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:

Laying the slap
Erecting the frame
Reaching lock-up
Fitting out the home, and
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

About the Author:

Connect with Louisa on Linkedin.

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

Applying for a mortgage when you are self-employed can have you jumping through more hoops, but it does not need to deter you from getting into the property market. Here are 4 tips to help you apply for a mortgage like a boss.

Being your own boss does have its advantages: the flexibility of setting your own hours, building your own business to represent your values, having someone else get you a coffee… but when it comes to home loans, you may have more to prove than the average applicant.

Lenders may view you as a little more risky. That is because, in their eyes, you may not have a steady paycheck to make those all-important repayments. But being self-employed does not need to stop you from getting your slide of the great Australian dream. Planning ahead and knowing what lenders generally look for could give you an edge when it comes to mortgage application success.

Get your finances in order

As a self-employed applicant, having rock-solid finances is important. Even if your business is booming, most lenders will see you as more of a risk for defaulting. That is because self-employed incomes can be less consistent.

Lenders want to know if the likelihood of making regular payments is high. To mitigate risk, loan options available to you may have a lower loan-to-value ratio (meaning you may need a higher deposit) and/or have a higher interest rate.

To prepare to apply, consider getting your finances in check by:

Building up a healthy credit score.
Lowering your living expenses by focusing on the essentials.
Saving up a healthy deposit (aka genuine savings) and cash buffer.
Running your business on accounting software such as Xero, MYOB etc, so that you can provide up-to-date and accurate profit and loss statements.

Gather your documents

It is important to keep your business and personal finance documents up to date. For verification of income, many lenders need two years’ worth of lodged business and personal tax returns.

It is a great idea to tell your accountant in advance that you are planning on applying for a home loan. That is because some of the financial wizardry they apply to lower your tax bill might work against your application and lower your borrowing capacity. Also, keep in mind that business owners who do lots of “cash jobs” can find it harder to obtain a home loan because they have less income to show for their work.

On top of running your credit score, some lenders may want statements from loans and credit cards for proof you can make regular repayments. They may also want to see verification of assets such as any property, savings, and investments.

Some lenders may want to see everything when applying for a loan and some may need less. Some offer low-doc loans if you don’t have extensive documentation, but they may come with higher interest rates or the need to pay lenders mortgage insurance (or both).

Exactly what documents are required depends on the lender and the type of loan.

Choose your lender wisely

Not all lenders are comfortable providing self-employed loans for the reasons mentioned above. And every time you apply for a home loan your credit history is “pinged”. The more this occurs, the more of a red flag this may pose to lenders.

So, targeting lenders that have a track record of approving self-employed loans might be a wise move.

Having a reputable mortgage professional on your side may be helpful here.

Get in touch with us today

Just as you will want to give your accountant plenty of notice, so too will you want to reach out to a mortgage broker sooner rather than later. That is because we can help you work out your borrowing capacity and provide you with other tips that you can start working on that may eventually help make your application more attractive to lenders.

If you are self-employed and think you will be seeking a home loan in 2024, get in touch today!

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

About the Author:

Connect with Louisa on Linkedin.

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

Advanced Strategies to Pay-Off Your Mortgage Sooner

Owning a home is a significant milestone, but the journey doesn’t end with just acquiring property. The next big step is to pay off your mortgage, and the sooner you can do that, the better. Not only does it bring a sense of accomplishment, but it also means financial freedom and peace of mind. If you’re looking for advanced strategies to pay off your mortgage faster, you’re in the right place.

Understanding Your Mortgage

Mortgages might initially seem complex, but at their core, they’re straightforward, revolving around essential elements: the principal amount, the interest rate, and the loan term. Understanding the mechanics of your monthly payments, particularly how much is allocated to the principal versus interest, is vital. This knowledge empowers you to formulate effective strategies on how to pay off your mortgage faster, ultimately reducing the total interest paid over the life of the loan.

Refinancing Your Mortgage

One of the most effective strategies to pay off your mortgage sooner is refinancing. By refinancing, you might secure a lower interest rate, which can lead to shorter loan terms and faster payoff. However, it’s essential to consider the costs associated with refinancing and ensure that the savings outweigh the expenses.

Making Extra Payments

Every dollar counts when it comes to mortgages. Consider making bi-weekly payments instead of monthly ones. This simple change means you’ll make 26 half-payments or 13 full payments in a year, essentially making an extra payment annually. Additionally, rounding up your payments, even by a small amount, can shave off months or even years from your loan term.

Optimal Use of Windfalls and Bonuses

Have you recently received a tax refund or a bonus at work? Rather than succumbing to the temptation to splurge, consider a more financially prudent approach by utilizing these windfalls in the best way to pay off your mortgage. Making a substantial lump-sum payment towards your mortgage can have a profound impact, effectively diminishing your principal balance, and thereby minimizing the long-term interest burden.

