in property, or consolidating debt.

If it's been a while since you last refinanced, this could be the perfect time to reassess your loan.

Osinski Finance Can Help You Explore Better Home Loan Options

At Osinski Finance , we’re seeing what many homeowners already know: you don’t need to wait for the Reserve Bank to act before taking control of your mortgage.

With interest rates softening and lenders offering variable deals starting below 5.75%, refinancing has become a smart move for those wanting to lower repayments, unlock equity, or access more suitable loan features. More than half of variable-rate borrowers are exploring their options, and many have already made the switch.

If it’s been a while since you reviewed your home loan , now could be the right time. Refinancing could help you save thousands in interest and set you up with a loan that better fits your current needs.

Reach out to us and we’ll help you map out your next move with clear direction and assurance.

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Sounds of Silence: The Hidden Cost of Transport Noise on Property Values

Wed, 02 Apr 2025 22:20:34 GMT

When people go house-hunting, one of the most common priorities is proximity to public transport. It’s often listed as a major selling point in real estate ads. But just how much does being too close to a busy road, railway or flight path affect a property’s price tag ?

It turns out, quite a bit.

New data from PropTrack and Ambient Maps sheds light on how ambient noise from transport infrastructure can influence property values and the findings might surprise you.

The Price of Noise

The study examined the effects of environmental noise from roads, trains and aircraft across Victoria. Using real estate sales data collected over five months, researchers compared noise exposure levels to nearby property sale prices.

Here’s what they found for every 10 decibels (dBA) increase in sound:

Road traffic : Property values dropped by around 6% on average.

Rail noise : Homes near train lines saw a 4% average dip in value, even when factoring in the convenience of public transport access.

Aircraft noise : The steepest decline—between 6% and 9% —was tied to air traffic. Given that noise levels outside a flight path can be up to 20 dBA lower than inside it, the price difference between similar properties can be significant.

To put it in perspective, a 5% reduction on a $1 million home equates to $50,000. That’s a big cut to swallow just for a bit of extra background noise.

What Do 10 dBA Increments Actually Sound Like?

The report includes a useful chart (see page 8) that breaks down how each 10 dBA increase translates into everyday scenarios. If you can’t access the visual, here’s a summary:

45 dBA : The kind of peace you’ll find in a quiet cul-de-sac, far from any bus routes or through traffic.

55 dBA : Typical of a home on a quiet suburban street , where only occasional cars go by.

65 dBA : A main road with regular traffic and public transport like buses or trams nearby.

75 dBA : A major arterial route, often with six lanes and heavy use by trucks, buses and cars.

The difference between 45 dBA and 75 dBA is substantial. And it’s not just about daily comfort—it has clear financial implications, too.

The Upside of a Noisier Location

While higher noise levels can take a toll on resale value, there can be a silver lining. Homes closer to major roads, train stations or flight paths often come at a more accessible price point. That could allow first-home buyers or families to purchase a property that meets their needs sooner than they otherwise might.

There are also practical ways to reduce the impact of outside noise. Solutions like double-glazed windows, solid core doors, acoustic insulation, heavy curtains, and soundproof panelling can all help to create a quieter living space indoors. Sealing up gaps and using proper materials can make a noticeable difference.

Don’t Let a Buzzword Lead to Buyer’s Remorse

“Location, location, location” is a mantra in real estate, but it’s not the whole story. If transport noise is part of the picture, it’s worth considering how that might influence not just your quality of life, but the long-term value of your investment.

At Osinski Finance , we guide you through every stage of your property journey. Whether you're buying your first home , refinancing to lower your repayments, or securing a competitive loan for your next purchase, our expert team provides tailored advice and seamless support from start to finish.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 Fun (and Budget-Friendly) Easter Staycation Ideas

Wed, 19 Mar 2025 22:24:38 GMT

5 Fun (and Budget-Friendly) Easter Staycation Ideas

Easter isn’t just about chocolate eggs and hot cross buns – in 2025, it brings something a bit more exciting: a rare holiday overlap that could land you a 10-day break with just three days of annual leave.

Yep, you read that right. With Good Friday falling on 18 April and Anzac Day rounding out the following week on Friday 25, it’s a golden opportunity for a well-earned rest – even if you’re not planning to go away.

This Easter-Anzac combo is a bit of a unicorn in the calendar. According to historic data, it’s only occurred 17 times in the past 100 years – and just five times since 2000. So if you’ve been craving a breather, this might be your moment.

Can’t get away? No worries. Whether it’s budget constraints or pets that need minding, a staycation can be just as fulfilling – and a whole lot easier on your wallet. Here’s how to turn your home into your ultimate holiday haven without touching your savings .

1. Set the Scene at Home

Think of your home as a mini resort – and you’re the VIP guest. Start by giving everything a proper tidy, changing the sheets, fluffing up the pillows, and replacing bath towels with fresh ones. Put away anything that reminds you of your usual routine – think laundry baskets, tax paperwork or that lawn mower staring you down from the shed.

It might not sound glamorous, but the more you can make your space feel peaceful and guest-ready, the more it’ll feel like a true escape.

2. Treat Yourself to Food You Love

Great holidays usually involve great food – and your staycation deserves the same. This is the perfect time to splurge on those treats you don’t normally allow into your trolley. That fancy sourdough? Artisan cheese? A cheeky bottle of something nice? Pop it in the basket.

Or, if cooking’s your thing, try something new you’ve always wanted to attempt. A fun one to try is classic breakfast crepes – they’re easy and affordable, and flipping them usually gets a few laughs from the family.

3. Explore (and Support) Your Local Hidden Gems

How often do you explore your own neighbourhood like a visitor? Chances are there’s a cute café, a quirky local gallery or a scenic walking trail just around the corner that you’ve never gotten around to visiting.

Why not use this break to check out what’s nearby? Whether it’s jumping on the bike, booking a yoga class or just strolling around a new suburb, you’ll probably discover something unexpected – and support local businesses while you’re at it.

4. Camp Out at Home

For families especially, backyard camping is a hit – and a whole lot more convenient than packing up the car for a remote campsite. Pitch a tent, roll out the sleeping bags, and set up a mini firepit (you can grab one from Bunnings) for some toasted marshmallows and stargazing.

If you’re living in an apartment , build an epic indoor campsite with sheets and pillows. Drape a blanket fort, break out the torch lights, and eat dinner picnic-style on the floor. It’s a playful way to mix things up – and make some fun family memories.

5. Be a Tourist in Your Own City

You know those iconic sights that tourists always flock to… but locals rarely visit? This is the time to finally tick them off your list. Museums, historic buildings, street art trails, botanical gardens – most offer free or low-cost entry, and some even run special Easter programs or exhibitions.

Search “What’s on in [your suburb or city]” to uncover current events, pop-ups, and local happenings. And don’t forget to grab a cheeky souvenir – even if it’s just a novelty mug or fridge magnet to remember your hometown “holiday.”

Enjoy the Break Without Breaking the Bank

Your home can be more than just your everyday base – it can be the centre of a creative, restful, and memory-filled staycation. The key is to treat it like a destination: plan ahead, step out of your usual routine, and give yourself permission to fully unwind.

At Osinski Finance , we’re all about helping you get the most out of your home – not just through smart home loan solutions , but with flexible finance options like personal loans too. Whether you’re sprucing up your space for a staycation, planning a backyard makeover, or just want a bit of financial breathing room this Easter, we can help make it happen.

Get in touch with Osinski Finance today ! Let’s chat about how to make your home (and your money) work harder for your lifestyle.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Budget-Friendly Renovations to Keep Your Home Cosy This Autumn

Wed, 12 Mar 2025 22:09:10 GMT

Summer’s over, and autumn is here with its crisp air and cooler days. Now’s the perfect time to get your home ready for winter. You don’t need to spend a lot to keep your place warm and comfy without driving up your energy bills.

As we trade in beach days for cosy nights in sweaters, it’s a great moment to focus on making your home winter-ready.

A few simple, budget-friendly renovations can help you create a warm, snug environment that keeps your heating costs down.

Here are three easy ideas to get started:

1. Block the Cold and Retain the Heat

Did you know that up to 25% of heat los s in winter can come from draughts, or “air leakage”? It's a small thing, but fixing those cold air leaks can have a significant impact on the warmth of your home.

One of the most cost-effective ways to seal in heat is to check for gaps around your doors and windows. You can start by installing door seals to keep chilly drafts at bay.

Energy Australia recommends adding door seals and using waterproof caulking to seal up gaps around windows and skirting boards.

2. Reassess Your Heating Options

Once your home is sealed up against draughts, it’s a good time to rethink your heating setup.

Heating and cooling are the biggest energy users in most Aussie homes , making up around 40% of total energy use—so choosing the right system can really save you money.

If you’re still using that old electric bar heater, it might be time for an upgrade. According to YourHome, reverse-cycle air-conditioners are the most energy-efficient option for both heating and cooling, no matter the energy source.

Even an air condition model with just 2 or 3 energy stars can cost less to run than many other heating appliances.

3. Insulate Your Home for All-Year Comfort

We’re all familiar with the concept of bundling up in layers of clothing to stay warm during winter. Well, the same concept applies to your home. Adding insulation is like wrapping your house in a cosy blanket—helping it stay warm in winter and cool in summer.

According to consumer group CHOICE , about one-third of a home’s heat can be lost through the roof if it’s not insulated. If you're working with a tight budget, insulating the roof cavity is a good first step.

However, if you have a bit more room to manoeuvre, consider installing insulation on your floors, walls, and ceilings to achieve even greater energy savings.

How to Manage the Costs of These Improvements

While small home improvements can be quite affordable, sometimes you might need to invest in larger-scale renovations to make a noticeable difference. If that’s the case, don’t worry—you may already have access to the funds you need through your current home loan .

Refinancing your mortgage could be another way to free up equity and make your renovation goals more achievable. Or, if you’re after something more flexible, a personal loan might be the right fit for smaller updates or quick fixes.

Alternatively, options like a construction loan or renovation loan could be a great way to finance more significant upgrades. At Osinski Finance , we specialise in helping clients navigate these financing options to ensure that your dream home is within reach.

Whether you need a little extra funding for a new heater or are planning a full-scale renovation, we’re here to help you make your home as cosy as possible this winter.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Did We Just Witness the Shortest Property Downturn Ever?

Wed, 05 Mar 2025 22:22:37 GMT

Australia’s so-called property downturn came in the blink of an eye. Home prices are back on the rise, leaving many wondering—was this even a downturn at all? Let’s break down what happened and why now might be a smart time to buy.

Well, that didn’t last long.

In early January, CoreLogic declared that Australia’s housing market had entered a downturn following a slight decline in property values: -0.01% in November, -0.1% in December, and -0.03% in January.

Yet, by early March—just two months later—CoreLogic reported, “ Housing downturn reverses in February .”

So, was this the shortest property downturn on record, or just a brief market correction?

The Rate Cut That Shifted Sentiment

At the start of the year, there were clear signs that the property market was cooling. Homes were taking longer to sell, listings were increasing, and buyer demand was easing. CoreLogic had every reason to suggest the market’s growth cycle had come to an end .

Then, February flipped the script.

Expectations of a rate cut by the Reserve Bank of Australia (RBA) strengthened, injecting a wave of optimism into the market. As buyer confidence rebounded , auction clearance rates improved and the pace of new property listings slowed.

When the RBA ultimately announced a 0.25% rate cut , it provided the final push needed to lift the market, reversing the previous three months of price declines and leading to a 0.3% increase in February home values .

What’s Next for Home Prices?

REA Group reports that February’s rate cut didn’t just boost buyer sentiment—it also increased borrowing power and improved affordability. With interest rates easing, buyers who had previously hit pause on purchasing are now stepping back into the market.

Will this translate to further price increases? That largely depends on interest rates moving forward.

The RBA has indicated it’s not rushing into further cuts , but market analysts suggest otherwise:

NAB anticipates four more rate cuts over the next 12 months.
Westpac expects rates to drop an additional 0.75% this year , predicting a 3% increase in home prices in 2025 and a 7% rise the following year.
AMP suggests Australia’s ongoing housing shortage could push prices up by 3% this year alone .

Is Now the Right Time to Buy?

While fear of missing out (FOMO) shouldn’t drive home-buying decisions, the past few months highlight how quickly market downturns can reverse. Waiting for prices to fall further could mean paying more down the road.

If you’re considering buying, now is the time to assess your home loan options. At Osinski Finance , we specialise in helping buyers navigate the mortgage process with confidence. Whether you're a first-time buyer , upgrading to your next home, or refinancing for a better rate.

Reach out today , and let’s get started on securing your dream home.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Big Changes Coming to Mortgage Rules for University Graduates

Wed, 26 Feb 2025 22:00:23 GMT

There’s good news on the horizon for the three million Australians carrying student debt. The federal government is moving towards a significant change that could boost their borrowing power when applying for a home loan .

A university degree is a great investment, equipping graduates with skills and qualifications that often lead to higher earnings over time. However, the downside for many is the lingering HECS/HELP debt, which can impact financial decisions long after graduation.

But that could soon change, as the government is pushing for lending rules to be adjusted—potentially making it easier for graduates to enter the property market .

How HECS/HELP Debt Affects Home Loan Applications

Currently, around three million Australians have an outstanding HECS/HELP balance. Unlike traditional loans, HECS/HELP debts don’t accrue interest but are indexed annually, typically in line with either inflation or wage growth . Repayments only begin once a graduate earns over $54,435 per year (as of 2024-25), starting at just 1% annually.

That may sound manageable, but university fees have increased in recent years , and so has the indexation rate —both of which have contributed to higher average student debts. Meanwhile, house prices have soared, making it harder than ever for young graduates to step onto the property ladder.

At present, banks assess HECS/HELP debts much like any other liability—such as credit card balances or car loans—when determining how much an applicant can borrow. This significantly reduces a graduate’s borrowing capacity.

Proposed Lending Rule Changes

Recognising the hurdles faced by young buyers, Federal Treasurer Jim Chalmers has urged the Australian Prudential Regulation Authority (APRA) to update its guidelines and remove HECS/HELP debts from debt-to-income reporting. This change would mean that student debt would no longer weigh down an applicant’s borrowing capacity.

Chalmers described the proposed update as a “commonsense” move, explaining, “People with a HECS/HELP debt should be treated fairly when they want to buy a house, and we’re working with the regulators to make sure they are.”

The Australian Banking Association has also voiced its support, stating that unlocking more credit for prospective homeowners could help many Australians achieve their dream of home ownership. With APRA and ASIC on board, it’s expected that these changes will be implemented soon.

What This Means for You

If you have a HECS/HELP debt, this shift could significantly improve your borrowing power. And even if the changes take time to be fully rolled out, there are still options available to help you secure a home loan.

At Osinski Finance , we specialise in finding the best lending solutions for university graduates and first-time buyers . Our team is here to help you understand your borrowing power and navigate the home loan process with ease .

Reach out today to explore your options and take the next step towards home ownership.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

RBA announces first cash rate cut since 2020 — What does it mean for your mortgage?

dave@99content.co (Dave Barbeler) — Tue, 18 Feb 2025 03:54:32 GMT

At last, some relief for Aussie borrowers. The Reserve Bank of Australia (RBA) has officially cut the cash rate by 25 basis points, bringing it down to 4.10%.

If you’re wondering how this might affect your mortgage repayments , or whether more rate cuts are on the horizon, let’s break it all down.

Why this rate cut matters

This is the first time the RBA has reduced the cash rate since November 2020, when rates were slashed to a record-low 0.10% as part of the emergency COVID-19 response.

Since then, interest rates have steadily climbed, with 13 consecutive rate hikes aimed at slowing down inflation.

Now, inflation is easing faster than expected. Recent data showed underlying inflation for the December quarter was sitting at 3.2%, which gave the RBA enough confidence to shift gears.

RBA Governor Michele Bullock explained the decision, saying:

“There has also been continued subdued growth in private demand and wage pressures have eased. These factors give the Board more confidence that inflation is moving sustainably towards the midpoint of the 2–3 per cent target range.”

What will this mean for your home loan repayments?

If you’re on a variable-rate mortgage , there’s a good chance your lender will pass this cut on by lowering your interest rate. This could reduce your repayments and give your household budget some much-needed breathing space.

To give you an idea of what that might look like, here are some quick calculations:

$500,000 loan : repayments could drop by about $77 per month (that’s around $924 a year )
$750,000 loan : repayments could decrease by about $115 per month , saving roughly $1380 per year
$1 million loan : repayments could go down by about $154 per month , which adds up to $1848 per year

Of course, this assumes your lender passes on the full 25 basis point cut. After so many rate hikes, many borrowers will be watching closely to see if banks do the right thing. With a federal election not too far off, there will also be public and government pressure for banks to play fair.

Will your bank lower your repayments automatically?

Even if your lender reduces your interest rate, they may not automatically lower your actual repayment amount.

Some lenders leave repayments at the old, higher rate, which means more of your money goes towards paying off the loan’s principal, instead of interest.

That’s not a bad outcome if you want to get ahead on your mortgage. But if your household budget is tight and you need the extra cash flow, you can ask your lender to reduce your repayments to reflect the lower rate.

If you’re unsure how your lender handles these changes, we can help you check in a few days once lenders have had time to respond to the RBA’s announcement.

Will rates drop further in 2025?

There are seven more RBA meetings scheduled this year, so the question now is whether this cut is the first of many.

In its statement, the RBA didn’t give a clear indication of what’s to come, but the big banks have their own forecasts:

NAB expects the cash rate to drop to 3.10% by February 2026 , which would mean four more cuts
CBA predicts the cash rate will fall to 3.35% by December 2025 (that’s three more cuts )
Westpac also expects the rate to hit 3.35% by the end of 2025
ANZ is more conservative, forecasting just one more cut , bringing the rate to 3.85% by August 2025

Still feeling the pressure? Let’s review your loan

This rate cut will bring some relief, but it’s no secret that many households are still struggling with rising living costs and higher-than-expected mortgage repayments.

If it’s been a while since your last home loan review, now is the perfect time to check whether you’re still on the best possible deal.

At Osinski Finance , we help homeowners like you explore all your home loan options — from renegotiating with your existing lender to refinancing with a better deal or even consolidating multiple debts into one manageable loan.

We also offer an interest rate tracker service, which keeps an eye on market changes and alerts you if better opportunities become available. That way, you’re always in the loop and never miss a chance to save.

Every household is different, so we’ll work with you to create a plan tailored to your needs.

Get in touch with us today , and let’s make sure your mortgage is working for you, not the other way around.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How 193,000 Aussies Got into Their First Home Sooner

Wed, 12 Feb 2025 22:13:47 GMT

If buying your first home feels like an impossible dream, there’s one scheme you need to know about — the Home Guarantee Scheme (HGS) . It’s already helped more than 193,000 Australians get into the property market since 2020, and it could help fast-track your home ownership journey too.

Here’s how it works, and why it’s worth a closer look.

The Struggle to Save a Deposit

For most first home buyers, saving the traditional 20% deposit is the biggest hurdle — especially with today’s soaring living costs.

In fact, research from CoreLogic shows that, on average, it now takes over 10 years to save a first home deposit.

That’s where the Home Guarantee Scheme comes in. With this scheme, you could buy your first home with just a 5% deposit , without needing to pay lenders mortgage insurance (LMI).

It’s no surprise that 193,000 first home buyers have jumped on board since the scheme kicked off.

What Exactly is the Home Guarantee Scheme?

Unlike a cash grant, like the First Home Owner Grant , the HGS works a bit differently. Instead of giving you money, the federal government guarantees part of your loan.

This opens up two key advantages for first home buyers:

Buy with a smaller deposit: Participating lenders can approve home loans with just a 5% deposit under the HGS.
Avoid lenders mortgage insurance: Normally, if your deposit is under 20%, you’d have to pay LMI — which can add up to tens of thousands of dollars. But under the HGS, the government acts as guarantor, so you’re off the hook for LMI.

Three Different Types of Guarantees

There’s not just one, but three different guarantees under the HGS, tailored to suit different buyer groups.

1. First Home Guarantee

The First Home Guarantee is designed specifically for first home buyers, giving you a faster way into the market.

35,000 places are available for the 2024-25 financial year.

2. Regional First Home Buyer Guarantee

Buying in a regional area ? The Regional First Home Buyer Guarantee is aimed at helping regional first home buyers get a foot in the door — but there are only 10,000 places available this year, so you’ll want to move quickly.

3. Family Home Guarantee

If you’re a single parent , the Family Home Guarantee offers even more flexibility.

With just a 2% deposit, eligible applicants (including those who’ve owned property before) can buy a home — again, without needing to pay LMI.

There are only 5,000 places for the 2024-25 financial year, so this one’s also in high demand.

Why the 5% Deposit Scheme is Gaining Popularity

Five years ago, only about 1 in 10 first home buyers used the HGS. Today, it’s closer to 1 in 3 .

Of course, rising property prices, higher interest rates, and cost of living pressures all play a part. But the scheme’s recent eligibility expansion is a game-changer too.

Now, you can apply if you’re buying with a sibling, friend or other family member, or you’ve owned property before (but not in the last 10 years).

What’s the Catch?

Like any government scheme, there are some eligibility criteria to meet.

Your income needs to fall within the limits set by the scheme.
The property price you’re looking at needs to sit below the price caps for your area.
Plus, not all lenders participate, so your lender options could be narrower than usual.

Let Osinski Finance Help You Make It Happen

We’d love to help you determine whether you qualify for the Home Guarantee Scheme or learn how to get into your first home faster.

At Osinski Finance , we specialise in helping first home buyers understand their options and find the right lender to suit their situation. We’ll handle the paperwork, eligibility checks, and lender research, so you can focus on planning your move.

We also work with property investors looking to grow their portfolio, as well as homeowners who want to refinance their loan to get a better deal. Whatever your property goals, we’re here to make the finance side easy. Give us a call today!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

What Happens to Your Home Loan When Interest Rates Drop?

Wed, 05 Feb 2025 21:55:07 GMT

Exciting news for homeowners—many economists predict the Reserve Bank of Australia (RBA) will cut interest rates soon. If this happens, what does it mean for your home loan ? Here’s a detailed breakdown of what to expect if rates head south.

A Long-Awaited Rate Cut

The last time the RBA lowered rates was back in 2020 . Now, with growing speculation from major banks like NAB and Westpac , a 0.25% rate cut could be on the horizon when the RBA board meets on February 17-18.

Of course, nothing is guaranteed, but if the rate does drop, understanding how it affects your home loan is crucial.

What Happens to Your Home Loan Rate?

If you’re on a fixed-rate mortgage , your interest rate remains unchanged regardless of what happens to the cash rate. Your repayments stay the same until your fixed term ends. If your fixed period is nearing expiration, now is a great time to plan your next steps.

This is where things get interesting. A drop in the cash rate usually leads to a lower variable home loan rate . However, banks aren’t obligated to pass on the full cut.

In past instances , some lenders have only reduced rates partially. That said, with the current cost-of-living crisis, banks may be more inclined to pass on the full cut to avoid negative publicity.

Your lender will notify you of any changes to your rate after the RBA’s decision.

Will Your Repayments Go Down?

Not necessarily.

Some banks automatically lower repayments when interest rates fall, putting extra cash into your household budget. Others keep repayments the same, meaning more of your payment goes toward the principal, helping you pay off your loan faster.

If you prefer a lower repayment, check with your lender. Some may require you to request an adjustment.

How Much Could Your Repayments Decrease?

If the RBA cuts rates by 0.25%, here’s how much you might save on your mortgage:

$500,000 loan: About $77 less per month ($924 per year)
$750,000 loan: About $115 less per month ($1,380 per year)
$1 million loan: About $154 less per month ($1,848 per year)

Need a Home Loan Check-Up?

Even if a rate cut is on the horizon , many households are still struggling with high living costs. If you haven’t reviewed your home loan recently, now’s a good time to see if you can secure a better deal.

At Osinski Finance , we specialise in helping homeowners optimise their mortgage strategies . Whether it’s renegotiating with your current lender, refinancing for a lower rate, or exploring debt consolidation, we’ll tailor a plan to suit your financial goals .

Want to make sure you're getting the best deal? Contact us today and let’s explore your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The Top 5 Location Dealbreakers for Aussie Home Buyers

Wed, 29 Jan 2025 22:19:25 GMT

Ever come across a property that seems like an absolute steal and wondered, ‘What’s the catch?’ More often than not, a lower-than-expected price tag has a reason behind it. And while a less-than-ideal location might not be a deal breaker for you, it could make selling the home down the track a challenge.

A beautiful home, peaceful surroundings, and quiet neighbours—sounds perfect, right?

Well, maybe not if those quiet neighbours happen to be in a graveyard.

There’s truth in the saying: ‘You can renovate a home, but you can’t change the location.’

New research from Compare the Market has identified the top five location turn-offs for home buyers. While these factors might bring down the price, they could also cause headaches when it’s time to sell.

1. Close to a Tip

Landfills are a reality of modern life, but living near one? That’s another story.

Almost one in three Aussies rate proximity to a rubbish tip as their number one deterrent when choosing a place to buy or rent. It’s no surprise—unpleasant sights and smells aren’t exactly selling points for a property.

2. Next to an Airport

“Close to transport” is often an attractive selling feature.

But living under a flight path? That’s another matter entirely.

One in five buyers say aircraft noise is a deal breaker for them. While some might accept the trade-off for convenience, others would rather avoid the constant roar of jet engines overhead.

3. Overlooking a Graveyard

A home near a cemetery may offer peace and quiet—literally.

But for 16.5% of buyers, the idea of living next to a graveyard is unsettling. Whether due to superstition or simply a preference for livelier surroundings, many house hunters would rather steer clear.

4. Alongside a Highway

Living next to a busy highway means dealing with constant traffic noise, exhaust fumes, and the occasional siren blaring past at all hours.

For more than one in ten buyers, this level of disruption is a no-go. Even with soundproofing, some find the perpetual hum of traffic too much to tolerate.

5. Next to a Railway

A train line nearby might not bother most buyers, but for almost 7% of house hunters, it’s a hard pass.

The rumble of passing trains and potential safety concerns make railway-adjacent properties less appealing to certain buyers.

What’s on Your Location Blacklist?

What’s interesting about these results is that no single location issue is universally disliked.

Some buyers can’t stand airport noise, while others see it as an unavoidable part of city life. The key is to assess potential negatives and decide what trade-offs you’re willing to make.

If a location has drawbacks, it doesn’t necessarily mean you should walk away. You might use these factors as leverage in price negotiations. But if the property is ticking multiple dealbreaker boxes—say, sandwiched between a landfill and a motorway with planes flying overhead—it could be time to reconsider.

Of course, finding the right home often requires compromise. You might opt for a slightly smaller block or one less bedroom in exchange for a better location.

Let’s Find the Right Fit for You

Choosing the perfect location is a balancing act. But before you start making decisions, it’s important to understand what you can afford.

At Osinski Finance , we specialise in helping home buyers navigate their borrowing options with confidence. Whether you’re looking for your first home , an investment property , or a dream upgrade , we’ll work with you to secure the right home loan for your needs.

Get in touch today to discover your borrowing capacity and take the next step toward homeownership.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to Fund Your Home Renovation in 2025

Wed, 22 Jan 2025 22:15:56 GMT

Dreaming of a refreshed bathroom, a modern kitchen, or a landscaped backyard in 2025?

Home renovations can enhance both your lifestyle and property value, but funding them requires careful planning. Fortunately, there are multiple financing options available to help bring your vision to life. Let’s explore some smart ways to finance your home improvements.

The Renovation Boom Continues

In the past five years, home renovations have surged in popularity across Australia, with interest continuing to grow.

According to the Housing Industry Association , high property values have boosted home equity, giving homeowners more financial confidence to invest in home upgrades. If you’re considering a renovation, now is the perfect time to explore your funding options.

Tap Into Your Offset Account or Redraw Facility

If you’ve been diligently contributing extra to your home loan, you may have funds available in an offset account or redraw facility. These funds can be used to finance your renovation without taking on new debt.

However, withdrawing from an offset or redraw account could impact your home loan’s interest savings. It’s important to evaluate the financial trade-offs before using these funds. Osinski Finance can help you crunch the numbers to make an informed decision.

Increase Your Existing Home Loan

A home loan top-up allows you to borrow additional funds against your existing loan if you have sufficient home equity . This can be a convenient way to access renovation funds without switching lenders.

Keep in mind that some lenders charge fees for loan top-ups, so be sure to check the costs involved before proceeding.

Refinance for Better Rates and Extra Funds

Refinancing your mortgage can be a strategic way to secure renovation funds, especially if your current loan no longer offers competitive rates or useful features. By refinancing , you may be able to tap into your home’s increased equity while also securing a lower interest rate or better loan terms.

Not only could this provide the funds you need for renovations, but it might also reduce your overall loan costs.

Consider a Construction Loan for Major Projects

If your renovation plans involve a significant extension or a knock-down-and-rebuild, a construction loan may be your best bet. These loans are designed specifically for building projects and release funds progressively as work is completed.

With a construction loan, you only pay interest on the funds drawn down, and during the building phase, repayments are often interest-only. Some lenders also offer pre-approval, giving you a clear budget before you engage a builder.

Find Your Renovation Finance Option with Osinski Finance

Before embarking on your 2025 renovation project, it’s crucial to understand how much you can afford and which financing option best suits your needs.

At Osinski Finance , we help homeowners make informed financial decisions, whether it's refinancing, securing a home loan , or obtaining a personal loan . Our expert advice is tailored to your unique financial situation, ensuring you find the right funding solution with confidence.

Contact us today , and we’ll work with you to find a renovation finance solution that fits your goals and budget, so you can start your home renovation with confidence!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Fixed vs. Variable Home Loan Rates: Which One is Right for You?

Wed, 15 Jan 2025 22:07:26 GMT

With speculation that interest rate cuts could be on the horizon in 2025, a variable-rate home loan might seem like an obvious choice. But before you make a decision, it’s worth considering the benefits of locking in a fixed rate, especially with some lenders currently offering lower fixed rates than their variable counterparts.

Home loans come in all shapes and sizes, but the choice between a fixed or variable rate is one of the most crucial decisions you’ll make. Here’s a deep dive into what each option entails so you can determine which is best for your financial situation.

Variable-Rate Home Loans: Flexibility with Market Fluctuations

A variable-rate home loan means your interest rate and monthly repayments can change with the market. Osinski Finance’s Interest Rate Tracker helps you monitor these changes and keep your rate competitive.

For instance, if the Reserve Bank of Australia (RBA) increases the official cash rate, your lender will likely follow suit, meaning higher repayments. On the flip side, if the cash rate drops, your variable interest rate should decrease as well, easing the financial burden on your monthly budget.

While this unpredictability can be a downside, variable-rate loans often come with greater flexibility and added features, such as:

Redraw facility: Access extra payments you’ve made if needed.
Offset account: Reduce the amount of interest you pay by linking your savings to your loan.
Extra repayments: Make additional payments without penalty to pay off your mortgage faster.

Fixed-Rate Home Loans: Stability and Predictability

Choosing a fixed-rate home loan means locking in your interest rate for a set period, typically between one and five years. This ensures that your repayments remain unchanged during the fixed term, making it easier to budget and plan for the future.

If interest rates rise, you’re in a winning position, as your repayments stay the same. However, if rates fall, you won’t benefit from lower repayments.

That said, modern fixed-rate loans often come with greater flexibility than in the past. Some lenders allow limited extra repayments, redraw facilities, or even offset accounts .

However, one significant consideration is break fees , which are charges that apply if you exit your fixed-rate loan early, such as refinancing to a lower rate before your fixed term ends. These fees can be costly, sometimes running into the tens of thousands, making it crucial to weigh your options carefully.

The Current Interest Rate Landscape

Here’s where things get interesting. Some lenders are currently offering fixed rates that are lower than their variable rates. This suggests that they anticipate future cash rate cuts from the RBA and are pricing their fixed-rate options accordingly.

For example, Macquarie Bank’s two-year fixed rate sits at 5.69%, significantly lower than its variable rate of 6.14%. If rate cuts do happen, locking in now could mean securing a competitive rate before variable rates potentially start falling.

However, forecasting future interest rate changes is always uncertain. The key is to assess whether the certainty of a fixed rate aligns with your long-term financial strategy.

A Split Loan: The Best of Both Worlds?

Can’t decide between fixed and variable? A split loan might be the ideal compromise. This option allows you to divide your mortgage between a fixed-rate and a variable-rate portion. For instance, you could allocate 40% of your loan to a fixed rate and 60% to a variable rate.

This approach provides stability with the fixed portion while still offering the flexibility and potential rate drops of a variable loan. It’s a strategic way to manage risk while keeping some of the advantages of both loan types.

Need Help Choosing the Right Loan?

Choosing between a fixed or variable home loan can be challenging, particularly as market conditions continue to shift. At Osinski Finance , we take the guesswork out of the equation. We’ll assess your financial goals, risk tolerance, and market conditions to help you choose the right home loan structure.

Get in touch with Osinski Finance today to explore your options and make an informed decision that aligns with your homeownership goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

House, Apartment, or Townhouse? Weighing the Pros and Cons

Wed, 08 Jan 2025 22:29:22 GMT

When it comes to investing in a property in Australia , there’s a lot more to consider than just houses and apartments. Whether you're looking for a family home or an investment property, it’s important to understand the differences between property types—like townhouses and terrace homes—so you can make the best choice for your goals and lifestyle.

Australians are fortunate to have a wide range of housing options available, with 10.9 million private dwellings across the country. This vast selection means there’s something to suit every budget and lifestyle, so it’s worth exploring all your options before making a decision.

Let’s take a closer look at the most common types of housing and their unique features.

Houses – Freestanding, Semi-Detached, or Terrace?

Houses are the most popular type of property in Australia, making up around 70% of private residences . However, not all houses are the same.

Detached houses are standalone homes, offering maximum privacy and space.
Semi-detached houses share a common wall with a neighbouring property, commonly seen in terrace houses built in the 19th and 20th centuries .

Pros of Houses:

Historically, houses tend to experience higher capital growth compared to other residential property types.

Cons of Houses:

Houses usually come with a higher price tag compared to apartments .
As of now, the median price for a house in Australia sits at $879,680, while apartments have a median price of $669,700.

Apartments

Apartment living has become increasingly popular, with 16% of Australians now calling an apartment home . Since mid-2020, searches for apartments have surged, accounting for nearly 40% of all property searches in late 2024 , according to realestate.com.au.

Pros of Apartments:

Generally more affordable than houses, making apartment units a great option for first-time buyers.
They offer low-maintenance living—no lawns to mow or major upkeep concerns.

Cons of Apartments:

Strata levies can add to ongoing costs, particularly in newer developments with premium facilities .

Townhouses and Villas

If you’re not keen on apartment living but find houses out of your budget, townhouses and villas might be the perfect middle ground. Townhouses represent 13% of Australia’s housing market . Generally, townhouses are two-storey dwellings, while villas are single-storey homes.

Pros of Townhouses and Villas:

They often include a small garden or courtyard, offering more private outdoor space.

Cons of Townhouses and Villas:

As part of a strata scheme, owners need to be mindful of strata fees.

Duplexes

A duplex is a modern take on semi-detached living. Typically built on a larger block, a duplex features two adjoining homes connected by a single wall.

Though not as common as houses or apartments, duplexes offer a more affordable option, often costing nearly half the price of a freestanding house .

Pros of Duplexes:

They offer a balance of privacy, affordability, and low maintenance.

Cons of Duplexes:

According to REA Group , owners of both sides must agree on a shared building insurance policy, which is an important factor to consider before buying.

Let’s Find Out What You Can Afford

Choosing the right property is a personal decision that depends on your preferences and financial situation. Often, finding the perfect home involves a bit of compromise.

At Osinski Finance , we’re here to help you understand your borrowing power, navigate property valuation , and guide you through your property journey—whether you’re a first home buyer or exploringyour financing options .

Give us a call today to find out how much you can afford—we might just help you find your dream home sooner than you think!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Three Financial Resolutions to Propel You Into 2025

Wed, 01 Jan 2025 22:17:03 GMT

As the New Year begins, many of us set goals revolving around fitness or health. But what about your finances? With the challenges of 2024 still fresh, now is the perfect time to make a financial resolution that can set you up for success in 2025. We have laid out three actionable steps for you to consider this year wisely.

While 2024 was undeniably a challenging year for mortgage holders, marked by anticipation of rate cuts that never quite materialised and the pressure of inflation, 2025 offers a chance to recalibrate. If you start the year with one or two of these resolutions in mind, you’ll be better prepared to face whatever financial challenges come your way.

1. Book a Home Loan Health Check with Us

Do you know the interest rate on your mortgage ?

If you can’t recall, you’re not alone. A surprising 40% of homeowners are unsure of their own interest rate.

If this sounds like you, it could be a sign that your mortgage needs a closer look. According to RateCity , borrowers who haven’t refinanced in the last year have ended up paying an average of $6,000 more in interest over that period.

At Osinski Finance, we make the process of reviewing your loan straightforward. Give us a call to schedule your home loan health check, and let’s see if there’s a more suitable option for you in 2025.

2. Trim Down Unnecessary Expenses

When was the last time you took a hard look at your budget?

Conducting a regular expense audit can reveal areas where you might be overspending. It’s common to accumulate subscriptions for streaming services you seldom watch or regularly splurge on takeaway meals.

Small changes can lead to significant savings. For example, a daily $5 coffee habit can set you back $1,825 a year. But by switching to a simple French press at home, you could spend just $350-$450 annually, a big difference that adds up over time.

3. Unlock Your Home Equity to Reach Other Goals

Your mortgage isn’t just a debt; it’s an asset that can help you achieve your other financial dreams.

You might be sitting on more equity than you realise. In January 2023, the median home value in Australia’s capital cities was $770,374, according to CoreLogic . By now, the median value has increased to $897,580, meaning Australian homeowners have gained almost $130,000 in equity over the past two years.

This equity could serve as the foundation for other investments, whether you’re looking to buy an investment property or fund home renovations. For example, that $130,000 equity gain could cover a 20% deposit for a property valued between $600,000 and $650,000.

If you’re curious about how to unlock your home’s equity for future goals, give Osinski Finance a call today. We can help you understand how to maximise the potential of your property.

Let Osinski Finance Help You Achieve Your Goals

At Osinski Finance , we’re here to support you in making informed financial decisions for 2025 and beyond. looking to cut unnecessary expenses, wanting advice on unlocking equity in your property, or considering refinancing this year, we’ve got the expertise to guide you every step of the way. Reach out to us today and start turning your financial goals into a reality.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Happy Holidays from Osinski Finance! Thank You for an Incredible 2024!

Mon, 23 Dec 2024 22:13:34 GMT

As the festive season unfolds, we want to take a moment to express our sincere gratitude to all our valued clients. Your trust and support throughout 2024 have meant the world to us, and we truly appreciate being part of your financial journey.

This past year has brought its fair share of challenges. With the ongoing hope for interest rate cuts remaining just out of reach and inflation continuing to impact household budgets, many families have faced tougher times than expected.

Remember, we’re always here to help. Whether you’re looking to explore ways to lower your mortgage repayments or simply want to review your financial goals, our team is ready to provide expert advice and support tailored to your needs.

Looking ahead, 2025 holds exciting possibilities. Perhaps those long-awaited RBA rate cuts will finally come through, offering some financial relief. No matter what’s on the horizon, we’re here to guide you through your next steps—whether that’s buying your first home, upgrading to a new place, investing in property, or planning for the future.

But before we dive into the opportunities of the new year, it’s time to enjoy the festive season. Whether you’re celebrating with family and friends, indulging in delicious holiday treats, or simply taking a well-earned break, we hope this season brings you happiness and relaxation.

As we move into the new year, one thing remains constant—our unwavering commitment to supporting you every step of the way.

So, pull out your favourite festive jumper (the more outrageous, the better!), make the most of the holiday cheer, and reflect on all you’ve achieved this year.

From all of us at Osinski Finance, we wish you a joyful holiday season filled with happiness, laughter, and success. We’re excited to continue working with you in 2025 to help you achieve your property dreams.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Is It Time to Refinance Your Home Loan This Summer Break?

Wed, 18 Dec 2024 22:09:53 GMT

If you haven’t explored refinancing your home loan since interest rates started climbing, now might be the perfect time to ask yourself, “Why not?” With new research revealing opportunities for savings, a fresh look at your mortgage could help you start 2025 on the right financial footing.

A recent Canstar report found that over 20% of borrowers successfully negotiated better interest rates with their existing lenders this year, while 10% made the switch to a new lender.

Despite these promising numbers, fewer Australians refinanced in 2024 compared to 2023. With interest rates likely to stay higher for longer, this summer break could be the ideal time to reassess your options.

What’s Stopping Borrowers From Refinancing?

Canstar highlights that around 5% of borrowers who tried to refinance in 2024 were unsuccessful due to insufficient home equity. Another 5% didn’t meet their bank’s requirements.

This situation, often called ‘mortgage prison,’ leaves borrowers stuck with higher repayments because they don’t qualify for better rates. But the key question is: are you really stuck, or could it be time to test the waters again?

Why You Should Revisit Refinancing

Even if past attempts to refinance didn’t pan out, the conditions may have changed in your favour. Here’s why:

Increased Home Equity

National property prices rose by 5.5% in 2024, meaning you might have more equity in your home than you realise.

Easing Stress-Test Buffers

Some lenders are now willing to stress-test refinancers with a loan serviceability buffer as low as 1%, compared to the standard 3% .

A Strong Repayment History

Consistently making repayments can boost your credibility with lenders, potentially opening new refinancing opportunities.

Speaking with a mortgage expert can help you uncover these opportunities and explore whether you’re eligible for a better deal.

How Much Could Refinancing Save You?

Many asked, “ How much can you really save by refinancing ?” Well, the potential savings depend on factors like your loan size, current interest rate, and the reduction in that rate.

According to RateCity, borrowers who didn’t refinance their home loans in the past year have paid nearly $6,000 more in interest on average. That’s a significant amount that could have stayed in your pocket!

