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5 Reasons To Refinance Your Loan Right Now

5 Reasons To Refinance Your Loan Right Now

Dec 2, 2020 | Interest rates, Refinance

It’s easy to get comfortable with your loan. You know what the payment is, what account it’s taken from or going into, what the amount is and you don’t need to waste time talking to the bank.

But what if you were paying too much for your loan? What if there was a better option?

With interest rates at an all-time low, it’s possible that you are – and we want to share 5 reasons why now might be the right time to refinance your loan.

  • You want to take advantage of lower interest rates

Currently the cash rate is at an all-time low and lender rates are as low as 1.98%!

Refinancing for a lower interest rate can not only save you money, it can help you to pay your home loan off sooner.

With lower interest rates comes lower repayments, meaning you end up with more money in your pocket each month. This money could be used for savings or investments – or you can use some of that saved money to make a larger repayment each month, paying your loan off faster.

  • You want to consolidate debt

If dealing with your finances feels like a full-time job, it might be time to simplify.

Consolidating debts like your car loan, credit card or personal loan into your mortgage could save you time, stress and money. Credit card and personal loan rates as high as 12% could be reduced to as low as 1.98% by doing this.

  • Your current loan doesn’t suit your needs

Whilst your home loan may have suited your needs initially, it might be time for a change.

You may want to switch from a fixed rate to a variable rate (or vice versa) or you may be interested in features that help you pay your loan off sooner, like offset transaction accounts or the ability to make extra repayments.

Perhaps you want to change your repayment frequency, split your loan between variable and fixed rates or want to be able to redraw extra repayments without fees.

Home loans aren’t a one size fits all package and there a huge variety of loans available to suit different needs. When refinancing your loan, we’ll look at what will suit you, your lifestyle and your finances best to ensure your home loan works for you.

  • Cash out and add value

This isn’t a lottery win, however, refinancing your loan could allow you to unlock the equity in your home to access additional funds.

This is ideal for homeowners who are looking to build, renovate or invest – but isn’t a decision you should take lightly. It’s important to consider the different options to decide what’s best for you.

Not sure what those options may be? Call us today

  • Your loyalty is costing you money

Your lender is likely offering new client better rates than what they are offering you.

Until this changes, it important to refinance you loan every few years to make sure you’re getting the best deal.

How much can refinancing my loan save me?

The answer is different for everyone, however, let’s look at an example.

Client switching from variable to fixed rate:

How Refinancing Your Home Loan Can Save You Money

How do I get started?

Wondering how much you could save by refinancing your loan? We’re here to help. Get in touch with our team to get started.

8 Questions You Need to Ask Your Real Estate Agent Before Selling

8 Questions You Need to Ask Your Real Estate Agent Before Selling

Nov 3, 2020 | Purchasing

It’s no secret that real estate agents sometimes get a bad rap – but whether you’re buying or selling, you’re likely going to have to work with them. So how do you choose the right one?

We thought there was no one better to ask than the team at PRD Oatley.

Despite the predicted doom and gloom of the property market this year, PRD Oatley have sold over 90 properties during 2020 and continue to set sales records in the area.

PRD Oatley Real Estate feel that being entrusted to help sell one of your greatest financial assets is a huge priviledge and responsiblity – and they’ve helped us put together some questions to help you find the right agent to sell your property.

How do you find the right real estate agent?

It all starts with the interview process. Before deciding on an agent, you’ll want to sit down and have a chat to them to find out if they’re the right fit for your needs.

The questions you’ll ask will be different depending on your individual circumstances, however, we recommend starting with the below:

  • What are your average days on market?
  • What are your current auction clearance rates?
  • What is your private treaty average discount?
  • How would you market my property?
  • What are some of your recent sales in the area?
  • How should we present our home to achieve the best result?
  • What would be the best method of sale for us?
  • How do you work with buyers?

What are some common traps when choosing a real estate agent?