Cutting Expenses and Budgeting

Reviewing and optimizing your expenses is a crucial step towards achieving financial stability and securing a brighter future. By identifying areas where you can cut back and making conscious choices, you can free up resources to improve your financial situation.

Analyzing Your Monthly Expenses

Tracking Your Spending: Begin by meticulously tracking your monthly expenses. This includes bills, groceries, entertainment, and any other outlays. Use financial apps or spreadsheets to streamline this process.

Categorizing Expenses: Categorize your expenses into essential (e.g., housing, utilities, groceries) and non-essential (e.g., dining out, entertainment, subscription services). This helps you distinguish where you have flexibility.

Identifying Patterns: Look for patterns in your spending. Are there areas where you consistently overspend? Identifying these can be a first step in reducing costs.

Cutting Back on Non-Essential Expenses

Dining Out Less: Consider cooking more meals at home and reducing the frequency of dining out. This not only saves money but also allows for healthier eating habits.

Cable Cord Cutting: Explore alternatives to expensive cable TV packages, such as streaming services or digital antennas. You can often get the same content at a fraction of the cost.

Subscription Services: Evaluate your subscription services. Are there any that you can do without or replace with more affordable alternatives?

Avoiding Potential Pitfalls

While making extra payments, ensure they go towards the principal amount. Some lenders might apply them to the interest first, so it’s crucial to specify. Also, be aware of any prepayment penalties and always read the fine print of your mortgage agreement.

The Role of Mortgage Brokers

A mortgage broker can be an invaluable resource in your journey to pay off your mortgage sooner. They can provide personalized strategies, insights, and even help you find opportunities for better rates or terms. Regular check-ins with a broker can keep you on the right track.

In conclusion, the dream of paying off your mortgage early is achievable with the right strategies and mindset. Every step you take towards this goal brings you closer to financial freedom and peace of mind.

What are the benefits of paying off my mortgage sooner?

Paying off your mortgage earlier can save you thousands in interest, improve your credit score, and provide peace of mind by eliminating a significant monthly expense.

How can refinancing help in paying off my mortgage faster?

Refinancing can allow you to secure a lower interest rate, which means more of your payment goes towards the principal. Additionally, if you refinance to a shorter-term loan, you’ll pay it off quicker.

How does increasing my monthly payment impact my mortgage term?

By increasing your monthly payment, even slightly, you’ll be paying more towards the principal, which can significantly reduce the overall term of your mortgage.

Are there any penalties for paying off my mortgage early?

Some mortgages have prepayment penalties. It’s essential to check your mortgage agreement or consult with your lender before making extra payments.

Is it a good idea to allocate bonuses or tax refunds towards my mortgage?

Yes, using unexpected income sources like bonuses or tax refunds can be an excellent way to make additional payments on your mortgage without impacting your monthly budget.

How does setting a payoff date goal help in mortgage repayment?

Setting a specific payoff date can motivate you to stay disciplined in your repayment strategy and make necessary adjustments to meet that goal.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

SERVICE LOCATIONS

Why Home Loan Turnaround Times Are About to Blow Out Further

One of the biggest mortgage challenges that bubbled up during COVID-19 was the blowout in banks’ turn-around times. While most lenders were previously able to process and approve loans in several days to a couple of weeks, many of their processing times blew out to weeks and weeks – and for some banks, the turnaround time stretched on for months.

That bad news? These challenges are set to continue. With so many banks’ putting an end to pre-approvals, it’s putting extra pressure on other lenders, who can’t keep up with the demand.

As mortgage brokers, we do our best to help our clients navigate these choppy times, but it can be really volatile. We put a home loan deal forward to a bank recently and after submitting, this particular bank stopped taking applications, because they are at capacity in terms of being able to process loans.

Even though we submitted the deal before they announced this temporary cut off, they have refused to assess the deal. This is obviously really frustrating for the borrower, but it also makes us look really unprofessional in front of our client.

Add to this the fact that many banks have support staff based in India, in the grips of a harrowing COVID-19 outbreak, and it’s causing extra delays and dramas across the industry.

Why are home loan turnaround times expected to increase further?

The home loan turnaround times are expected to increase further due to the ongoing impacts of the COVID-19 pandemic, increased loan applications, and the extensive verification processes lenders are implementing to ensure borrowers can service their loans.

How has the COVID-19 pandemic affected home loan processing times?

The COVID-19 pandemic has led to a surge in home loan applications due to low-interest rates, causing a backlog in processing. Additionally, lenders are exercising more caution, implementing extensive verification processes to assess borrowers’ ability to service loans, contributing to longer turnaround times.

What are lenders focusing on during the home loan application process?

Lenders are focusing on extensive verification processes to assess borrowers’ financial stability and ability to service loans. They are scrutinizing income, expenses, employment stability, and existing debts to ensure that borrowers can manage repayments even if circumstances change.

How can prospective homebuyers prepare for longer home loan turnaround times?

Prospective homebuyers can prepare by maintaining a stable employment history, having a clear understanding of their financial situation, reducing existing debts, and ensuring all required documentation is accurate and readily available to avoid any delays in the application process.

