With the End of Financial Year madness (mostly) over, I’ve rounded up three super interesting stories that are making waves right now;
1. Aussie householders are millionaires, on average
2. Don’t bet on your loan application
3. Student debt and loan rates soar Do you want help with a home loan or to see if you can now get a better deal? I’m always around to assist.
Call me now on: 0402 408944
Average Aussies are now millionaires!
According to the ABS, Australia's average household wealth has passed the $1 million mark for the first time, up more than 37 per cent compared with a decade ago. However, median wealth per household is almost half the headline figure at $558,900.
Rising property values and superannuation balances are the main contributors to this increase. The average household superannuation balance has almost doubled (up 90 per cent) from $112,500 in 2005/06 to $213,700 in 2017/18.
It’s important for Australians to know that as they increase their wealth, lenders and banks will view them as more favourable and less risky borrowers. In turn you can secure lower interest rates, avoid costs like Lenders Mortgage Insurance (LMI) and use your equity to build more wealth.
If you want to know more, let’s chat.
Help me build more wealth
Don’t Bet On Your Loan Application
According to a research paper by Roy Morgan, more than 1.8 million Australians aged 18+ place bets over an average three month period and men are twice as likely to place bets than women.
In the eyes of the Australian banks and lenders, gambling is a behavioural indiscretion and if too many gambling transactions appear on your banking statements it will cause issues on a loan application.
More bluntly, gambling has become a massive red flag and banks are rejecting normally strong loan applications because of the risks associated with a borrower who gambles. Even if it’s a few small transactions, banks will scrutinise your bank statements, looking for patterns and to ensure they lend responsibly.
Borrowers looking to refinance can get stung too - just because you have an existing loan doesn’t mean a new bank will turn a blind eye to a homeowner’s gambling.
Obviously, gambling can be a touchy subject and many people do it within their means and will feel targeted by this. If you’re thinking of applying for a home loan and have any gambling transactions on your accounts, it’s critical to chat with a broker right away.
I’m happy to have a confidential, judgement-free chat anytime.
Student debt and loan rates soar
The ATO says that 3.2 million Australians have an average student loan debt of $21,000 - equalling a national balance of $66 billion in outstanding student loans.
Australians must begin repaying their HECS loan once their income reaches $45,881. Below is a chart of the interest rate thresholds for this FY
Student debts & home loans
If you have an existing student debt, it can impact your borrowing capacity. In some circumstances you can roll a HECS debt into a home loan but it means extending the debt across a much longer term and often doesn’t save you money (even if the interest rate is less).
If you have a student loan and are thinking of getting a home loan it’s definitely possible but it’s important to start planning early. I can take a look at the debt, chat about your goals and make sure you will maximise your savings.
Talk to me about student debt
