Your 20s are an exciting time—full of new experiences, responsibilities, and opportunities. It’s also a crucial period to start building good financial habits that will set you up for long-term success. While managing money may seem overwhelming at first, taking control of your finances now can help you avoid stress later on. Here are some of the best financial tips to follow in your 20s.

1. Start Budgeting Early

Creating a budget is one of the most important financial skills you can develop in your 20s. A budget helps you track your income and expenses, ensuring that you don’t overspend and fall into debt. Start by listing all your sources of income, followed by your essential expenses—like rent, utilities, groceries, and transport. Whatever is left over can be allocated to savings, investments, or leisure.

Tip: Use budgeting apps or tools to make tracking your expenses easy and even a bit fun!

2. Build an Emergency Fund

Life is unpredictable, and having an emergency fund can save you from financial stress in tough times. Aim to save enough to cover at least 3-6 months’ worth of living expenses. This fund will act as a cushion in case of job loss, unexpected medical bills, or other emergencies.

Tip: Set up automatic transfers to a savings account to build your emergency fund without even thinking about it.

3. Avoid Credit Card Debt

It’s tempting to rely on credit cards when you're short on cash, but credit card debt can spiral out of control due to high-interest rates. Always try to pay off your balance in full each month to avoid interest charges and protect your credit score.

Tip: If you do need to use a credit card, only spend what you know you can pay off by the end of the billing cycle.

Final Thoughts

Your 20s are the perfect time to lay the groundwork for a financially stable future. By budgeting, saving, and investing wisely, you’ll set yourself up for success in the years to come. Remember, the small steps you take today can make a huge difference tomorrow—so start building good financial habits now!

If you’ve owned your home for a while, you’ve likely built up some equity. But how can you use that equity wisely? Whether it’s for renovations, investments, or paying off debts, tapping into your home equity can be a smart move—if done right. Here’s how to make the most of it.

What is Home Equity?

Home equity is the difference between what your property is worth and how much you still owe on your home loan. If your house is worth $600,000 and you owe $300,000 on your mortgage, you’ve got $300,000 in equity. The more you pay off and the more your home’s value increases, the more equity you build.

Best Ways to Use Your Equity

There are plenty of ways to use your equity to achieve financial goals, like:

• Renovations: Using equity for home improvements can increase your property’s value.
• Investing: You can use equity as a deposit for an investment property.
• Debt Consolidation: Pay off high-interest debts by rolling them into your mortgage at a lower rate.

How to Access Your Equity

There are a few ways to tap into your equity:

• Refinancing: Refinance your mortgage and borrow more based on your home’s increased value.
• Top up existing loan: Speak to your current lender about an increase to your existing mortgage.

Why Speak to a Mortgage Broker?

Navigating home loans and equity options can be tricky. A mortgage broker helps by:

• Finding the best loan for your situation
• Offering access to multiple lenders
• Simplifying the process and paperwork

Final Thoughts

Using your home equity can help you achieve your financial goals, but it’s important to do it wisely. A mortgage broker can guide you through your options, ensuring you get the best deal for your needs.

If you’re ready to explore how to use your property equity, get in touch with us today! We’re here to help you make the most of your home’s value.

If you’ve been looking into property investment, chances are you’ve come across the term negative gearing. What does it really mean?

So, What is Negative Gearing?

Negative gearing happens when the costs of owning an investment property—like your mortgage repayments, interest, and maintenance—are higher than the income you earn from it (usually in the form of rent). In other words, you’re spending more on the property than it’s bringing in.

At first glance, that might seem like a bad thing but many investors see this as a smart strategy because of the potential tax benefits and future profits.

How Does It Work in Practice?

Imagine you’ve just bought an investment property, and you’ve taken out a home loan to finance it. You’re renting it out, so you’ve got some income coming in, but once you add up the mortgage repayments, interest, maintenance costs, and maybe even property management fees, you realise you’re spending more than you’re earning.

This is where negative gearing comes into play. Yes, you’re technically making a loss in the short term, but there are some perks that can help take the sting out of it—like tax deductions.

Tax Benefits of Negative Gearing

One of the biggest reasons people use negative gearing is the tax advantage. If your property is costing you more than it’s making, you can use that loss to reduce your taxable income.

Let’s say you’ve made a $5,000 loss on your investment property this year. You can offset that $5,000 loss against your other income, like your salary. This means you’ll pay less tax, which helps cushion the blow of making a short-term loss on the property.

