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After two years of relentless rate rises, the question that every mortgage holder has is… When are interest rates finally going to start falling?

If we were answering this question even just one month ago, the outlook was a little different. That is the thing about the mortgage market: it is evolving every single day, responding to the economy and evolving as new trends and data points become available.

As of May 2024, this is what is expected of the mortgage market for the rest of 2024.

People are going to fall further behind on their home loans

    As expected, when interest rates increased by over 4% in less than two years, the number of households struggling to make their repayments increased. 

    At Suncorp, home loans in arrears of 90 days or more have climbed $85 million in the first quarter of 2024 to $510 million. It now accounts for 0.73% of the bank’s gross loan assets. At CBA, home loans of 90 days or more were 0.61% in March, up from 0.52% in December 2023 and 0.43% at the end of 2022.

    It is expected that loan arrears will continue getting worse, which could lead to more bankruptcies and repossessions. Traditionally, this has prompted more housing stock on the market and a correlating slowdown in property price growth. 

    Interest rates won’t rise

    For those of us who currently have a home loan or who are looking to buy a property and take out a loan shortly, what we want to know is: can interest rates possibly get any higher?

    In early May, Judo Bank economic head Warren Hogan suggested they could! He predicted that there could be as many as three cash rate hikes over the remainder of this year, potentially seeing the cash rate soar above 5% and home loan rates hitting 7%-8%. He pointed to stubbornly high inflation as the cause. Fortunately, he is in the minority with his forecast, and he did say he would closely monitor data and trends over the coming weekend and months, adding: “Hopefully, I’m wrong.”

    Interest rates might fall 

    Experts and economists are expecting that’s we will see interest rates start to fall in 2024. The Big 4 bank’s current predictions are:

    This is very welcome news for any and all Australians who have a mortgage or plan to have one. A rate cut of 0.25% is equivalent to a saving of around $100 a month on an average $600,000 home loan.

    Activity levels are falling

    According to Pexa, In the first quarter of 2024, the number of new loans issued fell 17% on the previous quarter. Refinancing levels in the same quarter are down 16.4%. 

    There’s no denying that higher interest rates have boxed plenty of Australians into their current loans, as they cannot afford to refinance or to move house.

    However, many don’t realise there are options to restructure debt and rearrange their financial situation to be more streamlined. We work with hundreds of Australians every year to negotiate lower rates on their home loans, optimise their financial situation and help them pay off bad debts and increase their asset base along the way. If you would like an obligation-free chat, contact us today!

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer: This information is provided without considering your specific objectives, financial situation, or needs. Therefore, it’s essential to evaluate its suitability in light of your individual circumstances before taking action.

    We all love the idea of landing a bargain property, but for most home buyers, the real issue is whether they are overvaluing a place and paying too much in the process. 

    Buying a home is exciting, but it’s perfectly natural to be nervous given that you are likely committing to spending hundreds of thousands of dollars (or millions!). But with a bit of research, and some other handy tips, you can help protect yourself when the bidding or negotiation begins. 

    Why it is important to pay a fair price

    Paying above the odds for a home can have serious financial impacts. The more you pay, the more you may need to borrow to fund the purchase. That can mean paying higher loan repayments, potentially leaving your budget stretched, especially if interest rates rise. 

    The worst case scenario is you get caught out by a bank valuation that comes in lower than the purchase price, leaving you facing a funding shortfall. 

    The question is – how do you know if the asking price for a home is in line with the market or if it is completely over the top?

    Research helps you nail the market

    One way to understand what a home is worth is to have a pre-purchase valuation. This involved a professional valuer examining the property and arriving at a value based on factors such as the location, size and condition of the home. The catch is that a valuation can cost between $200 to $600. It also takes time to organise and in a fast-moving market, the delay could see you miss out on a property.  

    A cheaper option is to do plenty of your own research. Websites like realestate.com.au or domain.com.au can show the median house and apartment values for individual suburbs. This will give you as good starting point, though as each home is different, you will need to drill down further. 

    Factors that can impact market value

    Some factors can see broadly similar properties have very different market values. Things to watch out for include:

    Bearing all these features in mind, check out recently sold properties like the one you are interested in buying. Pay particular attention to the final sale price, not the asking price. It is the selling price that sets the market. 

