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HomeBuilder Grant Extends Into 2021

The recent extension of the federal HomeBuilder Grant means that buyers can build the house of their dreams for less – but first, what do you need to know?  

HomeBuilder-Grant-Extends-Into-2021

As our nation is one of many to suffer from the economic fallout of the coronavirus, in turn the Australian economy has plunged into its first recession in almost thirty years. In an effort to minimise the damage, the government and Prime Minister Scott Morrison released a range of different grants earlier in the year to stimulate spending and keep our key sectors ticking over – one of which being the HomeBuilder Grant

Designed to keep the construction industry moving – which actually employs 1 in 10 Australians – HomeBuilder was announced on June 4, 2020. Along with tackling the predicted shortfall of new dwellings in the second half of 2020, the scheme was also designed to keep more people employed and to stop the building industry from collapsing. If applicants are able to meet the required criteria, they could pocket $25, 000 to go towards building a new home or undertaking significant renovations – so what do you need to know to access it?

Everything You Need To Know About The HomeBuilder Grant 

When it comes to building or buying a property, any monetary concession is usually a welcome one. The even better news? Depending on your individual circumstances, HomeBuilder can also be combined with other government funding such as the Regional Home Building Boost Grant or the First Home Owners Grant

If HomeBuilder sounds like something that may apply to you or perhaps spark your interest, then the key points to meet in terms of eligibility include the following:

  • You must not have previously received a HomeBuilder Grant in any state or territory of Australia
  • You must be at least 18 years of age (companies and trusts cannot apply)
  • You must be an Australian citizen at the time of application 
  • Your 2018-19 or 2019-20 annual taxable income must be below:
    • $125,000 for an individual
      or
    • $200,000 for a couple
  • You will be the registered owner on the title
  • The home will be your principal place of residence after completion or settlement
  • The contract is signed between 4 June 2020 and 31 December 2020 to:
    • buy an off-the plan or new home valued at $750,000 or less (including GST) and construction had not started before 4 June 2020
      or
    • build a new home where the build amount and the value of the land (including any existing structures) is $750,000 or less (including GST)
      or
    • substantially renovate an existing home, where
      • renovations cost between $150,000 and $750,000 (including GST)
        and
      • value of property (home and land before renovation) is less than $1.5 million.

However, with 2021 rapidly approaching and the global pandemic not showing signs of slowing down anytime soon – the Morrison government have extended HomeBuilder, but there are some noteworthy changes to pay attention to before you apply. 

HomeBuilder Grant 2021: What’s Changed 

If you’re in the position to potentially build a brand new home next year, then the good news is that the HomeBuilder Grant is still available to you. Unfortunately, there have been some amendments though, and applicants should be aware of some of the more significant changes to the scheme before they apply. The primary changes made to the HomeBuilder program include:

  • A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
  • An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
  • An extension to the construction commencement time frame from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
  • An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
    • The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
  • A change in licensing requirements and registration for builders and developers, as below
    • Where an eligible contract is signed on (or after) 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
    • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

Other than the above, the existing program criteria applies – meaning that the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.

Where To Learn More About The HomeBuilder Grant 

Whether it’s your first or tenth home, obtaining the finance to do so can be a time consuming and stressful exercise. The good news is that it doesn’t have to be, so do yourself a favour and get your pre-approval sorted before you dive down the property rabbit hole. 

Since their inception in 2012, Madd Loans have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun and educational – and he has a swag of awards to prove it. 

If thinking about navigating government grants, mortgages or even your overall financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Why And When You Need A Property Solicitor

Buying a house is one of the biggest purchases in your lifetime, so do you understand the fine print? If not, then you need the help of a property solicitor. 

Regardless of if it’s your first house or your tenth house, it’s important to understand and be engaged in the process – one tiny sentence in your contract of sale can dramatically alter the result that you’re anticipating. After all, terms that you interpret as being “fair” can actually be quite detrimental to you in the long term, and a property solicitor is crucial in ensuring that nothing gets missed or overlooked. 

What Does A Property Solicitor Do?

When it comes to buying a house, the services of a property solicitor are invaluable. Their role is to assist you with the settlement, contract of sale and title transfer of a property, ensuring that you meet all of your legal obligations, understand the terms that you’re signing up for, and to ultimately protect your interests during the duration of the transaction. 

One of the major benefits of utilizing a property solicitor is that they can significantly help you to navigate the wording involved in a contract of sale, so it’s important that they read all documentation before you sign it. Your property solicitor will be able to point out any unusual or disadvantageous terms in the contract, and if applicable – amend them accordingly. When it comes to purchasing property, their role is to fundamentally ensure that you know what you’re getting yourself into. 

