Fit Loans exists to provide a fresh, honest and customer focused approach to lending.
About Us
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Fit Loans was created to help borrowers find a suitable loan product and structure that fits their borrowing and financial needs. We pride ourselves on our high quality of client care and keeping you informed every step of the way.
With the market flooded with a variety of loan options, Fit Loans is here to take out the confusion and stress associated with finding a suitable loan for you.
We are dedicated to assisting you to find the loan that fits your needs. Whether you are ready to buy your first home, refinance an existing loan, looking for an investment property or simply wanting to learn more about reducing your debt, Fit Loans is here to help.
Variable, fixed, interest only, LVR, LMI…. we cut through the jargon and explain things in an easy to understand manner. We weigh up all your options and take you through our recommendations step by step.
We don’t play favourites with lenders – we find the most suitable fit for you. Fit Loans advice is free of charge.
It only takes a minute to complete our enquiry form and from there, a Fit Loans consultant will be in contact within 24 hours to provide assistance and answer any queries you may have.
All information will be kept strictly confidential and secure.
Frank Zinghini
Managing Director
Our Services
Home loans
Refinancing
Business lending
Investment loans
Construction loans
Commercial loans
Motor vehicle finance
Asset finance
Debt consolidation
Self managed super funds
Why Choose Us?
Whether you are a first home buyer or a seasoned investor, Fit Loans will find the right loan to fit your needs. We will provide you with quality customer service that you will value for the life of your loan.
- We have access to over 35 different lenders
- Our services are provided free of charge
- We work for you, not the lender
- We will be easy to do business with
- We will always get back to you promptly
- You will be kept informed every step of the way
- We will go the extra mile, every time
- We will listen to what you want
- We will provide a loan solution that fits your needs
- Our team is qualified and fully compliant
Education Centre
Fit Loans believe that you can never learn too much. That is why we have set up an education centre providing informative articles and check lists that can be read online or downloaded for later viewing.
Testimonials
-
Would highly recommend. Amazing service. Frank was extremely efficient with his responses and always explained everything thoroughly (good and bad). We were very impressed with the service and are very thankful to have had such a great broker!
Shenae Clements
June 8, 2023Just refinanced with Frank's assistance and he made the process so smooth. It's such an advantage when your mortgage broker goes above and beyond to understand what you need, what your priorities are and what will work best for you. We will definitely keep coming back each time we need help with financing.
Harvey Jones
December 8, 2022Great experience with Fit Loans. A friend recommended them and I'm so glad they did. Frank was so helpful and approachable. He always explained things clearly and patiently answered my questions. Highly recommend.
Sarah Ryan
December 8, 2022Look no further than Frank @ Fit Loans - you won't be disappointed. Frank was recommended to us when we wanted to know more about our financial circumstances and were not in a position to buy our new home. He came on the journey with us, provided constant advice, was pro active, very responsive and when we found out perfect home went over and above to help us secure our home. Countless emails & phone calls day and night, Frank truly went above and beyond. Looking forward to our next opportunity to use Fit Loans again.
Catherine Maiuto
December 8, 2022As a first home buyer, I entered into the property market with a great deal of anxiety and trepidation. Frank at Fit Loans was a 'word of mouth' recommendation, and I felt comfortable with him immediately. Not only was he available and responsive, he took the time to explain information and processes in an accessible way - repeatedly if necessary. I was always confident that he conducted a thorough and individual assessment of my needs as a buyer, and sought the best home loan deal for me. Other brokers I had approached came across as clinical, salesy, process driven and impersonal. One of the best things about Frank is his knowledge and acumen regarding the finance and banking industry. He has exceptional interpersonal skills too. I also suspect he'd make quite a good counsellor!
Chaouen Fan
December 8, 2021Frank is excellent, he always gave us the right advice. Very responsive and gave a very clear explanation to all our doubts and patiently answered all our questions. Highly recommended.
alekhya pinisetti
December 8, 2021 -
Frank is very switched on and responsive, which helps immensely during the loan application process. Couldn't be happier!