    Don’t be afraid to negotiate

    If you have done your homework, you should have a reasonable idea if the asking price of a place is close to the mark or if it is wishful thinking. Remember, you may also have scope to pay less by negotiating on price. Bear in mind though that the longer negotiations take, the greater the danger of someone else jumping in and snatching the property. 

    Get in touch with us about pre-approval

    Give us a call to discuss some of the benefits of home loan pre-approval. It can help you act quickly when you see a home you are interested in buying, and it sets a buying limit so that you can negotiate with confidence. 

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any

    It’s a fair bet that your home loan repayments are one of your biggest household expenses, yet it is surprising how many borrowers haven’t kept up with what their home loan rate currently is. 

    report by Mozo shows that 42% of mortgage holders have no idea what interest rate they are paying on their home loan. And it is an oversight that can cost homeowners dearly.

    How does your loan rate shape up?

    It is not just that a large number of borrowers can’t pinpoint their loan rate. Mozo also found one-in-five homeowners has never compared rates since taking out their loan. 

    Your home loan may have had a competitive rate back in the day, but in a rapidly changing mortgage market, that may no longer be the case. And with the cash rate at its highest since late 2011, there is little room for complacency. 

    For a quick check of how your home loan rate stacks up, head to your latest loan statement to find out what it is. It should show the rate that you are paying, or call us and we will let you know. 

    By way of comparison, the average home loan interest rate for owner-occupiers is currently 6.4% and 6.3% for new home loans, according to the Reserve Bank of Australia

    Why it pays to regularly review your home loan

    Staying on top of your home loan is not just about the rate you pay. Your loan might have been the right choice for you a few years ago, but our lives evolve, and your mortgage may not have the features you need for your current lifestyle and budget. That’s why it is worth taking a close look at your loan at least annually, or whenever you experience a major life change such as starting a new family. 

    Understanding how your home loan is performing for both rate and features is easy. Speak to us about a home loan review. As part of our review, we can let you know:

    Is refinancing right for you?

    If you have been wondering if you could do better on your home loan, give us a call today to discuss your refinancing option. We will 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/or lender. 

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

    There is something very special about moving into a newly built home or putting the finishing touches on a major renovation. Maybe it is the look and feel of new paint and fresh flooring, or just knowing you have kicked a worthwhile goal. 

    Whatever the motivation, plenty of Australians are rolling up their sleeves, with the value of building approvals jumping 14.7% from December 2023 to January 2024. Meanwhile, on the renovation front, we are not just pimping our pads for looks and lifestyle. Almost half the home renovations carried out in 2023 were designed with a ‘green’ focus to improve energy efficiency, according to Houzz Research. 

    The upshot is that planning a new build or renovation can be exciting and rewarding. But long before you kick back and enjoy it, you may need to decide how to pay for it all. And a constriction loan could be the right tool for the job. 

    How do construction loans work?

    Construction loans work a bit differently from regular home loans. Instead of receiving a lump sum from the lender, which is usually the case with a traditional home loan, a construction loan drop feeds funds in line with various stages of the project. 

    If you are building a new home, a lender will typically make progress payments across give main stages:

    1. Laying the slap
    2. Erecting the frame
    3. Reaching lock-up
    4. Fitting out the home, and 
    5. Completion of construction.

    This arrangement can offer valuable advantages. 

    For starters, paying out smaller sums during the construction period may provide a level of protection for the borrower against a building being paid for work that is not completed. In addition, while the project is underway, the loan interest is only calculated on the funds drawn down, not on the final total value of the loan. 

    During the constriction period, you will generally be asked to make interest-only payments. This can be a lot kinder on your budget than principal plus interest payments, especially if you are renting while builders are at work. 

    What to watch for with construction loans

    Building projects do not last forever, and neither do construction loans. When your home or renovation is complete, your construction loan will typically roll into a regular home loan.  

    It can all sound very simple, and usually it is.  However, a key challenge with construction loans is that they are not offered by every lender. 

    It is important to speak to us at an early stage. We can help you identify lenders with construction loan options that meet your needs and budget, plus guide you through the application process. Our support can save you time and leave you free to focus on the project. 

    If you are looking to build or renovate, talk to us about your funding options and we will aim to help you get the ball rolling on your construction project sooner. 

