The First Home Super Saver Scheme (FHSS scheme or FSSSS) lets you make voluntary contributions to your super and withdraw them later for a first home deposit. Unlike regular superannuation contributions that are locked away until retirement, FHSSS funds are accessible for first homebuyers, while still benefiting from tax advantages.
Buying a home for the first time can be both stressful and liberating. So naturally, most people have a lot of questions about how it all works. To make the process easier, we’ve compiled the most frequently asked questions about home loans, covering everything from the difference between fixed and variable rates, to the right time to make an offer on a property.
As Australian home prices continue to rise, the amount we need to save to get a home loan increases too. But what is the average home deposit in Australia in 2024?
Thinking of refinancing? You’re certainly not alone. The era of RBA rate rises has got many borrowers rethinking their home loan rates, features, and commitments, and seeking better options.
For most Australians, paying off a home loan is a decades-long task. But what happens if you pass away before you get a chance to pay it off and discharge your mortgage?
Your investment portfolio can actually boost your borrowing power and impress a lender, however there are some caveats to be aware of when using your shares to strengthen your application.
The banking industry loves complex jargon. Even after working full-time in finance for the past three years, I still come across new terms and acronyms that need deciphering.
Buying or selling property can be a stressful process, but a conveyancer is one person we strongly recommend retaining to help you along the way.
Paying off your mortgage ahead of time can feel like a daunting task, but there are ways to pay down your home loan faster – and doing so can save you thousands in repayments.
Most people understand the basic concept of refinancing – switching out your home loan for a new one with a lower rate, better features, or a more favourable loan term. This is usually known as a rate-and-term refinance.
There are two types of home loan repayment options: principal and interest (P&I), and interest-only (IO).
Most investors seek to maximise their return on investment, so why would it be any different when we talk about rental yields from an investment property?
When you apply for a home loan, lenders use all sorts of measurements to understand if you’re a good fit for their product. One measurement involves calculating your debt-to-income (DTI) ratio.
Getting home loan pre-approval can be an important step on your way to buying a home. While not essential, it does give you an idea of how much you can borrow, and it signals to sellers that you’re a genuine prospective buyer.
Refinancing is a popular option for homeowners who want to reduce their mortgage repayments, access home equity, and save money on their home loans.
Capital gains tax (CGT) is a tax you pay when you sell an investment asset such as property and make a profit (a capital gain).
A property valuation is necessary if you’re applying for a home loan or want to find out how much your place is worth. But what is a property valuation, how does it work, and how much does it cost?
If you’re an older Australian who owns their own home, you might have heard about using a reverse mortgage as a way to borrow money using the equity you’ve built up in your home.
Owning an investment property comes with a whole host of expenses to cover, including property manager fees, repairs and maintenance, and your investment loan repayments.
When most people talk about the costs of buying a home in Australia, they focus on property prices and mortgage repayments. While those are major expenses, you can’t overlook that homeownership costs more than just your home loan.
Negative gearing is a term you’ll often hear when talking about property investment, but what does it actually mean?
As a renter, it’s difficult enough to enter the property market, let alone buy a home you’re happy with at a price that won’t make you queasy. However, a home-buying strategy that’s growing in popularity, known as rentvesting, is seeing Australians swapping out traditional home loans for an investment property.
Buying a home is a significant milestone, but before you get your foot in the door you’ll have to save up for a house deposit.
When you buy off the plan, you’re buying a property that hasn’t been built or is in the process of being built – these properties tend to be apartment complexes and housing developments.
Buying a home comes with all sorts of expenses. But before you get your foot in the door, you’ll need to save up for a house deposit and qualify for a home loan.
Whether you’re planning to buy with friends, your partner, or a sibling, sharing a home loan with someone else can help you cut down on costs and even increase your borrowing power. This can be done through a joint mortgage.
Whether you’ve just started to compare home loans or you’re in the process of paying one off, there are plenty of home loan features you’ll likely come across, and home loan redraw is one of them.
First introduced by the Federal Government in 2000, the First Home Owners Grant is a one-off payment that can help first home buyers with the cost of getting into the property market and paying for a home loan.