Long-Term Gains: Is It Worth It?

The big idea behind negative gearing is that, even though you’re making a loss now, the property’s value will increase over time. So when you eventually sell it, the profit (or capital gains) should more than make up for the losses.

Of course, property prices don’t always go up, and factors like interest rates and market trends can have an impact. But if the property’s value increases significantly, those short-term losses might seem like a small price to pay for the long-term gain.

Is Negative Gearing Right for You?

Negative gearing isn’t a one-size-fits-all solution. It works best for people who have the cash flow to handle the losses in the short term and are willing to wait for long-term benefits.

It’s also important to remember that while the tax benefits are appealing, they shouldn’t be the only reason you decide to negatively gear a property. You’ll want to make sure the property has good growth potential and that you’re comfortable with the risks involved.

Before you dive in, it’s a great idea to talk to a mortgage broker. They can help you figure out if negative gearing fits with your investment goals and your financial situation.

Negative gearing can be a useful strategy for property investors looking for long-term gains, even if it means taking a short-term loss. The tax benefits can be a big help, and if the property’s value increases over time, you could see significant rewards down the track.

But like any investment strategy, it’s important to go in with your eyes open. Make sure you understand the risks and talk to an expert to see if it’s the right approach for you.

If you’d like more information or personalised advice on property investment, get in touch with us today! We’re here to help you navigate the world of home loans, mortgages, and investment strategies

Getting ready to apply for a home loan is a big deal, and you want to make sure everything goes as smoothly as possible. But there’s one common mistake that can really hurt your chances of getting approved: Don’t take on new debt before applying for a home loan.

Why New Debt Can Be a Problem

Lenders want to know that you’re financially stable and able to manage your home loan repayments. When you take on new debt right before applying, it can mess with how they view your financial situation. Here’s why:

1. It Changes Your Debt-to-Income Ratio
   Lenders look at your debt-to-income (DTI) ratio, which compares how much money you earn each month to how much you owe. If you take on new debt—like a car loan or finance a big purchase—your DTI goes up. A high DTI can make lenders nervous about giving you a home loan because they want to be sure you can comfortably manage your repayments.
2. It Can Lower Your Credit Score
   Your credit score is super important when applying for a home loan. Taking on new debt or applying for new credit can temporarily lower your score. Even a small dip could mean higher interest rates or, in some cases, a denied application.
3. It Can Reduce How Much You Can Borrow
   Taking on extra debt before applying for a home loan doesn’t just affect your application, it can also limit how much you can borrow. Lenders take your existing debt into account when determining how much they’re willing to lend you. The more debt you have, the less borrowing power you’ll have for your home loan, which might leave you with fewer options for the home you want.

When you’re getting ready to apply for a home loan, it’s important to keep your finances steady. Avoid taking on new debt until after you’ve been approved. If you’re unsure about what’s best for your situation, a mortgage broker can give you the guidance you need to feel confident throughout the process.

By keeping your financial picture stable and leaning on the support of a mortgage broker, you’ll be well on your way to securing the perfect home loan and making your dream of homeownership a reality.

Buying or selling a home can be an exciting, yet sometimes overwhelming, experience. One of the key professionals who can help make the process smoother is a conveyancer.

But what exactly does a conveyancer do?

What is a Conveyancer?

A conveyancer is a licensed professional whose main job is to handle all the legal paperwork involved in transferring property ownership. They make sure that everything goes by the book when it comes to the sale or purchase of a home.

Think of them as your go-to expert for everything related to the legal side of buying or selling a property. They look after your interests and ensure that all the legal details are properly taken care of.

What Does a Conveyancer Do?

A conveyancer will assist you from start to finish in a property transaction. Here are some of the main tasks they handle:

1. Reviewing and Preparing Contracts Whether you’re buying or selling, there will be contracts involved. Your conveyancer will make sure the contract is fair and clear, and will point out any issues that could affect your property deal.
2. Doing Property Searches Conveyancers run various checks on the property you’re buying to make sure there aren’t any hidden issues. This includes checking for things like unpaid rates, planning restrictions, and any legal rights that could affect the land. These checks can protect you from potential problems down the track.
3. Coordinating with Other Professionals Your conveyancer acts as a middleman between you, the other party’s conveyancer, the real estate agent, your mortgage broker, and even your lender. They make sure all the necessary documents and payments are exchanged at the right time.
4. Handling the Financials On the day of settlement, the conveyancer ensures all the money is transferred to the right places. This includes paying the seller, settling any stamp duty, and finalising the transfer of the property title into your name.
5. Lodging the Legal Documents After settlement, your conveyancer will file the necessary paperwork with the land titles office, making sure the property is officially transferred into your name (and ensuring your home loan or mortgage is registered properly if you're taking one out).

