Flood victims can defer loan repayments for up to 3 months

Home and business owners impacted by the floods in New South Wales and Queensland can apply to their lender for a three-month loan deferral or reduced payment arrangement. Here’s how to apply if you or someone you know has been impacted.

Another year, another disaster.

In 2019 it was the bushfires. In 2020 it was COVID-19 (which, you know, is still hanging around). In 2021 a mice plague. And now to kick-off 2022 we’ve had half the eastern seaboard inundated with floods.

Fortunately, just as they did for the bushfires and COVID-19, lenders are offering up to three months deferral on loan repayments for those customers affected by the flooding disasters in NSW and Queensland.

“Once the worst of the emergencies are over and the clean-ups begin, we want Australians who have been impacted to know their bank is ready with tailored support to assist as they recover,” says Australian Banking Association CEO Anna Bligh.

“Don’t tough it out on your own. Loan deferral or reduced repayment arrangements for home, personal and some business loans are being offered across individual banks.”

What are some of the options available for flood victims?

Depending on your family’s or business’s circumstances, assistance from your lender may include:

– Deferring scheduled loan repayments, on home, personal and some business loans for up to three months.

– Waiving fees and charges, including for early access to term deposits.

– Debt consolidation to help make repayments more manageable.

– Restructuring existing loans free of the usual establishment fees.

– Offering additional finance to help cover cash flow shortages.

– Deferring upcoming credit card payments.

– Emergency credit limit increases.

Government grants and financial support

There’s also a range of federal and state government financial grants your household or business might be eligible for, including:

– Australian government disaster recovery payment: eligible individuals can claim $1000 per adult and $400 per child. If you’re in NSW click here, QLD click here. A further $2000 per adult and $800 per child is available for residents in Richmond Valley, Lismore and Clarence Valley.

– Australian government disaster recovery allowance: a short-term payment of up to 13 weeks for eligible people for loss of income. NSW click here and QLD click here.

– NSW disaster relief grant for individuals: financial assistance to eligible individuals and families whose homes have been damaged by a natural disaster. Click here or phone 13 77 88.

– NSW storm and flood disaster recovery small business grant: eligible small businesses can apply here for a grant of up to $50,000 to help pay for the costs of clean-up and reinstatement.

– QLD emergency hardship assistance grant: grants of up to $180 are available per person and $900 for a family of five or more. Click here or call 1800 173 349.

– QLD essential household contents grant: up to $1,765 for eligible single adults and $5,300 for families to replace/repair (uninsured) household contents. Click here or call 1800 173 349.

– QLD structural assistance grant: grants of up to $10,995 for eligible single adults and $14,685 for families for one-off (uninsured) structural home repairs. Click here or call 1800 173 349.

– QLD essential services safety and reconnection grant: up to $200 for a safety inspection and, if required, up to $4200 to repair/reconnect essential services. Click here or call 1800 173 349.

– QLD extraordinary disaster assistance recovery grants: up to $50,000 grants for small businesses that experienced damage from the flooding event. Click here or call 1800 623 946.

We’re also here for you

Last but not least, it’s also worth noting that there are both refinancing and/or loan restructuring options you can explore in order to reduce your business or home loan repayments each month (without hitting the pause button).

These include:

– asking for a better rate or moving to a lender that can provide one;
– extending the length of your loan; and
– consolidating your debt.

So if your business or household is one of the many doing it tough right now and you need a little breathing space, please don’t hesitate to pick up the phone and give us a call today – we’re here and ready to assist you any way we can.

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.

Which two capital cities might have just hit their property price peak?

It’s a three-speed property market across the country right now, with two capital cities showing signs prices might’ve peaked, three cities looking like they could soon peak, and three still going strong. How is the market performing in your neck of the woods?

While national housing prices have increased a staggering 20.6% over the past 12 months, every capital city and broad ‘rest-of-state’ region is now recording a slowing trend in value growth, according to the latest CoreLogic figures.

However, some areas are faring better than others, as we’ll run you through below.

Possibly peaked: Sydney and Melbourne

Sydney and Melbourne showed the sharpest slowdown in February, with Sydney (-0.1%) posting its first decline in housing values in 17 months (since September 2020), while Melbourne housing values (0.0%) were unchanged over the month.

That’s a pretty big drop off for Sydney in particular, which recorded 0.6% growth in January, while Melbourne recorded 0.2%.

A major contributing factor to this slowdown is that there’s now more property stock for buyers to choose from.

In Melbourne, advertised stock levels are now above average and tracking 5.5% higher than a year ago, while in Sydney advertised stock is 6.3% higher than last year.

CoreLogic’s director of research Tim Lawless says more choice translates to less urgency for buyers and some empowerment at the negotiation table.

“The cities where housing values are rising more rapidly continue to show a clear lack of available properties to purchase,” Mr Lawless explains.

Potentially peaking soon: Perth, Canberra and Darwin

The three capital cities that showed signs of slowing down in February – but not yet peaking – are Perth (0.3%), Canberra (0.4%) and Darwin (0.4%).