Justin Shu
December 8, 2021Frank's service was professional, friendly and high quality from the moment we met. Frank has great attention to detail and took the time to explain the process every step of the way. Highly recommended.
David Mangano
December 8, 2021i would highly recommend Fit Loans. Frank went above and beyond for us to get our loan sorted. Frank is diligent and responsive. We cant thank Frank enough.
Terri Shannon
December 8, 2020I had a wonderful experience with Frank.. He was very open and honest and supportive throughout the whole process. His communication was excellent, very professional and he found me a great deal. He is attentive, reliable and was always available to answer any questions or concerns I had. I have friends and family that have also used his services and they’ve all been more than satisfied. Highly recommend.
Sofia Skliros
December 8, 2020Extremely easy to deal with. Frank made the whole process a breeze. Much much much simpler and also cheaper than what the bank offered. Cant recommend Frank at Fit loans enough.
Alumach Pty Ltd
December 8, 2020Frank was brilliant to deal with. He was always there when I needed him, made dealing with banks easier and also provided in depth information that allowed us to get the best out of our new home loan. I highly recommend Fit Loans!
Nathan Vellucci
December 8, 2020
Contact Us
RBA ANNOUNCEMENT – APRIL![]()
The Reserve Bank of Australia has decided to leave the current cash rate at 4.1%.![]()
This month’s announcement is not surprising considering that Michele (Michele Bullock, RBA Governor) warned us that further rate cuts were not implied.![]()
![]()
Fingers crossed for the next RBA meeting in mid May.![]()
Come on Michele!![]()
![]()
Firstly we would like to extend our thoughts and warm wishes to our friends, colleagues and family who were impacted by the damage left by ex-tropical cyclone Alfred. As the community cleanup continues for residents of Southeast Queensland and Northern NSW, we have seen a barrage of commentary about the impact of the property market in these areas.![]()
![]()
Tim Lawless, CoreLogic’s Head of Research, has weighed in on the potential effects of such severe weather events. While acknowledging that these events are becoming more frequent, he reminds us that Australians, particularly in the northeast, have previously faced similar challenges.![]()
![]()
Historically, property markets in affected areas have shown resilience, often rebounding after an initial dip. For instance, following the 2022 floods in Southeast Queensland and coastal NSW, property prices recovered swiftly with some flood free homes even appreciating in value.![]()
![]()
This month we would like to focus on what happened last month after the RBA decided to drop the cash rate for the first time in over 4 years.![]()
![]()
Enjoy this month’s update.![]()
![]()
Please note: The interest rates quoted in this month’s feature article are from our March data and may have changed in recent days. It always pays to check in with us to explore your finance options.![]()
![]()
Australia’s financial comparison website (Canstar) in their March analysis of home loan rates revealed some exciting changes in the mortgage market, coinciding with a positive shift in Australia's housing sector.![]()
![]()
Here's what happened last month:![]()
![]()
Home loan market activity![]()
The home loan market saw a flurry of activity with many lenders adjusting their rates. This increased competition is good news for borrowers as it often leads to competitive deals and lower interest rates.![]()
Housing market recovery![]()
Australia's housing market bounced back from its recent downturn. This suggests that property values are showing signs of an increase again in many parts of Australia after a period of small, declined growth.![]()
Rate cut impact![]()
The Reserve Bank of Australia (RBA) interest rate cut in March was the first in over 4 years. With some lenders dropping their fixed rates early in anticipation of the rate cut, we have already started to observe a significant effect on the property market.![]()
![]()
Rate cuts:![]()
lower borrowing costs![]()
typically increase buyer confidence in the property market, and![]()
encourage more people to consider purchasing homes![]()
Boosted buyer sentiment![]()
Rate cuts make potential homebuyers feel more optimistic about entering the property market.![]()
![]()
This increased confidence is likely to lead to:![]()
More people attending open houses![]()
Higher auction clearance rates![]()
Potentially faster property sales![]()
The combination of more competitive home loan rates and lower interest rates from the RBA appears to be turning the housing market around.![]()
![]()
Current trends in variable mortgage rates![]()
Current trends in variable mortgage rates are showing a positive shift for borrowers in Australia. The recent RBA decision to cut the cash rate by 0.25% has led to widespread reductions in variable home loan rates. Most lenders, including the Big Four banks, have passed on this rate cut to their customers.![]()
![]()
The average variable interest rate for owner occupiers paying principal and interest in March was about 6.59%.![]()