Are there any strategies to expedite the home loan application process?

Yes, having a clear understanding of your financial situation, maintaining a stable employment history, reducing existing debts, and ensuring all required documentation is accurate and readily available can help in expediting the home loan application process. Additionally, working with experienced mortgage brokers like Zippy Financial can provide guidance and support throughout the application process.

How does Zippy Financial assist clients in navigating through extended home loan turnaround times?

Zippy Financial assists clients by providing expert advice and guidance throughout the home loan application process. They help clients understand their financial situation, prepare necessary documentation, and liaise with lenders to ensure a smooth and efficient application process, mitigating the impacts of extended turnaround times.

We are dealing with an environment that is constantly changing, and if we, who are in the industry are finding it confusing and challenging, I can only imagine how borrowers feel! If you are concerned about your home loan, need advice or you are having trouble working out your next steps, we are on hand to help as much as possible. Contact our team of experienced brokers today on 1300 855 022 for a chat about how we can help you move forward.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

SERVICE LOCATIONS

Strategies on How to Save $500+ Per Month | Zippy Financial

In an era where managing average expenses per month can be challenging, finding ways to save money is more important than ever. Whether it’s cutting down on daily expenditures or reducing the average mortgage in Australia per month, there are several strategies you can implement to save over $500 each month.

Understanding Your Financial Health

The first step in saving money is understanding where it goes. Start by tracking your income and expenses. Categorize your spending and identify areas where you can cut back. This will give you a clear picture of your financial health and help you make informed decisions.

Smart Budgeting Techniques

Effective budgeting is crucial for financial success. Consider adopting the 50/30/20 rule, where 50% of your income goes to necessities, 30% to wants, and 20% to savings. Alternatively, try zero-based budgeting, where every dollar is allocated to specific expenses, savings, or debt repayment.

Reducing Household Expenses

Look at your household expenses and find ways to reduce them. Simple changes like switching to energy-efficient appliances, buying groceries in bulk, and meal planning can significantly lower your monthly bills.

Negotiating and Shopping for Better Deals

Don’t hesitate to negotiate your bills. Contact service providers for better deals on utilities, insurance, and phone plans. Use comparison websites to find the best rates and switch providers if necessary.

Debt Consolidation and Refinancing

If you have multiple debts, consider consolidating them into a single loan with a lower interest rate. This can reduce your monthly repayments and save you money in the long run. Refinancing your mortgage can also lower your average mortgage in Australia per month, freeing up more money for savings.

Strategic Approaches to Debt Consolidation and Refinancing

Assessing the Landscape of Multiple Debts: Begin by conducting a comprehensive assessment of your existing debts. This includes credit cards, personal loans, and other outstanding balances. Understanding the types of debts, their interest rates, and repayment terms lays the foundation for an effective debt consolidation strategy.
Consolidation for Financial Planning: Integrate debt consolidation into your broader financial planning. Align this strategy with your overall financial goals, whether they involve saving for a major purchase, building an emergency fund, or initiating property investment. Consolidating debts strategically contributes to a more robust and focused financial plan.
Interest Rate Considerations: Emphasize the significance of interest rates in the consolidation process. Seek opportunities to consolidate debts at lower interest rates, as this not only reduces the total interest paid over time but also aligns with the goal of optimizing financial resources for property investment or other long-term objectives.

Exploring Mortgage Refinancing for Property Investment

Understanding Mortgage Refinancing: Provide clarity on the concept of mortgage refinancing. Explain how refinancing involves replacing an existing mortgage with a new one, often with better terms such as a lower interest rate. Emphasize that this financial maneuver can significantly impact the average monthly mortgage payment, creating opportunities for property investment.
Unlocking Savings for Investments: Highlight the role of mortgage refinancing in unlocking savings for property investment. By securing a lower interest rate through refinancing, homeowners can redirect the freed-up funds towards property investments. This proactive approach aligns with the wealth-building aspect of property ownership.
Long-Term Vision for Property Investment: Encourage a long-term vision when considering refinancing for property investment. Emphasize that the benefits of refinancing extend beyond immediate savings, creating a financial environment conducive to sustained property investment. This aligns with the wealth accumulation potential that well-timed refinancing can offer.

Maximizing Income Streams

Boosting your income is another way to save more money. Look for side hustles, freelance opportunities, or part-time jobs. Consider investing in stocks or mutual funds for additional income.

Long-Term Savings Strategies

Focus on long-term savings strategies like optimizing your superannuation, investing in a diverse portfolio, and setting up an emergency fund. These steps can secure your financial future and help you save consistently.

Utilizing Technology for Financial Management

Leverage technology to manage your finances better. Budgeting apps and online tools can help track your spending, set savings goals, and monitor your progress.

Saving $500 or more per month is achievable with the right strategies and discipline. By understanding your finances, budgeting smartly, reducing expenses, and maximizing income, you can improve your financial health and save a significant amount each month.

