Buying land to build on later: what you need to know

Good news for the three million Australians who have a student debt. New rules are on the cards that could soon increase their borrowing power when applying for a home loan.

Heading off to uni can be a great investment in your skills and qualifications, potentially leading to a higher income over the course of your career.

The downside for many, though, is a lingering student debt.

More than just a balance to be repaid, a HECS/HELP debt can impact your ability to buy a home.

So, it’s great to hear that the federal government is pushing for lending rules to be loosened so that graduates have a better chance of getting started as home owners.

How a HECS/HELP debt can impact home-buying plans

Around 3 million Australians  have an outstanding HECS/HELP balance.

HECS/HELP debts work differently from other types of debt – the balance doesn’t attract interest but it is indexed (typically upwards) each year in line with (the lower of) inflation or wages growth.

And unlike traditional debts, HECS/HELP repayments only kick in when graduates earn over $54,435 a year (2024-25 threshold), with a starting repayment rate of just 1% annually.

Sounds good, right? Well, here’s the thing.

University fees went up in recent years. And so did the indexation rate. Both of which have pushed up the average HECS/HELP debt.

This is hurting the borrowing power of many young university graduates who are trying to enter a property market that has also boomed in recent years.

That’s because under responsible lending rules, banks currently take a home buyer’s HECS/HELP debt into account – in much the same way as an outstanding credit card balance or car loan – when deciding how much they’ll lend.

Fortunately, that looks set to change.

New calls to loosen lending rules for HECS holders

Federal Treasurer Jim Chalmers recently called on financial regulator Australian Prudential Regulation Authority (APRA) to update its guidance to banks to make it easier for people with a HECS/HELP debt  to take out a home loan by removing HECS/HELP debts from debt-to-income reporting.

Chalmers believes this would be a “commonsense” change, saying, “people with a HECS/HELP debt should be treated fairly when they want to buy a house and we’re working with the regulators to make sure they are.”

Meanwhile, the Australian Banking Association has said the potential to unlock more credit for prospective home buyers  could assist them in realising the dream of home ownership.

Long story short, the government and bank regulators, including both APRA  and ASIC ,  appear to be in agreement on making these changes promptly.

Of course, we’ll keep you in the loop with any updates, as changes could mean a generous uptick in your home loan borrowing power.

What it could mean for you

Having a HECS/HELP debt, or any other student debt, shouldn’t discourage you from exploring your home loan options if you’re keen to buy.

Get in touch to find out your borrowing power and discover if you’re home loan-ready today.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Finally, a long-awaited reprieve for borrowers. The Reserve Bank of Australia has today cut the cash rate by 25 basis points to 4.10%. How much could this rate cut decrease your monthly mortgage repayments? And can we expect more cuts this year?

This is the first time the Reserve Bank of Australia (RBA) has cut the cash rate since it slashed rates to 0.10% in November 2020 in response to the COVID-19 outbreak.

Since then, we’ve had 13 cash rate hikes as the RBA attempted to rein in inflation.

RBA Governor Michele Bullock said in a statement that inflationary pressures are now easing a little more quickly than expected after recent data showed December quarter underlying inflation was 3.2 per cent.

“There has also been continued subdued growth in private demand and wage pressures have eased,” Governor Bullock said.

“These factors give the Board more confidence that inflation is moving sustainably towards the midpoint of the 2–3 per cent target range.”

How much might your mortgage repayments now decrease?

Unless you’re on a fixed-rate mortgage, hopefully your bank will soon follow the RBA’s lead and decrease the interest rate on your variable home loan.

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, this month’s 25 basis point rate cut means your monthly repayments could decrease by about $77 a month. That would put $924 a year back into your household budget.

If you have a $750,000 loan, your monthly repayments will likely decrease by about $115 a month – or $1380 per year.

Meanwhile, a $1 million loan could decrease by about $154 a month – or $1848 a year.

This all assumes that your lender automatically passes on the full 25-basis point cut to your home loan.

After so many years of rate hikes and higher interest rates one would hope they would, and there will be public and government pressure for lenders to do so (especially with a federal election around the corner).