Is Refinancing Hard Work?

One common misconception is that refinancing is too difficult, with 17% of borrowers surveyed by Canstar citing this as a reason they’re not planning to refinance.

The reality? It doesn’t have to be hard. When you work with a mortgage professional , much of the heavy lifting is done for you. At Osinski Finance , we’ll:

Simplify the Process: Handle the paperwork and manage lender communications.
Customise Options: Find a loan that matches your financial goals.
Save You Time: Streamline every step of the refinancing journey.

Take the First Step Today

Refinancing your mortgage could be the financial refresh you need heading into 2025. Whether you want to lower your monthly repayments, pay off your loan faster, or free up funds for other priorities, we are here to help.

We specialise in finding tailored home loan solutions and navigating the complexities of refinancing, whether for personal home loans or SMSFs so you don’t have to.

Get in touch today to see if your current loan still fits your needs or if it’s time to upgrade to a better deal.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Did Property Prices Perform in 2024? And What’s Forecast for 2025?

Wed, 11 Dec 2024 22:24:57 GMT

As we approach the close of 2024, it’s time to review how property markets have fared over the past year and what the experts are predicting for the future. The landscape has been dynamic, with varying changes in property values and market conditions across Australia’s major cities .

The Year in Review

2024 has been a period of notable transition in the property market, with home values and market trends evolving in state and territory capitals. The only consistent factor has been the Reserve Bank of Australia’s cash rate , which has remained steady at 4.35% since November 2023. CoreLogic reported a national home value increase of 5.5% this year, but as we move into 2025, growth seems to be losing momentum, especially in Melbourne and Sydney.

Australia-Wide Market Overview

November 2024 saw a modest rise in home values by just 0.1%, marking the 22nd consecutive month of growth since January 2023. While this figure may not suggest strong momentum, it does indicate a cooling market, and experts are forecasting a potential downturn. This is particularly good news for buyers, who may find more favourable conditions in 2025.

A Look Across the Major Capital Cities

Queensland

Brisbane’s property market has seen significant growth, with home prices up 12.1% over the past year. While this rate may not be sustainable, Domain predicts a more moderate 5-7% increase for houses and 7-9% for apartments in 2025.

New South Wales

Sydney’s property market has risen by 3.3% over the past year, with values flattening or slightly declining since reaching a cycle peak in August. CoreLogic’s data suggests that the city’s median home price of $1.2 million remains a challenge for many buyers. Domain is forecasting a 4-6% rise in home values for 2025.

Victoria

Melbourne has been the standout loser in terms of property price growth, recording a 2.3% decline over the past 12 months. However, Domain is optimistic about a potential turnaround, predicting a 3-5% rise in house values next year, though apartments could see a slight decrease of up to 2%.

Australian Capital Territory

Canberra’s housing market has been relatively stable in 2024, with just a 0.1% decline in values. Optimistic predictions from Domain expect house prices to rise 3-5% next year, while unit values may drop by up to 4%.

Tasmania

Hobart experienced a 1% fall in property values over the year to November, marking a 12.1% decline since the market peaked in March 2022. However, with more affordable prices and recent stamp duty reforms, 2025 could see a resurgence in first home buyer activity in Tasmania, potentially driving values up.

South Australia

Adelaide’s market has been strong, with home values rising 14% over the past year. Despite a slight cooling over the past few months, Domain forecasts a 7-9% rise in property prices for 2025, suggesting sustained momentum in the market.

Western Australia

Perth has been one of the standout markets, with home prices soaring 21% over the past year. While listings increased by 33% in November, CoreLogic notes that the pace of growth is slowing. Domain’s forecast of 8-10% price rise for 2025 indicates that Perth’s market is still performing strongly.

Northern Territory

Darwin’s property market has been relatively subdued, with just 0.9% growth over the past 12 months. However, SQM Research predicts that Darwin could see home values rise between 3% and 10% in 2025, depending on factors like interest rates and population growth.

Preparing for 2025: Know Your Borrowing Power

With a cooler market on the horizon, 2025 might be the ideal time to buy property. If you’re considering purchasing your first home , an investment property , or upgrading your current residence , now is the time to get a clearer picture of your borrowing power .

At Osinski Finance , we’re here to provide insights into your financial options and help make your property aspirations a reality. Give us a call for personalised advice!

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Considering a Holiday Home Purchase? Here’s What You Need to Know

Wed, 04 Dec 2024 22:20:42 GMT

The holiday season is upon us, and many Australians are gearing up for a well-deserved break. For some, this time away might spark thoughts of owning a holiday home. But is it a wise decision? Can a vacation property still make financial sense? In this post, we’ll walk you through the key considerations before investing in a property and tips for funding a holiday home.

Weighing the Pros and Cons of a Holiday Retreat

As you lock up your primary residence and head for a sea or tree change , some holidaymakers dream of extending their vacation experience by purchasing a holiday home. But with property prices still on the rise, is it a smart move?

Holiday homes can be a significant investment. Consider this: an apartment in Coolum on Queensland’s Sunshine Coast might set you back around AUD 870,000, while a house in Byron Bay on NSW’s north coast could cost around AUD 3.5 million.

There are, however, more affordable options. A unit in Portland, Victoria , about four hours from Melbourne, can be purchased for around AUD 304,000. While in WA’s Margaret River wine region or Tanunda in South Australia’s Barossa Valley , you could find houses priced between AUD 670,000 and AUD 770,000.

Is a Weekender a Smart Investment?

Wherever you decide to buy, a holiday home is likely to require a substantial financial outlay. But it’s crucial to consider whether this investment will provide long-term capital growth. Properties in vacation hotspots are often located in regional areas, which can have very different growth dynamics compared to major cities .

CoreLogic identifies regions like Mackay, Geraldton, and Townsville as seeing exceptional property growth due to affordability and lifestyle appeal. However, not all regional markets are booming. For instance, Batemans Bay on NSW’s south coast and Warrnambool in Victoria have experienced declining values in the past year. Do your research, especially a comprehensive property valuation , and choose an area where property values are likely to appreciate.

Can a Holiday Property Generate Income?

Gone are the days when most holiday homes stood empty for most of the year. Today, platforms like Airbnb and Stayz provide opportunities to generate income from short-term rentals. However, various state regulations and council restrictions limit the number of rental nights per year. Additionally, councils like Hobart City Council have increased rates for short-term accommodation properties, so these factors need to be considered when budgeting for your holiday home. On the plus side, if rented out, you may be able to claim some of the ongoing costs as tax deductions .

Financing Your Holiday Home Purchase

Holiday home loans work similarly to regular mortgages but with some key differences. Properties in popular vacation spots can be highly seasonal, increasing the risk for lenders who may require a larger deposit .

Your vacation retreat could also be viewed as an investment property, potentially leading to higher loan rates compared to owner-occupied home loans. However, if you’re already a homeowner, you might be able to use existing home equity instead of a cash deposit .

Need Advice? Get in Touch

Curious about financing your dream holiday home? Osinski Finance can help turn your vacation pipedream into a fun-filled, financially rewarding reality for your family.

If you’re interested in finding the best loan options or getting a free property report before taking the leap, give us a call today . Our team is here to guide you through every step of the process and help you start your journey to owning a holiday home!

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Considering a Swimming Pool Installation for Summer?

Wed, 27 Nov 2024 21:41:33 GMT

When summer arrives, there’s no better way to cool down than lounging by your own swimming pool. Whether you’re looking for an affordable backyard oasis or planning to invest in a luxurious inground pool, there are a few key factors to consider before making the leap.

The Popularity of Pools in Australia

More than 3 million Australians already enjoy the luxury of having a swimming pool or spa at home—roughly one-in-eight Aussies, and even higher in places like the Gold Coast where it’s nearly one-in-four. Pools offer more than just a place to beat the heat ; they provide an opportunity to stay active, encourage water confidence in children, and are a fantastic centrepiece for home entertaining.

Costs Involved

Before you start planning poolside barbecues, it’s essential to budget for your new swimming pool. Here’s a breakdown:

Above-Ground Pools

For a more budget-friendly option, above-ground pools typically range in price from approximately $3,500 to $12,000.

Inground Pools

An inground pool can start at around $35,000 and go up to $100,000 or more, depending on size, materials, and features. Remember to factor in extra costs such as childproof fencing , filtration systems, and basic landscaping to keep your pool inviting and safe.

Ongoing Costs

Expect additional expenses for power, water, and pool supplies such as chlorine. Regular maintenance can cost between $65 and $165 per month, depending on the size of your pool.

Adding Value to Your Property

Swimming pools are a sought-after feature among home buyers in Australia. In 2023, “pool” was the most searched term among potential buyers. While it’s true that a pool can boost property value, the amount of increase isn’t always guaranteed. According to real estate experts at Ray White, your property’s value might rise by at least the cost of installation. For instance, if you invest $50,000 in a pool, there’s a good chance your property’s value will rise by at least $50,000. However, the upkeep costs and maintenance requirements could deter some buyers.

To get a better understanding of how pools are valued in your area, it’s wise to consult with a local real estate agent who can offer insights specific to your market.

Financing Options

Now that you’ve set your sights on a pool, the next step is figuring out how to fund it. Here are a few options:

Savings

Using personal savings means avoiding interest charges, but ensure you have enough spare cash to cover any unexpected bills or expenses.

Personal Loans

A personal loan can keep your savings intact and provides a fixed term, so you’ll know exactly when the debt will be paid off.

Home Equity

Tapping into home equity can allow you to add the pool’s cost to your home loan . This can also be an opportunity to review your current loan to ensure it still aligns with your financial goals.

Ready to Dive In?

You’re set to create memories in your backyard paradise, but you’ll need a plan for financing. That’s where we come in. At Osinski Finance , we specialise in finding tailored solutions for pool financing .

We’ll explore the market to find the best options for your needs, so you can focus on getting your backstroke ready and enjoying the fun times ahead in your new pool. Dive in with us at Osinski Finance today!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Your Guide to Buying Land Now, Building Later

Wed, 20 Nov 2024 22:22:58 GMT

Spotting that dream block of land before you’re ready to build can feel like fate, but how do you make it work financially? A land loan could be your answer. While similar to a standard home loan, there are key differences you’ll want to understand before investing in a property .

Here’s everything you need to know about financing vacant land.

Why Buy Land First, Build Later?

Sometimes, you want to lock in the perfect location without rushing into construction. Maybe it’s a serene piece of acreage or a plot in a prime spot that just can’t be passed up. Purchasing land now and building later can give you the flexibility to plan, save, and design your dream home at your own pace.

What’s a Land Loan?

A land loan, or vacant land loan, is designed specifically to help you purchase an empty block of land. It works similarly to a traditional home loan—you’ll need a deposit, choose a fixed or variable rate, and may have access to features like offset accounts or interest-only payments.

However, there are some differences to be aware of, such as stricter conditions around deposits, interest rates, and even building timelines. Let’s explore these.

Key Considerations for Land Loans

Before jumping into a land purchase, it’s crucial to understand the unique aspects of financing vacant property. Land loans often come with additional requirements and conditions compared to standard home loans. Here’s what you need to keep in mind to make an informed decision.

Deposits and Interest Rates

Vacant land is considered a higher risk by lenders because it can take longer to sell than established homes. As a result, you may need a larger deposit (often more than the standard 20%) and could face higher interest rates.

These extra costs can impact your budget, so it’s important to understand them upfront. A broker like Osinski Finance can help you compare options and find competitive rates.

Building Timelines and Additional Factors

Some lenders require you to build on the land within a set timeframe, which could affect your plans. If construction isn’t on your radar just yet, make sure you choose a lender with flexible terms.

Lenders may also assess the block itself, considering things like accessibility, the land’s shape and condition, and the availability of utilities like water and power. These factors could influence loan approval or future construction costs.

Plan Smarter with Osinski Finance

Buying land now and building later is an exciting way to secure your dream home, but navigating land loans can be tricky. But you don’t have to take the path alone, at Osinski Finance, we help you:

Find loan options tailored to your needs, such as personal loans , home loans , and more.
Understand lender conditions, including deposit and building requirements.
Lock in competitive interest rates to save you money over time.

Don’t let confusion and fear of rejection hold you back from securing the perfect block. Get in touch with us today and make your land-buying journey smooth and stress-free.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why a Building Inspection is Essential Before Buying Your Home

Wed, 13 Nov 2024 21:49:36 GMT

Your home is likely one of the biggest investments you'll ever make, so it’s crucial to ensure you're buying a property that’s structurally sound and free from hidden issues that could cost you down the track. While a place may look perfect on the surface, there could be costly problems lurking beneath.

This is where a pre-purchase building and pest inspection can be a game-changer. Bringing in a professional to assess the property ensures that you're aware of any serious issues before you sign on the dotted line , potentially saving you from expensive surprises.

What’s Involved in a Pest and Building Inspection?

A pre-purchase building inspection is conducted by a qualified expert, often a licensed builder, who physically inspects the property for any significant structural defects. This includes issues such as faulty foundations, rising damp, or other structural concerns that can be costly to repair.

While a building inspection on its own can reveal a lot, you can often add a pest inspection for a small additional fee. This can alert you to any hidden infestations of pests such as termites or borers, which can cause significant damage if left unchecked.

Common defects identified during these inspections include:

Active termite infestations
Poor construction quality
Faulty wiring or plumbing, which may need to be replaced for safety reasons

These problems are often difficult to spot by the untrained eye and could leave you facing unexpected repair bills after purchase.

What is the Cost of a Building and Pest Inspection?

While buying a home comes with various upfront costs, forking out for a pest and building inspection is a wise investment in the long run. The cost of these inspections can vary depending on the service and the size of the property, but here’s a general guide:

According to HiPages , a building inspection typically costs between $200 and $300 for smaller properties and around $400 to $500 for an average-sized home.
A pest inspection generally costs an additional $100 to $150.

While it may seem like an extra expense, consider it an insurance policy against unexpected costs that could arise once you own the property.

What If the Pest and Building Report Comes Back Negative?

If the inspection report uncovers problems, don’t panic—it doesn’t necessarily mean the deal is off. Instead, use the findings as a negotiating tool. If you’re still keen on the property, you can ask for a lower price to account for the cost of repairs.

Before making a formal offer , it’s wise to gather quotes from builders or pest control experts for the necessary fixes, so you can negotiate confidently and ensure you’re not caught off guard by the repair costs.

Alternatively, if the issues are too severe, you may decide to walk away and continue your search for a better property.

Why Choose Osinski Finance?

At Osinski Finance , we understand the complexities of purchasing a home and the importance of being well-informed about the property you’re considering. With our expert advice , we can guide you through the process of making informed decisions before committing to a purchase. Whether it’s arranging for your pre-purchase inspections or discussing other crucial checks, we're here to help ensure you get the best deal on your new home.

Don't let hidden issues turn your dream home into a nightmare— talk with us today for expert advice on property inspections and more.

Making the right choice now can save you money and hassle in the future.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Will the RBA Deliver a Rate Cut This Summer?

Wed, 06 Nov 2024 22:10:47 GMT

As 2024 nears its end with only one Reserve Bank of Australia (RBA) decision remaining, homeowners are keen to know if a summer rate cut is on the cards. Here’s what to expect for interest rate movements and how you could potentially secure a better rate before the holidays.

“Are we there yet?” It’s a question familiar to anyone on a long summer road trip, but it might just sum up the anticipation of Australian homeowners eagerly awaiting a rate cut .

The silver lining? Some major banks predict that rate cuts could begin as early as the end of this summer.

November: Rates on Hold

In November, the RBA decided to keep rates steady . This decision came despite inflation slipping to 2.8% , comfortably within the RBA’s preferred 2-3% range.

So, why the wait? The RBA has highlighted that part of the inflation drop stems from temporary cost-of-living measures, like the $300 power bill credit . The concern is that inflation may still be too stubborn and the future too unpredictable to cut rates just yet.

When Will Rates Start Falling?

The RBA has reiterated that it’s committed to bringing inflation “sustainably back to target” within the 2-3% band. Given this cautious approach, the likelihood of a rate cut at their December 10 meeting remains slim .

RBA Governor Michele Bullock offered no hints regarding future rate changes in a recent speech. However, the banks are more forthright and optimistic.

The Commonwealth Bank , once hopeful for a December cut, now eyes February 18, 2025, as the starting point for a series of potential rate reductions. Westpac , ANZ, and AMP also predict rate cuts in February, while NAB anticipates the first change in March 2025.

Get Ahead: Variable Rates Are Already Dropping

While February may not sound far off, waiting for official rate cuts can feel endless, especially without certainty. Thankfully, there are ways to take charge now.

In response to growing expectations for future rate cuts, some lenders have already reduced their variable rates to under 6% . This trend is reflected in a 2.1% increase in home loan refinances over the past month.

Start Saving Today

Why wait for the RBA when you might secure a better deal now? Refinancing your home loan could free up extra funds and bring some festive cheer to your budget.

At Osinski Finance , we specialise in helping you find competitive rates tailored to your needs. Whether you're looking to refinance, secure a new home loan , or explore options for investing in a property , our team is here to guide you every step of the way. We offer comprehensive services that ensure you’re well-positioned for your financial goals, from managing current mortgage rates to strategising for property investments.

Reach out to us today for a personalised loan review and discover if you could save on your current interest rate. Let us guide you toward potential savings, smarter investment decisions, and a brighter financial outlook.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Much Does LMI Really Add to Your Home’s Cost?

Wed, 30 Oct 2024 22:40:37 GMT

Saving for a 20% house deposit can feel like teaching a mischievous puppy to sit, it's a lot of patience and persistence. Not everyone has the time or inclination for this process, and that’s where lenders mortgage insurance (LMI) can step in. But how much does LMI really add to your home’s cost? And can you dodge it altogether?

LMI is a type of insurance that protects the lender (not you or any guarantors) if you fail to keep up with your home loan repayments. It’s usually applied when your deposit is less than 20%, which is the case for many first-time homebuyers today.

A recent Mozo study revealed that 84% of Australians saving for a deposit can’t afford the full 20% deposit needed to avoid LMI. With property prices rising, this challenge is becoming even greater. For context, the national median property price has jumped to $973,300, up from $949,400 last December and $649,300 in June 2019.

So, let’s break down how much LMI can cost and explore ways to manage or potentially eliminate this extra expense.

How Much Could LMI Cost?

LMI typically costs between 1% and 2% of your loan amount , depending on your deposit and loan size. The larger your deposit, the lower your LMI premium could be.

Let’s run through a scenario using this convenient LMI estimator (give it a try to see the result yourself). Picture buying a $500,000 apartment. If you have a 10% deposit of $50,000, your LMI could be around $8,680.

Another example: If you're buying a $1,500,000 home and have a $150,000 deposit, the LMI premium could rise to $36,480.

The good news? There are ways to reduce or even avoid paying LMI altogether. Here are some ideas to consider:

1. Talk to Us for Advice

Unlike other types of insurance, LMI isn’t something you can shop around for, as your bank will select the insurer. However, different lenders use different LMI providers, which means the premium can vary depending on your choice of lender.

That’s why it’s crucial to speak with us at Osinski Finance . We can provide insight into the likely LMI premiums for the various lenders you're considering, helping you make an informed decision that could save you money.

2. Pay LMI Gradually

If paying LMI upfront doesn’t work for you, consider asking your lender if you can add the LMI cost to your loan balance. This way, you can spread the cost over your home loan repayments.

For example, if you’re buying that $500,000 apartment with a $50,000 deposit, adding the $8,680 LMI premium to your loan could increase your monthly repayments by around $45 to $65 over the life of a 30-year mortgage, depending on your interest rate.

Alternatively, some insurers offer the option to pay the LMI premium in monthly instalments until you build up enough equity for your lender to be satisfied.

3. Avoid LMI Altogether

Want to completely avoid LMI? Here are a few strategies that could help you:

Use your profession

Did you know that some lenders waive LMI for certain professionals ? If you’re a doctor, lawyer, accountant, vet, engineer, or pharmacist, you might be eligible for home loan benefits that could save you a significant amount. So, check if your job comes with these home loan benefits , including being qualified for these LMI waivers.

Utilise the Home Guarantee Scheme

This government scheme allows first-time home buyers to purchase with a deposit as low as 5% or 2% for single parents and without paying LMI.

Ask a family member to guarantee your loan.

A guarantor, such as your grandparents , can offer extra security, such as the equity in their home, to bring the total loan security up to the equivalent of a 20% deposit.

Next Step? Get in Touch With Us

If saving for a 20% deposit is proving difficult or if you're unsure about how much LMI will impact your home purchase, Osinski Finance can help. We’ll guide you through the process, helping you understand what you’re likely to pay for LMI and offer strategies to potentially keep the costs down.

Whether you’re looking to secure a suitable home loan or ready to explore investing in a property , we’re dedicated to offering personalised support every step of the way. Get in touch with us today for clear, tailored advice to help you make the best financial decisions for your future.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

What’s Happening with Negative Gearing?

Tue, 29 Oct 2024 22:25:16 GMT

Negative gearing is making headlines once again, but what exactly is it, and how could it affect you? Let’s dive into how negative gearing works, why it remains a popular strategy among investors, and why it's once again sparking conversation.

Australians have a long-standing love affair with property, with more than one in ten adults ( 2,268,161 Australians ) owning at least one investment property .

Why Is Property Such a Popular Investment?

There are several reasons why property investments are so appealing. First and foremost, landlords can collect a steady stream of rental income, which helps cover the costs of the property, including the mortgage.

Additionally, property values in Australia have been on a long-term upward trend. Over the past century, national property prices have increased by an average of 10.9% per year, according to AMP Insights .

This means that investors not only benefit from rental income but also stand to gain when they eventually sell, with the possibility of a 50% discount on capital gains tax (CGT) on their profits .

But perhaps the most compelling reason for many investors is the tax savings associated with negative gearing.

How Does Negative Gearing Work?

In simple terms, ‘gearing’ refers to borrowing money to invest. Negative gearing occurs when the costs of owning a property, such as loan interest, council rates, and insurance, outweigh the income generated by the property.

As a result, the investor records a loss, which they can then claim on their tax return, reducing their taxable income. This is beneficial because it can lower their overall tax liability, even though the property’s value may be appreciating at the same time.

The tax advantage comes from being able to offset that loss against other sources of income, such as a regular salary or wage, potentially leading to significant tax savings.

An Example of Negative Gearing in Action

Let’s look at a hypothetical scenario:

Deb earns an annual salary of $125,000. Based on 2024-2025 tax rates , she would pay $28,288 in tax and the Medicare levy.

Deb has recently purchased an investment property, which generates $25,000 in rent annually. However, the costs associated with the property, including loan interest and landlord insurance, amount to $35,000 each year, leaving her with a $10,000 loss.

Deb can claim this loss on her tax return, reducing her taxable income to $115,000. As a result, her tax and Medicare levy are reduced to $25,288, saving her $3,000 in taxes.

That $3,000 can be applied towards repaying the investment loan, highlighting the practical advantage of negative gearing.

The Controversy Surrounding Negative Gearing

One point of contention with negative gearing is that many investors, while claiming losses on paper, are seeing their properties increase in value year after year. Critics argue that these investors aren’t truly experiencing a financial loss when property appreciation is considered.

On the other hand, supporters argue that capital gains on property are already taxed (albeit often with a 50% discount), so investors aren’t escaping taxation entirely.

Why Is Negative Gearing in the News Again?

Recently, negative gearing has sparked fresh debate after Federal Treasurer Jim Chalmers mentioned he had asked for Treasury modelling on its impact on housing supply .

While Prime Minister Anthony Albanese stated , "We have no plans to touch or change negative gearing", political landscapes are never set in stone.

Given that there are over 2.2 million property investors in Australia—about half of whom negatively gear their properties —it would take a bold government to make significant changes to the policy.

Thinking About Investing in Property?

Before diving into property investment , it’s wise to consult a tax professional to determine whether negative gearing could benefit your financial strategy. While it's a popular tool, it's not necessarily the right fit for everyone.

If you're eager to start your property investment journey and want to explore the best finance options available, reach out to Osinski Finance . We can help you understand your borrowing capacity and offer expert insights on how to leverage the equity in your current property to make your investment dreams a reality.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to Secure a Home Loan as a Self-Employed Aussie

Wed, 23 Oct 2024 22:37:27 GMT

It’s the great Australian dream for many: giving the 9-to-5 grind the flick and running your own show. But when it comes to taking out a home loan, being your own boss can dish up some unexpected hammer blows.

Rightly or wrongly, lenders tend to see self-employed borrowers as a higher risk compared to employees . That’s largely because, by and large, their income isn’t as guaranteed.

In addition, it’s likely their earnings won’t be the same each pay day – they may differ, sometimes substantially, from one month to the next.

In a lender’s eyes this has the potential to impact their ability to make regular loan repayments.

So if you own one of Australia’s 2.6 million small businesses , or you’re one of the nation’s one million independent contractors , here are some tips on how to convince a lender to back you.

Show you’ve been in business for a while

Banks often feel more comfortable if you have been self-employed for a while.

That can mean showing you’ve held your Australian Business Number (ABN) for at least a year or two. It demonstrates the business has got legs and possibly generates a reasonable income for you.

Gather proof of income

While employees can simply stump up a couple of pay slips as proof of income, if you’re self-employed you’ll likely need to pull together several pieces of paperwork as evidence of income.

The requirements vary between lenders.

You may be asked to provide your last two years of financial statements, including business and personal tax returns (a good incentive to stay up-to-date with your tax!).

Or the bank may just want to see several recent business activity statements.

In some cases, you may be asked for an income statement signed by you and your accountant that confirms your financial position and that you can afford the loan repayments.

With so much variation, it’s important to speak with us to know what different lenders look for.

Showcase your other assets

It’s not a bad idea to gather evidence of personal savings and investments.

A healthy track record of regular saving, in particular, can go a long way towards convincing a lender that you can handle home loan repayments.

Don’t hide your income or exaggerate expenses

The Australian Tax Office (ATO) estimates that about 10% of small businesses under-report income (aka cash-in-hand jobs) or exaggerate/overclaim expenses.

Not only can this get you in hot water with the ATO, but it can also impact your borrowing capacity.

That’s because generally speaking, the lower your income, the lower the repayments a lender may expect you’ll be able to afford each month.

Low-doc loans for self-employed home buyers

You may have heard about low-doc home loans .

These are purpose-built loans designed for self-employed borrowers who don’t have sufficient documents to apply for a regular home loan, hence the name “low doc”.

The beauty of low-doc loans is that they can provide a pathway into the property market.

The downside is that with less proof of income, the bank may see you as higher risk. And that can mean paying a higher interest rate.

The good news is that the higher rate may not apply for the life of the loan.

If you build up a record of reliable loan repayments, the bank may let you convert your mortgage to a full doc loan at a later stage, potentially providing the savings of a lower rate.

Not every lender offers low-doc loans. Talk to us to know which, if any, low-doc loans are suitable for your circumstances.

Get the ball rolling

Borrowing to buy a home may involve a little extra effort when you’re self-employed but it can be done.

And if you’ve created a successful business with a strong track record of generating a profit and income for yourself, the process can be straightforward and result in you landing a regular ol’ home loan.

The catch is that running your own show is likely to mean you’re stretched for time to put the application together.

If that sounds like you, give us a call. We’ll help take care of your home loan while you’re taking care of business.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to Save for a House Deposit Faster: 4 Effective Strategies

Tue, 22 Oct 2024 21:20:50 GMT

If you’re dreaming of buying your first home, the average saving time for a deposit in Australia is a hefty five to six years . But let’s be real—who has that much time to wait in today's fast-paced market? Luckily, there are a few ways you could speed up the process. Let’s explore four strategies that could help you get the keys to your new home much sooner.

1. Buy with Less Than 20% Deposit

The common advice is to aim for a 20% deposit, but that’s not your only option. Some lenders are willing to accept deposits as low as 10%, or even 5% .

The trade-off is that if you put down less than 20%, you’ll likely have to pay Lenders Mortgage Insurance (LMI)—unless you qualify for the scheme in strategy 3.

LMI protects the lender (not you) if you can’t make your loan repayments, but the downside is that it can be expensive, potentially adding more than $10,000 to your upfront costs. However, some lenders allow you to add this cost to your home loan, so you can spread it out over time. Keep in mind this will increase your repayments and overall interest.

The upside? You could enter the property market sooner, before prices increase even further. We’re happy to chat about whether paying LMI could be the right move for you.

2. Ask a Guarantor for Help

Got supportive parents or relatives ? A guarantor might be your ticket to home ownership. A guarantor provides extra security for your loan, often using their own home equity. This doesn’t mean they hand over cash—they simply back part of your loan, helping you to borrow a higher percentage of your home’s value.

In some cases, with a guarantor in place, you may be able to borrow up to 100% of your home’s value without needing LMI. However, lenders still like to see that you’ve got some savings history, usually with at least a 5% deposit of your own.

Think a guarantor could help your situation? Let’s explore what home loan options might be available.

3. Leverage the First Home Guarantee Scheme

If a family guarantor isn’t an option, don’t stress. With just a 5% deposit, you could still qualify for the First Home Guarantee (FHG) scheme. Through the FHG, the federal government guarantees up to 15% of your loan, allowing you to buy with a smaller deposit and skip paying LMI.

It’s important to note that spaces in this scheme are limited, and there are eligibility criteria to meet. Contact us, and we can walk you through whether this scheme could help make your dream home a reality.

4. Boost Your Savings with the First Home Super Saver Scheme

Another smart way to build your deposit is through the First Home Super Saver Scheme (FHSS). According to the federal government , this could speed up your savings by 30% compared to a regular savings account.

The scheme allows you to make voluntary contributions to your super, up to $15,000 a year. These contributions are taxed at just 15%, which is often lower than your income tax rate, and your super account generally offers better returns than standard savings accounts.

When you're ready to buy, you can withdraw up to $50,000 in voluntary contributions, plus earnings. If you’re buying with a partner, you could withdraw up to $100,000 between you.

Why Acting Quickly Matters

Here’s the kicker: the average five to six years needed to save a 20% deposit assumes today’s median home prices. But property prices are likely to rise in the years ahead. The longer you take to save, the larger your deposit may need to be.

By using one or more of the strategies above, you could save time—and potentially money—by getting into the property market sooner rather than later.

Ready to take the next step?

At Osinski Finance , we specialise in helping first-time buyers navigate the often complex home-buying process. Our team will guide you through all the options, so you can find the fastest route to homeownership. Let’s chat about your unique situation and how we can help you secure your dream home sooner . Reach out today !

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Could Rate Cuts Ignite a Surge in Home Prices?

dave@99content.co (Dave Barbeler) — Tue, 15 Oct 2024 23:20:28 GMT

Are you considering postponing your home purchase until interest rates drop ? Before making that decision, it’s essential to understand the potential implications for home prices. Here’s why buying sooner rather than later might be wiser if you’re ready for a home loan .

In September, the Reserve Bank of Australia (RBA) again maintained the official cash rate. However, there is an increasing belief that rate cuts could be on the horizon in upcoming meetings.

Prominent banks like Westpac and NAB are predicting rate reductions in the first half of next year, while the Commonwealth Bank suggests we could see a cut in time for the Christmas season .

While many mortgage holders eagerly await these lower rates, one crucial aspect often overlooked is the possible reaction of home prices to a cash rate cut.

How will home values react to rate cuts?

It’s important to note that we’ve been living with higher interest rates since mid-2022 .

Surprisingly, during this period, property values have not declined but instead increased, with the national median value rising from $752,507 in June 2022 to $807,110 today .

Given this trend, many experts predict that a decrease in interest rates could push home values even higher. But the key question remains: by how much?

Ray White Economics has analysed historical property price movements after anticipated rate cuts. Their findings suggest that, following a rate cut, national home prices could rise by approximately 0.6% within just one month.

The REA Group delves deeper into the implications, estimating that this 0.6% increase could add around $5,000 to the average home cost across Australia—just from a single rate cut.

SQM Research’s director, Louis Christopher, indicates that while it may seem unlikely, four rate cuts next year could lead to a substantial rebound in property markets that have recently shown weakness, particularly in Melbourne and Sydney.

Regional Variations in Home Price Changes

The response of home prices to rate cuts will likely differ across various locations. According to insights from Ray White Economics and REA Group, here’s what might happen in capital cities within the first month after a rate cut:

Sydney: Values could jump 1.4%, adding an impressive $15,300 to the median property value.
Melbourne: Prices may rise by 1.0%, increasing the median cost by $8,000.
Brisbane: A climb of 0.4% could see home prices go up by $3,400.
Canberra: Values might increase by 0.5%, contributing over $4,000 to prices.
Adelaide: An increase of 0.3% could add $2,300 to property prices.
Perth and Darwin: No anticipated changes in values.

It’s essential to keep in mind that these figures are based on how the market has reacted to rate cuts historically. Future outcomes could vary significantly.

In particular, Perth currently boasts one of the country’s strongest property markets , and according to Ray White Economics, values there could rise further following a cut in the cash rate.

Should You Buy Now or Wait?

While holding out for interest rate reductions might seem logical, it’s crucial to consider the bigger picture. Lower rates can enhance your borrowing power , but they could also lead to rising home prices and intensified competition among buyers.

Thus, the most favourable time to buy is when you feel ready. The current spring market offers an additional advantage with increased options for buyers.

According to CoreLogic, the volume of new housing stock has reached its highest level at this time of year since 2021.

If you’re thinking about purchasing your first home or just investing in a new one , especially with the possibility of enjoying one or more rate cuts shortly after your purchase, contact us today .

Osinski Finance is here to help you evaluate your borrowing power in today’s market. If you find the right property, we’ll assist you in securing the ideal loan .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why 9 Out of 10 First-Home Buyers Trust a Mortgage Broker

Wed, 25 Sep 2024 22:20:05 GMT

Remember your first time at the gym? Chances are, you didn’t walk straight to the free weights and start doing deadlifts with perfect form. Well, buying your first home can feel just as intimidating. In fact, 91% of first-home buyers now rely on the guidance of a mortgage broker to help them navigate this major financial milestone.

When it comes to life’s biggest decisions, buying a home is at the top of the list. It’s only natural to feel both excitement and a few nerves when you’re embarking on this journey.

That’s why more than half of first-time buyers seek support throughout the process—often from a mortgage broker. According to a recent survey by Helia, a leading provider of lenders’ mortgage insurance (LMI), nine out of ten first-home buyers make use of a mortgage broker’s services.

How Mortgage Brokers Make a Difference

Finding your dream home is just one part of the equation. Securing the right home loan , one that fits your financial goals and offers a competitive rate, is the other half of the challenge. But with so many loan options and complex terms, it's easy to feel lost.

Helia’s survey revealed that almost half of first-home buyers (45%) find it tough to research which loan suits them best. More than 50% expect roadblocks in getting their loan approved.

This is where the expertise of a mortgage broker shines.

We take the time to understand your financial situation, allowing us to zero in on the home loan options that meet your unique needs. With our experience, we also know what lenders require for approval , meaning we can guide you on whether you’re loan-ready or what steps to take to get there. And we're not just there at the start—we’re with you every step of the way, offering advice, encouragement, and support throughout the entire home-buying process.

More Than Just a Loan – The Full Package

Mortgage brokers offer far more than just loan advice. According to the same Helia report, first-home buyers say that brokers:

– Help you understand your financial standing and borrowing capacity – Provide critical support and expert guidance during your home-buying journey – Save you both time and effort

Additionally, brokers can suggest creative strategies you may not have considered, such as rentvesting , where you buy a property to rent out while continuing to live in your desired location. We can also help explore options like having a family member act as a guarantor or take advantage of the federal government’s First Home Guarantee scheme , which allows you to secure a home with as little as a 5% deposit.

There are many routes to home ownership, and strategies like rentvesting can expand your options, giving you access to areas that might otherwise be out of reach while letting you live where you prefer.

Let’s Secure Your First Home Loan Together

At Osinski Finance , we understand the challenges of buying your first home, and we’re here to make the journey smoother for you.

Our team of experienced brokers will work with you to find the right loan, simplify the process, and give you personalised advice that aligns with your financial goals. Whether it’s exploring loan options, government schemes, or innovative strategies, we’re committed to helping you every step of the way.

Get in touch today and discover how we can help you achieve your home ownership dreams!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

TikTok vs Chatting with Your Broker? There’s Really No Comparison

Wed, 18 Sep 2024 22:28:45 GMT

Sure, TikTok and Instagram reels are fast, fun, and don’t cost a cent – but when it comes to getting serious about a home loan , you’ve got to be careful about whose advice you’re taking.

If you’ve found yourself scrolling through this blog from a social media link, there’s a good chance you’ve spent some time watching TikTok or Instagram videos too.

In Australia alone, over 8.5 million people are actively using TikTok , and close to 14 million are on Instagram , proving both platforms are giants in the social media game here.

These platforms have been a massive help, especially during those long COVID lockdown days, keeping us entertained with everything from what a Korean office worker has for lunch to comedic sketches or even watching how families juggle breakfast for 10.

But here’s the thing – while these videos are often a blast, some content can lead you down the wrong path when it comes to financial advice.

#Mortgage: 69 Million Views and Counting

Believe it or not, around 30% of Australians look to social media for financial tips.

Research by Finder shows that many people actually act on this information, particularly younger users. In fact, almost 48% of Gen Z have made changes to their finances based on advice from content creators. Compare that to just 17% of Gen X , and it’s clear the younger generation is taking what they see to heart.

It’s really no shock. Look at the viral sensation that is #TikTokMadeMeBuyIt – sitting at a whopping 31.8 billion views and still climbing.

What’s surprising, though, is how many people head to these platforms for advice on home loans. In just the past year, #Mortgage content has racked up an impressive 69 million views on TikTok alone.

Can You Really Trust What You See on TikTok?

It’s fantastic that social media is helping to open up conversations around money. And sure, TikTok, Instagram, Facebook, and even LinkedIn can offer some valuable insights for anyone looking to get into the property market.

But, here’s the catch: anyone can post on these platforms. And when we’re talking mortgages, which are often the biggest financial decision you’ll ever make, getting dodgy advice could cost you a lot more than a few minutes of your time.

That’s why it’s crucial to know who’s behind the content.

In Australia, influencers offering financial advice have to be properly licensed before they can provide any advice on financial products.

Mortgage brokers are held to equally high standards, with strict industry guidelines around marketing and advertising. Many brokers also have the added support of compliance teams from their aggregators, making sure their content is both accurate and above board.

But don’t forget, TikTok and Instagram don’t just show you Australian content. Their algorithms pick up on your preferences and will keep feeding you similar posts – even from creators overseas where financial regulations can be vastly different, or, in some cases, non-existent.

The Takeaway

Whether you’re just starting to explore the property market or you’re looking to level up on the property ladder, social media can offer some useful tips. But when it comes to something as important as your mortgage, make sure the advice you follow is from a licensed Australian-based mortgage broker .

Better still, Osinski Finance is here to help you find the right home loan solution for your needs – whether you’re after fixed-rate home loans for stability, low doc home loans for flexibility, or low deposit home loans to get you into the market sooner.

Sure, we might not go viral with TikTok dance moves, but we’re unbeatable when it comes to providing expert, tailored home loan advice. Get in touch today , and let us help you secure a loan that works for you, faster than you can scroll through your next #HomeLoan post!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Are Fixed Rate Cuts a Sign of Lower Rates Ahead?

Wed, 11 Sep 2024 22:10:12 GMT

"When will interest rates drop?" It’s the question on everyone’s mind. As speculation grows around future cuts, recent trends in fixed rates could signal that variable rates may follow suit sooner rather than later.

Though approximately 80% of Australian households are currently on variable-rate mortgages, fixed-rate home loans are still worth a close look. Fixing your rate offers several advantages, such as predictable repayments, which can help simplify budgeting, and protection from potential rate hikes during the fixed period.

Currently, the downward trend in fixed rates is gaining a lot of attention.

Many Lenders Are Slashing Fixed Rates

A growing number of lenders, including several big banks, are reducing fixed rates across various terms, as outlined in Mozo’s latest banking round-up .

Major players like Macquarie Bank, Commonwealth Bank, HSBC, Bank of Queensland, and Westpac (along with its brands St.George, BankSA, and Bank of Melbourne) have all lowered some of their fixed rates. Smaller institutions such as Hume Bank, MOVE Bank, and Great Southern Bank have also joined in, adjusting their rates downwards.

What’s particularly exciting is that many of these reductions are substantial, with some lenders offering cuts of half a percentage point or more, especially on 2- to 3-year fixed terms.

Why Are Fixed Rates Dropping?

Both fixed and variable home loan rates are influenced by various economic factors.

For fixed rates specifically, lenders often set them based on their expectations of where interest rates are heading in the future. This makes fixed rates a useful indicator of what might come next in the world of home loan rates.

Commonwealth Bank is currently forecasting a 0.25% rate cut by the RBA toward the end of 2024. ANZ anticipates rate cuts starting as early as February next year , while NAB predicts a rate drop by mid-2025 , and Westpac expects several cuts starting in March 2025 .

The key takeaway? None of the major banks foresee rate hikes in the near future, which is good news for mortgage holders.

What Does This Mean for You?

The downward trend in fixed rates may indicate that variable rate cuts are not far behind. For now, though, fixed rates may actually be lower than variable rates depending on your lender, the term you choose, and your deposit size .

If you’re finding your mortgage repayments tough, locking in a fixed rate for 1, 2, or 3 years could provide some certainty and potential relief. However, you’ll need to weigh this against the possibility of missing out on potential variable rate reductions during that same period.

Moreover, if you're considering refinancing your home loan , it's important to explore all options before locking in a decision. Keep in mind that these predictions are just forecasts. They aren’t guaranteed to play out as expected, and it’s wise to prepare for potential changes ahead.

Another option to explore is splitting your home loan between a fixed and variable rate. This way, you can enjoy the stability of a fixed rate while still taking advantage of any future rate drops on the variable portion. At Osinski Finance , we will help you find out if fixing or splitting your home loan could work in your favour.

Ready to explore your home loan options? Contact us today !