Four Benefits Of Using A Property Solicitor 

They Speak Legal Lingo – Buying and selling property in Australia is complex, with the applicable laws differentiating between each state. At the end of the day, you’re ultimately hiring a professional to translate legal formalities that you may not quite understand.

Extensive Property Searches – A house may look good on the surface, but without property searches you may be taking on hidden surprises such as flooding, outstanding taxes or council rates, or unapproved structures or building amendments. 

Financial Know How – When purchasing a new property, most buyers will require a mortgage of some form. When dealing with a financial institute and a real estate agent, the contract of sale can be loaded with complex terms and conditions that need to be carefully checked. 

Amendments In Your Favour – Once your searches are finalised, a property solicitor can help you to negotiate or amend a contract of sale before settlement to ensure that it works in your favour, as minor surprises can also be used to barter on price. 

Where To Find A Property Solicitor In Brisbane 

George and the team at Madd Loans love referring their clients to other Brisbane based businesses, who they can see have a similar ethos and customer service ethic as Madd. 

If you are looking for a Brisbane based property solicitor, Madd happily recommends the services of John Drakos and the team at JDS Lawyers. Specialising in estates, commercial litigation, commercial and property law, John has been an invaluable asset to many Madd customers over the years and certainly knows his stuff. 

“You might be told that you’re signing a fair contract, but that may not necessarily be the case. There are many things that a buyer should be made aware of, such as special conditions or real estate agents making custom amendments to the contract. We ensure that the contract makes sense, and is corrected if required,” says John. 

“Buyers are often given a pile of disclosure documents which are loaded with information that nobody ever seems to read or understand. The role of a property solicitor is to ensure that buyers understand exactly what they’re getting themselves into before they sign.” 

Before committing to the services of a property solicitor, it’s important that you have a pre-approval loan under your belt. Otherwise, if thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Where To Buy In Brisbane In 2021

With the property market in the River City looking good in comparison to other Australian capitals, where to buy in Brisbane if you’re house hunting next year? 

From fires to floods to fevers, 2020 has certainly been one surprise after another for many Queenslanders – including those looking to buy or sell a home during this period. Housing growth has notably slowed down in the big hubs of Sydney and Melbourne thanks to both the global pandemic, overall affordability, tighter lending standards and weak wage growth. The good news? While things simmer down south, Brisbane looks to be picking up the slack. 

How The Brisbane Property Market Is Handling Covid-19 

It’s understandable that many homeowners (and buyers) have proceeded with caution in regards to the Queensland property market this year. However, record population growth continues to fuel demand for housing, with Brisbane leading the pack. 

While it varies from suburb to suburb – and between units and houses – the forecast shows that it’s actually Brisbane that will see the strongest national growth within the next three years, jumping 13% to a median property price of $620, 000. Queensland has now become the top  destination for internal migration within Australia, taking over from Victoria. Overseas migrants are also starting to see Brisbane as the place to be, bringing 12,847 residents into the city. With over 300 days of sunshine per year, where else would you rather be? 

The best performing Brisban suburbs in the last twelve months have been relatively close to the CBD. Indooroopilly has been a star performer, where the median house price increased by 24.1 percent to $1.01 million. Also on the list is Paddington, where the median house price rose 19.8 percent to $1,269, 500. However if you’re searching where to buy in Brisbane and this is slightly over your budget, where else is predicted to see strong growth?

Where To Buy In Brisbane For Strong Market Growth 

This time five years ago, buyers might have turned their noses up at these suburbs. However, as we all know 2020 is a whole new ball game, and when paired with cheap prices, a lack of supply and a confident market – the time is right for investors to move outside of the inner city ring. 

If you’re on the hunt for a new property in 2021, then insights from this year would be a good place to start educating yourself. According to RealEstate.com, Brisbane’s “Top 10 Suburbs To Buy Property In 2020” include the following – 

  1. Bridgeman Downs 
  2. Carina Heights
  3. Everton Park
  4. Ferny Grove
  5. Keperra
  6. Loganholme
  7. Mansfield 
  8. Oxley
  9. Stafford Heights
  10. Wynnum 

With all of the above special mentions conveniently located less than 15km from the CBD, the Brisbane property market is holding particularly strong for traditional three bedroom style properties that include land. With lifestyle and rapidly expanding infrastructure also big factors to consider, buyers are not afraid to head out into the suburbs to explore new growth opportunities for the not so distant future. 