Mortgage repayments are calculated so that you chip away at the total cost of your home loan over time.
Your mortgage can end for a few reasons – when you’ve paid it off in full, you’re refinancing to a new lender or you sell your property.
In home loans, a loan-to-value ratio (LVR) is the amount you’re borrowing, expressed as a percentage of the value of the property you’re buying. For example, 80% LVR means you’re borrowing 80% of the value of a property.
Lenders look at all sorts of criteria when you apply for a home loan so that they can assess whether you’re a good fit for their product. This can include your loan-to-value ratio (LVR), credit score, borrowing power, as well as something called home loan serviceability.
As you pay off your mortgage and build up your home equity, you can use it to refinance your home loan, purchase an investment property or even borrow funds for a home renovation.
Your home equity is the difference between how much your home is worth in the current market and how much you owe on your mortgage. In other words, your home equity represents the portion of your property that you own.
Getting a home loan approved without a deposit isn’t common in Australia, unless you have a guarantor. A guarantor is usually a family member who offers equity in their own property as additional security for your new home loan.
You can’t overlook a home loan with an offset account if you want to save money. Not only can offsets shrink your monthly repayments, but they can slash the amount of interest you pay over the long term if you play your cards right.
Ready to buy a home, but aren’t sure how much you can afford to borrow? Working out your borrowing power can give you a good idea of how much a bank might lend you for a home loan.
Most borrowers choose to pay monthly and don’t realise they have the option to make fortnightly or weekly mortgage repayments. But what if I told you that increasing your repayment frequency could save you thousands of dollars on your home loan?
A home loan is a decades-long commitment. But what happens if you decide to move because your family is growing, you want to downsize, or to get closer to work?
Mortgage stress in Australia is defined as spending 30% or more of your pre-tax income on home loan repayments. It’s not a science, but a generally accepted threshold for measuring home loan affordability.
%20(1)%20(1)%20(1)%20(1).png?width=324)
Refinancing your home can be a useful way of getting a better deal on your mortgage. Sometimes, borrowers opt for cash out refinancing to access some of their equity as well.
Different types of home loan interest rates have pros and cons and can affect how much you pay. The two most common types are fixed and variable rates. But what’s the difference between the two, and how do you choose the one that best suits your needs?
Refinancing is the process of switching home loans, whether that’s by negotiating with your current lender or swapping to a new provider altogether.
Paying too much for your mortgage? One thing you can do to reduce costs is refinance your home loan, as this can give you access to lower interest rates and better features.
Buying a home is a huge financial commitment, and it can feel a little overwhelming if you’re not sure where to start. In our dedicated guide, we’re outlining all the steps for getting a home loan in Australia, and the factors you should consider along the way.
.png?width=324)
Settlement is the last step in getting a home loan and is the part of the process when your lender formally approves your mortgage and you purchase your home.
A self-managed super fund (SMSF) is a retirement fund which is managed privately by you. An SMSF home loan lets you use these retirement savings as a deposit for an investment property, with any returns on the investment being directed back into your superannuation fund.
Refinancing is when you switch from one home loan to another, either with your existing lender or a new mortgage provider entirely.
Interest rate hikes have dialled up the pressure on borrowers over the past couple of years. As a result, many have been keen to refinance their home loans and escape rising repayments.
Refinancing your home loan is a big decision, so it’s vital to consider the pros and cons and understand the different types of refinancing available.
If your circumstances change and a fixed home loan no longer suits your needs, you can get out of it early, often by paying a break fee.
When you find your home loan lender, it might feel like you've met your one and only. While the romance might come thick and fast in the honeymoon period, sometimes the seven year itch can come early.
Taking out a home loan is a huge financial commitment which can span up to 30 years, and anybody’s financial situation can change over such a lengthy time period.
There are a number of government home loan schemes in Australia which can help you buy a home, and one of those is the Regional First Home Buyer Guarantee (RFHBG).
So, you’ve gone through the effort of finding a home loan, collecting all the documents you need, and finally applying for it, only to find out that your application has been rejected. What now?*
Negative equity is when the amount you owe on your home loan is greater than what the property is worth in the current market. In other words, the debt you owe is more than the total value of the asset.
