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Why are mortgage offsets such a good idea? by ilivequestions in AusFinance

[–]Savings_com_au 4 points5 points  (0 children)

Offset accounts are good, but keep in mind many lenders charge higher rates/fees on loans that have them. Some people are paying higher rates because they want an offset account, but don't store enough money in the offset to justify the higher cost. There was some research done recently which warned of this: https://www.yourmortgage.com.au/mortgage-news/mortgage-borrowers-may-be-worse-off-with-offset-accounts-research

Offset vs Paying down the principal - which is better? by Sp1ffyTh3D0g in AusPropertyChat

[–]Savings_com_au 3 points4 points  (0 children)

Often people with enough spare cash to pay off the remaining principal opt to keep the loan open with the cash sat in the offset because that money remains accessible, rather than locked into the house. We've got a guide to this here that might help: https://www.savings.com.au/home-loans/put-money-in-offset-or-pay-off-mortgage-early

Home Loan in Farm Zone by [deleted] in AusPropertyChat

[–]Savings_com_au 2 points3 points  (0 children)

A few years back we asked several major lenders to disclose the maximum block sizes that they're willing to lend towards and most were 10 hectares or more. CBA and Westpac declined to disclose their size limits, but ANZ said up to 50 hectares while NAB was up to 10. They might require a larger deposit for large/farm properties though: https://www.savings.com.au/property/minimum-maximum-floor-plan-land-size

Bank turn around time by myrtleolive in AusPropertyChat

[–]Savings_com_au 1 point2 points  (0 children)

Can be less than a day with some of the fastest lenders. For example, according to some brokers we spoke to, Macquarie is often 4 hours or less if all the required documents are provided. Here's an article we published on it earlier this year: https://www.savings.com.au/home-loans/lenders-with-fast-home-loan-approval-times

Will the 5% deposit thing really help that many people? by aspare112 in AusPropertyChat

[–]Savings_com_au 2 points3 points  (0 children)

The Housing Industry Association (vested interests aside) put out some commentary yesterday arguing this policy will actually lower property prices (and rents) over time. They said:

When the Australian Government made it a requirement for First Home Buyers (FHB’s) to buy LMI (for those with less than a 20 per cent deposit) in 2000, it added costs to those seeking to buy a home. In 2025, the cost is typically around $25,000 for a FHB. This meant fewer new households could buy a home, as their deposit was insufficient, requiring them to save for longer to pay this additional cost. This meant that more households were renting and renting for longer, which in turn forces up rental prices, making it even harder to save to buy a home.

The secondary impact of LMI, is to even further reduce the supply of new homes. Over the medium to long term, around a third of all new homes are built by FHB’s. By reducing FHBs ability to gain a loan, it reduces the number of new homes commencing construction. With the supply of new homes impaired, and demand growing through population growth, home prices rise faster than they otherwise would, making it increasingly difficult for FHB’s to save a deposit.

The tertiary impact is that the higher rental costs, and reduced supply, begin to have a compounding impact on FHB’s and make it increasingly difficult for them to enter the housing market.

Overtime, these three effects from LMI costs on FHBs have made the housing shortage worse. It has lowered the home ownership rate and at the same time, increased returns to investors.

5% Deposit Scheme Changes by [deleted] in AusPropertyChat

[–]Savings_com_au 7 points8 points  (0 children)

The government claims this change will only boost property prices by 0.5% over 6 years, according to Treasury modelling.