Another thing to consider is that not all lenders automatically reduce variable home loan monthly repayment amounts in line with rate cuts.

Some lenders simply maintain your repayment amount at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month. But you can ask them to reduce your repayments in line with their cuts.

To find out what your lender is doing with your loan, get in touch with us in a few days once the dust has settled.

How low are interest rates expected to go in 2025?

There are still seven more RBA meetings this year, during which the board may cut the cash rate further. But the RBA remained tight-lipped on whether more cuts will follow in their most recent statement.

Here are what economists at the big 4 banks are predicting.

– NAB:  cash rate falling to 3.10% by February 2026 (four more cuts)
– CBA:  cash rate falling to 3.35% by December 2025 (three more cuts)
– Westpac:  cash rate falling to 3.35% by December 2025 (three more cuts)
– ANZ:  cash rate falling to 3.85% by August 2025 (one more cut)

Are you worried about your mortgage? Get in touch

Despite this latest cut, there are still plenty of Australian households feeling the pinch of cost of living pressures and high interest rates.

If you fall into that category and haven’t had a home loan health check in a while, get in touch to see if you could be doing better on your home loan.

Some options we can help you explore include renegotiating with your current lender, refinancing to another lender, or debt consolidation.

Every household is different – and we’d be more than happy to help you come up with a tailored plan for yours.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

If you’re in the market for a first home, there’s one scheme you should know about. It’s called the Home Guarantee Scheme, and it could slash the time it takes to buy a place of your own by several years. Here’s how it works.

Saving that all-important 20% deposit for a first home isn’t easy – especially given the current cost of living crunch.

In fact, the average time taken to pull together a first home deposit has now hit 10.6 years, according to CoreLogic.

But with the Home Guarantee Scheme (HGS), you may be able to buy with just a 5% deposit – without paying lenders mortgage insurance.

No wonder 193,000 first home buyers  have used the HGS to get into the market since it launched in 2020.

How the Home Guarantee Scheme works

Instead of giving first home buyers a cash payment, which is (essentially) the case with the First Home Owner Grant , the HGS sees the federal government guarantee your home loan.

This can benefit first-home buyers in two ways.

First, under the HGS, lenders can let you take out a home loan with just a 5% deposit. Of course, some banks already offer this.

But if you have a deposit below 20%, you’ll usually be asked to pay lenders mortgage insurance (LMI), and that can cost many thousands of dollars.

That’s where the second upside of the HGS comes in.

Buyers using the scheme aren’t slugged with LMI, as the government acts as guarantor for your mortgage instead.

Three HGS options

The HGS is pitched at three types of buyers:

1. First Home Guarantee

The First Home Guarantee  aims to help eligible first home buyers get a place of their own sooner.

In the current financial year, a total of 35,000 places are available.

2. Regional First Home Buyer Guarantee

If you’re planning to buy a first home in a regional area, the Regional First Home Buyer Guarantee  could match your needs.

Only 10,000 places are up for grabs in the scheme this financial year, so reach out sooner rather than later if you’d like to explore this option.

3. The Family Home Guarantee

If you’re a single parent, the Family Home Guarantee  is even more generous.

It allows eligible applicants (you don’t have to be a first home buyer) to purchase a home with as little as a 2% deposit without paying LMI.

The catch is that only 5,000 places have been made available for the 2024-25 financial year.

Why more first-home buyers are using the 5% deposit scheme

Just five years ago, around one in 10 first home buyers  turned to the HGS for help buying a first home.

Today that figure is closer to one in three.

And it’s not just about rising property prices, higher interest rates or cost of living pressures.

The First Home Guarantee and the Regional First Home Buyer Guarantee have been expanded to include friends, siblings and other family members buying together, along with non-first-home buyers who haven’t owned a property in Australia in the past 10 years.

The fine print

The 5% first home buyer deposit scheme does have a few strings attached.

You will need to meet eligibility conditions.

These chiefly relate to your income  and the maximum price you plan to pay for your first home – property price caps also apply.

The other thing to be aware of is that not all lenders have signed up to the HGS, so your options can be a little more limited.