![]()
However, the current market offers more competitive options, with the lowest available variable rate across any loan to value ratio (LVR) sitting at an attractive 5.59%.![]()
![]()
The home loan landscape has become increasingly favourable for borrowers:![]()
![]()
There are now 358 rates under 5.75%.![]()
80 lenders reduced their rates last month.![]()
35 lenders are offering at least one variable rate under 5.75%.![]()
It's worth noting that most of these competitive rates are not offered by major banks.![]()
![]()
While these trends are promising, it's crucial to remember that finding the right home loan involves more than just chasing the lowest rate. Each borrower's situation is unique, and what works for one may not be ideal for another.![]()
![]()
This is especially important if you are guiding your adult children into the property market. The home loan we secured for you may not be the most appropriate for your young adult first home buyer.![]()
![]()
So make sure they talk to us before heading to your lender.![]()
![]()
Professional guidance can be invaluable in navigating the complex mortgage market and finding a loan that suits your specific needs and circumstances.![]()
![]()
Thanks for reading this month’s property and finance update.![]()
We look forward to hearing from you soon.![]()
![]()
As always…![]()
With your best interest in mind
MEC PF April 2025 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
Australia’s property market is defying expectations with demand for investment loans, new property loans and refinancing continuing to rise, even with supply shortages and rising property
What a massive relief for mortgage holders last month when the Reserve Bank of Australia (RBA) decided to drop the cash rate. Hopefully you will see the corresponding interest rate reduction on your mortgage repayments this month.![]()
![]()
Will there be more reductions?![]()
The number of cash rate cuts that the RBA may deliver in 2025 is uncertain, with major banks estimating anywhere between two and five.![]()
![]()
Historical rate cycles typically featured two consecutive monthly reductions followed by a pause before resuming. However, the current economic landscape suggests a different pattern. A lag of several months before the next rate reduction appears highly probable due to persistent inflationary concerns. This delay is attributed to ongoing cost of living pressures, driven by rising electricity costs and gradual wage increases permeating the economy.![]()
![]()
Given this scenario, there is a compelling case for taking action in the property market now. It's an opportune time to reassess your borrowing capacity and consider making a property purchase. The potential extended period before the next rate cut could impact future borrowing conditions and property prices.![]()
![]()
This month we would like to explore what you need to know and why now may be the perfect time for a mortgage review or a borrowing capacity exploration session.![]()
![]()
Before you head off to read all about it – we would also like to remind you that we are half way through our New Zealand competition. Enter now for your chance to win an incredible, self designed holiday valued at $9,500!![]()
![]()
So sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
As we are heading into anticipated cash rate cuts by the RBA this year, it's crucial to understand how this change may affect your mortgage and finance position.![]()
![]()
Let's explore what you need to know and why now may be the perfect time for a mortgage review or a borrowing capacity exploration session.![]()
![]()
What happens when there's a cash rate cut?![]()
When the RBA lowers the cash rate, it typically leads to a reduction in interest rates across the economy. However, it's important to note that while banks and lenders often respond by lowering their home loan interest rates, they're not obligated to follow suit. And they can take their time…![]()
![]()
Will your lender pass on the rate cut?![]()
The short answer is - it depends!![]()
![]()
Each lender reacts differently to RBA rate cuts in an attempt to remain competitive. Some may pass on the full cut, others only a portion, and some might not reduce rates at all. It's a lever that all banks can use to their advantage. They may also offer new clients the lower rate but only pass on some of the reduction to existing clients.![]()
![]()
Are you still receiving the most appropriate finance solution?![]()
Even if your lender passes on the rate cut, it doesn't necessarily mean you're still in the most appropriate finance solution for your situation.![]()
![]()
Loan products that once looked competitive rarely remain so two years later. This is why it's crucial to regularly review your mortgage.![]()
![]()
Why now may be the perfect time for a mortgage review![]()
![]()
Potential savings![]()
With expected future rate cuts, you could potentially save on your monthly repayments.![]()
![]()
Increased borrowing capacity![]()
Lower rates may improve your borrowing power and open new opportunities.![]()
![]()
Market competition![]()