FAQ

A: Creating a budget is crucial for understanding your spending habits. By going through your bank statements, you can identify areas where you might be spending unnecessarily and can cut back.

A: Shopping around for better deals on your household bills like electricity, gas, and insurance can help you save a significant amount of money each month. You can either negotiate with your current providers or switch to new ones offering better deals.

A: If you have multiple debts, consider refinancing to bundle your loans together. This can reduce your monthly repayments and the interest you pay.

A: If you have multiple superannuation accounts, you’re likely paying extra fees. Consolidating them into a single account can save you money now and increase your future wealth due to the power of compound interest.

A: If your income hasn’t been affected by financial downturns, consider banking any savings you make from these strategies. This can help you build a “rainy day” fund for future needs.

A: Zippy Financial offers expert assistance to guide you towards a brighter financial future. They can help you save money on household bills and navigate challenging financial times with confidence.

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

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).

Affordable Elegance Transform your Home | Zippy Financial

Affordable Elegance: Transform Your Home Under $2,000
.

7 Tips for Investing on a Small Income
.

First Home Buyers Build | Zippy Financial

First Home Buyers Build $82,000 in Equity with Minimal Deposit

Despite the soaring costs of living and successive interest rate hikes, homebuying intentions have climbed, as shown by the latest data. So why are so many people still chasing the great Australian dream? And what can you do to make your own dream a reality?

Despite a flurry of rate rises, new data shows home ownership is again a top priority for many Australians, with the number of house hunters increasing.

Commonwealth Bank’s Household Spending Intentions Index showed a strong 14.4% increase in homebuying intentions in May, after dropping in April. May also saw new home sales increase across Australia for the second month in a row.

So, what’s driving this appetite for property when finances are increasingly tight for many? And how can you boost your own chances of cracking the market sooner?

Rental Squeeze

Across capital cities and major regional areas, there have been historic rental price increases and low vacancies.

Rental vacancies reached an all-time low of 1.1% in April, with the median price for renting a unit only $39 a week cheaper than renting a house. Rising overseas migration has contributed to stiff competition in the rental space too. In the March quarter, there was a 124% jump in rental enquiries year from one overseas country alone.

Understandably, many are looking to escape renting and grab their spot on the property market. But with rate hikes and inflation, saving a deposit is no easy task for many Australians.

Here are some ways to take the pressure off.

Schemes and Grants to Save Time and Money

There are many government schemes and grants designed to help you get into the market, and all can be used simultaneously, which can really bring in savings!

Through the N ational Housing Finance and Investment Corporation, the federal government has three low deposit, no lenders mortgage insurance (LMI) schemes available for eligible first-home buyers, regional first-home buyers and single parents.

The First Home Guarantee and Regional First Home Guarantee support eligible buyers to purchase a home with a 5% deposit. And the Family Home Guarantee assists eligible single parents to buy with a 2% deposit.

By not paying LMI, you can save anywhere between $4,000 and $35,000, depending on the property price and your deposit amount, which can fast-track your first home-buying goal by four and five years.

Another home-buying cost that can have a real sting in its tail is stamp duty.

Fortunately for first-home buyers though, state governments have stamp duty concessions available, including South Australia, which announced that it was scraping the tax for first home-buyers on new homes valued up to $650,000.

Meanwhile, Victoria, New South Wales, Queensland, Western Australia, Tasmania, the ACT, and the Northern Territory also offer stamp duty concessions. If eligible, this can either eliminate or reduce the cost of stamp duty.

Most state governments also offer first homeowner grants to help you get the keys to your own home.

Victoria, New South Wales, Queensland, Western Australia, Tasmania, Northern Territory and South Australia all offer first homeowner grants. If eligible, you could receive a grant of between $10,000 and $30,000 depending on your state and other eligible criteria.

Why is homeownership soaring despite the rising costs of living?

Despite the increasing costs of living and interest rate hikes, the number of people looking to buy homes has risen. The article suggests that the desire to escape the struggles of renting and the availability of government schemes and grants are driving this trend.

What challenges are renters facing that make them consider buying a home?

Renters are experiencing historic rental price increases and low vacancies in capital cities and major regional areas. These challenges are pushing many to consider buying their own homes.

How can government schemes and grants help potential homebuyers?

Government schemes and grants can significantly help potential homebuyers by saving them time and money. For example, not paying LMI (Lender’s Mortgage Insurance) can save between $4,000 and $35,000, depending on the property price and deposit amount. This can fast-track the home-buying process by four to five years.

What is the role of stamp duty in the home-buying process?

Stamp duty is another cost that potential homebuyers need to consider. However, state governments offer stamp duty concessions for first-home buyers, which can make the process more affordable.

How can Zippy Financial help me in the home-buying process?

Zippy Financial can help you understand your borrowing power, loan options, and eligibility for various schemes and grants. They can guide you through the entire process, making it easier for you to buy your dream home.

Give Us a Call

It is important to note that spots for some of these schemes are limited. And they are popular, so it’s best to get in quick.