To put those figures into context, in January Perth (0.6%), Canberra (1.7%) and Darwin (0.5%) all recorded higher housing growth figures.

And over the past 12 months, Perth (8.3%), Canberra (23.8%) and Darwin (12.3%) have all performed quite strongly.

Still going strong: regional areas, Brisbane, Adelaide and Hobart

Conditions are easing less noticeably across Brisbane (1.8%), Adelaide (1.5%) and Hobart (1.2%).

Similarly, regional markets have been somewhat insulated from slowing growth conditions, with five of the six rest-of-state regions continuing to record monthly gains in excess of 1.2%.

The stronger housing market conditions in Brisbane and Adelaide in particular can be seen in the quarterly growth figures, with Brisbane housing values rising 7.2% over the past three months, and Adelaide up 6.4% over the same period.

So while Brisbane and Adelaide have slowed down a touch, a shortage of listings in those markets is helping to keep pushing prices up.

“Total listings across Brisbane and Adelaide remain more than 20% lower than a year ago and more than 40% below the previous five-year average,” explains Mr Lawless.

“Similarly, the combined rest-of-state markets continue to see low advertised supply, 24.9% below last year and almost 45% below the five-year average.”

Need help to finance your 2022 home purchase?

With property prices slowing down around the nation, now’s a good time to take stock and work out what you can and can’t afford over the year ahead – be that buying your first home or adding to your investment portfolio.

And part of that process is finding out your borrowing capacity before you start house hunting, so you don’t stretch yourself beyond your limits.

So if you’d like to find out what you can borrow – and therefore afford to buy – get in touch today.

We’d love to sit down with you and help you map out a plan for your 2022 finance and property goals.

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.

Thought about buying an EV? Interest rates for them are dropping

It wasn’t long ago that the idea of buying an electric vehicle (EV) seemed like a bit of futuristic science-fiction. But with interest rates on EV loans recently dropping to under 3%, going electric is now more in the realms of an everyday, mundane, household budget decision.

According to the latest Electric Vehicle Council data, sales of plug-in EVs almost tripled in the past year – from 6,900 in 2020 to 20,665 in 2021.

That means EVs now account for 1.95% market share of new vehicles.

Now, that might not sound like a lot. But the federal government projects it to rise to 8% by 2025 and 30% by 2030.

And we’re seeing major lenders start to jostle for pole position in the EV market too.

Macquarie, for example, sent an email out this week promoting comparison rates on electric cars to homeowners from 2.99% p.a. (based on a loan of $30,000 and a term of five years).

“We’re proud to be the first Australian banking group to offer a specialised electric car-buying service that can help you make the transition to an electric car,” the Macquarie email reads.

So how does that rate compare to a normal car loan?

Ok, so let’s say you were also thinking of going with Macquarie to buy a standard vehicle with an internal combustion engine (ICE).

You’re looking at a comparison rate of anywhere between 6.48% and 7.15% for a new ICE vehicle, depending on the loan-to-value ratio.

That’s quite a big difference from the new EV rates.

What’s driving the increasing uptake of EVs?

Increasing model availability, decreasing vehicle cost, and growing awareness of the economic and environmental benefits of EVs are changing the way people think about their transport options, according to the Electric Vehicle Council.

Here’s a guide to what you can currently buy in Australia. One of the cheapest options currently available is the MG ZS EV, which is around $48,990.

Hyundai and Nissan also have options in the $53,000 to $55,000 range.

It’s also worth noting that governments are making big moves in this area too, with some state governments offering $3,000 rebates.

And earlier this month, the New South Wales government (for example) announced plans to build more than 1,000 fast-charging stations for EVs over four years.

Get in touch with us to purchase your next vehicle

As electric vehicles become more popular in Australia, it’s a safe bet that we’ll see more and more lenders get their elbows out to offer competitive rates in this space.

So if you’re thinking of buying a vehicle to last you the next 5 to 10 years, and are considering making the jump to an EV, get in touch and we can help you crunch the numbers on whether an electric vehicle loan is the right fit for you.

And if it’s not quite right just yet, well, we can help you out with a good ol’ fashioned ICE vehicle loan instead!

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.

Where are tradies most in demand at the moment?

Keen to tackle a renovation project in 2022? You might have noticed that tradies are hard to pin down at the moment. So if you live in one of the suburbs in this week’s article, you might want to get the ball rolling sooner rather than later…

If you’ve ever watched The Block, you’ll know that a good team of reliable tradies can be the difference between a home reno project running smoothly, and everything going to hell in a handbasket.

But where in the world are all the good tradies right now?

If you’ve tried to source one recently for your own reno project, you might’ve noticed that quotes are up, calls are going unanswered and unreturned, and wait times are through the (unfinished) roof.

Well, it turns out Australians have been spending record amounts on renovations, which in turn has led to a surge in tradie demand.

