Most Australians know their superannuation is there for retirement โ but did you know you can actually use it to invest in property?
With the right setup, your super can be used to buy an investment property through a self-managed super fund (SMSF). Itโs a strategy more Aussies are exploring to grow their retirement savings, but it comes with some key rules and responsibilities.
How It Works
To buy property using your super, youโll need to set up an SMSF. Unlike your standard super fund, an SMSF gives you full control over how your super is invested โ including the option to buy real estate.
Your SMSF can even apply for investment loans to help purchase the property. This is done through a structure called a Limited Recourse Borrowing Arrangement (LRBA), but borrowing within super is more complex than a regular home loan.
Thatโs where a trusted mortgage broker can really help โ theyโll guide you through the process, help you understand your borrowing power, and connect you with lenders who offer SMSF loans.
What Are the Rules?
Before jumping in, there are some important conditions to be aware of:
Why Use Super to Buy an Investment Property?
Itโs Not for Everyone
Is It Right for You?
Using your super to buy an investment property could be a smart move if:
Letโs Chat
Interested in using your super to build wealth through property? As experienced mortgage brokers, we can help you understand your borrowing options, compare investment loans, and work alongside your accountant or adviser to ensure itโs the right fit.
Retirement should be a time to enjoy a comfortable lifestyle. However, many retirees look back with regret, wishing they had made better financial and lifestyle choices. With early planning and guidance from a professional like a financial adviser or mortgage broker, you can avoid the most common retirement mistakes.
Below are the top four retirement regrets and practical ways to avoid them.
One of the biggest regrets retirees have is not saving enough to sustain their desired lifestyle. Many underestimate how much they will need to cover expenses like insurances, health, travel, and daily living costs.
While early retirement sounds appealing, some retirees find they miss the structure of work. On the flip side, those who work too long often regret not enjoying their wealth while still in good health.
Many retirees regret not making smarter financial decisions, particularly when it comes to passive income streams.
Many retirees regret not planning how they will spend their time, leading to boredom and even depression.
Retirement should be a time of relaxation and enjoymentโnot regret. Working with a financial adviser or mortgage broker, you can ensure that your savings, investment properties, and superannuation provide a stable and stress-free retirement. The key is early planning and making smart financial decisions.
Buying your first home is an exciting time, but it can also be a daunting process. Understanding the essentials of home loans, working with a mortgage broker, and maximising available government grants can make your journey to homeownership smoother.
Understanding Home Loans
A home loan, or mortgage, is a loan provided by a lender to help you purchase a property. As a first home buyer, itโs crucial to understand the different types of home loans available:
How Much Deposit Do You Need?
Most lenders require a minimum deposit of 5% of the propertyโs purchase price. However, if your deposit is less than 20%, you may be required to pay Lenders Mortgage Insurance (LMI), which protects the lender if you default on the loan.
First Home Buyer Grants & Schemes
The Australian government offers several first home buyer assistance programs, including:
Checking your eligibility for these schemes can significantly reduce the upfront costs of buying a home.
What Additional Costs Should You Consider?
Beyond your deposit, there are other expenses to factor in when buying a home:
Steps to Buying Your First Home
The Role of a Mortgage Broker
A mortgage broker acts as an intermediary between you and potential lenders. Instead of going directly to a bank, a mortgage broker can compare multiple lenders, negotiate better home loan terms, and help streamline the application process. This can save you time, money, and stress when securing a mortgage.
Final Thoughts
Buying your first home is a significant financial decision, but with the right knowledge and guidance from a mortgage broker, you can navigate the process with confidence. Understanding home loans, leveraging first home buyer grants, and preparing for extra costs will ensure you make informed decisions on your homeownership journey.
Can I Pay My Mortgage with a Credit Card? Everything You Need to Know
If youโve ever found yourself short on cash before your mortgage payment is due, you might have wondered: Can I pay my mortgage with a credit card?
The short answer is usually noโmost lenders do not allow direct mortgage payments via credit card.
Why Mortgage Lenders Donโt Accept Credit Cards
Most lenders prefer direct debit, bank transfers, or BPAY for mortgage repayments. Hereโs why they avoid credit card payments:
Alternatives for Managing Your Mortgage Repayments
If youโre struggling with mortgage repayments, consider these safer and smarter alternatives:
1. Speak to a Mortgage Broker
A mortgage broker can help you find a better home loan deal, negotiate lower interest rates, or even help you refinance your mortgage to reduce your repayments. If you're facing financial difficulties, a broker can also provide guidance on hardship assistance programs.