Have You Got A Mortgage Pre-Approval Yet?

Before you head out house hunting, one of the best secret weapons that any buyer can have is a home loan pre-approval. Not only do you know your spending limits, but the stress and time that traditionally goes into organising one is already taken care of – and did we mention bargaining power?

If you’re on the hunt for a highly recommended mortgage broker in South East Queensland, or even some friendly and honest advice on where to buy in Brisbane, then it’s time that you met with George Samios and the team at Madd Loans

Since their inception in 2012, the team at Madd have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun, educational and stress free – and he has a swag of awards to prove it. 

An independent operator can be your greatest asset when it comes to navigating loan options, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.

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Why You Need A Building And Pest Inspection

When it comes to property, knowledge is power – and one of the best ways to educate yourself on the history of a home is through a building and pest inspection. 

Why-You-Need-A-Building-And-Pest-Inspection

While your dream home might look perfect from the outside and to your naked eye, a building and pest inspection can quickly uncover any potential issues with the structure of a property. If you’re informed about any upcoming or urgent issues with a home, you’re then able to make an informed and educated decision about how much you’re willing to part with for it. 

What A Building And Pest Inspection Covers

It’s imperative to make an offer on a property that’s subject to a building and pest approval, as failure to do so could risk you committing to a home that’s going to far exceed your budget (or stamina) in the long term – so what can a building and pest inspection potentially uncover?

Poor Renovations – In the era of “The Block” and “Ready, Set, Reno!” – many Aussies are taking on DIY home renovations that they may not be equipped or qualified to handle. If that new deck isn’t council approved either, it can also run into thousands of dollars to rectify. 

Water Damage – Brisbane and South East Queensland residents have had more than their fair share of floods over the years, so checking for water damage and potential mould issues that could affect the structure of a home is crucial. 

Poor Insulation – Should a home or property be poorly insulated or have insulation that’s been installed incorrectly, this can dramatically drive up the cost of your power bills to cope with the hot or cold swings. Sometimes it’s minor, other times it’s a large scale task to fix. 

Issues With The Foundation – The slab or foundation of a property, along with any stumping if applicable, can rapidly run into the thousands of dollars if it requires fixing. This is one of the more important checks to do, as it may not be visible to the naked eye. 

Potential Roof Replacements – A leaky roof could cause potential damage to a home’s structure, electrical and insulation. A building and pest inspector will check for any potential leaks, along with rust that could need fixing in future. 

Faulty Electrical Wiring – Not only can faulty or incorrectly installed electrical wiring be costly to fix, but if not spotted it can also be quite dangerous. A building and pest inspection will determine whether it meets the current building codes (or not). 

Potential Asbestos – Undetected asbestos is prevalent in many Queensland homes, and can pose significant health risks and lung diseases if disturbed by accident or during renovations. This is something that most people should know about before purchasing a property. 

Termites And Rodent Infestations – A termite infestation is one of the major checks done during a building and pest inspection, as once they take hold in a property’s structure, it can be extremely expensive and difficult to rectify. 

Where To Source A Building And Pest Inspection In Brisbane 

For all your building and pest inspection needs you can contact Andrew Teston at Resicert – We’ve been referring Andrew for over five years now because we know he does a great job. 

Andrew is a full service operation, and covers pre-purchase building and pest inspections, handover defect inspections, vendor inspections, builder warranty inspections, owner builder warranty inspections and pool condition inspections. He also provides a medley of other reports and compliance certificates that are usually required in order to obtain council approval. 

Before putting in offers for a home or property, one other essential that you should have in your artillery is a home loan pre-approval. If you’re on the hunt for a highly recommended mortgage broker in South East Queensland, or even some friendly and honest advice on the local Brisbane property market – then it’s time that you met with George Samios and the team at Madd Loans. 

Since their inception in 2012, the team at Madd have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun, educational and stress free – and he has a swag of awards to prove it. 

An independent operator can be your greatest asset when it comes to navigating loan options and offset accounts, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.

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Why You Need A Will At Any Age

Have you taken the time to secure the future of your assets? If not, it may be time to think about why you need a will at any age. 

Why-You-Need-A-Will-At-Any-Age

By definition, a will is classed as a crucial legal document that outlines your wishes regarding the distribution of your assets, property and dependents should anything happen that incapacitates you. If you don’t have one, there’s no way to guarantee what happens next in regards to settling your affairs. 

There’s a common misconception that wills are for the rich and famous, or those approaching the later stages of their life. The simple reality is that once you start investing your hard earned cash – even if it’s just a car – then a will is necessary if you want to have a say in who gets what when you die, especially if you have dependents like a partner or children. So why do you need a will, and what should they specifically outline?  

