You've probably heard (or read) me say this before... "you can't manage what you don't know". When it comes to your living expenses, this is more important, and more relevant, than ever before. Knowing what you spend is not only smart to ensure you're on top of your money management, but it is also necessary when it comes to borrowing money. Let me explain...
On the 5th July 2019, APRA wrote to all Authorised Deposit-Taking Institutions (ADIs) notifying them that it no longer expects them to use a benchmark rate of 7.25% when stress testing a borrower's ability to borrow money.
A large percentage of home buyers usually make their move in the warmer weather, simply because spring and summer is a more pleasant time of year to be out and about. Rightly or wrongly, people are more likely to get out and shop when the weather is nice. However, if you want to potentially bag a great buy, you should look to buy counter-cyclical.
Every cloud has a silver lining, and our property markets are no different. Whilst I don't have a crystal ball, and whilst I'm not Nostradamus, I am confident that our property market will turn the corner sooner rather than later.
Applying for a home or investment loan can seem daunting at times. Understanding how your borrowing capacity is calculated will help take the stress out of the process.
For most people, buying a home or investment property is only possible by taking out a home or investment loan. If this is you, you need to know how the game has changed and what it takes to be approved in 2019.
I compiled a list of 8 must do’s […]
House prices in Australia have cooled over the past 12 to 18 months attributed by a number of factors. A rigorous lending environment, the Royal Commission, talk of a change in government, change to foreign buyer policy, and a reduction in borrowing capacity for most (particularly investors). These factors have created uncertainty in the market […]
New rules came into play on 1 January 2019 relating to credit cards. These unrelated new rules could have an adverse impact on your borrowing capacity when it comes to applying for a home or investment loan.
The dictionary definition of opportunity cost is 'the loss of other alternatives when one alternative is chosen'. When it comes to buying property, the 'alternative' chosen is usually to do nothing and wait. This is happening right now as many people think they can time the market.
Borrowing money should be easy right? You have a good paying job, your debts are under control, you rarely use your credit card(s), and you have clean credit history. But you've just been knocked back to borrow money? How can that be?