Some of Australia’s biggest banks have tightened their mortgage lending criteria, meaning you might not be able to borrow as much from them. How might this affect your next purchase?
This week ANZ lowered a key lending cap, indicating it will no longer lend to borrowers with a debt-to-income (DTI) ratio above 7.5 (meaning people can borrow up to seven and a half times their gross annual income).
NAB meanwhile has reduced its cap to eight times a borrower’s income.
Up until this month, both banks had been willing to lend up to nine times a borrower’s income.
In effect, the changes mean the maximum amount you can borrow with them to buy a property will be reduced.
Fellow big four banks CBA and Westpac have not announced any reductions but have said they’re already applying tighter lending rules to borrowers seeking loans with high DTI ratios.
The increased focus on lending caps comes as financial institutions and the industry regulator, the Australian Prudential Regulation Authority (APRA), prepare for the impact of higher interest rates (many economists are tipping another rate hike in June).
APRA started making moves as early as late last year when it announced new borrowers would need to be tested to see if they could cope with interest rates at least 3% above the current rate (up from 2.5% previously).
Then, this week APRA Chair Wayne Byers indicated the regulator was concerned about the rise in high DTI loans being issued by some banks.
“We will also be watching closely the experience of borrowers who have borrowed at high multiples of their income – a cohort that has grown notably over the past year,” he told the AFR Banking Summit in Sydney.
“Interestingly, this growth has not been an industry-wide development, but rather has been concentrated in just a few banks.”
Your DTI ratio is very simple to work out.
The formula is: total debt / gross income = debt-to-income ratio.
So, if you’re seeking a $700,000 home loan (and have no other debt), and you have $160,000 in gross household income, your DTI is 4.375 – a ratio most lenders would be very comfortable with.
However, a household in the same financial position seeking to borrow $1.4 million for a home would have a DTI of 8.75, putting it above the caps now being imposed by ANZ and NAB.
There’s a fine line between maximising your investment opportunities and stretching yourself beyond your limits, especially with interest rates on the rise.
And that’s where we come in.
It’s not only important to stress-test what you can borrow in the current financial landscape, but also against any upcoming headwinds that are tipped to hit borrowers – such as multiple interest rate rises.
So, if you’d like to find out your borrowing capacity and options, get in touch today. We’d love to sit down with you and help you map out a plan.
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.
Small businesses around the nation are once again confident about their future and ready to start driving toward their next phase of growth, according to new research.
The research, carried out by small business lender Prospa, found that 81% of Aussie SMEs expect their businesses to grow over the next 12 months.
This is despite 87% of business owners anticipating challenges within the same timeframe.
“Small business owners have not had an easy ride navigating through the pandemic, supply chain issues, staff shortages, and now increasing operating costs,” says Beau Bertoli, co-founder and chief revenue officer at Prospa.
“Despite ongoing challenges, the majority of small business owners have been working hard to make smart decisions to drive new revenue and become more efficient to propel growth.”
The research found that 7 out of 10 business owners have either made, or are in the process of making, changes to their business.
This is combined with 71% of business owners expressing that they plan to embark on accessing funds in the short-term, ahead of possible further interest rate rises.
“Small businesses are not only confident, but studies show business owners are planning to apply for funds sooner to spare them from paying extra on their repayments,” adds Mr Bertoli.
Another key reason why small business owners are looking to access funds over the next few weeks is to take advantage of the federal government’s temporary full expensing scheme this financial year.
The scheme allows businesses keen to invest in their future to immediately write off the full value of any eligible depreciable asset purchased, at any cost.
This can help with your cash flow, as it allows you to reinvest funds back into your business sooner.
Trucks, coffee machines, tools, excavators, and vehicles are just some examples of assets eligible under the scheme.
But here’s the catch: the asset must be installed and ready to use by June 30 in order to be eligible for this financial year.
So if you’d like help obtaining finance to make the most of temporary full expensing ahead of the impending EOFY deadline, get in touch with us today.
We can help you with financing options that are well suited to your business’s needs now, and into the future.
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.
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[et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]Property investors beware: the Australian Taxation Office (ATO) has revealed the four key areas it will be targeting this tax year, and rental property income/deductions and capital gains are high on the hit list.
Tax office Assistant Commissioner Tim Loh says this tax season the ATO will be targeting four key problem areas where it commonly sees people making mistakes, including:
– rental property income and deductions;
– capital gains from property, shares and crypto assets;
– record-keeping; and
– work-related expenses.
“We know there are still some weeks left until tax time, but if you start organising the income and deductions records you’ve kept throughout the year, this will guarantee you a smoother tax time and ensure you claim the deductions you are entitled to,” says Mr Loh.