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why 70% of New Home Buyers Are Loving This Loan Feature

Thu, 05 Sep 2024 00:18:58 GMT

Navigating the world of home loans can feel like wading through a sea of options. Among the plethora of features available, one has emerged as the clear favourite among new borrowers . With high interest rates and rising living costs, a growing number of Australians are turning to home loan offset accounts to make their money work harder for them.

According to NAB, nearly 70% of new home loan customers are choosing to include an offset account, a significant jump from 50% just two years ago. This popular feature can be a powerful tool for reducing interest payments on your home loan.

Understanding Offset Accounts

An offset account is essentially a transaction account linked to your home loan. Unlike a traditional savings account, where interest is earned, the balance in an offset account reduces the amount of your home loan on which interest is calculated.

For example, if you have a $400,000 home loan and $20,000 in your offset account, you only pay interest on $380,000 ($400,000 minus $20,000). This reduction in the principal balance can lower your monthly interest payments. As a result, more of each repayment goes towards reducing the principal of your loan, which further decreases the interest you pay in the following months.

Macquarie Bank highlights that, with a $20,000 balance in your offset account over a 30-year loan at a 6% interest rate, you could save over $87,000 in interest and cut more than three years off your mortgage term. Plus, the funds in your offset account are usually accessible if you need them for unexpected expenses.

Maximising Your Offset Account

To make the most of your offset account, consider the ‘three Cs’ approach: crediting, consolidating, and cutting back.

1. Crediting

Direct your salary into the offset account to maintain a higher balance.

2. Consolidating

Transfer funds from other savings accounts into your offset account. Although you might earn up to 5% interest in a savings account, the savings on your mortgage interest , especially if your rate is higher, could outweigh those earnings. Additionally, interest savings in an offset account are tax-free.

3. Cutting

Reduce unnecessary household spending to increase your offset account balance and maximise your interest savings.

This strategy has proven effective, with NAB reporting a substantial increase in offset account values—from $29 billion in 2020 to over $45 billion today, marking a 55% rise since the pandemic.

Is an Offset Account Right for You?

Despite their growing popularity, offset accounts might not be ideal for everyone. They sometimes come with higher rates compared to more basic loans. If you don’t maintain a significant balance in your offset account, you might end up paying more in fees than you save in interest.

Additionally, consider whether the funds in your offset account could be better invested elsewhere. For those becoming first-home buyers or looking at investing in a property , it’s important to weigh whether reducing your home loan balance or investing for future gains aligns better with your financial goals.

If you’re unsure whether an offset account suits your financial situation, get in touch with us today. Osinski Finance team can provide expert guidance to help you evaluate whether this feature could optimise your mortgage strategy and reduce your interest payments.

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Much Has Your Home's Value Increased?

Wed, 28 Aug 2024 22:49:14 GMT

When it comes to investing in a property , many of us have heard that it's a solid long-term investment. Interestingly, countless Aussie homeowners have seen their property's value increase fivefold over the span of a typical 30-year mortgage.

Ask any seasoned homeowner about their original purchase price, and they're likely to reveal a figure that seems shockingly low compared to today’s values. It's a common reflection for Australians, who often look back with relief and amazement at how much their property has appreciated.

This trend of rising property values isn't a recent development.

A Proven Track Record of Growth

Here’s a fascinating statistic: over the past century , residential property values in Australia have averaged an annual increase of 10.9%. While there are occasional dips and periods of stagnation, the overarching trend has been upward .

In dollar terms, this growth can be staggering. Take Sydney as an example. In mid-1992 , the median house price was $221,770. Fast forward to 2022, and the median value soared to $1,124,421. As of today , it stands at $1,473,038.

This pattern of substantial growth is evident across all our major cities.

How Much Has Your Home’s Value Increased Since Your Purchase?

What about more recent buyers? How has the value of homes purchased in the last few years changed?

CoreLogic’s research provides a snapshot of how national property values have evolved since the year of purchase, starting with the mid-90s. The longer you've owned your property, the greater the potential increase in value .

For instance, properties bought around 1995 could now be worth more than five times their original price, reflecting a 437% increase. Homes purchased in 2005 may have seen a 148% rise in value, while those bought in 2020 might have appreciated by 34%. Even properties purchased last year could have already experienced a 4% increase.

Here’s a quick overview of value increases by purchase year:

1995: 437%
2000: 308%
2005: 148%
2010: 94%
2015: 57%
2020: 34%
2023: 4%

Source: CoreLogic article . Direct link to graph here .

Why a Rising Property Value Matters

An increase in your home's value isn’t just about having bragging rights at your next social gathering. It’s a significant indicator of household wealth in Australia.

A growing property value can open doors to refinancing options , allowing you to secure a better home loan rate, or leverage the equity to invest in additional properties or achieve personal goals like funding education.

Start Your Property Journey with Osinski Finance

The key takeaway is that when you invest in property, whether as a first-time buyer or someone looking to upgrade, it's important to consider the future. Over time, today's purchase price may start to look like a real bargain in the future. Don’t let the fears hold you back, you might be thankful for your decision today.

Explore Osinski Finance , we can assist you through your property journey!

Contact us today to find the home loan that suits your needs or to explore how you can unlock the equity in your current property.

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Spring Brings a Flourish in the Property Market

Thu, 22 Aug 2024 00:45:25 GMT

With spring on the horizon, the property market is set to bloom. As the days grow longer and the weather warms up, buyers are emerging in force, making spring 2024 an ideal time for property transactions. Here’s how to gear up if you’re planning to buy in the coming weeks.

As we bid farewell to winter and embrace lighter wardrobes, sellers are gearing up to showcase their homes in their best light. Spring is traditionally a prime season to invest in a property , with homes looking their best as gardens flourish and the sun invites us outdoors. Plus, a spring purchase means you could settle into your new home just in time for the festive season.

Why Spring 2024 Is Especially Exciting

One of the standout reasons this spring is set to be particularly dynamic is the increase in property listings . CoreLogic reports that spring listings have surged by over 18% in the past decade, offering buyers a broader selection. Typically, home sales see an 8% uptick during this season.

This year, the trend continues, with a notable influx of real estate listings coming onto the market during autumn and winter, according to CoreLogic . This has contributed to a more balanced market compared to last year, when sellers had a distinct advantage.

However, despite the increase in options, quality homes are moving quickly. For instance, in Perth, the median time for selling a property is currently just 10 days , as highlighted by CoreLogic. Buyers who act promptly may gain a competitive edge.

Tips for Gaining an Advantage

To navigate the bustling spring market effectively, consider these three key strategies:

1. Create a Wish List

As you explore various properties, it’s easy to become overwhelmed. Simplify your search by listing your must-have features and differentiating them from desirable but non-essential ones. This approach helps streamline your search and ensures you focus on homes that meet your criteria.

2. Determine Your Budget

Accurate budgeting is crucial when buying a home. Seek advice to understand your borrowing capacity and establish a clear budget. This will help you focus on properties within your financial range and avoid unnecessary stress.

3. Get Pre-Approved for a Home Loan

Mortgage pre-approval signals serious intent and can significantly reduce stress during the home-buying process. It also empowers you to bid confidently at auctions by setting a firm limit on your highest bid.

If you need assistance with arranging a home loan pre-approval, we at Osinski Finance can tailor a loan that suits your needs.

Ready to Seize the Spring Property Boom?

As spring heats up, so does the property market. Whether you’re a first-home buyer or a seasoned property investor, now is the perfect time to get organised and ensure you’re ready to act when the right opportunity arises.

Reach out to us for a personalised discussion about your property goals, and let us assist you in finding a home loan that aligns perfectly with your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Unlocking Your Home’s Equity to Invest in Property

dave@99content.co (Dave Barbeler) — Wed, 14 Aug 2024 23:35:17 GMT

Looking to expand your investment portfolio but find that most of your wealth is tied up in your home? You might be able to use the equity in your property, thanks to recent market gains, to fund a new investment property. Let’s break it down.

Most of us have some financial goals we’re working towards. For many Australians, owning an investment property is one of them.

In fact, a significant number of Australians (21%) aim to invest in real estate as a way to build their wealth, according to the MLC Financial Freedom report . This goal is even more prevalent among younger generations , with 27% of Gen Zs and 23% of Gen Ys expressing this aspiration.

The trend isn’t just about aspirations; it’s also reflected in the market, with lending for investment properties increasing by over 30% in the past year, according to the Australian Bureau of Statistics .

It’s easy to understand why this is happening.

Over the last five years, rents have jumped by 39.7% , rental vacancy rates are extremely low at just 1.3% , and home values across Australia have risen 13.5% since January 2023.

How Recent Property Price Increases Can Benefit You

According to CoreLogic’s latest Pain and Gain report , property profits have reached a 14-year peak, with the median profit for homes resold in the first quarter of 2024 hitting $265,000.

But how can you tap into these gains without selling your home?

Here’s an example to illustrate:

Imagine you purchased a house for $750,000 five years ago, and thanks to recent property price hikes, it’s now valued at $1 million.

Let’s say your original loan was $600,000, and you’ve managed to pay it down to $500,000.

By refinancing your remaining $500,000 mortgage into a $700,000 loan (which is 70% of your home’s current value), you could unlock $200,000 in equity. This amount could then be used as a deposit for an investment property.

Keep in mind, banks typically allow you to borrow up to 80% of your property’s market value with this strategy.

So, if you refinanced to an $800,000 loan, you could access $300,000 in equity.

This approach enables you to step into property investing—potentially enjoying rental income, capital gains, and tax benefits—without needing to dip into your cash savings.

Even better, if your investment property appreciates, you can use the rising equity from that property to invest in more properties.

Other Avenues to Property Investment

There are various routes to becoming a property investor. You might have enough funds for a cash deposit, or perhaps you’re considering holding onto your current home and renting it out when you upgrade to a new one.

Alternatively, you may have different investment goals, such as using your home’s equity to invest in shares or boost your superannuation. What’s crucial is understanding the options that fit your situation.

Interested in learning more? Get in touch with us today to explore how Osinski Finance can start your journey as a property investor or become a first-home buyer.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Does Your Job Come with Home Loan Benefits?

dave@99content.co (Dave Barbeler) — Thu, 08 Aug 2024 00:26:32 GMT

Your job might offer more than just a paycheck. In fact, when it comes to securing a home loan , certain professions can receive favourable consideration from lenders. Let’s explore some occupations that come with potential home loan benefits.

One of the primary factors lenders assess when you apply for a home loan is your ability to manage repayments. For most people, this hinges on having a stable job with a consistent income.

However, not all jobs or income types are viewed equally by lenders, nor do they have the same loan potential . From nurses and essential workers to lawyers and accountants, various professions may enjoy unique advantages.

Essential Workers – Recognising Additional Income Sources

Our essential workers—nurses, firefighters, police officers, and ambulance officers—are the backbone of our communities. However, despite their vital contributions, essential workers often face challenges in buying a home near their workplaces , particularly within 15 kilometres of Sydney and Melbourne CBDs.

To help, several lenders are stepping up with tailored solutions.

Some banks offer home loans specifically designed for essential workers with reduced interest rates. Mozo reports that this allows essential workers to secure some of the lowest rates available.

Other lenders take a more flexible approach to calculating income, including 100% of overtime pay or adding allowances when determining loan eligibility.

The definition of ‘essential workers’ varies by lender but often includes:

Frontline ambulance officers
Paramedics
Firefighters
Police officers
Corrective services officers
Nurses
Aged care or disability workers
Teachers
Early childhood educators
Defence or military personnel

Lenders Mortgage Insurance (LMI) Waiver

Several major banks also offer other forms of support to make homeownership more accessible .

Westpac, for instance, may waive Lender Mortgage Insurance (LMI) for nurses and midwives with only a 10% deposit.

Typically, LMI is required when a deposit is less than 20%.

To qualify with just a 10% deposit at Westpac, certain professions must meet a minimum income requirement of $90,000 per year (casual incomes calculated over 48 weeks):

Audiologists
Chiropractors
Midwives
Occupational Therapists
Osteopaths
Physiotherapists
Podiatrists
Psychologists
Registered Nurses
Radiographers
Sonographers
Speech Pathologists
Optometrists
Pharmacists
Veterinary Practitioners

Additionally, for the following professions, there is often no minimum income requirement to secure a loan with a 5% deposit and no LMI:

Dentists
General practitioners
Hospital-employed doctors (interns, residents, registrars, staff specialists)
Medical specialists (as per the Medical Board of Australia)

Home Loan Perks for Professional Occupations

Home buyers in high-income professions may find it easier to save for a home deposit, but they too can benefit from a few home loan perks.

The most common perk is an LMI waiver , even with a deposit as low as 5%.

For example, purchasing an $800,000 home with a 5% deposit of $40,000 would usually incur an LMI premium of $35,000 .

LMI waivers are generally available to medical professionals, lawyers, and accountants , and can even extend to athletes and entertainers. Banks offer these waivers to build long-term relationships with these clients.

Secure Hassle-Free Loan with Osinski Finance

Navigating the mortgage market to find perks tailored to your profession can be time-consuming. And if your job involves shift work or long hours, like those of doctors or lawyers, spending your free time searching for the right mortgage deal is the last thing you want.

Save yourself the hassle by giving us a call at (08) 9511 1177! Osinski Finance can help you understand the unique benefits available to you across various lenders and home loans, whether fixed-rate or low-deposit .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why Multi-Bedroom Homes Are Gaining Appeal Among Investors

dave@99content.co (Dave Barbeler) — Wed, 31 Jul 2024 23:27:53 GMT

The recent cost of living surge is reshaping rental trends and influencing property investors’ decisions. Here's an in-depth look at the shifts in the rental and investment markets and why multi-bedroom homes are becoming increasingly attractive.

Lending to property investors has surged nearly 30% year-on-year as of May 2024, reflecting a robust investor presence in the property market. This surge is partly driven by rising property values, which have climbed 10.14% nationally since the lows of late 2022, resulting in significant capital gains for many investors.

However, successful property investment often involves targeting properties with strong tenant appeal. Recent findings from CoreLogic reveal a growing preference among renters for homes with more bedrooms.

Why Are Renters Flocking to Multi-Bedroom Homes?

As the cost of living escalates, renters are feeling the pinch. They are not only facing increased utility bills and higher grocery prices but also experiencing a national average rent increase of 8.2% over the past year.

To manage these rising costs, many renters are opting for larger properties. These properties often serve as sharehouses or multi-generational homes, offering a way to distribute rental expenses among several occupants. CoreLogic’s research supports this trend, showing that rents for multi-bedroom homes are climbing faster than those for smaller residences.

For instance, while rents for 1-bedroom units and studios have risen by 7.1% over the last year, and for 2-bedroom apartments by 7.9%, rents for houses with five or more bedrooms have surged by 8.7%.

Despite the higher absolute rents for larger homes, the cost per bedroom tends to be lower. On average, the weekly rent per bedroom in a 5-bedroom house is about $175 nationally, compared to $293 for a 2-bedroom unit and $541 for a 1-bedroom apartment.

What This Means for Investors

While multi-bedroom homes might offer higher rent increases , they aren't a one-size-fits-all solution for investors. Larger properties often come with a higher purchase price and potentially greater wear and tear, which could lead to increased maintenance costs.

Additionally, 4-5 bedroom homes are frequently located in outer suburbs, where price growth may be slower compared to inner-city areas.

Ultimately, the key for investors is to align their property purchases with their investment goals and preferences.

Get Expert Guidance for Your Investment

Selecting the right loan is crucial when considering an investment property . We, at Osinski Finance , can assist you in this process.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

New Opportunity for Kiwi Visa Holders: Low Deposit Home Buying Scheme in Australia

Wed, 24 Jul 2024 23:03:56 GMT

Exciting news for Kiwis dreaming of owning their first home in Australia! The renowned low-deposit home buying scheme has now been extended to visa holders from New Zealand. Here’s everything you need to know about this fantastic opportunity.

While New Zealand is known for its All Blacks, stunning glaciers, and landscapes worthy of a Hobbit adventure, Australia is offering something that might just match the thrill of bungee jumping in Queenstown.

Introducing the Home Guarantee Scheme (HGS)

Australia’s Home Guarantee Scheme (HGS) has been a game-changer for first-time home buyers. This scheme allows Australian citizens and permanent residents to purchase their first home with just a 5% deposit.

For those eyeing regional properties, there’s a specific version of the scheme designed for regional first-home buyers .

Single parents also benefit from this scheme, being able to purchase a home with as little as a 2% deposit.

Big News for Kiwi Visa Holders

Recent updates from Housing Australia reveal that New Zealanders holding a Special Category Visa (SCV) are now recognised as 'permanent residents' for the HGS. This is great news for those who have been eagerly waiting for such an opportunity.

How Does the HGS Work?

The Home Guarantee Scheme supports first-time home buyers and single parents by allowing them to buy a home with a deposit smaller than the usual 20%. The government steps in as a guarantor for the loan, eliminating the need for lenders mortgage insurance (LMI). This can save buyers between $4,000 and $35,000, depending on the property price and deposit amount.

Who Can Benefit from This Change?

Australia and New Zealand share a unique bond, with many Kiwis moving to Australia in recent years. In the 2022-2023 financial year alone, over 41,000 New Zealanders relocated to Australia on an SCV, translating to approximately 3,400 Kiwis arriving each month.

The SCV is a versatile visa that allows New Zealanders to visit, study, stay, and work in Australia. For many of the 670,000 Kiwis currently residing in Australia , it often serves as a pathway to Australian citizenship.

Confused About Eligibility?

If you’re wondering whether you qualify for the HGS, we’ve got good news. We’ve confirmed with Housing Australia that New Zealanders with an SCV can now apply for this low deposit scheme. There are, however, other eligibility criteria, including property price caps that vary across Australia.

Don't hesitate to reach out to determine your eligibility and navigate the application process. Never let the fear of rejection hold you back; we can provide detailed guidance on how to make the most of this opportunity.

Important Note: Not All Lenders Participate

It’s crucial to know that the HGS is not available through every lender. But you don’t have to worry, Osinski Finance can help identify which banks are participating in the scheme and find suitable home loan options from those lenders.

With limited spots available in the scheme and potential changes to eligibility, it’s a good idea to act quickly with a trusted mortgage broker .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Is Fear of Rejection Preventing You from Achieving Your Life Goals?

Wed, 17 Jul 2024 22:28:42 GMT

Feeling anxious about applying for a home loan ? You're far from alone. Recent data reveals that fear of rejection has deterred 20% of Australians from seeking financial assistance, including home loans, over the past year. Let's delve into the reasons behind this anxiety and explore strategies to enhance your chances of approval.

No one likes facing rejection. Yet, there are countless instances where we put ourselves at risk of it—from job applications to proposing to a loved one. The prospect of rejection can be daunting, but the potential rewards often outweigh the discomfort of being turned down.

The same principle applies when applying for a home loan. Yes, there’s a chance you might receive a ‘no’ from a lender. However, if you secure approval , you're one step closer to homeownership! A recent survey by Finder reveals that 19% of Australians have avoided applying for finance, including home loans, due to fear of rejection.

The Impact of Rejection on Your Credit Score

The most significant concern for many is how a loan rejection might affect their credit rating.

Let’s clarify this: being rejected for a loan doesn’t negatively impact your credit score —a rejection doesn’t even show up on your credit report.

What can impact your credit rating is the act of applying for a loan itself. When you submit an application, the lender performs a ‘hard enquiry’ on your credit report.

These hard enquiries can slightly reduce your credit score and may remain on your report for up to five years.

To avoid this, it’s wise to limit the number of loan applications you make. Ideally, focus on submitting a single, well-prepared application. This is where our expertise can make a significant difference.

Overcoming the Fear of Home Loan Rejection

Applying for a home loan can be stressful, especially given the stakes involved. But if fear of rejection is holding you back, Osinski Finance ’s expert help is your effective go-to solution.

We can assist you with how much you could borrow by navigating your credit report to identify any potential issues that might concern a lender. If your credit score is less than stellar, we can offer advice on improving it.

Remember, your credit score is just one aspect lenders consider. They also assess your overall financial health, including your income, household expenses, other debts, and various other criteria.

Get in touch with us . We'll review your financial situation comprehensively, address any issues with your application, and connect you with a lender and loan option that suits your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Discover Your Home Loan Potential in 2024

Wed, 10 Jul 2024 22:45:47 GMT

As housing prices continue to soar across many cities, prospective home buyers are facing higher mortgage amounts than ever before. In this guide, we'll delve into the current landscape of home loans across Australia, providing insights into average borrowing amounts by state and offering strategies to manage and reduce your loan balance effectively.

Impact of Rising Property Values

Despite economic challenges like rising interest rates and increased living costs, Australian home values have surged by 8% over the past year, adding approximately $59,000 to the average home's value , according to CoreLogic.

This growth benefits existing homeowners but poses challenges for buyers looking to enter the market, who may need larger loans to afford their dream properties. However, not all regions are experiencing uniform increases in loan sizes; some areas are seeing stable or even slightly smaller mortgage amounts.

State-by-State Breakdown

As of May 2024, the average new mortgage in Australia has reached a record high of $626,055 , according to the Australian Bureau of Statistics, up from $584,607 just a year earlier in May 2023. This figure highlights the financial commitment required, translating to approximately $3,875 in monthly mortgage payments for a 30-year principal and interest home loan at 6.3%.

New South Wales (NSW): $767,584 (up from $720,029 in May 2023)

Victoria (VIC): $601,891 (slightly up from $598,949 in May 2023, but below the peak of $651,364 in January 2022)

Queensland (QLD): $586,627 (a solid increase from $521,609 in May 2023)

South Australia (SA): $541,775 (a significant rise from $467,438 in May 2023)

Western Australia (WA): $538,860 (up from $472,080 in May 2023)

Tasmania (TAS): $462,324 (minimal change from $465,313 in May 2023)

Australian Capital Territory (ACT): $614,242 (up from $589,130 in May 2023)

Northern Territory (NT): $437,427 (up from $424,873 in May 2023)

Note that these figures illustrate significant variations in borrowing requirements across the country, reflecting local economic conditions and market dynamics.

Tips to Accelerate Your Loan Repayment

To manage your home loan effectively and potentially reduce its burden, consider these practical tips:

Utilise an Offset Account

By parking your savings in an offset account linked to your mortgage, you can reduce the interest charged on your loan balance, helping you pay it off faster.

Make Extra Repayments

Look for loans that allow additional repayments without penalties. Even small additional payments can accelerate your loan payoff and save on interest costs over time.

Switch to Fortnightly Payments

Changing from monthly to fortnightly repayments can result in making an additional month's payment each year, cutting down on your loan term and interest paid.

Get Personalised Mortgage Solutions at Osinski Finance

Navigating the complexities of home loans in today's market requires personalised advice tailored to your financial situation. Whether you're ready to buy and invest in a property or simply exploring your borrowing capacity, Osinski Finance is here to assist you.

Reach out to us today to discuss a mortgage solution that aligns with your needs and goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

50,000 Low-Deposit Opportunities Available: A Pathway to Homeownership for First Home Buyers and Single Parents!

dave@99content.co (Dave Barbeler) — Wed, 03 Jul 2024 22:28:05 GMT

The start of the new financial year brings great news for aspiring homeowners across Australia. An additional 45,000 spots under the Home Guarantee Scheme (HGS) have been allocated for first home buyers , alongside 5,000 spots specifically earmarked for single parents.

These spots are designed to help more Australians achieve the dream of owning their own home sooner. This is especially crucial today, where high property prices make saving a 20% deposit challenging for many young families.

The Home Guarantee Scheme, initiated by the federal government, offers a crucial leg-up into the property market by allowing eligible buyers to enter with as little as a 5% deposit. Since its launch four years ago, the scheme has facilitated over 160,000 Australians in purchasing or constructing their own homes .

This year, the HGS has expanded significantly, with an additional 50,000 spots announced for the 2024-25 financial year . This increase aims to meet the growing demand and support more individuals and families in securing affordable housing solutions.

Understanding the Home Guarantee Scheme

You may have asked yourself, “How can you buy your first home with a little extra help?” Let's explore the Home Guarantee Scheme and how it can benefit you.

What is the Home Guarantee Scheme?

The HGS acts as a guarantor for home buyers with small deposits , eliminating the need for costly lender mortgage insurance (LMI). This financial benefit can save buyers anywhere from $4,000 to $35,000, depending on the property's price and the deposit amount.

Who Does the Scheme Help?

The HGS comprises three distinct programs tailored to different types of home buyers:

First Home Guarantee

It supports first home buyers with a 5% deposit, with an additional 35,000 places now available starting July 1, 2024.

Regional First Home Buyer Guarantee

This aids first home buyers in regional areas with the same 5% deposit requirement, offering an extra 10,000 places for the current financial year.

Family Home Guarantee

Specifically, this assists single parents with a deposit as low as 2%, aiming to benefit up to 5,000 families in the coming year.

Am I eligible for the Home Guarantee Scheme?

Eligibility criteria include considerations such as maximum purchase price limits , which vary by city and regional area and are adjusted annually. To determine your eligibility and explore the requirements further, contacting us can provide personalised guidance through the process.

Participation of Banks and Mortgage Brokers

Do all banks support the Home Guarantee Scheme? The reality is that not all lenders choose to participate in the HGS. While there is a diverse selection of banks available, not all have opted into the program.

The Real Estate Institute of Australia suggests that consulting with a mortgage broker is the optimal way to determine eligibility and secure pre-approval for the scheme. Partnering with a mortgage broker provides a significant advantage in the property market, given their track record of securing up to 80% of HGS placements to date.

Own Your Dream House Sooner than Expected with Osinski Finance!

Feeling excited to secure your first home? Osinski Finance is here to guide you in the process. We streamline your journey with hassle-free application processing and expedited approval . Rely on us to navigate your path to homeownership smoothly, addressing all your questions and securing tailored home loan options from our trusted network of lenders.

For more information on purchasing your dream home, reach out to us or give us a call at (08) 9511 1177.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Are home prices expected to keep rising over the next year?

Wed, 26 Jun 2024 23:33:17 GMT

The past year has been a rollercoaster for property prices in Australia, defying expectations amidst economic challenges. According to CoreLogic , home values have surged by 8.3% nationwide despite the cost of living pressures and high interest rates.

Looking ahead, will this upward trajectory continue, or are we approaching a market cooldown? Domain’s latest forecast offers insights into what lies ahead for Australian property prices over the next 12 months.

Continued Growth on the Horizon

Domain predicts that Australian property prices will continue to rise until mid-2025, driven by several key factors. A limited supply of new homes coupled with a decrease in listings for sale , is contributing to a competitive market landscape. Additionally, robust buyer demand fueled by population growth and migration exerts upward pressure on prices.

Regional Variances

While overall growth is expected, the pace and direction of price movements vary across different cities.

Brisbane

After achieving a remarkable 16.3% increase in the past year, Brisbane is poised for further growth. Domain forecasts a 6-8% rise in median house prices, potentially reaching up to $998,500, while apartment values are also expected to increase by 4-6%.

Sydney

With a projected 6-8% growth rate, Sydney’s median house price could soar to $1.76 million, setting a new record. Apartments are anticipated to see a similar upward trend, reaching up to $855,000.

Melbourne

The Melbourne market is expected to stabilise somewhat, with house prices forecasted to grow between 0-2%, maintaining median prices between $1.03 million and $1.05 million. Units may fare better, with potential growth of up to 4%.

Adelaide

Adelaide is slated for substantial growth with a forecasted 7-8% increase in house prices, potentially reaching up to $984,000. Apartments could also see significant gains, pushing median prices beyond $500,000.

Perth

Following a notable 22% rise in home prices last year, Perth is expected to continue its upward trajectory with a projected 8-10% increase. Median house prices could reach between $840,000 and $856,000, while unit prices are anticipated to rise by 4-5%.

Canberra

Mild growth is anticipated in Canberra, with house prices expected to rise by up to 4%, and unit prices by 1-4%.

Considerations

While Domain’s forecasts provide valuable insights, they are projections subject to various economic factors. Factors such as a tightening job market or stagnant incomes could potentially apply downward pressure on prices.

Ultimately, the decision of when to enter the property market should align with personal readiness rather than market predictions alone. Understanding your borrowing power , eligibility for home loans , and finding the right financial fit are crucial steps in buying Australian property.

Planning Your Next Property Move? Let Osinski Finance Guide You

With Australian property prices expected to rise in the coming year, now is the time to plan your next move wisely. Whether you are a first home buyer or looking to refinance your home loan, Osinski Finance offers expert advice and personalised financial solutions to meet your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Rate Cuts Delayed: Prepare for a 2025 Timeline

Wed, 19 Jun 2024 21:06:47 GMT

We've all been eagerly waiting for rate cuts, but it looks like the celebrations will have to wait a bit longer. It turns out, the anticipated reduction in rates might not happen until 2025. Here’s why home loan rates could stay high for a while, and some steps you can take to manage your mortgage in the meantime.

In June, the Reserve Bank of Australia (RBA) once again kept the cash rate unchanged. Rates have remained stable since November of last year, and with no new rate decision expected until August RBA media release, interest rates will stay the same for at least another two months.

Homeowners finding it tough to handle their home loans with current interest rates are asking, "What happened to the discussions about rate cuts in 2024?" Here’s the latest update.

Why Rates Aren’t Moving?

A few months ago, major banks like Commonwealth Bank and Westpac were forecasting rate cuts as early as September. However, this now seems unlikely.

The primary reason is inflation. The RBA aims to reduce inflation to the 2-3% range. Currently, inflation is at 3.6% , which is nearly there but still not within the target range.

When Can We Expect Rate Cuts?

The RBA suggests it could take some time before inflation stabilises within the desired 2-3% range, which is when rate cuts might begin. While this isn’t a concrete timeline, the major banks have their own predictions.

Westpac and NAB now anticipate rate cuts starting in December, while CommBank market outlook had predicted a November rate cut but is increasingly doubtful. Gareth Aird, CBA’s head of Australian economics, noted the challenges posed by persistent inflation and a slowly adjusting labour market, suggesting a later start for rate reductions.

ANZ and Citi economists along with many other experts expect no rate cuts before 2025. Even if a December 2024 cut occurs, the benefits may not reflect in home loans until early next year. Additionally, the RBA’s June statement indicated it’s not ruling out another rate hike before any cuts.

Managing Higher Rates

With potential rate cuts appearing more distant, it is crucial to take proactive measures to manage your finances effectively:

Review Your Budget

Analyse your current spending to identify and reduce unnecessary expenses. This can free up additional funds to allocate towards essential payments.

Use an Offset Account

Consider depositing extra cash into an offset account . This can help reduce the interest on your loan, thereby lowering overall repayment costs.

Take Advantage of Tax Cuts

From 1 July, tax cuts for 13.6 million Australians will come into effect. This additional income can be directed towards your loan repayments to ease your financial burden and boost your borrowing power .

Seek Professional Advice

Consult a trusted financial advisor, such as Osinski Finance , to conduct a thorough review of your current home loan. This may reveal opportunities to switch to a more favourable loan, and potentially save you money in the long run.

Take Control of Your Financial Future with Osinski Finance

Don’t fear the distant rate cuts. What you can do now is prepare for what lies ahead. With Osinski Finance as your mortgage broker , you are at an advantage. We will help you navigate your current loan and provide expert tips so you can manage your financial future effectively.

Whether you’re considering refinancing , revising your budget, or looking into new loan options, our approachable team is ready to assist you— contact us today .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Embracing Regional Living: Is a Tree or Sea Change in Your Future?

Wed, 12 Jun 2024 22:02:52 GMT

Are you considering finding an affordable home in your suburb in the hopes of lowering your mortgage repayments? Well, here’s a new option that might be a better solution.

Picture breathing in fresh air, skipping bumper-to-bumper traffic, and enjoying more affordable home prices. Regional living offers these perks and more, including the potential to cut down on your home loan.

The classic song ‘Home among the gum trees’ is resonating with an increasing number of Aussies. According to recent research by the Commonwealth Bank , more city dwellers are relocating to the bush or the bay, with metro to regional moves now 20% higher than pre-Covid levels.

This trend highlights the numerous benefits regional towns and cities have to offer. So, what’s driving this shift?

The Appeal of Regional Living

Beyond a laid-back lifestyle and the fun of seeing wildlife like Skippy on your commute instead of endless traffic lights, a major attraction of regional living is more affordable housing.

Imagine trading your city apartment for a spacious country home, keeping more of your hard-earned money while enjoying a more relaxed way of life. Sounds amazing, doesn't it?

Popular Relocation Destinations

The Sunshine Coast in South East Queensland tops the list as the most favoured destination, capturing 16% of net internal migration in the past year. Other attractive regions include the Gold Coast, Wollongong, Newcastle, Lake Macquarie, Moorabool, Geelong, the Alexandrina region, the Fraser Coast, and Launceston.

Western Australia is also gaining popularity, with Busselton, Capel, Greater Geraldton, Northam, and Albany emerging as hotspots this quarter.

Comparing Regional Home Values to City Prices

According to CoreLogic , the median home value across Australia’s capital cities is around $864,780. In contrast, regional markets have a median value of $626,888, a significant difference of $237,892.

The price gap can be even larger, depending on the specific areas. Mastering fair pricing in real estate is a way of smart home buying. For example, in Sydney, the median house value is $1,441,957, while a house in regional NSW could cost around $760,000—a potential saving of about $680,000!

Lower Loan Repayments with Regional Living

Purchasing a more affordable home can also lead to reduced loan repayments and a lower stamp duty bill.

Consider the earlier figures: deciding between an $864,780 city home and a $626,888 regional home, with a 20% deposit of $173,000. Assuming a home loan rate of 6.4% (the current average principal and interest variable rate according to the Reserve Bank of Australia ) and a 30-year loan term, the initial mortgage for the city home would be about $692,000. This translates to monthly mortgage repayments of approximately $4,329.

For the regional property, the initial mortgage would be around $454,000, with monthly repayments of roughly $2,840. This means a monthly saving of $1,489 by moving to a regional area, freeing up extra money for your home, personal expenses, or lifestyle.

Considering Capital Growth

Predicting future property values is always uncertain. However, historical data can offer some insights. CoreLogic reports that since March 2020, regional property values have surged by 51.1% ($212,000) nationally, compared to a 31.5% increase ($207,000) in state capitals. In terms of dollar value, the capital gains have been relatively similar across both markets in recent years.

Ready for Your Home Among the Gum Trees?

While regional living isn’t for everyone, and moving from a capital city requires thorough planning and research, it could be the right move for those seeking to invest in a home property with a more manageable mortgage.

If you’re considering a tree or sea change, Osinki Finance can help you hasten the process without the hassle. We offer brokerage services in several locations , ensuring personalised assistance tailored to your regional relocation needs.

Get in touch with us to explore home loan options that can help you make the transition sooner. Your dream property is awaiting your arrival!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Discover Why 75% of Australians Choose Brokers for Home Loan Assistance

Wed, 05 Jun 2024 22:37:30 GMT

You may have encountered headlines suggesting a significant clash between major banks and mortgage brokers. However, the reality is quite the opposite. Our commitment is unwaveringly focused on putting you first, which is why an increasing number of borrowers, now three out of four, turn to us for home loan assistance .

Navigating a Sea of Choices

Today, borrowers face an abundance of options when it comes to home loans. With over 100 lenders on the market , finding the right loan tailored to your specific requirements and needs can be overwhelming. This is where your mortgage broker comes in, sorting through all the options to find the best fit for you.

For major banks, this heightened competition may squeeze profit margins, leading to dissatisfied shareholders. Despite recent articles in the Australian Financial Review suggesting otherwise, brokers are not at war with any specific bank.

As Anja Pannek, CEO of the Mortgage and Finance Association of Australia (MFAA) , aptly stated, "Positioning banks as competing with brokers is like saying Hilton hotels are competing with travel agents, instead of Hyatt and Sofitel. It completely misrepresents how the mortgage broking industry works".

The Value of Mortgage Brokers

Mortgage brokers streamline the home loan process, making them the preferred choice for 74.1% of home buyers . But the benefits extend beyond finding a competitively-priced loan. Here are three additional ways mortgage brokers can support you.

Acting in Your Best Interest

Your mortgage broker is legally obligated to act in your best interest. This Best Interests Duty means they must offer home loan options that fit your needs. Unlike banks, brokers are bound by law to put your interests first, ensuring the loan you choose is truly beneficial for you.

Guiding You Through the Process

Purchasing a home is likely one of the biggest investments you will make. While it may be a rare event for you, brokers assist people through this process every day. They serve as trusted guides, helping you navigate the complexities of buying a home with confidence.

Brokers can assess your borrowing capacity, provide advice on budget adjustments, and clarify complex topics such as lenders' mortgage insurance or auction preparations. Their goal is to mentor you at every stage of your property journey.

Providing Long-Term Support

Your relationship with your home loan will last for years, and your mortgage broker will be there every step of the way. Regular home loan reviews ensure that your loan remains the best option as your circumstances change.

When you're ready to take new steps—whether renovating, buying another home, investing in rental property, or refinancing—your broker will guide you through the process.

Leverage the Broker Advantage

Curious about how a mortgage broker can help you? At Osinski Finance , we specialise in streamlining the home loan process, making it quicker and easier for you to secure financing. Whether you're a first-time home buyer or looking to invest in a property , our team provides expert guidance tailored to your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Grandparents Stepping Up: A New Trend in Home Buying Support

Wed, 29 May 2024 22:58:45 GMT

Grandparents have always been a source of love and generosity, often expressed through birthday money and small gifts. However, a growing number of grandparents are now providing substantial financial support to help their grandchildren buy their first homes.

Many of us cherish memories of sneaking treats from our grandparents, but today, those gestures are evolving into significant financial contributions. According to research by Compare the Market , nearly 75% of Australian grandparents are financially assisting their families. Specifically, 13% are lending money, 9% are helping with household expenses, and about one-in-10 are supporting their grandkids in purchasing their first homes.

This trend shows that the bond with grandparents remains invaluable, extending far beyond childhood treats.

Ways Grandparents Can Assist

In today's challenging property market, it's common for first-time home buyers to seek family support, which can manifest in various ways. One method is having a close relative act as a guarantor for the first home buyer’s loan .

This approach involves significant risk for the grandparents, as the guarantor is responsible for the debt if the borrower fails, potentially placing grandparents in a dangerous financial position.

Another option is gifting money, provided the grandparents can afford it. This can significantly aid in growing a deposit or covering initial costs like lenders' mortgage insurance.

Considerations and Cautions

A monetary gift from grandparents can be very helpful and doesn't need to be huge to make a difference. However, banks might question a large deposit in your account, thinking it could be a loan instead of a gift. To avoid any issues, grandparents should write a letter explaining that the money is a gift and there is no need to pay it back.

It's also crucial that grandparents are of sound mind when making such gifts to prevent financial strain on their retirement funds or conflicts with other family members.

Seek Professional Advice

Buying your first home is a major milestone, made even more special with family support. However, this support needs to be carefully managed to avoid any potential issues. Osinski Finance can help you navigate the process and secure a first-time home buyer loan , ensuring you meet all regulations and enjoy peace of mind.

Contact us today to explore the various ways your family can assist you in securing your first home while ensuring everyone's best interests are protected.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Key Insights You Need Before Making a 'Subject to Finance' Offer

Wed, 22 May 2024 22:39:06 GMT

Are you uncertain about securing a home loan , but you have found a house you absolutely love? Making an offer 'subject to finance' might be your best bet. Here’s what you need to know.

Imagine this: You've discovered your dream home and don't want to risk losing it to another buyer. So, you sign the contract and put down a deposit, but securing the mortgage isn't guaranteed. This is a nightmare scenario for many home buyers, as failing to get loan approval could mean losing your deposit.

One potential solution is to include a 'subject to finance' clause in your offer.

The Basics of a 'Subject to Finance' Offer

Adding a 'subject to finance' clause to the sale contract means that the buyer has the option to withdraw from the sale without forfeiting the deposit if they cannot secure mortgage financing within a specified timeframe. Sellers, however, won’t wait indefinitely, and the period to secure loan approval is often quite short, sometimes just a few days.

This clause can alleviate the stress of a last-minute scramble for financing, which might otherwise force you into accepting an unsuitable loan.

Potential Drawbacks

There are downsides to consider. Sellers are not obligated to accept offers with a 'subject to finance' clause. In a hot property market, where homes can sell in as little as 10 days, according to the CoreLogic Report , sellers may be less inclined to agree to such conditions. Additionally, if you're purchasing at an auction, sales are typically unconditional, leaving no room to alter the contract.

Given these challenges, consulting with Osinski Finance before house hunting can be incredibly beneficial. Pre-approval of your loan, for instance, can significantly reduce the uncertainty regarding finance.

Should You Buy Before Selling?

A common dilemma when considering a move up the property ladder is whether to sell your current home before buying a new one. The proceeds from your home sale can reduce the need for a 'subject to finance' offer.

However, if you find a new home before selling your current one, a bridging loan might be a solution. This type of loan covers the financial gap between the purchase of your new home and the sale of your old one. Typically, bridging loans require only interest payments rather than principal and interest, but they often come with higher interest rates compared to standard home loans.

Reach Out to Us

Buying a new home involves meticulous planning. Thus, having professional assistance is to your advantage. Contact us today to simplify your purchasing process. Whether you need help navigating 'subject to finance' offers or understanding bridging loans, Osinski Finance can help make your upgrade significantly less stressful by clarifying your options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Overlooked by the Latest Budget? Here Are Four Ways to Advance

Wed, 15 May 2024 22:33:26 GMT

If the recent federal government budget didn't quite hit the mark for you, you're not alone. Many are left seeking ways to boost their financial situation despite limited direct benefits. Here are four strategies to help you progress towards your property goals now.

The 2024 Federal Budget: What’s in It for You?

The new federal budget is out, but it might not seem like there's much in it for the average person. For instance, the $300 annual energy rebate can help with electricity bills, translating to about $75 per quarter—helpful, but not a game changer.

Fortunately, you don't have to rely solely on the federal budget to improve your financial outlook. Here are four actionable steps to help grow your wealth.

