Bank of Mum and Dad stumps up $40,000

They say there’s nothing quite like a parent’s love. Well, perhaps except for a parent’s love plus an extra $40,000 to help buy your first home. Today we’ll look at the pros and cons of family support – plus other ways to buy a first home that give mum and dad a break.

Saving a first home deposit can be an endurance test.

Nationally, it takes an average of 5.6 years to save a 20% deposit. 

The catch is that deposits tend to grow slowly, while property prices can rise quickly. In the past 12 months alone, home values have climbed 4.8%.  

For first home buyers, the goal posts can seem to be constantly shifting outwards. 

Enter the Bank of Mum and Dad.

Research shows close to one in three (29%) home owners with a mortgage received financial help from their parents – about $40,000 on average.

But without careful planning, the generosity of parents won’t always get first home buyers over the line for a home loan.

Here’s what else you need to know.

Even a modest helping hand makes a difference

Of course, not every family has a spare $40,000 to hand out. 

And that’s okay. 

Even small sums – for parents who can afford it – can give first home buyers a valuable edge. 

That said, it’s worth talking to us at an early stage about the type of support families can provide first home buyers. 

Because not every well-meaning offer of help will fast-track a first home. 

Hidden traps of the Bank of Mum and Dad  

Parents can help first home buyers in a variety of ways – something as simple as letting adult kids live at home for longer can make a significant difference.

When cash payments are part of the picture, three points are worth noting:

  1. A ‘gift’ may need to be declared in writing: a lender may ask for written evidence that a cash gift is exactly that – a no-strings-attached payment that mum and dad don’t expect to be repaid.
  2. A loan from parents could reduce borrowing power: some parents may prefer to loan their adult child money to help with a first home purchase. If that sounds like you or your parents, it’s important to speak with us first. Some lenders may look on a loan from parents as an informal personal loan, and the required repayments could lower a first home buyer’s borrowing power.     
  3. Evidence of regular saving is still essential: support from the Bank of Mum and Dad doesn’t eliminate the need to save for a deposit. Lenders typically want to see evidence of regular saving, often spanning three to six months. This savings track record shows a first home buyer has the discipline to manage home loan repayments. 

Helping hands that don’t involve mum and dad

Parents always want the best for their kids. 

However, no one benefits if parents jeopardise their own financial wellbeing to give their adult children a leg-up into the property market.

If parents cannot, or choose not to, offer children financial support buying a first home, there are other options to consider:

– The 5% deposit Home Guarantee Scheme: this scheme lets first home buyers get into the market with just a 5% deposit and zero lenders mortgage insurance. Recent changes to the scheme mean it now comes with unlimited places and increased property price caps.

– The First Home Super Saver Scheme: this allows first home buyers use their super to grow a first home deposit. It’s estimated the scheme can see first home buyers save a deposit around 30% faster than a standard savings account. 

– Co-buy with siblings or friends: sure, it’s not for everyone. However, by teaming up with a sibling or mate you can boost your buying power and share costs. We can explain the home loan options if co-buying is something you’re thinking of.   

Talk to us to get the ball rolling

Buying a first home may not be easy. And not everyone has parents who can help give them a leg-up into the property market. But there are many different strategies that can help first home buyers. 

Contact us to understand all the options open to you – you could be ready for your first home loan sooner than you think.

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 your 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.

What are the chances of another rate cut this year?

The Reserve Bank has the cash rate in a holding pattern, and several of the big banks have scaled back their predictions of another cash rate cut in 2025. Here’s what it could mean for your home loan.

It looks like the rate cut party may have come to an end – for 2025 at least.

After leaving rates on hold in September, the Reserve Bank of Australia (RBA) is taking a wait-and-see approach, taking the time to gauge how the earlier rate cuts in February, May and August are flowing through the economy.

The RBA’s strategy, coupled with a return to higher inflation in October, has seen plenty of economists talk down prospects of further rate cuts this year.

Let’s unpack what’s happening and how your home loan could be impacted.

The big banks push back predictions of rate cuts

There’s a growing view that we’ve seen the last of rate cuts for 2025.

NAB has backtracked on earlier predictions of possible rate cuts in November and February, and now expects the cash rate to stay on hold until May 2026.

The Commonwealth Bank has also shelved expectations of a November rate cut. It says we’re unlikely to see a drop in the cash rate before February next year.

ANZ no longer expects further rate cuts in 2025, instead pointing to February as the “next plausible option”.

Westpac alone is holding the flag for a possible 0.25% rate cut in December (just in time for Christmas – wouldn’t that be good!).