Buying a home is a huge financial responsibility which comes with a level of risk, but there are products available which can provide you some security if you’re suddenly unable to make your mortgage repayments due to uncontrollable circumstances.
There’s plenty of jargon you’ll need to wrap your head around when looking to buy a home, and one common source of confusion is the difference between lenders mortgage insurance (LMI) and mortgage protection insurance (MPI). Let’s unpack these terms so you can better understand how these products could help you in your home buying journey.
Saving for a home loan deposit can be seriously challenging in today’s market, so what happens if you’re struggling to meet the recommended 20% of the property’s value?
In Australia, there are plenty of different home loans available to cater to different borrowers. Below, we break down the main types of home loans out there to help you find the one that suits your financial situation.
The federal Labor government introduced the Help to Buy scheme in May 2022. Two years on, Labor’s plan to help Australians purchase a home is closer than ever to reality.
The first step when buying a home is saving up for a home loan deposit. The first deposit is typically 20% of the property purchase price, so for an $800,000 home, you’ll typically be looking at a deposit of $160,000.
If you’re in the home buying process, then you’ve probably heard about stamp duty. Stamp duty can be a significant home-buying cost to budget – and unfortunately, your home loan does not cover it. How much stamp duty costs varies by location, property value, and buyer.
When you compare home loans, there are two types of interest rates you can choose from – fixed rate and variable rate. However, you don’t have to choose just one or the other. Many banks and lenders will let you combine the two in what’s known as a split rate home loan.
.png?width=324)
In finance, we deal with interest all the time.
Buying your first house can be a long and daunting process, so having a roadmap is helpful. Let’s go through every stage of the home-buying process and lay it out in simple steps, including:
Some of the most common advice you’ll read at Mozo is to, “Call your mortgage lender.” See if you can negotiate a lower interest rate and avoid mortgage stress.
A construction loan is designed for building your own home, as opposed to purchasing a pre-built property. Unlike a standard mortgage, it offers the flexibility to incrementally draw funds throughout the building process, incurring interest only on the amount drawn.
New South Wales first home buyers looking to get into the market may be eligible for the NSW First Home Owner Grant (FHOG).
If you live in Queensland and are looking to buy or build a brand-new home, then the First Home Owner's Grant (FHOG) could be the helping hand you need.
If you live in Victoria and are looking to buy your first home, then don't overlook the First Home Owners Grant (FHOG).
If you're a first home buyer in the Northern Territory, then check out the NT government's First Home Owner Grant (FHOG). It's a one-off payment that can help with some of the costs associated with buying a home.
If you live in Western Australia and are looking to buy your first home, then you may be eligible for the First Home Owner Grant (FHOG).
If you're a first time home buyer in South Australia, take advantage of the SA government's First Home Owner's Grant (FHOG) to help get you closer to holding the keys of your dream property.
Buying at auction is a popular home-buying method for many Australians. So what can buyers expect? How can you give your bid the best chance at winning? And how does the auction process impact your home loan?
Paying at least 20% of the purchase price upfront is standard when taking out a home loan. This portion establishes the loan-to-value ratio (LVR) for the mortgage and the interest rate the borrower is eligible for.
Overbidding at a property auction can have disastrous financial consequences and make it harder to take out a home loan in future. It's a worst-case scenario for an auction: depending on your situation, it might be far better to lose the auction (and the property) than overbid.
When you apply for a home loan, one of the many things lenders will examine is your credit score. This is a number between 0 and either 1,000 or 1,200 which reflects how responsible you are with your debts and other financial obligations.
Your loan-to-value ratio (LVR) and home equity are vital parts of your mortgage. Home equity can be an untapped source of wealth used for everything from a home loan deposit to funding for renovations, while your LVR tier can set the interest rate on your mortgage repayments.
Capital Gains Tax was introduced in Australia in 1985 and applies to assets you sell that were bought since that date (though there are some exceptions). Importantly, capital gains tax is part of your income tax and not a standalone tax as the name might suggest.
The breakdown of a long-term relationship can be difficult enough to begin with, but things are made all the more complicated when you and your partner have a home loan together.