Why You Need a Conveyancer When Taking Out a Home Loan

Your conveyancer ensures that everything lines up with what the lender requires. They’ll double-check that all the legal details of the property are in order, helping to avoid any last-minute hiccups that could delay your home loan approval or settlement.

Conveyancer vs Solicitor: What’s the Difference?

While both conveyancers and solicitors can handle property transactions, conveyancers are specialists who focus solely on this area of law. Solicitors, on the other hand, may offer more broad legal services, which can include conveyancing but usually at a higher cost. For most straightforward property transactions, a conveyancer is the more cost-effective option.

Do I Really Need a Conveyancer?

Yes, you do! Whether you’re buying or selling, a conveyancer makes sure the process is stress-free and legally sound. They help to avoid common pitfalls that can arise in property transactions, and they’ll be there to make sure you’re protected every step of the way.

In Summary

When it comes to buying or selling property, having a conveyancer on your team makes the whole process much easier. They handle the tricky legal bits so you can enjoy the journey!

If you’re thinking about applying for a home loan, you might have heard that getting a credit card is essential to prove you have good credit. But is that really the case? The idea that you must have a credit card for banks to see you’re reliable can be a bit misleading. Let’s break it down and see if a credit card is actually necessary for building a good credit score that’ll help you secure that mortgage.

What Exactly is a Credit Score?

A credit score is like your financial report card—it shows lenders how well you handle borrowing money and making repayments. If you’ve got a good score, it shows banks that you’re a trustworthy borrower, making it easier to get a mortgage with better interest rates.

Your credit score is made up of a few key things:

• Payment history: Do you pay your bills and debts on time?
• Credit use: How much of your available credit are you using?
• Length of credit history: How long have you had credit accounts open?
• Types of credit: Do you have different types of credit, like personal loans, home loans, or credit cards?
• Credit inquiries: How often are you applying for credit?

Can You Build Good Credit Without a Credit Card?

Yes, you can absolutely build good credit without having a credit card! While credit cards can be useful, there are plenty of other ways to show you’re responsible with your money. Here are some ways you can build your credit without a card:

1. Personal Loans:
   Taking out a personal loan for things like a car or home improvements and making regular, on-time payments can help boost your credit score. This shows lenders that you’re reliable with managing debt.
2. Car Loans:
   Paying these on time shows banks you can manage larger financial commitments—great news when you’re applying for a mortgage.
3. Utility Bills:
   Did you know paying your utility bills—like your phone, internet, or electricity—on time can also help? Some of these payments are reported to credit agencies, which helps build your credit history over time. Keeping up with these can make you look good when applying for a home loan.

Why a Credit Card Can Help (If Used Wisely)

Although a credit card isn’t essential, it can be a helpful tool when it comes to building your credit score—if you use it wisely. Here’s why it might help with a home loan:

• Payment History: If you make regular, on-time payments, your credit score will benefit. This is something lenders look for when approving a home loan.
• Credit Mix: Lenders like to see that you can manage different types of credit. A mix of a home loan, personal loan, and credit card shows that you’re capable of juggling different financial products.
• Credit Use: Keeping your balance low compared to your credit limit on a credit card helps show you’re not over-relying on credit, which is a positive when banks review your mortgage application.

Of course, if you’re not confident with credit cards or think it might tempt you to overspend, it’s better to avoid them. Missed payments or maxing out your card can do more harm than good to your credit score, and that could make things harder when applying for a home loan.

How a Mortgage Broker Can Help

If you’re working towards securing a home loan, a mortgage broker can be your best ally. They can help you understand what’s affecting your credit score and guide you toward getting the best home loan deal based on your financial situation. Plus, a mortgage broker can help you navigate the often confusing world of lending criteria, ensuring you know how your credit score plays into the process.

The Bottom Line: Do You Really Need a Credit Card?

In short, no—you don’t need a credit card to build good credit. It’s all about how well you manage the credit you do have, whether it’s a personal loan, home loan, or even utility bills. If you’re not sure where to start, or if you’re preparing to apply for a home loan, reaching out to a mortgage broker for advice is a smart move.