Lenders will be eager to win new business and retain customers by potentially offering better deals.![]()
![]()
A word for those about to come off fixed rates![]()
If you're one of the many Australians coming off a fixed interest rate soon, please pay close attention. When your low fixed interest rate period finishes, you typically roll into your lender’s current variable rate unless negotiated otherwise.![]()
![]()
Bear in mind that your existing lender may not be offering you the most affordable rate compared to other products they have or what other lenders are able to offer. This is because lenders often reserve their best rates for new customers to attract business.![]()
![]()
The value of professional help![]()
In this changing landscape, the expertise of our finance team becomes even more valuable. The mortgage and finance broking industry has evolved significantly by adapting to regulatory reforms and continuing to provide substantial contributions to the Australian economy.![]()
![]()
By having a mortgage review with our finance team, you can:![]()
![]()
Ensure you're receiving a competitive rate![]()
Explore refinancing options if beneficial![]()
Understand how the rate cut affects your specific situation![]()
Potentially increase your borrowing capacity for future investments![]()
Remember, while a rate cut might seem like automatic savings, the reality is more complex. It's not just about securing a lower rate, but also about finding the most appropriate finance solution for your unique circumstances.![]()
![]()
2025 will be a great year to take the opportunity to optimise your mortgage strategy.![]()
![]()
Reach out to our finance team today for a comprehensive mortgage review.![]()
![]()
In a market where every basis point counts, expert guidance can make all the difference to your future finances.![]()
![]()
Thanks for reading this month’s property and finance update.![]()
![]()
We look forward to hearing from you soon.![]()
![]()
As always…![]()
With your best interest in mind
MEC PF March 2025 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
The number of cash rate cuts that the Reserve Bank of Australia (RBA) may deliver in 2025 is uncertain, with major banks estimating anywhere between two and five.Historical rate cycles typically featu...
Starting 1 January 2025, the Australian Taxation Office (ATO) has implemented significant changes to property sales regulations that affect all Australian residents selling and buying property.![]()
The new rules put ALL property sellers at risk of having to put aside 15% of the sale price if they do not submit an ATO clearance certificate before settlement. ![]()
![]()
This month we would like to outline these changes in simple terms to help both sellers and purchasers understand their new obligations.![]()
![]()
However before you head off into your busy day, if you haven’t already entered our New Zealand competition you must jump in today!![]()
![]()
So sit back, relax and please enjoy our property and finance update for February.![]()
NOTE: Our RBA announcement will be delivered on Tuesday 18 February this month![]()
REMEMBER - LENDERS DO NOT NEED TO WAIT FOR THE RBA TO MOVE THEIR HOME LOAN RATES![]()
There were 29 cuts to variable home loan rates across lenders between October and mid December last year in anticipation of what's to come.![]()
THERE IS NO NEED TO WAIT FOR A RATE CUT![]()
Reach out now for a home loan review and start saving now!![]()
![]()
Yes – there are new tax rules for property sales as of 1 January 2025![]()
Why is the ATO doing this?![]()
The ATO has updated legislation for foreign resident capital gains withholding (FRCGW).![]()
FRCGW is designed to ensure foreign residents who sell property in Australia pay their capital gains tax obligations before the proceeds of the sale are moved offshore.![]()
While Australian residents are exempt from this withholding, the clearance certificate serves as your proof of residency status. The new requirement is that all sellers are to provide a clearance certificate from the ATO to purchasers at or before settlement, otherwise 15% of the sale price will be withheld. OUCH!![]()
![]()
THIS IS A BIG CHANGE!![]()
Previously, only property sales over $750,000 required an ATO clearance certificate. However, as of 1 January 2025, all property sales in Australia, regardless of the sale price, now require sellers to obtain a clearance certificate from the ATO.![]()
![]()
What is a clearance certificate?![]()
A clearance certificate is a document issued by the ATO that confirms the seller is an Australian resident. This certificate exempts the seller from having a portion of the sale proceeds withheld for tax purposes.![]()
![]()
Why is this important?![]()
If a seller fails to provide a valid clearance certificate to the purchaser at or before settlement, the purchaser is legally required to withhold 15% of the purchase price and pay it to the ATO.![]()
This can significantly impact the seller's finances and cash flow as they would need to wait until their next tax return is processed before they receive any refund that may be due.![]()
![]()