With interest rates at the highest they've been in years, the promise of a 40-year home loan offering lower monthly repayments may look appealing. But there's a catch that you might not have considered, which can actually end up costing you more.
The Australian rental and housing market is notoriously tight, and while supply is often cited as the solution, the type of supply being brought to the market is equally important. One potential solution being discussed is the build-to-rent (BTR) model.
Have you found the house you’d like to own? Your next step is getting a home loan and hopefully in a way that allows you to minimise your costs.
With the high cost of living right now, it might seem like an impossible dream imagining the day when you’ve paid off your mortgage, you have thousands more in your bank account, and you are planning a trip around the world to tick off all those places on your bucket list.
Property dreams are made in spring, if the old adage is to be believed. It’s supposedly the best time of the year to sell and buy homes, but depending on your circumstances, that may not be entirely true.
Whether you’re upgrading or downsizing, there’s no denying the stress that comes with selling and moving house. And if there’s one thing on the mind of sellers, it’s the uncertainty that comes with not knowing how much your home will sell for.
Buying and selling property can be time-consuming, but there are buyers looking for a quick turnaround. Property flipping has been a great way for investors to make use of capital gains, while some buyers with buyer's remorse merely want to move to greener pastures.
.png?width=324)
If you’re a borrower who’s taken out a home loan for an investment property, you might find yourself looking at a loan that is missing out on a better interest rate or handy account features in comparison to others. If that’s the case, then it might be time for you to look at refinancing.
When shopping for a home loan, the ability to deposit and withdraw funds is highly sought after. So, when looking at features like an offset account and redraw facility, they will probably rank pretty high on your wishlist.
Not everyone is the same, and not everyone is on the same home-buying journey. That’s okay! There’s a wonderful variety of home loans to suit different needs. If you’re having trouble finding options that suit you, it could help to first discover your ‘type’.
In most cases, white lies are no big deal. But if it's something serious like a home loan application, a surprising number of people are willing to bend the truth.
.png?width=324)
Despite some relief from the RBA pausing its interest rate rise program, rates are still biting down on everyday borrowers. One way mortgage holders are managing their loan is through extra repayments.
%20(2).png?width=324)
With home prices where they are across Australia, it’s little wonder borrowers are questioning whether they can save for the hefty deposit required.
So you’ve worked hard to save up for a home loan deposit and you’re probably concerned about the potential pitfalls ahead. It's clear that 2023 could bring some headwinds.
Saving up a deposit is one of the biggest hurdles involved in purchasing a home, and for many Australians, clearing it can seem almost impossible. Below, we explore some of the workarounds for homebuyers who don’t have the 20% deposit that banks like to see.
A mortgage prisoner is someone who lacks the equity or serviceability requirements to refinance their home loan. Because they aren’t able to jump ship, borrowers can find themselves trapped and drowning in a mortgage they can no longer afford.
Saving up a deposit is one of the largest obstacles to purchasing a home, which is why many parents step in to help their children out. If you’re in a position to do so, gifting a deposit can be just what your child needs to get their home loan application over the line.
As a result of the rising cash rate and the cost of living crisis, some Australians have grown worried about their mortgage repayments.
So you’ve got your sights set on a home, spoken to a bank, and gotten an idea of how much you can borrow. The only problem is the amount is a bit lower than you’d like. Thankfully, there are a few things you can do to boost your borrowing power.
When it comes to applying for a home loan, your borrowing power is the foundation of a successful bid. One of the main ways to increase your borrowing power is to demonstrate that your total income (including that of your partner, if you’re buying together) is enough to make repayments.
In 2022, the NSW government announced a $780.4 million shared equity scheme, which it hopes will help boost home ownership by reducing the upfront and ongoing costs of taking out a home loan.
Most people looking to buy property will encounter two types of home loans: owner-occupier and investment property loans.
Selling a home can be tricky enough, but what about selling a home with a mortgage on it? While it’s not uncommon for mortgaged homes to be put on the market, if you’ve never done it before you’re bound to have plenty of questions.
When you’re applying for a home loan, your prospective lender will look at a range of factors in determining your ability to service the loan. One of these is your genuine savings.
