Anyone applying for a home loan these days will find that there are more hurdles to jump than has recently been the case.
If you think that being only a few days late making a payment on a loan doesn’t matter, think again. Even the smallest lapse could potentially affect your credit worthiness.
Ready to make the leap from renting to buying a home? Well, before you begin the search for your perfect home, there are lots of questions to ask yourself. In this blog we talk about some of the big ones.
Finding it harder to obtain a home loan? We’ve put together a list of things that you can do to maximise the chance of getting a home loan. There are ways that you can put yourself ahead of the pack.
In this blog we talk about some excellent tips for people looking for the right mortgage product and then reducing it quickly – what to look for and what to be aware of.
On 9 May 2017, the Government announced that from 1 July 2018 individuals will be able to apply to withdraw voluntary contributions made to super after 1 July 2017 for a first home deposit.
Voluntary contributions include:
– Undeducted (non-concessional) personal contributions
– Deducted (concessional) personal contributions
– Salary sacrifice contributions.
Up to $15,000 of voluntary contributions made in a financial year count towards the amount that can be released. The maximum amount that can be released is $30,000 of personal contributions plus an associated deemed earnings amount. Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset.
FIRST home buyers in NSW will no longer have to pay stamp duty on both new and existing homes worth up to $650,000, with discounts also applying to properties worth up to $800,000. A great outcome for first home buyers.
The NSW Government has announced a comprehensive package of measures to support first homebuyers by providing stamp duty exemptions, boosting housing supply and delivering infrastructure to support growing communities across the State. the measures include:
– Abolish stamp duty on all homes up to $650,000
– Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
– Abolishing the stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first homebuyers with limited deposits, providing a saving of around $2,900 on an $800,000 property
– Doubling the foreign investor surcharge from 4% to 8% on stamp duty and 0.75% to 2% on land tax
– Removing stamp duty concessions for investors purchasing off the plan
– Committing $3bn in infrastructure funding from Government, councils and developers to accelerate the delivery of new housing
– Fast-track approvals for well-designed terraces, townhouses, manor homes and dual occupancy by expanding complying development to include these dwelling types
– Measures to maintain the local character of communities
*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).**Does not include additional land tax surcharge.
In Australia, the minutes from the RBA’s last Board meeting confirmed that the door is wide open for another rate cut at its August 2 meeting. While not as direct as the Reserve Bank of New Zealand, the RBA indicated that it was waiting on further information on inflation, the labour market and the housing market and the next update of the RBA’s economic forecasts. Since it has described the labour market and the housing market as “mixed” and recent data on both suggest no reason to change that assessment, the implication from the RBA is that should we see another low inflation reading when the June quarter CPI numbers are released on Wednesday then it’s likely that the RBA will cut the cash rate from 1.75% to 1.5% on August 2. A CPI outcome of 0.4% quarter on quarter for headline and underlying – which is what we expect – would likely be enough to see the RBA cut again.
It amazes me after reading the article from the SBS that Australians are still paying over half a billion dollars a year in ATM fees.
Why would you pay for ATM fees when ING offer the ability to use any ATM in Australia for free (any bank, anywhere) when you deposit your pay of $1,000+ each month into there Orange Everyday account.
The political commentary regarding retrospective changes to negative gearing is concerning, the head of tax at an international accounting firm has warned.
BDO tax partner Eddie Chung says wind back negative gearing benefits on a retrospective basis penalises hard-working Australians for being financially responsible.
“People make medium to long term economic decisions based on the law at the time, and while some may argue the environment has changed to warrant the wind back of negative gearing benefits, doing so retrospectively and applying it to people who have already bought properties on which negative gearing benefits are claimed would be tantamount to penalising them for planning ahead and being financial responsible,” Chung said.
“These people should not be penalised for choosing an option that would make themselves financially self-sufficient, rather than having to rely on the Government for assistance when they retire.”
In fact, Chung claims it is “blatantly inequitable” and could destabilise the economy.
“It could undermine the stability of the economic environment, which may have a far reaching impact on market confidence and therefore the stability of the economy.
“It is akin to telling people who have been saving for years through their superannuation funds the environment has now changed and the Government will seize all superannuation benefits to balance the budget.
“You simply don’t tinker with people’s medium to long term plans because these plans need political and economic certainty to achieve their intended outcome, which underwrites the economic future of this country.
“Even if negative gearing changes are to be entertained, allowing these changes to apply retrospectively must not be an option.”
Retrospective negative gearing changes ‘blatantly inequitable’ . 2016. Retrospective negative gearing changes ‘blatantly inequitable’ . [ONLINE] Available at: https://www.brokernews.com.au/news/breaking-news/retrospective-negative-gearing-changes-blatantly-inequitable-212521.aspx. [Accessed 29 February 2016].