HOW ACCESSING YOUR SUPER EARLY, CAN EFFECT YOUR HOME LOAN APPLICATION…

Reception • Sep 29, 2020

As you may be aware, the Australian Government allowed Aussies’ early access to their Superannuation to help those financially impacted by the economic slowdown caused by COVID-19. The scheme allowed you to apply for one-off access in the 2019/20 financial year of up to $10,000 from your super.


The ongoing crisis then saw the scheme reimplement in the 2020/21 financial year, with a new application required to access a further $10,000. Meaning that even if you accessed your super in the previous financial year, your eligibility needed to be reassessed the following year.


This all sounds great, especially if you are experiencing financial difficulty due to COVID-19, to help aid in paying bills, rent, or get you out of debt. However, a recent study has shown that nearly half (40%) of those who accessed their super early, actually saw no drop in their income during the crisis. So the question is, how could this hurt your home loan application?


Well here is the problem.


While lenders have advised that those taking advantage of most of the COVID support schemes would not be penalised on future loan applications, the majority of them are not open to those who have accessed their superannuation early. The reason being, for you to be eligible to access your super early, you had to demonstrate that you had experienced financial difficulty as a result of COVID-19.


Unfortunately, you won’t be able to escape this admission when it comes time to apply for your new home loan. So if you accessed your super early ‘just in case’, it is almost impossible to argue that you can meet your future home loan repayments, when there are records that you took this money out of your super due to financial distress.


So, if you are looking at purchasing a new property & applying for new lending, we highly recommend avoiding withdrawing any of your superannuation if you can. This is going to increase your serviceability with the lender & make your home loan application much easier.


It is important that you get in touch with our team, so that we can discuss your options and help you. We can also help you by putting a budget & bank account structure tailored to your needs, to assist you in staying on top of your expenses during this difficult time.

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 and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. © 2019

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

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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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