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

    Do you need a home loan in a hurry? You could be in luck. Plenty of lenders are keen to crunch loan approval times, but there is a lot of borrowers can do to potentially speed up the process too.

    Finding a home to buy can take time, and when the right place comes along it can feel as though you need to sign the sale contract fast to stake your claim. But from there, you are going to need a home loan, and that’s where timing becomes critical. 

    The good news for home loan applicants is that average turnaround times have reached new record speeds at some of the bigger banks, while processing periods for smaller lenders have also reduced, according to the latest Broker Pulse Survey. But don’t let that lull you into a sense of complacency. 

    It is important to have your loan ready to go to by settlement, usually six weeks after you have signed and exchanged congrats (however this period of time can potentially be negotiated with the seller). Otherwise, if you don’t have finance sorted by settlement date, the seller may be able to charge interest and penalty fees

    So, there can be a lot riding on getting your home loan approved in a timely fashion. 

    The general rule for loan approval times

    How soon your home loan can be arranged often varies between lenders. Some lenders boldly claim that it can take as little as an hour, but that is not usually the case. 

    To play it safe, allow about four to six weeks from the time you submit your application to have the funds available.

    But if you require funds sooner than that, then it could be a matter of us helping you line up a lender with quicker turnaround times (and then having us hassle them a bit for good measure). 

    What is usually more important is that you focus on the home loan that matches your needs, rather than racing in for a mortgage that can be arranged in record time. 

    5 ways to help speed up the home loan process

    Borrowers can do plenty to try and speed up the loan process. Here are five steps you can take to help keep application and approval times tight:

    1. Talk to us first

    We can explain your borrowing power, let you know how big a deposit you may need, and check if your finances are in the shape it takes to get the green light from lenders. We also have access to resources that estimate how long approval times currently are with potential lenders. 

    2. Get your paperwork together

    Gather all the documents a lender is likely to ask for, including copies of payslips, birth certificates and other ID, plus bank account statements for the past 36 months. If you are unsure, this is a step we can help you with.

    3. Try and hold off on any major changes

    Big life changes, such as starting a new job or business just before you apply for a loan, can leave lenders asking questions. Try to maintain your budget – your usual spending/saving patterns – and your current job, to avoid a ‘please explain’ from lenders, which could delay the loan approval. 

    4. Double-check that you have completed the application accurately

    Any mistakes on your application form can see the paperwork returned to you for corrections, putting the brakes on the whole process. Once again, we can help minimise any potential discrepancies in your application.

    5. Ask us about loan pre-approval

    Waiting until you have paid a deposit to apply for a mortgage can be a high-stakes high-stress strategy. Loan pre-approval is a way to help you speed up the loan application process while also potentially boosting your bargaining power with vendors. 

    Call us today for more tips on getting your loan across the line, we would love to help you move into your new home sooner!

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

    It is commonly known that the bigger your deposit, the smaller your home loan and therefore the lower your monthly repayments. Today we will investigate another way your deposit size could reduce your repayments: by potentially reducing your interest rate. 

    A question we are commonly asked is “How can I get a lower interest rate?”

    There is 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 how big your deposit is, or more technically, your ‘loan to value’ (LVR) ratio. 

    What is LVR?

    LVR refers to how much of your home’s value you are borrowing. 

    If you plan to buy a home priced at $600,000 using a deposit of $120,000, you will need to borrow $480,000 or 80% of the property’s value. For lenders, this means you will 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% 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 do not 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 is a potential rate raving of 0.25%. This may not sound like much, but along with lowering your monthly repayments, a lower rate could mean paying less interest charges over the life of your loan. 

    How your LVR can see you save in other ways

    Your LVR doesn’t just shape the rate you are likely to pay. 

    If you have a small deposit, usually less than 20%, you could be asked to pay lenders mortgage insurance (LMI). This type of cover 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. For example, the First Home Guarantee Scheme allows eligible buyers to purchase a first home with just a 5% deposit and no LMI.

    What if I am refinancing my home loan?

    If you are 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 can we help?

    With so many loans and lenders to choose from, home loan interest rates can vary widely, and 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 is why it is important to speak to us if you are 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.

    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au


    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

    Brokers Help Settle a Record 7 in 10 | Zippy Financial

    Mortgage brokers have notched up a new personal best, with seven out of every 10 new mortgages settled thanks to their help! This is a sure sign that mortgage brokers are delivering the goods when it comes to helping Australians move into their dream homes. 