Talk to us to get the ball rolling

If you’re interested in fast-tracking your path to home ownership, the 5% deposit HGS could be the solution you’ve been looking for.

Talk to us to find out if you’re eligible for the Home Guarantee Scheme – and discover the lenders that can help you get across the line.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Great news for home owners – plenty of economists are tipping an RBA rate cut for February. Assuming it happens, once the celebrations have died down, what next? We explain what to expect when rates head south.

It’s been a long time between drinks for home owners celebrating a rate cut.

The last time the Reserve Bank of Australia (RBA) gave rates a chop was back in 2020.

But the tide may be about to turn.

A growing chorus of economists – plus banks including NAB  and Westpac  – are expecting a rate cut of 0.25% when the RBA board next meets on February 17-18.

Of course, nothing is set in stone.

If we do see rates head lower though, it’s worth knowing how your home loan and repayments could be impacted.

What will happen to my loan rate?

If you have a fixed-rate home loan, it’s business as usual no matter what happens to the cash rate.

Your fixed rate won’t change and neither will your required monthly repayments.

That said, if you’re coming to the end of a fixed term, it’s worth having a chat with us about your next moves once the fixed rate expires.

The real action occurs if you have a variable rate home loan.

If the RBA cuts the cash rate, your variable home loan rate should fall too.

By how much? Well, banks don’t have to follow the cash rate. And history has shown  that lenders haven’t always passed on rate cuts in full.

But banks may want to avoid potential backlash, especially given the current cost-of-living climate.

That would hopefully see most lenders pass on 100% of any rate cut. So, if the RBA cuts rates by 0.25%, your home loan rate should hopefully drop by 0.25% also.

How do you find out the new rate? Your lender will get in touch to let you know.

Will my repayments change if rates fall?

Not necessarily.

Some lenders automatically reduce home loan repayments in line with rate cuts.

Other banks, however, simply maintain your repayments at the old level. It’s just that more of your money goes towards paying off the principal (rather than the interest) each month.

This can be frustrating if you’re hankering for some extra money for your family budget each month.

However, some banks take the view that by maintaining your old repayments, they’re helping you pay more off the loan and get ahead with your mortgage.

To find out if your bank is automatically dropping your monthly repayments, or if you need to request for it to happen instead, get in touch with us and we can let you know.

How much might your mortgage repayments decrease?

For an owner-occupier with a 25-year loan of $500,000 paying principal and interest, a 25 basis point rate cut means your monthly repayments could decrease by about $77 a month.

That would put $924 a year back into your family budget.

If you have a $750,000 loan, your monthly repayments would likely decrease by about $115 a month – or $1380 per year.

Meanwhile, a $1 million loan would decrease by about $154 a month – or $1848 a year.

Worried about your mortgage? Get in touch

Despite a potential rate cut on the horizon, there are still plenty of households around the country feeling the pinch of cost of living pressures and high interest rates.

If you fall into that category and haven’t had a home loan health check in a while, get in touch to see if you could be doing better on your home loan.

Some options we can help you explore include renegotiating with your current lender, refinancing to another lender, or debt consolidation.

Every household is different – we’d be more than happy to help you come up with a tailored plan for yours.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Ever spotted a bargain property and then thought to yourself: ‘What’s the catch?’ Well, more often than not there’s a good reason behind a lower-than-expected price tag. And while an undesirable location might not be a deal breaker for you, it could make it harder to sell later.

Beautiful home, dead quiet neighbours. Sounds brilliant, right?

Well, perhaps not if the property is next door to a graveyard.

There’s a lot to be said for the old adage ‘you can change a home but you can’t change the location’.

And new research from Compare the Market  reveals the top five location turn-offs for home buyers.

It’s worth knowing what they are because, while these locations may help lower the price of the home, they can make things a little difficult for you later down the track when you try to sell.

1. Close to a tip

Landfills are a fact of life. But that doesn’t mean you have to live near one.

Close to one in three Aussies rate locations next to a dump as their top bugbear when considering where to buy (or rent – investors take note).

No surprises there. The sight and smell of rubbish is hardly a neighbourhood drawcard.

2. Next to the airport

“Close to transport” is often a popular sales pitch.