How to obtain a clearance certificate![]()
Sellers can apply for a clearance certificate online through the ATO website. The process is free and most certificates are issued within a few days. However, it's important to note that in some cases it can take up to 28 days to issue a certificate. Your solicitor or conveyancer may do this on your behalf.![]()
![]()
Key points for sellers![]()
Apply for your clearance certificate as soon as you decide to sell your property.![]()
![]()
The certificate is valid for 12 months from the date of issue.![]()
If there are multiple sellers listed on the property title, each seller must obtain their own clearance certificate.![]()
![]()
Make sure the title of the property prior to sale is reflected in your current name and identified with the ATO.![]()
![]()
Key points for purchasers![]()
You must receive a valid clearance certificate from the seller at or before settlement.![]()
If you don't receive a clearance certificate, you are legally obligated to withhold 15% of the purchase price and remit it to the ATO.![]()
![]()
Example scenario 1 – Upsizing or downsizing![]()
Stanley and Katie, both Australian residents, sell their family home for $600,000. Katie obtains her clearance certificate in time for settlement, but Stan’s certificate is delayed. As a result, the purchaser must withhold $45,000 (15% of Stans’s share of the sale ) and pay it to the ATO. Stan will not be able to claim this money until he submits his 2025 tax return. ‘Not happy Stan!’![]()
![]()
Example scenario 2 – Separation tips!![]()
Susie and Chris separated 15 months ago and decide to sell the family home in their property settlement. They were offered $1,500,000.![]()
![]()
Both are Australian residents, however Susie has changed back to her maiden name. As the title deeds of the family home were still in her married name, the purchaser’s solicitor did not recognise her maiden name at settlement.![]()
![]()
As a result, the purchaser’s solicitor insisted that 15% of Susie’s share of the sale ($112,500) needed to be submitted to the ATO on settlement. Fortunately, Susie was quick to address the concerns and provided a change of name certificate to satisfy all parties. Otherwise Susie would have been left without a highly needed $112,500 at settlement and would not be able to claim this money until she submitted her 2025 tax return.![]()
![]()
Example scenario 3 - Family estate![]()
Ann, Elizabeth and John are selling their mother’s family home valued at $900,000 after grant of probate.![]()
Elizabeth had sold a property 18 months prior and thought she had a clearance certificate. As her certificate had expired and had left it too late to obtain a new one in time, the purchasers were not prepared to postpone settlement and wait for a new certificate to arrive as they had a simultaneous settlement arranged with their previous property.![]()
The options were:![]()
If settlement was delayed, all three parties would be subjected to penalty interest until settlement, or![]()
Settle now and Elizabeth would have to wait to claim her 15% ($45,000) in her 2025 tax return.![]()
I’m guessing you know what her siblings wanted…![]()
![]()
These examples highlight the importance of obtaining clearance certificates well in advance of settlement to avoid potential financial complications.![]()
![]()
Please be aware that these new regulations apply to all property sales in Australia including residential, commercial and vacant land.![]()
By understanding and complying with these new rules, both sellers and purchasers can ensure a smooth property transaction process.![]()
![]()
Key dates and contracts:![]()
Contracts signed BEFORE 1 January 2025![]()
The new legislation does not apply, even if settlement occurs in 2025.![]()
Contracts signed ON or AFTER 1 January 2025![]()
The new legislation applies and a clearance certificate is mandatory.![]()
![]()
Key information![]()
Applications for the clearance certificate are free and can be found on the ATO's website by clicking here.![]()
Vendor applicants will need to provide:![]()
contact details![]()
tax number![]()
date of birth![]()
residency status![]()
The certificate lasts 12 months from the date of issue and normally takes just a few business days to process. ![]()
This is a significant change and we understand you may have questions. We are committed to keeping you informed and helping you navigate these new requirements.![]()
![]()
Contact us today to discuss your specific situation and how we can assist you.![]()
![]()
Don’t delay!![]()
If you are selling a property this year, start the process of obtaining your ATO clearance certificate when you list your property to ensure a streamlined and hassle free property settlement!![]()
Thanks for reading this month’s property and finance update. We look forward to hearing from you soon.![]()
As always…![]()
With your best interest in mind
MEC PF February 2025 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
The Australian property market in 2025 presents a unique landscape for both buyers and sellers. With interest rates hovering in the 5.99% range and varied property market performance across the countr...