    According to the latest data from the MFAA, in the nine months to 31 March 2023 (whilst interest rates were rising), mortgage brokers helped settle more than 70% of all new residential home loans.  

    It is 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.  

    Why are more Australian 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 an informed choice with your home loan. And in this environment of higher interest rates, it is 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 is right for you.  

    It does not end there. Here are five more reasons why Australians are turning to brokers for help…  

    1. Brokers to the legwork 

    There are hundreds of home loans to choose from, but who has 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. This lets you sit back, relax and focus on moving into your new home. 

    2. Brokers are flexible 

    You are busy, right? That is why brokers offer flexible appointment times. What to chat after hours? No problem. 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 are 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 will crunch the numbers based on your unique situation. It takes the guesswork out of buying a home and lets you plan ahead. 

    4. There are 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 is because brokers are paid a commission by lenders.  

    Unlike the banks, we are (happily) bound by a best interests duty which means we will 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 will only ever 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 that you will have your home loan for quite a few years. We will 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.  

    Call us today to see why more Australians than ever are partnering with a broker.  

    FAQ

    A: Mortgage brokers have achieved a new milestone by helping settle over 70% of all new residential home loans in the nine months leading up to 31 March 2023.

    A: Australians are increasingly seeking the expertise of mortgage brokers due to their ability to provide informed choices, especially in an environment of rising interest rates, ensuring home loans offer value.

    A: Brokers assist in finding a loan that suits the buyer’s needs, handle the legwork of sorting paperwork, and support the loan application through to settlement, allowing buyers to focus on moving into their new homes.

    A: Brokers offer flexible appointment times and are willing to communicate through various means, including after-hours chats and online consultations, accommodating the busy schedules of their clients.

    A: Brokers provide clear, tailored information based on the client’s unique situation, including details about borrowing power, deposit requirements, and loan repayment scenarios under various conditions.

    A: Surprisingly to many, a broker’s home loan assistance typically comes at no cost to the client, as brokers are paid a commission by the lenders.


    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au

    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilizes her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.

    Connect with Louisa on Linkedin.

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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    In the ever-evolving landscape of the mortgage market, one of the most significant challenges facing borrowers today is the extended turnaround times for home loan processing. Understanding and adapting to these delays is crucial for a successful home loan strategy.

    Current State of Home Loan Turnaround Times 

    Recent trends indicate a noticeable increase in the time it takes for lenders to process and approve home loans. Factors contributing to these longer turnaround times include heightened demand for mortgages, operational constraints among lenders, and the evolving role of technology in the lending process. 

    Impact on Homebuyers and the Property Market 

    Longer turnaround times are creating a ripple effect in the property market. For homebuyers, this means navigating a landscape where securing a property purchase quickly can be challenging. The delays can also contribute to heightened competition and pressure in the property market, potentially affecting property prices. 

    Navigating Challenges in Property Investment

    Mitigating Challenges Through Property Investment Strategies

    Maximizing Property Investment Amid Market Pressures

    Navigating the New Lending Landscape 

    Prospective homebuyers need to be prepared for these extended processing periods. Key steps include: 

    The Role of Technology in Streamlining Processes 

    Technology is playing an increasingly important role in the mortgage application process. Innovative digital solutions are being employed by lenders to streamline applications, though the full integration of these technologies is still a work in progress. 

    Working with Mortgage Brokers 

    In times of extended loan processing, the expertise of mortgage brokers becomes invaluable. They can guide you through the complexities of the application process, manage paperwork, and keep you updated on the status of your application. 

    Preparing for Future Market Changes 

    The mortgage market is dynamic, and turnaround times can fluctuate based on various factors. Staying informed about market trends and being flexible in your home loan strategy can help you navigate these changes effectively. 

    Longer home loan turnaround times require borrowers to be more proactive and strategic in their approach to securing a mortgage. By understanding the current landscape and preparing accordingly, you can enhance your chances of success in the competitive property market. 

    FAQ

    A: Recent trends indicate a noticeable increase in the time it takes for lenders to process and approve home loans, influenced by factors like heightened demand for mortgages, operational constraints among lenders, and the evolving role of technology in the lending process.

