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Carol from Vista Financial

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About Carol from Vista Financial

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  1. Carol from Vista Financial

    Current mortgage rates and special offers

    Happy hump day... is anyone else finding this week dragging on!? Here is the round up today - all above offers remain current for now: - 3.97% investment principal and interest (construction available) - Owner occupied home loan linked to the RBA cash rate. How does this last one work? With this product the interest rate is the sum of the cash rate at the time plus a fixed margin set by the lender. Thus if the cash rate set by the RBA moves so does your rate, but the set margin of the bank remains the same. Quite a unique product. (NB: only available for owner occupied variable under 80%). Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions. Have a great day all
  2. Carol from Vista Financial

    Financial advice please

    Hi @mattman (1) @Andrew from Vista Financial may be able to help with the financial planing side of things for UK/Oz as is very familiar with both (2) Unfortunately I am only accredited to advise on Australian mortgages, not UK ones... I think the main hurdle you will face will be finding a UK lender willing to re-mortgage while you are no longer in the UK. If you can, you would need to access the equity as funds available as you cannot cross-secure properties internationally. Do you have any savings for a deposit that you could otherwise access? As for how much you would need you can play around with some figures here: https://vista.financialknowledgecentre.com.au/kccalculators.php?id=19 Are you planning to purchase together as a couple and if so does your partner own any property (or ever owned in the past)? This will determine any government first home owner subsidy eligibility and your residency status will determine a few things too (i.e. are you on a permanent subclass now?) (3) Not my area sorry (4) If you are looking to buy here then definitely sort out any issues regarding any tax etc. in your returns as your financial situation will be viewed as a whole by any lender, inclusive of any outstanding debts even if overseas (don't forget any student loans through SLC if this is applicable to you). Hope that helps, any other questions re mortgages/purchasing in Oz fire away.
  3. Carol from Vista Financial

    Current mortgage rates and special offers

    Good morning! Short and sweet today. - 3.95% 2 year fixed principal and interest investment (slightly lower than another offer mentioned above) Important: this is a separate offer not in conjunction with any others stated previously and are subject to meeting lender terms and conditions. All the above offers remain current for now. If anything exciting pops up I will let you know. Countdown is on for the weekend!
  4. Carol from Vista Financial

    RBA cash rate decision 7 August 2018

    Low and behold, at its meeting today, the Board decided to leave the cash rate unchanged again at 1.50 per cent. Some interesting parts of the media release, or you can read the full version here: "In Australia, money-market interest rates are higher than they were at the start of the year, although they have declined somewhat since the end of June. These higher money-market rates have not fed through into higher interest rates on retail deposits. Some lenders have increased mortgage rates by small amounts, although the average mortgage rate paid is lower than a year ago." Indeed, some lenders have started to creep up mortgage rates slightly quoting higher costs - the true reasons for doing so is anyone's guess, as they are unfortunately able to alter rates independently of any RBA decision. An old abandoned interest earning account is still at 0.01%, however. "Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Housing credit growth has declined to an annual rate of 5½ per cent. This is largely due to reduced demand by investors as the dynamics of the housing market have changed. Lending standards are also tighter than they were a few years ago, partly reflecting APRA's earlier supervisory measures to help contain the build-up of risk in household balance sheets. There is competition for borrowers of high credit quality." Tightening in lending criteria is certainly evident as the industry rushes to ensure compliance as auditors and regulators get the fine tooth comb out. Quite heavy in the investment lending side of things yes, but for owner occupiers or those moving into investment properties, be prepared to show the bank proof that you actually live there. A few lenders have started to enforce this for any product switches; what suffices for evidence varies between lenders. Speaking of big brother, keep an eye out for random acts of 'kindness' from your super company as Round 5 hearings of the Royal Commission looks at the super industry. What a pleasant surprise that my super company refunded me some administration fees they 'accidentally' charged... "Sorry we robbed you - here, have it back". And last but not least from the RBA media release: "One continuing source of uncertainty is the outlook for household consumption. Household income has been growing slowly and debt levels are high. The drought has led to difficult conditions in parts of the farm sector." The impact of drought or any other financial hardship can be massive on those families affected by it. When you are scraping for pennies everything else is also just that little bit harder. If you are affected by drought or struggling with money call your bank and ask to speak to the Hardships Team. Every lender has one - ask how they can help. Or, call the National Debt Hotline 1800 007 007 or research your options - Money Smart has some great information here. And of course, please look after your health, mental and physical. If you or someone you know is struggling financially it is ok to ask for help. https://www.lifeline.org.au/get-help/topics/financial-problems
  5. Carol from Vista Financial

    Current mortgage rates and special offers

    Good morning world. Thank goodness for emails, forums and typing. I have had laryngitis and unable to talk since Friday night! Please yell and shout so I can live vicariously through you. So, update: - $1,250 bonus for new home loans from one lender - Apply between 23 July 2018 and 2 December 2018, be approved and draw down by 1 March 2019. Important: this is a separate offer not in conjunction with any others stated previously and are subject to meeting lender terms and conditions. That is about it. Things have begun to slow down in the specials department at the moment, all of the above offers aforementioned remain current. I expect to see another surge come spring as marketing teams have more fun with flowers Banks are also recovering after EOFY. Until next week....
  6. Carol from Vista Financial

