The hardest part of buying your first home isn’t necessarily paying the mortgage – although that can be challenging. Rather, it’s often saving a large enough deposit to qualify for a loan. What makes the deposit hurdle tricky is that it’s been getting higher. Between March 2020 (when the pandemic started) and August 2024, the … Read more
Inflation is both impacting the housing market and itself being impacted by the housing market. CoreLogic Head of Residential Research Eliza Owen said one way in which inflation impacts the housing market is that it erodes the value of debt, making it easier to repay a mortgage. That’s because $1 today is worth less than … Read more
As a basic rule, mortgage interest is calculated each day, based on the amount of money (or principal) still owing on your loan. As the principal declines, so does the borrower’s interest bill. For example, if someone took out a $500,000 principal-and-interest loan, interest would be charged initially on $500,000; but if, say, a year … Read more
If you find yourself owing money to the Australian Taxation Office (ATO), and you weren’t prepared for it, there are options available to you. What happens if you fail to make your tax payments on time? According to the Australian Taxation Office (ATO), they will first contact you. From there, the ATO will apply the … Read more
As more Australians look for ways to minimise their carbon footprint, a growing number of lenders are backing them with ‘green’ loans. Green loans, also known as sustainable loans, are loan products that can be used to finance the purchase of energy-efficient homes, the construction of energy-efficient homes and green renovations. They can also be … Read more
The instant asset write-off, which was due to expire on 30 June 2024, was recently extended by another 12 months, which means eligible businesses can continue taking advantage of this tax benefit in the 2024-25 financial year. Under the instant asset write-off, eligible businesses can immediately deduct the full cost of eligible assets under $20,000, … Read more
It’s commonly said you need a 20% deposit to qualify for a mortgage. However, more than three in ten new home loans actually have smaller deposits, according to the latest data from APRA, the banking regulator. There are five main ways borrowers can buy a property with less than a 20% deposit. Lenders mortgage insurance … Read more
Federal Treasurer Jim Chalmers last night presented the federal budget for 2024/2025. The Budget comes amidst a cost-of-living crisis, high inflation, struggles in the construction sector and an income election. The challenge was always going to be around helping Australians cope with rising costs without further fuelling inflation. The Labor Government said it focussed on … Read more
When you buy a property, your initial ‘equity’, or ownership stake, is whatever deposit you put down to qualify for the loan, which is often 20%. Typically, your equity rises as the years advance, through a combination of you paying down your mortgage and your property increasing in value, as this hypothetical example shows: You … Read more
Borrowing power can vary significantly from individual to individual, based on their financial circumstances and choice of lender. That’s why two friends who appear to have a similar profile can be approved for very different amounts of finance. It’s also why the same consumer might find the amount of money they’re able to borrow today … Read more
