The Reserve Bank Of Australia has decided to keep the official cash rate on hold at its meeting today. Great news for all mortgage holders. More great news may be ahead, as the Reserve Bank Governor, Glenn Stevens also indicated a possible rate reduction in his statement today.
With all the turmoil in the financial markets at the moment, like the sovereign debt issues in Europe and the United States, some small concerns over growth in Asia and share market volatility, inflation in Australia seems to have abated somewhat.
Real concerns by many Australians of a possible increase in unemployment, house value declines and uncertainty with the global economy has seen spending cut back and an increase in savings. These factors have contributed to inflationary pressures abating, and may give the RBA some real consideration and scope for an easing of current monetary policy (a rate decrease). Lets hope so. Certainly many businesses would welcome a rate decrease, especially those in the retail sector, which have been hit hard by a decrease in spending in recent times.
The official statement by Glenn Stevens, Governor: Monetary Policy Decision –
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
Conditions in global financial markets have continued to be very unsettled, with uncertainty increasing about both the prospects for resolution of the sovereign debt and banking problems in Europe, and the outlook for global economic growth. While temporary impediments that had contributed to a slowing in growth in some countries over recent months are lessening, recent data suggest a continuing period of soft economic conditions in both Europe and the United States. Moreover, the uncertainty and financial volatility have reduced confidence, which could result in more cautious behaviour by firms and households in major countries.
It will take more time for evidence of any effects of the recent European and US financial turbulence on economic activity in other regions to emerge. Thus far, indications are that economic activity is continuing to expand in China and most of Asia. Nonetheless, recent events have led forecasters to reduce their estimates for global GDP growth, which is now expected to be about average this year and next. Prices for commodities have declined over recent weeks, though in general they remain high.
Australia's terms of trade are very high, which has increased national income considerably. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. In other sectors, cautious behaviour by households and the earlier rise in the exchange rate have had a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended. While there remain good reasons to expect solid growth over the medium term, the indications are that the pace of near-term growth is unlikely to be as strong as earlier expected, due both to local and global factors, including the financial turmoil and related effects on business confidence.
Underlying inflation stopped falling and began to increase earlier this year. The Board has been concerned about the prospect of a further pick-up over the period ahead, but over recent months has been weighing the question of whether a period of weaker than expected conditions would contain that pick-up in inflation. Recently revised data show a pick-up to date in the underlying pace of price rises that was less sharp than initially indicated. Moreover, with labour market conditions now a little softer and households more concerned about the possibility of unemployment rising, the likelihood of a significant acceleration in labour costs outside the resources and related sectors is lessening.
Taking into account all the recent information, the path for inflation may now be more consistent with the 2–3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme. This assessment will be reviewed on receipt of further data on prices ahead of the Board's next meeting. An improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary.
The Board noted that financial conditions have been easing somewhat, with interest rates for some housing and business loans declining slightly due to increased competition and the fall in some funding costs in financial markets. The exchange rate has also declined from the very high levels of a few months ago. Credit growth remains low, however, and asset prices have declined.
At today's meeting the Board judged the current cash rate remained appropriate. As always, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like some mortgage information, or to speak to a qualified mortgage broker, please contact me anytime.
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Tuesday, October 4, 2011
Tuesday, August 2, 2011
The RBA Keeps Interest Rates On hold.
The RBA Keeps Interest Rates On hold?
Some great news for mortgage holders today, as The Reserve Bank of Australia kept the official cash rate on hold, at 4.75%. There had been high speculation that the RBA may increase the official cash rate today, but thankfully mortgage holders have been spared a rate rise.
There is still an expectation that the RBA may increase the cash rate in the coming months, but they look like they are taking a wait and see approach, as there is still a fair bit of uncertainty with both European and American public finances.
Credit growth in Australia has declined in recent months, and low by historical standards. House prices too, have also softened over recent months, and with a few other factors, may have helped the RBA decide to keep rates on hold. I personally think this is a great decision for us all.
The official statement from Glenn Stevens, Governor: Monetary Policy Decision: -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries both contributed to the slowing. It is still not clear how persistent this slower growth will be. The supply-chain disruptions are now gradually abating and commodity prices have softened of late, though they generally remain high. In China most indications suggest only a mild slowdown so far.
The central scenario for the world economy over the next couple of years envisaged by most forecasters remains one of growth below the pace of 2010, but at or above long-term averages. Downside risks have increased, however, as concerns have grown over the outlook for the public finances of both Europe and the United States.
Australia's terms of trade are now at very high levels and national income has been growing strongly. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. But in other sectors, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The resumption of coal production continues, but a full recovery of flood-affected production now looks unlikely before early next year. Precautionary behaviour by households also looks likely to keep some areas of demand weaker in the near term than earlier expected. Overall, growth in real GDP through 2011 is now likely to be at about trend. Over the medium term, overall growth is still likely to be at trend or higher, unless the world economy deteriorates noticeably.
Growth in employment has moderated and the unemployment rate has been little changed, near 5 per cent, for some time now. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn, though productivity growth remains weak.
Year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year. As these effects reverse over the next couple of quarters, CPI inflation should decline. But measures that give a better indication of the trend in inflation have begun to rise over the past six months, after declining for the previous two years. While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation.
It is appropriate under such circumstances for monetary policy to exert a degree of restraint. Most financial indicators suggest that it has been doing so, as a result of the Board's decisions last year. Credit growth has declined over recent months and is very subdued by historical standards, even with evidence of greater willingness to lend. Most asset prices, including housing prices, have also softened over recent months. The exchange rate is high. Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.
At today's meeting, the Board considered whether the recent information warranted further policy tightening. On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, please contact me anytime. I work the Perth metro area.
Some great news for mortgage holders today, as The Reserve Bank of Australia kept the official cash rate on hold, at 4.75%. There had been high speculation that the RBA may increase the official cash rate today, but thankfully mortgage holders have been spared a rate rise.
There is still an expectation that the RBA may increase the cash rate in the coming months, but they look like they are taking a wait and see approach, as there is still a fair bit of uncertainty with both European and American public finances.
Credit growth in Australia has declined in recent months, and low by historical standards. House prices too, have also softened over recent months, and with a few other factors, may have helped the RBA decide to keep rates on hold. I personally think this is a great decision for us all.
The official statement from Glenn Stevens, Governor: Monetary Policy Decision: -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries both contributed to the slowing. It is still not clear how persistent this slower growth will be. The supply-chain disruptions are now gradually abating and commodity prices have softened of late, though they generally remain high. In China most indications suggest only a mild slowdown so far.
The central scenario for the world economy over the next couple of years envisaged by most forecasters remains one of growth below the pace of 2010, but at or above long-term averages. Downside risks have increased, however, as concerns have grown over the outlook for the public finances of both Europe and the United States.
Australia's terms of trade are now at very high levels and national income has been growing strongly. Investment in the resources sector is picking up very strongly and some related service sectors are enjoying better than average conditions. But in other sectors, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The resumption of coal production continues, but a full recovery of flood-affected production now looks unlikely before early next year. Precautionary behaviour by households also looks likely to keep some areas of demand weaker in the near term than earlier expected. Overall, growth in real GDP through 2011 is now likely to be at about trend. Over the medium term, overall growth is still likely to be at trend or higher, unless the world economy deteriorates noticeably.