2. Negotiate with Your Lender
If you're facing financial hardship, contact your lender as soon as possible. Many banks offer hardship assistance, which may include temporary repayment pauses or reduced payment options.
Final Thoughts
While paying your mortgage with a credit card might seem like a convenient solution, the high fees, interest rates, and potential financial risks make it a poor choice in most cases. Instead, consider speaking with a mortgage broker to explore refinancing options or financial assistance programs that can make your home loan more manageable.
Buying a home is a dream for many Australians, but saving up for that deposit can feel like a mountain to climb. If youโre eager to get your foot in the door but havenโt quite reached your savings goal, a personal loan might be an option worth considering. While itโs not the right choice for everyone, a personal loan can give you a boost towards your home deposit, helping you secure your new property sooner. Hereโs how it works and what to keep in mind.
Why Use a Personal Loan for a Home Deposit?
Many first-time buyers find that building up a deposit is the biggest hurdle to securing a home loan. A personal loan can act as a top-up for your deposit, potentially making you eligible for a mortgage faster. With the added deposit, you may be able to negotiate better terms on your home loan or meet the requirements for a particular lender. Itโs essential, though, to ensure that the total borrowing remains manageable, so your monthly commitments remain affordable.
Things to Consider
How a Mortgage Broker Can Help
Taking out a personal loan for a home deposit is a big decision. This is where a mortgage broker comes in. A broker can assess your financial situation, help you understand the impact of adding a personal loan, and connect you with the right lenders.
Ready to Chat?
If you're considering a personal loan to help secure your property deposit or want guidance on navigating your mortgage options, we're here to help.
Planning to update your kitchen, build a deck, or finally tackle that dream bathroom? Renovating can be exciting, but figuring out how to fund it is often the trickiest part. The good news is that there are several smart ways to finance your home improvement projects, and a mortgage broker can guide you to the option that best fits your budget.
1. Consider a Home Loan Top-Up
If you have some equity in your home, one option is a home loan top-up. This means borrowing extra funds on top of your existing mortgage. Itโs a simple way to access cash at your current mortgage rate โ which is often much lower than other types of loans. Your mortgage broker can help you assess if this is an option based on your equity and lenderโs requirements.
2. Redraw from Your Home Loan
For homeowners with a redraw facility attached to their home loan, this is another straightforward option. If youโve been paying extra into your mortgage, you may be able to withdraw these funds to fund your renovations. Redrawing doesnโt require a new loan application and gives you quick access to cash.
3. Look at Refinancing
If youโre planning significant renovations, refinancing your home loan might be the way to go. Refinancing means replacing your current loan with a new one that may offer a lower interest rate or better features. Plus, it could let you release equity to fund your project. A mortgage broker can help you determine if refinancing makes sense and find a deal that supports your renovation goals.
4. Consider a Personal Loan
For smaller projects or quick fixes, a personal loan can work well. While interest rates for personal loans are typically higher than mortgage rates, theyโre still an option if you only need a smaller amount or if other options arenโt suitable.
Final Thoughts
Home renovations are a great way to add value and enjoy your living space more โ and funding them doesnโt have to be complicated! Whether itโs a home loan top-up, a redraw, or refinancing, a mortgage broker can help you navigate the options, find competitive rates, and simplify the process.
Ready to start your renovation journey? Contact us today!
Your 20s are an exciting timeโfull of new experiences, responsibilities, and opportunities. Itโs 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 donโt overspend and fall into debt. Start by listing all your sources of income, followed by your essential expensesโlike 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 monthsโ 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
Itโs 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, youโll set yourself up for success in the years to come. Remember, the small steps you take today can make a huge difference tomorrowโso start building good financial habits now!
Paying off your mortgage faster is a fantastic way to save money and gain financial freedom sooner. Whether you're working with a mortgage broker or managing your home loan on your own, here are some simple, effective strategies to help you get there quicker.
1. Make Extra Payments
A little extra goes a long way. Consider making extra payments whenever possible:
2. Use an Offset Account
An offset account is a smart way to reduce the interest on your mortgage. Your savings in an offset account directly reduce the balance on which you pay interest. For example, if you have $20,000 in an offset account and a $300,000 mortgage, youโll only pay interest on $280,000.
3. Stay on Top of Your Budget
Cutting back on small, unnecessary expenses can free up extra cash to put towards your mortgage. Whether itโs skipping a few takeaway coffees each week or reducing your subscription services, every little bit helps!