Why wait ‘til 2026?

These forecasts may be a bit of a downer for homeowners hoping to land a lower rate for the festive season.

But here’s the thing.

We’ve seen plenty of action in the mortgage market lately, and it may not be necessary to wait until the New Year to save with a lower home loan rate.

You may be able to make a rate cut of your own a lot sooner.

Lenders cut rates in a competitive market

According to Mozo, September saw several lenders cut their variable rates despite no change to the cash rate that month.

Mozo says the average borrower with a $660,000 loan could save around $100 per month, or $1,195 annually, by switching from a home loan with a rate of 6.10% to one costing 5.85%.

It’s a strong cue to check the rate you’re currently paying.

Especially as Canstar says a competitive rate for owner occupiers right now is 5.25%.

Could you give yourself a rate cut?

If you’ve had your hopes pinned on more rate cuts this year, it could be time for a rethink.

Instead of holding out for the RBA to cut rates again, another possible strategy is to take control of your own home loan rate.

Contact us to find out if you could lower your home loan rate by refinancing.

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 your 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.

Separating? Understand your home loan options

Nicole Kidman and Keith Urban are making headlines, having reportedly called time on their 19-year marriage. If you’re also facing a relationship break-up, it’s important to know where you stand on practical issues, such as how to hold onto the family home, if that’s your goal.

While Keith and Nicole are likely to have a multi-million dollar property portfolio to divvy up, most Australians have just one family home.

That doesn’t necessarily make matters less complicated, especially as our home tends to be the jewel in the crown of household assets.

Some couples choose to sell their home, pay off the mortgage and go their separate ways.

However, if you want to hold onto the family home, the situation may be more complex.

Determining your home’s value

Unless you and your ex plan to sell your home to a third party as part of your separation (which will very quickly tell you exactly what the place is worth), the first step is to get a clear idea of the property’s value.

Knowing the current market value of your home can let you know how much you owe your ex if you plan to buy them out. Or alternatively, it can clarify how much you are owed if your former spouse wants to buy out your stake in the family home.

A local real estate agent can provide a market appraisal. But the figure you’re quoted has no legal standing, and the agent may bump up the value if they believe a listing could be on the cards.

There are websites that offer free valuations. However, these may not be entirely accurate as they are based on past property sales, which may not reflect your home’s value.

The most accurate way to know what your home is worth is by arranging a formal valuation by a licensed valuer.

This will likely come at a cost but the upside is an independent and accurate valuation of your home.

Funding your home if it’s still under mortgage

If you’re keen to hold onto your home, you’ll need to work out how to fund it if the property is still under mortgage.

You can’t normally just take over the repayments on a mortgage if the loan is held in your former spouse or partner’s name. And frankly, this would involve a leap of faith by your ex as any missed repayments could impact their credit score.

So it may be necessary to apply for a loan of your own.

As your broker, we will walk you through the process. A key factor that lenders will consider is: will you be able to manage regular loan repayments?

If you are earning a wage or salary, or relying on Centrelink benefits, spousal maintenance or even child support payments to help meet the mortgage, you’ll likely be asked to provide evidence of this income.

Alternatively, you may be able to refinance your current home loan so that it is held in your name only.

There are a variety of options available – speaking to us at an early stage can help you select the option for your situation.

Separation is a time for support and guidance

Amid the raw emotions of a break-up, it’s important to have support and guidance from trusted professionals.

In some areas, a lawyer may be your first port of call. In others, such as finance, we’re here to help.

So if you’re facing the end of a relationship, get in touch today for a clearer idea of your home loan options. It could help you start the next phase of your life.

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 your 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.

99% of brokers have helped their clients secure a lower rate

Switching to a new home loan might sound like a hassle. But new research shows brokers don’t just make refinancing easier, they can also help home owners secure a lower interest rate – and much more.

A string of rate cuts this year has helped drive a sizeable uptick in the number of Australians refinancing their home or investment loan.

The June quarter saw a 24% jump in the number of home owners refinancing to a new lender compared to the same quarter last year, according to the ABS. And the number of investment loans refinanced rose by 15%.

Switching to a new loan could see you enjoy a raft of benefits – from a lower loan rate through to improved loan features.

And the benefits of refinancing can really ramp up when home owners partner with a broker, new research from the Mortgage and Finance Association of Australia (MFAA) shows.

99% of brokers have secured a discount for borrowers

Who doesn’t love paying less for things?

When it comes to your home loan rate, even a small discount can add up to serious savings on your home loan repayments and long-term interest costs.