If you’re a rental property owner, it’s important to include all the income you’ve received from your rental in your tax return, including short-term rental arrangements, insurance payouts and rental bond money you retain.
“We know a lot of rental property owners use a registered tax agent to help with their tax affairs. I encourage you to keep good records, as all rental income and deductions need to be entered manually,” explains Mr Loh.
He adds that if the ATO does notice a discrepancy it may delay the processing of your refund as it may contact you or your registered tax agent to correct your return.
“We can also ask for supporting documentation for any claim that you make after your notice of assessment issues,” Mr Loh adds.
For more information visit ato.gov.au/rental.
If you dispose of an asset such as property, shares, or a crypto asset including non-fungible tokens (NFTs) this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.
Generally, a capital gain or capital loss is the difference between what an asset cost you and what you receive when you dispose of it.
“Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations,” adds Mr Loh.
For those who deliberately try to increase their refund, falsify records or cannot substantiate their claims, the ATO warns it will be taking firm action against them this year.
If you’re not in a rush to complete your tax return, it might be better to wait until the end of July, which is when the ATO can automatically pre-fill a lot of information for you.
“We often see lots of mistakes in July as people rush to lodge their tax returns and forget to include interest from banks, dividend income, payments from other government agencies and private health insurers,” the ATO says.
Just note that not all information can be pre-filled for you, so be careful to double-check.
“While we receive and match a lot of information on rental income, foreign-sourced income and capital gains events involving shares, crypto assets or property, we don’t pre-fill all of that information for you,” adds Mr Loh.
Many people around the country have changed to a hybrid working environment since the start of the pandemic, which saw one-in-three Aussies claiming work-from-home expenses in their tax return last year.
“If you have continued to work from home, we would expect to see a corresponding reduction in car, clothing and other work-related expenses such as parking and tolls,” says Mr Loh.
To claim a deduction for your working from home expenses, there are three methods available depending on your circumstances.
You can choose from the shortcut method (all-inclusive), fixed-rate method, or actual cost method, so long as you meet the eligibility and record-keeping requirements.
For more information visit ato.gov.au/deductions.
The end of financial year is a busy time for all finance professionals – and mortgage brokers are no different, as there are plenty of important June/July deadlines we can help you with.
That includes helping your business obtain finance to make the most of temporary full expensing before CoB June 30, and assisting potential first home buyers apply for the Home Guarantee Scheme come July 1.
So if there’s something you think we can help you with this EOFY period, please don’t hesitate to shout out – we’d love 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 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.[/et_pb_text][/et_pb_column]
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Housing affordability is one of the key battlegrounds ahead of the federal election this Saturday. So what is each of the two major parties proposing to help first home buyers crack the market? Let’s take a look.
Now, before we get into the nitty-gritty, we’d like to stress that we’ll be doing our darndest to make this article as non-partisan as possible.
We understand that everybody has their preferences, priorities and beliefs – and housing affordability might not factor very highly for you – so what we’ll do below is simply run you through each of the policy’s details.
As is customary with these kinds of things, we’ll kick it off with the incumbent government’s policy pitch first.
If re-elected, Prime Minister Scott Morrison (Liberal Party) is promising to allow first home buyers to use their superannuation to help supplement a house deposit under its Super Home Buyer scheme.
It won’t be open slather on your super account, though.
You would need to have a 5% house deposit saved up before you could apply.
And you could only access up to 40% of your superannuation, to a maximum of $50,000.
The scheme would apply to both new and existing homes and there would be no income or property price caps under the scheme
Also, if you decided to later sell the property, you would have to return the money taken from your superannuation account, including a share of any capital gains.
Opposition Leader Anthony Albanese (Labor Party) meanwhile has pitched to first home buyers a “Help to Buy” scheme.
If elected to government, Labor has promised to help you buy a house by purchasing up to 40% of it with you for new builds, and 30% for existing homes.
Eligible first home buyers would need to have saved a minimum deposit of 2%, and the scheme would be limited to individuals earning less than $90,000 or couples earning $120,000.
Under the scheme, which would be capped at 10,000 spots each year, the government would own the relevant percentage of your house that they contribute, which you could choose to buy back over time.
If your income increased above the thresholds, you’d have to start buying the government’s share back, and if you sold your home, the government would claim back its share (along with the relevant proportion of any capital gains).
Property price caps would also apply, including $950,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane, $600,000 in ACT, and $550,000 in Perth, Adelaide, Tasmania and NT.
