DO YOU KNOW A POTENTIAL FIRST HOME BUYER?

Reception • Apr 07, 2020

First Home Buyers are out and buying!

 

Reserve Bank Governor Philip Lowe says Australia is at a turning point, with cash set to become “a niche payment instrument”.

If you have been watching the signs for open homes going up in the last few weeks in your area, then you would also be noticing a bit of activity happening in the lower end of the property market.


Since the First Home Loan Deposit Scheme (FHLDS) commenced on 1 January 2020, the property market has been a buzz of activity in most capital cities and rural areas for properties under the First Home Loan Deposit Scheme price cap1.


With a tiny 5% deposit, no lenders’ mortgage insurance (LMI) and first home buyer stamp duty savings, it has attracted many new consumers into the market who thought they would never be able to acquire their own home.


Minister for Housing Michael Sukkar stated that the First Home Loan Deposit Scheme is already working to help Australians get into the property market sooner, stating that saving for a 20% home loan deposit is “one of the biggest barriers for first home buyers”.

“The scheme is cutting years off the time it takes to secure a deposit, allowing Australians to realise their dreams of owning a home sooner,”


Minister Sukkar

According to the intentions of applicants, the most popular cities2 have been:


1. Sydney (19.4%)

2. Melbourne (16%)

3. Brisbane (9.8%)


The remaining proportion of loans is for houses outside of these three cities.


At week seven, apparently of the 10,000 applications available, 865 Australians secured a loan with 109 already having settled. 5,639 applications are lodged for the scheme and out looking for their first home while waiting to learn their borrowing capacity.



Surprises?


  • 55% of applicants to date are aged below 30, with 34% of them aged between 25 and 29.
  • 20% are aged between 40 and 50 years and the oldest profile has been 53 years.
  • The average income of applicants has been $67,090 for singles and $111,373 for couples. Well below the income cap.


Stop the stereotype…


To get into their first home, more than half of the millennials surveyed3 said they’d sacrifice:


  • little luxuries (57.7%),
  • experiences (56%) and
  • big-ticket items (55.3%) to get on the property ladder, with over 20% communicating they were even willing to give up basic necessities.

 

As you can see, first home buyers can be of any age, so if you are one or know one we encourage you to call us to help you achieve the GREAT AUSTRALIAN DREAM of owning your own home.


And if you don’t have a deposit and think mum and dad can help out – there is a solution for you too!


All you need to do is call us for a quick chat and we can let you know if we can help you or not.

Sources and links:

  1. For details on the price cap visit: https://www.nhfic.gov.au/
  2. The Adviser News
  3. Bankwest recent research

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. ©2020

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Navigating the World of Mortgages: What borrowing capability do you have?

01 Aug, 2023
Navigating the World of Mortgages: What borrowing capability do you have? Deciding to buy a house is an exciting milestone, and we're here to accompany you through the intricate world of mortgages. With the changes to interest rates that have happened over the last twelve months, it's essential that we are prepared and approach borrowing with a healthy attitude, as your choices now will have long-lasting implications, so let's ensure you're well-prepared for this homeowner journey. What should I consider when considering my borrowing limits? First, let's figure out how much you can borrow without sacrificing your peace of mind and daily joys. The key here is to measure your income against your expenses, including the potential mortgage repayments. A general rule of thumb: try to keep your mortgage repayments to no more than 35% of your gross monthly income. When it comes to borrowing generally, the higher your deposit and the higher your income, the more they should be willing to lend. The good news is we have more flexibility as mortgage brokers than the big banks, so we can look at your circumstances closer. Now, let's discuss some essential factors to consider when figuring out your borrowing limits. How much debt can you handle? Think about your lifestyle and what you're willing to give up versus what's non-negotiable. Be realistic about your dream home. Start with something affordable and gradually work your way up as your earnings grow and your equity increases. Think about the future. Are you planning to start a family, change jobs, or experience significant life changes? Factor those possibilities into your calculations. Keep an eye on interest rates and consider how further rises might affect your ability to make repayments. Reminder; A reminder that when purchasing a property, you will also need to factor in further expenses, such as, pay stamp duty, pest & building inspections, conveyancer fees, application fees, council rates, possible strata or body corporate costs, and utility bills to factor in. In Summary We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation to help you whether you are purchasing your first home or refinancing. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/

Refinancing: What Are Your Options As A Homeowner?

By Bree Jones • 19 Jun, 2023
At Future Finance Group, we understand that financial hardship has become a pressing concern for many homeowners across the country, including Melbourne. We want to help you explore the benefits of refinancing your mortgage. By assessing the right time to refinance and understanding the steps involved, we can guide you to potentially save money, access improved loan terms, and secure a more favourable financial future. What are the Benefits of Refinancing? During these challenging times, refinancing your mortgage can bring meaningful advantages. Firstly, it may allow you to take advantage of lower interest rates, reducing your monthly mortgage payments and offering much-needed relief. Additionally, refinancing allows switching from a variable-rate to a fixed-rate mortgage, ensuring stability and protection against future rate increases. By consolidating high-interest debts, you can streamline your finances and gain more control over your monthly obligations. Also, refinancing can unlock equity in your home, providing funds for essential expenses or other financial goals. Assessing the Right Time to Refinance Working out when to refinance can be challenging, mainly because we do not know what the future will bring. We are here to look at your personalised options and work with you to ensure your financial security. We can consider many factors, such as your credit score, home equity, and employment stability, to give you informed options. Steps Involved in Refinancing and Potential Cost Savings : We are here from the beginning to the end and strive to simplify the refinancing process for you. We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation. Our ultimate goal is to help you secure better terms, rates, and long-term cost savings to ease the pressure on you and your family. In Summary In these challenging times, exploring refinancing options can provide much-needed relief and open up financial opportunities for you as a homeowner. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/
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