Growth in employment has moderated and the unemployment rate has been little changed, near 5 per cent, for some time now. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn, though productivity growth remains weak.
Year-ended CPI inflation has been high, affected by the extreme weather events earlier in the year. As these effects reverse over the next couple of quarters, CPI inflation should decline. But measures that give a better indication of the trend in inflation have begun to rise over the past six months, after declining for the previous two years. While they have, to date, remained consistent with the 2–3 per cent target on a year-ended basis, the Board remains concerned about the medium-term outlook for inflation.
It is appropriate under such circumstances for monetary policy to exert a degree of restraint. Most financial indicators suggest that it has been doing so, as a result of the Board's decisions last year. Credit growth has declined over recent months and is very subdued by historical standards, even with evidence of greater willingness to lend. Most asset prices, including housing prices, have also softened over recent months. The exchange rate is high. Each of these variables is affected by other factors as well, but together they point to financial conditions being tighter than normal.
At today's meeting, the Board considered whether the recent information warranted further policy tightening. On balance, the Board judged that it was prudent to maintain the current setting of monetary policy, particularly in view of the acute sense of uncertainty in global financial markets over recent weeks. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, please contact me anytime. I work the Perth metro area.
Saturday, July 30, 2011
How Much Deposit Do I Need To Buy A $475,000 Home In Western Australia?
How Much Deposit Do I Need To Buy A $475,000 Home?
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $475,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $475,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $475,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($475,000 Property).
Property Purchase Price - $475,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,700 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $479,650 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
You will need $23,750 deposit, as a first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $479,650
Minus Your Deposit - $23,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $448,900
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $475,000 property, with a $448,900 home loan, the mortgage insurance fee would be approximately $14,316 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $448,900
+
Mortgage Insurance Fee $14,316
Total Home Loan $463,216
Your approx repayments on a $463,216 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,112.96 per month,
Buying Your Next Home Or Investment Property ($475,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $475,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $475,000
Transfer Stamp Duty - $16,578
Settlement Agent Fee - $1,700 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $496,228 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
Plus Fees (as above) $21,228
Total Deposit Required $44,978
You will need $44,978 deposit, as a non first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $496,228
Minus Your Deposit - $44,978
Home Loan Required - $451,250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $475,000 property, with a $451,250 home loan, the mortgage insurance fee would be approximately $14,391 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $451,250
+
Mortgage Insurance Fee $14,391
Total Home Loan $465,641
Your approx repayments on a $465,641 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,129.26 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $475,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $475,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $475,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $475,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($475,000 Property).
Property Purchase Price - $475,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,700 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $479,650 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
You will need $23,750 deposit, as a first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $479,650
Minus Your Deposit - $23,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $448,900
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $475,000 property, with a $448,900 home loan, the mortgage insurance fee would be approximately $14,316 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $448,900
+
Mortgage Insurance Fee $14,316
Total Home Loan $463,216
Your approx repayments on a $463,216 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,112.96 per month,
Buying Your Next Home Or Investment Property ($475,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $475,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $475,000
Transfer Stamp Duty - $16,578
Settlement Agent Fee - $1,700 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $496,228 (Including The Fees)
Deposit Required $23,750 (5% of $475,000)
Plus Fees (as above) $21,228
Total Deposit Required $44,978
You will need $44,978 deposit, as a non first home buyer to purchase a property costing $475,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $475,000 in Western Australia –
Purchase price (including fees) - $496,228
Minus Your Deposit - $44,978
Home Loan Required - $451,250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $475,000 property, with a $451,250 home loan, the mortgage insurance fee would be approximately $14,391 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $451,250
+
Mortgage Insurance Fee $14,391
Total Home Loan $465,641
Your approx repayments on a $465,641 home loan over 30 years, at an average mortgage interest rate of 7.1% is $3,129.26 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $475,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Sunday, July 17, 2011
How Much Deposit Do I Need To Buy A $450,000 Home?
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $450,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $450,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $450,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($450,000 Property).
Property Purchase Price - $450,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,600 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $454,550 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
You will need $22,500 deposit, as a first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $454,550
Minus Your Deposit - $22,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $425,050
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $450,000 property, with a $425,050 home loan, the mortgage insurance fee would be approximately $13,555 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $425,050
+
Mortgage Insurance Fee $13,555
Total Home Loan $438,065
Your approx repayments on a $438,065 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,947.57 per month,
Buying Your Next Home Or Investment Property ($450,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $450,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $450,000
Transfer Stamp Duty - $15,390
Settlement Agent Fee - $1,600 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $469,940 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
Plus Fees (as above) $19,940
Total Deposit Required $42,440
You will need $32,440 deposit, as a non first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $469,940
Minus Your Deposit - $42,440
Home Loan Required - $427,500
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $450,000 property, with a $427,500 home loan, the mortgage insurance fee would be approximately $13,634 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $427,500
+
Mortgage Insurance Fee $13,634
Total Home Loan $441,134
Your approx repayments on a $441,134 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,964.56 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $450,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Lets look at how much deposit you need to purchase a $450,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $450,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($450,000 Property).
Property Purchase Price - $450,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,600 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $454,550 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
You will need $22,500 deposit, as a first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $454,550
Minus Your Deposit - $22,500
Minus The First Home Owners Grant - $7,000
Home Loan Required $425,050
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $450,000 property, with a $425,050 home loan, the mortgage insurance fee would be approximately $13,555 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $425,050
+
Mortgage Insurance Fee $13,555
Total Home Loan $438,065
Your approx repayments on a $438,065 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,947.57 per month,
Buying Your Next Home Or Investment Property ($450,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $450,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $450,000
Transfer Stamp Duty - $15,390
Settlement Agent Fee - $1,600 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $469,940 (Including The Fees)
Deposit Required $22,500 (5% of $450,000)
Plus Fees (as above) $19,940
Total Deposit Required $42,440
You will need $32,440 deposit, as a non first home buyer to purchase a property costing $450,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $450,000 in Western Australia –
Purchase price (including fees) - $469,940
Minus Your Deposit - $42,440
Home Loan Required - $427,500
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $450,000 property, with a $427,500 home loan, the mortgage insurance fee would be approximately $13,634 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $427,500
+
Mortgage Insurance Fee $13,634
Total Home Loan $441,134
Your approx repayments on a $441,134 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,964.56 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $450,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, Western Australia, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Sunday, July 3, 2011
Why Get Pre Approved Mortgage Finance?
This is an email question from Thom in West Leederville. His question asks – I am considering buying an investment property, and I am wondering whether I should get pre approved mortgage finance? What are the benefits if I do? And what cost is involved?
This is a good question, and one I get asked all the time. Ok, firstly lets look at what pre approved mortgage finance is.
With pre approved mortgage finance, you would generally meet you’re your mortgage broker, and learn how much you could borrow. Then once you have decided on how much your pre approved home loan will be, you will need all the paperwork required to get a home loan.