One of the reasons real estate agents often bad rap is because many use the same tricks to hook vendors and buyers in. Here are a few common traps you’ll want to be wary of:

  • Buying the Listing
    Dont listen to the agent who quotes the highest price. This is the oldest trick in the book and often only leads to disappointment.  A bad agent will quote high then try and mange your expectation down during the sales period.
  • Costs
    Realise that getting the cheapest agent usually means you are really getting the cheapest agent. This will cost you at sale time. Marketing spend should be justified and strategic. Make sure the marketing is specific to your property.
  • Whos selling you property?
    Is the agent you’re talking to the same agent who will be running all of your open inspections and working with buyers?It’s important to find out which agents are going to have the most involvement with your sale and to choose them accordingly. There’s no use hiring an agent who impresses you in the meeting, only to have an entirely different set of agents managing the sale of your property.

PRD Oatley’s aim is to make the entire process of selling real estate as enjoyable and stress free as possible whilst ensuring the best possible outcome with the highest level of professionalism at all times.

We always think that one of the signs of a great business is repeat business – and around 80% of PRD Oatley’s business is from repeat and referral clientele, proving that the agency has been built on trust and great results.

PRD Oatley are market leaders in the area. This should not only provide the confidence in you making the right decision in choosing an agent, however, also confirm they deal with more buyers than any other local agency – so they probably already know your buyer.

Want to find out more? Contact PRD Oatley on 9579 6522 or visit their website at www.prd.com.au/oatley

How to Choose the Right Builder

How to Choose the Right Builder

Oct 6, 2020 | Construction Loan

With the HomeBuilder grant available until December 31st , 2020, more and more Australians are choosing to build a new home – but anyone who has ever undertaken a renovation or building project or has known someone who has will know how hard it can be to find a great builder.

Given that the success of your build is dependent on your builder, it’s important to choose the right one.

We recommend that our clients consider using a builder broker when undertaken any major building or renovation projects. It doesn’t cost anything and can turn a disaster outcome into a dream.-

What is a builder broker?

Similar to a mortgage broker, a builder broker does most of the work for you, comparing different options and presenting you with the best. Their goal is to mitigate as much risk as possible so you can find a builder that you can trust and that is the right fit for your building needs.

Builder Finders is Australia’s leading builder broker and recommended by Sanford Finance. Their builder brokers have a panel of pre-vetted builders that you can then review and compare to choose the right builder for your project. There are no fees associated with using a builder broker. Instead, Builder Finders are paid through a commission from the builder.

How does a builder broker vet builders?

A builder broker will undertake a thorough due diligence process including checking if the builder is licensed and insured, checking testimonials and speaking with former customers and suppliers. They will look at the quality of past projects and whether there were any issues. They will make sure the builder hasn’t been involved in phoenixing behaviour or has any debt issues by checking their credit reports and ASIC information.

Once the builder has been vetted, a builder broker will make sure the builder is the right fit for the particular project requirements, including having worked on similar projects before.

Is a builder broker right for me?

If you want to avoid cost and time blow outs or quality issues with your building project, but don’t have the time to undertake your own due diligence, a builder broker will help.

The goal of Builder Finders is to mitigate as much risk as possible so you can find a builder that you can trust and who is the right fit for your building needs.

How to loans work when building?

Home loans don’t come in a one size fits all package. From bridging and construction loans to interest only and variable home loans, there are a wide variety of loan types available.

It’s important that you find a home loan that works for you and that’s why we take the time to understand your individual needs, tailor a loan specifically for your situation and then support you throughout the process.

Want to find out more? Contact us today or contact Builder Finders to source a builder for your project.

How to Make the Auction Process Work For You

How to Make the Auction Process Work For You

Sep 1, 2020 | Purchasing

With auctions becoming increasingly popular and clearance records exceeding expectations, there’s a high chance that your next property purchase may be at auction – but that’s not a bad thing.

Whilst auctions often get a bad rap, we spoke to Michael Virley of MVP Auctions to find out why they’re so popular and to share his secret for making the most out of your auction experience.