If you’d like to kick renting to the curb, get in touch with us today. We will help you work out your borrowing power, and your loan options, and factor in what schemes you may be eligible for.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

SERVICE LOCATIONS

It Pays for Financial Planners and Brokers to Work Together

Recently, I sat across from a client who had a casual $2 million sitting in his bank account. That’s right – two million dollars, just languishing in an ordinary bank account, not achieving very much.

He wasn’t investing in the stock market. He wasn’t contributing extra to his super. And the only property he owned was the home he and his family were living in.

Can you imagine? He had $2 million just sitting in the bank; that is known as dead money. With interest rates in the toilet and so many better options out there he could be using to grow his wealth, this seemed like such a wasted opportunity to me.

He may as well have had it stuffed underneath his mattress!

Of course, I knew that I had to get him in front of a great financial planner, pronto.

Optimizing Financial Success: When Planners and Brokers Team Up

This is something that comes up quite a lot for me as a finance broker. I’m not qualified or certified to give money advice, so in these situations, I always refer my clients to a reputable financial planner.

As a broker, all my clients require adequate TPD and income protection insurance, and most of them have no idea how to get it, what products are available or why they even need it in the first place.

So, virtually every borrower I meet needs the aide of a financial planner to navigate this. Not to mention those clients whose expenses are holding back their borrowing power, or those who have no clue how to best structure their finances to take advantage of tax breaks and other incentives.

If I can refer these clients to a planner I know and trust to take care of these needs, not only does that planner benefit from a new client, but I’m also able to offer a greater variety of products to the client and possibly write them a larger loan.

It’s a win for the client, who moves towards a better financial position as a result of the advice, and a win for the financial advisor, who builds new business… which is why it blows my mind that more financial planners and brokers don’t collaborate. The benefits for all parties involved can be huge!

Accordingly, for planners, taking on new clients means loads of information gathering as you get to grips with the state of their finances and their short and long-term goals. In the process, of course, you will tally up their current debt and how this will factor in your planning.

This is the ideal opportunity to hand over to a broker, who can help with refinancing said debt at a more attractive rate, or recommending a product with inclusions that will better fit their goals. When they arrive back at your office with more manageable monthly debt repayments and the spare cash that’s been freed up through refinancing, they’ll be better able to implement your suggestions and the financial planner can take care of their insurance needs.

In my mind, a savvy planner is one who looks for debt first, as this is an area where substantial savings can be made without any real changes to the clients’ lifestyle or goals. Clients are more willing and able to commit to these painless adjustments than they might be to a strict budget, and if they’re happier, they’ll refer more friends, family and colleagues to the professionals who have helped them.

The cross-collaboration opportunities don’t stop there. In our increasingly online environment, working together allows financial planners and brokers to boost our social media engagement, grow our LinkedIn presence, and get more visits on our websites – all of which can lead towards more enquiries, more referrals, and more clients.

It’s essentially free advertising. For instance, I might share and promote a great blog written by a planner colleague of mine, and in turn, he’ll do the same with my most recent article. We’ll comment on each other’s updates and congratulate each other on accolades and awards, like my recent Broker of the Year and Customer Service of the Year wins at the Momentum Media Australia Business Awards. All of this serves to build our reputations and credibility in the eyes of potential and existing clients.

And all the while, we are increasing our online visibility and driving more and more traffic, enquiries and commissions.

What do you think? Are you a planner who can see the value in collaborating with an experienced broker – or perhaps you’re a broker who never realised just how complementary the two professions are? If so, maybe it’s time to start hitting up your connections and see where it takes you both.

Why is it beneficial for financial planners and brokers to collaborate?

Financial planners and brokers can mutually benefit from collaboration. Planners can refer clients to brokers for loan products and refinancing, while brokers can refer clients to planners for financial advice and insurance needs. This creates a win-win situation for both professionals and the client.

What are the advantages for clients when financial planners and brokers work together?

Clients benefit from a more comprehensive financial strategy. They can receive advice on insurance, tax breaks, and other financial products, while also getting help with loan products and refinancing options. This holistic approach helps clients optimize their financial situation.

How does collaboration between financial planners and brokers affect their online presence?

Collaboration can boost both professionals’ online visibility. They can share and promote each other’s content on social media platforms, thereby increasing traffic, enquiries, and commissions. This essentially acts as free advertising for both parties.

What is the role of a financial planner in this collaboration?

The financial planner gathers information about the client’s financial state and goals. They can then refer the client to a broker for refinancing existing debt at more attractive rates, which frees up cash for implementing the planner’s suggestions.

What is the role of a broker in this collaboration?

The broker can offer a variety of loan products to the client, possibly writing them a larger loan based on the financial planner’s advice. They can also help with refinancing existing debts, enabling the client to better implement the financial planner’s suggestions.

How can clients find a financial planner and broker who collaborate?