Most banks or lenders, with pre approved mortgage finance, check the paperwork, do a credit check, and then, hopefully pre approve your mortgage application. Also too with pre approved mortgage finance, the pre approved home loan limit, is an up to amount, so if you find a cheaper property, or don’t need to use the full pre approved home loan limit, then that is fine. For example, if you have a $400,000 pre approval in place, but only need a $250,000 home loan, then that is ok, as your limit you applied for was $400,000.
If you need more than your pre approved limit, provided you have talked to your mortgage broker beforehand, and have ascertained how much you can borrow, you should be ok to increase the pre approved amount, with your application.
Pre approved mortgage finance, with most banks and lenders generally has no cost, and the pre approval lasts on average for 3 months, with most lenders. It is important when you are speaking to your mortgage broker to know all the possible costs associated with any pre approval mortgage application.
If your pre approved mortgage finance expires, it still generally costs nothing with most banks and lenders, to apply for another pre approval.
There are many advantages to pre approved mortgage finance. Some advantages include –
You know how much you can borrow
You have the peace of mind knowing that you finance is pre approved.
A real estate agent may take your offer more seriously, knowing that you have pre-approved finance in place
The pre-approved finance may give you more negotiating power on the property you are thinking of purchasing, as your finance has been pre approved, giving the seller more confidence in your finance application.
Because you have a pre approval in place, most banks and lenders, will be quicker assessing your home loan application, as they have already done part of the work with your pre approval application.
A pre approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property. The bank or lender will still generally speaking value the property you have brought, re check your paperwork, and do employment checks. Generally speaking though, if your home loan has been pre approved, your formal finance application (when your find the property),. Should be more than likely approved.
If you have any comments, please leave below. If you would like more personal finance information, or to use my services as a mortgage broker, please contact me anytime.
This is a good question, and one I get asked all the time. Ok, firstly lets look at what pre approved mortgage finance is.
With pre approved mortgage finance, you would generally meet you’re your mortgage broker, and learn how much you could borrow. Then once you have decided on how much your pre approved home loan will be, you will need all the paperwork required to get a home loan.
Most banks or lenders, with pre approved mortgage finance, check the paperwork, do a credit check, and then, hopefully pre approve your mortgage application. Also too with pre approved mortgage finance, the pre approved home loan limit, is an up to amount, so if you find a cheaper property, or don’t need to use the full pre approved home loan limit, then that is fine. For example, if you have a $400,000 pre approval in place, but only need a $250,000 home loan, then that is ok, as your limit you applied for was $400,000.
If you need more than your pre approved limit, provided you have talked to your mortgage broker beforehand, and have ascertained how much you can borrow, you should be ok to increase the pre approved amount, with your application.
Pre approved mortgage finance, with most banks and lenders generally has no cost, and the pre approval lasts on average for 3 months, with most lenders. It is important when you are speaking to your mortgage broker to know all the possible costs associated with any pre approval mortgage application.
If your pre approved mortgage finance expires, it still generally costs nothing with most banks and lenders, to apply for another pre approval.
There are many advantages to pre approved mortgage finance. Some advantages include –
You know how much you can borrow
You have the peace of mind knowing that you finance is pre approved.
A real estate agent may take your offer more seriously, knowing that you have pre-approved finance in place
The pre-approved finance may give you more negotiating power on the property you are thinking of purchasing, as your finance has been pre approved, giving the seller more confidence in your finance application.
Because you have a pre approval in place, most banks and lenders, will be quicker assessing your home loan application, as they have already done part of the work with your pre approval application.
A pre approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property. The bank or lender will still generally speaking value the property you have brought, re check your paperwork, and do employment checks. Generally speaking though, if your home loan has been pre approved, your formal finance application (when your find the property),. Should be more than likely approved.
If you have any comments, please leave below. If you would like more personal finance information, or to use my services as a mortgage broker, please contact me anytime.
Sunday, June 26, 2011
Why Compare Your Mortgage?
This is an email question from Steve in Leederville. His question asks - I have had my home loan for a couple of years, and have noticed that some banks are offering cheaper interest rates. My question is, should I compare my home loan?
It is important to know what your home loan interest rates are. It is also important to know if you are paying monthly or annual fees, and the features that your current home loan has.
You may be able to save a fair bit of money too, if another or new home loan product has come to the market, and may suit your current needs better.
A call or email to a mortgage broker, may help you get through the maze of comparing your home loan. Mortgage Brokers are paid commissions by banks or lenders, and most mortgage broker do not charge a fee (I Don’t, if your not sure, just ask your broker).
A good mortgage broker, should compare your current home loan, to other products on offer, plus the possible costs associated with either switching your home loan with your current lender, or switching to another bank, versus the savings you may receive.
It really costs nothing to compare your home loan, just a little bit of your time. In the case with Steve, the email question, we were able to switch his home loan to a different mortgage with the bank he was with, saving any possible exit fees. Steve’s interest rate was reduced from 7.4% to 7.1% on his $300,000 home loan. His savings were approx $66 a month, which is quite a significant saving. The bank fee, to switch his loan was $300, so the fee to switch the loan, will be repaid within the first 5 months of starting his new home loan.
If you would like a home loan health check, or to speak to a qualified mortgage broker, please contact me anytime.
It is important to know what your home loan interest rates are. It is also important to know if you are paying monthly or annual fees, and the features that your current home loan has.
You may be able to save a fair bit of money too, if another or new home loan product has come to the market, and may suit your current needs better.
A call or email to a mortgage broker, may help you get through the maze of comparing your home loan. Mortgage Brokers are paid commissions by banks or lenders, and most mortgage broker do not charge a fee (I Don’t, if your not sure, just ask your broker).
A good mortgage broker, should compare your current home loan, to other products on offer, plus the possible costs associated with either switching your home loan with your current lender, or switching to another bank, versus the savings you may receive.
It really costs nothing to compare your home loan, just a little bit of your time. In the case with Steve, the email question, we were able to switch his home loan to a different mortgage with the bank he was with, saving any possible exit fees. Steve’s interest rate was reduced from 7.4% to 7.1% on his $300,000 home loan. His savings were approx $66 a month, which is quite a significant saving. The bank fee, to switch his loan was $300, so the fee to switch the loan, will be repaid within the first 5 months of starting his new home loan.
If you would like a home loan health check, or to speak to a qualified mortgage broker, please contact me anytime.
Monday, June 13, 2011
How Much Deposit Do I Need To Buy A $425,000 Home
How Much Deposit Do I Need To Buy A $425,000 Home.
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $425,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $425,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $425,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($425,000 Property).
Property Purchase Price - $425,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,550 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $429,600 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
You will need $21,250 deposit, as a first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $429,600
Minus Your Deposit - $21,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $401,350
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $425,000 property, with a $401,350 home loan, the mortgage insurance fee would be approximately $12,799 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $401,350
+
Mortgage Insurance Fee $12,799
Total Home Loan $414,149
Your approx repayments on a $414,149 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2783.21.48 per month,
Buying Your Next Home Or Investment Property ($425,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $425,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $425,000
Transfer Stamp Duty - $14,203
Settlement Agent Fee - $1,550 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $443,703 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
Plus Fees (as above) $18,703
Total Deposit Required $39,953
You will need $39,953 deposit, as a non first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $443,703
Minus Your Deposit - $39,953
Home Loan Required - $403,750
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $425,000 property, with a $403,750 home loan, the mortgage insurance fee would be approximately $12,875 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $403,750
+
Mortgage Insurance Fee $12,875
Total Home Loan $416,625
Your approx repayments on a $416,625 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,799.85 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $425,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $425,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $425,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $425,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($425,000 Property).