The Difference Between Auction and Private Sale

The main difference of an auction is that there is a time limit on selling negotiations. An auction is a sale held at a certain place, time and date, after a marketing period. For prospective buyers, this tends to create a sense of urgency – particularly if the property is in high demand.

Michael says “There is an overwhelming amount of evidence that concludes that auction is the fairest, cleanest and most transparent way to sell and buy real estate” and we would have to agree.

When a vendor has listed a property for sale, offers are given privately. As a prospective buyer, you will likely be unaware of what your competition is willing to pay or the terms that they have put forward (for example, waiving the cooling off period or agreeing to a faster settlement period).

At an auction, prospective buyers are fully aware of their competition and are given a fair opportunity to buy. Negotiations are open for all to see and you know you are dealing with a motivated vendor who is looking to sell on the day.

The Secret to Auctions

According to Michael, the secret to making the auction process work for you happens before the big day.

“On both sides of this equation, preparation is key, knowledge is power and the power of the auction process with a deadline creates urgency and action from all concerned; buyer, seller and agent.

As an auction company, we are all about education and knowledge. We want buyers to understand the process, have confidence and engage and the same is true for the owners.”

For the Vendor

MVP Auctions meets with vendors before auction day to “discuss the campaign, their objectives, goals and motivation; allowing owners the time to clarify their situation and also the potential outcomes on auction day.

“We meet all of our owners in a Vendor Meeting in the final week of the campaign. This increases confidence in the process and also clarifies some of the many misconceptions around auction day, preparing owners to make the right decision based on knowledge, market feedback and professional advice.”

For the Buyer

For MVP Auctions, it is also important that the buyers are also informed and knowledgeable about the auction process, the potential outcomes and advantages and strategy around buying at auction.

They proudly provide videos, seminars and guides to give the confidence to buyers to participate. Michael says that “Trust and confidence = results for all concerned”. 

More From MVP Auctions

If you’d like to hear more from MVP Auctions, you can visit their website at http://mvpauctions.com.au/. There you will also find the videos and resources mentioned above.

Looking to purchase at auction soon? Get in touch and we’ll send you our tips for buying at auction.

Why 2020 Might Be The Right Time To Buy Your First Home

Why 2020 Might Be The Right Time To Buy Your First Home

Aug 5, 2020 | First Home Buyers

Owning your own home. It’s the great Australian dream and something that most people strive for – but when is the right time to buy?

With the world in the midst of a global pandemic and unemployment rates rising, you would be forgiven for thinking that right now is the worst time to buy, but for first home buyers there are various grants and schemes that could make buying a house easier and more affordable than ever.

Let’s cover the basics first:

  • Most incentives require buyers to live in the property for at least 12 months
  • Buyers whose partner has previously purchased a home are normally excluded
  • There are maximum price thresholds and eligibility criteria to meet
  • These schemes are subject to change
  • Schemes and eligibility criteria vary from state to state

Obviously, these grants, discounts and schemes will not be appropriate for every first home buyer – but it’s important to know what’s available and what you could be eligible for before looking for your first home.

We’ve made things simple for you with our Stamp Duty calculator, but we’ll also outlined the various schemes below.

NSW First Home Buyers

The Sydney property market continues to boom, however, with numerous first home buyer grants and incentives available, all hope is not lost. With these schemes, you may want to consider looking at purchasing in new areas or areas where house prices are lower.

  • Stamp Duty Axed (as of Monday July 27th) for first home buyers purchasing newly built homes valued at under $800,000 from August 1st. This scheme will only last for a period of 12 months.
  • Stamp Duty Concessions available for first home buyers purchasing new homes under $1 million in value (up from the previous limit of $800,000).
  • Stamp Duty Threshold Increased for Vacant Land with the stamp duty threshold rising from $350,000 to $400,000 and will phase out at $500,000.
  • $10,000 Grant for New Properties valued at under $600,000 and owner-builder/building contracts worth under $750,000.

Victorian First Home Buyers

  • No Stamp Duty on property under $600,000.
  • Discounted Stamp Duty on property between $600,000-$750,000.
  • $10,000 Grant for New Properties valued at under $750,000.
  • $20,000 Grant For New Regional Properties valued at under $750,000.