    Money, tax, mortgage question

    Probably best to speak to a tax accountant as each person on the street will have a different circumstance
  7. Carol from Vista Financial

    Money, tax, mortgage question

    Hi @The Pom Queen CGT is not my field so can't really comment on it but can point you in this direction: https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/Dwellings,-structures-and-adjacent-land/ https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/ https://www.ato.gov.au/Calculators-and-tools/Capital-gains-tax-property-exemption-tool/ https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=CGTPET&anchor=CGTPET/questions#CGTPET/questions
  8. Carol from Vista Financial

    Getting a mortgage in Australia

    Thank you TPQ, very appreciated
  9. Carol from Vista Financial

    Current mortgage rates and special offers

    Hello hello I am back! Thanks @The Pom Queen Darwin was nice and toasty and Kakadu was lovely (except for all the mozzies!!). Back in little old Adelaide now, home sweet home. We had a noisy Christmas in July with my nephews and nieces so some quiet down time is on the cards for this weekend! Here are some updates while I have been away: - 3.99% 3 year fixed investment interest only - 3.99% variable investment principal and interest (introductory rate for first 2 years) - 3.59% variable owner occupied (introductory rate for first 2 years) Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions. Keep in mind these last two offers are intro rates only. I don't normally like them for a reason but for some they may be attractive. In a nutshell they are honeymoon rates and the revert rate is normally higher (by a fair bit) and overall they may not be cheaper over the full life of the loan. Some people only consider them if they like refinancing often or are easing into home loan repayments and want a bit of breathing space to begin with.... but always review it before you sign the contract and think ahead - two years is not long in the life of a mortgage. Read the fine print for any exit fees or clauses. MoneySmart is a great resource run by ASIC and one of my go-to websites, read more about different rate types here. You can also check out our handy honeymoon rate calculator to see the true cost and savings associated with honeymoon rate here. Research before you sign anything. On another note, some lenders have started to increase rates, review yours today while they are still low - if you can secure a set discount off the normal variable rate your discount usually applies for the life of the loan, so now is a good time to ask.... they will not offer! Have a great day
  10. Carol from Vista Financial

    Current mortgage rates and special offers

    Good morning, we're halfway there! Happy Friday Eve Eve. Here are some offers from our panel of lenders: - 3.98% 5 year fixed owner occupied principal and interest - First time buyers - up to 40% off selected Samsung products (from Samsung store) and $500 cashback if you spend $500 or more - 500,000 Velocity Frequent Flyer Points for home loans $1m and over - that's a return trip for two back to The Motherland (plus taxes - can't escape those!) All the above offers are still valid. Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions. Thanks all, please note I am jet-setting to Darwin to have Christmas in July with my family this weekend My next update will not be until I am back on the 25th July. If you have any questions I will get back to you as soon as I can otherwise @Andrew from Vista Financial may be able to help too. Don't miss me too much!
  11. Carol from Vista Financial

    Current mortgage rates and special offers

    Hello to all forum lurkers! Special shout out to you today! Here are some offers and other special policies from our lender panel that may be of interest: - 1 year fixed 3.58% owner occupied principal and interest - Fixed rate loan with 100% offset available - owner occupied or investment (normally fixed rates are not eligible for offset accounts, this lender allows it which is quite rare) - Maximum Loan to Value ratio of 98% including lenders mortgage insurance for owner occupied purchase (most lenders keep it under 95% these days) Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions. Have a great day all
  12. Carol from Vista Financial

    RBA cash rate decision 3 July 2018

    On hold again! "Nationwide measures of housing prices are little changed over the past six months. Conditions in the Sydney and Melbourne housing markets have eased, with prices declining in both markets. Housing credit growth has declined, with investor demand having slowed noticeably. Lending standards are tighter than they were a few years ago, with APRA's supervisory measures helping to contain the build-up of risk in household balance sheets. Some further tightening of lending standards by banks is possible, although the average mortgage interest rate on outstanding loans has been declining for some time." - Media release Statement by Philip Lowe, Governor: Monetary Policy Decision accessed 4 July 2018 Read the full release here: https://www.rba.gov.au/media-releases/2018/mr-18-16.html
  13. Carol from Vista Financial