4. Speak to a Mortgage Broker
Refinancing to a lower rate can help you pay off your mortgage faster. A mortgage broker can help you find the best rates and guide you through the process to ensure it fits your budget.
Final Thoughts
Paying off your mortgage early doesnโt have to be complicated. By making extra payments, refinancing, and staying disciplined, you can save thousands and enjoy the peace of mind that comes with owning your home outright.
Get in touch with us to explore how we can help you manage your home loan more effectively and achieve your financial goals sooner.
When it comes to budgeting, thereโs no shortage of advice out there. If thereโs one tip that stands out above the rest for making a real difference in your financial life, itโs this: Pay yourself first.
What Does โPay Yourself Firstโ Mean?
Paying yourself first means making sure you prioritise savings and investments before any other expenses. Instead of paying everyone else first and then waiting to see whatโs left over at the end of the month to put into savings, you set aside a predetermined amount as soon as you get paid.
Why Is This Tip So Effective?
1. It Creates Consistent Savings Habits
One of the biggest challenges in budgeting is maintaining a consistent savings routine. It's easy to let savings fall by the wayside when unexpected expenses arise or when you simply spend more than planned. By paying yourself first, you automate your savings and make it a non-negotiable part of your budget.
2. It Reduces the Temptation to Overspend
By allocating a portion of your income to savings or investments right away, youโre left with less income to spend on other things. This reduces overspending and impulse buying.
3. It Prioritises Your Financial Goals
We all have financial goals, whether itโs building an emergency fund, saving for a house deposit, or investing for retirement. Paying yourself first ensures that these goals are funded before anything else.
How to Implement the โPay Yourself Firstโ Strategy
1. Set Clear Financial Goals
Before you can pay yourself first, you need to know what youโre saving for. Set clear financial goals, whether itโs an emergency fund, retirement savings, or a dream holiday. Having specific targets will make it easier to determine how much to set aside each month.
2. Determine the Amount
Decide on a percentage of your income that youโll pay yourself first. Start with 10% of your income and then slowly build up from there. The key is to choose an amount thatโs both challenging and realistic.
3. Automate Your Savings
The easiest way to ensure you pay yourself first is to automate the process. Ask your employer to pay your chosen amount to a separate savings or investment account on payday. By automating your savings, you remove the temptation to skip a month.
Paying yourself first is the #1 budgeting tip that can truly change your financial life. By prioritising your savings and investments, you set yourself up for long-term success and ensure that your money is working for you, not the other way around. Start today, and watch as this small shift in mindset leads to big rewards.
Entering the property market can feel like a daunting task, especially for renters who are used to the flexibility and lower financial commitment of renting. However, with some planning and smart decisions, making the transition from renting to owning can be within reach. Here are some simple tips to help you enter the property market.
1. Understand Your Financial Position
Before considering buying a property, it's crucial to have a clear understanding of your financial situation. Review your income, savings, and existing debts. Prepare a budget to track your expenses and see how much you can realistically save each month. This will give you an idea of how much you can afford to spend on a home, including the deposit, ongoing mortgage repayments, and additional costs like stamp duty and legal fees.
2. Set a Realistic Savings Goal
Generally, youโll need at least 5-20% of the propertyโs purchase price for a deposit. Setting a realistic savings goal is key. To do this, calculate how much you need for a deposit on the type of property you want to buy. Then, create a savings plan. Consider automating your savings by setting up a direct debit into a dedicated savings account each payday.
3. Consider Government Schemes and Grants
The Australian government offers several schemes to help first-home buyers. These include the First Home Owner Grant (FHOG), the First Home Super Saver Scheme (FHSSS), and various state-specific incentives. These grants can significantly reduce the financial burden of buying your first home.
4. Get Pre-Approval for a Loan
Before you start house hunting, it's wise to get pre-approval for a mortgage. Pre-approval gives you a clear picture of how much you can borrow and shows sellers that you're a serious buyer. It can also help you narrow down your property search to homes within your budget. Speak to a mortgage broker or your bank to understand the different loan options available and get a pre-approval that suits your financial situation.
5. Start Small
If the thought of buying your dream home seems overwhelming, consider starting small. Purchasing a more affordable property, such as a unit or a home in a less expensive area, can be a stepping stone to your ideal home. This approach allows you to enter the market sooner, build equity, and eventually sell or upgrade to a larger property as your financial situation improves.
6. Seek Professional Advice
Investing in professional advice can save you money in the long run and make the process of buying your first home smoother and less stressful.
Your dream of owning a home could be closer than you think.