They’re at it again. The RBA has raised the cash rate by 25 basis points to 4.35%. The banks will likely pass this on.

To make sure you’ve got a loan you can live with, consider speaking with us.

We may be able to help you access a better deal, whether it involves negotiating with your current lender or exploring competitive alternatives.

Get in touch for a no-strings conversation.

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Hi, everyone.

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So apparently for the RB A yesterday all days was a good day for another cash rate hike.

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In the midst of all the Melbourne Cup Day Fund.

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The RB A ended the four steady and quiet months of zero increases by raising the interest rate by 25 basis points.

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That means from 4.1%.

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The cash rate is now 4.35% which is the highest it’s been in 12 years.

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So with the current cash rate, a homeowner with a $500,000 mortgage can expect an additional 75 to $85 in their monthly repayments.

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Crazy, I know, however, these increases no longer seem to surprise homeowners.

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Many have already taken the smart move to refinance a few months back and have secured a much lower rate making them safe from the blows of future rate increases.

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However, we’re not out of the woods yet.

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The coming year end is not a guarantee that all these hikes will halt.

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And even if it does just as we’ve experienced in the previous four months, remember that we’re still sitting now at 4.35%.

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How many more months.

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Do we need to wait for it to go down?

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That’s if it will go down.

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I’m sure you have lots of questions, whether you’re a homeowner or you’re yet to apply for a home loan.

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These cash rate hikes affect you.

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Please note that there are strategies that we can employ depending on your unique scenario.

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L Street is here to help.

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So reach out to us for a no strings conversation about your options.

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Speak soon.

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There are several important factors that may be taken into account when determining your borrowing power. Here are five points to consider when it comes to your borrowing capacity.

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#1 – A joint application may increase your borrowing power.

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#2 – How many dependents you will have will be considered.

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#3 – If you have less than a 20% deposit, your lender may ask you to pay LMI.

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#4 – The higher your income, the higher your potential borrowing power.

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#5 – Reduce existing liabilities such as credit card limits.

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When is home loan refinancing the right thing to do? The market is clearly divided on whether the mortgage Cliff is a cause of Panic or not.

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Many are quick to refinance but some borrowers also see this period as part of a normal rate cycle. So how will you know if refinancing is the right thing to do?

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Ask yourself these questions.

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#1 – How much do I still owe?

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#2 – When will my home loan run out?

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#3 – What deals are on offer?

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#4 – What’s the cost of switching lenders?

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#5 – Can I afford my home loan repayments?

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And #6 – What are my money goals? Lastly, what is my break a point the fees to switch should manifest as my repayment savings.

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So, what does a mortgage broker actually do? In a nutshell, mortgage brokers are a middleman between the borrower and the lender. Whilst the borrower can go directly to the bank, here are four reasons how a mortgage broker can help you.

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#1, They’re Time Savers. Because of their expertise, Mortgage brokers know exactly what to do, when to do it and who to speak to. Saving you precious time and avoiding risks.

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#2, There’s zero cost for their help. Most Brokers don’t charge fees because it’s the bank that pays them a commission.

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#3, They have reach. As opposed to you being able to contact three or five banks only, maybe 10 if you’re hustling, a mortgage broker will still have a bigger advantage because they’ve typically got 50 or more banks in their network.

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#4, Mortgage brokers have a legal obligation to protect your best interest and compare lenders, and find deals that are most suited for you.

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Three things you need to know before choosing the right mortgage broker.

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#1, Establish their educational qualifications, experience, and licensing. They should have an Australian credit license or be qualified as an authorised credit representative. While Brokers don’t need to have a degree in finance and mortgage broking, those that do are more likely to be qualified. Check if they’re accredited under the National Consumer Protection Act and have a certificate for and preferably a diploma in financial services.

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#2, Check how many lenders your broker has on their panel. This will suggest the range of products they can offer. If the broker has a limited number of different lenders, then this could be a warning sign that they’ll restrict your options with only a small variety of lending products.

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#3, They need to explain your options clearly. You want to make sure you’re being provided relevant advice. Although working with a broker has many advantages, it’s important to do your homework first to ensure that you only work with a reputable one.

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Planning to buy your very first home soon? Here are five tips to boost your borrowing capacity.

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#1, Reduce your debts and your monthly payments. This will show lenders a positive credit history. Fewer expenses mean you are being smart about your money and responsible when it comes to repayments.

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#2, If you have credit cards and overdrafts that you don’t owe money on – close the accounts down. The total credit limits of all your credit you possess will impact your home loan borrowing capacity.

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#3, Reduce expenses in any way that you can. This could include going down to – one coffee trip – instead of two. Or what about that gym membership that you don’t use? Search for cheaper deals and create a budget to minimiSe your spending.

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#4, If you can place more than a 20% deposit towards your property purchase, this will signal to the bank that you are sensible with your money and are not prone to frivolous spending.

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#5, If you can find ways to increase your income, do it. Ask for a salary increase or find other income streams like selling baked goodies, offering Professional Services, or becoming a ride-share driver during your free time.

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Self-employed and applying for a home loan? Apply for a low doc home loan with just these three things.

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#1 your ABN. #2 your (BAS) business activity statements, and #3 a completed income declaration form instead of the traditional requirements like pay slips and tax returns.

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You have other alternative requirements you can show the bank and if you’re self-employed, a low doc home loan is for you.

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What’s the catch? Banks will usually allow you to borrow up to 60% of your desired property value instead of 80%. So, if you need more, you may have to accept a higher interest rate. But don’t let this stop you from purchasing your dream home.

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Talk to a trusted mortgage broker and let them find a strategy to help you borrow money with less constraints.

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What is a low-doc home loan and is it right for you?

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It could be right for you if you are a self-employed freelancer, small business owner, investor, contractor, casual worker, seasonal worker, or an ABN holder, but lacking enough documentation to present to the bank.

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Banks look at self-employed differently as compared to other borrowers because they think they’re high risk due to the potential fluctuations in income.

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For banks, they think that this can affect your ability to meet repayments. With the help of the right mortgage broker, and a low-doc home loan, you’ll be able to prove your ability to get the financing that you need for your next property purchase.

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Did you know you could be eligible to wave LMI completely if you’re a Doctor, Dentist, Accountant Engineer, or other type of professional?

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That’s because lenders consider you as a low-risk borrower since professionals like you are in high demand across different Industries and locations and are typically highly paid.

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Statistics also show that you’re rarely to default on payments and loans. You could also be exempt from paying LMI if you’re a Vet, Optometrist, Pharmacist, Financial Analyst, Financial Manager, Auditor, Solicitor, Lawyer, Professional Athlete, an Actor or Film Producer, a Mind Surveyor and more!