1. Assistance for First Home Buyers: Explore Your Options

If you're feeling let down by the budget's lack of new measures for first home buyers , there's still a wealth of assistance schemes available. Consider the following:

The Home Guarantee Scheme allows eligible first home buyers, regional Australians, and single parents to purchase a home with a low deposit (between 2% and 5%) without paying lenders mortgage insurance.

The First Home Owner Grant typically offers $10,000, but this can increase to $30,000 depending on your state, for those buying or building a new home.

Additionally, many states offer stamp duty concessions, and there's the First Home Super Saver Scheme , which lets first home buyers use their superannuation to save for a deposit.

Unsure of your eligibility? Reach out to us to discover which first home buyer schemes you can utilise.

2. Homeowners: Achieve Rate Relief Sooner

Why wait for the Reserve Bank of Australia to cut rates when you can potentially lower your own? Many homeowners are taking proactive steps, with around $16.02 billion in home loans refinanced in March 2024 alone. This shows that switching to a lower rate home loan can still yield significant savings.

3. Property Investors: Leverage Your Home’s Equity

Lending to property investors has surged by 31% over the past year , driven by an 11% increase in property values since January 2023. This rise in values has boosted homeowners' equity substantially.

This equity can often be used in lieu of a cash deposit to invest in additional properties. Contact us to explore how you can unlock your home equity and step into property investment .

4. Upcoming Tax Relief: Stage 3 Tax Cuts

The federal budget confirms that 13.6 million Australians will benefit from tax savings starting July 1. These Stage 3 tax cuts are expected to provide an average annual tax saving of $1,888 , or about $36 per week.

While this might not revolutionise your weekly budget, it can increase your borrowing power, whether you're buying your first home, upgrading, or investing. According to RateCity , a single person earning $100,000 could see their borrowing power increase by $21,000, and a couple earning a combined $150,000 could see a rise of nearly $30,000.

Reach Out for More Information

If the federal budget hasn't met your expectations, it's time to take control of your financial future. Whether you're a first home buyer, a homeowner looking to refinance , or an investor aiming to expand your portfolio, Osinski Finance can assist you at every step.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Low Deposit Schemes: Accelerating Your Path to Homeownership

Wed, 08 May 2024 22:20:33 GMT

The hurdles towards homeownership can often make your dream feel impossible. From increasing property values each month to the relentless grind of saving for a hefty deposit, the dream of owning your own home can seem distant. However, there's a game-changing solution that has helped over 150,000 families turn the key to their own front door years ahead of schedule.

Enter the federal government's Home Guarantee Scheme (HGS) , a beacon of hope for first-time home buyers , single parents, and regional Australians wanting to get into the property market with only a small part of the usual deposit.

Breaking Down the Scheme

Home Guarantee Scheme (HGS) has the ability to purchase a home with a low deposit, without the burden of lenders mortgage insurance (LMI). This plan has three parts made for different groups of buyers:

First Home Guarantee : Designed for aspiring homeowners making their first step into the property market.
Regional First Home Buyer Guarantee : Geared towards those seeking homeownership outside major metropolitan areas.
Family Home Guarantee : A lifeline for single parents striving to secure stable housing for their families.

While the specifics may vary, the scheme's goal remains consistent, which is to provide a pathway to homeownership that is both accessible and financially feasible. With this scheme, first home buyers may need as little as a 5% deposit , while solo parents can buy with just a 2% deposit.

It's important to note that the HGS doesn’t provide a cash payment or a deposit for a home loan. Instead, the Federal Government guarantees the loan, which is the key to buying with a small deposit while avoiding LMI.

Unlocking the Door to Opportunity

The HGS works by speeding up your way to owning a home. Usually, according to Domain's latest First Home Buyer Report , saving up for a hefty 20% deposit can take around six long years. But with the HGS, buyers can jump into the market about four years sooner on average. This saves them from endless savings and shields them from rising property prices that could push their dream home out of reach.

Navigating the Terrain

Of course, like any game-changing initiative, the HGS comes with its own set of rules and regulations. Eligibility criteria, including income thresholds and property price caps, vary from state to state. Moreover, not all financial institutions have thrown their hat into the ring, making it essential to partner with experts who can guide you through the process.

Seizing the Moment

Investing in a property can be daunting. Especially, opportunities abound in a property market, but vacancies are limited, and timing is of the essence. With places in the scheme filling up rapidly each financial year, there's no time to waste.

If you're eager to explore the possibility of homeownership with just a 5% deposit and zero LMI, Osinski Finance can help you navigate how the HGS skyrocket your homeownership journey.

So why wait? Contact us today !

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Boost Your Borrowing Power: Tax Cuts as Your Financial Game Changer!

Wed, 01 May 2024 22:46:48 GMT

As Stage 3 tax cuts loom closer, Australians are gearing up for some tax relief starting July 1st. Beyond the political noise, it's worth noting that these cuts could do more than just save you money. They could actually supercharge your borrowing power, paving the way for new opportunities in owning a home and managing your finances more flexibly.

According to government estimates, approximately 13.6 million Australians are set to benefit from these tax alterations. The magnitude of your savings hinges on your income bracket. For instance, individuals earning around the national average of $73,000 annually stand to pocket a yearly tax reduction of $1,504 . Meanwhile, those with a $100,000 income could expect to trim their tax bill by $2,179 per year.

For many households grappling with the challenges of managing daily expenses, these tax cuts are a timely reprieve. However, their impact extends beyond immediate financial relief. If you're eyeing the property market, you might find an unexpected bonus in the form of increased borrowing power.

What Exactly is ‘Borrowing Power’?

But what exactly is borrowing power, and how is it relevant?

It’s essentially the maximum amount a lender is willing to loan you, considering various factors, such as your deposit size , household expenditures, and after-tax income. The higher your after-tax income, the greater your borrowing power becomes. This could help you invest in a property sooner or afford a nicer property.

Are Tax Cuts Your Financial Game Changer?

Here’s a straightforward breakdown:

If you earn $100,000 a year, the tax cuts could potentially increase the amount you can borrow by $21,000 . For couples bringing in $150,000 together, that boost could be almost $30,000. Whether you're aiming to buy your first home or upgrade to a bigger one, these tax changes could be just what you need to make it happen.

Even if you're not actively seeking to borrow more, the extra cash in your pocket could ease the burden of current mortgage repayments , offering a sense of financial relief.

Alternative Strategies to Enhance Your Borrowing Power

Of course, waiting for tax cuts isn’t the only strategy to enhance your borrowing power. Here are some additional tactics you might consider:

Budget Trimming

Cutting back on unnecessary spending can free up more money for your deposit. Lenders pay close attention to your household expenses when deciding if you qualify for a home loan . Trimming those unnecessary costs could boost how much you can borrow.

Credit Card Management

Lenders evaluate the maximum limit on your credit card rather than just the outstanding balance. Requesting a lower credit limit or getting rid of your credit card after paying it off can increase how much you can borrow.

Income Augmentation

While it may require some effort, increasing your income through extra shifts, negotiating a raise, or pursuing side gigs can substantially elevate both your bank balance and borrowing power.

Discover Your Borrowing Power with Osinski Finance

While online calculators offer a rough estimate of your borrowing capacity, they fail to consider the nuanced criteria of individual lenders and your unique financial circumstances. That’s where we come in; at Osinski Finance , we offer clear and straightforward details of borrowing power.

By understanding your expenses, aspirations, and property preferences, we can provide tailored guidance to unlock your full borrowing potential. Connect with us today for fast and hassle-free loan assistance !

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Mastering Fair Pricing in Real Estate: Your Guide to Smart Home Buying

Wed, 24 Apr 2024 23:03:13 GMT

Dreaming of your perfect home is exhilarating, especially if you are a first-time home buyer . The reality check of its price tag can be daunting. How do you ensure you're not overpaying and straining your budget? Let's explore the strategies that empower you to make informed decisions while safeguarding your financial future.

Understanding the Significance of Fair Pricing

Overpaying for a property can potentially become a long-term financial burden.

The excess amount may translate into higher loan repayments, stretching your budget thin, especially amidst fluctuating interest rates. Moreover, an inflated purchase price risks a valuation shortfall, leaving you with an unexpected financial gap.

So, how do you discern fair pricing from inflated figures?

Harnessing the Power of Research

While professional valuations offer precision, they come at a cost and with a time delay. A cost-effective alternative is leveraging online resources like realestate.com.au or domain.com.au to gauge median property values in your desired locale. These platforms provide invaluable insights, though nuances such as lot size, amenities, and energy efficiency demand deeper research.

Key Factors Influencing Market Value

Beyond superficial features, several factors sway a property's market value.

Consider aspects like lot size, bedroom-bathroom ratio, energy efficiency, and orientation. Pay heed to subtle nuances—street parking availability, neighbourhood ambience, and potential developments—that can significantly impact property worth.

The Real Deal: Recent Sales Data

While listing prices sets expectations, it's the final sale price that defines market value. Analyse recent sales of comparable properties to gauge realistic benchmarks. Carefully examine the sold listings, emphasising similarities with your ideal home, to fine-tune your pricing radar.

Embrace Negotiation with Confidence

Armed with research-backed insights, negotiate assertively. If the asking price feels inflated, don't hesitate to counteroffer. However, be mindful of swift action—prolonged negotiations risk losing out to competitors eyeing the same property.

Empower Your Purchase Journey with Pre-Approval

Navigating real estate pricing demands a blend of research, intuition, and negotiation skills. Master these elements with Osinski Finance , where you will secure a fair deal and embark on your homeownership journey with confidence and peace of mind.

Don't overlook the strategic advantage of home loan pre-approval . It streamlines your buying process by offering a defined budget and empowering you to pounce on promising opportunities.

Don’t wait for your competitor to get in line first. Book an appointment now for a speedy home loan pre-approval !

Disclaimer : The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Never Forget Your Home Loan Interest Rate!

Wed, 17 Apr 2024 22:40:18 GMT

Do you ever find yourself struggling to recall your home loan interest rate amidst the flurry of everyday life? It's a common occurrence—remembering where you placed your car keys or the name of the latest celebrity scandal seems far easier than keeping tabs on your financial obligations. However, unlike these trivial details, your home loan rate is a crucial piece of information that shouldn't slip your mind, no matter the occasion .

Your home loan repayments likely constitute one of the largest expenses in your household budget. Yet, astonishingly, a significant portion of mortgage holders have lost track of what interest rate they're currently paying.

According to a recent report by Mozo , a staggering 42% of mortgage holders are unaware of the interest rate on their home loan. This oversight can have costly consequences for homeowners.

How Does Your Loan Rate Compare?

Mozo's findings reveal that one in five homeowners has never compared rates since taking out their loan. While your home loan might have offered a competitive rate when you first signed up, the mortgage market is constantly evolving. With the cash rate at its highest level since late 2011 , there's no place for being complacent.

To gauge where your home loan rate stands, a quick check of your latest loan statement should provide the necessary details. Alternatively, reaching out to us directly can also clarify your current rate.

For context, the average home loan interest rate for owner-occupiers currently sits at 6.4%, with new home loans at 6.3%, as reported by the Reserve Bank of Australia .

Why Regularly Reviewing Your Home Loan is Necessary

Reviewing your home loan isn't just about the interest rate. Your financial needs and lifestyle may have changed since you were a first-time home buyer and successfully secured your mortgage. Hence, regularly reassessing your loan ensures it still aligns with your current circumstances and preferences.

Whether it's conducting an annual review or reassessing after a major life event like starting a family, understanding your loan's performance—both in terms of rate and features—is essential.

Our team can facilitate a comprehensive home loan review, providing insights into your current rate, assessing if your loan offers the features you require, and exploring potential savings through refinancing .

Consider Refinancing with Osinski Finance!

If you've been contemplating whether refinancing could offer better terms , don't hesitate to contact us .

Osinski Finance can guide you through the process, helping you determine if refinancing aligns with your financial goals and showcasing potential savings by switching to a new loan or lender.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Millennials Take the Lead: A New Era in Australian Real Estate

Wed, 10 Apr 2024 21:38:44 GMT

Contrary to conventional wisdom, it's not the seasoned veterans of real estate ventures who are at the forefront. Instead, it's the younger generation, defying expectations and making their mark in the Australian property market.

Investing in a property game remains robust, as highlighted by recent data from the Australian Bureau of Statistics, indicating a significant 21.5% uptick in new investor loans compared to the previous year. This surge in investment home loans constitutes over half of the overall growth in new loans, underscoring the allure of property as an investment avenue.

Younger Property Investors on the Lead

What's interesting is who's driving this surge. According to the Commonwealth Bank , Millennials (those born between 1981 and 1996) are leading the charge. In fact, almost half (46%) of the bank's new property investors in 2023 are Millennials, and many are doing it on their own, without a partner.

But it's not just Millennials making moves. Generation X (1965 – 1980) is also getting in on the action, making up a big chunk, accounting for 37% of CommBank's new investment loans.

Get to Know Rentvesting

A new trend called "rentvesting" is gaining popularity among investors. It's about buying properties you can afford, often smaller ones in cheaper areas, while renting where you want to live.

According to the information provided by CommBank, many investors are adopting this strategy, and it makes sense. On average, investment loans amount to slightly more than $528,000, which is lower than the average loan size of $624,000 for owner-occupiers .

This approach, rentvesting, not only helps you get into the market sooner but also gives you the chance to earn rental income, making loan payments easier. Plus, as your investment property grows in value, it can become a stepping stone to being a homeowner .

The Current Market Conditions is Favorable for Investors

The property market right now looks promising for investors. Rental vacancy rates are at historic lows of just 0.7% nationwide , and there are more property listings in major cities . Rents have gone up a lot at 11.4% in the past year across our state capitals.

Many are anticipating that interest rates will likely decrease later this year, CoreLogic says otherwise. They suggest that property values are expected to keep rising, potentially leading to good profits for smart investors.

Unlock Your Potential in the Thriving Property Market Today!

The landscape of Australian real estate is undergoing a transformative shift, with Millennials and Generation X leading the charge in property investment. Through innovative strategies like rentvesting, these younger investors are reshaping traditional paradigms and seizing opportunities in the market.

Ready to join the ranks of successful property investors? Osinski Finance can help you all the way through. Nothing beats having a professional mortgage broker by your side! Reach out to us today to explore your options and take advantage of the favorable market conditions. Whether you're a first-time home buyer or looking to expand your portfolio, now is the time to make your move in the dynamic world of Australian real estate.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why offset accounts are hitting new highs

Wed, 03 Apr 2024 22:38:18 GMT

Spare cash can be tight right now (cost of living crunch, anyone?). But if you’ve still got some savings plus a home loan, there’s a way you could make your surplus funds work harder.

Ever heard of an offset account?

They’re becoming an increasingly popular add-on feature to home loans, with new data showing that homeowners are stashing money in their offset accounts at a record pace.

In fact, balances in offset accounts have increased to 11% of credit limits , the highest share since APRA started collecting data on this particular stat in March 2019.

This essentially means that, on average, people with offset accounts are only paying interest on 89% of their mortgage each month.

So how do home loan offset accounts work?

An offset account is a cash account linked to your home loan.

The bank doesn’t pay you interest on the offset account. Instead, the balance of the account is deducted from (or ‘offset’ against) the balance of your home loan when loan interest is calculated.

For example, say you have $20,000 in an offset account and a home loan worth $615,000, which is about the size of the average new mortgage Australia-wide .

Instead of monthly interest being based on the full $615,000, the lender will only charge interest on $595,000 – that’s the $615,000 loan minus the $20,000 in the offset account.

This means you pay less loan interest each month.

And there’s an added bonus: because your loan repayment amount stays the same, more of each payment goes towards paying down the loan principal, which in turn helps to reduce next month’s interest cost.

And so on and so forth.

In this way, offset accounts are a way for borrowers to swing the mortgage pendulum more in their favour, with savings on interest plus the potential to pay off their home loan sooner.

Why are offsets so popular right now?

Long story short, offsets are increasingly popular right now in no small part due to high interest rates.

And because no interest is paid on the balance of the offset account, there is no tax impact.

That’s quite different from having a separate savings account, where a high income earner can lose a sizeable chunk of their interest earnings to tax.

The icing on the cake is that the home loan interest rates that lenders charge are typically higher than the interest returns they pay on savings accounts.

This means offset accounts can let borrowers make their spare cash work harder by saving more on loan interest than they could earn with a regular savings account.

Last but not least, some lenders allow you to have multiple offset accounts (with debit cards attached!) linked to the one home loan, which can allow you to put all your money to work each month – as opposed to having it in different buckets across a number of low-interest transaction accounts.

What to consider with offset accounts

First and foremost, the money you put into your offset account is potentially money you could be investing elsewhere.

So you’ll have to weigh up whether that money is better served by helping you pay off your home loan sooner, or investing towards your future in other assets.

Secondly, it’s important to be confident you are paying a competitive home loan interest rate.

That’s because offset home loans may come with loan fees and/or higher interest rates than more traditional loans. Not always, but sometimes.

Last but not least, offset accounts don’t tend to work with fixed-rate home loans. But … there are ways you could split your home loan so that it’s part fixed and part variable (with your offset account attached to the variable side).

That’s why talking to us about your home loan needs is important.

We can compare across our wide panel of lenders to help line you up with a loan that matches your needs – and discuss whether an offset account might be a suitable option for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Homeowners Gaining a $71,000 Wealth Surge (on Average!)

Wed, 03 Apr 2024 21:30:15 GMT

Now is the perfect time to invest in a property ! It's almost unbelievable how the property market continues to defy expectations, isn't it? Despite economic challenges and rising interest rates, home prices have not only held steady but surged over the past year.

This leaves homeowners across the nation feeling a little bit richer since January 2023 – $71,832 richer, to be precise, according to CoreLogic's latest data . That's a remarkable 10.2% increase in just 14 months, averaging out to a monthly boost of $5,130. Quite a significant figure, especially when compared to the average monthly earnings of a full-time Australian worker after tax , which stands at $6,565.

But beyond the mere satisfaction of seeing your property appreciate in value, rising home prices can open up a world of financial opportunities for homeowners.

Unlocking the Wealth Potential of Your Home Equity

When your home's value increases, so does your home equity – provided your mortgage remains the same. Home equity is essentially the difference between your property's market value and the remaining balance on your mortgage.

For instance, if your home is valued at $1,000,000 and you still owe $500,000 on your mortgage, your home equity amounts to $500,000. However, home equity is more than just a mere number on paper but it can serve as a valuable asset that can be leveraged to further your financial goals.

Maximising Your Home Equity

Here are three strategies to help you make the most of your newfound home equity:

Refinance for Savings

With higher home equity, refinancing your mortgage to secure a better interest rate or more favourable home loan terms can lead to significant savings over time. Additionally, features like offset accounts can help you pay off your mortgage sooner, providing even greater financial benefits.

Investment Opportunities

Your increased home equity can serve as a substantial deposit for purchasing an investment property. By venturing into the world of real estate investment, you will gain from rental income, potential tax advantages, and the long-term appreciation of your property assets.

Renovation Financing

Want to enhance your property's value through renovations? Tap into your home equity to fund these projects. Whether it's a kitchen remodel or a backyard overhaul, utilising your equity allows you to make improvements that can further boost your home's worth.

Understanding Equity Release

Although the concept of "cashing out equity" may sound complex, it's quite straightforward.

Consider this scenario: You purchased a home for $800,000 three years ago, and it's now valued at $1 million. With an original mortgage of $600,000, which you've diligently reduced to $500,000, you could refinance your loan to access your increased equity.

By refinancing your home loan to $700,000 (70% of your property's new value), you could unlock $200,000 to finance your renovations or invest in additional properties.

Remember, most banks allow borrowing up to 80% of a property's value, potentially providing even more equity to utilise.

Ready to Take Advantage?

If you're a homeowner looking to make the most of your newly enlarged home equity, don't wait any longer. At Osinski Finance , we can help you unlock the full potential of your home equity and put it to work in ways that can help you boost your personal wealth. Whether you are a first home buyer opting for a low deposit loan , want to refinance to save on interest, fund an investment property, or fund renovations, we are here to guide you every step of the way.

Get rid of your fears ! Explore how your home equity can work harder for you, and don't hesitate to reach out to us . We can provide a comprehensive assessment of your equity position and tailor a strategy to help you achieve your financial objectives.

Don't miss out on the opportunity to leverage your increased wealth and pave the way towards a brighter financial future with a professional mortgage broker .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

FOMO, FOBO and FOOP – how they can hold you back

Wed, 27 Mar 2024 21:33:40 GMT

Nobody likes missing out on a good thing. But then again, who likes overpaying? So how do you strike the right balance when both fears can work against one another?

The property market rarely stands still. Interest rate movements, the number of homes listed for sale, and even the time of year can all drive shifts in the market.

And change plus commitment isn’t something we’re all comfortable with.

It can even see us put mental traps in place that mean we panic about missing out on a good buy, or alternatively, we convince ourselves it’s better to sit things out on the sidelines.

Let’s take a look at three mind games that can work against home buyers – and how you could beat them.

Fear of missing out – uh oh, FOMO

FOMO can be a real thing for home buyers, and it’s possibly starting to have an impact on the property market once more.

According to REA Group , today’s buyers are being gripped by a sense of urgency to make their move into the market.

The reason?

Growing expectations of interest rate cuts are sparking concerns that property values may soon skyrocket again.

Already, research firm CoreLogic says market data points to further growth in home prices.

The result is that autumn is shaping up as a particularly busy season as buyers look to race in before values head higher.

So should you sprint into the market too?

Well, before racing in to buy a home, have a chat with us and we can let you know if you’re home loan ready today.

Fear of better options – let go of FOBO

Some buyers never quite get into the market because of nagging doubts that an even better property could come along.

The thing is, no home is perfect. Buyers often find a bit of compromise is what gets them into the market.

To avoid FOBO, jot down the essential features you’re looking for in a home. Then back it up with a list of nice-but-not-necessary features.

If you can find a property that ticks the boxes for all, or most, of the must-haves you can be confident you’re buying a place that will suit the majority of your needs.

Fear of over-paying – forge a path past FOOP!

It’s possible that humans have wrestled with the question “am I paying too much?” for centuries.

No one wants to pay over the odds for their home.

However, this shouldn’t freeze you into taking no action at all.

Two simple steps could help dispel concerns about whether you’re paying too much for a property.

First, do plenty of research and check out comparable home values in the area you plan to buy in. It can help you identify if the asking price for a place is reasonable or over-the-top.

Remember, you can always attempt to negotiate on price – especially if you have home loan pre-approval, which shows sellers you’re a serious buyer.

Second, and perhaps more importantly, remember that property values typically rise over time.

For example, data from SQM Research shows that back in 2009 the average asking price for a house in Sydney was about $755,000. Fast forward to March 2024, and that figure has jumped to more than $1.9 million.

Hence the saying: “time in” the market generally beats “timing” the market.

Because if you plan to hold your home or investment for the long term, chances are you’ll look back at what you paid, and be glad you purchased when you did.

But … to help make sure you don’t purchase a house that’s beyond your means, get in touch with us today and we can help you work out your borrowing power.

In turn, you’ll be able to work out what your home buying budget is, and what your monthly home loan repayments will likely be.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Understanding Construction Loans: A Guide to Financing Your Dream Home

Thu, 21 Mar 2024 04:37:47 GMT

There's nothing quite like the feeling of moving into a newly built home or experiencing the final touches of a significant renovation project. The pristine paint job, the scent of new flooring, or even just the satisfaction of achieving a long-held goal—it's an undeniable pull that many Australians are currently indulging in. In fact, the 14.7% surge in building approvals from December 2023 to January 2024 shows just how popular building projects have become.

But it's not all about aesthetics and lifestyle enhancements. These days, there's a growing emphasis on eco-friendly renovations, with almost half of all home renovation projects in 2023 focused on improving energy efficiency. So, embarking on a new build or renovation journey can be both exhilarating and fulfilling, while also making a positive impact on the planet.

Before you start planning your dream project, it's important to address the crucial matter of financing. Where will you get the funds to pay for everything? Do you plan to refinance your home loan or look for other loan options? In this guide, we will learn more about construction loans, as they could be the key to pursuing your dream home project.

What is Construction Loan, and How Does It Work?

Construction loans are uniquely distinct from traditional home loans .

Unlike the standard lump-sum disbursement characteristic of traditional mortgages, construction loans adopt a progressive funding approach, synchronised with the project's developmental stages.

If you're building a new home, your lender becomes your partner in progress. They disburse funds strategically at every phase of the construction project. These phases include:

Laying the foundation;
Erecting the structural frame;
Achieving lock-up status;
Fitting out your interior; and
Completion of construction

This structured disbursement strategy brings numerous advantages to the completion of your dream home.

Distributing smaller sums during construction acts as a safety nett for you, the borrower. It ensures that your builder is compensated fairly for the work completed, minimising the risk of paying for unfinished tasks.

Moreover, interest on your loan is only calculated based on the funds you've actually used during the project, not on the total loan amount. So, you won't be charged interest on money you haven't tapped into yet.

And not just that, you'll likely only need to make interest-only payments. This can be a lifesaver for your budget, especially if you're renting while the builders are hard at work, giving you some breathing room until your dream home is complete.

Explore Construction Loans with Osinski Finance

Construction projects, as exciting as they are, eventually come to an end. Once your new home or renovation is complete, your construction loan will transition into a standard home loan.

However, not all lenders offer construction loans. The good news is, Osinski Finance offers assistance in helping you find lenders that offer construction loan options tailored to your needs and budget. Nothing compares to having a reliable mortgage broker by your side!

We ensure to guide you seamlessly through the application process, saving you time and effort so you can focus on other aspects of building your home.

Eager to begin or elevate your home now? Reach out to us today for a speedy loan approval and kickstart your construction project the soonest!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Your Guide to a Speedy and Hassle-Free Loan Approval

Wed, 06 Mar 2024 21:45:23 GMT

When it comes to investing in a property , timing is everything, especially when swiftly securing a home loan. While lenders are making strides in speeding up the approval process, borrowers also play a crucial role in ensuring a seamless journey. We will guide you through the factors affecting home loan approval times and provide practical steps to speed up the process without compromising on important details.

How Quickly Can You Get a Home Loan?

When you've found your dream home, signing the sale contract is just the beginning. The next step, securing a home loan, which requires careful timing. Despite larger banks boasting faster turnarounds and smaller lenders streamlining their processes, it's still crucial to maintain a sense of urgency, as highlighted by the latest insights from the Broker Pulse survey .

Your loan needs to be ready by the settlement date, which usually occurs six weeks after the contract exchange. Failing to secure financing by this date may result in interest charges and penalty fees from the seller. The stakes are high, emphasising the importance of timely home loan approval.

The Unspoken Rules of Loan Approval Times

While some lenders claim approval within an hour, the reality is more nuanced. To be on the safe side, plan for four to six weeks from application submission to fund availability. If urgency is a priority, Osinski Finance can help connect you with lenders known for quicker turnarounds, applying a bit of pressure when necessary.

However, it's crucial to prioritise a home loan that aligns with your needs rather than hastily opting for a record-time mortgage.

5 Strategies to Speed Up the Home Loan Process

Borrowers hold significant sway in expediting loan approvals, whether they are first-home buyers or looking to refinance their home loans . Here are five practical steps to streamline your application and approval times:

1. Early Consultation Is Key

Engage with us early in the process. We can assess your borrowing power, advise on required deposits, and evaluate your financial standing for lender approval. Our access to resources provides insights into current approval times with potential lenders.

2. Organise Your Documentation

Gather all the necessary documents, including payslips, identification, and bank statements spanning the last 3–6 months. If you are unsure, we can guide you through this essential step.

3. Keep Major Changes at Bay

Avoid significant life changes, like starting a new job, before applying for a loan. Maintaining financial stability and consistency can prevent unnecessary questions from lenders, ensuring a smoother approval process.

4. Review Application Accuracy

Meticulously review your application to eliminate errors that could lead to returned paperwork. We can assist in minimising discrepancies, ensuring a seamless process.

5. Embrace Loan Pre-Approval

Don't wait until after the deposit payment to apply for a mortgage. Loan pre-approval not only expedites the application but can also enhance your bargaining power with vendors.

For more insights and tailored advice on expediting your loan approval, the Osinski Finance team has got you covered. Contact us today and let us assist you in making a swift transition into your new home.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Uncovering the Affordable Homes in Your Suburb

Wed, 28 Feb 2024 22:02:53 GMT

Are you planning on investing in a property ? While location undoubtedly influences property prices, a savvy buyer knows that within any given suburb, a few streets can make all the difference between paying top dollar and finding a hidden gem. In this article, we'll explore a tool that reveals pockets of value within neighbourhoods, allowing you to spot potential bargains in your desired area.

Understanding Median Prices

Most property seekers turn to websites like realestate.com.au to gauge a suburb's median house price. However, relying solely on the median can be misleading, as prices often vary widely within a single suburb. That's where PropTrack's interactive property price tool comes into play. This tool provides a detailed breakdown of median values across different parts of each suburb, offering a more nuanced perspective.

Unveiling Surprising Price Differences

Consider Beecroft, a suburb on Sydney's north shore. While the median house price hovers around $2.4 million, PropTrack's tool reveals that certain areas command a median exceeding $2.8 million. Just a few streets away, the figure drops to approximately $2.2 million. The key differentiator? The more affordable pockets of Beecroft are located adjacent to the M2 Hills Motorway.

Similar dynamics play out in Fitzroy North , Melbourne, known for its character-filled terrace houses. The overall median house value stands at $1.6 million, but proximity to Edinburgh Gardens can drive prices closer to $3 million.

Unlocking Savings in Fortitude Valley, Brisbane illustrates this pattern further. The James Street Market side commands a median house price of $3 million, while just across Brunswick Street, prices dip below $1.9 million.

Potential Savings: A PropTrack Analysis

PropTrack's analysis suggests that homebuyers can save approximately $365,000 by opting for the more affordable pockets of a suburb. In some cases, this price gap widens significantly, as seen in Subiaco, Perth, where median values top $2 million in certain areas but drop to around $840,000 around Subiaco Oval.

Factors Influencing Bargain Buys

A clear trend emerges: nearby features significantly impact property values. Proximity to the beach, scenic views, or a local park can elevate prices, while homes bordering a busy highway or industrial estate often offer bargains. Yet, it's crucial to consider less obvious factors like flood zones or upcoming changes to council zoning.

Seizing Opportunities and Planning Ahead

Understanding these pricing differences within suburbs opens up opportunities to save without sacrificing amenities. A single street can be the dividing line between an expensive and an affordable home. Additionally, keeping an eye on planned local developments can transform today's overlooked pockets into tomorrow's upmarket enclaves.

Before making a move, it's essential to research thoroughly. While you can renovate a home, the location is fixed. By staying informed and using tools like PropTrack, you can navigate your suburb wisely, making informed decisions that align with your budget and lifestyle.

Thinking of buying? Contact Osinski Finance today! Whether you are a first-time home buyer or a seasoned property investor, we will be glad to assess your borrowing power . Understanding it will guide you towards neighbourhoods where your budget fits perfectly.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Home buyers rejoice! More listings are hitting the market

Wed, 21 Feb 2024 22:07:43 GMT

Great news for home buyers! After an extended run of low listings, the number of homes coming onto the market is skyrocketing. So could this have an impact on the property market? Let’s take a look.

Take a look around your local suburb, and chances are you’ll see freshly minted For Sale signs popping up all over the place.

That’s because a large number of homes are coming onto the market.

Research firm PropTrack says the property market is off to a strong start for the year, with the number of new listings nationally on realestate.com.au up 12% year-on-year in January.

Melbourne and Sydney had their busiest January in over a decade.

Activity was also strong in Hobart, Brisbane and Adelaide, with Canberra experiencing its busiest-ever January for new listings.

Only Perth bucked the trend, recording slightly fewer new listings this year compared to January 2023.

Why the uptick in listings?

The rise in new listings reflects strong demand, very low unemployment and population growth.

Home buyers are also enjoying a more stable interest rate outlook.

February saw rates remain on hold, and PropTrack says financial markets are now expecting a reasonable chance that interest rates may start to fall later in the year.

What does more listings mean for home buyers?

More homes coming onto the market gives buyers the benefit of increased choice, and that’s a real plus if you are looking for your first home or upgrading to your next place.

But the rise in listings may not push home prices down.

That’s because we are still seeing plenty of keen buyers.

As a guide, CoreLogic estimates 115,241 homes were sold over the three months ending January 31 – an 11.9% increase on the same period last year, with high levels of migration being a big driver of demand.

CoreLogic adds that expectations of lower rates later this year could see house price growth accelerate.

How you can prepare

More choice can be a good thing for buyers. However, it can become easy to lose track of what you’re looking for in a property, especially if you’ve attended a large number of inspections.

That’s when it helps to draw up a list of must-have home features (such as aspect, block size or parking requirements) followed by nice-but-not-necessary features (like, say, a swimming pool or a shed) to assess each home you visit.

It also makes sense to be ready to act when you see a property you’d like to buy.

Having home loan pre-approval in place lets you set a buying budget, so you can focus on homes within your price range. It also means you can make an offer with confidence – and stay one step ahead of less-organised buyers.

Talk to us today to get your home loan ducks in a row and take advantage of a wider choice of homes listed for sale.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

They’re back! Why property investors account for one-in-three new home loans

Wed, 14 Feb 2024 22:20:18 GMT

Lending to property investors is soaring once again. We lift the lid on what’s driving investor interest – and what it could mean for the property market throughout 2024.

It looks like property investors are back … and in a big way.

The latest ABS figures show that in December 2023, banks lent over $26 billion in new home loans – and one-third of this figure, a whopping $9.5 billion, was to property investors.

That equates to 36.2% of all housing loans – the highest market share for property investors since mid-2017.

It’s also quite an uptick from December 2020, when the ABS says investors took out just 23.6% of mortgages.

So why the big shift in recent times?

What makes an investment property so attractive?

There are many reasons why people may love owning a rental/investment property.

An investment property can be a source of extra income, and right now, some investors are pocketing very attractive rental yields (that’s annual rent divided by the purchase price of the property).

PropTrack, for example, is reporting yields as high as 9% in some suburbs.

Investors may also expect to see their property grow in value over time, which could add up to some pretty impressive capital gains.

CoreLogic looked at the results of 86,000 property resales in the third quarter of 2023, and found 93.5% were sold for a profit, with the median gain coming at $298,000. Not bad at all.

And home values are tipped to jump a further 6% in 2024, according to ANZ Bank .

Add in rental vacancy rates hitting record lows of 1.1% in January 2024 , and many investors are attracting good tenants, which can be great for cash flow.

How could the return of investors impact the market?

On a personal level, buying an investment property could potentially be a boost for your long-term financial well-being.

ABS has acknowledged that rising household wealth in Australia is being supported by house prices that have continued to grow despite higher rates.

More broadly, PropTrack points out that the re-emergence of investor activity “heralds good news for the overall health of the market, helping to drive more new construction”.

Long story short, the benefits of more rental properties could extend beyond individual investors.

Is an investment property on your radar?

If you’re thinking about buying a rental property, or you’d like to add to your current property portfolio, talk to us today about your options for an investment loan.

We can help you work out how much equity you may be able to leverage, as well as your overall borrowing capacity.

From there, we can help you track down a suitable mortgage with a competitive rate from our broad suite of lenders, leaving you free to focus on finding your ideal investment property.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

When will the next RBA cash rate call be made?

Wed, 07 Feb 2024 22:54:08 GMT

Happy days! The Reserve Bank kept rates steady in February. But a shake-up in the number of times our central bank meets each year is raising questions about how long the rate pause will last. Here’s what we could expect.

It seems fitting that in a month known for Valentine’s Day, the Reserve Bank of Australia (RBA) has shown borrowers some love by keeping the cash rate steady at 4.35%.

In reality though, the latest rate pause has nothing to do with romance or affection.

It’s more to do with keeping a lid on rising living costs.

After months of steadily rising prices, inflation looks to be heading south – currently sitting at 4.1% , down from 7.8% in December 2022.

That’s exactly what the RBA has been aiming for with their interest rate hikes.

Long story short, home owners can breathe easy – for now at least.

But when will the next cash rate decision be made?

RBA rate calls won’t be as frequent in 2024

Aussies are used to RBA rate decisions being made on a monthly basis, with a break for the holiday season each January.

That’s changing this year.

Instead of 11 meetings, the RBA will meet just eight times to decide interest rate movements, handing down their decision on the second day of:

– February 5-6
– March 18-19
– May 6-7
– June 17-18
– August 5-6
– September 23-24
– November 4-5
– December 9-10

What do less frequent meetings mean for borrowers?

So, whatever rate decision is made in March, home owners need to live with it for almost two months until the RBA meets again in May.

As such, some pundits believe fewer meetings will naturally lead to fewer rate movements. Farewell to back-to-back rate hikes every month, for example.

However, experts also warn it might lead to bigger increases or decreases as the RBA has fewer opportunities to move the needle.

And that’s not to say individual lenders can’t, or won’t, change their home loan rates whenever they like, regardless of RBA rate decisions.

For example, Mozo reports that a number of lenders lifted their variable rates in December 2023 despite the RBA keeping the cash rate steady.

Buy now or wait for rates to fall?

While the February rate pause will be welcomed by borrowers, the RBA has cautioned that further rate hikes “cannot be ruled out”, especially if inflation starts to climb again.

Even so, plenty of lenders including NAB , the Commonwealth Bank and Westpac , expect to see interest rates fall this year.

There are no guarantees – a lot can happen over the next 12 months. But it does raise questions about whether now is a good time to buy a home, or if it makes sense to hold off until rates head lower.

On one hand, a drop in interest rates could boost your borrowing power.

The catch is that lower rates could stimulate home buying activity, potentially driving home prices higher.

If this happens CoreLogic warns we could see new measures introduced to contain housing credit risk such as changes to lenders’ loan-to-value ratios.

So when might be the right time to buy?

We believe the ideal time to buy a home is when you feel ready to do so.

And a good way to find out if you’re ready is to speak to us about your borrowing power.

We can help you crunch the numbers to let you know how much you could borrow, which in turn helps you figure out what kind of property you could afford to buy.

If that sounds like a good plan to you, give us a call today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

4 tips for self-employed home loan applications

Wed, 31 Jan 2024 21:41:42 GMT

Applying for a mortgage when you’re self-employed may have you jumping through more hoops. But it needn’t deter you from getting into the property market. Here are 4 tips to help you apply for a mortgage like a boss.

Being your own boss sure has its advantages: the flexibility of setting your own hours, building your own business to represent your values, having someone else fetch you coffee…

But when it comes to home loans, you may have more to prove than the average applicant.

You see, lenders may view you as a little more risky. That’s because, in their eyes, you may not have a steady paycheck to make those all-important repayments.

But being self-employed needn’t stop you from getting your slice of the great Australian dream.

Planning ahead and knowing what lenders generally look for could give you an edge when it comes to mortgage application success.

1. Get your finances in order

As a self-employed applicant, having rock-solid finances is important.

Even if your business is booming, most lenders will see you as more of a risk for defaulting. That’s because self-employed incomes can be less consistent.

Lenders want to know that the likelihood of you making regular repayments is high.

And to mitigate risk, loan options available to you may have a lower loan-to-value ratio (meaning you may need a higher deposit) and/or have a higher interest rate.

So, to prepare to apply, consider getting your finances in check by:

– Building up a healthy credit score.
– Lowering your living expenses by focusing on the essentials.
– Saving up a healthy deposit (aka genuine savings) and a cash buffer.
– Running your business on accounting software such as Xero, MYOB or Hnry so you can provide up-to-date and accurate profit and loss statements.

2. Gather your documents

It’s important to keep your business and personal finance documents up to date, so you’ll be ready to rock and roll.

For verification of income, many lenders require two years worth of lodged business and personal tax returns.

It’s a great idea to tell your accountant in advance that you’re planning on applying for a home loan. That’s because some of the financial wizardry they apply to lower your tax bill might work against your application and lower your borrowing capacity.

Also, keep in mind that business owners who do lots of “cash jobs” can find it harder to obtain a home loan because they have less income to show for their work.

On top of running your credit score, some lenders may want statements from loans and credit cards for proof you can make regular repayments.

They may also want to see verification of assets such as any property, savings and investments.

Some lenders may want to see the whole kit and kaboodle when applying for a loan. Some may need less.

And some offer low-doc loans if you don’t have extensive documentation. But they may come with higher interest rates or the need to pay lenders mortgage insurance (or both).

Exactly what documents are required depends on the lender and the type of loan.

3. Choose your lender wisely

Not all lenders are comfortable providing self-employed loans for the reasons mentioned above.

And every time you apply for a home loan your credit history is “pinged”. The more this occurs, the more of a red flag this may pose to lenders.

So targeting lenders that have a track record of approving self-employed loans might be a wise move.

Having a reputable mortgage professional on your side may be helpful here. Which brings us to our next point …

4. Get in touch with us today

Just as you’ll want to give your accountant plenty of notice, so too will you want to reach out to a mortgage broker sooner rather than later.

That’s because we can help you work out your borrowing capacity, and provide you with other tips that you can start working on now that may eventually help make your application more attractive to lenders.

So if you’re self-employed and think you’ll be seeking a home loan in 2024, get in touch today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

First home buyers charge back into the market

Wed, 24 Jan 2024 22:38:06 GMT

Hats off to Australia’s first home buyers! The latest lending data shows they’re refusing to let last year’s rate hikes and rising property values dampen their goal of buying a home. Here are five tips to help you buy your first home in 2024.

You’ve gotta hand it to first home buyers in the current market.

Not only were they faced with 13 cash rate hikes in just 18 months – which can obviously affect borrowing capacity – but property prices still rose 8.1% in 2023, according to CoreLogic .

Still, they won’t be deterred.

The latest lending data from the Australian Bureau of Statistics shows a massive 20.3% jump in the number of loans to first home buyers last year.

But it takes more than grit and determination to buy your first home. A few handy hints can also help.

If you’re hoping to buy your first home, below our top tips can help you become home loan-ready in 2024.