Get in Touch

If you’re thinking about applying for a home loan or need help building your credit score, we’re here to help! We can guide you through the process and make sure you’re on the right track to securing the best home loan deal.

Paying off your home loan can sometimes feel like an endless journey, but what if there was a way to speed things up? One clever strategy that many people overlook is using an investment property to help repay your mortgage faster. By stepping into the world of property investment, you can create additional income that could make a big difference to your mortgage repayments. Let’s break down how this works and how you can get started.

What’s an Investment Property?

An investment property is simply a property that you buy with the aim of earning money from it, either through renting it out or selling it for a profit later on. For many Aussies, buying an investment property is not just about growing wealth; it’s also about using that extra income to pay off their home loan quicker.

How Can It Help with My Mortgage?

1. Extra Income from Rent:
   As an investor, you’ll collect rent from your tenants. This rental income can be a real game-changer. Instead of just covering the costs of the investment property, you can also use it to make extra repayments on your home loan. These extra repayments can help reduce the amount of interest you pay over the life of your loan, meaning you could be mortgage-free sooner.
2. Tax Perks:
   The Australian tax system offers some nice benefits for property investors. For example, if your investment property costs more to maintain than the income it generates, you might be able to claim that loss against your other income. This is known as negative gearing, and it can lead to a nice tax refund. You can use that refund to pay off your mortgage even faster.
3. Property Value Growth:
   Over time, your investment property might increase in value. If that happens, you could sell it and use the profit to pay down your mortgage.
4. Debt Recycling:
   Debt recycling is a strategy where you use the equity in your investment property to borrow money, which you then invest in other income-producing assets. The income from these investments can help pay off your mortgage faster.

Why You Should Talk to a Mortgage Broker

Navigating the world of home loans and property investment can be tricky, but that’s where a good mortgage broker comes in. They can help you find the best home loan rates, structure your loans in a way that works for you, and make sure you’re getting the most out of any tax benefits. With a mortgage broker by your side, you’ll have the confidence to make smart financial decisions and get the most out of your investment property.

Things to Keep in Mind

While the idea of using an investment property to pay off your mortgage faster is exciting, it’s important to remember that property investment isn’t without risks. Property prices can go up and down, there may be times when your property is vacant, and unexpected expenses can crop up. That’s why it’s crucial to do your homework and get professional advice before taking the plunge.

Wrapping It Up

Investing in property can be a fantastic way to help you pay off your home loan sooner and build wealth at the same time. By generating rental income, taking advantage of tax benefits, and possibly enjoying capital growth, you can make your mortgage a thing of the past faster than you might have thought. Just remember to consult with a mortgage broker to ensure you’re on the right track and to help navigate any bumps along the way.

If you’re interested in learning more about how an investment property can help you pay off your mortgage faster, or if you’d like to explore your home loan options, get in touch with us. Our team of is here to help you make the best financial decisions for your future.

Understanding the difference between a savings account and an offset account can make a big impact on how quickly you can pay off your mortgage. Let’s break down the basics to help you decide which option might be better for you.

What’s a Savings Account?

A savings account is where you deposit money and earn interest. It’s a safe place to grow your money, but the interest earned is usually taxed, and often lower than your mortgage interest rate.

What’s an Offset Account?

An offset account is linked to your home loan. The balance in this account is deducted from your mortgage balance when calculating interest, reducing the amount of interest you pay. For example, if you have $20,000 in your offset account and a $300,000 mortgage, you’ll only pay interest on $280,000.

Savings Accounts vs Offset Accounts:

1. Interest Earnings vs Interest Savings:
   • Savings Account: You earn interest on the money you put in, but keep in mind, interest rates can be quite low, and you’ll also need to pay tax on that interest.
   • Offset Account: Instead of earning interest, you save money by paying less interest on your mortgage. The interest savings here are often greater than what you’d earn in a savings account, especially over the life of your home loan.
2. Tax Benefits:
   • Savings Account: The interest you earn is considered income, so you’ll pay tax on it as part of your regular income tax.
   • Offset Account: There’s no tax to worry about because you’re not earning interest; you’re just reducing the interest you pay on your mortgage, making it a more tax-effective option.
3. Ease of Access:
   • Both accounts are easily accessible, but if you withdraw money from your offset account, remember that your mortgage interest will go up since you’re offsetting less of your loan.
4. Long-Term Benefits:
   • If your main goal is to get that mortgage off your back as quickly as possible, an offset account is usually the better bet. By reducing the interest you pay, more of your repayments go towards paying down the loan itself, speeding up the process.