Clients can contact Zippy Financial for a comprehensive financial service that includes both planning and brokering. This ensures that they don’t miss out on any opportunities to optimize their financial situation.

Contact Us

Don’t miss this golden opportunity! Contact Zippy Financial today and let us cater to your financial needs. Don’t let your money go to waste – take action now and unlock the potential of your wealth!

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

SERVICE LOCATIONS

Financial Freedom: Refinancing Options for Mortgage Relief

In today’s fluctuating financial landscape, understanding your refinancing options, including personal loan option, is key to achieving mortgage relief and financial freedom. With various loan refinancing options available, homeowners can find ways to better manage their mortgage commitments, adapt to market changes, and potentially save money.

Current Mortgage Market Overview

The current mortgage market is marked by changing interest rates and evolving lending criteria. These shifts can significantly impact homeowners’ monthly payments and overall financial health. Staying abreast of these changes is crucial for making informed decisions about mortgage refinancing.

Understanding Mortgage Prison

‘Mortgage prison’ refers to a situation where homeowners are unable to refinance due to decreased borrowing power, often caused by rising interest rates and stricter lending standards. This can lead to higher-than-necessary repayments and financial strain.

Comprehensive Guide to Refinancing Options

Refinancing options for homeowners include:

Rate-and-Term Refinancing:

This option involves adjusting the interest rate, loan term, or both. It’s ideal for those looking to benefit from lower interest rates or to change the term of their loan.

Cash-Out Refinancing:

This allows homeowners to refinance for more than they owe and take the difference in cash. It’s useful for those needing funds for home improvements, debt consolidation, or other significant expenses.

Government-Backed Refinancing Programs:

These programs are designed to help those with government-backed loans to refinance under more favorable terms.

Strategies to Improve Refinancing Eligibility

Improving your refinancing eligibility can involve several strategies, such as enhancing your credit score, reducing your debt-to-income ratio, and understanding specific lender requirements. These steps can increase your chances of qualifying for better refinancing terms.

Negotiating with Current Lenders

Negotiating with your current lender can be a viable option. This might involve discussing rate reductions, repayment holidays, or other flexible terms that can provide temporary relief or long-term benefits.

The Role of Mortgage Brokers in Refinancing

Mortgage brokers can be invaluable in navigating the refinancing process. They can offer insights into the best refinancing options for your situation, assist with rate comparisons, and manage negotiations and paperwork on your behalf.

Long-Term Financial Planning and Mortgage Management

Effective mortgage management involves long-term financial planning. This includes preparing for potential interest rate changes and understanding how market dynamics can affect your mortgage in the future.

Strategic Elements of Long-Term Mortgage Management

Interest Rate Forecasting: Delve into the importance of interest rate forecasting in long-term mortgage planning. Assess historical trends and economic indicators to make informed predictions about potential interest rate changes. This foresight allows homeowners to anticipate adjustments in their mortgage payments and strategically plan for financial fluctuations.
Market Dynamics Analysis: Explore the role of market dynamics in shaping mortgage management strategies. Understand how broader economic conditions, housing market trends, and regional factors can impact the long-term viability of a mortgage. Analyzing these dynamics empowers homeowners to adapt their financial plans based on the evolving real estate landscape.
Loan Term Adjustments: Discuss the consideration of loan term adjustments in long-term planning. Evaluate the feasibility of refinancing or adjusting the loan term to align with changing financial goals. This strategic approach ensures that homeowners have flexibility in managing their mortgage over an extended period.

Mitigating Financial Risks in Mortgage Management

Emergency Fund Establishment: Emphasize the role of an emergency fund in mitigating financial risks. Long-term mortgage management should include the establishment and maintenance of an emergency fund. This financial cushion serves as a safety net, helping homeowners navigate unforeseen expenses or income disruptions without jeopardizing mortgage obligations.
Insurance Coverage Review: Highlight the importance of periodically reviewing insurance coverage. Homeowners should reassess their insurance policies to ensure they provide adequate protection against unforeseen events such as job loss, disability, or property damage. Comprehensive coverage acts as a risk mitigation strategy in long-term mortgage planning.
Diversification of Investments: Discuss the benefits of diversifying investments to spread financial risks. Long-term mortgage management goes hand in hand with a diversified investment portfolio. By spreading investments across different asset classes, homeowners can build resilience against market fluctuations and enhance overall financial stability.

Exploring refinancing options for mortgage relief is a crucial step towards financial freedom. With the right approach and guidance, you can find a refinancing solution that aligns with your financial goals and provides relief in times of need.

What are refinancing options for mortgage relief?

Refinancing options for mortgage relief include rate-and-term refinancing, cash-out refinancing, and government-backed refinancing programs, each designed to address different financial needs and goals of homeowners.

How can rate-and-term refinancing help homeowners?

Rate-and-term refinancing can help homeowners by adjusting their mortgage’s interest rate and term, potentially leading to lower monthly payments or a shorter loan duration.

What is cash-out refinancing and when is it beneficial?