1. Make a visit to your mortgage broker your first step

First home buyers are often unsure about what’s involved in buying a home. That’s fair enough.

We can help you know where you stand in terms of loan approval, the costs you should plan for, and the steps you can take now to help improve your finances.

2. Save, save and save some more

Lenders like to see you have a decent track record of regular saving. It shows you have the discipline to manage home loan repayments.

Take a look at your budget, work out where you can trim back, and consider funnelling as much into savings as possible.

It may mean cutting back on luxuries and treats for a while but it’s not forever. And the more you save now, the less you potentially need to borrow.

3. Consider lowering your credit card limit

When you apply for a home loan, lenders are often more interested in the limit on your credit card than the balance outstanding.

That’s because you could, in theory, max out your card after buying a home, which may affect your ability to manage mortgage repayments.

The average card limit is about $9,500, according to a Finder analysis of RBA data .

Shrinking this down (with a quick call to your card issuer) might get you over the line for the loan you need.

4. Check out first home buyer support schemes

There’s a tonne of potential support for first home buyers – from First Home Owner Grants (FHOG) to possible savings on stamp duty.

We can explain what you might be eligible for, but research of your own can narrow down your choice of property.

Some support payments are only available if you buy or build a new home, and many have property price caps.

5. You may not need a 20% deposit

Sure, a 20% deposit is a target worth aiming for.

But you may be able to buy with less.

The First Home Guarantee and Regional First Home Buyer Guarantee let first home buyers get into the market with just a 5% deposit and no lenders mortgage insurance.

That might mean you’re ready to buy now!

Call us today for a chat about buying your first home, and discover how we can help you find a home loan that matches your needs at a competitive rate.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How your deposit size can shape the rate you pay

Wed, 17 Jan 2024 22:27:53 GMT

It’s commonly known that the bigger your deposit, the smaller your home loan, and thus, the lower your monthly repayments. But today we’ll look into another way your deposit size could reduce your repayments: by potentially reducing your interest rate.

A question we’re commonly asked (believe it or not!) is “how can I get a lower interest rate?”

There’s no straightforward answer to this one as it usually depends on a myriad of factors, including whether lenders see you as high risk or low risk, the competition in the market at the time and, as we’ll discuss today, how big your deposit is – or more technically, your ‘loan to value’ (LVR) ratio.

What’s LVR?

To cut through the jargon, LVR refers to how much of your home’s value you’re borrowing.

If you plan to buy a home priced at, say, $600,000 using a deposit of $120,000, you’ll need to borrow $480,000, or 80% of the property’s value. For lenders, this means you have an LVR of 80%.

Why does this matter?

Well, a bigger deposit lowers your LVR. This in turn helps reduce the risk you represent to a lender.

A loan with an LVR of 80%, for example, may be seen as less risky than one with an LVR of 90%.

As a general rule, lenders tend to reward borrowers for that reduction in risk with a lower home loan interest rate.

But note: these figures don’t include stamp duty and other up-front costs, which you may also need to budget for.

Average interest rates by LVR

Mozo checked out the average variable rates for different LVRs .

As you can see below, for home loans with an LVR of 95%, meaning a 5% deposit, the average variable rate is about 7.38%.

Borrowers who can pull together a slightly bigger deposit may see their rate fall. As a guide, on an LVR of 90% (deposit of 10%), the average variable rate falls to 7.13%.

That’s a potential rate saving of 0.25%. This may not sound like much. But along with lowering your monthly repayments, a lower rate could mean paying less in interest charges over the life of your loan.

– LVR 95%: average variable rate of 7.38% p.a.
– LVR 90%: average variable rate of 7.13% p.a.
– LVR 80%: average variable rate of 6.85% p.a.
– LVR 70%: average variable rate of 6.81% p.a.
– LVR 60%: average variable rate of 6.77% p.a.

How your LVR can see you save in other ways

Your LVR doesn’t just shape the rate you’re likely to pay.

If you have a small deposit, usually less than 20%, you could be asked to pay lenders mortgage insurance (LMI).

This is a type of cover that protects the lender if you can’t keep up your loan repayments.

LMI can be a substantial up-front cost.

There are options for first home buyers with a small deposit to avoid this expense. The First Home Guarantee Scheme , for instance, allows eligible buyers to purchase a first home with just a 5% deposit and no LMI.

What if I’m refinancing my home loan?

If you’re refinancing your mortgage, your LVR will be shaped by home equity.

The same basic rule applies. The more equity you have in your place, the smaller the loan you may need.

This may help lenders see you as a lower risk (all other things being equal), so chances are you may be offered a lower rate.

How we can help

With so many loans and lenders to choose from, home loan interest rates can vary widely.

Yes, your deposit or home equity can play a role in the rate you pay. But a variety of other factors come into play also.

That’s why it’s important to speak to us if you’re buying a first home, your next home, or refinancing.

We can help you find a home loan that’s suited to your needs at a competitive rate in line with your LVR and any other contributing factors.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The pros of having a mortgage broker on your side

Wed, 10 Jan 2024 22:38:12 GMT

What exactly can a mortgage broker do for you? Well, we don’t mean to toot our own horn, but we can make your home loan journey a whole lot easier, letting you focus on the fun part: planning for your new home!

The words “home loan application process” can strike fear in the hearts of many.

Trawling through different loan products is a time drain. The bureaucratic tape can be a headache. And let’s not forget banks scrutinising your finances.

But it doesn’t have to be a drag.

The majority of home loan seekers have now cracked the code: turning to mortgage brokers to help them land a loan.

In fact, between July and September 2023, mortgage brokers wrote 71.5% of all new residential home loans in Australia, according to the MFAA .⁣
⁣
That’s the second-highest mortgage broker market share the industry has ever recorded.⁣
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Let’s find out why so many Australians have jumped on the broker bandwagon.

1. We do the legwork for you

Let’s face it, life gets busy. You’ve probably got a million things on your plate.

Carving out time to deep dive into home loan products across lenders can be tough. And often overwhelming.

Mortgage brokers can take that tedious task off your hands – we can assess your situation and find home loan options to suit you and your goals.

We’ll even lodge paperwork and apply on your behalf, then chase things up to ensure everything goes as smoothly as possible.

And fret not: all brokers are bound by a best interests duty.

That means we’ll always put your best interests first – not ours nor the bank’s!

2. We could help boost your chances of success

When looking around for a loan, having a knowledgeable professional on your side could be a game-changer.

We can explain the whole home buying and loan process, which is particularly helpful if you’re a first-home buyer or if it’s been a while since you’ve applied for a mortgage.

We know the application process inside and out and can prime you to have your paperwork and finances ready to roll the moment the perfect property comes along.

We have a wide range of lenders within our network – potentially providing you with access to a variety of home loan options across different banks and lenders.

Whether your financial situation is complex or straightforward, we can use our panel of lenders to help you find a suitable loan. We can also let you know which lenders have a history of approving applications similar to yours.

This potentially cuts down on countless hours trawling through lender websites for the right type of home loan. It may also lower your risk of rejection, which can negatively impact your credit score.

3. You’ll get continued support

Once you’ve been approved for a home loan, the party doesn’t stop there.

We can continue to support you by regularly reviewing your rate with your bank on your behalf.

That way you can avoid the “loyalty tax” – where new customers tend to get the lower rates.

You can contact us any time with any questions you may have. And when you’re ready to refinance, unlock equity in your home, or anything else finance-related, we’re here to help.

Get in touch today

Are you ready to make the home loan process a whole lot easier?

Get in touch today to get the ball rolling. We’ll take care of finding your home loan so you can focus on planning for your new home.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 New Year’s resolutions for your home loan

Wed, 03 Jan 2024 21:50:55 GMT

Thought of a New Year’s resolution yet? Or perhaps you’ve broken one already? Either way, check out our list of possible mortgage goals for 2024 – try one, or have a go at them all – to save a bundle in the year ahead.

It’s that time of year when Aussies love to set resolutions.

According to Commonwealth Bank research , as we dive into 2024, three out of four Australians will make at least one financial resolution, often involving plans to follow a budget or spend less.

But when it comes to New Year goals, it’s worth shining a spotlight on your mortgage.

After all, it’s likely to be your largest debt, and setting (and achieving) a few goals for the year ahead can help you pocket savings and become mortgage-free sooner.

Here are our top 5 home loan resolutions for 2024.

1. Give your home loan a health check

Don’t just assume you still have the home loan that’s right for you.

Chances are, life has dished up a few changes over the past few years.

Or maybe there are big things on the horizon for 2024 – like starting a family, upgrading to your next home, or tackling a major renovation.

Checking that your mortgage is still well-suited to your needs can be a starting point to achieve these goals.

Talk to us about a free home loan health check to be confident you’re heading into 2024 with a loan that still ticks all the boxes for your situation.

2. Ditch lender loyalty

Interest rates soared in 2023. Yet less than one in 10 home owners refinanced their home loan to get a better deal last year, according to Canstar research .

At the start of 2024 we’re still seeing big variations in rates between banks, with many lenders still offering lower rates to new customers, according to Reserve Bank of Australia (RBA) statistics .

So, staying loyal to a lender can cost you.

We can compare your mortgage to many others in the market to see how it shapes up in terms of rate, features and flexibility.

That’ll help you decide whether to stay, or save by switching to a new loan and/or lender.

3. Check you’re not paying for features you don’t use

Home loan features can be very handy, but the more features a loan has, the higher the rate (or fees) may be.

That’s not a problem if you regularly use features such as, say, an offset account to save money.

However, if you’re not using particular loan features, you could save with a more basic loan that potentially comes with a lower rate.

Not sure which features your loan offers? Call us today for a quick rundown and we’ll help you check it all out.

4, Plan now for the end of a fixed rate

The fixed-rate cliff is not over yet.

The RBA says 450,000 home owners will roll off a super-low fixed rate in 2024.

If that includes you, it could pay to act now.

We can help you plan ahead and decide the right course of action – be it reverting, refixing or refinancing – so that your finances won’t be too squeezed when the end of your fixed rate rolls around.

5. Leverage your home loan to achieve other property goals

A home loan doesn’t just have to be a debt.

It can also be a valuable tool that lets you work through a personal bucket list by putting home equity to work.

And you could be starting out 2024 with a lot more equity than you realise.

Back in January 2023, the median home value across Australia’s state capitals was $770,374, according to CoreLogic .

Fast forward to January 2024, and the median value has increased to $832,193 .

That might mean extra money (aka equity) up your sleeve to build wealth through an investment property, for example.

Call us today to get a clearer picture of your home’s potential equity – and how you could use it to tick off your wish list in the year ahead.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Merry Christmas! Season’s greetings from all of us to you

Wed, 20 Dec 2023 23:53:33 GMT

The year has flown past, and as our thoughts turn to trees, tinsel and turkey, we’d like to thank all our fantastic clients for your support throughout 2023.

It’s been quite a year, with higher interest rates, soaring national property values (who’d have thought?) and a few welcome surprises including more help for first-home buyers.

There is plenty in store for 2024, and we look forward to partnering with you again to help you navigate whatever goals you have planned in the new year.

In the meantime, we hope you can take the time to relax, unwind and enjoy all the fun of the festive season.

There’s no doubt the next 12 months will dish up its fair share of surprises. But some things never change – we will be here for you in 2024 and beyond.

So, wear that ugly Christmas sweater with pride, relish the magic of the festive season, and celebrate all you have achieved this year.

May your happiness be large and your bills be small! We look forward to being part of your property journey in 2024!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Ho ho ho! The smart move that has 1 in 10 borrowers feeling jolly

Wed, 13 Dec 2023 22:59:10 GMT

Home owners have been battling rising interest rates for over a year and a half now. But a new report reveals the important step some savvy borrowers are taking to rein in higher rates and swap “oh no!” for “ho, ho, ho!”.

It’s no secret that refinancing has the potential to slice a big chunk off your monthly loan repayments.

And according to Canstar , 1 in 10 mortgage holders chased a better deal in 2023 and switched to a new lender to save on their repayments.

But what’s surprising to us is that 9 in 10 didn’t.

So what’s holding them back? Let’s dive in.

Some score a discount, others don’t

To be fair, many home owners have been on the front foot this year.

According to Canstar, 1 in 5 home owners with a mortgage have negotiated a better rate with their current lender – which is great news.

Having a chat with your bank can be a fuss-free way to save, especially if they come to the party with a rate discount.

A further 14% of home owners say they have tried to switch to another lender but weren’t able to do so because they didn’t have enough equity, or didn’t meet the new lender’s requirements.

That’s why it pays to speak with us before talking to a lender.

We have in-depth knowledge of different banks’ lending criteria, so we know which lenders are likely to give you the green light for a better deal.

Too many borrowers wearing higher rates

The thing is, there are plenty of home owners who have just copped rising rates without taking action.

As Canstar puts it: “Too many borrowers remain complacent even in the face of rising repayment costs”.

The scary thing is, half (49%) of Australia’s home owners with a mortgage don’t intend to change lenders at all.

Some believe they have a good interest rate. But as many as 1 in 5 think refinancing is too hard.

Busting the myths

Let’s sort some facts from fiction.

First up, it’s great if you think you are paying a competitive interest rate. The key is to know for sure.

Right now, variable home loan rates are anywhere from 5.69% (very rare) through to 9%-plus.

With that sort of range, there’s plenty of scope to save, especially as lenders often make lower rates available to new customers.

There is an easy way to know if you’ve got a good rate: pick up the phone and call us.

And if you’re worried that refinancing is hard work, rest assured that we’ll do the bulk of the leg work for you.

We’ll sort through hundreds of home loan options to find the loan that’s right for your needs. We’ll also make the paperwork easy, liaise with your old lender, and your new bank. Simple.

So if you’re keen to find out if you can do better with your home loan these summer holidays, give us a call and we’ll help you put your best foot forward going into 2024.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

2024 Home-Buying Insights: Navigating the Real Estate Landscape

Wed, 06 Dec 2023 22:10:40 GMT

As you set your sights on purchasing a home in 2024, it's crucial to understand the dynamics of the 2023 real estate market to make an informed decision. Reflecting on the previous year’s property trends is key as we embark on what could be an eventful year in real estate.

A Look Back at 2023: The Housing Market's Journey

Despite economic challenges, including multiple interest rate hikes and rising living costs due to inflation, the national housing market experienced a robust growth of 7% in 2023. For a detailed analysis of inflation trends, refer to the Australian Bureau of Statistics report .

This growth was even more pronounced in certain urban areas. Sydney, Brisbane, and Perth witnessed remarkable double-digit increases in property values, registering rises of 10.2%, 10.7%, and 13.5% respectively, as detailed in CoreLogic's report .

Surprising Trends: Beyond Price Increases

2023 wasn't just about rising prices; the pace of sales also turned heads. In cities like Perth, Sydney, Brisbane, and Melbourne, homes were selling in record time - averaging between eight and 25 days on the market.

Looking Ahead: The 2024 Housing Market Forecast

With climbing interest rates beginning to impact the market, there is a subtle shift in the dynamic. CoreLogic reports a modest 0.6% rise in home values across Australia in November, marking the smallest monthly increase since early 2023. For more information, see CoreLogic's Home Value Index .

2024: Predicting Continued Growth

Three primary factors are poised to sustain house price growth in 2024:

Population Surge: With immigration fuelling population growth, demand for housing is expected to rise. Domain’s report highlights this as a key factor exerting significant pressure on property prices. For more insights, see the Domain 2023 End-of-Year Report .
Ongoing Housing Shortage: The shortage of housing, a major talking point in 2023, looks set to continue. Building approvals for new homes are still below the required levels.
Tight Rental Markets: The challenging rental market, characterized by record-low vacancy rates, might encourage more people to opt for homeownership, facilitated by schemes like the First Home Guarantee .

Anticipated Price Increases in 2024

Experts predict a continued rise in house prices for 2024, though perhaps at a slower pace than in 2023. Domain forecasts a national increase between 5-7%, with city-specific predictions as follows:

Sydney: 7-9%
Melbourne: 2-4%
Brisbane: 7-8%
Perth: 6-7%
Adelaide: 7-8%
Canberra: 3-5%
Hobart: 2-4%

Early Action Could Mean Savings

For those planning to buy, entering the market earlier in 2024 might be advantageous to avoid higher future costs.

Unsure where to start for Home Loan advice ? Talk to Osinski Finance today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Expanded Home-Buying Opportunities for Australians: The 5% Deposit Scheme

Wed, 29 Nov 2023 22:03:40 GMT

Australians looking to purchase their first home are in for a welcome update. The range of lenders participating in the 5% deposit initiative has significantly widened, paving the way for easier entry into the housing market.

This expansion is particularly beneficial for those accessing the Home Guarantee Scheme (HGS) , which now includes more lenders, as recently announced by Westpac and its affiliates.

Westpac Brands Join the Home Guarantee Scheme

The addition of St.George, Bank of Melbourne, and BankSA, as detailed in Westpac's media release , enhances the choices for first home buyers under the HGS. This scheme, crucial for buyers with limited deposits, allows the purchase of a home with a minimal 5% deposit, facilitated through the First Home Guarantee or Regional First Home Buyer Guarantee .

Family Home Guarantee: A Boost for Solo Parents

The scheme also includes the Family Home Guarantee , which is a boon for solo parents, enabling them to secure a home with just a 2% deposit.

Increased Lender Participation Fuels Competitive Rates

The HGS now features 33 lenders, as listed on Housing Australia's participating lenders page . This diverse group increases competition, potentially leading to more favorable home loan rates for first-time buyers.

The Benefits of a Smaller Deposit

One of the main obstacles for first home buyers is saving for a large deposit. The HGS eases this burden, allowing entry into the market much sooner. This scheme has proven effective, with Housing Australia's data showing that in the last financial year, one in three first home buyers benefited from it.

Additionally, recent reports highlight that participants have gained an average home equity of $82,000, a significant achievement considering the modest average deposit of $35,200 in 2020, and $36,400 by mid-2023, compared to the broader market average of $159,000.

Selecting the Right Loan: Expert Guidance

Navigating through the more than 40 lenders offering these low-deposit home loans can be challenging. Our team is here to assist, helping you determine your eligibility for the scheme and guiding you through the loan selection process. For more details about our approach and the success stories, refer to Housing Australia's 2022-23 Annual Report .

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to manage your home loan over Christmas

dave@99content.co (Dave Barbeler) — Wed, 22 Nov 2023 22:22:00 GMT

It may be called the silly season but a few smart strategies could help you enjoy the festive season this year without missing a beat on your home loan. Check out our tips to share the Christmas cheer this year without breaking the bank.

Store shelves are starting to be lined with tinsel, ‘Santa stop here’ signs are popping up around the neighbourhood, and chances are you’re beginning to hum a few bars of Jingle Bells.

Yes, Christmas is just around the corner, and now’s the time to plan for what can be a pricey time of year.

After 13 rate hikes in close succession, plenty of homeowners are feeling the squeeze of higher home loan repayments.

The good news is that you (hopefully) won’t have to cancel Christmas this year. Below are three clever hacks that could help you manage your mortgage over the festive season.

1. Follow Santa’s lead – make a list (or two)

Plan ahead by listing all the fixed expenses you’ll face in December such as utilities, your home loan, car loan, and credit card repayments, as well as less frequent bills such as council rates that may fall due before Christmas.

Add up the total to know how much you need to set aside. It’s a good idea to try and prioritise these bills over seasonal spending.

Next, draft up a Christmas spending budget that allocates money to gifts, food, drinks and decorations.

Finetune your budget based on your ability to pay, bearing in mind the upcoming costs you identified in the bill list.

If things are looking tight this year, consider opting for Secret Santa instead of everyone buying everyone a present.

It can help make the giving experience more personal and is definitely gentler on the hip pocket.

Websites like elfster.com can help keep it anonymous and straightforward for everyone.

2. Plan for how you’ll pay

It can be tempting to pay for Christmas purchases with a credit card or buy now, pay later. But these options can just mean kicking the can down the road until January when payments fall due.

It’s also worth noting that late payments on either option could affect your credit score for any future home loan applications.

So where possible, consider reaching for your debit card for festive purchases. It’s hard to get into too much trouble when you pay using your own money.

3. Ask your lender for a gift

Christmas is the season of giving, so why don’t we hit up your lender for the gift of a lower interest rate?

Reserve Bank data shows there is still a gap between the rates on new versus established loans.

If you took out your loan through us, get in touch and we can either reach out to your lender on your behalf for a discount or, if they don’t come to the party, help you explore your refinancing options with another lender.

Don’t let Christmas spending ruin your home loan plans for 2024

It’s easy to get swept up in seasonal good cheer. But it can sometimes be important not to get too carried away with Christmas spending.

If you plan to refinance your home loan or purchase a house in 2024, a lender will likely look at your spending patterns over the past few months.

Hamming up your purchases in December can bump up your average living costs, and if you go way over the top, potentially see you knocked back for a new loan in the new year.

Want more tips to manage your mortgage over the holiday season? Call us today for more festive saving strategies.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The big stretch: should you extend your loan term?

Wed, 15 Nov 2023 22:17:54 GMT

If the November rate hike will seriously stretch your finances, one potential solution may be to extend your loan term. It can ease the hip pocket pain by lowering monthly repayments. But taking more time to pay off your mortgage can come with hidden downsides. Here’s what to weigh up.

Will the RBA’s latest 0.25% cash rate rise squeeze you financially? (not to mention the other 12 rate hikes!)

The majority of lenders lost no time increasing their variable home loan rates following the Reserve Bank of Australia’s 0.25% Melbourne Cup Day rate rise.

According to Mozo , the 13th rate hike since May 2022 has pushed up the average variable rate to 6.62%.

What does that mean in dollars and cents?

On a $500,000 variable rate home loan payable over 25 years, the latest 0.25% rate hike can see monthly repayments jump by $78.

For homeowners who didn’t have much fat left to cut from their budget, those extra dollars can be hard to find.

One potential strategy that may help to lower repayments is to stretch out your loan term.

How extending your term can reduce repayments

If you have a 25-year loan, your lender may give you the option to extend for up to five more years, possibly pushing out the term to 30 years.

If you get the green light, this kind of reset can significantly lower your monthly repayments.

On the $500,000 mortgage we looked at earlier, moving from a 25-year loan to a 30-year loan could cut monthly repayments by around $214 – even after allowing for the November rate hike.

The hidden cost of a longer term

There’s a lot to love about the prospect of slashing a couple of hundred bucks off your loan repayments each month, especially as we head into the festive season.

But pushing out your loan term can come with a hidden cost.

Taking longer to pay down your loan means you’re also paying interest for longer. And while your repayments can decrease, the long-term interest cost can skyrocket.

Stretching a $500,000 loan from 25 to 30 years could mean paying a whopping $128,000 more in total interest.

It’s worth keeping in mind though that those extra interest repayments aren’t a given.

You may be able to close the gap and cut down the interest cost by either making extra repayments in the future, loading up an offset account, or paying off the loan early (if, for example, you receive a lump sum inheritance).

So the upshot is that stretching your loan term can be a short-term fix now, but you’ll have to weigh up the costs against the benefits, not to mention whether you think you’ll be in a better financial position later down the track to pay down the loan quicker (and thus reduce the interest payments).

Other ways we can help

Along with exploring extending the length of your loan, we could also help you look into other solutions to ease the pain of higher rates.

Options that may be available with your lender include:

– temporarily lowering your loan repayments;
– deferring repayments for a while; or
– shifting you to interest-only payments for a set period.

The common thread is that the earlier you reach out for assistance, the sooner we may be able to help you get some financial relief.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

RBA increases the cash rate by 25 basis points, up to 4.35%

Tue, 07 Nov 2023 03:55:15 GMT

The Reserve Bank of Australia (RBA) has increased the official cash rate by 25 basis points, taking it to 4.35%. So just how much will this year’s Melbourne Cup day rate hike increase your monthly repayments?

Some more tough news for mortgage holders around the country today.

Despite the official cash rate being on hold since June (and many hoping it would stay that way), the RBA has decided to press ahead with a second consecutive Melbourne Cup day rate rise in an attempt to rein in inflation.

This means we’ve now had 13 rate hikes in 18 months since 1 May 2022, and it takes the official cash rate to its highest level since November 2011.

It also happens to be the first rate hike under new RBA Governor Michele Bullock, who commenced in the role in September.

So why did the RBA raise the cash rate?

Governor Bullock said while inflation in Australia had passed its peak, it was still too high and was proving more persistent than expected a few months ago.

“While goods price inflation has eased further, the prices of many services are continuing to rise briskly,” she said.

“While the central forecast is for CPI inflation to continue to decline, progress looks to be slower than earlier expected.”

Governor Bullock added the RBA Board judged an increase in interest rates was warranted today to be more assured that inflation would return to target in a reasonable timeframe.

“If high inflation were to become entrenched in people’s expectations, it would be much more costly to reduce later, involving even higher interest rates and a larger rise in unemployment,” she said.

How much could this latest hike increase your mortgage repayments?

If you’re on a variable-rate home loan, the banks will likely be increasing the interest rate on it very shortly.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point increase means your monthly repayments could go up by about $76 a month.

That’s an extra $1,211 a month on your mortgage compared to 1 May 2022.

If you have a $750,000 loan, repayments will likely increase by about $114 a month, up $1,816 from 1 May 2022.

Meanwhile, a $1 million loan will increase by about $152 a month, up about $2,422 from 1 May 2022.

Need help reining in your mortgage? Get in touch

Are you feeling the pinch? You’re not alone. Many households around the country are feeling the effects of 14 rate hikes in 18 months.

There are also lots of people on fixed-rate home loans wondering what options will be available to them once their fixed-rate period ends.

Some options we can help you explore include refinancing (which could mean increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a cash buffer in an offset account.

So if you’re worried about how you might meet your repayments going forward, give us a call today. The earlier we sit down with you and help you make a plan, the better we can help you manage your mortgage moving forward.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Brokers help settle a record 7-in-10 new mortgages

Wed, 01 Nov 2023 21:59:11 GMT

Mortgage brokers have notched up a new personal best, with seven out of every 10 new mortgages settled thanks to their help! It’s a sure sign that mortgage brokers are delivering the goods when it comes to helping Australians move into their dream homes.

In the nine months to 31 March 2023 (while interest rates were rising), mortgage brokers helped settle more than 70% of all new residential home loans, according to the latest data from the MFAA .

It’s the first time ever that brokers have helped settle more than 70% of home loans over a three-month-plus period.

For context, just two years earlier brokers were helping settle between 50-60% of new home loans.

So why are more Aussie home buyers turning to mortgage brokers?

For starters, it looks like word is getting out about how much help we can provide when it comes to giving you an informed choice with your home loan.

And in this environment of higher interest rates, it’s important to be sure your home loan offers value.

With a wide network of lenders – including big banks, small banks and non-banks – brokers are well-placed to help you choose the loan that’s right for you.

It doesn’t end there, though. Here are five more reasons why Australians are turning to brokers for help.

1. Brokers do the legwork

There are hundreds of home loans to choose from. But who’s got the time to find a loan that suits your needs?

Your broker does.

Better still, your broker does a lot of the legwork, sorting the paperwork and supporting your loan application right through to settlement.

That lets you sit back, relax, and focus on moving into your new home.

2. We’re flexible

You’re busy, right? That’s why brokers offer flexible appointment times.

Want to chat after hours? No problemo.

Prefer to chat online rather than face-to-face? Can do.

It may seem like a minor benefit, but the flexibility brokers offer is a big deal when you’re flat out with work, family, or just busy house hunting.

3. Brokers provide tailored facts

Brokers provide clear details to help you make informed decisions.

From your borrowing power, to how much of a deposit you really need, and what your loan repayments will be under various scenarios, we’ll crunch the numbers based on your unique situation.

It takes the guesswork out of buying a home and lets you plan ahead.

4. No additional costs and a best interests duty

It often comes as a surprise that a broker’s home loan help comes at no cost to their clients. That’s because brokers are paid a commission by lenders.

Rest assured though that unlike the banks, we’re (happily) bound by a best interests duty that means we’ll always put your best interests first.

So while banks and digital lenders might try to tempt you with cashback offers for loan products that may not really be in your best interests (due to fees, high interest rates, and other undesirable loan terms), we’ll only ever try to match you up with lenders and loans that are in your best interests.

5. Brokers keep working for you over the long term

Chances are you’ll have your home loan for quite a few years.

We’ll be with you along the way to help make sure your home loan continues to be the right option for you, no matter how your life changes.

So call us today to see why more Australians than ever are partnering with a broker.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Revealed: the four cities tipped to be future property hotspots

Wed, 25 Oct 2023 21:40:47 GMT

No matter whether you’re in the market for a home or an investment property, it makes financial sense to buy in an area where values are tipped to rise. But where to look? Today we’ll unveil the Australian cities where population growth is tipped to turbo-charge the property market.

One of the biggest drivers of property price rises right now is … drumroll … population growth, according to PropTrack .

Let’s take a look at the cities more people are expected to call home.

Is the regional renaissance over?

During the height of the COVID-19 pandemic, Australians were flocking to regional areas.

The population of regional Australia grew by 70,900 people during 2020-21 – the first time in over 40 years that the regions outpaced capital cities.

However, the COVID-inspired rush to the regions is reportedly over.

Despite the new work-from-home trend, the reopening of borders is seeing a return to urban living.

According to property exchange platform PEXA , this will see two-thirds of Australia’s population growth concentrated in four cities over the next two decades.

Which cities are set to benefit?

PEXA is predicting population growth of 7.4 million between now and 2041.

That’s a lot of people looking for a place to live.

It’s not just about net migration to Australia, either.

Regional dwellers, especially younger people, are expected to head to urban areas, attracted by the availability of study and work opportunities.

The upshot is that two million new homes will be required over the next 18 years, and 67% of population growth will be concentrated in Sydney, Melbourne, Brisbane and Perth.

The stats are astonishing.

PEXA says the four hotspot cities require vast numbers of new homes:

– 723,000 in Melbourne (that’s 40,000 new homes per year, or 772 per week);
– 582,000 in Sydney;
– 381,000 in Brisbane; and
– 334,000 in Perth.

Adelaide meanwhile is predicted to need at least another 141,000 dwellings between now and 2046.

What does this mean for property buyers?

For starters, increased demand on this scale is expected to continue to push up property prices unless supply can increase at a similar pace.

Despite higher interest rates, already we have seen values rise in all of these four cities over the past 12 months.

CoreLogic says property prices have soared 7.3% in Sydney over the past year, 5.0% in Brisbane, a whopping 8.8% in Perth, and a comparatively modest 1.5% in Melbourne (and 5.0% in Adelaide).

So if you own property in these cities, you could be sitting on more equity than you realise – with potentially more to come.

Or, if you’re considering buying, particularly as an investor, it could be worth looking at one of these hotspot cities – even if you don’t live there yourself.

Are you home loan ready?

No matter where you plan to buy, understanding your borrowing power is a key starting point.

Give us a call today to find out how much you can borrow and what grants and schemes you might be eligible for to help fund your next purchase.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

How much can you really save by refinancing?

Thu, 19 Oct 2023 00:38:46 GMT

Not sure what refinancing is all about? You’re not alone. Our quick explainer lets you master the basics and helps you work out how much you could save.

Home loan refinancing is a hot topic right now.

Ever since interest rates hit an upward trajectory in May 2022, skyrocketing numbers of homeowners – as many as 28,000 each month – have turned their attention to refinancing.

However, plenty of Australians could be missing out on the savings of refinancing simply because they’re unsure of what’s involved.

Research by Finder shows one-in-five people are in the dark about refinancing, while 63% admit to being only “slightly confident” in their knowledge of refinancing.

So, let’s take a quick look at what refinancing is, and how it can reduce stress by potentially putting cash back in your pocket.

What does refinancing mean?

Refinancing simply means replacing your old mortgage with a new loan and lender.

The process is similar to the one you followed to apply for your current loan.

You decide the loan you’d like to switch to, make a formal application, and provide evidence of income, expenses, and your personal ID.

If the loan is approved, you can sit back and relax as the new lender arranges to pay out your old loan. When that’s taken care of, you just start making repayments to the new bank.

Refinancing can be a surprisingly simple process. Better still, it can all happen very quickly, usually taking about four weeks from start to finish.

Refinancing can be a stress buster

Refinancing can be an opportunity to access home equity, enjoy better loan features, or consolidate several personal debts.

But the number one reason for refinancing is to save money by paying a lower loan interest rate. Those savings can help take the financial pressure off homeowners.

According to Finder, 60% of refinancers admitted to being stressed about their home loan before deciding to switch.

If that sounds like you, making the move to a new loan could be a valuable stress buster.

How much could you save by refinancing?

Potentially, a lot!

That’s because lenders are still saving their best deals for new customers.

The average rate on established loans is currently 6.20%. But if you’re a new customer, you’re more likely to pay an average rate of 5.99%.

That’s an instant saving of 0.21% interest. Think of it as reversing almost one official rate hike.

So what does that rate difference mean for your hip pocket?

Right now, the average loan being refinanced is worth $526,093. On that balance, a 0.21% rate saving could slash more than $70 off each monthly repayment, which equates to $840 in the first year alone, assuming a 30-year loan term.

Is refinancing right for you?

If you’re starting to feel the interest rate squeeze, give us a call today to discuss your refinancing options.

We’ll help you work out if refinancing is the right step for you and how much you could save by switching to a new loan and lender.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

One-in-three first home buyers use guarantee schemes

Wed, 11 Oct 2023 23:41:49 GMT

Know anyone who wants to buy their first home? A new report confirms that low deposit schemes are getting younger buyers into a place of their own sooner.

First home buyers are ignoring headlines warning that it can take years to save a deposit.

Instead, they’re flocking to guarantee schemes that allow them to get into the market with just a 5% deposit – and without the cost of lenders’ mortgage insurance (LMI).

NHFIC, which runs the First Home Guarantee schemes set up by the federal government, says that in 2022/23, close to one-in-three first home buyers tapped into the guarantee schemes.

That’s up from one in seven the year before.

In total, 41,700 home buyers got into the market with the help of guarantee schemes last financial year, following an uptick in the number of places available.

Younger Australians are buying a home

What’s especially exciting about NFHIC’s research is that it shows the schemes are allowing younger buyers to crack the property market.

In 2022/23, more than half of all places in the First Home Guarantee and Regional First Home Buyer Guarantee were taken up by people under the age of 30.

There has also been a fivefold increase in the number of buyers aged 18-24.

Key workers are buying with just a 5% deposit

The low deposit schemes are also helping a growing number of key workers such as teachers, nurses and social workers purchase a home.

Around 7,721 guarantees were issued to key workers last financial year. Great news for these essential workers in our community!

Debunking the low deposit myth

The First Home Guarantee has at times attracted criticism. This has largely been around the risks of buying with just a 5% deposit, which can mean taking on a larger loan with higher repayments.

But NFHIC data suggests this hasn’t been a problem.

Fewer than 0.1% of homeowners using the schemes have fallen behind on their loan repayments, which is less than the market average for all buyers with a low deposit loan.

Better still, close to 10,000 scheme borrowers (over 12% of total guarantees issued to date) have already transitioned out of the scheme, with most of these buyers having accumulated enough equity to achieve a loan-to-value ratio (LVR) of less than 80%.

Could you be eligible for a 5% deposit scheme?

If you’re a first home buyer struggling to save a 20% deposit, it’s good to know there is a pathway to home ownership that can get you into a place of your own sooner.

And it can also help you to avoid paying LMI – which can cost you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.

Conditions apply for the 5% deposit schemes, but new rules mean you can buy with a sibling or mate and still be eligible for this valuable financial helping hand.

With property values rising in many markets across Australia, time is of the essence.

Call us today to see if you can buy a home with a 5% deposit and zero LMI.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The one big factor pushing house prices up

Wed, 04 Oct 2023 23:40:48 GMT

Property prices have soared almost 7% this year alone. With the upswing predicted to continue, we unpack what’s driving national housing values higher – and why it could pay to get into the market sooner.

Another month, another round of price upticks.

September marked the eighth consecutive month of home price growth, with CoreLogic saying property values nationally are up 6.6% since January.

That’s a solid price hike. The crazy thing is that prices are soaring despite a whole slew of interest rate hikes over the past 18 months.

So what’s pushing prices higher?

The key factor putting a rocket under property prices is a shortage of homes listed for sale.

Homeowners are sitting tight rather than selling across a number of cities, and that’s increasing competition between buyers.

According to CoreLogic, Adelaide, Brisbane and Perth have particularly low levels of homes for sale – around 40% less than previous 5-year averages.

There’s a bit more choice for buyers in Sydney and Melbourne, but both cities are still recording housing price gains (Sydney in particular).

That’s because rising prices aren’t just about a lack of homes listed for sale.

Record levels of net overseas migration are also a contributing factor.

In the year to March 2023, net overseas migration added 454,400 people to our population . That’s an extra 1,245 people each day, all looking for a home.

And according to ABS data , most immigrants settle in Sydney and Melbourne.

So as you can see, despite high interest rates, there’s upward pricing pressure on the nation’s five biggest capital cities (Hobart, Darwin and Canberra meanwhile have all seen house prices drop over the past 12 months).

Will values go higher?

At the current rate of growth, CoreLogic predicts we could see national housing values reach new highs as early as November.

Already, homes in Perth and Adelaide have smashed previous price records, notching up median values of $618,363 and $691,591 respectively in September.

Brisbane homes look set to reach record values in October, with the city’s current median home value ($761,379) just 0.6% below the previous peak.

What does this mean for home buyers?

As home prices nudge towards new highs, PropTrack says last year’s price falls have been completely reversed.

And most of the data suggests that prices are unlikely to take a tumble any time soon.

That’s because it’s possible that interest rates have peaked, population growth is rebounding strongly, and there is a shortage of new home builds.

Already we’re seeing a surge in home loan applications as more Australians recognise the current market provides a window of opportunity to buy before values rise higher.

No matter whether you’re buying a first home, second home or investment property, buying today could help you beat future price hikes.

So if you’ve got your eye on the property market, call us today and we can help you assess your borrowing power in the current climate, and even help line you up with pre-approval so you’re ready to strike when the opportunity arises.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Flat chat: why units could soon become hot property

Wed, 27 Sep 2023 23:17:00 GMT

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

For many of us, buying a house on its own block of land is the ‘great Australian dream’.

While plenty of people achieve this goal, our property journey is often book-ended by apartment living.

For first home buyers, units can be an affordable choice, costing around 30% less than houses according to CoreLogic .

Then, as we head into our senior years, an apartment offers secure, low-maintenance living, often with a wealth of amenities right on the doorstep.

Apartment demand is outstripping supply

Apartments may be affordable today, but a lack of new apartment construction, coupled with rising immigration levels, points to a looming apartment shortage according to CoreLogic.

And that could push values higher.

Over the next few years, new apartment construction is forecast to be 40% lower in the 2010s, leading to a shortfall of over 100,000 homes by 2027 .

Close to 60% of the new home shortfall is expected to be in the apartment market.

On the demand side, CoreLogic says a stronger-than-expected level of migration into Australia has seen overall housing demand “skyrocket”.

Historically, new migrants head to the high-density areas of our big cities, putting extra pressure on the unit market.

As CoreLogic explains, with interest rates potentially easing in 2024, greater demand and tight supply could fuel a “price boom” in the unit market.

Why more of us are choosing apartment living

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Across our major cities, apartments now account for 30% of all homes, up from 23% in 2010.

And the appeal doesn’t just lie with affordability.

Today’s apartments usually come with a wealth of benefits, including:

Government schemes: because apartments are generally cheaper than houses, they’re more often under the price caps for a range of government schemes, including the Home Guarantee Scheme , stamp duty concessions, and first home owner grants (usually for new builds). These schemes can be combined to potentially save you tens of thousands of dollars and get you into the property market years sooner.

Sought-after locations: apartment living can be the difference between living close to work, or facing a long daily commute from the outer suburbs.

Lifestyle advantages: the days of apartments being cramped and lacklustre are over. A variety of on-site amenities, from barbecue areas to pools, gyms and car-wash bays, make unit living convenient and relaxing.

Low maintenance living: not interested in spending precious spare time mowing the lawns or cleaning the gutters? It turns out plenty of others aren’t either. Unlike houses, units require minimal upkeep, letting residents enjoy more quality time.

Improved security: if you’re after a lock-and-leave lifestyle, modern apartments fit the bill. Advanced security features add up to a safe and secure living environment.

Is now the time to take the leap?

Right now, apartments still present an affordable option for first-home buyers, downsizers and investors.

The median apartment price across our state capitals is currently $637,593 – but if CoreLogic is correct, that figure could soon increase as demand outstrips supply.

So if you’d like help exploring your options to purchase your first property – for example, with just a 5% deposit via the Home Guarantee Scheme – then get in touch today to discover your borrowing power.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

3 ways pre-approval can give buyers an edge

Wed, 20 Sep 2023 23:45:20 GMT

There’s a lot to be said for having your home loan pre-approved. But does pre-approval mean you’re putting the cart before the horse? Definitely not. Here are three ways pre-approval can help you get ahead of the competition.

Here’s a handy tip: you don’t have to wait until you’ve found a home you’d like to buy before making mortgage enquiries with a lender.

It’s possible to have a home loan pre-approved before you’ve even started to wear out shoe leather at open home inspections.

It can mean you’re ready to go with your loan, with only a few formalities to sort out, as soon as you’ve found the right place.

Even better, pre-approval doesn’t mean you’re committed to taking out a loan. It’s not a problem if you have a change of plans.

Here are three ways home loan pre-approval can put you in front in today’s market.

1. Pre-approval gives you a budget to stick to

When it comes to a major step like buying a home, there’s no room for guesswork.

With a pre-approved home loan, you know exactly how much you can borrow, and that’s the foundation for your home-buying budget.

It means you can focus on homes within your price range, and make an offer with confidence.

Pre-approval is especially important if you plan to bid at auction. It sets a clear line in the sand for your highest bid.

2. You can act fast

In today’s market, homes are selling in turbo-charged timeframes.

Figures from CoreLogic show the median selling time across our capital cities is just 27 days. That’s less than a month!

