Good news for first home buyers with the FHLDS grant cap being raised. Changes to the RBA cash rate predictions from leading economists and 0.99% loan rates for sustainable home upgrades.
Property prices are still rising quickly, stock levels still remain low and the rental market is still very competitive. Major lenders raised their 3 & 4 year fixed rates! Time is running out if you want to take advantage of the record low rates.
Interest Rate Update
Rate drops from lenders seem to have leveled off and it doesn't look like rates are going any lower. Major lenders have started to raise their 3 & 4 year fixed rates. Loan processing times from lenders still remain one of the biggest hurdles when buying a new home, this can be up to 35 days! So if you're thinking of buying and need a 14 day finance clause to be competitive in the market then it's important to talk to your broker up front to assess your options.
Here are some of the market leading rates as of June 2021.
With 3 & 4 year fixed rates creeping up if you still haven't refinanced to take advantage of these record low rates then you may miss the boat and potentially huge savings!
ANZ has predicted the base cash rate to rise to 0.5% by the end of 2023. This is potentially a lot earlier than originally thought as most predictions were for 2024 before we saw any changes. This is probably why we are seeing 3 & 4 year fixed rates increase now.
To find out if you qualify for any of the above rates contact us today.
RBA cash rate
The RBA cash rate has remained the same at 0.1%.
Some of the key takeaways from this meeting were:
- The economic recovery in Australia is stronger than originally expected.
- The unemployment rate fell again to 5.5% in April. Expectations are that it continues to drop.
- Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.
- The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest.
If you want to see what else was discussed then click HERE
New FHLDS price cap update
The federal government has confirmed new property price caps for the First Home Loan Deposit Scheme (FHLDS) and the Family Home Guarantee, which apply from 1 July 2021.
For the next 10,000 places issued under the FHLDS and the new Family Home Guarantee in the new financial year, property price caps will be as follows:
Read more about it HERE
Preparing your finances for tax time
If you own an investment property then ensuring your finances are in order allows you to claim your losses properly and boost your tax return. Our top 5 tips for this are:
Repairs and maintenance
Pay your loan interest in advance
Upgrade your property
Call your property manager and accountant
Get a Depreciation Schedule
To read more on these 5 tips click HERE
0.99% 'Green Loan' for sustainable home upgrades
Commonwealth Bank has recently released a "Green Loan" to help property owners buy and install eligible clean energy products such as solar panels, battery packs and solar hot water systems at the property secured by their existing home loan.
What you’ll get:
Ultra low-rate loan to be repaid over 10 years
The flexibility to make additional payments or pay off your loan sooner with no fees or penalties
$0 establishment fee
$0 monthly loan service fees
Borrow from $5,000 to $20,000 to fund the purchase and installation of eligible clean energy products.
To find out if you qualify or for some more information then click HERE
Do you need to refinance?
Contact us today to see how much you could potentially save with these record low rates.
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 at 60% LVR.