Finance

Whilst it feels like this year hasn’t long begun, the end of financial year (30 June) fast approaches. With it many will focus on ensuring strategies relating to managing taxation outcomes and superannuation are implemented before the end of financial year arrives. However, for some the biggest strategy change could come in the new financial year as there are changes to the superannuation contribution rules from 1 July 2022. These changes could create new opportunities which may benefit you.

Mortgage

 

With house prices drifting higher to start the new year, trying to afford your dream home is getting harder.

Fortunately, there are a number of things you can do to maximise your borrowing capacity without needing to increase your income.

House

 

After a stellar 12 months where property prices rose 22.1 per cent across the country, the momentum is expected to continue into 2022.

The latest PropTrack Property Market Outlook 2022 from REA notes that some capital cities could see growth as high as 12 per cent, giving homeowners more gains to look forward to.

According to the report, homeowners in Hobart (9–12 per cent predicted growth), Brisbane (8–11 per cent), Adelaide (6–9 per cent) and Canberra (6–9 per cent) stand to be the big winners this year, as low interest rates and robust demand keep the housing market drifting higher.

REA Group’s Executive Manager of Economic Research, Cameron Kusher, said that some of the smaller capital cities are continuing to outperform at the moment.

Calculator

 

Lenders Mortgage Insurance can be a great tool to help homebuyers get into a property that they otherwise might not be able to afford. However, it comes with a cost.

LMI is a one-off insurance premium that is put in place to protect the lender in the event the borrower is unable to manage their repayments. For many loans, LMI can add a significant upfront cost.

LMI is normally applicable when a borrower is seeking to get a loan with an LVR of more than 80 per cent.