The good news is that a recent MFAA survey found a whopping 99% of brokers have recently helped their clients secure a discount.

That’s no surprise to us. As brokers, we work hard to help you land a competitive rate.

And, as brokers work with an average of 23 different lenders, you can be confident we have conducted a thorough search to identify the loans that tick the boxes for your home loan needs.

92% of brokers have helped clients refinance for the first time

Like anything in life, if you’re thinking of refinancing for the first time, the process can seem daunting.

We aim to make it as streamlined as possible.

According to the MFAA, 92% of brokers have helped first-time refinancers. If that sounds like you, rest assured, we take the time to explain how refinancing works, the potential savings in interest you could make, and the timeframe for your new loan to be in place.

Better still, we can liaise with your old – and new – lender to help ease the burden of the whole refinancing process.

97% of brokers have clients who return year after year

Nothing says “customer satisfaction” like a repeat client.

97% of brokers have numerous home owners who keep coming back to them each time they need home loan help, the MFAA survey found.

It’s a testament to the difference brokers can make to your home loan journey – from your first home loan, to your next, right through to an investment property loan and/or refinancing.

So if you’d like to start your journey with us – or take the next step – contact us today and we’ll be happy to help you out.

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 your 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.

Countdown to be in your new home by Christmas

The clock is ticking towards the festive season, and home buyers still have a small window of opportunity to be settled in their new place by Christmas Day. The good news is that a broker can help you get there.

A quick visit to the supermarket shows that shelves are already stocked with festive fare (believe it or not!).

It’s a sure sign Christmas is getting closer. Just 14 weeks away, in fact.

As it can usually take anywhere from four to 12 weeks to settle on a new home, time is of the essence for home buyers hoping to celebrate the holiday season in their new home.

Of course, a home purchase should never be rushed.

But having all your ducks in a row can be the difference between waking up on Christmas morning in your new place, or facing settlement delays because key service providers have shut up shop for the summer holidays.

Here are five ways a broker can help you be in your new home by Christmas.

1. We’ll explain your borrowing power to get the ball rolling

Before heading out to open home inspections, set a date to talk to us first.

We can give you a clear idea of your borrowing power.

This is an important first step.

It tells you how much you can borrow, so you can focus on properties within your price range.

2. We’ll help you find a loan and lender for your needs

A home loan is a major financial commitment, and you need to be confident your loan is suitable for you, your budget and your lifestyle.

That’s why we take the time to understand you and your goals.

From there, you can leave the home loan search to us, confident in the knowledge that we’ll only look at loans that tick the boxes for your needs.

Of course you always have the final say in your choice of home loan, but by narrowing down the loan selection for you, we can give you more time to find your dream home.

3. We can arrange home loan pre-approval to help avoid settlement delays

There are good reasons to have your home loan pre-approved – especially at this time of year.

Pre-approval helps set a buying budget. It gives you serious clout when it comes to price negotiations.

And pre-approval is also helpful if you’re buying at auction.

It lets you bid with confidence up to a known limit, and that’s especially valuable in the current market, with Cotality reporting the highest levels of homes going to auction since June 2025.

Importantly, pre-approval can help speed up the pathway to unconditional loan approval. That’s because your lender has already done most of the groundwork involved in your loan application.

Long story short, having your loan pre-approved can be a strategy to help avoid unwanted delays.

4. We can help you put together a team of experts

Along with a broker and a lender, you’re likely going to need the support of other experts, in particular, a solicitor or conveyancer, who will review the contract of sale and complete the settlement process.

It can be a good idea to have your legal team lined up before you sign a contract. That way, the settlement process can kick off from the date of exchange of contracts without delay.

We can tap into our professional network to put you in touch with reputable service providers.

This can save you the hassle of phoning around trying to line up different professionals when the countdown has begun for the festive season.

5. We’ll manage your loan application right up to the finish line

Preparing for Christmas can be stressful enough. Let alone moving house during the festive season.

So it’s reassuring to know we can remove an extra layer of stress by liaising with your home loan lender all the way to loan settlement.

As we work closely with a variety of lenders, we’re well-placed to manage the mortgage process.

We know the decision-makers to speak with, and we will monitor your loan application from start to finish.

Is a new home on your Christmas wishlist?

Completing a home purchase in time for Christmas is a great feeling.

Knowing you have your new home sorted and your loan in place can let you relax and enjoy the festive season, pop the cork on a few bubbles, and look forward to 2026 in your new home.

Contact us today to see how we could help you be in your new place by Christmas.

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 your 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.