a personal approach to mortgages
1-DEC-2011
Christmas Greetings
We have received an early present this year with the RBA dropping the cash rate down which is a great start to the festivities since Christmas and New Years are only a few weeks away!
We all love to give and also to celebrate with our loved ones during this joyful season, so before you start to plan for Christmas - presents, parties and holidays, you might need to plan out your finance. Whether it is by freeing up some extra cash, or using some of the equity in your home, we can assist you to make your holidays free from worries.
Just a gentle reminder of the time frames that when you need to redraw or cash out from your loan account, the transaction usually takes up to 3 working days (excluding public holidays). Plan your transactions ahead by contacting us on 07 3211 8388 and we can help to make sure your funds clear in time.
Lastly, please be advised that our office business hours during the Christmas and New Year Holidays this year are as follows:
Christmas & New Year Holidays Business Hours
24th - 27th December - Closed
28th - 30th December - 8:30 to 17:00
31st December - 2nd January - Closed
Pay off Christmas Four Times Faster?!
Imagine being able to pay off holiday festivies four times faster.
We want to enjoy the time we spend with family and friends (at home or somewhere far away!), but when we come home and get back into the rhythm outside of the festive season, we tend to notice our credit card bills and balances have grown. So we pay our minimum balances plus a bit extra every now and again to bring the balance back down to more normal levels (or if we are good, it will have a zero balance).
If we are brave and we look closely, we notice the interest charged could be anywhere between 19% to 36% which can be up to four times our home loan rates!!
Imagine how much interest you would be saving and what you could do with your money if Christmas spending were charged interest at home loan rates?
So how do you make sure you pay it off faster?
1. AAA will create a special purpose loan account or split so you can track what is going on
2. We will help you set up an automatic direct debit to keep everything simple and hassle free
3. You will make the same repayments you would have on your credit cards or personal loans but you will see your balance shrink that much faster!
Let us help you pay off other loans faster! All you need to get started is to call our friendly customer service team and send across:
- AAA application forms
- Latest payslips and payment summaries OR 2 years tax return (for self-employed)
- Latest 3 months credit card or 6 months personal loan statements
Remember that we are a phone call or email away on 07 3211 8388 or customerservice@aaafin.com.au
What to Consider when Fixing Rates
As Lenders roll out competitive fixed rates that look attractive compared to the current variable rate, it is time for some home owners to make the decision about whether to stay with your current variable rate or switch to a fixed rate. Some factors to consider are the features you need in a loan, how long you plan to own the property, and how much you plan to pay down your loan, etc.
Generally, fixed repayments allow you to plan your finances easier and stick to your budget for a pre-determined period, even in times of economic uncertainty. However, you may want to consider a mixture of variable and fixed to take advantage of both types of loan features especially if you intend to make substantial repayments to your loan.
Pros
- Repayments stay the same even if the official interest rate rises
- You have certainty in your future repayments
- You have the confidence to plan and budget your finance accurately
- Current fixed rates will see you save at least 0.50% off your current repayments
Cons
- Repayments do not fall if rates fall
- Extra repayments are limited otherwise substantial penalties may apply
- Break fees occurred if you exit the fixed rate term early
Lastly, the RBA recently dropped the cash rate by 0.25% on 01 November 2011. If you are on a variable rate, you will quickly feel the benefits of a rate reduction but if you are still keen to take advantage of fixed rates, given that they are currently substantially cheaper than the variable rate, the final decision comes down to how much you think the RBA and your lender are going to move in the coming 12 months and making sure your fixed rate gives you an even greater discount to ensure you end up on top.
If you have any enquiries regarding your home loan, contact our customer service at 07 3211 8388 or customerservice@aaafin.com.au to find out available option for your home loan account.
Make Use of the QLD Building Boost!
The Queensland Government's $10,000 Building Boost Grant is available to help you buy or build a new home in Queensland even if the home is not your first.
Queensland Government's definition of a new house is a property that has not been previously occupied or sold as a place of residence. This means Off-the-plan purchases, all newly built or substantially renovated houses, units or townhouses under $600,000 in value will qualify.
In addition, the occupancy requirements are easy, the home must be occupied as a place of residence, but it does not matter who occupies the home (i.e. it can be occupied by a family member or rented to a tenant, so investors can make great use of this boost too!!)
The Queensland Building Boost Grant runs until 31 January 2012, contact us now at 07 3211 8388 for more details on how to take advantage of the new boost.
1-JUN-2011
$10,000 Building Grant for New Purchases
From 1 August, State Government will offer a grant of $10,000 as a building boost for both existing home owners and first home buyers.
The grant is limited to properties under $600,000 and as long as you sign the building contract between August 2011 and January 2012, you could be eligible for the grant. Once the contract is signed, you have six months to commence the work and then another 12 months to complete the work.
If you or your family/friends are looking forward to building that perfect home, this budget change is a great way to give yourselves an extra $10,000 towards your home.
Imagine how many things you could add to your home with $10,000? Find out how much you can borrow – contact our customer service team or credit team and find out now!
Removal of Stamp Duty Discount
The government has removed the stamp duty concession for people buying another home. Existing home owners hoping to upgrade or downsize to another property face stamp duty hikes of up to $7,175 from August 1.
If you are feeling like you need more room for your growing family and you are not sure how the change to stamp duty discount affects you, call us today to discuss how much it would cost to purchase a new home and how much you can borrow before the price hikes take effect!
If you want to upgrade or create more room for your family without moving house, you may be considering renovations as a cheaper and easier option – contact us today to find out about a loan increase.
Current FHOG Duties
The FHOG (First Home Owner Grant) is still applicable with above two budget measures for all first home buyers. Currently, the FHOG scheme provides one-off grant of up to $7,000 to first home owners that satisfy the eligibility criteria.
For more information, you can refer to your state government’s website, or contact us to discuss how the FHOG can benefit you or someone you know who is looking to buy their first home.
Queensland to deregulate real estate commissions
The Queensland Government will move to deregulate real estate commissions, allowing home sellers and agents to negotiate their own rates. Unlike the rest of Australia, currently real estate commission in Queensland is capped at a maximum of 5 percent of the first $18,000 of the sale price and 2.5% of the balance of the sale price.
The problem with the current ‘fixed’ commission system is that it does not take into account the circumstances such as the saleability of a property or the amount of effort required for it ultimately to be sold.
Deregulating commissions for the purchase or sale of residential property will bring Queensland in line with the rest of the states and territories and is expected to lead to increased competition in the industry, which will benefit both consumers and agents and it will essentially allow for the market to determine price rather than the government.
Source: Queensland Business Review, Queensland Government
1-Feb-2011