    A: Longer turnaround times are creating challenges in the property market, making it difficult for homebuyers to secure property purchases quickly and contributing to increased competition and pressure, potentially affecting property prices.

    A: Homebuyers are advised to engage in strategic property investment, understand market dynamics, and gain insights into price trends and property values to make informed decisions in a competitive market.

    A: By embracing investment-driven decision-making, timing decisions effectively, and managing risks associated with delays, homebuyers can mitigate challenges and capitalize on opportunities.

    A: Technology is increasingly important in the mortgage application process, with lenders employing innovative digital solutions to streamline applications. However, the full integration of these technologies is still in progress.

    A: Mortgage brokers can guide homebuyers through the complexities of the application process, manage paperwork, and keep clients updated on the status of their applications, making their expertise invaluable during extended loan processing times.


    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au

    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilizes her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.

    Connect with Louisa on Linkedin.

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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    Homeowners 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.

    It is no secret that refinancing has the potential to slice a big chunk off your monthly loan repayment. 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 is surprising is that 9 in 10 didn’t. So, what is holding them back?

    Some Score a Discount, Others Don’t

    To be fair, many homeowners have been on the front foot this year. According to Canstar, 1 in 5 homeowners with a mortgage have negotiated a better rate with their current lender. 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 homeowners 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 is why it pays to speak to 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.

    There are too many borrowers wearing higher rates

    The thing is, there are plenty of homeowners who have just copped rising rates without acting. As Canstar puts it: “Too many borrowers remain complacent even in the face of rising repayment costs.”

    The scary thing is that 49% of Australia’s homeowners 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 that refinancing is too hard.

    Busting the myths

    It is great if you think you are paying a competitive interest rate but the key is to know for sure.

    Right now, variable home loan rates are anywhere from 5.69% (very rare) to 9% plus. With that sort of range, there is 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 have a good rate – pick up the phone and call us. If you are worried that refinancing is hard work, rest assured that we will do the bulk of the leg work for you. We will sort through hundreds of home loan options to find the loan that is right for your needs. We will also make the paperwork easy and liaise with your old lender and your new bank.

    If you are keen to find out if you can do better with your home loan, give us a call and we will help you put your best foot forward going into 2024.

    FAQ

    A: Refinancing involves replacing an existing loan with a new one, potentially with better terms or lower interest rates. It can significantly reduce monthly loan repayments, making it a smart financial move for homeowners.

    A: According to Canstar, 1 in 10 mortgage holders in 2023 switched to a new lender to save on their repayments. This trend indicates a growing awareness among homeowners about the benefits of refinancing.

    A: Despite the advantages, 9 in 10 homeowners haven’t refinanced. This could be due to a lack of awareness, perceived complexity of the process, or satisfaction with current rates.

    A: Yes, negotiating a better rate with the current lender is a viable option. Canstar reports that 1 in 5 homeowners successfully negotiated a better rate with their existing lender.

    A: Many homeowners are reluctant to change lenders due to contentment with their current rate or the belief that refinancing is too complicated.

    A: Homeowners can consult with financial experts or mortgage brokers to evaluate if their current interest rate is competitive and explore refinancing options.


    Phone: 1300 855 022
    Email: clientservices@zippyfinancial.com.au

    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

    About the Author:  

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.    

    Connect with Louisa on Linkedin

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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    Maximizing Mortgage Efficiency: The Power of Offset Accounts

    Parental Gurantee

    In today’s dynamic financial environment, understanding and utilizing efficient mortgage strategies is crucial. One such strategy is the use of offset accounts, a tool that can significantly reduce the interest on your home loan and potentially shorten its term. This article delves into what offset accounts are, how they work, and the myriad benefits they offer to homeowners.

    Understanding Offset Accounts

    An offset account is a savings or transaction account linked to your home loan. The balance in this account is ‘offset’ against your home loan balance, meaning you’re only charged interest on the difference. For instance, if you have a home loan of $500,000 and an offset account balance of $50,000, you will only be charged interest on $450,000.

    Benefits of Using an Offset Account 

    The primary advantage of an offset account is the potential savings on interest payments. By maintaining a higher balance in your offset account, you can significantly reduce the amount of interest accrued over the life of your loan. This can also lead to a reduction in the overall term of your mortgage, allowing you to pay off your home loan faster.