Property Purchase Price - $425,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,550 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $429,600 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
You will need $21,250 deposit, as a first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $429,600
Minus Your Deposit - $21,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $401,350
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $425,000 property, with a $401,350 home loan, the mortgage insurance fee would be approximately $12,799 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $401,350
+
Mortgage Insurance Fee $12,799
Total Home Loan $414,149
Your approx repayments on a $414,149 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2783.21.48 per month,
Buying Your Next Home Or Investment Property ($425,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $425,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $425,000
Transfer Stamp Duty - $14,203
Settlement Agent Fee - $1,550 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $443,703 (Including The Fees)
Deposit Required $21,250 (5% of $425,000)
Plus Fees (as above) $18,703
Total Deposit Required $39,953
You will need $39,953 deposit, as a non first home buyer to purchase a property costing $425,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $425,000 in Western Australia –
Purchase price (including fees) - $443,703
Minus Your Deposit - $39,953
Home Loan Required - $403,750
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $425,000 property, with a $403,750 home loan, the mortgage insurance fee would be approximately $12,875 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $403,750
+
Mortgage Insurance Fee $12,875
Total Home Loan $416,625
Your approx repayments on a $416,625 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,799.85 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $425,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Tuesday, June 7, 2011
The RBA Keeps Interest Rates On Hold
Some great news today for mortgage holders in Australia, with the decision by The Reserve Bank Of Australia to keep the official cash rate on hold at 4.75%.
It has been an interesting year to date, with many natural disasters possibly causing Australia’s biggest fall in GDP (Gross Domestic Product) in 20 years. Although inflation has increased this year, the RBA expects that this will possibly dissipate as recovery from the natural disasters occurs.
There is still some worry with the sovereign debt crisis in parts of Europe, and credit growth in Australia still remains quite subdued. There has been some softening in some housing markets around Australia; hence the RBA has decided that the current official cash rate of 4.75% is appropriate.
Lets hope they stay on hold for a while.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.
Australia's terms of trade are reaching very high levels and national income has been growing strongly. Private investment is picking up, led by very large capital spending programs in the resources sector, in response to high levels of commodity prices. Outside the resources sector, investment intentions have been revised lower recently. In the household sector thus far, there continues to be a degree of caution in spending and borrowing and a higher rate of saving out of current income. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand. The resumption of coal production in flooded mines is taking longer than initially expected, but production levels are now increasing again and there will be a mild boost to demand from the broader rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has softened, as have housing prices. The exchange rate remains, in real effective terms, close to its highest level in several decades. If sustained, this could be expected to exert continued restraint on the traded sector.
CPI inflation has risen over the past year, reflecting the effects of extreme weather and rises in utilities prices, with lower prices for traded goods providing some offset. The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
It has been an interesting year to date, with many natural disasters possibly causing Australia’s biggest fall in GDP (Gross Domestic Product) in 20 years. Although inflation has increased this year, the RBA expects that this will possibly dissipate as recovery from the natural disasters occurs.
There is still some worry with the sovereign debt crisis in parts of Europe, and credit growth in Australia still remains quite subdued. There has been some softening in some housing markets around Australia; hence the RBA has decided that the current official cash rate of 4.75% is appropriate.
Lets hope they stay on hold for a while.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.
Australia's terms of trade are reaching very high levels and national income has been growing strongly. Private investment is picking up, led by very large capital spending programs in the resources sector, in response to high levels of commodity prices. Outside the resources sector, investment intentions have been revised lower recently. In the household sector thus far, there continues to be a degree of caution in spending and borrowing and a higher rate of saving out of current income. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.
The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand. The resumption of coal production in flooded mines is taking longer than initially expected, but production levels are now increasing again and there will be a mild boost to demand from the broader rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has softened, as have housing prices. The exchange rate remains, in real effective terms, close to its highest level in several decades. If sustained, this could be expected to exert continued restraint on the traded sector.
CPI inflation has risen over the past year, reflecting the effects of extreme weather and rises in utilities prices, with lower prices for traded goods providing some offset. The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
Thursday, June 2, 2011
How Much Deposit Do I Need To Buy A $400,000 Home.
Time for my next article, with the how much deposit do I need series, we will look at how much deposit do you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $400,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($400,000 Property).
Property Purchase Price - $400,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $404,450 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
You will need $20,000 deposit, as a first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $404,450
Minus Your Deposit - $20,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $377,450
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $377,450 home loan, the mortgage insurance fee would be approximately $12,037 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $377,450
+
Mortgage Insurance Fee $12,037
Total Home Loan $389,487
Your approx repayments on a $389,487 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2617.48 per month,
Buying Your Next Home Or Investment Property ($400,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $400,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $400,000
Transfer Stamp Duty - $13,015
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $417,465 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
Plus Fees (as above) $17,465
Total Deposit Required $37,465
You will need $37,465 deposit, as a non first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $417,465
Minus Your Deposit - $37,465
Home Loan Required - $380,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $380,000 home loan, the mortgage insurance fee would be approximately $12,118 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $380,000
+
Mortgage Insurance Fee $12,118
Total Home Loan $392,118
Your approx repayments on a $392,118 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,635.16 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $400,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Lets look at how much deposit you need to purchase a $400,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $400,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($400,000 Property).
Property Purchase Price - $400,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $404,450 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
You will need $20,000 deposit, as a first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $404,450
Minus Your Deposit - $20,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $377,450
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $377,450 home loan, the mortgage insurance fee would be approximately $12,037 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $377,450
+
Mortgage Insurance Fee $12,037
Total Home Loan $389,487
Your approx repayments on a $389,487 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2617.48 per month,
Buying Your Next Home Or Investment Property ($400,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $400,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $400,000
Transfer Stamp Duty - $13,015
Settlement Agent Fee - $1,500 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $417,465 (Including The Fees)
Deposit Required $20,000 (5% of $400,000)
Plus Fees (as above) $17,465
Total Deposit Required $37,465
You will need $37,465 deposit, as a non first home buyer to purchase a property costing $400,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $400,000 in Western Australia –
Purchase price (including fees) - $417,465
Minus Your Deposit - $37,465
Home Loan Required - $380,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $400,000 property, with a $380,000 home loan, the mortgage insurance fee would be approximately $12,118 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $380,000
+
Mortgage Insurance Fee $12,118
Total Home Loan $392,118
Your approx repayments on a $392,118 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,635.16 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $400,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Monday, May 30, 2011
How Much Deposit Do I Need To Buy A $375,000 Home In Western Australia
How Much Deposit Do I Need To Buy A $375,000 Home.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $375,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($375,000 Property).