Cash-out refinancing allows homeowners to refinance for a higher amount than they owe and receive the difference in cash. It’s beneficial for those needing funds for significant expenses like home renovations or debt consolidation.

Who can benefit from government-backed refinancing programs?

Homeowners with government-backed loans can benefit from these programs, which often offer more favorable refinancing terms, especially for those facing financial challenges.

Are there any risks associated with refinancing a mortgage?

Yes, risks include potential fees, extending the loan term, and in the case of cash-out refinancing, increasing the loan amount. It’s important to weigh these against the potential benefits.

Should I refinance my mortgage in response to market changes?

Deciding to refinance in response to market changes depends on your financial situation, goals, and how the changes impact your current mortgage. Consulting with a financial advisor or mortgage broker can help in making this decision.

Get in Touch

If you are stuck in mortgage prison and you have explored these options to no avail, a mortgage broker may be able to create a strategy and a roadmap that could allow you to finance in 6 to 12 months’ time.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

SERVICE LOCATIONS

Opportunities for First Home Buyers Amid Rising Property Prices

In an era where property prices are continuously on the rise, navigating the real estate market has become increasingly challenging, especially for first-time homebuyers. This article explores the current landscape of property prices in Australia and offers strategic insights for those looking to make their first foray into property investment and homeownership.

Understanding the Market Dynamics

The surge in property prices is influenced by a variety of factors, including economic growth, interest rates, and market demand. In Australia, the property market has seen significant growth, making it daunting for first-time buyers to find affordable options. Understanding these dynamics is crucial in making informed decisions.

Government Support and Incentives

To assist first-time buyers, the Australian government has introduced several schemes, such as the First Home Guarantee. These initiatives aim to make homeownership more accessible by offering financial support and incentives. It’s important for potential buyers to stay updated on these opportunities and understand how they can benefit from them.

Alternative Strategies for Homebuyers

With property prices soaring, considering alternative strategies becomes essential. One approach is exploring more affordable regions or suburbs, where property prices may be more within reach. This shift can open up new possibilities for homebuyers who are willing to look beyond their initial preferences.

Financial Planning and Mortgage Considerations

Effective financial planning is key in the context of rising property prices. Prospective buyers should focus on securing favorable mortgage terms and understanding the long-term implications of their financial commitments. Seeking pre-approval for a mortgage can also provide a clearer picture of what is financially feasible.

Securing Favorable Mortgage Terms

Creditworthiness and Interest Rates: Prioritize improving your creditworthiness to secure more favorable interest rates. A higher credit score often translates to lower interest rates on your home loan. Regularly monitor your credit report, address any discrepancies, and take steps to enhance your credit profile before applying for a mortgage.
Down Payment Strategies: Strategize your down payment approach. While a 20% down payment is a common benchmark, explore options that align with your financial circumstances. Down payment assistance programs, government-backed loans, and other creative approaches can provide flexibility in meeting down payment requirements.
Professional Mortgage Advice: Engage with mortgage brokers and financial advisors for professional guidance. Mortgage brokers can help you navigate the myriad of loan options, negotiate with lenders, and secure competitive terms. Financial advisors contribute by aligning your mortgage decisions with broader financial goals.

The Strategic Role of Pre-Approval

Clarity on Financial Feasibility: Seeking pre-approval for a mortgage is a strategic step in gaining clarity on what is financially feasible. It involves a thorough assessment of your financial background by a lender, providing you with a clear picture of the loan amount you qualify for. This knowledge empowers you to narrow down your property search within your budget.
Enhanced Negotiation Power: Pre-approval enhances your negotiation power. Sellers often prioritize offers from buyers with pre-approved financing, as it indicates a serious intent and the ability to secure the necessary funds. This can be a decisive factor in competitive real estate markets.
Streamlining the Home-Buying Process: The pre-approval process streamlines the overall home-buying process. With a pre-approved mortgage, you can move quickly when you find the right property, potentially gaining a competitive edge over other buyers who may still be in the early stages of securing financing.

Proactive Adaptation to Market Dynamics

Monitoring Interest Rate Trends: Stay vigilant about interest rate trends. With rising property prices, even slight changes in interest rates can impact affordability. Regularly monitor market conditions and consider locking in your interest rate when it aligns with your financial objectives.
Flexibility in Home Search: Maintain flexibility in your home search. Be open to exploring different neighborhoods, property types, and sizes to find options that align with your budget. Flexibility allows you to adapt to market dynamics and make well-informed decisions.
Regular Financial Check-ins: Conduct regular financial check-ins, especially in the context of rising property prices. Assess your financial goals, review your budget, and adjust your financial plan as needed. Regular evaluations empower you to proactively adapt to changing market conditions.

Long-Term Investment Perspective

Despite the current high property prices, real estate remains a valuable long-term investment. The market’s historical trend of growth suggests that investing in property can yield significant returns over time. Therefore, buyers should consider the long-term benefits of entering the market now, despite the high entry costs.