No matter which party wins the federal election, rest assured that we’ll be across the details of its home buying and economic policies and ready to support you on your home buying journey.
Likewise, if you have any concerns about the housing market or the interest rate outlook over the next 12 to 24 months, please don’t hesitate to get in touch.
We’re more than happy to run through your situation and help you weigh up your options.
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.
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Small business owners wanting to buy a vehicle, asset or important piece of equipment and immediately write off the cost have just over a month to act this financial year.
There’s nothing like an impending deadline to get you moving.
And with June 30 now just over a month away (didn’t that sneak up on us!), time is running out for your business to take advantage of the federal government’s temporary full expensing scheme this financial year.
Temporary full expensing is basically an expanded version of the popular instant asset write-off scheme.
It allows businesses that are keen to invest in their future to immediately write off the full value of any eligible depreciable asset purchased, at any cost.
This helps with your cash flow as it allows you to reinvest funds back into your business sooner.
Trucks, coffee machines, excavators, and vehicles are just some examples of assets eligible under the scheme.
There is just one small catch though …
The asset must be installed and ready to use by June 30 in order to be eligible for this financial year.
But rest assured that even if you do order the asset, and then miss the June 30 deadline because it doesn’t arrive in time, you can still write it off next financial year because the scheme is set to run until 30 June 2023.
To be eligible for temporary full expensing, the depreciating asset you purchase for your business must be:
– new or second-hand (if it’s a second-hand asset, your aggregated turnover must be below $50 million);
– first held by you at or after 7.30pm AEDT on 6 October 2020;
– first used, or installed ready for use, by you for a taxable purpose (such as a business purpose) by 30 June 2023; and
– used principally in Australia.
Being able to immediately write off assets is one thing, but if you don’t have access to the right kind of finance to purchase them now, the scheme won’t be much use to you this financial year.
So if you’d like help obtaining finance to make the most of temporary full expensing ahead of the impending EOFY deadline, get in touch with us today.
We can help you with financing options that are well suited to your business’s needs now, and into the future.
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.
Rate rises are a bit like taking off in a plane. Sure, it’s a bit nervy, but so long as you’ve run through your pre-flight check, have a well-serviced aircraft, built-in some contingencies (a buffer!), and have a handy co-pilot (us!), you should reach your destination no worries.
As you’re likely aware, earlier this month the Reserve Bank of Australia (RBA) increased the official cash rate by 25 basis points to 0.35% due to high inflation concerns.
While it was the first cash rate hike since November 2010, RBA Governor Philip Lowe was quick to give mortgage holders a heads-up that there would be more hikes to come.
“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time. This will require a further lift in interest rates over the period ahead,” Governor Lowe said.
Well, the Commonwealth Bank is predicting that the RBA will increase the cash rate to 1.35% by the end of the year.
That could mean four more 25 basis points increases, with hikes in June, July, August and November 2022.
Fortunately, according to results from a recent Money Matchmaker survey, eight in 10 borrowers have built up a savings buffer and nearly two-thirds are ready to meet a 0.5% rate rise or more.
This echoes research from the Australian Prudential Regulation Authority (APRA), which shows the average balance sitting in mortgage offset accounts is now nearly $100,000 – up almost $20,000 since the pandemic kicked off in March 2020.
As we’ve seen from this month’s RBA cash rate rise, the banks are quick to pass on rate hikes when it comes to mortgages, but not so quick when it comes to savings accounts.
Therefore one way you can prepare for this upcoming period is to consider adding an offset account to your home loan.
In a nutshell, an offset account is a regular transaction account that is linked to your home loan.
The advantage is that you only pay interest on the difference between the money in the account and your mortgage.
Some banks allow you to have 10 offset accounts attached to your mortgage, too, with cards linked to them that you can use for everyday spending.
This means that if your lender is quicker to pass on rate rises on your home loan than they are your savings account, your money will be working harder for you in the offset account than a savings account.
And, by building up extra funds in your offset account, you will also have peace of mind knowing that you have a buffer – in the right place and ready to go – for more interest rate rises down the track.
So if you’d like to talk to us about your options to prepare for any upcoming rate rises – be that refinancing, fixing your rate, or adding an offset account – get in touch with us today.
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.
The Reserve Bank of Australia (RBA) has increased the official cash rate by 25 basis points to 0.35% amid high inflation concerns and has signalled more cash rate increases will likely follow.
This is the first RBA cash rate hike since November 2010, and the first time the cash rate has moved since it was cut to a record-low 0.10% in November 2020.
The increase comes a week after Australian Bureau of Statistics (ABS) data showed the cost of living had jumped 5.1% over the past year – the highest annual increase in more than 20 years.