Queensland First Home Buyers

  • No Stamp Duty on property under $500,000 or vacant land under $250,000.
  • Discounted Stamp Duty On Properties under or equal to $549,999, or vacant land under or equal to $399,999.
  • $15,000 Grant For New Properties valued at under $750,000.

ACT First Home Buyers

From 1 July 2019, all eligible home buyers in the ACT will pay no duty. All properties in the ACT are eligible for this scheme.

Unlike the previous concession scheme, this now applies to vacant residential land and both new and established homes anywhere in the ACT and at any price. Although the concession is not restricted to first home buyers, all buyers including their partners (if any) must not have owned any other property in the last two years.

To be eligible for this duty concession, buyers must satisfy an income test which is detailed here. The combined total income of all applicants and their domestic partner/s over the 1 year period prior to the date of the grant, transfer or agreement for transfer (whichever is first) must be less than or equal to the relevant income threshold.

The ACT also offers a Pensioner Duty Concession Scheme (PDCS) to assist eligible pensioners who own a residential home to move to accommodation more suited to their needs (for example, downsizing to a townhouse) by reducing the duty payable on their purchase of a residential home or residential vacant land. This scheme is detailed here.

The First Home Owner Grant (FHOG) in the ACT no longer exists.

South Australian First Home Buyers

  • All first-home buyers pay some stamp duty.
  • Off-The-Plan Stamp Duty Concession available of up to $21,330 on properties under $500,000.
  • Varying Stamp Duty Amount Available to first home buyers on new-built or established properties.
  • $15,000 grant for properties under $575,000.

Western Australian First Home Buyers

  • No Stamp Duty on properties under $430,000 or vacant land under $300,000.
  • Discounted Stamp Duty on property between $430,000-$530,000 or vacant land valued between $300,000-$400,000.
  • $10,000 for new and for new and substantially renovated properties. The cap on the total value of the home and land varies depending on where the home is located.
  • South of the 26th parallel – value of land and building is up to $750,000. All Perth metropolitan areas are south of the 26th parallel.North of the 26th parallel – value of land and building is up to $1,000,000.

Tasmanian First Home Buyers

  • 50 percent concession on property transfer duty for first home buyers of established homes with a property value of $400,000 or lower.
  • $20,000 Grant for new properties of any value.

Northern Territory First Home Buyers

  • No Stamp Duty On Property under $500,000.
  • Discounted Stamp Duty On Properties between $500,000-$650,000.
  • Household Goods Grant of up to $2000 available.
  • $10,000 Grant For New Properties of any value, subject to eligibility (reduced from $26,000 on 7 May 2019)

Federal Grants Available

In addition to state grants and incentives, the federal government has also implemented a number of schemes that first home buyers can take advantage of.

  • The First Home Loan Deposit Scheme (FHLDS),supports first home buyers in purchasing their first home by allowing eligible buyers to purchase a home with a deposit with as little as a 5% deposit (generally first home buyers with less than a 20% deposit will need to pay lenders mortgage insurance). There are currently 27 participating lenders who are participating in this scheme.
  • The HomeBuilder scheme, providing a $25,000 grant to eligible owner-occupiers “substantially renovating” or building a new home between 4 June to 31 December 2020.
  • The First Home Super Saver Scheme, which allows first home buyers to make up to $30,000 in voluntary contributions to their superannuation to save for a home, with a limit of $15,000 per financial year.These voluntary contributions are taxed at a lower rate compared to income, allowing first-home buyers to save money faster. Applicants are also entitled to access any earnings on their extra contributions.

Thinking about purchasing your first home?

This is a process that can be daunting – but we’re here to help.

Sanford Finance will guide you through the process, giving you access to a wide range of lenders that will suit your particular requirements whilst also finding out what grants you could be eligible for.

We work for you, not the banks and will ensure you get the best possible deal on your first home loan. Get in touch with us today to get things started.