Posted by Nicola Elkington in Newsfeed on July 17th, 2024
If the fixed-rate period of your home loan is coming to an end, it can be daunting having to re-evaluate your home loan options and try to find the best deal for your circumstances.
This is especially true if you’re one of the hundreds of thousands of Australians who decided to fix their home loan interest rate at record low rates.
Two years ago, fixed rates dropped below 2 percent. Since then the Reserve Bank of Australia has hiked the cash rate an incredible 13 times, seeing borrowers roll off fixed interest rates below 2 percent to variable rates in the mid 6 percent.
So what are your options when you find yourself potentially having to pay thousands of dollars more each month to service your home loans?
Don’t wait for the RBA, get your own rate cut today!
Although the financial certainty of paying the same fixed interest rates on your home loan every month is ending, this doesn’t mean you have to automatically revert to your existing lender’s standard variable rate.
You may decide to negotiate a new fixed-rate term with your existing lender, however bear in mind you’re taking the risk of locking yourself into current interest rates for a set period of time just as many forecasters are predicting that the Reserve Bank may decide to drop interest rates.
The end of the fixed-rate period of your home loan also provides you with a great opportunity to refinance if you have enough equity in your property.
Switching your home loan provider may seem like a hassle, but with Mates Rates Mortgage Brokers, the process is seamless and highly beneficial. We not only talk you through your options and find the best rate for you – we also save you tens of thousands of dollars for the term of your loan!
We understand that navigating the myriad of home loan options can be overwhelming. Our expert brokers do the heavy lifting by comparing various loans and lenders to find the best fit for your needs.
This comparison goes beyond just interest rates, taking into account features like offset accounts, redraw facilities, and flexible repayment options.
By letting us handle the loan comparison and negotiation process, you save precious time and avoid the complexities involved in dealing with multiple lenders.
Our extensive knowledge and experience in the mortgage market enable us to secure the most competitive rates and terms on the market, ultimately saving you money over the life of your loan.
We make the transition to a new home loan as smooth as possible in 4 easy steps.
In your initial consultation you’ll discuss your financial situation and goals with our expert brokers. We then research and present the best loan options tailored to your needs.
Our team assists you with the application process, ensuring all your paperwork is accurately completed and submitted.
And then we provide ongoing support post-settlement, we continue to provide support and credit your loan with the monthly cash-back.
One of the standout benefits of switching to Mates Rates Mortgage Brokers is our exceptional cash-back incentive.
Unlike other brokers, we credit ALL of our broker trailing commissions back to you as a cash-back credit to your home loan EVERY SINGLE MONTH for the life of your loan.
This cash-back can significantly reduce your loan balance faster, leading to substantial savings in interest payments over time.
Our Mates Rates Mortgage Brokers cash-back program is straightforward and transparent:
As your fixed-rate term of your home loan ends, switching to Mates Rates Mortgage Brokers can provide significant financial benefits and real peace of mind.
Our comprehensive loan comparison service, combined with the unparalleled cash-back incentive, ensures you get the very best deal on your home loan while saving time and money.
You can find out just how much money you can save by using our free Cash-back calculator.
Contact us today to explore your options and get your own rate cut today!
Posted by Nicola Elkington in Newsfeed on May 9th, 2024
In 2024, the age-old question of whether to rent or buy a home in Australia continues to simmer, fueled by fluctuating market conditions, economic uncertainties, and shifting demographics.
Both buyers and renters face significant hurdles at the moment. For renters, there is a national rental vacancy rate of around 1% and Australian rents increasing by an incredible almost 30% since the COVID pandemic. Buyers, on the other hand, have seen interest rates increase by a total four percentage point.
Let’s take a closer look at the cost of buying and renting in Australian cities, strategies for managing housing costs and how a Mates Rates Mortgage cash back offer can help reduce the cost of purchasing a home.
For many decades, renting has been considered the more affordable option. In fact, as recently as just over 12 months ago, it was still cheaper to rent than buy a house in 90% of Australian suburbs.
How quickly things can change! The increases in interest rates have affected renters as well as home buyers too, causing massive rent increases around the country in the past year, especially in our capital cities.
By the end of 2023, it was revealed that when comparing the forecast cost of renting a property for 10 years versus purchasing one with a 20 per cent deposit (adding in stamp duty and rates), up to one-third of all renters would now be financially better off buying the apartment or unit that they live in many major capital cities.