Welcome to the new year!![]()
We hope you had a wonderful break, filled with quality time spent with loved ones and moments of rest and rejuvenation.![]()
![]()
As we step into this exciting new year, let’s embrace the opportunities and challenges ahead together! ![]()
![]()
This month we would like to talk about how the challenge of saving for a home deposit in Australia has become increasingly daunting.![]()
![]()
If this resonates with you, or your adult children looking to purchase their first home, we encourage your continued scrolling to explore some options of the costs of waiting in our current property market.![]()
![]()
And if you haven’t yet heard, our brand new competition is now OPEN!![]()
You could win a self designed holiday to our beautiful sister country, New Zealand. With a generous $9,500 in travel and flight vouchers up for grabs, you can create the perfect getaway tailored just for you - whether you choose to go solo or bring along family or friends!![]()
![]()
So before you head off into your busy day, if you haven’t already entered you must jump in today!![]()
![]()
So sit back, relax and please enjoy our first property and finance update for 2025.![]()
![]()
The challenge of saving for a home deposit in Australia has become increasingly daunting.![]()
![]()
In January 2024, the national median asking price for a combined dwelling was $760,000. If you are aiming to save a 20% deposit you need to save $152,000.![]()
![]()
Fast forward to December 2024 and that median price rose to $812,933, pushing the required 20% deposit to $162,586.![]()
![]()
This represents a staggering increase of $52,933 in property prices and an additional $10,586 in deposit requirements over less than a year.![]()
![]()
The reality of saving for a deposit![]()
With the average combined salary in Australia sitting at $120,660, and assuming a savings rate of 15% (approximately $18,099 annually), it would take nearly 9 years to save a 20% deposit for a home at this price.![]()
![]()
This situation makes it feel nearly impossible for many Australians to enter the property market.![]()
![]()
Lenders' changing attitudes towards deposits![]()
Fortunately, recent data from the prudential regulator indicates that lenders are becoming more open to providing loans with smaller deposits.![]()
![]()
While this is encouraging news for prospective buyers struggling to save enough, entering the market with less than a 20% deposit typically incurs lenders’ mortgage insurance (LMI). This can create an additional significant financial burden.![]()
![]()
Understanding lenders' mortgage insurance – is it the devil we think it is?![]()
LMI is often misunderstood. While insurance is generally seen as beneficial, in this context it protects the lender in case the borrower defaults on their loan - not the borrower.![]()
![]()
The cost of LMI can range from 1-5% of your home loan amount. For instance, if you place a 10% deposit on a home priced at $812,933, you could end up paying around $14,633 in LMI. Since LMI benefits the lender rather than the borrower, it’s often viewed unfavourably.![]()
![]()
Weighing your options - wait or act now?![]()
The crucial question for buyers is whether to wait and save for a full 20% deposit or to enter the market sooner with LMI. If you can meet certain conditions – for example, entering the market one year earlier and experiencing a capital growth of 4-5% – using LMI could be financially advantageous.![]()