The rise in property prices in Australia presents both challenges and opportunities for first-time homebuyers. By staying informed, exploring government incentives, considering alternative locations, and planning finances carefully, prospective buyers can navigate these challenges successfully. The key is to approach the market with a strategic mindset and a long-term investment perspective.

What are the current trends in property prices in Australia?

Property prices in Australia have been on a steady rise, influenced by factors like economic growth and market demand.

How can first-time homebuyers navigate the rising property prices?

First-time homebuyers can navigate rising prices by staying informed, exploring government incentives, considering alternative locations, and planning their finances carefully.

What government schemes are available to assist first-time homebuyers in Australia?

The Australian government offers several schemes, such as the First Home Guarantee, to make homeownership more accessible for first-time buyers.

Is it a good idea to look for properties in more affordable regions?

Yes, exploring more affordable regions or suburbs can be a strategic move for homebuyers facing high property prices in their preferred areas.

How can first-time buyers stay updated on opportunities and market changes?

Staying in touch with real estate experts, financial advisors, and regularly following market news and updates can help buyers stay informed.

What alternative strategies can be considered apart from buying in different locations?

Other strategies include looking into different types of properties, considering joint ownership, or exploring rent-to-own options.

Can first-time homebuyers benefit from consulting with financial advisors or real estate experts?

Yes, consulting with financial advisors or real estate experts can provide personalized advice and guidance, helping buyers make the most of the current market conditions.

Get in touch

Looking for financial solutions amidst rising property prices? Contact Zippy Financial today to explore support schemes and overcome the challenges faced by first home buyers.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

About the Author:

Connect with Louisa on Linkedin.

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

Advanced Strategies to Pay-Off Your Mortgage Sooner

Understanding Your Mortgage

Refinancing Your Mortgage

Making Extra Payments

Optimal Use of Windfalls and Bonuses

Cutting Expenses and Budgeting

Analyzing Your Monthly Expenses

Cutting Back on Non-Essential Expenses

Avoiding Potential Pitfalls

The Role of Mortgage Brokers

Frequently Asked Questions

What are the benefits of paying off my mortgage sooner?

How can refinancing help in paying off my mortgage faster?

How does increasing my monthly payment impact my mortgage term?

Are there any penalties for paying off my mortgage early?

Is it a good idea to allocate bonuses or tax refunds towards my mortgage?

How does setting a payoff date goal help in mortgage repayment?

RELATED ARTICLES

SERVICE LOCATIONS

Why Home Loan Turnaround Times Are About to Blow Out Further

Frequently Asked Questions

Why are home loan turnaround times expected to increase further?

How has the COVID-19 pandemic affected home loan processing times?

What are lenders focusing on during the home loan application process?

How can prospective homebuyers prepare for longer home loan turnaround times?

Are there any strategies to expedite the home loan application process?

How does Zippy Financial assist clients in navigating through extended home loan turnaround times?

RELATED ARTICLES

SERVICE LOCATIONS

Understanding Your Financial Health

Smart Budgeting Techniques

Reducing Household Expenses

Negotiating and Shopping for Better Deals

Debt Consolidation and Refinancing

Strategic Approaches to Debt Consolidation and Refinancing

Exploring Mortgage Refinancing for Property Investment

Maximizing Income Streams

Long-Term Savings Strategies

Utilizing Technology for Financial Management

FAQ

About the Author:

RELATED ARTICLES

Australian Homeownership Soars: Escaping Rental Struggles

Rental Squeeze

Schemes and Grants to Save Time and Money

Frequently Asked Questions

Why is homeownership soaring despite the rising costs of living?

What challenges are renters facing that make them consider buying a home?

How can government schemes and grants help potential homebuyers?

What is the role of stamp duty in the home-buying process?

How can Zippy Financial help me in the home-buying process?

Give Us a Call

RELATED ARTICLES

SERVICE LOCATIONS

It Pays for Financial Planners and Brokers to Work Together

Optimizing Financial Success: When Planners and Brokers Team Up

Frequently Asked Questions

Why is it beneficial for financial planners and brokers to collaborate?

What are the advantages for clients when financial planners and brokers work together?

How does collaboration between financial planners and brokers affect their online presence?

What is the role of a financial planner in this collaboration?

What is the role of a broker in this collaboration?

How can clients find a financial planner and broker who collaborate?

Contact Us

RELATED ARTICLES

SERVICE LOCATIONS

Financial Freedom: Refinancing Options for Mortgage Relief

Understanding Mortgage Prison

Comprehensive Guide to Refinancing Options

Rate-and-Term Refinancing:

Cash-Out Refinancing:

Government-Backed Refinancing Programs:

Strategies to Improve Refinancing Eligibility

Negotiating with Current Lenders

The Role of Mortgage Brokers in Refinancing

Long-Term Financial Planning and Mortgage Management

Strategic Elements of Long-Term Mortgage Management

Mitigating Financial Risks in Mortgage Management

Frequently Asked Questions

What are refinancing options for mortgage relief?