But under a flight path? Well, not everyone has Darryl Kerrigan’s sunny optimism when it comes to “location, location, location”.

One in five buyers say they couldn’t put up with airport noise.

3. Overlooking a graveyard

It may be the dead centre of town, and the neighbours aren’t likely to make much noise.

But 16.5% of buyers are spooked by the thought of a home next to a graveyard.

4. Alongside a highway

The relentless hum of traffic, exhaust fumes and the occasional screech of sirens.

It’s all too much for more than one in ten buyers who would walk away from properties located near a highway.

5. Next to a railway

It’s not a huge deal breaker for the majority of buyers.

But almost 7% are turned off by homes situated next to train lines.

Decide your location blacklist

What’s interesting from the above results is that there is no single location factor that the vast majority of buyers would shun.

Flight paths may matter to some, but aircraft noise is seen as a norm of urban living for others.

What matters is that you take a step back and consider ‘what are any negatives for the area?’ when you find a place you’re thinking of buying.

If there are potential downsides, it may not be the end of the world. You can always raise the issues as part of your price negotiations.

Or, if the location is seriously problematic (think wedged between a graveyard and a highway, and close enough to the airport to hear final boarding calls), it could be time to look elsewhere.

But you may compromise on other factors, such as land size or a spare bedroom, so you don’t have to settle for an undesirable location.

Talk to us

Deciding your ideal location may involve some give and take. A good starting point is finding out what you can afford to buy.

Get in touch today and we’ll help you work out your borrowing capacity.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Bathroom blitz? Kitchen kit out? Or perhaps some landscaping love might be on your house upgrade wishlist for 2025? If so, it’s worth knowing what reno finance options are available. Today we’ll explain some ways to fund your home improvement project.

Spending on home renovations has boomed over the past five years , and it seems we’re not done yet.

The Housing Industry Association  says high property values are giving Australians more home equity – and confidence – to go ahead with home improvements at near-record levels.

It’s exciting stuff, especially as home improvements can boost your lifestyle and your home’s value.

Here are some of the renovation loan options that could help transform your place into your dream home.

Use your offset account or redraw

You may have cash stashed in a home loan offset account. Or, perhaps you’ve been paying more than the minimum loan repayments, providing a source of funds via redraw.

Both could provide money to help fund your renovations.

But be sure to talk to us first about the possible impact on your home loan.

Savings held in an offset account, or those extra loan repayments, can help you save on loan interest.

So you’ll want to crunch the numbers before you dip into an offset account or redraw facility.

Top up your existing home loan

If you have sufficient home equity, you may be able to borrow a bit extra with your existing home loan through a loan top-up.

While this option may be more straightforward than switching to a new lender, it’s worth noting that some lenders can charge fees to top up a home loan.

Refinance to a new loan

Another possible source of reno funds could be refinancing to a new loan.

Your old loan may no longer have a competitive interest rate or the features you need.

The beauty of refinancing is that it can put any additional home equity you’ve recently acquired to work, which could provide the funds needed to pay for renovations.

The added sweetener could be interest rate savings and/or more flexible loan features.

Consider a construction loan

If you’re planning a major project, such as a new extension or a knock-down-and-rebuild, a construction loan could be worth a look.

A construction loan is purpose-built for renovation and building projects.

The funds are drip-fed to you as each stage of your project is completed. You only pay interest on the funds drawn down, and during the building phase you will typically only need to make interest-only repayments. This can help you save money on interest costs.

As an added plus, some lenders may provide pre-approval for construction loans even before you’ve chosen your builder.

Getting pre-approval can be a good way to know how much you can spend on your renovations, helping you set a project budget.

Understand the options available for your project

It’s difficult to start planning a renovation until you know just how much you can afford to spend.

So if you’d like to get a clearer idea of what’s possible for your 2025 renovation plans, contact us today and we’ll work hard to help you get rolling on your project.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Amid growing expectations of rate cuts in 2025, sticking with a variable home loan rate can seem like a no-brainer. But not so fast. Locking in your home loan rate can also have upsides, including the potential for a lower rate right now.

Home loans come in all shapes and sizes. A common thread is that you’ll likely be given the choice of a variable or fixed interest rate.