Property Purchase Price - $375,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $379,350 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
You will need $18,750 deposit, as a first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $379,350
Minus Your Deposit - $18,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $353,600
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $353,600 home loan, the mortgage insurance fee would be approximately $11,277 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $353,600
+
Mortgage Insurance Fee $11,277
Total Home Loan $364,877
Your approx repayments on a $364,977 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2452.09 per month,
Buying Your Next Home Or Investment Property ($375,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $375,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $375,000
Transfer Stamp Duty - $11,828
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $391,178 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
Plus Fees (as above) $16,178
Total Deposit Required $34,928
You will need $34,928 deposit, as a non first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $391,178
Minus Your Deposit - $34,928
Home Loan Required - $356.250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $356,250 home loan, the mortgage insurance fee would be approximately $11,361 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $356,250
+
Mortgage Insurance Fee $11,361
Total Home Loan $367,611
Your approx repayments on a $367,611 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,470.46 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $375,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $375,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $375,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($375,000 Property).
Property Purchase Price - $375,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $379,350 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
You will need $18,750 deposit, as a first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $379,350
Minus Your Deposit - $18,750
Minus The First Home Owners Grant - $7,000
Home Loan Required $353,600
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $353,600 home loan, the mortgage insurance fee would be approximately $11,277 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $353,600
+
Mortgage Insurance Fee $11,277
Total Home Loan $364,877
Your approx repayments on a $364,977 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2452.09 per month,
Buying Your Next Home Or Investment Property ($375,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $375,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $375,000
Transfer Stamp Duty - $11,828
Settlement Agent Fee - $1,400 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $391,178 (Including The Fees)
Deposit Required $18,750 (5% of $375,000)
Plus Fees (as above) $16,178
Total Deposit Required $34,928
You will need $34,928 deposit, as a non first home buyer to purchase a property costing $375,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $375,000 in Western Australia –
Purchase price (including fees) - $391,178
Minus Your Deposit - $34,928
Home Loan Required - $356.250
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $375,000 property, with a $356,250 home loan, the mortgage insurance fee would be approximately $11,361 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $356,250
+
Mortgage Insurance Fee $11,361
Total Home Loan $367,611
Your approx repayments on a $367,611 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,470.46 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $375,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Wednesday, May 18, 2011
How Much Deposit Do I Need To Buy A $325,000 Home.
My next article, with the how much deposit do I need series, is looking at how much deposit do you need to purchase a $325,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc or investment property). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Lets look at how much deposit you need to purchase a $325,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $325,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($325,000 Property).
Property Purchase Price - $325,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,300 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $329,250 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
You will need $16,250 deposit, as a first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $329,250
Minus Your Deposit - $16,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $306,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $325,000 property, with a $306,000 home loan, the mortgage insurance fee would be approximately $9,758 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $306,000
+
Mortgage Insurance Fee $9,758
Total Home Loan $315,758
Your approx repayments on a $315,758 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2121.99 per month,
Buying Your Next Home Or Investment Property ($325,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $325,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $325,000
Transfer Stamp Duty - $9,785
Settlement Agent Fee - $1,300 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $339,035 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
Plus Fees (as above) $14,035
Total Deposit Required $30,285
You will need $30,285 deposit, as a non first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $339,035
Minus Your Deposit - $30,285
Home Loan Required - $308,750
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $325,000 property, with a $308,750 home loan, the mortgage insurance fee would be approximately $9,847 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $308,750
+
Mortgage Insurance Fee $9,847
Total Home Loan $318,597
Your approx repayments on a $318,597 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,141.07 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $325,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Lets look at how much deposit you need to purchase a $325,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $325,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($325,000 Property).
Property Purchase Price - $325,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,300 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $329,250 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
You will need $16,250 deposit, as a first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $329,250
Minus Your Deposit - $16,250
Minus The First Home Owners Grant - $7,000
Home Loan Required $306,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $325,000 property, with a $306,000 home loan, the mortgage insurance fee would be approximately $9,758 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $306,000
+
Mortgage Insurance Fee $9,758
Total Home Loan $315,758
Your approx repayments on a $315,758 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2121.99 per month,
Buying Your Next Home Or Investment Property ($325,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $325,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $325,000
Transfer Stamp Duty - $9,785
Settlement Agent Fee - $1,300 (Approx)
Balance Of Water Shire Rates - $2,000 (Approx)
Mortgage Registration / Legal Fees - $350 (approx)
Bank Application Fee - $600 ( Some mortgages have no application fee)
Total including Fees - $339,035 (Including The Fees)
Deposit Required $16,250 (5% of $325,000)
Plus Fees (as above) $14,035
Total Deposit Required $30,285
You will need $30,285 deposit, as a non first home buyer to purchase a property costing $325,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $325,000 in Western Australia –
Purchase price (including fees) - $339,035
Minus Your Deposit - $30,285
Home Loan Required - $308,750
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $325,000 property, with a $308,750 home loan, the mortgage insurance fee would be approximately $9,847 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $308,750
+
Mortgage Insurance Fee $9,847
Total Home Loan $318,597
Your approx repayments on a $318,597 home loan over 30 years, at an average mortgage interest rate of 7.1% is $2,141.07 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $325,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Saturday, May 14, 2011
How Much Deposit Do I Need To Buy A $300,000 Home
am asked this all the time, how much deposit is required to purchase a home. For the next week or so, I will post different purchase prices for a property, and how much deposit you need as a first home buyer and non first home buyer in Western Australia. We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your next home.
Today we will look at how much deposit you need to purchase a $300,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $300,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($300,000 Property).
Property Purchase Price - $300,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,200 (Approx)
Balance Of Water Shire Rates -$2,000 (Approx)
Mortgage Registration / Legal Fees -$350 (approx)
Bank Application Fee -$600 ( Some mortgages have no application fee)
Total including Fees - $304,150 (Including The Fees)
Deposit Required $15,000 (5% of $300,000)
You will need $15,000 deposit, as a first home buyer to purchase a property costing $300,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $300,000 in Western Australia –
Purchase price (including fees) - $304,150
Minus Your Deposit -$15,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $282,150
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $300,000 property, with a $282,150 home loan, the mortgage insurance fee would be approximately $7,629 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $282,150
+
Mortgage Insurance Fee $7,629
Total Home Loan $289,779
Your approx repayments on a $289,779 home loan over 30 years, at an average mortgage interest rate of 7.1% is $1947.41 per month,
Buying Your Next Home Or Investment Property ($300,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $300,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $300,000
Transfer Stamp Duty - $8,835
Settlement Agent Fee - $1,200 (Approx)
Balance Of Water Shire Rates -$2,000 (Approx)
Mortgage Registration / Legal Fees -$350 (approx)
Bank Application Fee -$600 ( Some mortgages have no application fee)
Total including Fees - $312,985 (Including The Fees)
Deposit Required $15,000 (5% of $300,000)
Plus Fees (as above) $12,985
Total Deposit Required $27,985
You will need $27,985 deposit, as a non first home buyer to purchase a property costing $300,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $300,000 in Western Australia –
Purchase price (including fees) - $312,985
Minus Your Deposit -$27,985
Home Loan Required - $285,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $300,000 property, with a $285,000 home loan, the mortgage insurance fee would be approximately $7,712 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $285,000
+
Mortgage Insurance Fee $7,712
Total Home Loan $292,712
Your approx repayments on a $292,712 home loan over 30 years, at an average mortgage interest rate of 7.1% is $1967.12 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $300,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Today we will look at how much deposit you need to purchase a $300,000 property in Western Australia, both as a first home buyer, and non first home buyer. We will look at the minimum deposit required, which with most banks or lenders is 5% of the purchase price, plus the associated fees. Of course the more deposit you have the better, and generally speaking your 5% deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $300,000 property in Western Australia (unless you have a guarantor for your home loan, which you may not need a deposit at all) -
First Home Buyers ($300,000 Property).