So you need to act fast to avoid missing out. Sellers might not wait around while you head to the bank to see if you qualify for a home loan.

Having pre-approval in place means you can get the ball rolling as soon as you find the right home, without getting pipped by a more organised buyer.

3. Pre-approval can show you’re a serious buyer

Nothing says ‘genuine buyer’ like home loan pre-approval.

Don’t be shy about letting real estate agents know your loan is pre-approved. It adds clout to your negotiations and gives vendors confidence that you have the finance to follow up any offer you make.

Just consider keeping some information up your sleeve, such as how much you’ve been pre-approved for.

After all, the real estate agent’s goal is to get the best price for the vendor, not the buyer!

How reliable is pre-approval?

Home loan pre-approval is not a guarantee that you’ll get a home loan.

You won’t get the green light for sure until you’ve found a place to buy, and the bank has checked that the property meets their lending criteria.

Your lender will also want to see that your personal finances haven’t changed since your loan was pre-approved.

It’s also worth keeping in mind that while there aren’t many downsides to obtaining a single pre-approval, getting too many over a short period of time with multiple lenders can potentially negatively impact your credit score and ability to take out a loan – as lenders might suspect you’re financially unstable.

Which pre-approval is better?

Home buyers are often surprised to learn that pre-approval isn’t available with every lender.

Even among banks that do offer this service, not all pre-approvals work the same. One sort is especially worth aiming for.

You may come across two types of pre-approvals:

1. System-generated pre-approvals

This sort of pre-approval is generated by a lender’s computer based on the information you enter about yourself.

You can get a result quickly this way. The catch is that the analysis isn’t thorough, making the outcome unreliable.

In particular, if any of the details you enter are incorrect, the bank’s IT system may wrongly say you don’t qualify for a home loan.

2. Fully assessed pre-approvals

As the name suggests, this type of pre-approval involves your bank’s credit team taking a close look at your finances, credit score and other personal and financial details to be sure you can comfortably manage a home loan.

A full assessment takes more time, but it’s worth the wait. It can help you feel more confident that you’ll be offered a home loan when you find your ideal property.

Want to find out more about pre-approval?

If you’re looking to buy a home and want to get an edge over the competition (to put in an early offer, for example), then pre-approval might be a much-needed ace up your sleeve.

We can help you work out which lender and which loan product is a good fit for your pre-approval situation.

So call us today to take the guesswork out of home loan pre-approval, and give yourself a head start over other buyers in the market.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Property market climbs towards new peak | Osinski Finance

dave@99content.co (Dave Barbeler) — Thu, 14 Sep 2023 00:23:13 GMT

The property market has thumbed its nose at higher interest rates, with values rising almost 5% since March. Here’s why national housing prices are climbing higher.

Australia’s housing market is making a bigger comeback than Barbie.

Despite interest rates rising 4% in a year and a cost of living crunch, home values have skyrocketed with prices soaring 4.9% nationally since March 2023.

The strength of the rebound has wiped out about half the losses recorded in the downturn between April 2022 and February 2023, when home values fell 9.1%.

In fact, the value of Australia’s housing market just hit $10 trillion again – the first time the total estimated value hit double digits since June 2022.

So what’s driving home prices higher?

CoreLogic says three factors are pushing up property values:

– Net overseas migration: more people are arriving from overseas than are leaving. That’s a lot of extra people looking for a place to live.

– Use of savings, profit and equity: upgraders are using savings, equity or profits from their home to buy their next place instead of borrowing more. This has seen demand for property stay strong even though rates have climbed higher.

– Tight supply: the volume of homes listed for sale is a lot lower than in previous years. That spells competition between buyers, which is putting pressure on prices.

Will property prices keep rising?

Home values have been rising steadily over the past six months. What happens from here hinges on how interest rates move, and whether the economy stays in good shape.

As a guide, CoreLogic is expecting some heat to come out of the market recovery by the end of 2023.

That’s great news for home buyers – as long as cooler prices aren’t the result of more rate hikes or a sluggish economy.

How to get ready to buy your next home

In today’s environment of rapidly rising home values, home buyers can score a winning edge by having their ducks in a row before inspecting homes listed for sale.

This increasing need to be organised is one of the key reasons why 67% of Australians turn to a mortgage broker for expert support when they buy their home.

And according to research by Helia , prospective home buyers are getting support in the areas of:

– determining their borrowing power – 63% of those surveyed;
– help choosing the right loan – 60%;
– getting a home loan pre-approved – 56%; and
– applying for a loan – 55%.

So if you’d like help in any of these areas, or you want to get into the market before prices rise further, call us today to explore your home loan options.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How does your home loan compare | Osinski Finance

Wed, 06 Sep 2023 23:22:53 GMT

No change to the cash rate again this month, but lenders’ mortgage rates have been jumping around more than a bunch of toddlers at a Wiggles concert. We reveal the current average rates to see how your loan compares.

Home owners are celebrating the official cash rate staying on hold for several months. But behind the scenes, Mozo reports that lenders have been “astonishingly busy” adjusting their home loan rates – both up and down.

Key movements over the last month include NAB, CommBank and Bank of Queensland lifting some of their variable rates.

However, in the fixed rate market, plenty of lenders including big banks such as CommBank, ING and Macquarie have slashed their fixed rates.

It goes to show, you can’t assume your home loan still offers a competitive rate just because the official cash rate hasn’t budged.

Question is, how does your loan shape up against the market?

Average variable home loan rate

Across owner-occupied home loans, the average variable rate right now is 6.60%.

Remember though, this is an average. It can be possible to pay far less.

We are still seeing home loan rates starting with a ‘5’ rather than a ‘6’. This makes it worth checking to see what you’re currently paying.

Fixed rates prove a mixed bunch

As of early September, fixed rates are averaging:

– 6.36% – one year
– 6.57% – two years
– 6.60% – three years

If you’re bold enough to fix for five years, the average rate is currently 6.49%.

These fixed rates assume a $400,000 loan with a 20% deposit, meaning a loan-to-value ratio (LVR) of 80%.

When could we see rate cuts?

It’s the question everyone is asking: when will interest rates start to fall?

First the good news.

A number of banks, including ANZ and Westpac , are tipping the cash rate has peaked and could stay the same for some time.

Westpac thinks we could see the cash rate fall by September 2024. AMP meanwhile is forecasting rate cuts even sooner.

But … not everyone agrees.

NAB economists expect one more rate hike before the end of 2023, with rates likely to fall by next Spring.

And the Reserve Bank of Australia (RBA), which makes the official rate calls, is warning we could see more rate hikes depending on how inflation and the economy are tracking.

Make a rate cut of your own

Even the experts can’t agree on where rates are heading.

But the banks aren’t waiting around for the RBA to drive their rate decisions, and neither should you.

Call us today to see how your home loan rate compares to the broader market. Chances are there’s a better deal out there just waiting to be claimed.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Low deposit first home buyers now have $82,000 in equity

Wed, 30 Aug 2023 23:40:41 GMT

First home buyers who bought into the market using the federal government’s 5% deposit scheme have racked up $82,000 in home equity on average, new data shows.

It’s been three years since the First Home Loan Deposit Scheme was launched, and while it’s known today as the Home Guarantee Scheme (HGS), it’s still helping first home buyers get into the market with just a 5% deposit and no lenders’ mortgage insurance (LMI).

The HGS attracted criticism from some circles – some pundits pointed to the low deposit as a stumbling block that could land homeowners in trouble if property values fell or interest rates rose.

It turns out both have happened, yet first homeowners haven’t let it hold them back.

From $35,000 deposit to $82,000 home equity

New data from the National Housing Finance and Investment Corporation (NHFIC), which runs the HGS, shows that first buyers who tapped into the 5% deposit scheme are now sitting on impressive piles of equity.

On average, these first-time homeowners have racked up $82,000 in home equity.

It’s a great result, especially when you consider that the average first home deposit across the scheme was just $35,200 in 2020, rising to $36,400 in mid-2023.

Compare that to the average deposit of $159,000 across the broader first-home buyer market, and it’s easy to see how the 5% deposit scheme gives first-home buyers a valuable leg-up into the market sooner.

What is the Home Guarantee Scheme?

Getting a deposit together can be a massive hurdle when buying a home.

Research by Finder shows it can take 12 years for a young Australian to save a deposit for an average-priced apartment, or 16 years to accumulate the deposit for a house.

But if your deposit is lower than 20%, you can get stung with LMI, which can cost you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.

But through the NHFIC, the federal government has three low deposit, no LMI schemes – all under the HGS umbrella.

The first two, the First Home Guarantee and Regional First Home Buyer Guarantee , support eligible buyers to purchase a home with a low 5% deposit and no LMI.

The Family Home Guarantee , meanwhile, assists eligible single parents and guardians to buy a home with a deposit of just 2% and no LMI.

Want to crack the market sooner?

Along with the HGS, there can be other options such as family pledge loans, or the use of a guarantor, that could slash the time it takes to buy a home of your own.

So if you want to crack the property market sooner rather than later, call us today to find out if you’re eligible to buy a first home with just a 5% deposit.

You could be in a place of your own by Christmas!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Help to Buy Scheme set to kick off in 2024

Wed, 23 Aug 2023 23:22:21 GMT

The highly anticipated Help to Buy Scheme will kick off next year, giving more Aussies a chance to score their dream home. Today we’ll unpack how the new federal government scheme will work, who it’ll benefit, and the fine print you need to know.

A key election promise of the Albanese government, Help to Buy is a shared equity scheme aimed at helping 40,000 low and middle-income earners buy a place of their own (10,000 allocations per year).

The scheme involves the government making an equity contribution worth up to 40% of the value of a new home, or 30% of the value of an established home.

But that doesn’t mean Anthony Albanese will be rocking up unannounced to claim the guest bedroom, as we’ll explain further below.

Homebuyers need a minimum 2% deposit, and must be able to qualify for a home loan with a participating lender to fund the balance of the purchase. No lenders mortgage insurance is payable.

Homebuyers can choose to boost their stake in the property at any time, and the government won’t charge rent on its share of the home.

Who is eligible for Help to Buy?

Help to Buy is not limited to first homebuyers.

You do need to be an Australian citizen, and you can’t currently own your home or have a share in a residential home.

Income limits apply too. Singles can earn up to $90,000 annually, or up to $120,000 for couples.

Help to Buy property price limits

Property price limits apply for Help to Buy across state capitals, regional centres and ‘rest of state’ areas. The price caps are shown below.

NSW capital city and regional centres: $950,000
Rest of state: $600,000

VIC capital city and regional centres: $850,000
Rest of state: $550,000

QLD capital city and regional centres: $650,000
Rest of state: $500,000

WA capital city and regional centres: $550,000
Rest of state: $400,000

SA capital city and regional centres: $550,000
Rest of state: $400,000

TAS capital city and regional centres: $550,000
Rest of state: $400,000

ACT: $600,000

NT: $550,000

Regional centres are Newcastle and Lake Macquarie, Illawarra, Central Coast, North Coast of NSW, Geelong, Gold Coast and Sunshine Coast.

How much can I save with Help to Buy?

Under Help to Buy, homebuyers can take out a much smaller home loan. This provides valuable savings in loan repayments and interest costs.

The federal government estimates homebuyers can save up to $380,000 on a new home purchased through the scheme, or as much as $285,000 on an established home.

The fine print to be aware of

For low and middle-income earners struggling to buy a home, Help to Buy may be a game-changer.

But before you rush in, bear in mind that the scheme will see you share a stake in your home with the government.

So if or when you decide to sell the property, the federal government will put its hand out for a slice of the sale proceeds.

In this way, you won’t get the full benefit of the property’s long-term price growth, but rather a share of the profits in line with the proportion of ownership you hold.

Now’s the time to start planning

With Help to Buy due to launch next year, now’s the time to start planning.

If it’s something you might be interested in, don’t delay reaching out to us to find out more – it’s bound to be popular, and places are limited, so you’ll want to start preparing now.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

More Aussies turn to mortgage brokers for a hand managing hikes

dave@99content.co (Dave Barbeler) — Wed, 16 Aug 2023 23:33:39 GMT

An avalanche of rate hikes over the past 18 months has supersized home loan repayments. But savvy homeowners aren’t panicking. In fact, more mortgage holders than ever before are reaching out to brokers for expert help.

A recent survey by the Mortgage & Finance Association of Australia (MFAA) shows 95% of mortgage brokers are meeting with homeowners who have never used a broker before.

And it’s a move that’s paying off.

The MFAA reports nine out of ten brokers have successfully secured a rate discount for their clients this year.

And more than eight out of ten have helped their clients refinance to a new lender.

It just goes to show that if you’re struggling with mortgage repayments, you don’t have to go it alone.

How much could you slash from your home loan?

Part of a broker’s service involves contacting your current lender to negotiate a lower rate.

But if they don’t come to the party, real savings action can lie in refinancing.

Mozo has done the sums on the savings potential of switching from the average variable rates (6.60% for owner-occupiers; 6.96% for investors) to one of the lowest rate loans on the market.

They found that homeowners and investors in capital cities across the country who switch to a new lender can slash their repayments by $474 per month, on average

That’s as much as $5,691 annually.

Now, the lowest rate loan might not be available to you in your situation (we’d have to help you check), but it does highlight that there are big savings to be made if you can refinance to a lower rate.

What if you have a fixed-rate home loan?

You’ve probably heard about the ‘mortgage cliff’ – it’s a term used to describe the financial shock that homeowners can face when their super-low fixed rate comes to an end.

And we’re not out of the woods (or away from the cliff) just yet.

The Reserve Bank of Australia says around one million borrowers will come off a fixed rate over the next 18 months.

Crazy thing is, a Finder survey shows more than one in ten people with a fixed rate home loan are in the dark about when their fixed rate will end.

That matters because skyrocketing interest rates mean the average mortgage holder farewelling a fixed rate could face a $1,677 hike in their monthly loan repayments.

So if you’re on a fixed-rate home loan, it might be worth checking when the fixed rate period is due to end, and if it’s soon, what options are available to you.

Time to call in the experts

No matter whether you’re feeling the pressure of higher rates, thinking of refinancing, or unsure about what’s happening with your fixed rate, it’s important to reach out for expert help.

Give us a call today for a helping hand with your home loan.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Sneaky rate hikes – is your lender behind them?

dave@99content.co (Dave Barbeler) — Wed, 09 Aug 2023 23:36:38 GMT

The Reserve Bank (RBA) may have kept the cash rate on hold but that hasn’t stopped some lenders from hiking their variable home loan rates. Here’s how borrowers are fighting back.

Home owners may be celebrating two months of the RBA cash rate staying on hold. But don’t pop the champagne cork just yet.

Mozo reports that some lenders have sneakily hiked their variable home loan rates in July despite the cash rate holding firm.

These hikes, known as ‘out-of-cycle’ rate rises, can fly under the radar.

So it’s important to keep an eye on what your lender is doing.

Who’s hiking rates?

Mozo says ANZ, Commonwealth Bank, Macquarie, Easy Street and Great Southern Bank are among the lenders that have topped up their variable loan rates even though the cash rate has stayed on hold.

In some cases the upticks may be as little as 0.03% – but some lenders have lifted their variable rates by as much as 0.15%.

On a $500,000 loan that could mean paying an extra $750 each year.

And right now every penny counts.

As a result, some home owners are taking matters into their own hands to help stay afloat.

One in two have changed their loan payments

Research by Canstar shows almost half of Australian mortgage holders are navigating higher rates by doing the following:

– 35% are reducing extra repayments,
– 29% are stopping extra loan repayments altogether,
– 26% are tapping into redraw or offset funds to help with repayments,
– 22% are refinancing to a lower rate loan, and
– 12% are extending their loan term.

Other changes involve switching to interest-only repayments, as well as more drastic moves such as selling a home or investment property.

Be warned though, altering repayment strategies can come at a cost

While the above strategies can help get you through a tough time, it would be remiss of us not to mention that some of them can come at a cost over the long term.

Reducing or stopping extra payments, for example, means you’ll likely have your home loan longer and therefore pay more interest.

Likewise, if you tap into your redraw or offset funds, you’ll pay more interest each month.

Last but certainly not least, by extending the term of a $500,000 loan at 6.73% from 20 to 25 years you could cut your monthly repayments by $348. But according to Canstar calculations, it could also mean paying a whopping $123,464 in extra interest over the life of the loan.

What can you do?

Those sneaky out-of-cycle rate hikes aren’t just annoying. They can leave you out of pocket while beefing up your lender’s profits.

But you don’t just have to wear the cost.

The first step is knowing the rate you’re paying.

Check your loan statements, or ask us to investigate for you.

If you’re not happy with the rate, we can help ask your current lender for a discount.

And if they don’t come to the party, we can help you weigh up the possible costs of making a switch.

We can help you crunch the numbers to reveal which strategy will help you save today – and tomorrow.

So give us a call to find out if your lender is quietly lifting your loan rate and what you can do about it.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Has the tide turned? What the RBA rate pause means for homeowners

dave@99content.co (Dave Barbeler) — Thu, 03 Aug 2023 00:07:38 GMT

Mortgage holders rejoice – the Reserve Bank of Australia (RBA) kept the cash rate on hold in August for the second month in a row. So have we finally reached calmer waters? Or is there one last rate rise wave headed our way?

In what many will see as better news than a Matildas’ World Cup win, the RBA held interest rates steady in August for the second month in a row.

After a relentless string of rate hikes (12 since April 2022), homeowners may be sceptical about what’s happening.

So is the RBA board finally satisfied we’ve endured enough rate hikes? Or is RBA Governor Philip Lowe saving one last rate hike for mortgage holders as a parting gift before he vacates his position next month?

Let’s take a closer look at some of the underlying data.

Inflation pressures are easing

The RBA has made it clear that it has been hiking rates to help lower inflation.

So it was welcome news this week when the Australian Bureau of Statistics announced that annual inflation has dropped to 6.0% .

It’s fair to say most of us wouldn’t normally celebrate goods and services prices rising 6% over the past year.

However, it’s a sign that inflation is still falling from its peak of 7.8%, and that’s exactly what the RBA has been aiming for.

Why the rate pause?

The RBA knows it’s treading a fine line with interest rate decisions. At its August board meeting the central bank explained why it kept interest rates in a holding pattern:

– It can take time for the economy to respond to previous rate hikes.

– The outlook for household spending is uncertain. Many households are experiencing a squeeze on their finances. Others are benefiting from rising housing prices and higher interest income.

– Consumer spending has slowed “substantially” due to cost-of-living pressures and higher interest rates.

The tide might be turning, but is one last rate rise wave coming?

Inflation is down. Rates are steady.

So far, so good.

But we may not be in calmer waters just yet.

As this diagram shows , inflation is still well above the RBA’s target range of 2-3%.

So the RBA has left the door open for further rate hikes depending on how the economy is tracking, and of course, what happens with inflation.

Indeed, the RBA said as much in its latest rate announcement: “Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe”.

So … what’s the rate outlook?

As mentioned earlier, RBA Governor Philip Lowe will vacate the top job on September 17 and be replaced by his deputy, Michele Bullock.

Thus, one might think that if any more rate rises were planned in the short term, they’d take place before that transition occurs to help give Ms Bullock a clean slate to work from (assuming inflation data continues on a downward trend). And there’s only one RBA board meeting between then and now – on September 5.

Indeed, Westpac has made a bold call , saying we could be heading into a lengthy period of stable rates ahead of a rate cut, possibly in the second half of 2024.

So, with any luck, we could be through the thick of it.

Then again, all things considered, interest rates are now much higher than they were 18 months ago and will likely remain so for some time.

So if it’s been a while since you last looked at your home loan and current interest rate, call us today to make sure you’re paying a competitive rate on a loan that’s well-suited to your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why are fixed rates still rising? And when might they drop again?

Thu, 27 Jul 2023 13:18:05 GMT

With plenty of pundits tipping interest rates will start to fall in the next 12 months, we look at why the big banks are hiking their fixed rates – and unpack what it means for the rate outlook.

The past few months have seen interest rates on fixed home loans deliver more ups and downs than a rollercoaster.

As recently as April 2023, a number of lenders were starting to cut their fixed rates.

Fast forward to July, and the major banks – NAB, Westpac, ANZ and the Commonwealth Bank – have all upped their fixed rates in the past fortnight .

Now you won’t find a fixed rate below 6% among the big four banks.

But aren’t interest rates expected to fall?

Home owners battling high rates are generally being urged to “hang in there” because interest rates are expected to slide down from their current highs over the next 18 months.

Westpac is predicting the Reserve Bank’s cash rate will drop to 3.85% by the end of next year.

Better still, NAB is anticipating the cash rate could dip to 3.10% by late 2024.

So … why are fixed rates rising then?

Some lenders are stepping up their fixed rates because they believe rates may go higher before they trend lower.

NAB and Westpac are both tipping the cash rate, currently sitting at 4.10%, could go as high as 4.60% by the end of the year.

Over at the Commonwealth Bank, the expectation is for one more rate hike, taking the cash rate to 4.35%, with a chance the cash rate may ratchet up to 4.60%.

This can all be confusing. The main point is that the prospect of rates heading higher before they head south again is a key factor driving some fixed rates higher.

What should I do?

The first step is to bear in mind that forecasts are just that – predictions. Not even the banks have foolproof crystal balls.

And the recent news that inflation slowed in the June 2023 quarter, with quarterly price rises being the lowest since September 2021, could see the Reserve Bank ease back on the interest rate dial. It could even bring fixed rates back down.

It’s also worth pointing out that not every lender is lifting their fixed rates.

A number of smaller lenders have trimmed their fixed rates, with some still offering rates below 6.0%.

That’s why it’s so important to get in touch so we can help you explore a wide range of lenders and loan products.

Your next step

Locking in your loan rate can bring certainty to your budget, and eliminate the stress of the rollercoaster rate ride.

If you’re not sure whether to go variable or fixed – or a combination of both – get in touch to see how the numbers stack up for your situation.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Where homeowners are spending $1 billion a month

Thu, 20 Jul 2023 13:12:43 GMT

Australians are showering their homes with $1 billion worth of love each month as home improvement spending ramps up. We look at the cost of popular renovations – and how to foot the bill.

Belts may be tightening but not, it seems, for renovators.

The latest figures from the ABS show Australians spent a whopping $1,044 million on home renovations in May 2023 alone. That’s up 4.3% on the previous month.

Our passion for renovating may stem from binge-watching home improvement shows through the pandemic. But there could be another factor at play.

It can simply be a lot cheaper to renovate your home than to sell up and buy elsewhere.

If you’re thinking of a few home improvements, here’s what to consider.

What are the most popular renovations?

The 2022 Houzz & Home Report reveals which rooms Australians have targeted for home improvements.

The kitchen comes up trumps, accounting for almost one in four (23%) renovations.

Other top contenders were living room, bathroom and bedroom makeovers (each 20%).

How much will a renovation cost?

A key step in planning a renovation is crunching the numbers to know the likely cost. This is a must-do before you start collecting colour charts and carpet samples.

Smaller renovations can be affordable do-it-yourself projects. For any structural or specialist work it pays to call in the tradies – and that’s when the cost can start to escalate.

The latest Archicentre Cost Guide sets out typical costs for popular home improvements.

As a guide, you can expect to pay:

– $75-$120 per square metre to polish timber floorboards;
– up to $35 per square metre for interior painting;
– up to $4,600 for an extension; and
– up to $48,000 for a new kitchen (excluding appliances).

While home improvements may not come cheap, quality renovations can boost your lifestyle and your home’s value.

They can also be a money-saver – ‘green’ improvements such as installing rooftop solar panels can put money back in your hip pocket through lower utility bills.

How to pay for renovations

Working out how you’ll pay for a renovation is an essential part of the planning process.

You need to be sure you can comfortably afford the improvements, and avoid the not-so-exciting prospect of running out of funds mid-way through a project.

Using cash savings or a personal loan may be suitable for smaller projects – the shorter term of a personal loan (usually less than five years) can help keep a lid on the interest cost.

For more expensive projects, a home loan top-up can be a quick and easy solution, though it can hinge on you having sufficient home equity to qualify for additional funds.

At the top end of the scale, a dedicated renovation or construction loan is another option.

These can work by drip-feeding funds as different stages of the project are ticked off. You generally only pay interest on funds drawn down, making the cost more manageable.

Get started on your renovation

If you’d like to give renting the big swerve and get a place of your own, give us a call.

Not only can we help you find a suitable loan and help organise your finances, we know the government schemes you may be eligible for to help get you into your first home sooner.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Could apartment living help you dive into the property market sooner?

Thu, 13 Jul 2023 13:01:43 GMT

Buying a home for the first time can be challenging, especially with house prices soaring in recent years. So could switching from house hunting to unit searching be the way forward for you?

There’s no denying that getting into the property market in today’s economic climate ain’t easy.

The average Australian house price is now $725,000 – that’s 30% more expensive than the average national unit price.

Compare the price gap to September 2021, when the national median house price was $570,000 – just 9.6% higher than the median unit price of $520,000.

But is opting for a unit the right move for you?

Today we’ll look into the pros and cons of buying an apartment for your first home.

Affordability, lifestyle and location

First the pros: units are usually more affordable than houses.

Median capital city house prices have grown 31.6% in the past five years, while units have only increased by 9.8% .

Lower prices can not only make it quicker for you to save a deposit for an apartment, they could also make you eligible for better stamp duty concessions (either reducing your stamp duty bill or eliminating it entirely, depending on your state or territory).

And while a unit may not always have space to accommodate future expansions to your life and family, they are often located in thriving local community hubs with amenities, shops, and transport on your doorstep – great for young families still wanting to be in the thick of the action.

Potential for investment

Admittedly, owning a house can have advantages over owning a unit.

For starters, you don’t have to fork out for body corporate fees. And the capital growth you can gain from owning the plot of land your abode sits on often makes house ownership more attractive.

But buying a unit – rather than holding off until you can afford a house – also offers investment potential.

By purchasing a unit, you’re investing and building up your own equity, rather than paying off someone else’s mortgage if you’re renting.

So while you may not be able to buy the house just yet, an apartment can provide a valuable stepping stone to reaching that goal.

And should you be in a position to hang onto your unit when you upgrade to a home, you may get some decent rental income – if you buy in the right spot.

On top of this, unit upkeep can be easier because those body corporate or strata fees go towards various maintenance activities.

Other affordable options

All that said, if apartment living isn’t for you, there are other cost-effective options for you to explore.

You could consider searching slightly further afield, with recent research identifying “sister suburbs” that are up to 200% cheaper than their in-demand neighbouring suburbs.

Rent-to-own arrangements could also make it easier for you to crack the market. These arrangements enable tenants to buy the property they’ve been renting once the lease ends, at a previously agreed price.

And whether you’re in the market for a house or a unit, there are government schemes that can help you fast-track home ownership and save.

The federal government has three low deposit, no lenders mortgage insurance (LMI) schemes available for eligible first-home buyers, regional first-home buyers, and single parents.

Eligible buyers can purchase a home with a deposit as little as 5% through the First Home Guarantee and Regional First Home Guarantee . While the Family Home Guarantee assists eligible single parents and guardians to buy with a 2% deposit.

Not paying LMI can save you anywhere between $4,000 and $35,000 – depending on the property price and your deposit amount.

The good news is that eligible first-home buyers can bundle the federal home guarantee schemes with other state government first-home buyer grants and stamp duty concessions for major savings

Get in touch

If you’d like to give renting the big swerve and get a place of your own, give us a call.

Not only can we help you find a suitable loan and help organise your finances, we know the government schemes you may be eligible for to help get you into your first home sooner.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Mortgage holders breathe a sigh of relief as RBA puts cash rate on hold

Tue, 04 Jul 2023 05:33:00 GMT

Phew! The Reserve Bank of Australia (RBA) has today decided to put the official cash rate on hold. So is the end of this rate hike cycle finally in sight?

The decision to keep the official cash rate at 4.10% will be welcomed by homeowners around the country after monthly repayments increased by about $1,135 per $500,000 loaned (for a 25-year loan) since 1 May 2022.

RBA Governor Philip said as interest rates had been increased by 4% since May last year, the Board decided to hold interest rates steady this month to provide some time to assess the impact of the increases.

“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy,” he said.

However, Governor Lowe kept the door open for potential rate rises in the months to come.

“Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,” he said.

“In making its decisions, the Board will continue to pay close attention to developments in the global economy, trends in household spending, and the forecasts for inflation and the labour market.

How much could your repayments increase if the cash rate is increased?

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

If the RBA increases the cash rate by another 25 basis points, and your bank follows suit, your monthly repayments could increase by another $76 a month. That’s an extra $1,211 a month on your mortgage compared to 1 May 2022.

If you have a $750,000 loan, repayments would likely increase by about $114 a month, up $1,816 from 1 May 2022.

Meanwhile, a $1 million loan would increase by about $152 a month, up about $2,422 from 1 May 2022.

Concerned about your mortgage? Get in touch

Are you starting to feel the pinch? You’re not alone. Many households around the country are feeling the pain of all the rate rises over the past 15 months.

There are also lots of people on fixed-rate home loans wondering what options will be available to them once their fixed-rate period ends.

Some options we can help you explore include refinancing (which could involve increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Mortgage holders breathe a sigh of relief as RBA puts cash rate on hold appeared first on Osinski Finance .

Breaking out of mortgage prison: can easing serviceability buffers help?

Wed, 28 Jun 2023 23:44:00 GMT

Have you been keen to refinance but told you can’t? You’re not alone. Many Australian households are currently locked into their home loans due to rising interest rates. But some banks have recently started to lower their serviceability thresholds.

As interest rates have climbed, Australians have refinanced in unprecedented numbers.

In fact, a record high of $21.3 billion in refinancing took place in March 2023, according to ABS statistics – 14.2% higher compared to a year ago.

But some people are now unable to refinance and take advantage of potential savings because they don’t meet lender requirements.

They’re locked into what’s called “mortgage prison”.

What’s mortgage prison?

You see, prudential regulator APRA has guidance in place that requires lenders to stress-test all new mortgage applications at 3% above the interest rate the borrower applies for – even when refinancing.

And since the RBA’s official cash rate has increased from 0.10% to 4.10% in just 13 short months, many mortgage holders are now unable to refinance because they can no longer meet the 3% mortgage serviceability buffer.

But, there is an “exceptions to policy” in APRA’s guidance that states lenders can override the 3% buffer for exceptional or complex credit applications, if done prudently and on a case-by-case basis.

So recently some big players – including Westpac and Commonwealth Bank (CBA) – reduced their refinancing serviceability buffers to as low as 1%, if borrowers meet certain circumstances (more on that below).

Other smaller lenders are making similar moves, including Westpac subsidiaries St George, Bank of Melbourne and BankSA.

Many in the industry hope this will reduce mortgage stress and defaulted loans, given the current financial climate of rising rates and inflation.

What are the eligibility requirements?

They differ from lender to lender.

But for CBA you’ll need to have a loan-to-value ratio of at least 80%, a squeaky clean record of meeting all your debt repayments over the past year, and be refinancing to a principal and interest loan of a similar or lower value.

You’ll need to meet the 1% mortgage serviceability buffer, too.

For Westpac’s new “streamlined refinance”, you must have a credit score of more than 650.

You’ll also need a good track record of paying down all existing debts over the past 12 months, be refinancing to a loan that has lower monthly repayments than your existing one, and meet the 1% buffer test too, of course.

What’s the catch?

Ok, so under CBA’s new policy, for example, borrowers must extend their loan term out to 30 years.

Obviously this can cost you quite a lot in interest over the long run.

For example, RateCity research shows that if you took out a $500,000 loan with a Big Four bank three years ago, and if you applied for CBA’s refinancing offer today, your mortgage repayments could drop by as much as $235 a month.

But over the long run, you could pay up to an extra $32,117 in interest because you’d be extending your loan by an additional three years.

So while this option could help alleviate some financial stress now, you may have to pay for it over the long run – there’s a bit to weigh up.

Are the recent serviceability changes right for you?

Give us a call today to find out more about refinancing and successfully navigating serviceability thresholds.

We can guide you on ways to improve your chances of refinancing success and help you escape “mortgage prison”.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Breaking out of mortgage prison: can easing serviceability buffers help? appeared first on Osinski Finance .

Homebuying intentions climb as Aussies untie themselves from rental crunch

Wed, 21 Jun 2023 23:33:00 GMT

Despite the soaring cost of living and successive interest rate hikes, homebuying intentions have climbed, latest data shows. So why are so many people still chasing the great Australian dream? And what can you do to make your own dream a reality?

Despite a flurry of rate rises, new data this month shows homeownership is once again a top priority for many Australians, with the number of house hunters increasing.

Commonwealth Bank’s Household Spending Intentions Index showed a strong 14.4% increase in homebuying intentions in May , after dropping in April.

May also saw new home sales increase across Australia for the second month in a row.

So what’s driving this appetite for property when finances are increasingly tight for many? And how can you boost your own chances of cracking the market sooner?

Rental squeeze

Across capital cities and major regional areas, there have been historic rental price increases and low vacancies.

Rental vacancies reached an all-time low of 1.1% in April , with the median price for renting a unit only $39 a week cheaper than renting a house.

Rising overseas migration has contributed to stiff competition in the rental space too – in the March quarter there was a 124% jump in rental enquiries year-on-year from one overseas country alone.

Understandably, many are looking to escape renting and grab their spot on the property market.

But with rate hikes and inflation, saving a deposit is no easy feat for many Australians.

So here are some ways to take the pressure off.

Schemes and grants to save time and money

There are many government schemes and grants designed to help you get into the market. And all can be used simultaneously, which can really bring in the savings!

Through the National Housing Finance and Investment Corporation , the federal government has three low deposit, no lenders mortgage insurance (LMI) schemes available for eligible first-home buyers, regional first-home buyers and single parents.

The First Home Guarantee and Regional First Home Guarantee support eligible buyers to purchase a home with a 5% deposit. And the Family Home Guarantee assists eligible single parents to buy with a 2% deposit.

Not paying LMI can save you anywhere between $4,000 and $35,000 – depending on the property price and your deposit amount – which can fast-track your first home-buying goal by four to five years.

Another home-buying cost that can have a real sting in its tail is stamp duty.

Fortunately for first-home buyers though, state governments have stamp duty concessions available – including South Australia, which announced last week that it was scrapping the tax for first-home buyers on new homes valued up to $650,000.

Meanwhile, Victoria , New South Wales , Queensland , Western Australia , Tasmania , the ACT , and the Northern Territory also offer stamp duty concessions. This can either eliminate or reduce the cost of stamp duty, if eligible.

Most state governments also offer first homeowner grants to help you get the keys to your own home.

Victoria , New South Wales , Queensland , Western Australia , Tasmania , Northern Territory , and South Australia all offer first homeowner grants.

If eligible, you could receive a grant of between $10,000 and $30,000 depending on your state and other eligibility criteria.

Give us a call

It’s important to note that spots for some of these schemes, such as the federal government’s first home guarantee, are limited.

And they’re popular, so it’s best to get in quick.

So if you’d like to kick renting to the curb, get in touch with us today.

We’ll help you work out your borrowing power, your loan options, and factor in what schemes you may be eligible for.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Homebuying intentions climb as Aussies untie themselves from rental crunch appeared first on Osinski Finance .

Mortgage serviceability: how to jump through the hoops

Wed, 14 Jun 2023 23:30:00 GMT

Mortgage serviceability can feel like a frustrating hurdle to clear. But it’s an important safeguard against borrowing too much, particularly in the current interest rate landscape.

It’s in the best interests of all parties involved if your mortgage is chugging along with regular repayments being made.

Borrowing an amount you don’t have a hope in hell of repaying can mean heartache for you, and can land your lender and broker in hot water.

Enter mortgage serviceability.

Before approving your loan application your lender will take a good look at your finances to see if you can meet repayments.

We’ll break down just what to expect with a mortgage serviceability test, and how you can improve your chances of gaining home loan approval.

What is mortgage serviceability?

Lenders and brokers have a duty of care to ensure you’re not provided with a loan that’s beyond your means.

In fact, the National Consumer Credit Protection Act (2009) is in place to ensure lenders and brokers are following responsible lending practices (here’s that hot water we were talking about earlier).

While this protects consumers from landing in financial dire straits, (which doesn’t have anything to do with getting money for nothin’ , unfortunately) … it means that lenders and brokers are serious about checking serviceability, which can create some strict hoops for you to jump through.

So how is serviceability calculated?

Your serviceability is calculated by looking at your income and subtracting your expenses and debt repayments (including your new home loan repayment amount).

We then need to work out what portion of your monthly income can go toward repayments. This is called your debt service ratio.

It’s also important to calculate your debt-to-income ratio, which is a measurement used to compare your total debt to your gross household income.

Your credit card limit will also be taken into account and you may need to prove that you have the means to pay off the limit within three years, even if the balance is $0.

Finally, a serviceability buffer is applied to the current interest rate to see if you’ll be able to continue repayments should interest rates rise.

In 2021, the Australian Prudential Regulation Authority (APRA) raised the serviceability buffer from 2.5% to 3%.

This buffer amount has been the topic of much discussion , with some arguing it’s making it tough for people to pass the assessment and refinance to a lower-rate loan. But APRA is remaining firm at 3% given the current state of interest rates.

How to increase your serviceability

Here are our top tips for increasing your serviceability score and improving your chances of home loan approval:

– Pay down your debts to improve your debt-to-income ratio.
– Reduce your expenses by cutting out non-essentials and looking for better deals on utilities.
– Reduce your credit limits or cancel credit cards you’re not using, if appropriate.
– Increase your income by starting a side hustle, asking for a raise, landing a higher-paying job, or even a second one (which we fully acknowledge is not possible for many families).

Other ways you can increase your chances of home loan approval:

– Improve your credit score. Lenders will delve into your credit history to see if you’re good at making repayments.
– Look at spending habits. Lavish overspending on non-essentials could raise a lender’s eyebrows.
– Make savings. Showing that you can put away money on a regular basis will look good on your application.

How much can you safely borrow?

Buying a home is an exciting prospect, but you don’t want to stretch yourself beyond your means.

This is especially important given the recent RBA interest rate hikes over the past year.

But we’re here to help you crunch the numbers and find a loan that will work for you, not against you.
If you’d like to find out your borrowing power and what loan options are available, give us a bell.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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RBA attempts to beat back inflation with another rate hike, up to 4.10%

Tue, 06 Jun 2023 05:35:00 GMT

Drumroll … The RBA has hiked the official cash rate for the 12th time since April 2022, increasing it to 4.10%. How much will this increase your monthly repayments? And how long does Philip Lowe plan to keep marching to this beat?

Another month, another 25 basis point cash rate rise. It’s now apparent the cash rate pause back in April was nothing but a false peak.

Reserve Bank of Australia (RBA) Governor Philip Lowe explained in a statement that while inflation in Australia had passed its peak, at 7% it was still too high and it would be some time yet before inflation was back in the 2-3% target range.

“This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe,” he said.

Governor Lowe added that some further tightening of monetary policy may be required to ensure that inflation returned to target in a reasonable timeframe, but that would depend upon how the economy and inflation evolved.

“If high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later, involving even higher interest rates and a larger rise in unemployment,” Governor Lowe explained.

“Recent data indicate that the upside risks to the inflation outlook have increased and the Board has responded to this.”

How much could this latest hike increase your mortgage repayments?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan very shortly.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $76 a month. That’s an extra $1,135 a month on your mortgage compared to 3 May 2022.

If you have a $750,000 loan, repayments will likely increase by about $114 a month, up $1,702 from 3 May 2022.

Meanwhile, a $1 million loan will increase by about $152 a month, up about $2,270 from 3 May 2022.

Concerned about how you’ll meet your repayments?

A lot of households around the country will now be feeling the pain of these 12 rate rises. So if your household is one of them, know that you’re not alone.

Similarly, there are likely a lot of people on fixed-rate home loans wondering just what options will be available to them once their fixed-rate period ends.

Whatever your situation, please know that there are options we can help you explore.

Some of those options might include refinancing (which could involve increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.

So if you’re worried about how you might meet your repayments going forward, give us a call today.

The earlier we sit down with you and help you make a plan, the better we can help you manage any further rate hikes.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post RBA attempts to beat back inflation with another rate hike, up to 4.10% appeared first on Osinski Finance .

Why more Aussies are turning their backs on the McMansion

Wed, 31 May 2023 23:07:00 GMT

Australians are increasingly “thinking small” when it comes to buying a home and cracking the property market. And with perks like affordability, more desirable locations, and lower maintenance, it’s little wonder why.

Many Australians are crossing the McMansion off their wish list in favour of smaller, smarter, low-maintenance homes.

A recent ING study surveyed over 1000 Australians about their home preferences.

Over a quarter (26%) said the cost of maintaining and running a larger home would see them gravitate to a smaller abode.

And 19% said they’d consider a smaller outdoor area for ease of maintenance.

Australia has some of the biggest homes in the world, according to the 2020 CommSec Home Size Report . But it seems that there’s a swing in the other direction.

A 2022 Australian Bureau of Statistics (ABS) report shows that Australian homes are being built on smaller blocks, with a size decrease of 13% over the past 10 years in capital cities.

So why the switch to smaller homes?

What are two things we all wish we had more of?

Money and free time, am I right?

With the cost of living rising (as well as the cash rate!), cracking the property market can feel like a slog. But revising your wish list to include a smaller (and smarter) home could make it easier.

On average, smaller homes, townhouses, and units tend to be more affordable. And this can be a great option for those wanting to get into the housing market in a more attractive location.

But a smaller dwelling delivers other perks, too.

ING’s study highlighted the growing preference for lower-maintenance homes to simplify lifestyles.

According to the ABS , Aussies spend around three hours a day on domestic activities.

But a smaller space can reduce cleaning time. And with a smaller outdoor area, you can reclaim your weekend and say goodbye to all that gruelling yard work.

Also, smaller homes can be more efficient when it comes to energy consumption.

A smaller home may help make you eligible for government schemes

If you’re a first-time home buyer, the Home Guarantee Scheme could give you the extra boost you need to get into the market.

Being eligible could shave, on average, five years off your home-buying process .