![]()
Strategic use of lenders' mortgage insurance![]()
Borrowers should adopt an open minded approach towards LMI and consider its strategic use.![]()
![]()
Many lenders now allow buyers to include LMI into their loan amounts, freeing up cash for emergencies or renovations.![]()
![]()
However, it’s important to note that if LMI is added to the loan, interest will also accrue on that amount. For example, adding a $14,633 LMI fee to your loan could increase the total interest owed by approximately $30,126 over 30 years.![]()
![]()
Exploring first home grants![]()
First home buyers should check their eligibility for state or federal government grants and subsidies. This may alleviate some costs associated with LMI and stamp duty.![]()
![]()
However, these grants often come with strict income or property value thresholds that can be challenging for young buyers to meet.![]()
![]()
The balancing act of saving![]()
With rising living costs making it harder to save for a deposit, many prospective buyers find themselves weighing whether to save for an additional six months or more or pay LMI and purchase now.![]()
![]()
Understanding how close you are to different thresholds can help to clarify your decision making process.![]()
![]()
Negotiating with lenders![]()
Depending on various factors such as income and location, negotiation with lenders may be possible.![]()
![]()
Some banks are now assessing LMI exemptions at the postcode level, favouring affluent suburbs. High income professionals such as lawyers and doctors may find that some major banks will waive LMI altogether for loans in specific high value areas such as Sydney’s Rose Bay or Melbourne’s Toorak.![]()
![]()
The rise of rentvesting![]()
Another trend among first home buyers is ‘rentvesting’ where individuals purchase investment properties in more affordable markets while continuing to rent in their preferred locations.![]()
![]()
This strategy allows them to leverage LMI while entering the market with less than a 20% deposit. Additionally, because these properties are investments, the cost of LMI becomes tax deductible.![]()
![]()
Making informed decisions![]()
Navigating the current Australian property market requires careful consideration and strategic planning.![]()
![]()
With rising property prices and changing lending practices, prospective buyers must weigh their options thoughtfully.![]()
![]()
Whether considering LMI as a stepping stone into homeownership or exploring alternative strategies such as rentvesting or government grants, being informed will empower you to make decisions that align with your finance goals.![]()
![]()
In this evolving landscape, working with an experienced finance team – such as ours – may provide valuable insights and support tailored to your unique situation. This may help you turn your homeownership dreams into reality.![]()
![]()
Thank you for reading this month’s property and finance update.![]()
![]()
Remember to read our follow up article below on how parents can help their kids jump into the property market sooner.![]()
![]()
We look forward to hearing from you soon.![]()
![]()
As always…![]()
With your best interest in mind
MEC PF January 2024 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
Navigating the Australian property market can be daunting for first home buyers, especially with rising prices and increased costs. However, as parents, there are several ways you can provide support ...
