The Mortgage and Finance Association of Australia (MFAA) named and honoured the best within the industry at its first ever virtual MFAA National Excellence Awards held on 6 August.

According to MFAA CEO Mike Felton, it has never been more important to celebrate broker success stories given the challenges faced over the past 12 months.
“This year, we faced devastating bushfires that ravaged communities throughout Australia, a global pandemic that continues to take a terrible toll on people and economies around the world, and significant imminent reforms out of the royal commission,” he listed.

“But, amidst the challenges and uncertainty, our industry has come together showing compassion and excellence to continue to support communities and clients – helping many through periods of exceptional hardship.”

Go Mortgage came out winner of the 2020 MFAA National Excellence Awards in the category of ‘Regional Broker of the year’

“These awards provide another reminder of the breadth and depth of talent in our industry stretching across Australia to serve people in all corners of the country,” Felton said.

“The MFAA is incredibly proud to represent such outstanding professionals, who each year manage to excel in spite of the challenges they face and show just what our industry is about and what we stand for.”

First home buyers can get so much FREE CASH by adding the HomeBuilder grant to the other incentives available to them.

That means in some states, people moving into their first home could get grants and incentives totalling as much as $55,000

So how much could you get where you live?

Over 40% of Australians have lived at the same address for over 10 years. This means that when it comes to selling a property, you need to be extra sure you have done all you can to make it as appealing as possible to prospective buyers; the stats show after all that they are likely to be looking for something long-term. Whether or not you opt to make big renovations to improve your property’s value, there are several simple things you should do to improve your chances of making a successful sale.

Clean it inside and out

Almost 2.1 million Australians own one investment property or more. However, it goes without saying that, no matter who buys your home – whether that be an investor, a family or a single person, you need to make sure you give it a thorough clean from top to bottom. Doing so will ensure that people get the very best impression of the house, whether they visit it in person or take an online tour of the property.

Put time into your garden

It can be easy to focus so much on the inside of a residence that you forget about the outside. People’s first impression of a home will come from its exterior, so be sure to put a lot of thought into making it presentable and appealing. For example, mow the lawn and treat any weeds or moss effectively. Tidy up any decking and add just a few tasteful plants to make the garden inviting and attractive.

Minimise clutter

Arguably the most important aspect of preparing a property for a sale is making it as clutter-free as possible. This is because clutter has a negative impact on the brain, and is likely to make your home less appealing to potential buyers. With this in mind, take the time to go through each room and remove any unnecessary items. This will have the benefit of making each room seem more spacious, while also making people feel more relaxed in the room in the process.

Put the time into prepping your home

When it comes to selling your home, there are lots of things you can do in preparation to make it as desirable as possible to potential buyers. Creating a sense of space and a welcoming feel needs to be a priority. Ask friends or family members to walk around the property and give you feedback. By putting the thought and time into preparing your property, you give yourself the best chance possible of selling it a price you are happy with.

In need of Finance in 2019?

Comprehensive Credit Reporting and the new Open Banking world will have an effect on your mortgage approval.

Will it be easier or will it be Harder? Let’s find out…

The way Australian lenders assess borrowers continually evolves.

In 2018, the major banks began Comprehensive Credit Reporting, including providing “positive” information to credit reporting agencies about borrowers, such as how often they pay bills on time, as well as more detailed information on credit accounts such as dates opened and closed, credit limits and the type of credit provided.

In 2019 this is stepped up further with the major banks beginning to provide access to data regarding your credit and debit cards, deposit and transaction accounts, and later in 2020 on mortgage accounts.

Why does this matter?

It’s now easier for lenders to get a more complete picture of your spending habits and your repayment history when assessing your loans.
Lenders will be able to see your day to day living expenses, rather than relying on estimates.
You will have the power to share your data with any other provider you want which could possibly assist in negotiating a better deal for your financial products if you have a good history and your spending is in check.

How to make your comprehensive credit report shine

Pay your debts on time, including bills for mobile phones, internet and utilities.
Do not overdraw your credit card and be careful with services like AfterPay and zipPay as they may appear on your credit report.
Be careful with discretionary spending like Uber Eats, sports bets and nights out.
Check your credit score to ensure there is no incorrect information or outstanding credit facilities like old store cards*.

Whether you are looking for your first home, next home, an investment or to refinance, contact us today to review your situation.

We can, with your permission, assist you to check your credit file and provide you with guidance to help make the loan process as smooth as possible.

With access to over 35 lenders, we can provide you with choice, and options to secure your finance… the game is no longer just about interest rates… it is about matching your circumstances to bank policies so that you obtain the loan approval you are looking for.

* https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-reports

Purchase a new or second hand asset such as a motor vehicle, computer equipment, an Air conditioning system, a solar system or business machinery for $30,000 or less and claim an immediate tax deduction. There are no limits on the amount of assets you purchase as long aseach asset in under the $30,000 threshold.