Joining an expanding roster of shared equity schemes popping up around Australia, Tasmania’s MyHome program is designed to help residents enter the property market sooner by reducing the upfront costs they face.
If you're a freelancer, self-employed worker, small business owner or contract worker, getting a standard home loan can be difficult when you don’t have proof of salary documents like payslips or group certificates. This is where a low doc home loan comes in.
You can buy a home with anyone–siblings, parents, extended family, or even friends.
In his latest policy statement, Reserve Bank governor Philip Lowe dropped his usual reference to the Board’s willingness to be “patient” — effectively signalling that the RBA intends to tighten monetary policy in the coming months.
Cryptocurrencies like Bitcoin have seen major mainstream interest over the past few years.
The very thought of applying for a home loan is enough to send shivers down the spines of many Australians looking to enter the property market for the first time. But with a pinch of patience and a healthy dollop of organisation, the affair breaks down into a few neat steps that should serve to demystify the home loan approval process.
You may be emotionally ready to settle down but how do you know you are financially ready to buy your first home? Taking on a mortgage is one of the biggest financial decisions you’ll ever make, so before you take the plunge it’s a good idea to take a moment to learn what are things to know when getting a mortgage.
Banks can shift their mortgage rates several times throughout the year, either in response to moves by the Reserve Bank of Australia (actual or anticipated), or simply because their cost of doing business has changed.
There are plenty of reasons you might want to turn your home into a rental property. But things are made a bit complicated when you’ve still got a mortgage attached to it. So are you required to inform your lender of your plans? And will changing the terms of your loan mean higher monthly repayments? We explore these questions below.
Mortgage brokerscan offer a valuable service if you’re searching for a home loan. They can streamline the whole process and sometimes even make it cheaper. But because our main aim at Mozo is to save you money, we thought we better dig into the details to clarify exactly what these services could cost you.
A break cost is a fee a lender charges when you repay your loan early or switch to a different type of loan during a fixed rate period.
With property markets reaching highs all around Australia, it might seem harder than ever to get into real estate. Thankfully, there are a few options to help first home buyers ease the financial burden of getting their first home.
So, you're about to buy your first home and currently feel like a new parent that's in way over their head? Firstly, congratulations! Buying your first property is an incredible achievement and massive milestone in your life, which you should be super excited about.
If you are thinking about buying a home, you are probably wondering how to boost your chances of getting your home loan approved.
From the big bank players to the small online only lenders, the mortgage world offers plenty of choice when it comes to selecting a home loan lender.
Have you built up some equity in your home through extra repayments or your property has appreciated in value? Then you could be eligible for a line of credit loan that allows you to draw on a portion of that amount to fund things like an upcoming renovation or new family car.
When you’re ready to sell up and move into a new home, there are heaps of things to consider, and it pays to have a strategy in place, rather than just diving right in. Generally speaking, the goals for that strategy are to a) get a great price on your old home and b) secure the deed to your brand new dream home. And, with a little luck, you’ll achieve those goals while c) keeping your sanity intact.
Selling your house can be a stressful experience - you worry about getting the right price, about finding a new place, about your Great Aunt Cathy’s ancient crystal dinner set getting smashed to bits in the move.
When was the last time you looked at how the Australian dollar is fairing on the market? May be on the rise, but according to foreign investors, it’s still pretty low. What does that mean to you and I? Everything. From lower currency exchange when travelling overseas to inflated prices on average items we buy, day to day.
The Mozo news desk delivers the mortgage updates you need with the whitened smile you trust.
If you have a home loan, odds are it’s with one of the Big Four: CBA, ANZ, NAB, or Westpac.
Read More
The federal opposition has revealed that, if elected, it will work with Australia’s prudential regulator to relax the mortgage serviceability buffer, in an attempt to provide first homebuyers easier access to loans. This move might also give current mortgage holders greater capacity to negotiate new loan terms and refinance.
Read More.png?width=324)
A home loan that rewards you for your loyalty, does away with pesky fees, and has a low variable rate that’s well below the average home loan in Mozo’s database.^^
Read More.png?width=324)
If there’s one home loan lender more and more Aussies are hearing about, it’s the new digital lender Unloan, built by CommBank.
Read More