Property Purchase Price - $300,000
Transfer Stamp Duty - $0
Settlement Agent Fee - $1,200 (Approx)
Balance Of Water Shire Rates -$2,000 (Approx)
Mortgage Registration / Legal Fees -$350 (approx)
Bank Application Fee -$600 ( Some mortgages have no application fee)
Total including Fees - $304,150 (Including The Fees)
Deposit Required $15,000 (5% of $300,000)
You will need $15,000 deposit, as a first home buyer to purchase a property costing $300,000 in Western Australia.
To work out your how much your home loan would be, as a first home buyer purchasing your home for $300,000 in Western Australia –
Purchase price (including fees) - $304,150
Minus Your Deposit -$15,000
Minus The First Home Owners Grant - $7,000
Home Loan Required $282,150
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $300,000 property, with a $282,150 home loan, the mortgage insurance fee would be approximately $7,629 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $282,150
+
Mortgage Insurance Fee $7,629
Total Home Loan $289,779
Your approx repayments on a $289,779 home loan over 30 years, at an average mortgage interest rate of 7.1% is $1947.41 per month,
Buying Your Next Home Or Investment Property ($300,000 Property).
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You can still purchase a home with as little as 5% deposit, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty, settlement agent fees, balance of the shire and water rates.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $300,000 property, if you are buying your next home or an investment property in Western Australia –
Property Purchase Price - $300,000
Transfer Stamp Duty - $8,835
Settlement Agent Fee - $1,200 (Approx)
Balance Of Water Shire Rates -$2,000 (Approx)
Mortgage Registration / Legal Fees -$350 (approx)
Bank Application Fee -$600 ( Some mortgages have no application fee)
Total including Fees - $312,985 (Including The Fees)
Deposit Required $15,000 (5% of $300,000)
Plus Fees (as above) $12,985
Total Deposit Required $27,985
You will need $27,985 deposit, as a non first home buyer to purchase a property costing $300,000 in Western Australia.
To work out your how much your home loan would be, as a non first home buyer purchasing your home for $300,000 in Western Australia –
Purchase price (including fees) - $312,985
Minus Your Deposit -$27,985
Home Loan Required - $285,000
When you borrow more than 80% of the property value, you will pay a once off mortgage insurance fee, which with most banks can be added to the home loan.
Based on purchasing a $300,000 property, with a $285,000 home loan, the mortgage insurance fee would be approximately $7,712 (this fee will vary between the lenders). This fee can generally be added to the home loan. The more deposit you have, the cheaper the mortgage insurance fee will be. Lets add the mortgage insurance fee to the home loan and see what your total home loan will be, and the monthly repayments -
Home Loan $285,000
+
Mortgage Insurance Fee $7,712
Total Home Loan $292,712
Your approx repayments on a $292,712 home loan over 30 years, at an average mortgage interest rate of 7.1% is $1967.12 per month.
This is an approximate guide to how much deposit you will need to purchase a property costing $300,000 in Western Australia. If you are unsure, or would like more advice specific to your own personal situation, please contact me anytime. I am a mortgage broker, based in Yokine, with many years of experience. If you have any comments, please leave below, I enjoy reading your feedback.
Tuesday, May 3, 2011
The Reserve Bank Keeps Mortgage Interest Rates On Hold.
Some Welcome relief for mortgage holders today ( May 3, 2011) with the Reserve Bank Of Australia keeping the official cash rate on hold. At its meeting today, the board decided that even though there is an increase in inflation, this is mainly due to the recent natural disasters. Unemployment remains steady at around 5%, and there is still some concern over the sovereign debts through parts of Europe.
Australia’s terms of trade at records levels, and wage growth seems to have been significant throughout Australia. Credit growth remains subdued, and there has been some softening of house prices through out Australia. At this stage, at least for the short term, it looks like the official cash rate may stay on hold, which is great news for all Australian mortgage holders.
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products further afield. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty remains over the prospects for resolution of the banking and sovereign debt issues in Europe.
Australia's terms of trade are reaching higher levels than assumed a few months ago, and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income.
The natural disasters over the summer have reduced output in some key sectors and the resumption of coal production in flooded mines is taking longer than initially expected. It is likely this caused a decline in real GDP in the March quarter. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has resumed growth after a period of contraction. Growth in credit to households, on the other hand, has softened recently, as have housing prices in several cities. The exchange rate has risen further and, in real effective terms, is at its highest level in several decades. This, if sustained, could be expected to exert additional restraint on the traded sector.
Recent data on inflation show the effects of production losses due to the floods and Cyclone Yasi. The affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the year ahead.
Looking through these short-term movements, however, the recent information suggests that the marked decline in underlying inflation from the peak in 2008 has now run its course. While the rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters, over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like some more personal mortgage advice, or to use my services as an experienced mortgage broker, please contact me anytime.
Australia’s terms of trade at records levels, and wage growth seems to have been significant throughout Australia. Credit growth remains subdued, and there has been some softening of house prices through out Australia. At this stage, at least for the short term, it looks like the official cash rate may stay on hold, which is great news for all Australian mortgage holders.
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products further afield. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty remains over the prospects for resolution of the banking and sovereign debt issues in Europe.
Australia's terms of trade are reaching higher levels than assumed a few months ago, and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income.
The natural disasters over the summer have reduced output in some key sectors and the resumption of coal production in flooded mines is taking longer than initially expected. It is likely this caused a decline in real GDP in the March quarter. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.
Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has resumed growth after a period of contraction. Growth in credit to households, on the other hand, has softened recently, as have housing prices in several cities. The exchange rate has risen further and, in real effective terms, is at its highest level in several decades. This, if sustained, could be expected to exert additional restraint on the traded sector.
Recent data on inflation show the effects of production losses due to the floods and Cyclone Yasi. The affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the year ahead.
Looking through these short-term movements, however, the recent information suggests that the marked decline in underlying inflation from the peak in 2008 has now run its course. While the rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters, over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.
If you have any questions or comments, please leave below. If you would like some more personal mortgage advice, or to use my services as an experienced mortgage broker, please contact me anytime.
Monday, May 2, 2011
Can Child Maintenance Be Used As Income For A Mortgage?
This is an email question from Julie in Menora. The question asks; I work full time and I have two children from a previous marriage. I receive child maintenance from my children’s father; can I use this income to help apply for a mortgage?
