Home loan news and advice

All the latest home loan news and top tips to help you manage your home loan.

Property crisis: Will young Australians be able to get a foot in the door?

Property crisis: Will young Australians be able to get a foot in the door?

Home ownership already seemed like a far-off dream for many young Australians. But since the coronavirus pandemic sent the economy into a tailspin, that dream has been pushed even further back. Mozo research found that 52% of millennials have seen their wages reduced by 20% or more as a result of the crisis. For those hoping to buy a home in Sydney, that means they’ll have to save an extra 14 months for a deposit, or 7.4 years in total. First home buyers in Melbourne have also had their savings journey extended. There, a 20% reduction in earnings translates to an extra 12 months of saving, bringing the total amount of time needed to six years. “Covid-19 has disrupted incomes across multiple industries throughout the country, and in doing so it has also slowed down the great Australian dream of home ownership,” said Mozo Director Kirsty Lamont. “With so many millennials having their income reduced, putting 20% of your income into savings will no longer be an option for some first home buyers, who need to prioritise their immediate expenses.” Across the nation’s capital cities, first home buyers in Perth and Darwin have emerged as the least disadvantaged, only needing to save for an extra six months if they have experienced wage reductions.  Entry level homes in the two cities are relatively cheap when compared to the average income, making home ownership a more attainable goal than in other capital cities.

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HomeBuilder scheme: Are you eligible for the Government’s $25,000 cash grant?

HomeBuilder scheme: Are you eligible for the Government’s $25,000 cash grant?

Eligible Australians will receive $25,000 cash grants to cover home building or renovation, in an effort to turbocharge the construction industry and build 30,000 homes by end of year. The $688 million HomeBuilder program is expected to support 140,000 direct construction jobs - along with a further 1 million workers in the residential building sector - which risk disappearing once projects already in the pipeline wrap up. The one-off payments will be available to individuals making less than $125,000 a year and couples making less than $200,000, and are to be used for new builds valued up to $750,000 or renovations worth between $150,000 and $750,000. “If you’ve been putting off that renovation or new build, the extra $25,000 we're putting on the table, along with record-low interest rates, means now's the time to get started,” said Prime Minister Scott Morrison. "This is about targeted taxpayer support for a limited time using existing  systems to ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves.” The announcement comes after weeks of lobbying by industry bodies for the Government to throw its support behind Australia's home builders and tradies.  CEO of Master Builders Australia Denita Wawn came out in support of the program today, saying it’s a necessary step towards revitalising a struggling construction industry and kickstarting the economy. “HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months. It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country,” she said. “Residential building activity gives back more than double to the communities that sustain it with every $1 invested in home building activity providing $3 to the wider economy. “This means that HomeBuilder will provide a boost for thousands of tradies; the cafes, pubs, and ute dealerships that they frequent; as well as the thousands of building supply businesses that depend on the industry.”

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Lenders slash home loan rates despite RBA hold

Lenders slash home loan rates despite RBA hold

Home borrower and refinancer alert: New Mozo research reveals that lenders are slashing home loan rates even though the Reserve Bank has elected to keep the official cash rate on hold again for the third month in a row.

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Construction of new homes set to drop by nearly half, says HIA

Construction of new homes set to drop by nearly half, says HIA

Experts are bracing for a massive drop in activity in the housing sector, with construction of new dwellings expected to fall nationally by 43%, according to the Housing Industry Association (HIA).This would put the number of new homes being worked on next financial year at 112,000 – down from nearly 200,000 in FY19.In NSW, the shock is predicted to be even greater. The HIA report estimates housing starts will drop by 27.5% this financial year and a further 34% in FY21.HIA regional director David Bare said the coronavirus pandemic has caused fissures all throughout the residential building industry and recovery is not expected for another two years. “New South Wales was already in a vulnerable position, with the housing market cooling over the last few years and a significant amount of apartment supply still to come online,” he said.Travel restrictions currently in place are also a cause for concern, especially in major cities like Sydney and Melbourne where net overseas migration accounts for the majority of population growth."The further shock to housing demand from the loss of foreign students, tourists and migrants - who are particularly valuable to the state - is a particularly worrying development,” Bare said. "The 625,000 overseas students enrolled in Australian education institutions equates to demand for the past two years of apartment construction. It is not clear how many of these left in March or how many will return.”

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