Month In Review - June
Welcome to the June monthly update. A quick snapshot of what's been happening in the finance and mortgage worlds over June. Helping you keep up to date with what's been happening.
Interest Rate Update
Here are some of the leading Interest Rates in June. To find out if you qualify contact us today.
RBA cash rate
The RBA cash rate has remained at 0.25% - Read the full Monetary Policy Decision HERE
$25k HomeBuilder Grant
A hot topic this month as we start to get more guidance on how the schemes rolling out. While the $25k HomeBuilder grant can be used towards your deposit we are starting to see some (not all) of the lenders reject it for use towards your 5% genuine savings goal.
So in summary you would still need to have saved your 5% deposit via genuine means. We are still awaiting clarification from most lenders around this so keep your eyes peeled for more guidance in the coming weeks. Our best advice is to seek guidance from a broker now who will be able to clarify in more detail if you qualify and how this could affect your current situation.
HomeBuilder Fact Sheet - HERE
HomeBuilder FAQ - HERE
The First Home Loan Deposit Scheme (FHLDS)
Good News! Another 10,000 places have been released starting from 1st July, 2020.
FHLDS is a government guarantee which will secure the mortgages of some low and middle income earners with a deposit of as little as 5% of a property’s value without having to pay Lender’s Mortgage Insurance.
For more information around the Grant click HERE
Early Super Access - With a big rise in people withdrawing money from their Super under the Covid-19 early release scheme there may be some consequences if you’ve taken money while not generally in Financial Hardship. One of these consequences could be a fine of more than $12,000. Most lenders will also not let you use this money towards your Genuine Savings. If your considering or already have accessed your Super we highly recommend you sort Financial Advice or talk to us first if your thinking of using it as part of your deposit. Click HERE for more information
Mortgage Payment Holiday - If you’ve been affected by Covid-19 and need to freeze your mortgage payments to help with your cash flow, it’s good news. Most lenders will offer you up to a 6 month payment holiday. Don’t forget though that any payment holiday taken either gets added into your loan which means you will likely see your monthly payments increase after the payment holiday or it will get added onto the length of your loan.
Although this may help in the short term don’t forget that you still need to make up the payments missed. It’s estimated that taking the full 6 month holiday will cost you around $11,000 in extra repayments due to the added interest. Contact your lender for more information. Contact details HERE.
If you would like to find out more information on any of the above topics or would like to see how we can help you with your mortgage Contact us for more information.
WARNING: The contents of this communication are not designed to replace credit advice. We have not taken into account your needs, objectives or financial situation. The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. The comparison rate is calculated on a $150,000 secured loan over a 25 year term.