A good question that I receive a fair bit. The good news is some banks and lenders will consider using child maintenance when applying for a mortgage. Not all banks or lenders do, and some banks or lender may only consider 30% to 50% of the child maintenance income received, but there are banks and lenders that will use 100% of the payment received when you are applying for a home loan.
Most of the banks or lenders that will consider child maintenance as income will require certain criteria and paperwork to prove that is regular and ongoing income.
The type of criteria and paperwork that a bank or lender may require to prove that the child maintenance is acceptable to use as income to apply for a home loan–
•A court order or a CSA (Child Support Agency) agreement showing the date the agreement was reached, and how much the payments should be.
•3 to 6 months bank statements, showing that the payments have been made regularly and on time.
•Some banks or lenders may use the child maintenance income if the children are 12 years of age or younger.
It can be a little confusing, so if you have any questions about what the banks will consider as income, please contact me anytime. I am a qualified mortgage broker, with many years of home loan experience. If you have any comments, please leave below, we love hearing your feedback
A good question that I receive a fair bit. The good news is some banks and lenders will consider using child maintenance when applying for a mortgage. Not all banks or lenders do, and some banks or lender may only consider 30% to 50% of the child maintenance income received, but there are banks and lenders that will use 100% of the payment received when you are applying for a home loan.
Most of the banks or lenders that will consider child maintenance as income will require certain criteria and paperwork to prove that is regular and ongoing income.
The type of criteria and paperwork that a bank or lender may require to prove that the child maintenance is acceptable to use as income to apply for a home loan–
•A court order or a CSA (Child Support Agency) agreement showing the date the agreement was reached, and how much the payments should be.
•3 to 6 months bank statements, showing that the payments have been made regularly and on time.
•Some banks or lenders may use the child maintenance income if the children are 12 years of age or younger.
It can be a little confusing, so if you have any questions about what the banks will consider as income, please contact me anytime. I am a qualified mortgage broker, with many years of home loan experience. If you have any comments, please leave below, we love hearing your feedback
Tuesday, April 19, 2011
Be Careful With Bogus Bank Emails.
Recently I spoke to some customer who received an email from their bank. Or at least they thought it was from their bank. The email asked them to login to their account, to confirm their address. There was a link on the email, and the customers clicked that link, and logged on to what they thought was their bank.
Upon logging on, the website said that there was a problem with the bank, and try to login later. The customers thought nothing of it, and went away thinking they will try to log on the their internet banking later on that night.
The customers went back on logged on later to their internet banking a couple of days later. This time they typed their banks web address straight into their browser, not clicking the link that was supplied in the email. Once they had logged on, they realised that a fair sum of money had been transferred out their bank account and their linked credit card account. They hadn’t transferred the money, or used their credit card, and didn’t recognize the accounts where their money had been spent.
Upon ringing the bank, they had realised that someone else had gone and logged into their internet banking, then transferred some money out of their accounts on a few occasions. After the bank asked some questions, the bank had advised the customers, that if they do send bank emails, they never have a web address in the emails that they send. The customers let the bank know that the website looked exactly like the banks website, and they thought they were logging on to their internet banking.
What happened was the email the customers opened, had a link to a website that looked exactly like the banks website, even though it wasn’t. The website was designed to get the customers login details, which the customers did input. Once the customers login was input, and the login button clicked, the website sent those details to whoever made the website. Once these people (I will call them criminals) had the login details, they were free to access the customer’s bank account anytime, which they did.
In this particular case, the bank, after some investigation, refunded the customers the money that was stolen from them luckily.
The reason why I am telling this story is to remind everyone to be very careful if you get an email from your bank. It might not be your bank, and the website it leads too may look exactly like your bank or lenders website. Generally speaking if banks do send emails, they don’t have web addresses in them. This is a security measure from the bank, as they are aware that fraudulent emails are on the increase. It is good advice to always type in the banks web address into your browser, and once the bank website is displayed, check the URL (web address) to make sure it is your bank or lender that you have reached, before you input your login details.
If you have any questions or comments, please leave below. If you would like more personal mortgage information, or to contact a mortgage broker, please contact us anytime.
Upon logging on, the website said that there was a problem with the bank, and try to login later. The customers thought nothing of it, and went away thinking they will try to log on the their internet banking later on that night.
The customers went back on logged on later to their internet banking a couple of days later. This time they typed their banks web address straight into their browser, not clicking the link that was supplied in the email. Once they had logged on, they realised that a fair sum of money had been transferred out their bank account and their linked credit card account. They hadn’t transferred the money, or used their credit card, and didn’t recognize the accounts where their money had been spent.
Upon ringing the bank, they had realised that someone else had gone and logged into their internet banking, then transferred some money out of their accounts on a few occasions. After the bank asked some questions, the bank had advised the customers, that if they do send bank emails, they never have a web address in the emails that they send. The customers let the bank know that the website looked exactly like the banks website, and they thought they were logging on to their internet banking.
What happened was the email the customers opened, had a link to a website that looked exactly like the banks website, even though it wasn’t. The website was designed to get the customers login details, which the customers did input. Once the customers login was input, and the login button clicked, the website sent those details to whoever made the website. Once these people (I will call them criminals) had the login details, they were free to access the customer’s bank account anytime, which they did.
In this particular case, the bank, after some investigation, refunded the customers the money that was stolen from them luckily.
The reason why I am telling this story is to remind everyone to be very careful if you get an email from your bank. It might not be your bank, and the website it leads too may look exactly like your bank or lenders website. Generally speaking if banks do send emails, they don’t have web addresses in them. This is a security measure from the bank, as they are aware that fraudulent emails are on the increase. It is good advice to always type in the banks web address into your browser, and once the bank website is displayed, check the URL (web address) to make sure it is your bank or lender that you have reached, before you input your login details.
If you have any questions or comments, please leave below. If you would like more personal mortgage information, or to contact a mortgage broker, please contact us anytime.
Sunday, April 10, 2011
My Home Loan Was Declined. Will Another Bank Look At My Application?
This is a question I have received via email, which today will remain anonymous. My bank declined my mortgage application today. I would still like to purchase the property I have put on offer on. Can I apply for another home loan with another bank right now? Well the short answer to this question is yes you can, lets look at what we would need to know.
We would need to know why your current bank or lender declined your home loan application, to help decide where or if we can lodge a new home loan application. There could be many reasons why the loan was refused. It could be that your particular bank or lender didn’t count your overtime, they didn’t like the property that you have brought, you may not have been in your job long enough, there may have been a credit default on your credit file, the reasons are endless.
Once we know the reason why your home loan application was declined, we can look at different options with other lenders. All banks and lenders have different credit policies, so just because one bank doesn’t accept your home loan application, it doesn’t mean that another bank or lender won’t. This is where an experienced mortgage broker can help, as the mortgage broker will have knowledge of the different credit policies and lending criteria that each lender has, and may be able to find a suitable loan for you, even if one bank has already said no to your application.
With the particular example above, the bank wouldn’t accept the customer’s overtime, which was a necessary part of his job. The customer’s application was submitted to another bank, whose credit policy allowed overtime, and the customers home loan was approved. He was able to purchase the property he had put an offer on, and very happy that he could.