RBA Governor Philip Lowe said the board judged that it was the right time to begin withdrawing some of the “extraordinary monetary support” put in place to help the Australian economy during the pandemic.
“The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected,” said Governor Lowe.
Governor Lowe added that the board was committed to doing what was necessary to ensure that inflation in Australia remained in check.
“This will require a further lift in interest rates over the period ahead. The board will continue to closely monitor the incoming information and evolving balance of risks as it determines the timing and extent of future interest rate increases,” he said.
High inflation is bad because it means the real value of your money has dropped and you can buy less goods and services than you could previously.
High inflation also has a habit of getting out of control, because one of the drivers of inflation is people expecting inflation.
Economists would argue that raising interest rates now is a hit we have to take to ensure we don’t end up with runaway inflation (short term pain trumps long term disaster).
Higher interest rates cool inflation in a number of ways, but one of the main ways they can actually save you money right now is via the exchange rate.
If the RBA didn’t raise rates, investors would likely decide they could get better returns elsewhere around the globe, thereby lowering demand for our currency.
And if Australia’s exchange rate falls, the cost of imported goods, including the oil you fuel your car with, could go up even higher.
Well, unless you’re on a fixed-rate mortgage, it’s extremely likely the banks will follow the RBA’s lead and increase the interest rate on your home loan very soon.
How much your repayments will go up each month will depend on a number of factors, including how your particular bank responds to the cash rate increase and the size of your mortgage.
If you’re worried about what interest rate rises might mean for your monthly budget, feel free to get in touch with us today to explore some options, which could include refinancing or locking in a fixed rate ahead of any other future RBA cash rate hikes that the RBA has signalled.
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.
Australian small businesses are investing in their recovery through a surge in machinery purchases, IT and office technologies, and sustainable business assets, according to Commonwealth Bank (CBA) data.
The CBA research shows small business financing for equipment and machinery is up 17% so far this financial year compared to last year.
The research also shows 67% of businesses have budgeted for new equipment in the next 12 months, with 55% of those businesses specifically planning to invest in IT and office technology.
“As organisations welcome employees back into offices, they are investing in new technology to attract and retain staff, and many are demanding sustainable business investments,” explains Grant Cairns, CBA’s Executive General Manager for Business Lending.
Across the small business sector, the biggest investment boosts have been in electric cars (156%), trailers (312%), and forklifts (395%).
According to CBA’s data, an increasing number of small businesses are taking advantage of discounts on financing for energy-efficient vehicles, equipment and projects.
“We’ve seen an uptake in hybrid and electric vehicles, as well as investments across other assets including IT equipment,” he adds.
“More small businesses are also seeing the benefits – including the financial benefit – of replacing old equipment with energy-efficient alternatives.”
Mr Cairns says the growing rate of investment is underpinned by a range of government incentives.
That includes attractive interest rates for the SME Recovery Loan Scheme; the extension of the federal government’s temporary full expensing scheme (aka instant asset write off) to mid-2023, and tax incentives announced in the federal budget that encourage small businesses to invest in technology and training.
Those tax incentives allow small businesses to receive a $120 tax deduction for every $100 they spend on training staff or investing in technology, up to a maximum of $100,000 a year.
“Government incentives have played a significant role in lifting business investment over the past few years,” says Mr Cairns.
“Since July last year, we’ve seen continued growth in asset finance in the small business sector, with the instant asset write-off scheme providing a good reason for customers to upgrade equipment and technology.”
To make the most of the government incentives outlined above, it’s important to get the ball rolling now.
For example, the government-backed SME Recovery Loan Scheme is only available until 30 June this year.
And to make the most of temporary full expensing (aka the instant asset write-off) this financial year, the asset you purchase must be installed or ready for use by 30 June.
So if you’d like to explore your finance options for purchasing an asset for your business, as well as any government schemes or energy-efficiency discounts your business might be eligible for, get in touch today.
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.
The chances of the Reserve Bank of Australia (RBA) lifting the official cash rate on Tuesday just increased dramatically after figures showed the cost of living jumped 5.1% over the past year – the highest annual increase in more than 20 years.
Economists around the country say the unexpectedly high jump in inflation means a May rate hike is now on the cards when the RBA board meets on Tuesday.
“Expect the RBA to start hiking next week. First hike should be +0.4%,” said AMP chief economist Dr Shane Oliver.
ANZ Bank meanwhile immediately called for the Reserve Bank to raise the cash rate to 0.25%.
