Banks are paying home loan borrowers for their business!

The Australian banking environment has changed substantially over recent years.  There has been an unarguable tightening in credit, which became even more restrictive following the Banking Royal Commission, along with a potentially related slowdown of housing lending during 2019.

As a result, many lenders have found that their sales activity and lending portfolio growth has subsided – meaning that the competition for new good quality loan opportunities is as fierce as we have seen in recent times. Continue reading Banks are paying home loan borrowers for their business!

Rentvesting – enter the property market without sacrificing your lifestyle

As property prices rise over time purchasing in a centrally-located or sought-after area is out of reach for the average working millennial. Instead, many are opting to rent rather than buy as it means not having to compromise their inner city or beachside lifestyle. But for those who are still eager to enter the market, there is a way to get the best of both worlds. Continue reading Rentvesting – enter the property market without sacrificing your lifestyle

How to get your Home Loan Approved the first time

There is no doubt that home loan lenders across Australia have tightened their lending requirements over recent years and borrowers now need to provide more detailed information to obtain a home loan.

For many borrowers this is leading to frustrating delays in applications and approvals.  In many cases it is impacting the ability of potential home purchasers to obtain a home loan in the house price bracket they are seeking.

Below are some tips on how to approach your home loan application to give you the best chance of a positive result the first time!

Continue reading How to get your Home Loan Approved the first time

Good Debt V’s Bad Debt – What’s the Difference?

Within financial circles many advisers and commentators regularly talk about the negative aspects of bad debt and positive approaches to good debt.

But to many the difference is a mystery – isn’t debt just debt?

Good Debt

Lets first consider what good debt is.  Good debt is referred to as that debt that assists in building net worth through either income and / or the holding of an asset that will appreciate in value.  This type of debt could also often be tax deductible.

Continue reading Good Debt V’s Bad Debt – What’s the Difference?

Why you should consider a Home Loan Health Check!

Within the home loan industry there are numerous offers to provide a review of your current loans, whether they call it a “Home Loan Health Check”, “Loan Review”, or similar.

What does this mean? Continue reading Why you should consider a Home Loan Health Check!

Fixed V’s Variable Interest Rates – Pro’s and Con’s

With Australia currently enjoying historically low interest rates there are many borrowers asking themselves “should I fix the interest rate on my home loan?”

Indeed at many social functions the topic of interest rates is often raised and it seems that there are many views and opinions on the best strategy, which just adds to the confusion for many of us. Continue reading Fixed V’s Variable Interest Rates – Pro’s and Con’s

Interest Only Loans – Time Bomb or Hiccup?

Over recent months it has been very noticeable that banks have been increasing interest rates and tightening credit policy for interest only loans, regardless of whether they are for Investment or Owner Occupation.

The appetite for interest only lending has diminished significantly and through pricing and policy banks are encouraging borrowers to consider principal and interest repayment options. Continue reading Interest Only Loans – Time Bomb or Hiccup?

Investment Loans – Banks tighten loan criteria

In mid 2015 we highlighted through this Blog that Banks were tightening credit policy in regards to investment lending and that had resulted in tightening of lending criteria.

This was initially due to communications from APRA to all Approved Deposit-taking Institutions (ADI’s) about expectations of a range of measures to reinforce sound residential mortgage lending practices.   An ADI is basically a bank, credit union or building society.  APRA’s expectation was that ADI’s maintain growth in investment lending portfolios to below 10%. Those communications quickly lead to Bank’s: Continue reading Investment Loans – Banks tighten loan criteria