Brett Colley - Formula 1 Finance

Early this week, the federal government announced an $800 million expansion of the Help to Buy housing program, with applications opening later this year.

The program is based on shared equity, with the government contributing 30% of an eligible applicants home loan for an established property and 40% for a new build. Both property price caps and applicant income caps have also been adjusted to open the potential to more buyers.

If you would like to discuss the scheme, please call us.

It’s widely tipped that the RBA will cut rates when it meets in February from the current level of 4.35 per cent, where it has sat for more than a year.

If predications are correct and there is a 25 basis point cut, the rate will be 4.1 per cent and we anticipate lenders will feel the pressure to pass on some relief to mortgage holders.

If you want to reduce your repayments in line with a reduction in interest rates, you should call your bank to make sure your payments are decreased to the new minimum. Call us if you would like any advice on the best outcome for your loan.

With the RBA leaving the cash rate on hold this week in its last meeting for 2024, we encourage homeowners to turn their attention to what CAN be done now to achieve their home loan goals in 2025.

While home price growth is currently slowing, it is expected to gain momentum once interest rates begin to fall, though the timing of rate cuts remains uncertain, we anticipate a change in the first half of 2025.

Now is a good time to talk to your broker about refinancing possibilities for your current loan and pre-approvals if you are considering buying next year so you are prepared when the RBA meets again in Feb.

The RBA may not have moved to cut rates yet but that hasn’t stopped some lenders making their own move.

This week has seen one of the major four banks bringing their three-year fixed rates under 6% as fixed rates started dropping across the industry. As competition increases, this is an ideal time to seek advice for reassessing your mortgage options. Even a small reduction in interest rates can lead to substantial savings over the life of the loan and all important cash flow right now. We are always here for a chat.