If your current bank or lender has declined your home loan application, it might be a good time to consider contacting an experienced mortgage broker to go through other mortgage options. If you have put an offer on a property, there still might be enough time with the finance clause on the real estate contract, to apply for another home loan. A finance extension too, might be able to be organised, if your real estate finance contract clause is nearing its end.
Monday, April 4, 2011
The RBA Keeps Interest Rates On Hold.
Some welcome relief for mortgage holders today, with the Reserve Bank Of Australia keeping the official cash rate on hold at 4.75%. In his statement, the Reserve Bank governor noted that inflation is still around the 2 to 3% target, and employment growth has steadied, with unemployment remaining around 5%. The RBA expects inflation to remain in the 2 to 3% for the near future.
This, combined with some of the recent natural disasters, may help to keep interest rates on hold for the short term. Lets hope so. The RBA Governor, Glenn Stevens did note however, that there has been strengthening growth in wages, and our terms of trade are at the highest levels since the 1950s. This may increase pressure for an interest rate adjustment, if inflation should start to rise.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan will have a noticeable effect on Japanese production in the near term, although the impact on the broader Asian region is expected to be limited. Commodity prices, including oil prices, have risen over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative.
Australia's terms of trade are at their highest level since the early 1950s and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income. The natural disasters over the summer have reduced output and the resumption of coal production in flooded mines is taking longer than initially expected. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way.
Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend. Business balance sheets generally are being strengthened, and the run‑up in household leverage has abated.
Growth in employment has moderated over recent months and the unemployment rate has held steady at 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Inflation is consistent with the medium-term objective of monetary policy, having declined significantly from its peak in 2008. These moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices. Production losses due to weather are temporarily raising prices for some agricultural produce, which will boost the March quarter CPI, but these prices should fall back later in the year. Overall, looking through these temporary effects, the Bank expects that inflation over the year ahead will continue to be consistent with the 2–3 per cent target.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate in view of the general macroeconomic outlook.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
Sunday, April 3, 2011
What Is An Introductory Rate Home Loan?
Today we will look at what an introductory rate home loan is. An introductory home loan is generally a home loan with a discounted interest rate for a period of time. After the introductory period the home loan will usually revert to a higher interest rate.
Introductory rate home loans are generally will have variable interest rates. There are some good introductory rate home loans available today. Some are better than others, it really depends on the interest rate offered, how long the introductory interest rate period lasts for, any fees associated with the home loan (like application or monthly fees) and what the interest rate reverts too after the introductory period has finished.
If you are considering an introductory rate mortgage, it is wise to take into account the fees associated with the home loan, and consider what your repayments might be after the introductory interest rate period has finished. The interest rates on introductory rate home loans after the initial cheaper period can be more expensive than a discounted basic home loan, so even though at the start you may think you have a good interest rate, it may change after the introductory rate period has finished.
With some banks or lenders you may be able to switch the introductory rate home loan to another mortgage after the introductory rate period has finished. There may be a switch fee involved, which can cost from $300 or more. Some banks or lenders though, with introductory rate home loans, may not enable switching of the home loan, or the fee could be quite high if you want to change to a different mortgage after the introductory rate period has finished.
It is important to understand all the costs involved with your home loan. As with some introductory home loans, it may appear cheaper, based on the starting interest rate, but in fact, it may be more expensive in the end, when you consider all the costs involved.
A good mortgage broker will be able to help you understand the costs with introductory rate home loans, and compare them to other home loans, to see which are more suitable to your needs and are more cost effective.
If you have any questions or comments, please leave below. If you would like to speak to a mortgage broker, please contact us anytime.
Wednesday, March 30, 2011
What Are Mortgage Progress Payments?
Mortgage progress payments apply to construction home loans. When you are looking to build a new home, you will look at many different display homes, to see which one suits your lifestyle and budget. Once you have decided on a home to build, you will generally sign a fixed priced building contract with the builder, detailing the plans, specifications and pricing of your new home.
On this fixed priced building contract (some states in Australia may refer to a fixed priced building contract as a lump sum contract), you will have the final price of the home you are going to build, plus a section listing the progressive payments, as your home gets built. Generally speaking, most building contracts have 3 to 5 progress payments listed on them.
Lets look at an example of what I mean by progress payments. Let say you have just signed your fixed priced building contract, and your home to build costs $160,000. You have already found your block of land, in which you already have a mortgage of $150,000 on the block. You apply for finance to increase your mortgage from $150,000 to $310,000 to build your home. Your home loan is approved.
You now have a home loan of $310,000, but a balance of $150,000, as the new approved extra amount for your home loan, is waiting for the builder to start building your home. On your fixed priced building contract you have 4 progress payments, the schedule of payments may look like this –
Progress payment 1: $30,000 – Lay concrete pad and site works
Progress payment 2: $50,000 – Brick works, to build walls
Progress payment 3: $30,000 – To complete the roof.
Progress payment 4: $50,000 – To finish the home (tiling, paving, finishing’s etc)
This totals $160,000 to build your new home. When your builder is ready to start building, they will issue you a progress payment invoice, to give to the bank or your mortgage broker to start the build. In our example the first progress payment is $30,000. You will receive progress payment requests, as per your progress payment schedule on your fixed priced building contract, till your new home is finished, and by this stage you should be not too far from moving into your new home.
As far as your home loan goes, it will increase as your make your progress payments. In our example, your home loan was $150,000, at the start, as this brought your land. You were approved finance to build, increasing your home loan to $310,000 once the new home has been built.
Once you have made your first progress payment of $30,000, your home loan balance will increase to $180,000. Your second progress payment was $50,000, so once this work is done, and the bank pays the builder, your home loan balance will increase to $230,000. Your 3rd progress payment in our example was $30,000, so once this work is done, and the builder paid, your home loan balance will be $260,000. Once the 4th and final progress payment work is completed, and the builder is paid the $50,000 4th progress payment, your home loan balance will increase to $310,000, which was your approved limit. But this stage you will be nearly ready to move into your new home, once you have done your final inspection.
During construction, you are generally required to make interest only repayments to your home loan. You are only paying interest on the balance of the loan, as the loan increases during building, not the fully approved limit, which in our example was $310,000.
If you have any comments or questions, please leave them below. If you would like more personal mortgage information, or to contact a mortgage broker, please contact us anytime.
Sunday, March 27, 2011
What Is A Seniors Equity Release Mortgage?
Today’s email question is from Ruth In Cottesloe. Ruth asks in her email, I have heard the term Seniors Equity Release Mortgage, what is it?
A Seniors Equity Release Mortgage is the same as a Reverse Mortgage. It is available to people who are 65 years of age, or older. If there are joint loan applicants, one applicant may, with some lenders be aged 60 years of age, or older, as long as there is an applicant that is at least 65.
There is a good article, what is a reverse mortgage, this will give you all the pro’s and con’s about reverse mortgages.
If you have any questions or comments, please leave below. If you would like more personal mortgage information, or to find a mortgage broker, please contact me anytime.
http://www.mortgagefacts.com.au/
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