    EOFY and interest only mortgages

    Here are a few points I wanted to make today in the mortgage space. EOFY End of financial year is the busiest and most stressful time in the financial world so if you have purchased property and waiting to settle make sure you have discussed adequate time frames with your lender/broker/conveyancer as things may be slower than usual. If you planned to settle before 1 July and have settlement is not already booked in it is unlikely to happen - so check! If you hope to settle just after EOFY, keep in mind any credit assessors will have a backlog of files to look at that they have pushed back so again, check to see you have been given realistic time frames. Interest only periods This topic is relevant at any time of the year. Many people will be shortly coming up to the end of their approved interest only periods, particularly on investment loans (if you have interest only on owner occupied, that is very rare these days!). It will be harder to extend or be granted new interest only periods than when you first applied, so be prepared and don't leave it until the last minute! Once upon a time you could have asked for up to 15 years interest only on investment properties... Had 10 and finishing? Well, back in the day it would be a quick call to the bank and here you go, here's another 5 years to keep you going. Sign on the dotted line, done. Gone are those days. If you have an interest only period then you need to be able to demonstrate you can repay the full debt, principal and interest, in the remaining term after your proposed interest only period expires (e.g. if you have 5 years interest only, can you repay the higher minimum payments required to pay the debt back to the bank over the 25 years left?). The funny thing, is that this requirement is just plain responsible lending, so is actually nothing new to the industry! A prudent lender/broker/banker should always ensure you are able to pay your debts without financial difficulty, now or in the future. Lenders are being more thorough in actually verifying this information now (that should always have been doing) since financial services regulator APRA (the Australian Prudential Regulation Authority) started putting their foot down by tightening requirements to evidence serviceability and by setting a speed limit on investor lending growth in 2014. This was in light of high levels of household debt, low interest rates and concerns over an overheating property market, particularly in Sydney and Melbourne. Banks steadily increased their rates on interest only as an incentive for people to switch to principal and interest (amongst other things some may say), the Banking Royal Commission brought further concerns out into the open, and here we are today. (There is a lot more to this story, but I that is for another post!) APRA has recently dialed back on its investor cap policy but overall the responsibility of lenders, brokers and bankers alike remains now highlighted- make sure people can afford what they are doing. It does not matter what role you are in or who you work for, it comes down to the integrity of the individual to be a responsible lender and to do the right thing. If you want to understand more about the interest only story, RBA's Assistant Governor (Financial Markets) Christopher Kent spoke to the Housing Industry Association in April this year, and his speech covers off a lot of aspects nicely. What you need to do No matter what rules are in place, what checks are made or what you are told you can afford on paper, you need to be sure you can afford to repay your debt and you are comfortable with how much your repayments are. Check your options with your lender well before the end of your interest only period as the conversion to paying principal and interest can be a rude awakening! If you can't afford them, options include requesting a lower interest rate to reduce overall repayments, or refinancing or requesting a loan term extension so you have more time to repay at lower repayments per month. Reach out and ask for help to navigate your options. It is tax time, and we all know sometimes this is the only time we speak to an accountant! So when you meet with them for your tax return, also ask them if having interest only on investment property loans is still a suitable strategy for you. Interest rates are a lot higher and things in your personal circumstance may be a lot different to when you first set up your loan(s) so make sure the structures in place are still relevant to you now.
  14. Carol from Vista Financial

    Current mortgage rates and special offers

    Good morning all! Half way through the week and the sun is out! This week's offers from our panel of lenders: - up to $1,000 rebate of conveyancing costs for first home buyers - 4.09% variable investment principal and interest Important: these are separate offers not in conjunction with each other and are subject to meeting lender terms and conditions. Previous specials are still applicable, but take note that some lenders are starting to end their specials on refinance cash back offers.
  15. Carol from Vista Financial

    Stamp duty buying in Victoria 189 visa

    Hi @maxia066 Just some further information for you... If you have PR and tick the other boxes for the first home owners scheme then yes you may be eligible. You can find all the criteria here: https://www.sro.vic.gov.au/first-home-owner In terms of hidden costs in purchasing I would always allow for the following: $1,000 for conveyancing $1,000 for bank fees $2,500-3,000 for pro-rate council rates/utilities (will vary on the purchase price and when you purchase in relation to the financial year) The first two are overestimated and are allowances at the end of the day, and you should aim to have enough funds to complete the purchase and ideally have a $2,000 buffer 'just in case' for any incidentals that are unforeseen. Better have more than less on the day of settlement! Understandably this may not be possible for everyone depending on your circumstance, but if you can it is ideal, just to be safe. Don't forget to factor in any moving costs, additional furniture, building and contents insurance, internet and phone connections etc. Sometimes it is the small things that catch you out... for example if you are purchasing a brand new build check that there are curtains installed! Sometimes they aren't part of the build and it can be a rude surprise in the mornings as you may miss it in the excitement with the rest of the house! If you are moving over in September then it will depend on your job, savings, circumstance and preference as to how soon you look to purchase. Renting for a while is not a bad idea so you get an idea of where exactly you would like to live. Once you are settled and ready to start looking it is best to get a pre-approval from a bank before you get serious, so you are able to look at properties in your price range, and avoid any disappointment. Pre-approvals are generally valid for 90 days so I guess once you realise you are keen to get things moving, best get this process started as will help you know what you can afford and narrow down your options. All the best!
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