Sal Cinque, CEO, TAG Finance and Loans
Banks offering mortgage deferrals to struggling borrowers
As many parts of Australia have returned to lockdown over the past few weeks, lenders have offered home loan relief to borrowers who may have been affected.
Some borrowers may be eligible for deferrals on their mortgage repayments:
- All borrowers can apply for a mortgage pause, regardless of geography or industry
- Deferrals are being decided on a case-by-case basis
- Where deferrals are being granted, it’s on a month-by-month basis
The Australian Banking Association, which is made up of 22 of the country’s largest banks, including the big four banks, said banks are standing by their home loan customers.
“Customers can rest assured that if they need help, they will get it. Your bank will help you find a way through, don’t tough it out on your own.”
If you have been affected by the lockdowns and experiencing difficulty with your mortgage repayments, it is best to speak with your bank asap and please reach out if we can assist.
Please contact us if we can help.
Why you might want to switch from renting to buying
New analysis from CoreLogic has found that buying a property is cheaper than renting for 36.3% of homes across Australia.
This is an improvement on the last time this analysis was conducted in February 2020, when it was cheaper to buy than rent 33.9% of homes.
‘Cheaper to buy’ means it takes less money to meet ongoing mortgage repayments than ongoing rental payments. CoreLogic’s analysis assumed borrowers would put down a 20% deposit, take out a 25-year loan and pay a mortgage rate of 2.40%.
The national results hide a lot of geographical variation. For example, a majority of homes in regional locations are cheaper to buy (60.1%) but only a minority in metro locations (28.2%).
Of course these are broad averages and your personal situation might be different.
Let Chat if you would like explore the cost deference between renting and owning.
Looking to buy? We can help.
Property investors collecting more rental income
This is a great time to be a property investor, with tenants being forced to compete hard for rental properties, according to new data from SQM Research.
The vacancy rate (the share of untenanted rental properties) fell in every capital city, except Melbourne, between June 2020 and June 2021.
The harder it is for tenants to find accommodation, the easier it is for landlords to raise rents. So it’s no surprise CoreLogic found that rents rose in all capital cities between the June 2020 and June 2021 quarters – except Melbourne.
With rents rising and interest rates at historic lows, this is a great time to be a property investor.
However, qualifying for a mortgage is often easier said than done, due to the banks’ ever changing lending standards and prolonged turnaround times.
If you need help navigating the lending landscape, speak to an expert broker.
Reach out and speak to our experts if you need investment loan.
Rushing your taxes could delay your refund: ATO
Keen to get your hands on a tax refund? Well, the Australian Taxation Office has revealed the number one problem that slows down the process.
ATO assistant commissioner Tim Loh said some Australians are in such a hurry they file their taxes before they’ve got a complete picture of their income for the previous financial year.
“Four out of five people get refunds at tax time. While we usually get these out in under two weeks, it may take longer if we need to address any mistakes and potentially adjust your return,” he said.
“Waiting until the end of July to lodge allows the ATO to add information into your tax return from employers, banks, private health insurers, and government agencies. Agents can access this information too.”
Employers usually have until July 14 to finalise their employees’ income statements. However, due to Covid, some employers have been granted extensions until July 31.
Want more information? Visit the ATO’s Tax Time Essentials page or speak with your TAG Advisor.
Thank you for reading this update and please book an appointment if we can be of assistance in your home loan journey.
Disclaimer: The information contained on this page is general in nature. Professional advice should be sought before acting on any aspect on this page. TAG Finance and Loans Pty Ltd ABN 25 609 906 863 Credit Representative Number 483873 National Mortgage Brokers Pty Ltd ABN 88 093 874 376 Australian Credit License 391209.