Would you believe that it’s now more expensive to rent in the Gold Coast than it is in any other city in Australia!
And new figures, released in Domain’s latest Rent Report, showed that across the capital cities, the cost of renting a house has gone up by 10.5 per cent in the past year to reach a record median rental of $630 a week.
In fact, it is now more expensive to rent in certain Gold Coast and Perth suburbs than it is in some of Sydney’s famed beachfront neighbourhoods and Melbourne’s most prestigious neighbourhoods.
As Gold Coast house rents reach a record high of $845 per week, that’s a median weekly rise of $45 (or 5.6 per cent) over the March quarter, almost $100 more than the average Sydneysider pays and $225 more than Brisbanites.
Massive increases in rental prices are not only occurring in the Gold Coast.
Australia’s major cities have consistently ranked among the world’s most expensive in terms of housing costs. In 2024, the rental market remains particularly challenging, with tenants grappling with soaring rents and limited availability.
According to the latest Domain Rent Report, across Australia’s capital cities the cost of renting a house has gone up by 10.5 % in the past year to reach a record median rental of $630 a week and the cost of renting a unit has gone up by 12.7 % in the past year to reach a record median rental of $620 a week.
Navigating these rental markets requires careful planning and consideration, particularly for individuals and families facing budget constraints or seeking long-term stability. And many renters, buying may well now be the more affordable option!
Unfortunately in the current economic climate, there is not a lot you can do to make renting more affordable unless you’re okay with taking in a flatmate, looking for a second job, moving back in with Mum and Dad, moving to the country or surviving for years on two minute noodles!
Although renting provides flexibility and avoids the long-term commitment of homeownership, now may well be the time to consider buying instead of renting.
For renters facing steep prices in Australia’s major cities, home ownership is a strategy that not only provides both housing security and a means of building equity, but in the current economic climate, it is increasingly becoming the more affordable option for Australians living in capital cities.
While it can often be more cost effective for you to choose to rent in a location where you like to live but are unable to afford to purchase, rather than rent anywhere you can get, you should always still manage your budget carefully and invest as much surplus cash as you can.
Then you can decide whether to purchase an investment property in a cheaper area where you can afford or invest that spare cash into a number of ultra-low-cost index funds so that you can slowly accumulate wealth in preparation for when you are in a position to move from tenant to homeowner.
If you’ve never taken the step towards home ownership before it can feel daunting, but did you know there are ways to make home ownership more achievable?
As well as government initiatives such as the First Home Loan Deposit Scheme, state-specific grants and concessions that help the path to homeownership, cash back mortgages are another tool that can help make home ownership more affordable for you.
Cash back mortgages can help you to save tens of thousands of dollars and shave years off the life of your home loan over the loan term, all at no extra cost to you. Here’s how they work.
All banks and home loan lenders reward mortgage brokers with both an upfront commission and ongoing monthly trail commissions when they receive your home loan business via your mortgage broker.
While many cash back offers are a one-off payment, at Mates Rates Mortgage Brokers we credit ALL of our broker trailing commissions to you as a cash back rebate on your home loan, every single month for the life of your home loan.
And it doesn’t cost you anything!
✔️There’s no fee for our mortgage broking services
✔️You’ll get the same interest rate as you’d receive directly from the lender.
✔️It has all the same package features
The only difference is, we pay cash back to you, every single month!
What you do with your cash back savings is up to you, however if you leave your cash back in your home loan account, you’ll also enjoy compound interest savings, potentially saving you tens of thousands of dollars over the life of your loan and in some cases, reducing your loan term by 12 months or more.
Ultimately, whether to rent or buy will depend on your individual circumstances, financial goals, and lifestyle preferences.
However, iIf you’re ready to save money by saying goodbye to rising rents and the rental squeeze and say hello to a long-term investment in financial security and stability, get in touch with Mates Rates Mortgage Brokers.
We are proudly the original and the best cash back mortgage broker. We invented cash-back home loans in 2005 and so far, we’ve paid more than $13 million in cash back to people just like you!
Find out just how much you can save today with our FREE Cash-back Calculator or chat to our team today.