It’s an important decision, as fixed rates can be very different from variable rates – and right now, some lender’s fixed rates are lower than their variable rates.

Let’s take a closer look at both options.

Variable-rate home loans

With a variable-rate loan, the rate you pay can move up or down in line with market interest rates.

If the Reserve Bank of Australia (RBA) raises the official cash rate, for example, your loan rate will almost certainly rise, which in turn increases your repayments.

Conversely, if the cash rate falls, your variable rate should also drop, which would result in lower monthly repayments.

The upshot is that you need to be prepared for your home loan interest rate (and repayments) to rise or fall during the course of your mortgage.

In exchange for this uncertainty, variable rate loans tend to offer more flexibility and features.

These can include a redraw facility, linked offset accounts, and being able to make fee-free extra repayments, all of which can make your home loan easier to live with and help you pay off the balance sooner.

Fixed-rate home loans

When you fix your home loan rate, the interest rate stays the same regardless of changes to market rates.

This means you know exactly what your repayments will be throughout the term of the fixed rate period (usually one to five years), which can help make household budgeting easier.

If market rates rise, you’re in front because your fixed rate won’t be affected.

The downside is that if interest rates fall, you won’t get the benefit of lower repayments.

The good news is that today’s fixed-rate home loans are generally more flexible than in the past.

Some allow extra repayments (often up to an annual limit) plus redraw. Others even provide offset accounts.

Even so, one issue to be aware of is ‘break’ fees.

These can apply if you bail out of a fixed-rate loan before the fixed term ends – something that may happen if you want to refinance to a lower interest rate loan sooner than you originally planned.

Break fees can be complex. But if interest rates have dropped since you fixed, you could be up for significant costs, potentially running into tens of thousands of dollars, which could wipe out any savings from refinancing.

This highlights the need to talk to us before locking in a fixed rate so you can make an informed choice.

Do fixed-rate loans come with higher interest rates?

This is where things get interesting.

Right now, fixed rates can actually be lower than variable rates, depending on the lender.

This is likely because some banks believe that the RBA may cut the official cash rate (perhaps several times) over the next couple of years, so they’re pricing this into their fixed rate options to make them more enticing.

Macquarie Bank, for instance, has a 2-year fixed rate of 5.69%, well below its 6.14% variable rate.

Whether the RBA cuts the cash rate, how many times it cuts it, and how soon all determine whether or not you come out ahead by fixing now.

A split rate loan – have your cake and eat it too

There is one possible way to enjoy the certainty of a fixed rate and the flexibility of a variable rate: a split rate loan.

This lets you divide your loan between a fixed rate and a variable rate. For example, 40% of your mortgage could be accruing interest at a fixed rate and the remaining 60% could be charged at a variable rate.

You get bragging rights about the lower fixed rate you’re paying, plus the features of a variable rate loan.

It’s a bit like hedging your bets, with some additional benefits.

Want to know more?

Still not sure which option might suit you?

Contact us today to find out more. We don’t have a crystal ball, but we can sit down and work out what’s important to you – and then which of the above options aligns with those needs.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

There’s much more to property in Australia than just houses or units. And if you’re in the market for a home or investment property, it helps to know your townhouses from terrace homes so that you can choose a place that’s suited to your goals and needs.

Australians are blessed with choice when it comes to buying a family home.

Nationally, Australia has 10.9 million private dwellings.

The sheer scale of properties points to a wide variety of housing types to suit different budgets and lifestyles.

So, it can pay to cast your net wide.

With this in mind, let’s take a look at the main types of housing you can choose from.

Houses – freestanding, semi or terrace?

Houses dominate the property scene in Australia, accounting for a whopping 70% of the nation’s private residences.

But not all houses are the same.

‘Detached’ houses are freestanding, or standalone, residences.

That’s quite different from semi-detached houses , which share a common wall with a neighbouring home – something often seen in rows of terrace houses, typically dating from the 19th and 20th century.

The pros of houses:  houses have historically shown a higher rate of capital growth  than other types of residential property.

The cons of houses:  houses often come with a price premium over apartments.