The First Home Guarantee and Regional First Home Guarantee offer loans with a low deposit of 5% with no lenders mortgage insurance (LMI).

And the Family Home Guarantee offers eligible single parents loans with a deposit of just 2% and no LMI.

However, the eligibility criteria include property price caps that are dependent on the state and geographical area you buy in.

Opting for a smaller, more affordable property could help you meet the eligibility criteria and speed up your home-buying journey.

But get in quick as places are limited, with a fresh round of intakes available from July 1.

Get the ball rolling

While you search for the perfect small abode, we can get to work on the home loan hunt.

If you’re a first home buyer, we know all the ins and outs of applying for government schemes, like the Home Guarantee Scheme.

Not all lenders participate, but we know who does and can give you some options to compare.

We’re also clued in on other government schemes you may be eligible for to help stack up the savings.

So if you’d like to find out more, get in touch today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Why more Aussies are turning their backs on the McMansion appeared first on Osinski Finance .

Is the property market starting to rebound?

Wed, 24 May 2023 23:03:00 GMT

Navigating the Australian property market over the past year has felt like standing on shifting sands. But is the market starting to regain stability? And if so, what can you do now to make sure you’re ready to buy?

Anyone with an eye on the property and finance market over the past few years has seen their fair share of thrills and spills. It’s been anything but uneventful.

But with the RBA’s rapid-fire rate hikes slated to peak in 2023, is there a property upswing afoot?

Westpac’s economists seem to think so – they’re predicting that the housing correction is winding down . The bank forecasts that Australian property prices will grow by 5% in 2024 after stabilising throughout 2023.

So this week we’ve looked into data from some of Australia’s leading property market and finance institutions.

The big four banks’ cash rate predictions

The RBA has raised the cash rate an eye-watering 11 times in 12 months, with the official rate reaching 3.85% in May 2023.

Understandably, this has made some would-be buyers gun-shy when it comes to pulling the trigger on applying for a home loan and buying a house.

But Australia’s four major banks have tipped that 2023/2024 could see the cash rate start to decline. Here’s what they’re each predicting:

Commonwealth Bank: peak of 3.85% reached, and will drop to 2.60% by August 2024.

Westpac: peak of 3.85% reached, and will drop to 2.10% by May 2025.

NAB: peak of 3.85% reached, and will drop again in 2024.

ANZ: peak of 4.10% by August 2023, then will drop to 3.85% by November 2024.

So, whichever financial institution you choose to listen to, it looks like we’ve either reached the cash rate peak, or are very close to it. And what goes up must (hopefully) come down.

Property prices are back on the move

In 2022 we saw national property prices take a small, but not insignificant, hit.

In response, sellers started waiting it out for a better price, creating a slim-pickings situation for house hunters.

However, Property Investment Professionals of Australia (PIPA) chair Nicola McDougall has stated that property prices look to be stabilising , partly due to the low volume of housing stock for sale.

Meanwhile, CoreLogic data shows that the three months to April marked the first quarterly boost to national property values since this time last year, with a 1% rise.

Why is this good news if you’re looking to buy? Well, hopefully you’ll soon have more suitable housing options to choose from as owners start to list again.

And with interest rates predicted to decline in 2023/2024, getting prepared now could put you in good stead to buy when the time is right.

Give us a call today

With all the above in mind, getting your pre-approved finance in place now could have you primed to pounce on your ideal home ahead of the next property market upswing.

And if you don’t think your deposit is quite there just yet, keep in mind that a new round of the federal government’s low deposit, no lenders mortgage schemes are set to become available from July 1, which can help first home buyers, regional buyers and single parents crack the market 5-years sooner, on average.

If you’d like to find out more, get in touch today and we can run you through your options and help arrange your finances.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Is the property market starting to rebound? appeared first on Osinski Finance .

Property valuation: what you need to know when buying a home

Wed, 17 May 2023 23:57:00 GMT

When buying property, it’s good to know the market value. After all, you want to know you’re paying a fair amount. But the property’s value is an important consideration for your lender too. And their valuation may be quite different.

Just how much is a property worth? Well, it depends on who’s asking.

When buying a property you’ll find there are different terms to estimate how much it’s worth, including market value, market appraisal and bank value.

And you’ll most likely find they can differ, which can be confusing.

Fortunately, we’ve got the low down to help you understand the difference. And how bank valuations affect your loan.

Market valuations vs market appraisals vs bank valuations

So, what is the difference between them all?

A market valuation, which is usually undertaken by a professional and qualified valuer, gives an estimate of the expected sale price of the property on the open real estate market.

It’s based on current market trends and is valuable to both sellers and buyers during sale price negotiations.

It can also be conducted for tax purposes for owners (ie. to calculate the taxable capital gain or capital loss).

A market appraisal (aka market estimate), on the other hand, is usually completed by a real estate agent and is often done to give homeowners an idea of how much their property could sell for in the current market.

But a bank valuation has an entirely different purpose.

When you’re buying a home or refinancing your loan, the bank will often need to conduct a bank valuation.

And it can feel like a real sting if the bank valuation comes in lower than expected.

But there’s a reason for this.

Banks are in the risk mitigation business. So their valuation is designed to provide an estimate of the property’s sale price as security against your loan should you default.

The valuations can be more conservative because lenders don’t take into consideration the property’s value in terms of an investment.

They’re looking at the property in terms of recouping loan costs with a quick sale.

And, rather than being provided by a real estate agent who may have a vested interest in price, bank valuations must be conducted by an accredited valuer.

Bank valuation process

When conducting a bank valuation, typically, the following factors are considered by the appraiser:

Current market conditions – just like with a market valuation, the current market climate and recent sales data for your area are examined.

Physical attributes – the location of the property, surrounding amenities, its layout, fixtures and features, size, structural condition, and council zoning information are considered.

Upon completion of the valuation, a report is provided to the lender to be used in assessing your loan application.

This brings us to our next point.

Pitfalls to watch out for

They say that being forewarned is forearmed. So here are some pitfalls to be aware of when it comes to bank valuations.

Say you apply for pre-approval, find a place and make an offer, but then the bank valuation is a lot less.

Or you pay a deposit on a $700,000 off-the-plan property, only to have your bank come back with a $650,000 bank valuation when it’s time to move in.

If the bank valuation is less than expected, it may lead to the bank loaning you less than you hoped for.

You may need to come up with extra funds to close the gap or pay lenders mortgage insurance (LMI), which can cost thousands of dollars.

Alternatively, your loan application could be rejected outright.

Therefore, it’s a good idea to save up a bit of a buffer to handle any valuation headaches that may crop up.

Working with an experienced broker, like us, can help you to prepare for any nasty surprises and make for a smoother home-buying journey.

Find out more

If you’re on the hunt for the perfect home, let us help you track down the right loan and lender for you.

We’ll be there every step of the way to help you navigate the loan process with ease, and help get the keys in your hand.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Property valuation: what you need to know when buying a home appeared first on Osinski Finance .

More home buyers set to benefit from low deposit, no LMI schemes

Wed, 10 May 2023 23:37:00 GMT

More Australians (and permanent residents!) will soon be eligible for a leg up into the property market under an expanded Home Guarantee Scheme. Today we’ll run you through all the upcoming changes to the low deposit, no lenders mortgage insurance scheme.

Officially unveiled as part of the 2023 federal budget, the expanded Home Guarantee Scheme will have broader eligibility criteria from 1 July 2023.

So if you’re a single parent or guardian, first home buyer, haven’t owned property for a decade, permanent resident, or looking to buy a home with your friend or sibling – be sure to read on to find out if you’re eligible.

What is the Home Guarantee Scheme?

Getting a deposit together can be a massive hurdle when buying a home.

And if your deposit is lower than 20%, you can get stung with lenders mortgage insurance (LMI), which can cost you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.

But through the NHFIC , the federal government has three low deposit, no LMI schemes.

Which means if you’re eligible, you won’t need to wait until you’ve reached the standard 20% deposit.

The First Home Guarantee and Regional First Home Buyer Guarantee support eligible buyers to purchase a home with a low 5% deposit and no LMI.

And the Family Home Guarantee assists eligible single parents to buy a home with a deposit of just 2% and no LMI.

Access to these schemes can, on average, bring forward the home-buying process by five years !

It’s worth noting there is an eligibility criteria, which covers property types, locations and prices.

But an experienced broker (that’s us!) will be across all the ins and outs to help you work out if you qualify.

What are the upcoming changes?

Good news if you are among the increasing number of Australians joining with friends, siblings, and other family members to buy a home.

Come 1 July 2023, you may be eligible to lodge a joint application under the First Home Guarantee and Regional First Home Buyer Guarantee; previously you could only apply as an individual or married/de facto couple.

Meanwhile, the Family Home Guarantee is set to expand to include single legal guardians, such as an aunt, uncle or grandparent. Previously it was only for eligible single natural or adoptive parents.

All three schemes will expand to eligible borrowers who are Australian permanent residents, in addition to citizens.

And all three guarantees will include eligible borrowers who haven’t owned a property in Australia in the last ten years.

What you need to know

The Home Guarantee Scheme can be a great way to fast-track getting into the property market.

But you’ll have to get in quick because places are strictly limited.

That includes 35,000 places per financial year across the First Home Guarantee, 10,000 places per financial year under the Regional First Home Buyer Guarantee, and 5,000 places per financial year under the Family Home Guarantee.

Also, not all lenders are involved with the scheme. But we can help you to identify and compare participating lenders.

So give us a call today to get the ball rolling.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post More home buyers set to benefit from low deposit, no LMI schemes appeared first on Osinski Finance .

Homeowners brace as RBA raises cash rate to 3.85%

Tue, 02 May 2023 05:39:00 GMT

The Reserve Bank of Australia (RBA) has increased the official cash rate for the 11th time in the past year, taking it to 3.85%. Have we finally reached the peak of this cycle? And how much will this latest rate hike increase your monthly repayments?

In what will undoubtedly be tough news for many households around the country, this latest rate hike comes despite many pundits predicting the RBA would keep the cash rate on hold for at least another month.

RBA Governor Philip Lowe said while inflation in Australia has passed its peak, at 7% it was still too high and it would take some time before it was back in the target range of 2-3%.

“Given the importance of returning inflation to target within a reasonable timeframe, the Board judged that a further increase in interest rates was warranted today,” he said.

However, in what may come as welcome news to mortgage holders, Governor Lowe softened his language around the possibility of further rate hikes.

How much could this latest hike increase your mortgage repayments?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan very shortly.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That’s an extra $1,060 a month on your mortgage compared to 3 May 2022.

If you have a $750,000 loan, repayments will likely increase by about $112 a month, up $1590 from 3 May 2022.

Meanwhile, a $1 million loan will increase by about $150 a month, up about $2,130 from 3 May 2022.

What happens if the cash rate increases further?

Economists at the big four banks are forecasting that the cash rate will now either remain at 3.85% or have one more hike to 4.10%.

Assuming you’re an owner-occupier with a 25-year loan, here’s how much more you could be paying each month if the cash rate reaches 4.10%:

– $500,000 loan: approximately $75 more = up $1135 from 3 May 2022, to a total of approximately $3,470 per month.

– $750,000 loan: approximately $112 more = up $1702 from 3 May 2022, to a total of $5,200 per month.

– $1 million loan: approximately $150 more = up $2280 from 3 May 2022, to a total of $6,950 per month.

Worried about your mortgage? Get in touch

There’s no denying that a lot of households around the country are feeling the pain of these rate rises.

There are also lots of people on fixed-rate home loans wondering just what options will be available to them once their fixed-rate period ends.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Homeowners brace as RBA raises cash rate to 3.85% appeared first on Osinski Finance .

Tips to help stay on top amidst the rate hike cycle

Wed, 26 Apr 2023 23:36:00 GMT

With every RBA rate rise announcement, mortgage holders brace themselves for impending repayment increases. Here’s how to stay on top of your mortgage and feel financially secure.

Let’s face it, the RBA’s rate rise cycle hasn’t been easy for mortgage holders, with average monthly repayments now hundreds of dollars (and in some cases, thousands of dollars) more expensive than they were a year ago.

Pair this with the rising cost of living and many Australians are eager to bolster their finances to weather the storm, especially as there are one or two more rate rises predicted to come.

But rest assured, there are things you can do to help manage your mortgage and stay on top of your finances.

1. Review your loan

Regularly reviewing your loan can help you assess whether it’s best suited to your current situation.

You may be able to access features that may benefit you such as an offset account. And even get a better interest rate.

Canstar research shows 63% of Australians haven’t attempted to negotiate their interest rate with their lender in the last year.

And only a quarter of those who did were knocked back. But you don’t have to run the risk of rejection yourself.

Get in touch with us and we can go in to bat for you.

And if we don’t think your lender is playing fair, we can help you look elsewhere. Which brings us to our next point…

2. What are competitor lenders offering?

Canstar research shows that 77% of mortgage holders may be paying more than if they switched loans.

And RBA data from November 2022 shows that on average, existing variable owner-occupier home loan rates were 5.29%, while new loans had an average rate of 4.79%.

This is known as the “loyalty tax” – where banks often only pass on better interest rates and features to new customers.

But we can help you out.

Let us do the legwork and find suitable refinancing options so you can save.

3. Avoid the mortgage trap

Before you refinance, it’s good to get a picture of your debt-to-income and loan-to-value ratios.

This can help you avoid being trapped in a mortgage without the ability to switch to a better interest rate.

Your debt-to-income ratio is your total debt divided by your gross income. Lenders use this to assess how you manage money and to calculate your borrowing power.

So if you’re seeking to refinance a $700,000 home loan (and have no other debt), and you have $160,000 in gross household income, your DTI is 4.375 – a ratio most lenders would be very comfortable with.

So make sure your other debts – such as car loans, and credit cards – are being managed, as well as your mortgage. It can help bolster your credit rating.

Your loan-to-value ratio is the comparison between your loan amount and the assessed value of your home.

This means that a drop in your property’s value can affect your ability to refinance.

And thus, if your equity drops below 20% some lenders may not accept your application to refinance. So refinancing at the right time (ie. before prices fall too low) can help you avoid being locked into your current mortgage.

If all this sounds complex or you just don’t have the time, we’re only a phone call away.

4. Track your spending

Like many of us, you’ve probably cut back on spending already.

But there’s a popular saying that rings true: “what gets measured gets managed.” Track your spending and see where additional changes can be made.

It can be a real eye-opener.

You may think “they can pry my daily cafe-bought triple shot latte from my cold dead hand” … but when the cost is tallied up, you may change your mind.

And that streaming subscription you never use and forgot about is still coming out of your bank account like clockwork.

5. Speak to us

Want a hand with all the above?

We can help you to refinance, consolidate your debts, manage application processes, and much more.

Get in touch today and we can help you through the refinancing process, even if there is possibly another rate rise or two to come.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Tips to help stay on top amidst the rate hike cycle appeared first on Osinski Finance .

Property listings and prices are bouncing back

Wed, 19 Apr 2023 23:40:00 GMT

As property prices start to climb, listings are following suit. So if you’re hunting for a home, what does this mean for you?

If you’ve been looking at the property market over the last six to 12 months, you probably already know that while property prices have dropped, it’s been a case of slim pickings due to the drastically low number of listings.

But prices look like they are starting to bounce back, with March heralding a 0.6% increase in national property prices , according to CoreLogic. And listings are following suit.

PropTrack data for March showed new listings on realestate.com had risen by 10.5% month-on-month , making it the busiest month for new listings since May 2022.

So why has the market changed? And what does it mean if you’re looking to buy?

Property prices and increased demand

When the RBA announced its rate rise pause in April, we all let out a collective sigh of relief.

And many financial and property analysts, including CoreLogic , estimated the pause may give rise to increased prices due to a boost in buyer confidence.

But there are other compounding factors that were influencing the pricing upswing before the rate rise pause.

Record low listings, a competitive and expensive rental market, and elevated migration placed increased demand on limited housing supply.

And prices started to climb despite consecutive rate rises.

Rising prices, combined with the Autumn selling season, have seen vendor confidence pick up and property listings increase.

But how does this affect you if you’re looking to buy?

Opportunity may be knocking

If you’ve been ready to buy but haven’t been able to find the right place due to low supply, now may be the time to purchase – before FOMO starts to kick into the market.

More listings mean you’ll have a greater chance to find a suitable abode, rather than sifting through the dregs.

But before you pounce on that perfect property, it helps to have your finance sorted.

Finding out your borrowing capacity and loan options are important steps when planning to buy.

And while the RBA’s pause bolstered our spirits, it’s wise to be mindful that there are a couple more cash rate rises expected.

Getting advice on the right type of loan, assessing your borrowing power, and organising your finances could make things smoother.

So if you’re keen to purchase in 2023, give us a call and we’ll get cracking on finding you a mortgage solution that will suit your individual needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Property listings and prices are bouncing back appeared first on Osinski Finance .

What is the fixed-rate cliff and how can refinancing help?

Wed, 12 Apr 2023 22:38:00 GMT

You’ve probably heard the term “fixed-rate cliff” bandied about in finance news feeds. But what is it? And if you’re about to head over it, how can you prepare for a soft landing?

A staggering 880,000 fixed-rate loans are set to end this year , and when they do, many Australian households will be facing significantly higher mortgage repayments.

That’s because the variable interest rates now on offer are much higher than the fixed rates locked in years ago.

So today we look at what this so-called “cliff” might mean for your budget and how you can reduce the impact by refinancing.

But first, why is the fixed rate cliff looming in 2023?

Before 2020, fixed-rate mortgages equated to about 20% of total Australian home loans.

But during the pandemic, the RBA dramatically slashed the cash rate to a record low of 0.10%, and many savvy Australians pounced on the opportunity to lock in a low interest rate in early to mid-2021 for two to three years.

This saw 2021 fixed-rate borrowing basically double to 40% of total Australian home loans.

However, as with all good things, the low rate times came to an end.

Since May 2022, the RBA has hiked the official cash rate back up to 3.60%.

Those on fixed-rate loans have had a reprieve, until now – with 880,000 mortgage holders set to start rolling off their fixed rate throughout 2023.

And CoreLogic warns “the pain will be felt most acutely from April” this year.

What effects can a fixed rate cliff have

According to CoreLogic data , a mortgage holder who took out an average-sized loan of $538,936 with a fixed rate of 1.98% could see their repayments increase by over $1000 per month when rolling over to a standard variable rate.

Those who locked in 2020/2021 interest rates that hovered around the 1.75 to 2.25% range will be transitioning to interest rates as high as 5 to 6%.

That’s an increase greater than the 3 percentage point minimum interest rate buffer that lenders use to assess the serviceability of home loan applications.

How to refinance (properly)

When a fixed-rate loan period ends, lenders often don’t roll existing clients over to the best rates they have on offer.

The most attractive interest rates are usually reserved for new customers as an incentive.

But by refinancing with another lender you can access lower introductory rates, which can potentially save you thousands of dollars in repayments over time.

Working with a broker like us can take the stress off your shoulders when navigating the end of a fixed rate period.

We’ll use our vast network of lenders to zone in on suitable loans and lenders that are right for you.

And importantly, we’re (happily) bound by a best interests duty .

Get in touch

Is your fixed-rate cliff looming?

Get in touch today and we’ll get to work on finding you great refinancing options to soften the landing.

And if the landing is still looking a little bumpy, we can help you explore some additional options, such as increasing the length of your loan and therefore decreasing monthly repayments, debt consolidation, or helping you identify ways to build up a bit of a cash buffer in the meantime.

Whatever your situation, the earlier we sit down with you and help you make a plan, the better we can help you manage the transition.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post What is the fixed-rate cliff and how can refinancing help? appeared first on Osinski Finance .

Mortgage holders granted a reprieve as RBA puts interest rates on hold

Tue, 04 Apr 2023 05:31:00 GMT

And … exhale. After 10 straight rate hikes the Reserve Bank of Australia (RBA) has today decided to put the official cash rate on hold. But for how long?

The decision to keep the official cash rate at 3.60% will be welcomed by homeowners around the country after monthly repayments increased by about $1000 per $500,000 loaned (for a 25-year loan) since 1 May 2022.

RBA Governor Philip said the RBA board took the decision to hold interest rates steady this month to provide additional time to assess the impact of the increase in interest rates to date and the economic outlook.

“The Board recognises that monetary policy operates with a lag and that the full effect of this substantial increase in interest rates is yet to be felt,” he said.

However, while the cash rate was not increased at today’s RBA meeting, Governor Lowe signalled there might be more rate hikes in the coming months.

“The decision to hold interest rates steady this month provides the Board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty,” he said.

“In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.”

How much have your repayments increased since 1 May 2022?

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

The wave of 10 successive rate rises means the repayments on your mortgage have increased by about $985 a month compared to 1 May 2022.

If you have a $750,000 loan, repayments will likely have increased $1,478 from 1 May 2022.

Meanwhile, a $1 million loan is up about $1,980 from 1 May 2022.

What happens if the cash rate increases further in future months?

Economists at the big four banks have forecast that the cash rate will peak at either 3.85% or 4.10% in the months to come (so, just one or two more cash rate hikes to go).

Assuming you’re an owner-occupier with a 25-year loan, here’s how much more you could be paying each month if the cash rate reaches 4.10%:

– $500,000 loan: approximately $75 extra per rate rise = up $1135 from 1 May 2022, to a total of approximately $3,470 per month.

– $750,000 loan: approximately $112 extra per rate rise = up $1702 from 1 May 2022, to a total of $5,200 per month.

– $1 million loan: approximately $150 extra per rate rise = up $2280 from 1 May 2022, to a total of $6,950 per month.

Worried about your mortgage? Get in touch

Despite today’s reprieve, there’s no denying that a lot of households around the country are feeling the pain after 10 successive rate rises.

There are also lots of people on fixed-rate home loans wondering what options will be available to them once their fixed-rate period ends.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Mortgage holders granted a reprieve as RBA puts interest rates on hold appeared first on Osinski Finance .

Money habits that may raise lenders’ eyebrows

Wed, 29 Mar 2023 22:17:00 GMT

We all know being on our monetary best behaviour can help to land a home loan. But did you know there are common spending habits you may have that are red flags to lenders?

Smart money management and cutting back on expenses can help your home loan application. That’s no secret.

But a bit of measured discretionary spending can add a little spice to life. We’re human after all. And lenders will see this as normal.

However, there are certain spending habits and types of transactions that can be a red flag to lenders. And these may hinder your chances of home loan approval.

Check out our list of potentially problematic spending habits below; avoiding them just might make all the difference when you apply for your next home loan.

PayPal transactions

There’s nothing inherently wrong with using PayPal. It’s often a convenient and safe way to make online purchases.

But many expenses that lenders may scrutinise, such as online gambling, and other unmentionable vices, use PayPal with vague descriptors.

This makes it easier to hide spending habits some may not want the world to know about.

And even if your PayPal spending is mundane, if the descriptions are vague, lenders may still raise an eyebrow.

Purchases through bank accounts on the other hand make it easier for lenders to see your spending habits when assessing your application.

Buy now, pay later

It can be tempting to use a buy now, pay later (BNPL) service to splurge on a new outfit and leave future you to stump up the cash.

However, even though BNPL services aren’t traditional credit products, they can still affect your credit score.

That’s because when you apply for a BNPL service, there’s a chance it may be recorded as an enquiry on your credit report – and these enquiries may impact your credit score .

Worse still, a few missed payments later and that purchase may not seem like such a hot idea – BNPL services can notify credit reporting agencies that you’ve defaulted on a payment, leaving you with a blemish on your credit report.

Last but not least, the Australian Prudential Regulation Authority (APRA) recently amended its framework to include BNPL debts in the reporting of debt-to-income (DTI) ratios.

And a high DTI can lessen your home loan borrowing capacity, or even lead to rejection.

Dipping into savings too often

Having regular savings locked away, untouched, and accruing interest … well, that can make lenders smile when assessing your mortgage application.

But as we all know, life happens. Unexpected expenses may crop up that require you to dip into your savings.

This isn’t the end of the world when applying for a mortgage, but pinching too much from your piggy bank might get lenders thinking that you’re unable to put money aside and budget.

This could lead lenders to believe that you will struggle to make regular repayments.

Store credit cards

Many stores will entice you with swanky perks in return for signing up for their credit card. But often, when you look past the interest-free period sparkle, the interest rates are rubbish.

One or two forgotten payments can really end up costing you.

Also, lenders may view having a multitude of store cards as “fishing for credit” – sourcing credit from different places may make it look like you’re scrambling for money.

And every time you apply for a store credit card, your credit report is pinged, which as mentioned previously, can harm your overall score.

Frequent large ATM withdrawals

Some people still prefer to use cash, which is fine. But keep in mind that in the eyes of lenders it may make your spending habits hard to track.

Lenders may question your withdrawals. If you have a fair explanation, and possibly some supporting documentation, then cash withdrawals likely won’t have a negative effect on your application.

However, keep in mind that withdrawing a few hundred dollars every Friday night at the local service station or bottleo ATM isn’t a great look.

Get your ducks in a row

Nobody likes the sting of rejection.

But fear not because we’re experts in helping people shape up their finances for a schmick mortgage application.

So if you’re thinking about buying but are worried about how some of your recent transactions or money habits might look to a lender, get in touch today and we can help you start to smooth things out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Money habits that may raise lenders’ eyebrows appeared first on Osinski Finance .

Time to jump in? First home buyer deposit saving times plunge

Wed, 22 Mar 2023 22:25:00 GMT

Home loan headlines have been, let’s face it, a bit of a downer of late. But the good news is that first-home buyers are now reaching their 20% deposit goal faster.

First home buyers have been delivered a bit of well-deserved good news with the findings of the 2023 Domain First Home Buyer Report .

The analysis shows that first-home buyers aged between 25 to 34 are hitting their house deposit saving goal more quickly compared to April 2022 – a month before the first of ten consecutive cash rate hikes.

State-by-state breakdown

Sydney experienced the biggest decline – a whopping 17-month drop in average deposit-saving time frames, with it now taking 6 years and 8 months to save a deposit compared to 8 years and 1 month in April 2022.

Brisbane (now an average of 4 years to save a deposit) and Canberra (now 6 years) came in second, both experiencing a 14-month drop.

Melbourne (now 5 years 7 months) and Darwin (3 years 6 months) came next, both with an 11-month decrease in saving periods.

Hobart (5 years 8 months), Perth (3 years 7 months) and Adelaide (4 years 9 months) all saw smaller drops of 5 months, 2 months and 1 month respectively.

Why is it quicker to save a deposit now?

Well, 2022 saw a steady decline in national house prices in response to increasing interest rates. In January 2023, CoreLogic reported a record national home value decline of 8.40%.

And as property prices fall, so too does the cost of your 20% deposit.

Also contributing to the shorter savings periods is ABS data showing that wages have grown in both public and private sectors, while the unemployment rate is hovering at a low 3.5%. Rate hikes meanwhile have seen savings accounts accrue more interest.

Overcoming potential challenges

Despite the promising new CoreLogic findings, saving a 20% deposit can still be a stretch for many.

The increased cost of living means just paying for essentials takes a big chunk of the paycheck, leaving less for savings.

And with home loan interest rates on the up, borrowing capacity has dropped and mortgage serviceability can be difficult.

Also, CoreLogic has reported that house prices have begun to stabilise.

So, as a first-home buyer, how can you speed up the buying process?

Get in on government incentives

Taking advantage of government schemes can speed up your home-buying journey by 4 to 4.5 years , on average.

For example, the First Home Guarantee could see you paying a deposit of just 5% while avoiding an eye-watering lenders’ mortgage insurance fee.

But you’ll have to be quick because spots are limited and can disappear quickly. The next allocation period in July is creeping up, so getting on board with a mortgage broker (like us!) ASAP is a good idea.

We’ve got the know-how to get your First Home Guarantee application on track.

And, we can see if you’re eligible to maximise your savings by combining other government incentives.

Find out more

If you’re ready to take the plunge and buy your first home we can help get a plan in place to make it happen.

We’ll calculate your borrowing power, assess your finance options, and assist in taking advantage of government incentives.

Call us today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Time to jump in? First home buyer deposit saving times plunge appeared first on Osinski Finance .

Got an eagle eye on house prices? Rate rises are only part of the story

Wed, 15 Mar 2023 22:20:00 GMT

Rate rises can affect the property market, as we’ve all seen of late. But there are other factors that appear to hold longer-term sway over national house prices.

In a bid to bust inflation, the Reserve Bank of Australia (RBA) has been on a rate rise run that’s seen the official cash rate go from a record-low of 0.10% to 3.60% in just 10 short months.

Along the way, we’ve seen property prices across Australia decline.

As rates rose, Australia saw the largest and swiftest property price drop on record, with a 9.1% fall from April 2022 through to February 2023.

But a recent study by Domain , which examined 30 years of data, suggests that population and migration growth have greater and more long-lasting effects on property prices.

The study shows that a 1% mortgage rate increase may result in Australian house prices falling by 1.34%, on average.

But in comparison, national house prices could jump by 8.18% with a population increase of only 1%.

So let’s examine the effects of mortgage rate rises and population growth so you can navigate the market.

Mortgage rate rise effects

When interest rates rise, your borrowing power can dip. And the rise in the cost of living can hit the hip pocket.

So, under these conditions, fewer people may be willing to buy property.

With less demand, vendors may need to lower prices in order to sell homes. And if you’re ready to buy you may be able to negotiate a great price.

But the RBA can’t keep raising the cash rate forever (surely!).

In fact, economists at each of the big 4 banks have forecast that the RBA will announce just one or two more rate rises by 2 May 2023, with a peak cash rate of 4.10% predicted.

Corelogic stated in their recent three-year post-pandemic market report that once we get a rate hike reprieve, property sale and price volatility may lessen.

Population and migration effects

While mortgage rate rises do affect property prices, other factors appear to have more long-term effects.

Doman’s findings outlined that property prices are reactive to rate rises within the same quarter, whereas movement in population and migration numbers is cumulative and the effects are longer lasting.

So as migration numbers continue to rebound following COVID-19 lockdowns (and lockouts), it’s likely we’ll see an increase in property demand, which could cause prices to rise.

For example, Domain says Melbourne has “made a quick population recovery” since the COVID-19 lockdowns and is slated to nab the title of Australia’s most populated city by 2031-2032 .

Melbourne had an 8.1% property price drop in 2022 , while Sydney experienced a heftier reduction of 12.1%.

Domain’s study suggests that Melbourne’s population boom, and the resulting increase in housing demand, are behind the more moderate price drop.

And so, while it’s worth considering mortgage rates when surveying the property market, other factors like population and migration – which feed directly into supply and demand – are certainly worth considering too.

If you’d like to dig into the modelling further, the Australian government’s Centre for Population website has a great interactive tool that you can use to check out migration forecasts for each state and territory.

Get in touch with us today

Keeping an eagle eye on property prices is a great idea if you’ve got home ownership in your sights.

And while you’re busy researching the market, we can get cracking on helping to find the right loan for you.

We can also help you get financially savvy with tips to boost your borrowing power. That way you’ll be ready to pounce when the time is right.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Got an eagle eye on house prices? Rate rises are only part of the story appeared first on Osinski Finance .

Homeowners feel the pinch as RBA lifts cash rate to 3.60%

Tue, 07 Mar 2023 04:17:00 GMT

The Reserve Bank of Australia (RBA) has increased the official cash rate for a tenth straight meeting, taking it to 3.60%. How much will this rate hike increase your monthly mortgage repayments, and how many more rate rises are expected to come?

The RBA’s latest move takes the cash rate to its highest level since May 2012 .

However, in somewhat hopeful news for mortgage holders, RBA Governor Philip Lowe has softened his language around the timing of future rate hikes.

While last month he said “further increases in interest rates will be needed over the months ahead”, no such statement was included in this month’s rate hike announcement .

In assessing when and how much further interest rates need to increase, Governor Lowe said the RBA board will be “paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market”.

“The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that,” he added.

How much could this increase your mortgage repayments?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan very shortly.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That’s an extra $985 a month on your mortgage compared to 1 May 2022.

If you have a $750,000 loan, repayments will likely increase by about $112 a month, up $1478 from 1 May 2022.

Meanwhile, a $1 million loan will increase by about $150 a month, up about $1,980 from 1 May 2022.

What happens if the cash rate increases further?

The big four banks are forecasting that the cash rate will peak at either 3.85% (CBA’s prediction) or 4.10% (NAB, Westpac and ANZ).

Assuming you’re an owner-occupier with a 25-year loan, here’s how much more you could be paying each month if the cash rate reaches 4.10%:

– $500,000 loan: approximately $75 extra per rate rise = up $1135 from 1 May 2022, to a total of $3,470 per month.

– $750,000 loan: approximately $112 extra per rate rise = up $1702 from 1 May 2022, to a total of $5,200 per month.

– $1 million loan: approximately $150 extra per rate rise = up $2280 from 1 May 2022, to a total of $6,950 per month.

Worried about your mortgage? Get in touch

There’s no denying that a lot of households around the country are feeling the pain of these rate rises.

There are also lots of people on fixed-rate home loans wondering just what options will be available to them once their fixed-rate period ends.

Some options we can help you explore include refinancing (which could include increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Homeowners feel the pinch as RBA lifts cash rate to 3.60% appeared first on Osinski Finance .

The latest twist in the tale of national property prices: explained

Wed, 01 Mar 2023 22:12:00 GMT

The property market has had more plot twists than a daytime soap opera in recent years. So getting the skinny on current trends is helpful when you’re planning to buy. Here’s the lowdown on the latest surprising bit of data.

Despite all the media doom and gloom predicting that the Australian housing market would tank in 2023, national property prices actually rose ever-so-slightly in February.

So what the heck is going on?

Property price trends

You may have heard it’s been a bit of a buyer’s market in recent times. Over the past 12 months, property prices were down 7.2% , the biggest annual drop since May 2019.

With rising interest rates, buyer demand slowed. This saw properties sitting on the market for longer.

And to entice sales, vendor discounting rose to -4.3% in January 2023 from -2.9% in November 2021.

However, recent data shows things may be starting to turn.

A PropTrack analysis shows that Australian property prices actually rose by 0.18% in February 2023.

And here’s why …

Impact of housing supply

If you’ve been house hunting recently you may have noticed it is slim pickings. In fact, as of December 2022, new listings were 20.4% lower year-on-year .

Lower listing volumes for most states has created increased buyer competition, which has helped drive prices up slightly.

Now, this may just be a blip – listing volumes can experience seasonal fluctuations and if supply increases again prices may drop back down.

But it just goes to show how hard the market is to predict. And those who are holding out on buying until the market drops further might want to start preparing their finances sooner rather than later.

Impact of interest rates

Why were national property prices expected to drop in 2023? And why might they still fall?

Well, successive rate rises have seen the RBA’s official cash rate hit 3.35%, up from 0.10% in May 2022.

And in a recent statement, RBA governor, Philip Lowe announced the Board expects more rate hikes for 2023 .

As interest rates rise, so too do mortgage repayments, which means buyers are unable to borrow as much – leading to downward pressure on property prices.

But as we’ve seen in February, other factors – such as the number of homes available to buy – can counteract that downward pressure.

Have a chat with us

Keeping your finger on the pulse of the property market is tough enough – let alone finding the right home loan, organising your finances and navigating the application process … buying a home can feel like a full-time job in itself!

But we’re here to help. We can use our network of lenders to find the right home loan for you, so you can focus on nabbing your new home.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post The latest twist in the tale of national property prices: explained appeared first on Osinski Finance .

Take the heat off rate hike fears with these 4 tips for buyers

Wed, 22 Feb 2023 22:25:00 GMT

Have recent rate hikes made you nervous about taking the plunge into the property market? You’re not alone; it’s a buyer’s market for a reason. Here’s how to stay cool and calm when buying your next property.

As you’ve probably seen in the news, the Reserve Bank of Australia (RBA) has increased the official cash rate from 0.10% to 3.35% in just nine months.

It’s now the highest it’s been since September 2012 – so it’s only natural to feel a bit hesitant about buying property right now.

But rest assured with the right buying strategies in place, you can navigate rate hikes and mitigate potential financial stress.

1. Know your borrowing capacity

Get to know your borrowing capacity, and consider leaving yourself a bit of a buffer by purchasing under the maximum amount.

That’s because over the many years it takes to pay off a home loan, your financial or personal circumstances may change, and interest rates could rise further.

Buying a bit under your capacity allows you to create a financial buffer to adjust and adapt to any unforeseen changes.

We can help you calculate your borrowing capacity before you start house hunting – so you don’t fall in love with a place that could create more financial stress than it’s worth.

2. Take advantage of it being a buyer’s market

With rising interest rates and inflation, there’s been a softening of the market and this may reward those who are ready to buy now.

According to CoreLogic , “it’s a buyer’s market”!

In the three months to December, the median time a property spent on the market increased to 31 days across the capital cities and 41 days in regional Australia.

That’s a big increase from a median of 20 days in November 2021.

“Buyers are no longer facing a sense of urgency to make a purchase decision and they can negotiate on price more aggressively,” explains CoreLogic’s executive research director Tim Lawless.

“If they don’t secure a price they think reflects good value, they can simply move on to the next property amid persistently declining prices.”

And by targeting properties that have been on the market for a while, you could potentially have more bargaining power (just be sure to do your due diligence!).

3. Take advantage of government schemes

There are various government schemes that may help reduce the size of your new mortgage and other associated costs.

For instance, the federal government offers low deposit, no lenders mortgage insurance (LMI) schemes through the NHFIC.

The schemes can save eligible first home buyers thousands of dollars and speed up home ownership by 4 to 4.5 years on average .

Meanwhile, all state and territory governments (except the ACT) offer first-home buyer grants, while most (except South Australia) offer concessions to take the stamp duty sting out of house buying.

On average, stamp duty can tack an extra 3-4% onto your property value, depending on the state and property price, so keeping this hefty sum in your pocket is a good deal.

We have all the low-down on government schemes and can help you navigate eligibility criteria. We can also explore the possibility of bundling the schemes together for more savings.

4. Let us help guide you

That super low-interest rate loan you saw on a Facebook ad might have looked like an absolute steal, but did you notice the eye-watering fees in the fine print?

And did you know that shopping around for a home loan by sending in multiple loan applications can negatively impact your credit rating?

Speaking to a mortgage professional like us can help you avoid these common pitfalls, and others.

We can help you find the right lender, home loan rate and terms that’ll suit your individual needs.

Better still, we can help you organise your finances for your application and navigate all the red tape.

So if you’ve been a bit nervy about purchasing in this current financial climate, give us a call today. We love nothing more than helping people navigate the complexities of the finance and property markets.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Take the heat off rate hike fears with these 4 tips for buyers appeared first on Osinski Finance .

How to prepare for a fixed-rate mortgage cliff

Wed, 15 Feb 2023 23:33:00 GMT

Do you have a fixed-rate mortgage contract that’s coming to an end soon? It can be a stressful time, particularly with rate rise news dominating the headlines. So today we’ve got some tips for a smooth transition.

Like many Australians, you may have taken advantage of the interest rate good times by locking in a cracking rate.

But as they say, all good things must come to an end.

Indeed, the Reserve Bank of Australia (RBA) has estimated that 800,000 fixed-rate loans will end this year .

If that includes your loan, below are some tips to help you navigate the transition to higher repayments smoothly.

Crunch the numbers

Variable interest rates have been rising in recent months. And you can expect your mortgage repayments to follow suit once your fixed-rate loan contract ends.

Do you know how much extra you may have to pay each month? And where will you find the extra cash?

Giving your budget a tidy-up now may put you in a better position to decide what loan product will suit you going forward to help you meet your repayments.

Consider cutting back on non-essentials (streaming services, takeaway coffees, alcohol, restaurants) and look for cheaper offers on your big-ticket bills like insurance and utilities.

Doing so now can also help you save up a buffer that’ll ease your transition to future higher loan repayments.

Negotiate your rate

One of the worst things you can do when rolling off a fixed-rate loan is to simply accept the variable rate your lender automatically provides.

Lenders are more likely to offer attractive rates to new customers, not their existing ones. It’s often referred to as the “loyalty tax”.

Before your fixed-rate contract ends, we can talk to your lender and let them know you’re exploring your options.

In order to keep you on board they may very well make an offer you find acceptable.

Do you want to refix?

Continued rate rises are expected in 2023 and, depending on your situation, you may wish to refix your loan.

You could also consider a split loan – where part of your loan has a variable rate, and the other part is fixed.

That said, not all lenders allow you to refix all or part of your loan.

If you want a fixed or split loan and your current lender won’t provide it, then you may want to explore your options elsewhere by refinancing.

This brings us to our next point.

Time to refinance?

If your existing lender doesn’t come up with the goods then refinancing is an option.

Refinancing may get you access to rates and features that banks use to woo new customers. And it can potentially save you thousands.

According to 2022 PEXA data , refinancers saved on average $1,524 per year. The ACCC reported in 2020 that mortgagors with 3 to 5-year-old loans paid an average 58 basis points more in interest than new lenders.

If you’re considering refinancing, you may want to act sooner rather than later. With house prices falling , it’s important to make sure you have enough equity in your home to refinance.

Talk to us

Last but not least, come and chat with us well before your fixed rate ends – not after.

We can help you crunch the numbers, negotiate a new rate, and help with refixing and/or refinancing.

Acting early means we’ll have plenty of time to explore plenty of different options for you and help you find a solution that will allow for a smooth transition.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post How to prepare for a fixed-rate mortgage cliff appeared first on Osinski Finance .

RBA hikes the cash rate for the ninth time in a row, to 3.35%

Tue, 07 Feb 2023 04:51:00 GMT

The Reserve Bank of Australia (RBA) has kicked off 2023 by increasing the cash rate a further 25 basis points to 3.35%. How much will this rate hike increase your mortgage repayments in 2023, and how high is the cash rate expected to go?

This is the ninth rate hike by the RBA in as many meetings (since May 2022), and it takes the cash rate to its highest level since September 2012 .

RBA Governor Philip Lowe said in a statement that the RBA board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

“In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market,” said Governor Lowe.