Which Helps You Pay Off Your Mortgage Faster?

An offset account is the better choice to pay down a mortgage faster. The reduced interest payments mean more of your repayments go towards the principal, helping you clear your debt sooner.

The Bottom Line

If your goal is to pay off your mortgage quickly, an offset account is likely the smarter choice. However, everyone’s situation is different.

Need help deciding between a savings account and an offset account for your home loan? Get in touch with us today! We can guide you through your options and find the best strategy to help you pay off your mortgage faster.

Paying off your mortgage faster is a goal for many homeowners, and combining a credit card with an offset account can be a smart way to achieve this. Here’s how these two tools can work together to save you money and reduce your mortgage term.

What Is an Offset Account?

An offset account is a bank account linked to your home loan. The balance in this account offsets your mortgage balance, so you pay interest only on the difference. For example, if your mortgage is $400,000 and you have $50,000 in your offset account, you’ll only pay interest on $350,000. This reduces the amount of interest you pay over time, helping you pay off your loan faster.

How Does a Credit Card Fit In?

Using a credit card for your everyday expenses allows you to keep more money in your offset account for longer. Here’s the basic strategy:

1. Deposit Your Income into the Offset Account: As soon as you get paid, deposit your income into the offset account. The more money in the account, the less interest you pay on your mortgage.
2. Use Your Credit Card for Daily Purchases: Pay for groceries, bills, and other expenses with your credit card, keeping your cash in the offset account.
3. Pay Off the Credit Card in Full: Ensure you pay off your credit card balance in full each month to avoid interest charges. This way, you maximise your interest savings on your mortgage.

Benefits and Considerations

• Interest Savings: More money in your offset account means less interest on your mortgage, potentially saving you thousands.
• Faster Mortgage Repayment: With less interest, more of your payments go toward the principal, shortening your loan term.
• Discipline Required: To make this work, you must pay off your credit card in full each month and avoid unnecessary fees.

Is This Strategy Right for You?

If you’re disciplined with your spending and can manage your finances well, this strategy can be highly effective. However, if you’re unsure, a mortgage broker can help you decide if it’s the right approach for you.

By using a credit card and offset account wisely, you can pay off your mortgage faster.

If you have any questions or need personalised advice, get in touch. We're here to help you make the most of your mortgage and move closer to owning your home outright.

Understanding the world of mortgages, and home loans can be tricky, especially when you're faced with terms like "offset account" and "redraw facility." Lets break down the key differences between the two.

What’s an Offset Account?

Think of an offset account as your regular savings account, but with a twist—it’s linked to your mortgage. The money you keep in this account offsets (or reduces) the amount of your home loan that’s charged interest. For example, if you have a $400,000 mortgage and $50,000 in your offset account, you’ll only pay interest on $350,000.

Why It’s Great:

• Save on Interest: The more you keep in your offset, the less interest you pay.
• Easy Access: You can use it just like any other bank account—withdraw and deposit money whenever you like.
• Tax-Free: You don’t pay tax on the interest you save.

If you’ve got some savings sitting around, an offset account is a smart way to cut down your mortgage costs.

What’s a Redraw Facility?

A redraw facility is like a little safety net. When you make extra repayments on your mortgage, you’re reducing the overall loan amount, which means you pay less interest. But if you need that extra cash later on, you can "redraw" it.

Why It’s Handy:

• Pay Less Interest: Extra repayments lower your mortgage balance and reduce interest.
• Access Extra Funds: Need the money back? You can withdraw those extra payments when necessary.
• Some Limits: Be aware that some lenders might limit how often or how much you can redraw.

A redraw facility is perfect if you’re focused on paying off your mortgage quickly but want the option to access your extra payments if needed.

So, Which is Better?

It really depends on your needs. If you like the idea of having instant access to your savings while reducing your mortgage interest, an offset account might be for you. On the other hand, if you’re keen to pay down your mortgage faster and don’t mind having a bit less flexibility, a redraw facility could be the way to go.

In short, both options can help you save on your mortgage.

Got questions? Get in touch with us today! We’re here to help you navigate your mortgage options and find the best solution for your needs.