Keep up to date with expert advice and information from Bernie Lewis Home Loans
Welcome to the Bernie Lewis Home Loans mortgage market update for May 2023. In this addition we talk about variable rates catching up to fixed rates, changes to the Home Guarantee Scheme, and staying cyber-secure during the lending process.
We have finally reached a pause on RBA cash rate increases, which has provided us with a small opportunity to catch our collective breath. We’re all a little tired of the never-ending chatter surrounding the RBA, and there seems to be change coming, so we’ll leave it at that for now and consider borrowing capacity.
Check in on your house value and ensure you have a fair interest rate. With another 0.25% Cash Rate increase, we’ve endured another week of dreaded finance news headlines.
It’s Groundhog Day from the RBA, but we’re hoping the cycle has peaked and we have some rate stability moving forward in 2023.
It’s almost a wrap on 2022, we’re looking forward to a short break. Our mortgage market updates have uncomfortably featured RBA cash rate increases for the better part of 2022, with one last 0.25 basis point sting announced at the beginning of the month… we’re crossing our fingers for a little mortgage market stability for the new year.
An outlier for Spring property results in Adelaide, compared to the Nation. Check out our take on recent results recorded for our market here in SA.
The Home Guarantee Scheme is an Australian Government initiative that supports eligible home buyers to purchase their first home with the assistance of a security guarantee. First home buyers receive the majority of the support available, through the First Home Guarantee and the Regional First Home Buyer Guarantee. Single parents also have access to support with the Family Home Guarantee. With a wide variety of lenders, there are plenty of incentives on offer to assist Australians with home ownership.
How long should it take to break-even with a refinance to a lower home loan rate?
The way you save is more important than ever before. If you’re borrowing above 80% of a purchase price genuine savings is key; you may have to prove you have ‘genuinely’ saved 5% over a set period of time.
Household Expenditure Measure (HEM) is a measurement tool used by lenders to approximate living expenses. This tool helps to determine your available income which may be used to calculate how you can repay a home loan. HEM is a figure that represents the average dollar amount that households spend each year. There are different HEM categories and your mortgage broker and lender will match you to a corresponding HEM category.
According to research results from Finder, many Australians wish they were taught more about money in school. A nationally represented survey revealed almost half of Australians (46%) wished they’d learnt how to invest during their time at school, while 44% wish they’d learnt how to manage their money.
Before you consider refinancing your current home loan, it is important to check that the benefits of refinancing outweigh the costs. Accessing the equity in your home frees up cash that could be used to renovate, re-invest, buy a new car, consolidate debt or pay for unexpected expenses. To help you make an informed decision about refinancing your home loan, there are some important factors to consider.
To celebrate growing numbers of women making it to the top, we thought we’d highlight some inspirational women within Bernie Lewis Home Loans who are out there smashing goals and breaking glass ceilings in the mortgage industry.
You should consider engaging a mortgage broker if you want access to home loans that aren’t readily available to you. If you do not have impeccable credit, if you have a unique borrowing situation like owning your own business, or if you aren’t finding mortgages that will work for you, then a broker might be able to get you access to loans that will be beneficial to you. Many individuals prefer to work with a mortgage broker regardless of their situation.
The COVID-19 pandemic is disrupting the way we live our lives but, no, there is not a mass exodus from Australia’s capital cities. For some, pandemic-related disruptions might have just heightened their dissatisfaction with where they live. For others, working from home might have provided them with the opportunity to consider alternative living arrangements. However, right now, given the data it is unlikely that COVID-19 is driving a major shift away from capital cities or city lifestyles.