It’s cheaper to rent than buy a house in 90% of Australian suburbs – 30 Mar 2023
Renters would now be financially better off buying one-third of places they rent – Tue 28 Nov 2023
Domain March 2024 Rental Report – March 2024
https://www.domain.com.au/research/rental-report/march-2024/
Australia’s rental crisis: how did it come to this? – 04 Mar 2024
What price for a beach lifestyle? Gold Coast, Sunshine Coast smash records – April 15, 2024
The Perth and Gold Coast locations where rents are higher than blue chip Melbourne – April 17, 2024
I bet you spent at least a few minutes comparing brands and deliberating on which products offered the best value for money
If we expect that level of choice in our supermarkets, why wouldn’t we expect the same from our home loans?
A broker’s job is to do the comparing for you. Not only are they experts but they have access to a huge database of lenders who are all wanting your business. A broker is in the position to negotiate with those lenders and find you the right value-for-money loan to fit your lifestyle.
𝗔 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗯𝗿𝗼𝗸𝗲𝗿:·
Has access to more lenders, meaning you’re more likely to hear a ‘yes!’
· Is specifically trained in mortgages and knows how to structure your loan to suit your goals
· Acts as your own personal banker, guiding you through every step of the home loan process
· Will be your broker for life! You’ll receive ongoing help and advice whenever you need it during the life of your loan.
𝗠𝗮𝘁𝗲𝘀 𝗥𝗮𝘁𝗲𝘀 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗕𝗿𝗼𝗸𝗲𝗿𝘀 are pro shoppers, they will be able to provide you with the same loan but thousands of dollars 𝗖𝗛𝗘𝗔𝗣𝗘𝗥 than from the direct lender.
Helping people just like you to find the right home loan is our passion and our goal. If you’d like to talk to us about how we can guide you through this journey, feel free to contact us on 1300 558 161 or 𝗰𝗹𝗶𝗰𝗸 and comment below so we can schedule a 𝗰𝗮𝗹𝗹 𝗯𝗮𝗰𝗸.
Mates Rates Mortgage Brokers have an awesome value proposition for home loan borrowers: cash back options of an up-to additional 0.35%pa from year 6 for the life of the loan.
What does this mean? Mates Rates = your exact same loan cheaper & monthly cash back from Mates Rates.
We’ve broken it down according to which bank you use.
$4K+
1. $2K cash back for your first property &
2. $2K per extra property Refinance +
3. $2K Bonus if a property is less than 80% LVR
Refinance either an Owner Occupier or Investment loan.
Rates apply on loans submitted before 31 January 2021 & settled by 31 March 2021
NAB customers: $2K refinance cash bonus available to eligible customers for refinances to NAB of $250K or more, drawn down by 31 Jan 2021 (inclusive). Requiring a NAB personal transaction account to be eligible.
Loan applications minimum $250K
Plus Mates Rates exclusive monthly 0.15%pa cash back for the life of the loan.
$3K Refinance cash back only available through a designated Citi Select Broker!
Loan applications must be submitted submitted before 31 December 2020 & settled by 20 Feb 2021
Loan applications minimum $350K
Plus Mates Rates exclusive monthly 0.15%pa cash back for the life of the loan.
$2K
Refinance either an Owner Occupier or Investment loan.
For applications over $250K with an LVR <80%.
Plus Mates Rates exclusive monthly 0.17%pa onwards cash back for the life of the loan.
Email us at broker@ui.net.au.
Other Ts, Cs & lender conditions apply.
In the spirit of mates helping mates, our CEO Trent Lee has created a simple referral program known as the Ambassador Program.
Massive interest savings for your network, and significant extra income for you!
Mates Rates has recently partnered with a leading bill comparison platform to help you save money on your electricity, gas and internet bills.
It’s a no-obligation service, so get to know your options – you’ve got everything to gain and nothing to lose.
‘The federal government has revealed it will move to overhaul credit practices by scrapping responsible lending obligations under the NCCP.
Commonwealth Treasurer Josh Frydenberg has announced the government will move to simplify the credit process, by scrapping responsible lending obligations from the National Consumer Credit Protection Act 2009 (NCCP), with the exception of small amount credit contracts (SACCs) and consumer leases.
The proposed reforms also involve a shift from a ‘lender beware’ model to a ‘borrower responsibility’ model, allowing lenders to rely on the information provided by borrowers.
These changes, in effect, remove the Australian Securities and Investments Commission’s (ASIC) responsible lending remit, with the regulator no longer authorised to exercise its enforcement powers.
However, the government has stressed that lenders would still be subject to regulation from the Australian Prudential Regulation Authority (APRA), which will continue to issue guidance regarding sound credit assessment and approval criteria.’
Charbel Kadib, The Advertisor, 25 Sep 2020
Read full story here
