Month In Review - July
Updated: Nov 18
Welcome to the July monthly update. A quick snapshot of what's been happening in the finance and mortgage worlds over July.
Interest Rate Update
Here are some of the market leading Interest Rates as of 30th July 2020
To find out if you qualify for any of the above rates contact us today.
RBA cash rate
The RBA cash rate has remained at 0.25% - Read the full July Monetary Policy Decision HERE
$25k HomeBuilder Grant
Still a hot topic from last month and very much in the spotlight with a lot of interest from First Home Buyers. Lenders are also reporting a high amount of interest with waiting lists growing by the day. It is expected that an online application form will be available in early August. If you're thinking of taking advantage contact us today to try and secure your spot.
HomeBuilder Fact Sheet - HERE
HomeBuilder FAQ - HERE
It's not all bad news out there
- First Home Buyers in NSW received some good news as temporary adjustments to stamp duty have come into effect. Under the changes, no stamp duty will be charged on new homes for FHBs below $800,000 in value, up from the former $650,000. Stamp duty relief will also apply, on a scaled basis, to newly built homes valued between $800,000 and $1 million, as well as to vacant land worth up to $400,000. The adjustments will not apply to existing homes, only newly-built dwellings and vacant land, and they are scheduled to last for a 12-month period, starting 1 August 2020.
- Lenders are looking to bring their overseas support teams back into Australia. Westpac is the first to announce that they will be providing 1,000 new roles supporting Westpac’s call centers, as well as providing processing and operational assistance to functions like home lending and consumer finance. Hopefully we will see the other lenders follow suit which will help speed up the home loan application time. Read more on it HERE
- The JobSeeker and JobKeeper support payments have been extended but payment amounts are changing. Find out more HERE
Unfortunately the threat of Covid hasn't disappeared with Victoria back in lockdown and Sydney hotspots on the rise. If you have been affected and you are struggling with your finances there is help available and we advise you to seek guidance from your bank and/or credit provider as soon as possible for guidance. Below are some of the ways that might help. Contact details for most lenders can be found 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 you're considering or already have accessed your Super we highly recommend you seek Financial Advice or talk to us first if you're 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.
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.