As a guide, the median price  for a house nationally is $879,680, compared to $669,700 for apartments.

Apartments

Apartment living has gained a big following in recent years, with one in six (16%) Australians calling an apartment ‘home’.

And they continue to grow in popularity.

Realestate.com.au says searches for apartments have been trending upwards since mid-2020, accounting for almost 40% of all ‘buy’ searches in late 2024.

The pros of apartments:  part of the appeal of apartments is affordability. However, they can also offer the advantage of low-maintenance living (think no lawns to mow each weekend).

The cons of apartments:  one thing to watch out for is strata levies. These cover the cost of building maintenance and repairs, and newer developments with more facilities can come with higher strata fees.

Townhouse or villa?

Not keen on an apartment, but looking for something more affordable than a house?

The solution could be a townhouse or villa.

Townhouses make up 13% of dwellings across Australia. They typically have two storeys while a villa is usually a single-storey home.

The pros of townhouses:  the small garden or courtyard space associated with townhouses and villas can offer residents more private space.

The cons of townhouses:  both townhouses and villas are part of a strata scheme, which makes it worth keeping an eye on strata fees.

Duplexes

Duplexes can tick a bunch of boxes. They’re a modern version of a semi-detached house, often with two adjoining homes constructed on a larger block, connected by a single wall.

While duplexes are less common than houses or apartments, they have the potential to let you buy a home for almost half the price of a regular house.

The pros of duplexes:  a duplex can combine the privacy of a house with the affordability and low maintenance of a townhouse or villa.

The cons of duplexes:   according to REA Group , owners of both duplex homes must agree to a building insurance policy that covers both sides of a duplex. This is something to look into before buying.

Talk to us to find out what you can afford

The type of property that’s right for you is a very personal decision.

What you are able to buy can be shaped by both personal preference and your borrowing power. And more often than not, trade-offs and compromises occur.

Call us today to know how much you can afford to borrow. It could shape your choice of home.

Disclaimer:  The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How are your New Year’s resolutions coming along? If you’re like most people, they’re likely related to health, fitness or abstinence. But why not consider a financial one too? Here are three resolutions worth considering for 2025.

There’s no denying that 2024 was a tough year for many mortgage holders – in no small part due to the hope of rate cuts dangling just out of reach, coupled with inflation.

But by kicking off the year with one or two of the ideas below, you could be in a better position to tackle 2025 head-on, come what may.

1. Call us for a home loan health check

Do you know the interest rate on your home loan?

Don’t stress if you don’t, about 40% mortgage holders  can’t recall it.

Not knowing the rate is usually a good sign that it’s time to check if your mortgage is still well-suited to your needs.

An analysis by RateCity  shows the average borrower who has not refinanced their home loan in the past 12 months has paid almost $6,000 more interest during that period as a result.

Rest assured we’ll help make the process painless. Simply get the ball rolling by giving us a call today.

2. Cut unnecessary expenses from your budget

When was the last time you had a thorough look at your spending account?

It’s good to get into the habit of conducting regular expense audits.

After all, many of us have been guilty of subscribing to one too many streaming services that we rarely use – let alone takeaway coffees, takeaway meals and other impulse purchases.

Little tweaks here and there can add up.

For example, a daily $5 takeaway coffee habit costs you $1825 per year. Switching to a DIY French press brew can cost just $350-$450 per year.

3. Leverage your equity to achieve other property goals

A home loan doesn’t just have to be a debt.

It can also be a valuable tool that lets you work through a personal bucket list by putting home equity to work.

And you could be starting 2025 with more equity than you realise.

Back in January 2023, the median home value across Australia’s state capitals was $770,374, according to CoreLogic.

Fast forward to now, and the median value has increased  to $897,580.

That means that over the past two years the average city homeowner in Australia has gained almost $130,000 more equity in their property, which they could possibly leverage for other investments.

In fact, that $130,000 rise in equity is the equivalent of a 20% deposit for a $600,000-$650000 investment property.

Alternatively, you could use that equity for home renovations to improve your primary place of residence.

Call us today to get a clearer picture of your home’s potential equity – and how you could use it to tick off your wish list in the year ahead.

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