If your business is registered for GST then it is GST exclusive prices that count. You can then also claim the GST back from the Tax man as well on each purchase.

This is the easiest and fastest way to reduce your taxable income when so close to the financial year

The instant asset write-off program is one of two major budget policies benefiting small business.

While the asset-write off was introduced as a measure pitched at “tradies”, Small Business Treasurer Josh Frydenberg said “hundreds” of small businesses had told him the write-off rules allowed greater investment in capital equipment. Only a few measures are not eligible for instant write off, such as office plants and in-house software.

And the other reason why it works so well is that this plant & equipment can be easily financed – often on a LowDoc basis for commerical use – Ask us how

Examples:

Pamela bought a second hand skid steer loader for $17,000 on 08 April 2019 which is used solely in her landscaping business. As the depreciating asset cost less than $30,000, Pamela will be able to claim an immediate deduction for this asset.

Owen bought a new Solar System & Air conditioner for $35,000 on 28 November 2018 which are used solely in his manufacturing business. As he obtained 2 separate invoices each under $20,000, Owen can claim an immediate deduction for both these assets.

Mary intends to buy a new delivery van for her courier business in June 2019. Her business is registered for GST and the van cost $24,500 excluding GST. Mary will be able to claim an immediate deduction for this asset this year as well as the GST in this BAS period.

Let us improve your business & Finance your new vehicle or equipment

You’ll benefit from Low repayments and an instant Tax Write Off

CONTACT US TODAY

A low deposit home loan lets you borrow more than 80% of a property’s value. It might only require a 5% deposit and let you buy your property sooner.

How small can my deposit be?

The standard deposit size for most lenders is 20% of the property’s value. In other words, borrowers need a loan-to-value ratio (LVR) of 80%. Low deposit loans come with an LVR of 90 or 95%. This means you can potentially get a mortgage with just a 5% deposit.

There must be a catch, right?

There is. If you’re borrowing more than 80% of a property’s value you will have to pay lenders mortgage insurance (LMI) as well. Depending on how much you’re borrowing this can be a significant cost, ranging from several thousand dollars up to ten or even twenty thousand dollars.Usually this translates into you requiring about 5% for the deposit and 3% for the LMI – this equal to a total of 8% required.If you’re buying an $500,000 property, a 20% deposit is $100,000. A 8% deposit is just $40,000. That’s a huge difference.traditionally some lenders allowed to capitalise your LMI, meaning you can add this cost into your borrowing amount. But with the recent squeeze of APRA onto the health of the financial system, most lenders have exited out of this space.

The low deposit trap: Be sure you have cash to cover all your costs

Saving a 5% deposit is much easier than saving a 20% deposit. But you need to make sure you have money saved up to cover all your other home buying costs.

This includes LMI, stamp duty, government fees, conveyancing costs and upfront lender’s fees.

Don’t forget to add in things like legal fees, conveyancing fees and transfer fees to your total.

Is it harder to get approved for a low deposit home loan?

While the banks might advertise that you can borrow up to 95% of the purchase price of your new home, it’s important to realise that lending criteria still apply:

• Good credit history. In order to get your loan approved at a high LVR like 95%, you will need to have a clean credit history. This means you should have no defaults showing on your credit report for missed payments on other bills.
• Good employment history. You will also need to demonstrate that you have a stable employment history. This means showing that you’ve been in the same job for at least 6-12 months, or been working within the same industry in a similar role.
• Genuine savings. If you can show where your 5% savings amount came from, this will go in your favour. For example, showing your savings account statements with regular deposits going into it will be viewed favourably.
• Good asset position. The credit assessor will view your existing assets and consider them in terms of whether you’re doing well based on your age and income. For example, if you’re a first home buyer and you have 5% savings and a car, this may be considered a positive asset position for your age and income.
• Controlled debts. If you submit your home loan application and it shows that you have several credit cards, a car loan, and a personal loan all outstanding, it’s likely your loan will be declined. Consolidate your debts and pay off the most urgent ones. Credit card debt is a bigger red flag for a lender than an HECS student debt, for example.

Can I still get a no deposit home loan?

True no deposit mortgages are largely a thing of the past. Most banks won’t throw 100% of a property’s value at you. But there are some exceptions to this rule. These exceptions could be very useful for borrowers who are having trouble saving a deposit.

• Gifted deposit. If you have generous parents with some cash in the bank, they can give you part of your deposit as a gift. If you’re able to reduce your loan amount so you’re only borrowing 90% of the purchase price, some banks won’t ask you to prove that you have genuine savings. This means mum and dad need to come up with 10% of the purchase price and offer it to you as a gift. Learn more about using parental gifts as deposits.
• Guarantee from parents. If your parents own their home and they are happy to act as guarantors on your mortgage, you could borrow 100% of the purchase price of your new home without having any savings. Essentially, the bank takes a guarantee from your parents that is secured by the equity they have in their own property. Just be absolutely sure that you and your parents understand all the implications of guarantorship before you enter into this type of agreement.
• Existing property. If you already have equity in your family home, you may be able to use this to secure the purchase for your next property. Effectively, this lets you borrow 100% of the purchase price of your new property without having any savings.

