First Home Buyers Archives - Ask Alan Heath - Mortgage Broker (Brisbane)

11 factors to consider when looking for your best home loan

August 13, 2019

Before we start, the best tip I can give you is… DO NOT DO IT YOURSELF… It took me years to work out that when friends looked at my home renovations and said, “nice tiling … do it yourself?” it was not a compliment. They were being polite. The fact that they could tell I had done it myself said it all.

I was about to start on this article when a thought appeared – why tell my clients (some of whom have been with me for 10-20 years) what they should look for? When instead I could ask them, what was most important to them, so I did.

Good News Ahead

May 28, 2019

The current market mood was caused by negative Government intervention to suppress buyer demand and also the election itself.

Sentiment has changed post-election and now positive Government intervention brings good news again for buyers.

There are 4 key areas that signal this.

APRA has relaxed its tightening bias, now “encouraging” banks to lower their “assessment rate” (Banks currently assess your loan as if the rate is 7.5%, they will now be able to assess as if the rate is 6.5%) Your borrowing power will now be higher. (APRA answers to the Treasurer. This is clearly a government relaxation). https://www.abc.net.au/news/2019-05-21/australians-could-borrow-more-under-apra-proposal-on-mortgage-l/11133686

Ask Alan Mortgage Brokers Brisbane City Home Loans

How everyone will be better off post-election

May 22, 2019

We had an election where one of the choices we had to make, in relation to housing, allowed one generation in the population to benefit only at the expense of others.

What we chose instead though is to the benefit of every generation – yes that is possible.

First Home Buyers are the BIGGEST winners.
The cash deposit required has been the largest hurdle for them to overcome. Until now First Home Buyers have needed to find 5% of purchase price PLUS costs to get those keys to the front door. Mortgage Insurance (of around 3.5%) was the biggest cost. On a $500k purchase – this meant they had to find $42,500.

A Buyers Market

January 10, 2019

Most people misunderstand badly the term “buyers’ market” and hence never take advantage of one.

A buyers’ market is one where no-one is buying.

Consequently, it is a terrible time to sell.

In a buyers’ market there are more sellers than buyers, buyers can take their time, negotiate price and/or conditions to suit themselves and if a seller doesn’t “meet” their demands then the buyer moves on to a seller who will.

Lots of Noise but Very Little Clarity

November 22, 2018

Who wouldn’t want house price to go down? – I’ll tell you who – that would be EVERY person who owns a house.

One side of politics at the moment sets the country against itself – the politics supposedly of the “haves” and the “have-nots”. What a sad way to view life and aspiration.

Here is a truth – EVERY person who buys a house (be it their first or their tenth) wants house price to be down when they buy.

Interest Rate Update

August 31, 2018

Following the most recent Reserve Bank meeting earlier this month, it is being widely interpreted that the official cash rate is likely to stay on hold until late 2019 (Bill Evans, Westpac Chief Economist. There are now even interpretations of rates on hold until late 2020. ClickHere

The factors in play: the exuberance of regulators (APRA / ASIC) have done all of the Reserve Bank’s heavy lifting. The Royal Commission is causing banks to pull back even further. The Treasurer now mentions an “unintended” credit tightening.

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