The ANZ CoreLogic Housing Affordability quarterly report reveals the challenges many would face when buying or renting in Australia. The May 2023 report analysed the rental affordability crisis in Australia caused by the pandemic’s impact on rental supply and demand. Why Is Australia Facing A Rental Affordability Crisis? Before the pandemic, low-income renters required 47% of their income to pay rent on a new lease. By March 2023, that rose to 51.6%. This led to a record-high gap between the portions of their income that median and low-income households are required to pay for rent. The scarc ..read more

Westpac recently launched its Streamlined Refinance policy to help customers. What Is Westpac’s Streamlined Refinance Policy? This new policy is designed to make refinancing easier and more accessible to customers who meet certain eligibility criteria, so they do not end up as mortgage prisoners. Applications to refinance a mortgage that meet the Streamlined Refinance policy criteria will continue to be assessed under standard serviceability and document verification requirements. However, if a customer cannot meet the serviceability requirements under the standard assessment criteria, a modif ..read more

As of the end of June 2023, two of the largest banks in Australia will no longer offer cashback incentives to customers who refinance their home loans. Commonwealth Bank of Australia (CBA) will be ending its cashback offer on 31 May 2023, while National Australia Bank (NAB) will be discontinuing its offer after 30 June 2023. Observers say the other majors will be soon to follow. Why Are Banks Stopping Their Cashback Offers? Home Loan Experts founder Otto Dargan explained, “There has been an intense price war for the last year, in which banks have been offering cash to refinance. Sooner or late ..read more

The RBA’s 11th rate rise since May 2022 has everyone worried about their loan repayments. The central bank has been accused of playing recession roulette, but the RBA argues that rate increases are required to smash inflation – which, as of May 2023, is at 7%. The RBA’s target rate is 2-3%. What Happens When Interest Rates Rise? The direct effect of a rate rise is on your monthly repayment. When the cash rate goes up, most banks will raise your interest rate, too. For a $500,000 home loan, an increase of 0.25 percentage points would add about $80 to your monthly repayments.   The impact m ..read more

The 2023-24 Australian federal budget has sparked a debate about whether it will cause inflation to rise or fall. The government’s $21 billion economic relief package focuses on relieving the high cost of living, promoting affordable housing, improving healthcare, and providing clean-energy incentives. While the government believes its cost-of-living package will ease inflation pressures, some experts say the spending raises the chances of stubborn inflation. Home Loan Experts CEO Alan Hemmings says the budget makes more RBA rate hikes more likely. “I will preface this by saying I am not an ec ..read more

If you are looking to enter the property market but need a helping hand, we have exciting news. The government’s Home Guarantee Scheme will loosen its eligibility requirements to help more people buy homes. Changes to the schemes will include: For First Home Guarantee and Regional First Home Buyer Guarantee Friends and family members with joint applications will be eligible. Non-first-home buyers who haven’t owned a property in the last decade will be eligible. For Family Home Guarantee Single legal guardians of children, such as their aunts, uncles and grandparents, will be eligible. N ..read more

After nearly a year of increasing interest rates, the Reserve Bank of Australia (RBA) paused the hikes in April 2023. This decision raises expectations of a stabilisation and this could attract more first-home buyers to the housing market. Signs Of Property Market Stabilising There are actually several indications that the property market may be stabilising: Rising Auction Clearance Rates The combined auction clearance rate in the capital cities of Australia rose from 61.5% to 68.1% between the second and third weeks of April. It has also remained above the decade average for six of the past e ..read more

A record number of building companies are collapsing in Australia. In the first nine months of financial year 2023, the number of failing construction companies has reached a seven-year high. New data from the Australian Securities and Investments Commission (ASIC) revealed that 1,601 construction insolvencies were recorded from July 2022 to March 2023. Moreover, ASIC showed that 524 of those insolvencies, nearly one-third of the total, occurred in the first three months of 2023. This puts homeowners at risk of major problems. If a homeowner has paid a deposit or made other repayments to the b ..read more

The auction market has opened strongly in 2023. Homebuyers across Australia should prepare for increased competition as the number of active bidders at each auction continues to rise. The majority of auctions now record more than five active bidders, similar to the boom-time conditions of 2021. There is some uncertainty about whether this trend will continue in the coming months. The answer will depend largely on whether the RBA raises the cash rate further and the impact of its previous rate hikes. Australian Property Market: High Demand, Low Supply There are several trends that are probably ..read more

Prepare for a shock. Those enjoying historically low interest rates may soon face the full impact of 10 RBA cash rate hikes, as a staggering $141 billion in fixed-rate home loans are set to expire and revert to much higher variable rates. As rates increase, it is important to consider whether refinancing your home loan could be a smart financial move. Here are some tips and insights, provided by our experienced brokers, to help you make informed decisions in this changing interest-rate environment. 1. Ensure That The Benefit Is Higher Than The Costs Refinancing typically involves paying closin ..read more