The past year has seen regional home values grow twice as fast as capital cities, as more and more Australians sought for a sea or tree change, according to CoreLogic. But new figures suggest there may be affordable pockets of Sydney that are even more promising for property investors. According to property developer ALAND, the Greater Western Sydney market could be very profitable for investors, with rental gross yields potentially as high as 4.7% at its Schofield Gardens development in Schofields. For context, rental gross yield refers to your annual rent income divided by the purchase price, so it’s a way to figure out how likely the property will generate a positive cashflow. ALAND said investor returns were lower in popular regional hotspots such as Wollongong, Newcastle and Central Coast. Here are their estimates of rental gross yields in these areas, drawing on data from My Housing Market:
Winter’s finally here and so too are the colder days and longer nights. For many of us that means taking life at a slower pace and indulging in the pleasures of food and warmth that come indoors.
One of Australia’s largest home loan lenders, ING, has announced that it will be making a number of changes to its fixed rate home loans, including the introduction of tiered pricing for different loan-to-value ratios (LVRs).
FOMO in the property market can be very real. Whether housing is seeing a price boom or bust, first home buyers may feel the urge to ‘get in’ before prices skyrocket, which could see them sacrificing value or must-haves on a property checklist.
It’s no secret skyrocketing property prices over the past few months have made it harder for first home buyers to save for a deposit - and record low rates of wages growth aren’t helping either.
Online lender Athena has fired up the mortgage wars of 2021, cutting its variable home loan rates to new record lows. The mortgage challenger says its new Celebrate Home Loan 1.99% comparison rate* for borrowers with 40% deposit or equity is now the lowest fee-free variable home loan rate in the country.
As part of the 2021-22 Federal Budget, the government has introduced a number of budget measures to give Australians a leg-up when it comes to buying their first home.
Just when you thought home loan rates wouldn’t tumble any further, online lender Tic:Toc this week has reduced its variable offer to a new rock bottom for home buyers with smaller deposits.The Tic:Toc Variable Home Loan fell by 15 basis points to just 2.04% (2.05% comparison rate*) for owner occupiers making principal and interest repayments with loan-to-value ratios (LVRs) of up to 90%.It’s now the most competitive rate in the Mozo database at this LVR tier, or the third best among <80% LVR loans. Investors making P&I repayments weren’t left out either, with Tic:Toc’s variable rate for this borrower group dropping by 14 basis points to 2.19% (2.20% comparison rate*) for <90% LVRs.This again places Tic:Toc ahead of competitors, and it has now become the new variable rate leader in the Mozo database for investors too.But Tic:Toc wasn’t the only lender to announce variable rate cuts this week. Macquarie Bank also stepped in today with 15 basis point reductions across all of its variable home loans for owner occupiers. Rates now start as low as 2.34% (2.34% comparison rate*) with the Macquarie Basic Home Loan for owner occupiers on P&I repayments with <60% LVRs. Meanwhile, for higher LVRs of up to 90%, rates have dropped to 2.89% (2.89% comparison rate*). Or if you’re looking for a loan with more bells and whistles, the Macquarie Offset Home Loan (Package) also saw variable rates for owner occupiers on P&I decline to 2.34% (2.62% comparison rate*) for <60% LVRs and 2.89% (3.16% comparison rate*) for <90% LVRs.As a point of comparison, all rates mentioned above sit below the average variable rate in the Mozo database of 3.27%. These moves come just days after online lender Athena dropped its variable home loan to an ultra-low 1.99% (1.99% comparison rate*) for borrowers with <60% LVR.
An additional 10,000 places under the First Home Loan Deposit Scheme (FHLDS) for new builds will become available from July 1 following an announcement made as part of the 2021 Federal Budget.
Single parents hoping to get a foot on the property ladder will receive a boost this year, following the announcement of a new government initiative as part of the 2021-2022 Federal Budget.Dubbed the Family Home Guarantee , the program will allow single parents to purchase an existing home or build a new one with a deposit of as little as 2%.The program will commence 1 July 2021 and stretch over a period of four years, during which it will provide 10,000 guarantees to single parents with dependents.Importantly, the program won’t just be available to first home buyers. It will also support those hoping to re-enter the housing market after a divorce and family breakdown.To be eligible, applicants must be Australian citizens, at least 18 years of age, and have an annual taxable income of no more than $125,000.RELATED: What can we expect from the 2021 Federal Budget?Commonwealth Bank chief executive officer Matt Comyn said the measure will provide much-needed support to an often overlooked group.“This announcement will come as a welcome relief for hard working single parents, particularly those working in essential services such as education, health care and public safety, looking to buy their first home or re-enter the property market,” he said.Rates of home ownership are typically lower among single parents, who don’t have the benefit of a second income earner to help save for a deposit. Recognising that home ownership is a key source of intergenerational wealth, the program hopes to help single parents achieve financial security for their families.The program will benefit single mothers in particular, with the government estimating that 80 per cent of the 125,000 eligible Australians will be women.The government has also announced an additional 10,000 spots will be made available under the First Home Loan Deposit Scheme. These will be rolled out on 1 July 2021 and will allow eligible applicants to purchase a home with a deposit of just 5%, with the government guaranteeing the remaining amount.If you’re thinking of purchasing a home, browse our first mortgage guide for more tips. And to get a sense of the rates currently available, visit our home loans comparison page, or browse the selection below.
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