    Strategic Use of Offset Accounts

    To maximize the benefits of an offset account, consider depositing your salary and other income directly into it. Additionally, using a credit card for daily expenses and paying it off in full each month can allow your offset account balance to remain higher for longer, thus reducing your interest payments even more.

    Tax Implications and Considerations

    Offset accounts can also have tax benefits. Unlike earning interest on a regular savings account, which is taxable, the money saved on your mortgage interest through an offset account is not considered taxable income. However, it’s important to consult with a tax professional to understand any specific implications for your situation.

    Who Can Benefit the Most? 

    Offset accounts can be particularly beneficial for certain types of borrowers, such as those who may refinance or move homes in the near future. First-time homebuyers and property investors can also find significant value in these accounts, provided they are used strategically.

    Choosing the Right Offset Account 

    When selecting an offset account, consider factors such as account fees, limitations, and whether it is fully or partially offset. It’s also important to ensure that the offset account is compatible with your specific home loan product.

    Considering Account Fees and Charges

    • Annual Fees: Some offset accounts may have annual fees attached. It’s crucial to weigh these fees against the potential interest savings to determine if the offset benefits justify the cost.
    • Transaction Fees: Assess any transaction fees associated with the offset account. While some accounts offer unlimited transactions without charges, others may have limitations or charges beyond a certain threshold.
    • Interest Rates: Explore how the interest rates on the offset account compare to other savings or transaction accounts. A competitive interest rate can contribute to maximizing the offset benefit.

    Understanding Fully vs. Partially Offset

    • Fully Offset Accounts: In a fully offset account, the entire balance offsets against the home loan principal. This means that the interest is calculated on the outstanding loan amount minus the balance in the offset account. This type of offset account provides the maximum potential interest savings.
    • Partially Offset Accounts: A partially offset account offsets only a portion of the account balance against the home loan. This is usually a percentage, such as 50% or 80%. While it still reduces the interest payable, the savings are not as substantial as with a fully offset account.
    • Impact on Interest Savings: Choosing between fully and partially offset accounts depends on your financial goals. Fully offset accounts generally offer greater interest savings but may come with different features and fees.

    Compatibility with Home Loan Product

    • Loan Compatibility: Ensure that the offset account is compatible with your specific home loan product. Different lenders may have variations in how they structure offset accounts, so it’s important to choose one that aligns seamlessly with your mortgage.
    • Accessibility and Integration: Confirm how easily you can access and manage the offset account. Some accounts may offer online banking, mobile apps, and integration with other financial tools for convenient management.
    • Redraw Facilities: Understand if the offset account comes with redraw facilities. This feature allows you to access additional payments made into the home loan, providing flexibility in managing your finances.

    Offset accounts are a powerful tool in the arsenal of any homeowner looking to efficiently manage their mortgage. By understanding and strategically using these accounts, with guidance from a mortgage broker, you can make significant strides in reducing your mortgage term and saving on interest payments.

    Frequently Asked Questions

    What is an Offset Account?

    An offset account is a savings or transaction account linked to your mortgage. The balance in this account is offset daily against your home loan balance, reducing the interest you pay on your mortgage.

    How Does an Offset Account Work?

    The money in your offset account is used to reduce the balance of your home loan for interest calculation purposes. For example, if you have a $300,000 mortgage and $10,000 in your offset account, you’ll only be charged interest on $290,000.

    Can an Offset Account Save Me Money?

    Yes, an offset account can save you money on interest payments, potentially cutting thousands of dollars and years off your home loan.

    Are There Different Types of Offset Accounts?

    Yes, there are full and partial offset accounts. A full offset account offsets 100% of its balance against your loan, while a partial offset account only offsets a portion of its balance.

    Can I Access Funds in My Offset Account?

    Yes, funds in an offset account are usually easily accessible, similar to a regular checking account, providing both flexibility and convenience.

    How Does an Offset Account Compare to Making Extra Repayments?

    Both strategies can reduce interest payments, but an offset account offers more flexibility, as you can access your funds if needed.

    Phone: 1300 855 022

    Email: clientservices@zippyfinancial.com.au

    Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

    About the Author:   

    Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

    Connect with Louisa on Linkedin.   

    Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

    Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

    RELATED ARTICLES 

    SERVICE LOCATIONS

    Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.