So Where do you start?

Want to get into your First home but dont have a big 20% deposit?Contact us and let’s put a plan together to see you into your home anyway

Wondering how to pay off your home loan sooner? We look at some things you could do.

Australian home loan interest rates remain at historic lows, and the opportunities for paying off a mortgage early are better than ever. Used in conjunction with low rates, here are some extra steps that can speed up loan repayments and reduce your loan balance.

Make higher repayments

One of the easiest ways to quickly reduce the balance of your mortgage is to make larger loan repayments. The minimum repayments required on a loan are calculated on the amount owing and the prevailing home loan interest rate. Repaying more than the minimum can cut the overall term of the loan and save you thousands of dollars in interest. A mortgage repayments calculator will quickly show what savings can be achieved.

Some lenders may charge you an early payment cost for paying your loan in advance. This is particularly the case with fixed-interest loans, so it’s always best to check up-front. These costs can be large.

Make more frequent repayments

Home loans are often structured so that you make monthly repayments. But making fortnightly repayments instead can reduce the term of a loan and save interest. By making fortnightly repayments, you are paying the equivalent of half of your monthly repayment every two weeks. This allows you to make the equivalent of one extra monthly repayment per year. Extra repayments will ensure the loan balance is lower at the time of the month the interest is calculated.

Use an interest offset account

Most lenders allow you to package a mortgage with an interest offset account. An offset account allows you to reduce the amount of interest paid on your loan by offsetting the amount in the (offset) account against your loan balance. Wages and other income can be deposited into your offset account. Note that you don’t earn interest on the funds in the offset account, and that offset is usually only available on variable rate loans.

Seek out lower rates

Although obvious, many borrowers take out a mortgage and then stop following the home loan market. With interest rates constantly changing, it pays to monitor the latest rates. If rates go down, contact your broker and ask if they can reduce the rate on your loan.

Don’t take the rate cut

When a lender reduces the interest rate on its home loans, usually in line with a cut in official interest rates, your first thought may be to reduce your loan repayments accordingly. However, by maintaining your loan repayments, you effectively repay more than the minimum loan repayment. If it’s possible to do so, this will help you cut the term of the loan and save on interest.

Pay both principal and interest

While you can make lower repayments by choosing an interest-only loan, doing so means the principal component of the loan will not be repaid while you are only paying interest.

Pay fees upfront

When initially taking out a mortgage, lenders will often roll the establishment costs and charges into the loan. While this may help the short-term budget, it’s worth paying these costs separately to lower the overall balance of the loan from the start.

Use your home equity

As home prices rise, you build more equity in your property. Redrawing funds from a home loan to pay for renovations and other costs can be a much cheaper source of funds than others.

Set up a split loan

A split loan, sometimes referred to as a combination loan, enables borrowers to divide their mortgage into both variable and fixed components. By doing this, you can not only make extra payments on the variable component, but also lock in a lower fixed rate. Extra payments can often be made on the fixed loan too, up to a limit specified by the lender.

Get a financial package

You can often lock in a discounted loan rate with a financial package and also find special rates on other products and services. Putting those savings into your mortgage is a great way to get the best of both worlds.

With just a few easy steps, borrowers can significantly reduce the length of their mortgage and save thousands of dollars in the process. A mortgage broker can assist you in setting everything up.

For more information on how you can pay off your home loan sooner, call Go Mortgage today.

The royal commission and a tougher regulatory environment for the banks in 2018 translated to stricter borrowing conditions for borrowers, and a less competitive market than years gone past.

This environment will carry into the rest of 2019 with more stringent loan assessments from lenders. This is made easy for them by the spending and saving behaviours of borrowers being increasingly online and electronic.

In short: Australians are living their lives online, and it’s easier for lenders to get a full picture of how they manage their money.

Borrowers have “nowhere to hide” when it comes to their spending habits, and should be aware their discretionary spends are on lenders’ radars.

Most banks now require transaction statements, which means borrowers can’t hide with their history of spending. The rise in ‘tap and go’ payments plus technology such as bankstatements.com.au can classify spending into categories and give a lender full visibility on a loan applicant’s spending patterns and how much they save – this level of disclosure is unprecedented.

Examples include Afterpay, Zip Pay, frequent holidays, high spending on credit cards and even spending on gambling, alcohol and dining are being hauled into question if they will be ongoing expenses after their loan has settled or if this constitutes discretionary spending.