How much are your mortgage repayments expected to increase in 2023?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan soon.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That’s an extra $910 a month on your mortgage compared to May 1.

If you have a $750,000 loan, repayments will likely increase by about $115 a month, up $1365 from May 1.

Meanwhile, a $1 million loan will increase by about $150 a month, up about $1,830 from May 1.

How high are interest rates expected to go in 2023?

Here’s what economists from the big four banks are currently predicting for the rest of 2023, and what also could be possible:

CommBank – no more increases for 2023 (prediction made prior to statement by Governor Lowe).
NAB – rates rising to 3.60% by May 2023. However, there’s a risk of a peak towards 4%.
Westpac – rising to 3.85% by May 2023. First rate cut should arrive by March 2024.
ANZ – rising to 3.85% by May 2023, but possibly 4.10% if inflation keeps rising.

Worried about your mortgage? Get in touch

Let’s not beat around the bush here: there are a lot of households around the country really feeling the pinch of all these rate rises.

Similarly, there are a lot of people on fixed-rate home loans wondering just what options will be available to them once their fixed-rate period ends and they have to transition over to a variable rate home loan.

So if you’re concerned about how you might meet your repayments in 2023, give us a call today. The earlier we sit down with you and help you make a plan, the better we can help you over the period ahead.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post RBA hikes the cash rate for the ninth time in a row, to 3.35% appeared first on Osinski Finance .

Considering refinancing your mortgage? Here are some questions to ask

Wed, 01 Feb 2023 23:40:00 GMT

Home loan not up to scratch? Looking for a better rate? Or do you want to unlock equity? Then refinancing could be for you. But there are some important questions to ask first.

If you’re considering refinancing your mortgage, you’re not alone.

With the rising cost of living and interest rates hitting the hip pockets of many Australians, it’s a popular move.

According to ABS data , November 2022 saw refinancing values reach a record high of $13.4 billion.

Refinancing may offer you opportunities to unlock equity, land a better rate and avoid what’s known as “loyalty tax”. Sticking to the same loan could see you missing out on favourable rates and features lenders like to use to woo new customers.

Or maybe you’re about to come off a fixed loan period and are bracing for a potential rate hike.

Whatever your reasons for refinancing, we’ve got some questions to help you through the process.

What’s your financial picture?

Banks want to take a squiz at your financial profile before lending you a chunk of change. So check that your credit score is healthy to avoid disappointment.

Look at your budget to see how much you can afford to pay toward your mortgage.

Include interest, repayments, and service fees. And factor in possible additional refinancing costs such as application and valuation fees.

You can also consider how the length of your loan impacts your budget. A longer-term loan usually comes with lower repayments but more interest over the lifetime of your loan.

A shorter-term loan on the other hand would usually mean you make higher repayments now, but you could save on total interest payments.

Whichever way you’re leaning, we can help you crunch the numbers.

Do you have equity?

Having 20% equity in your home is typically a lender requirement when refinancing.

But what is equity?

It’s the difference between the market value of your property and the balance of your mortgage. And with the recent decline in property values , it’s an important thing to check.

The 20% equity typically acts as a deposit. Not having 20% may mean you have to pay lenders’ mortgage insurance, which may make refinancing not worth your while.

And negative equity – when your mortgage balance exceeds your property’s value – would most likely put the brakes on refinancing plans.

But if you have additional equity you may be able to unlock it when refinancing.

Let’s look at an example – say your house is now worth $1 million. But you bought it for $800,000 a few years back with a $600,000 loan that you’ve paid down to $500,000.

Banks typically allow a loan for 80% of a property’s market value (depending on your financial position and other factors). So if you refinanced your $500,000 loan to an $800,000 loan, that could unlock $300,000 for things like reno projects or investments.

What are you looking for?

Now it’s time to think about what you want from a loan.

A better interest rate is usually top of the list. But what other features could benefit you?

An offset account may be something you want to reduce interest. Or the ability to make additional repayments without incurring penalties.

Depending on what you’re after, you may not need to move to another lender. We can always talk to your current lender first to see if they will come to the party.

If not, we can then explore your options further afield.

Get in touch

Want to refinance to unlock a better interest rate, features and benefits, or equity in your home? Give us a call.

We can help assess your situation to see what’s possible. And locate loans and lenders that are a great fit for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Considering refinancing your mortgage? Here are some questions to ask appeared first on Osinski Finance .

Can a job switch affect your mortgage application?

Wed, 25 Jan 2023 23:47:00 GMT

Changing jobs may offer more perks – higher income, greater fulfilment, and the opportunity for growth are often things people look for in a new gig. But could it also impact your mortgage application?

January and February each year is typically prime time for people considering switching jobs – the Christmas holiday period is in the rearview mirror and a new year of possibilities lies ahead.

In fact new LinkedIn research shows 59% of workers are thinking about leaving their job in 2023, with more than half saying they’re confident of finding something better.

Coincidentally, 2023 could also be a good time to start considering your next property purchase, with house prices reaching a record decline of -8.40% in January from the May 2022 peak.

So could a job change impact your mortgage application? The short answer is it could.

But how much of an impact it has depends on a few factors.

Can you still land a mortgage?

Employment histories with frequent job changes over short timeframes can raise lenders’ eyebrows.

But even with a rock-solid employment profile, lenders may view a fresh job change as an added risk.

Lenders love to see stability. Staying in a job and building up your employment and financial profile will improve your mortgage approval chances.

A new job is less stable than one you’ve been in for a long time. There could be probation periods for both you and your employer to see if the role fits.

But you still may be able to land a mortgage with a new job.

Some job changes are low risk, with possibly minor effects on your mortgage application.

And some are high-risk and may result in delays and more hoops to jump through.

Low-impact changes

A change lenders consider less risky is switching to a permanent, salaried role in your current industry.

This is because you have a proven record of holding employment in this field and have the promise of a steady paycheck streaming into your bank account.

Typically, lenders want to see at least two to three of your most recent payslips. Some may require you to have your new job for at least three months.

So as long as you have a good financial profile, meet the requirements, and don’t have an unstable employment history, you may experience minimal impact.

But ultimately this depends on the lender and the loan.

High-impact changes

Considering a complete career overhaul, starting a business, or switching to casual, contract, or freelance work?

These are exciting changes that may result in more fulfilment, flexibility and money, if the stars align.

But while opportunity is on the cards, so too is risk – as far as lenders are concerned.

This is because sometimes to enter a new industry you have to accept lower-paying roles. Or because it can take some time to thrive in a new industry or business.

Similarly, casual work (and similar) often has higher pay rates. But part of this is to offset the lack of benefits you may receive, such as job security, severance pay and sick leave.

Suffice to say, all these types of job changes may make the mortgage application process more difficult.

However, there could be lenders who will consider your application if your financial profile is otherwise hunky dory and your previous employment history is stable.

Lenders may want to see more than the typical two to three payslips. Some may also require you to be employed in your new role for at least three to six months.

And self-employed applicants typically need to show at least a year’s worth of business income records.

These added requirements may result in a need to delay applying for a mortgage for a little while.

Find out more

Switching up your employment and landing a mortgage can be tricky. But having a helping hand can make the process easier.

We can point you in the direction of lenders more likely to consider your situation and help put together an application that presents your situation in the best possible light.

So if both a career change and a new property are on the cards for you in 2023, give us a call today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Can a job switch affect your mortgage application? appeared first on Osinski Finance .

Planning a reno in 2023? Here are 4 tips for smooth sailing

Wed, 18 Jan 2023 22:44:00 GMT

Having a spruced-up home feels great. And it can also boost your home’s value. But, as exciting as the prospect of rolling up your sleeves and getting on with a reno can be, there are certainly pitfalls to avoid.

New year, new you, new reno?

Renovating is exciting. Having aesthetics and function on point can make your home feel new again. And possibly add to its value should you want to sell or refinance.

But we’ve all heard reno horror stories: shonky tradies, budget blowouts and permit nightmares, not to mention the recent supply chain disruptions.

So we’ve compiled some tips to help you avoid these perils (and associated headaches!).

1. Prepare and plan

As Benjamin Franklin said, “if you fail to plan you’re planning to fail”. Bit harsh, but it rings true. Especially for a reno.

It’s a good idea to keep organised with a to-do list and a timeline.

You’ll need to check for council restrictions and permit requirements. Ignoring this could mean hefty fines. Or having to tear down your hard work (it does happen!).

Contracts should be set in place with tradies, the correct materials purchased, and a budget set … you’ll have a lot on your plate.

2. Research tradies

It’s a no-brainer that a reputable and skilled tradie will most likely provide better outcomes. But they usually come with a higher price tag.

The temptation to hire that cheap as chips mate of a mate is real.

But it’s important to hire licenced tradies. Most state fair trading websites offer a free online service for you to check.

Not doing so runs the risk of fines, shoddy work and costly re-dos. And the work of an unlicenced tradie most likely won’t be covered by insurance.

Also, be sure to check out any reviews and examples of their work.

3. Budget and a buffer

Having a budget is an important step. You need to be realistic about how much your project is going to cost and whether you can afford it.

It’s also wise to have a contingency.

Unexpected costs can really add up – just ask anyone who has completed a reno. Being prepared with a buffer can give you peace of mind to forge ahead in the face of surprises.

Also, having a broker like us on your side can help make funding your reno more straightforward.

We’ll help you explore your financing options, which might include unlocking the equity in your home to fund your reno or any added costs.

Not only can we help you find a competitive rate. We can also track down flexible loans, such as a line of credit, to help cover any unforeseen costs that crop up.

4. Be flexible

To get a reno done, it’s best to be flexible.

It’s not unheard of to uncover issues during a reno – such as structural problems, water damage, asbestos and faulty wiring – which require you to deviate from your original plans and budget.

The building industry is also facing supply chain disruption due to recent world events, including the COVID-19 pandemic and the war in Ukraine.

As a result, wait times and costs are blowing out for some materials and so a specific item you had your heart set on may need to be replaced with an alternative.

But by being flexible – including having a flexible line of credit – you can adapt and move forward with your reno.

Get in touch

We know a thing or two about financing a reno.

Our team can find flexible loan options, lines of credit and competitive rates to suit you. And if you’ve got equity in your home, we can help you unlock it.

So if you’d like to find out more, get in touch today. We’re ready to help make your 2023 reno dreams a reality.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Planning a reno in 2023? Here are 4 tips for smooth sailing appeared first on Osinski Finance .

Get a financial head start on the school year

Wed, 11 Jan 2023 22:58:00 GMT

Finding the time to delve into your finances can be a struggle. But the school holidays can offer the perfect time, especially for teachers. Get cracking on your financial to-do list these holidays by looking into refinancing your mortgage.

Planning on giving your finances a boost by refinancing your mortgage?

Well, you’re not alone. Following a string of rate rises last year, borrowers are refinancing in record numbers, according to PEXA research .

And ABS finance and wealth spokesperson, Katherine Keenan, says recent data shows owner-occupier refinancing with different lenders remained at record levels in 2022 , above $12 billion.

For many, mortgage repayments take the biggest chunk of the household budget which has become increasingly stretched by the rising cost of living.

So, the school holidays could provide some spare time to give your mortgage a thorough look over.

We’ll fill you in on why it may be a good idea to refinance your mortgage, what to look out for, and how you can get a helping hand.

Why refinance?

If it’s been a while since you’ve revisited your mortgage, you could be paying a higher interest rate than you need to. This is commonly known as the loyalty tax.

Lenders like to offer all the bells, whistles, and better rates to new customers in a bid to get their business.

Since they’ve already won you over, you often don’t get invited to the party.

But by refinancing, you could have lenders offering sweet new customer deals to woo you.

And if your fixed-rate mortgage good times are about to stop rolling, you too could get in on the new customer woo-fest and shop around for a better interest rate.

With the right offer, it can really pay off – refinancers saved on average $1,524 per year, according to 2022 PEXA data .

Over three years, that adds up to an extra $4,572 in your pocket for renovations, savings, extra repayments, or whatever you like.

And you don’t always need to move to another lender to see savings. You could refinance or negotiate with your existing lender, depending on their policy.

They may be open to offering you a deal to keep you on as a customer.

Ditch the hassle

If you’d like to find out more about refinancing, get in touch today.

We know all the ins and outs of refinancing and can shop around to find the most suitable loans for you.

So let us do the legwork on your refinancing goals these holidays so you can maximise your R&R.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Get a financial head start on the school year appeared first on Osinski Finance .

What you should know about buying a tenanted investment property

Wed, 04 Jan 2023 23:38:00 GMT

Buying a rental property is a popular way to invest. But where do you stand if the property you’re eyeing off already has a tenant? We’ll fill you in on what you need to know.

So you’re primed to expand your financial horizons and want to buy an investment property?

2023 may provide promise, with double-digit percentage gains for rental returns predicted in 11 out of the 14 major Australian residential markets.

But what happens if the property you want to buy already has tenants?

Depending on your plans, this could be a major boon. With tenants in place, the rental income can roll in from day dot!

But if you want to make changes to the property or the tenancy agreement … things get more complex.

So without further ado, here are the ins and outs of buying a tenanted investment property.

Know your tenants

When you’re buying an occupied property, it’s wise to learn about the tenants.

If the rental history shows you’ve got stellar tenants, that’s super!

You can have rent coming in straight off the bat – all without the need to advertise or wade through applications.

But if the rental history is a grim read, you can’t just switch tenants on a whim.

As the landlord, you’re obligated to honour the existing lease. There is state and territory government legislation you’ll need to adhere to as an owner, with certain processes and procedures to follow if you want to go down the road of ending a tenancy.

What’s the property’s condition?

Be thorough in investigating the condition of the property and ask if there are outstanding maintenance requests. This can help you avoid unexpected costs.

As the owner, you’re responsible for ponying up for most repairs. You need to ensure the property is maintained in a timely fashion as per the tenancy agreement.

So if there’s a laundry list of things to be fixed, you‘ll want to budget for it.

What if I want to make changes?

You’re obligated to honour the term of the existing lease. That means if you want to make changes to the tenancy agreement (like increasing the rent amount), you’ll need to wait.

Say you want to make non-routine renos to your property during the lease period – that’s possible, but you’ll have to negotiate with your tenants.

Extensive renos could affect their enjoyment of the property, which may mean they reject your request to carry out the works and you have to wait until their lease expires.

Ultimately, the only way you can make changes while the lease is in place is through mutual agreement with your tenants.

Property management

A good property manager will fill you in on your obligations and maintain the smooth running of the tenancy.

If you like the way things have been handled, you can choose to stick with the existing manager.

But if you want to change, you can. You’ll most likely have to provide a period of notice to the property manager. The duration depends on which state or territory your property is located in.

Alternatively, you can manage the tenancy yourself. Just be sure you’re across all the legislation.

Property management can be a demanding job, so make sure you know what you’re getting yourself into before taking it on!

Get in touch

Ready to jump into property investment? Get in touch today!

We can help you navigate the process by finding suitable loans, unlocking existing equity and working out your borrowing power.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post What you should know about buying a tenanted investment property appeared first on Osinski Finance .

4 New Year’s resolutions for financial fitness

Wed, 28 Dec 2022 22:57:00 GMT

As the sun rises on January 1, many Australians will be getting started on their new year’s pacts. The gym will be full of determined resolution keepers; the pavement pounded by brand-new sneakers. But what about shaping up your finances?

There’s no denying 2022 was a tough year for many mortgage holders – with eight rate rises since the start of May – and unfortunately 2023 is tipped to bring more rate increases.

But by kicking off the year with a few tweaks to your budget and habits you could be in a much better position to ride out future hikes.

Here are 4 simple new year’s resolutions that can help keep your finances fighting fit.

1. Time to ditch unnecessary expenses?

The 2022 rate rises had a lot of us trimming back our budgets. But expenses can creep back in. Before you know it, those “free trials” you forgot to cancel become paid monthly subscriptions.

It’s good to get into the habit of conducting regular expense audits – cut down on streaming services, take-away meals and impulse purchases to make savings.

That said, you don’t have to become an extreme penny-pincher. Little tweaks here and there can add up.

For example, a daily $4 take-away coffee habit costs you $1460 per year! But switching to a DIY French press brew can cost just $260-$400.

2. Have you got an emergency buffer fund?

The last few years have taught us to expect the unexpected. Having money tucked away for emergencies, or more rate rises, can give you added peace of mind.

You can use unlocked savings from your expense audit to start building up an emergency buffer.

And consider adding even more to this fund by selling any unused or unwanted items on ebay or Gumtree.

That way, if rates go up further, you lose your job, or have unforeseen medical expenses, you’ll have the funds on hand.

And you can get rid of some clutter in the process. It’s a win-win!

3. Do you need to pay down a debt?

Christmas is a time many of us cut a little loose on our spending (and fair enough!). But it’s also important to make sure you pay off any debts quickly.

Now may be a good time to either start paying back any money owed on credit cards, get ahead on your mortgage (if you’re able to), or vanquish any other debts you might have.

Also, consider avoiding credit card or buy now pay later purchases if possible. If you forget to pay these on time, you could incur interest and/or late fees.

You may also find that quickly reducing debt tastes sweeter than a take-away mochaccino. And your credit score might thank you for it too, which can make purchasing your first home, new property, or refinancing that little bit easier.

4. When did you last review your home loan?

Last but not least, if you’ve had your home loan for a while, you could be paying something called “the loyalty tax”.

This is where lenders don’t pass on new borrower rates to existing customers.

An RBA study found that compared to new loans, borrowers are charged an average of 40 basis points higher interest for loans written four years ago.

Arranging regular home loan health checks can potentially uncover opportunities for savings.

Not only could you secure a lower interest rate, but you could refinance to a mortgage with other features that may be a better fit for your circumstances – such as an offset account, fixed period, or a linked debit card (to name a few).

To get started on your home loan health check and prepare for whatever 2023 throws at you, get in touch.

We’ll look at your financial footing, your mortgage, and the market to scope out suitable loan products and potential savings.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post 4 New Year’s resolutions for financial fitness appeared first on Osinski Finance .

Seasons greetings! Here’s to a happy and prosperous 2023

Wed, 21 Dec 2022 23:14:00 GMT

End-of-year festivities have snuck up on us! Wishing you and yours a swell Noel and a wonderful new year.

It’s time to dust off that kitsch Christmas t-shirt, deck the halls, and give Bing Crosby a spin.

We hope you have the happiest of holidays and a cracking 2023.

As we all bid adieu to 2022, it’s a great time to reflect on the year past. And to dream up plans for the year ahead.

This year had a few challenges for us all (hello rate rises). So we hope you get to enjoy some well-earned rest, and all the merriment the season has to offer.

We are truly grateful to you, our fabulous clients, for your ongoing support and loyalty. May 2023 bring you opportunities to flourish and thrive.

If you’d like to get the ball rolling on those 2023 financial goals, get in touch. We’d love to help you make them happen!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Seasons greetings! Here’s to a happy and prosperous 2023 appeared first on Osinski Finance .

First home buyer numbers have halved: is it time to swoop in?

Wed, 14 Dec 2022 23:46:00 GMT

Repeated cash rate hikes have put many first home buyer plans on hold. So could you swoop in and reap the benefits with less competition in the market?

In case you missed it, from May to December the RBA lifted the cash rate from 0.10% to 3.10%.

This has no doubt hit many mortgage holders hard, but it’s also pumped the brakes on the number of first home buyers looking to enter the property market.

In fact, current Australian Bureau of Statistics data shows that the number of first-home buyers fell 3.2% to 8,576 in October alone.

That’s almost half the 16,187 first home buyers who entered the market during the January 2021 peak.

So, if you’re looking to buy, how can this benefit you?

Let’s take a look.

Less competition and more bargaining power

From mid-2020 to the end of 2021 we saw a house buying frenzy. And house hunters who were unable to compete had to make do with the leftovers.

But fewer buyers on the market means there’s less of a chance you’ll have to duke it out for your chosen property.

There could also be more favourable homes for you to choose from, without the overcrowded open houses.

And with fewer buyers making offers, sellers could have concerns about offloading their property.

November 2022 CoreLogic data shows the median days a property sits on the market is 35, compared to just 20 days in 2021.

So, if you’ve got your financial ducks in a row and are prepared to negotiate … flex that bargaining power and try for a great price.

Softening property prices

High demand in recent years saw property reach eye-watering prices. But over the past three months there’s been a decline around most parts of the country (barring regional South Australia and regional Western Australia).

In fact, national data has shown the biggest annual decline in home values since 2019 , with a 3.2% drop over the past year.

In some instances, it could be cheaper to buy than rent. National median weekly rental prices rose by 4.3% in September this year – a record-breaking price hike.

And a recent analysis found that for 518 Australian suburbs, home loan payments were more affordable than renting.

Escaping the rent crunch and buying your first home in an opportune area could be a smooth move if your finances are in decent shape.

And you might want to get the ball rolling sooner rather than later.

That’s because prices could go up again as early as next year if the RBA pauses rate rises and inflation drops, according to SQM Research’s Housing Boom and Bust Report for 2023 .

Government schemes for savings

Taking advantage of government incentives puts the keys in first home buyers’ hands 4 to 4.5 years quicker , on average.

Giving lenders mortgage insurance the big swerve, paired with a low deposit of 5%, is an enticing deal.

And if you’re eligible, that’s what the government’s First Home Guarantee can offer.

Spots are limited though and have historically been snapped up quickly.

But with fewer first home buyers entering the market, you may have more of a chance of nabbing a spot in the scheme.

Find out more

So, if you’re ready to make the big leap toward home ownership, give us a call.

We’ve got the know-how to help you work out your borrowing capacity and your mortgage options.

We’ll take the confusion out of financing your new home, so you can get on with swooping in on the house of your dreams.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post First home buyer numbers have halved: is it time to swoop in? appeared first on Osinski Finance .

Are we there yet? RBA hikes cash rate for eighth straight month to 3.10%

Tue, 06 Dec 2022 05:36:00 GMT

The Reserve Bank of Australia (RBA) has driven the cash rate up by another 25 basis points to 3.10%. Find out how much this final cash rate hike of the year has increased your mortgage repayments in 2022, and what you can expect in 2023.

The good news? This is it. You can head into the summer holidays knowing this is the last rate rise until at least February when the RBA board will meet again (thankfully they take January off!).

The cash rate now sits at 3.10% following eight months of consecutive rate hikes.

RBA Governor Philip Lowe said in a statement the RBA board expects to increase interest rates further over the period ahead, but it is not on a pre-set course.

“Inflation in Australia is too high, at 6.9% over the year to October,” said Governor Lowe.

“There has been a substantial cumulative increase in interest rates since May. This has been necessary to ensure that the current period of high inflation is only temporary.

“High inflation damages our economy and makes life more difficult for people.”

So how much have your mortgage repayments gone up in 2022?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan soon.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That’s an extra $835 a month on your mortgage compared to May 1.

If you have a $750,000 loan, repayments will likely increase by about $110 a month, up $1250 from May 1.

Meanwhile, a $1 million loan will increase almost $150 a month, up about $1,680 from May 1.

How high are interest rates expected to go in 2023?

Here’s what economists from the big four banks are predicting in 2023:

CommBank – no increases in 2023. Dropping to 2.60% by December 2023.
NAB – rising to 3.60% by May 2023 and then staying steady.
Westpac – rising to 3.85% by May 2023, then dropping to 2.85% by November 2024.
ANZ – rising to 3.85% by May 2023, then dropping to 3.50% by November 2024.

Worried about your mortgage? Get in touch

If you’re starting to feel the pinch and are worried about what interest rate rises might mean for your budget in 2023, feel free to contact us today.

Some options we can help you explore include refinancing (which could include increasing the length of your loan to decrease monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.

So don’t spend the holiday season sweating on next year’s mortgage repayments – get in touch now so we can work out a plan together.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Where there’s a will (and genuine savings), there’s a way

Thu, 01 Dec 2022 00:30:00 GMT

Inheritances can be a bittersweet part of life. But an inheritance alone won’t always cut it when applying for a home loan. Having genuine savings can help show lenders you’ve got what it takes to meet mortgage repayments.

With many older Australians having accumulated a decent amount of wealth throughout their years, it’s not uncommon for some of their younger family members to receive a leg-up into the property market when they pass away.

But an inheritance alone won’t always cut it to land a home loan.

In addition, you may be expected to show proof of genuine savings. This says “hey, I can put money aside to meet repayments” – which is music to a lender’s ears.

So today we’ll break down what may or may not be considered genuine savings, and how you could use your inheritance towards a home loan.

What counts as genuine savings?

Genuine savings are funds that show off your saving prowess.

Lenders typically look for genuine savings that amount to 5% of the property purchase price. They also like to see that these savings have been held or accumulated for a minimum of three months.

Here are some examples of commonly accepted genuine savings:

– Regular deposits into a savings account over a three month period.
– Term deposits held for at least three months.
– Shares or managed funds held for at least three months.
– A deposit paid to a real estate agent, builder or developer that was originally in your savings account prior to being paid.

Some lenders may also accept your rental payment history as genuine savings.

And some may accept equity in existing property, bonuses, cash gifts, and even your inheritance as long as it has been held in your account for at least three months.

But then again … some may not.

Genuine savings policies often differ between lenders. So it’s important to know just what will be accepted by your lender of choice – and we can help with that.

What doesn’t count as genuine savings?

So now we know what may be accepted. Here are examples of funds that lenders commonly don’t consider:

– Gift from parents or family.
– First Home Owner’s Grant (FHOG).
– Borrowed funds (for example money taken from a personal loan).
– Money from selling assets (for example selling a car or furniture to raise cash).
– Tax refunds.
– And today’s topic … inheritance.

But ultimately, it depends on the policy of the lender you’re applying with, because some of these examples (such as your inheritance) may be accepted under certain circumstances.

How can I use my inheritance to buy a home?

Some lenders will allow you to use your inheritance towards genuine savings … but with caveats.

They’ll need proof that the money is in fact yours.

Your lender may ask you for a letter of validation from the executor of the will. They may want to see a copy of the will and grant probate (which proves it’s legally binding).

They’ll also want proof the amount has been deposited into your bank account. Or, they’ll want proof from the executor (or a solicitor) showing you have legal access to the money.

And finally, some lenders require you to hold the funds in your bank account for a minimum of three months before they’ll count your inheritance as genuine savings.

It’s important to get clear on the requirements of your lender of choice.

This brings us to our next point …

Give us a call

If you’re looking to use your inheritance for a home loan, give us a call.

With different home loan policies for different lenders, it can be confusing.

We can help you work out who accepts what for genuine savings. And show you which lenders are willing to work with your inheritance, so you can make the most of it.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Your new phone or your home loan? What would you research more?

Wed, 23 Nov 2022 22:53:00 GMT

What’s more important: your new phone or your next home loan? Well, we were stunned to see a recent survey that showed Australians put more effort into researching phone plans than they did their home loan. Here’s how we can help you get the balance right.

More than 70% of Australians say they’re more likely to spend time looking at options for phone and internet plans, car insurance and even electronics purchases, than researching a home loan – according to a recent Pepper Money survey .

And look, we get it.

Selfies, Netflix, Uber Eats, Instagram, Tinder … phones are pretty damn nifty.

Home loans? Admittedly, not so much.

But that’s no excuse to cut corners when it comes to making what could be the biggest financial decision of your life.

By allowing yourself to get so daunted that you just go with the bank you’ve had a savings account with for years, you could potentially lock yourself into a lemon of a loan.

So today we’ll explore why 7-in-10 Australians now use a broker to help them choose the right home loan for them – and why 86% say they’d use a broker again .

1. Save time and money

Applying for a home loan can be a full-time job in itself. The research, piles of paperwork, back-and-forth queries and requests …

With busy modern lives, finding the time can be tough.

A broker can save you time by doing the legwork and comparisons for you. We use our industry knowledge and connections to find suitable home loans with competitive rates.

We’re also aware of the type of additional fees and costs that some loans may have. And this could potentially save you money.

2. Target suitable lenders

A broker can assess your situation and point you in the direction of lenders who may be more likely to say yes.

For example, say you’re working as a casual or are self-employed. There are some banks out there who don’t really favour these kinds of employment arrangements.

However, mortgage brokers have access to a wider range of options and can put forward several potential lenders who are more likely to consider your application.

This targeted approach is important because submitting too many applications can hurt your chances of loan approval.

Each time you apply for a loan, your credit history is pinged. And too many hits on your credit score can lead to lenders seeing you as risky, potentially reducing your options. A broker will take this into account.

3. Expert guidance

What’s my borrowing power? How do I fill out an expense report? What documents do I need?

The application process can be a lot, especially when you’re busy. And the financial wizardry and jargon involved can be downright confusing.

But a broker can provide you with expert guidance.

We’ll look after the application process for you and help you organise your finances and prepare the documentation you’ll need.

You’ll also (hopefully) only have to supply that documentation once, rather than over and over again with different lenders.

Get in touch

So if you’re ready to find a mortgage and streamline the process, it’s time to put that all-important phone to use and give us a call.

We can help you get your ducks in a row and use our expert knowledge and experience to line up with the right kind of loan for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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5 surprising reasons for home loan heartbreak

Wed, 16 Nov 2022 22:47:00 GMT

Whether it’s your love life or your home loan application, no one likes getting rejected. There are many reasons why it could happen, and some can come as a big shock. So today we’ve outlined five surprising reasons to help you avoid home loan heartbreak.

There are few words would-be home buyers dread more than: “your home loan application has been rejected”.

It can feel like a real kick in the guts. And some of the reasons can be surprising.

A rejected loan application can hold up your home-buying plans and could have a negative effect on your credit score. So it can be important to avoid this scenario.

Below we’ve outlined five reasons your next application could be rejected – so you can start heading them off now.

1. Spending too much or too little

Most people know that spending too much is a major red flag for lenders. So limiting your unnecessary expenses is important.

But drastically slashing costs and living a very meagre existence can also be a concern.

Lenders can see this as unrealistic and unsustainable, and they can remedy it during assessment by applying the household expenditure measure (HEM) instead.

HEM is a standardised benchmark used to estimate annual living expenses. And if your standard, reasonable budget is on the super savvy frugal side, there’s a chance HEM may be higher.

2. Credit cards

Having multiple credit cards and performing several balance transfers can affect your application.

Every time you apply for credit an inquiry is logged on your credit history. And lenders will likely take notice.

Even your “just in case” credit card can have an impact. You may need to prove you have the means to pay off the limit within three years, even if the balance is $0.

3. By now pay later services

‘Tis the season for shopping. And buy now pay later (BNPL) schemes will be rolling out the red carpet.

But it might be worth resisting the temptation.

The Australian Prudential Regulation Authority (APRA) amended its framework this year to include BNPL debts in the reporting of debt-to-income (DTI) ratios.

Lenders will likely include BNPL debt in your DTI ratio to see your total debt in relation to your income. And a high DTI can result in limited borrowing capacity or even rejection.

4. Credit history

Your credit history is a finicky thing.

Even a few late payments can cause your credit score to drop. So it’s important to make sure your bills are paid on time.

Also, applying for too many credit cards or other loans can impact your credit score, and therefore your home loan application.

And with increasing news of scams, data breaches, and identity theft … it’s a good idea to check your credit history health.

You can request a free credit report once a year from one of three national credit reporting bodies which are listed on this government website .

5. Your type of income

Your type of income could make or break your application.

Lenders typically favour traditionally employed applicants with a steady and reliable income.

Many lenders consider self-employment carries a greater risk for less consistent income, and some can reject applications on these grounds.

So if you’re self-employed, when applying for a home loan it’s important to target lenders who are more open to lending to small business owners (we can give you the down-low on this).

Also, word on the street is that tax debt is increasingly becoming an issue for self-employed applicants. So if you have a large tax debt, it might be worth getting on top of that if you can.

Get in touch

If you’re not the kind of person who likes being rejected, well, the good news is that we’re not the rejecting type.

We’d love to have a chat about your home-buying dreams to see if we can match you with the right loan and lender for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post 5 surprising reasons for home loan heartbreak appeared first on Osinski Finance .

Buying could be cheaper than renting for a third of properties

Wed, 09 Nov 2022 23:09:00 GMT

For many Australians, rate hikes and inflation have made the dream of property ownership feel ever more distant. But a recent analysis shows that meeting mortgage repayments could actually be cheaper than renting for more than a third of Australian properties.

Look, we get it. Often the biggest obstacle in the way of home ownership is saving up for a deposit.

But once you’ve got that sorted – which we’ll help you tackle below – a recent CoreLogic analysis found servicing a mortgage was more affordable than average rent prices in 518 Australian suburbs. In fact, in some areas there were savings of over $900 a month .

Not to mention that with rental prices surging by about 10% across Australia over the past year and vacancy rates at a record low 1.1%, home ownership has possibly never looked more appealing!

So we’ve got some tips to help you switch from renter to homeowner in a timely (and confident) way.

Take advantage of the buyer’s market

Buying now or in the near future could mean less competition for properties, price drops and sellers willing to negotiate.

And recent rate hikes mean that, even during the spring selling season, we’re seeing fewer buyers. In fact data shows the median number of days that properties sit on the market is now 35 , compared to 20 days last year.

And in response, property prices are falling. September data showed a 1.4% drop.

So by shopping around in the right areas and putting your negotiator hat on, you may get a price that could make buying cheaper than renting.

And most importantly, buying property and making mortgage repayments can create equity for you … instead of your landlord.

Get in on government schemes

There’s no denying that saving a big enough deposit to buy can be a bit of a slog.

But what if there was a way to sidestep the standard 20% deposit? And possibly avoid stamp duty too?

There are a number of government schemes you may be eligible for that can fast-track house buying by an average of 4 to 4.5 years .

The federal government offers low deposit, no LMI loans for eligible first home buyers , single parents and regional first home buyers .

Also, all state governments (except South Australia) have first home buyer stamp duty concessions for those eligible.

And you can stack these schemes together for more bang for your buck.

But you’ll have to move quickly on the no LMI schemes – they’re allocated on a first-come, first-served basis every financial year.

Give us a bell

Keen to make the leap from renter to home owner? If so, you’ll be busy researching the market and learning the art of the deal – so why not get a helping hand with your finances?

We can help find the right loan for you and provide you with helpful guidance that could increase your chances of mortgage application success.

And while we’re at it, we can assist you in applying for any money-saving government incentives you may be eligible for.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Buying could be cheaper than renting for a third of properties appeared first on Osinski Finance .

Hold your horses: RBA hikes cash rate again to 2.85%

Tue, 01 Nov 2022 03:59:00 GMT

Whoa, Nelly! The Reserve Bank of Australia (RBA) has lifted the official cash rate again, this time by another 25 basis points to 2.85%. How much will this rate rise increase your monthly mortgage repayments, and when are the hikes expected to stop?

Dubbed the “rate that stops the nation”, today’s Melbourne Cup RBA board meeting did not see board members rein in the rate rises.

Back in May the official cash rate was just 0.10%. Today it was increased for the seventh straight month to 2.85%.

RBA Governor Philip Lowe said in a statement that the RBA board expected to increase interest rates further over the period ahead.

“The size and timing of future interest rate increases will continue to be determined by the incoming data and the Board’s assessment of the outlook for inflation and the labour market,” said Governor Lowe.

“The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.”

How much extra will your mortgage be each month?

Unless you’re on a fixed-rate mortgage, the banks will likely follow the RBA’s lead and increase the interest rate on your variable home loan soon.

Let’s say you’re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.

This month’s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That’s an extra $760 on your mortgage compared to May 1.

If you have a $750,000 loan, repayments will likely increase by about $110 a month, up $1140 from May 1.

Meanwhile, a $1 million loan will increase almost $150 a month, up almost $1,530 from May 1.

So how many rate hikes have we got left?

The good news is that most economists believe we’re through the bulk of the rate rises, and they could stop as early as next month.

Here’s what economists from the big four banks are predicting:

CommBank – one rate rise to go, peaking at 3.10% in December 2022.
NAB – three rate rises to go, peaking at 3.60% in March 2023.
Westpac – three rate rises to go, peaking at 3.85% in March 2023.
ANZ – three rate rises to go, peaking at 3.85% in May 2023.

Worried about your mortgage? Get in touch

If you’re starting to feel the pinch and are worried about what interest rate rises might mean for your monthly budget, feel free to contact us today.

So if you’re concerned about how you might meet your repayments in the months ahead, give us a call today. We’d love to sit down with you and help you work out a plan moving forward.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post Hold your horses: RBA hikes cash rate again to 2.85% appeared first on Osinski Finance .

With property prices dropping, is now the time to refinance?

Wed, 26 Oct 2022 23:03:00 GMT

You may have heard that property values are on the decline. But what does this mean if you’re planning to refinance? We’ll discuss how falling housing prices may affect your refinancing application and what you can do about it.

With the rising cost of living and climbing interest rates, you may be looking to refinance your mortgage.

Depending on your circumstances, it can be a great way to get a better interest rate on your loan.

Not to mention that if you need access to funds for an investment property or renovation, refinancing can allow you to cash out equity in your home to use for other purposes.

But, according to CoreLogic , 79.5% of house and unit market values are on the decline across Australia. And this can affect refinancing outcomes.

We’ll walk you through just what the effects of a property value drop can mean for refinancers and how you can take action now to get ahead of the curve.

Refinancing and your property’s value

Rising rates have contributed to declining property values in some areas around the country.

For example, Sydney property prices have declined 10% since they peaked in February this year, according to the latest CoreLogic data , and many economists believe they’ll fall even further.

And as a homeowner, a drop in property value can affect your equity.

That’s because equity is the difference between your property’s (market) value and your mortgage balance. And it’s a number that lenders pay attention to when assessing refinancing applications.

Refinancing before your equity drops may see your refinancing application have a greater chance of success.

You see, most lenders will typically require you to have 20% equity in your home to refinance, which essentially serves as a deposit.

And according to this graph here , if you’ve bought a house in Sydney (for example) since June 2021, due to the recent property price declines you soon may no longer have 20% equity in your home.

If you don’t have 20% equity, you could still refinance by paying lenders mortgage insurance – but that would likely defeat the purpose of refinancing in the first place.

And if you fall into negative equity – where your home’s value drops below your mortgage balance – then refinancing most likely won’t be on the cards at all and you’ll be stuck with your current lender.

So, if you’re interested in refinancing your loan to get a better rate, sooner may be better than later … depending on how your property value is fairing.

Refinancing to cash-out equity

If you’re keen to unlock some equity – you’re not alone!

According to NAB research , seven in 10 mortgage holders recently cashed out equity while property prices were high and used the money to renovate, invest in property or shares, or boost their superannuation

So how does cashing out equity work?

Let’s say you bought an $800,000 house five years ago that is now worth $1 million.

And let’s also say you took out a $600,000 loan for that house, which you’ve managed to pay down to $500,000 (you little beauty!).

By refinancing that $500,000 loan into an $800,000 loan (banks will typically let you borrow up to 80% of a property’s market value), you can unlock $300,000 in equity.

However, if you delay a year or so, and national property prices decline 10% over this period, your house might only be valued at $900,000.

That would mean if you wanted to unlock 80% of your property’s market value, you could only refinance your $500,000 mortgage into a $720,000 loan – and therefore only unlock $220,000 in equity.

Get in touch

If you’ve been considering refinancing lately, contact us to find out more. Whether you’re looking to land a better rate or unlock equity in your home, we can help you with all the particulars.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

The post With property prices dropping, is now the time to refinance? appeared first on Osinski Finance .

Is now a good time to buy an investment property?

Wed, 19 Oct 2022 22:47:00 GMT

You’ve bought a home. And now you might be considering adding an investment property to your portfolio. But have recent interest rate hikes cooled your heels? We’ve outlined reasons why now may still be a good time to buy.

To buy or not to buy, that is the question.

There’s no denying that rolling rate rises might have some sections of the media spouting doom and gloom.

After all, national property prices have dipped and higher interest rates can lower your borrowing power.

However, if you’re in a position to buy now, the current climate can provide less competition and more power to negotiate a good price.

Also, rental tenancy vacancy rates have reached record lows , meaning the demand for rentals is high.

So if you’re ready to dip your toe into property investment, we’ve outlined below why it could be a good time to do so.

It’s a buyer’s market

With rising interest rates and inflation, there’s been a softening of the market and this may reward those who are ready to buy now.

CoreLogic data shows there are fewer buyers at present, and properties are increasingly sitting on the market.

In the three months to September, median days on the market increased to 35 days. That’s a big increase from a median of 20 days in November 2021.

Fewer buyers can mean more property options for you to choose from and less competition when putting in an offer.

And by targeting properties that have been on the market for a while, you could potentially have more bargaining power (just be sure to do your due diligence!).

Low rental tenancy vacancy rates

Currently, there is a high demand for rental properties across Australia.

At 0.9%, the current national rental tenancy vacancy rate is the lowest it has been since 2006, according to SQM Research .

That means the likelihood of your investment property sitting empty now is low.

People are looking for solid rental properties. And if you’ve got just the thing, your investment property could have a number of good tenants putting in applications.

Flexibility around location

When purchasing an investment property, you’re not locked into buying in your home state or city.

You can set your sights further afield to make the most of what the current property market has to offer.

You can look to buy in areas where property prices have already dipped and leverage the current buyer’s market to negotiate. Also, consider purchasing in an area with a healthy demand for rental properties.

That way, you can make a financially sound purchase and increase the chances of having a good tenant in your property sooner.

Possible lower cost of entry than for owner-occupiers

You’re most likely more discerning when shopping for a property you want to live in – we all have personal preferences we want met.

And unfortunately, lists of non-negotiable bells and whistles usually come with primo pricing.

But when buying an investment property, you can be more flexible, which can open up more affordable options.

Look for the essentials that tenants want, such as a safe, comfortable, and low-maintenance property. And with lower competition now, there could be more viable properties to choose from.

The french door, olympic-sized pool, and ocean-view wish list that usually blows up budgets need not apply.

Give us a call

If you’re ready to dive into property investment, come and talk to us.

We can walk you through what you need to consider when it comes to your finances, such as your borrowing power, unlocking the equity in an existing property, finding the right loan, and much, much, more.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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