“Home renovations have boomed nationwide as more time spent at home combined with ultra-low loan rates, government grants and improved household savings became the perfect combination of factors to drive heightened demand for renovations,” explains PropTrack senior economist Eleanor Creagh.

So which Aussie suburbs have the highest demand for tradies?

Like most things in the world of property and finance, some areas are busier than others.

Below are the top ten most in-demand suburbs in each state, according to online tradie directory hipages, as well as the most in-demand suburbs across the country.

National: Point Cook (Vic), Berwick (Vic), Craigieburn (Vic), Frankston (Vic), Kellyville (NSW), Werribee (Vic), Tarneit (Vic), Blacktown (NSW), Baulkham Hills (NSW), Castle Hill (NSW).

NSW: Kellyville, Blacktown, Baulkham Hills, Castle Hill, Quakers Hill, Campbelltown, Sydney, Penrith, Schofields, Maroubra.

VIC: Point Cook, Berwick, Craigieburn, Frankston, Werribee, Tarneit, Melbourne, Truganina, Pakenham, Hoppers Crossing.

QLD: Buderim, Southport, Upper Coomera, Surfers Paradise, Robina, Coomera, Forest Lake, Brisbane, Helensvale, Springfield Lakes.

WA: Canning Vale, Baldivis, Mandurah, Dianella, Scarborough, Thornlie, Willetton, Perth, Morley, Armadale.

SA: Adelaide, Morphett Vale, Hallett Cove, Mount Barker, Paralowie, Golden Grove, Aberfoyle Park, Parafield Gardens, Prospect, Mawson Lakes.

ACT: Kambah, Canberra, Ngunnawal, Belconnen, Amaroo, Gordon, Wanniassa, Gungahlin, Banks, Casey.

TAS: Hobart, Devonport, Launceston, Glenorchy, Sandy Bay, Kingston, Howrah, Lenah Valley, Claremont, Bellerive.

NT: Alawa, Darwin, Anula, Archer, Bakewell, Bagot, Alice Springs, Darwin City, Palmerston, Durack.

Need reliable finance for your reno project?

With wait times for reliable tradies blowing out, and supply chain issues when it comes to materials like timber also causing disruptions, the last thing you need is more delays to your reno project due to finance complications.

And that’s where we come in.

Not only can we help you secure funding at a great rate, but we can also help you select a loan that allows flexibility for any unforeseen contingencies along the way.

So if you’d like to explore your reno finance options, get in touch today – we’d love to help you turn your 2022 reno dreams into a reality.

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.

Fixed rates on the rise, as CommBank tips a June cash rate hike

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Hold onto your hats, things are about to get a little bumpy. Economists from Australia’s biggest bank are predicting the Reserve Bank will raise the official cash rate as early as June – and we’re already seeing fixed interest rates increase significantly.

Commonwealth Bank (CBA) economists have brought forward their forecasted Reserve Bank of Australia (RBA) cash rate hike from August to June, making it the earliest prediction amongst the big four banks.

We’ll go into more detail on why CBA has brought forward their prediction below, but first something a little more concrete: we’ve definitely noticed fixed rates trending up in recent months.

Fixed rate hikes

For example, back in November, for a $700,000 loan at 80% loan-to-value ratio, a two-year fixed rate with one particular lender was 1.84%.

That rate has since gone up to 3.04% – a staggering increase.

While not every lender has increased fixed rates so significantly, we are seeing them go up across the board.

So if you have been umming and ahhing about fixing your rate lately, you’ll want to get in touch with us sooner rather than later.

Because while most lenders have recently reduced their variable rates to compensate a little, with news now that the cash rate is being tipped to increase mid-year, you can expect variable rates to increase with the cash rate.

So why has CBA brought forward their forecast to June?

Ok, so back to CBA’s June cash-rate hike prediction and why they’ve brought it forward from August.

In a nutshell, CBA senior economist Gareth Aird is anticipating inflation to be a lot stronger than the RBA is forecasting.

As a result, Mr Aird believes this will lead to a rise in the cash rate to 0.25% at the June board meeting (currently it’s at a record-low 0.1%).

“We are very comfortable with our expectation that the quarter-one 2022 underlying inflation data will be a lot stronger than the RBA’s forecast,” explains Mr Aird.

And here’s the thing: it’s not the only cash rate hike CBA is predicting the RBA will make over the next 12 months.

Mr Aird is expecting a further three rate increases over 2022 to take the cash rate to 1%, with another move to 1.25% in early 2023.

That’s five cash rate hikes over 12 months!

Get in touch today to explore your options

Believe it or not, there are more than 1 million mortgage holders out there who have never experienced a rate rise (the last RBA cash rate hike was in November 2010).

And if the CBA’s prediction of five rate hikes over the next 12 months proves right, then some households will be in for a bumpy ride as they face hundreds of dollars in extra mortgage repayments each month.

So if you’re keen to act before the RBA increases the official cash rate, get in touch with us today. We’d love to sit down with you and help you work through your options in advance.

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.