“A cash rate target of 0.1% is inappropriate against this backdrop,” said ANZ head of Australian economics David Plank.
Cost of living – aka the Consumer Price Index (CPI) – rose 2.1% in the March 2022 quarter and 5.1% annually, according to Australian Bureau of Statistics (ABS) data released on Wednesday.
According to the AFR, market economists were tipping headline inflation to jump to 4.6% year-on-year, so this has smashed those expectations.
ABS Head of Prices Statistics Michelle Marquardt said a combination of soaring petrol prices, strong demand for home building, and the rise in tertiary education costs were the primary factors driving up inflation.
It’s also worth noting that the RBA’s preferred measure of inflation – underlying inflation – which strips out the most extreme price moves, came in at 3.7%.
That’s now well above the 2-3% target range the RBA has previously stated was a key measure for triggering a cash rate hike.
High inflation is bad because it means the real value of your money has dropped and you can buy less goods and services than you could previously.
High inflation also has a habit of getting out of control, because one of the drivers of inflation is people expecting inflation.
Economists would argue that raising interest rates now is a hit we have to take to ensure we don’t end up with runaway inflation (short term pain trumps long term disaster).
Higher interest rates cool inflation in a number of ways, but one of the main ways they can actually save you money right now is via the exchange rate.
If the RBA doesn’t raise rates, investors will likely decide they can get better returns elsewhere around the globe, thereby lowering demand for our currency.
And if Australia’s exchange rate falls, the cost of imported goods, including the oil you fuel your car with, would go up even higher.
So it’s a tough pill to swallow for mortgage holders, but inflation can get out of hand if left unchecked. Prime examples include high inflation in Australia in the 1980s, and more recently Zimbabwe.
Well, if the RBA increases the official cash rate on Tuesday, as many economists are now predicting, unless you’re on a fixed rate mortgage, it’s likely the banks will follow suit and increase the interest rate on your home loan.
How much your repayments will go up each month will depend on a number of factors, including if the RBA increases the cash rate to 0.25% or 0.5%, how your bank responds, and the size of your mortgage.
If you’re worried about what interest rate rises might mean for your monthly budget, feel free to get in touch with us today to explore some options, which could include refinancing or locking in a fixed rate ahead of any other future RBA cash rate hikes.
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.
First home buyers with a deposit of just 5% will soon have more purchasing power thanks to an increase in property price caps for the highly popular Home Guarantee Scheme.
Most capital cities will get a $100,000 boost to their property price cap from July 1, while regional areas around the country will get a boost of between $50,000 and $150,000 (exact details below).
It’s all part of the Home Guarantee Scheme (previously the First Home Loan Deposit Scheme), which allows you to buy your first home with just a 5% deposit and pay no lenders’ mortgage insurance (LMI).
First home buyers who use the scheme fast track their property purchase by 4 to 4.5 years on average, because the scheme means you don’t have to save the standard 20% deposit.
Better yet, not paying LMI can save buyers anywhere between $4,000 and $35,000, depending on the property price and your deposit amount.
The government usually issues just 10,000 spots for the First Home Guarantee every July 1, but next financial year it’s opening up 35,000 spots.
The new property price caps below don’t just apply to the Home Guarantee Scheme.
They’ll also apply to the Family Home Guarantee for single parents, in which 5,000 spots will be allocated next financial year.
NSW capital city and regional centres: $900,000 (up from $800,000)
Rest of state: $750,000 (up from $600,000)
VIC capital city and regional centres: $800,000 (up from $700,000)
Rest of state: $650,000 (up from $500,00)
QLD capital city and regional centres: $700,000 (up from $600,000)
Rest of state: $550,000 (up from $450,000)
WA capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 (up from $400,000)
SA capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 ( up from $350,000)
TAS capital city and regional centres: $600,000 (up from $500,000)
Rest of state: $450,000 (up from $400,000)
ACT capital city and regional centres: $750,000 (up from $500,000)
NT capital city and regional centres: $600,000 (up from $500,000)
The capital city and regional centre price thresholds apply to areas with a population over 250,000 people, including Newcastle, Lake Macquarie, Illawarra (Wollongong), Geelong, Gold Coast and Sunshine Coast.
Places in these schemes are generally allocated on a first-come, first-served basis.
And don’t let the expansion to 35,000 spots lull you into a sense of complacency – they’ll get snapped up fairly quickly.
So if you’re a first home buyer or single parent looking to crack into the property market sooner rather than later, get in touch today and we can explain the schemes to you in more detail and help check if you’re eligible.
And when the spots do become available over the next few months, we’ll be ready to help you apply through a participating lender.
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.