Happy New Year!![]()
![]()
This month, we would like to talk about the expectations of potential pending interest rates and how to prepare yourself over the festive season if you have been considering or waiting for interest rate cuts.![]()
![]()
With inflation finally settling into the Reserve Bank of Australia's (RBA) target range, many mortgage clients are left pondering what this means for their finance plans and interest rates moving forward.![]()
![]()
As 2025 begins, it’s important to understand how the current economic climate might affect your decisions, especially if you’re thinking about refinancing or buying a property.![]()
![]()
Make sure you read our article ‘Navigating home loans during the festive season’ where we provide some key tips to help you navigate your home loan journey during this busy time.![]()
![]()
So grab a cuppa, sit back, relax and please enjoy this month’s property and finance update.![]()
![]()
We’re also very excited to announce our brand new competition!![]()
![]()
You could win a self designed holiday to our stunning sister country, New Zealand. With a whopping $9,500 worth of travel and flight vouchers up for grabs, what do you have to lose? You can enter via the link in the article![]()
![]()
On 30 October 2024, the Australian Bureau of Statistics (ABS) announced some good news - the Consumer Price Index (CPI) dropped to 2.8%.![]()
![]()
This is significant because it’s the first time since March 2021 that inflation has dipped into the RBA’s sweet spot of 2-3%.![]()
![]()
It’s a refreshing change from the previous quarter’s 3.8%, suggesting that those pesky inflationary pressures might finally be easing after a long stretch of high rates.![]()
![]()
However, before you start celebrating with a mortgage refinance party, it’s wise to temper your expectations about interest rates.![]()
![]()
Experts are advising caution![]()
While the headline inflation figure looks promising, the RBA is still keeping a close eye on underlying inflation which remains above target levels.![]()
![]()
Governor Michele Bullock has made it clear that even though we’re seeing some improvement in overall inflation, we need to see core inflation stabilise before any monetary policy changes can happen.![]()
![]()
So, while it’s nice to see some positive movement in the CPI, it doesn’t automatically mean that interest rates will drop straight away.![]()
![]()
The RBA is likely to take its time in assessing whether these trends are sustainable before making any decisions about cutting rates.![]()
![]()
Implications for cash rates and interest rates in 2025![]()
As we look ahead to 2025, financial analysts predict that the RBA will maintain the current cash rate with potential cuts not anticipated until February 2025.![]()
![]()
The consensus among economists is that a gradual easing of rates could then begin, contingent upon sustained improvements in underlying inflation metrics.![]()
![]()
While there is optimism regarding future rate cuts, the RBA prefers to observe trends rather than react hastily to single data points and is likely to adopt a cautious approach.![]()
![]()
This means that borrowers should prepare for a slow transition rather than an immediate drop in interest rates.![]()
![]()
Preparing for potential interest rate drops![]()
Given the current economic indicators, mortgage clients should consider proactive measures to position themselves favourably as interest rates potentially decline in 2025.![]()
![]()
Here are some steps to take:![]()
![]()
Review your current mortgage![]()
Understand your existing terms and conditions. Identify whether you are on a fixed or variable rate and what penalties might apply if you decide to refinance early.![]()
![]()
Consult with our team![]()
Engaging with our finance team can provide insights into market trends and help you navigate your options effectively. We can offer tailored solutions based on your situation and goals. Lenders have started to offer incentives now, knowing rate drops are imminent.![]()
![]()
Consider refinancing options![]()
If you are currently paying a higher interest rate, it may be beneficial to explore refinancing opportunities now before rates drop further. This could save you money in the long run.![]()
Stay informed about market conditions![]()
![]()
Keep an eye on our industry updates regarding inflation and interest rates. Understanding these trends will empower you to make informed decisions.![]()
![]()
Why you should book an appointment with our team now!![]()
It’s advisable to book an appointment with our finance team sooner rather than later.![]()
![]()
Here’s why:![]()
![]()
Early preparation![]()
Booking an appointment now allows you to discuss your options and strategy well ahead of any potential rate cuts. This proactive approach may give you a competitive edge in securing favourable terms when refinancing or purchasing property.![]()
![]()
Market insights![]()
As we live and work in this industry daily, we have access to up to date market information and can provide valuable insights into timing your refinancing or purchase effectively.![]()
![]()
Tailored financial strategies![]()
Every client’s situation is unique. Working with our finance team will help tailor strategies that align with your finance goals and risk tolerance.![]()
![]()
While the recent drop in the CPI is encouraging and signals a potential shift in monetary policy, mortgage holders should remain cautious and proactive.![]()
![]()
By preparing now and engaging with us, you may position yourself advantageously for the anticipated changes in interest rates throughout 2025.![]()
![]()
Thanks for reading this month’s property and finance update.![]()
![]()
We look forward to hearing from you soon.![]()
![]()
As always…![]()
With your best interest in mind
MEC PF December 2024 CTA Page - Comp - Your Finance News
yourfinancenews.com.au
As the holiday season approaches, many Australians find themselves juggling festive preparations and finance considerations. Whether you’re looking to buy a new home, refinancing your existing mortg...