Mortgage Broker


How to budget for a home on a low income

If you’re slogging it out in a 9-to-5 job for what feels like a pittance, you’ve got the double whammy of rising house prices and a low income, and the goal of home ownership can seem even more hopeless. According to the Australian Bureau of Statistics, the average annual earnings for Aussie employees is just over $60,000, a level at which the tax office gives you a low-income tax offset. So there are plenty of others out there scratching their […]

The Commonwealth Bank reduces the maximum loan-to-value ratios from 95 to 90 per cent

AUSTRALIAN property investors are set to be hit again as the nation’s largest bank tightens the screws on investment lending. Investors will be forced to stump up larger deposits to buy property after the Commonwealth Bank revealed it would reducing the maximum loan-to-value ratios from 95 to 90 per cent. This means borrowers must have a 10 per cent deposit instead of five per cent which was previously allowed to buy an investment property. This means for a $300,000 property […]

Increased pressure on Federal Budget to use taxes to help first-home buyers

STATE governments are holding the Federal Government responsible for the big solution to the housing affordability crisis hitting major capitals. Treasurer Scott Morrison is under increasing pressure to use powerful taxation levers in the upcoming Budget to move the market away from investors and in favour of first-home buyers. That could mean reducing capital gains tax relief, and limiting or removing negative gearing tax concessions. The pressure increased today as the Reserve Bank left interest rates untouched while warning that […]

The 10 words that may signal a gathering storm for housing investors in Australia

“Supervisory measures have contributed to some strengthening of lending standards.” This 10-word sentence from the Reserve Bank of Australia (RBA) on Australia’s housing market in its March monetary policy statement could signal something important. It seems to be a step back from the more confident tone expressed just one month earlier when it said “supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments”. “Some” strengthening. Like many of our […]

RBA leaves cash rate on hold in March

THE Reserve Bank has left the official cash rate on hold at 1.5 per cent for the sixth meeting in a row. The RBA was widely expected to keep rates steady at its March meeting after the national accounts released last week showed a marked turnaround in economic growth. Reserve Bank governor Philip Lowe last month spoke three times about keeping rates on hold to balance the need to boost inflation while maintaining financial stability amid record household debt. Real […]