What Does A Will Cover 

While there is no particular age at which people need to have a will, anyone over the age of 18 can action one. If you don’t yet have a will in place, it’s important to know what they actually cover – and what you should make sure is included. 

Appoint An Executor – Your executor should be someone you trust who is capable of dealing with complex legal and financial financial matters, and liaise with industry professionals like lawyers and accountants. Despite popular opinion, an executor can also be a beneficiary. 

Funeral And Burial Wishes – You should advise in your will whether you wish to be buried or cremated, along with any specifics regarding your end of life celebration. If not, it will be left to your friends and family to decide on what you would have preferred. 

Guardians Of Dependents – The ongoing care of any existing children is a hugely important aspect of your will, particularly if you are a single parent. What qualifies as “dependents” varies from one person to another though, as this can also include pets. 

Trust Structures – If you have extensive assets or property, then it might be worth considering a trust set up for any minors that you wish to provide for. These can get tricky and need to be set up properly though, so you may wish to consult with a solicitor first. 

Asset Divisions – If you don’t have a clear document outlining who you intend on leaving your property or assets to, this is where family disputes can get particularly messy after a death or passing. Avoid the stress, and get your financial ducks in a row. 

Sentimental Items – A will is about far more than the “big” things. If you have family heirlooms or particularly sentimental items such as jewellery, ensure that they aren’t forgotten about in the legal document to ensure that they end up in the right hands. 

Donations – Not everybody is in the position to leave a charitable donation to a cause close to their heart, however if you intend on doing so – it needs to be documented appropriately. Some people prefer to include a donation as a part of their “legacy”. 

What Happens If You Don’t Have A Will

New research shows that only 48% of Australian adults have an active will in place. Of that 48% – 4% don’t actually want a will, but an alarming 14% don’t believe that they have enough assets to warrant one. 

If you don’t have an active will in place when you pass away in Australia, then control over your estate reverts to the Public Trustee under state intestacy laws. The laws provide a formula to determine which family members receive what share of your estate, with little to no wriggle room for negotiation. Each state and territory of Australia have different rules about what is classed as a person’s next of kin, and what portion of your estate they will inherit.

The only way to retain control over the distribution of your estate and to avoid being classed as “dying intestate” is – you guessed it – having an active and valid will in place. 

Where To Source Help With The Future Of Your Finances 

Since its inception in 2012, Madd Loans has helped over 1700 ordinary Australians obtain the finance they needed in order to get their dreams rolling. 

With the entire business built on referrals, the team at Madd have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queemsland’s Broker Of The Year” for four consecutive years. 

After working with a wealth of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service. Thus, in late 2019 – Madd Life was born. 

If you’re familiar with the Madd Loans brand, then it’s fair to say that you know the team’s captain George Samios. Relentless in his pursuit of gold quality customer service, George quickly spotted another way to best steer his clients towards their financial goals. 

“I’ve been in this industry now for ten years, and I really believe in the power of financial planning. If you don’t have an organised plan to achieve your financial dreams – they’ll never happen. What Madd Life essentially does is we aim to pull the goals out of your brain, and transform them into a road map.” 

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality. 

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What Happens To Your Mortgage When You Sell

Unsurprisingly, two thirds of home owners have a home loan in Australia – so what happens to your mortgage when you sell your house?  

What-Happens-To-Your-Mortgage-When-You-Sell-Your-House-1

How much you manage to sell your property for will determine how much of the funds need to go back to the bank. Before you accept an offer from a potential buyer, it’s important to understand how the mortgage process works. 

The Fundamentals Of How A Mortgages Work

When you take out a home loan, your lender places a mortgage on your property tied to your name – this appears on the property title, and means that the bank has a formal interest in the home or property. In the event that you’re unable to meet your repayments, the mortgage means that the bank can actually sell your property in order to recoup the costs and funds lent to you. 

However, when you sell and eventually no longer own a property – the lender also loses its right to sell it. In exchange for this, they expect to be repaid the money they’ve lent you, which is referred to as a mortgage discharge. This usually occurs before the settlement date with the new owners. 

Thankfully, the mortgage discharge  process is usually quite simple – you complete the designated discharge authority form, present it to your bank or solicitor, and then you simply wait. Once the final payout figure is decided and the loan is paid out, the mortgage contract is officially over and in turn, you can sell your property.

One major factor to note about this process is that when you’re terminating your loan arrangement, the banks have little to no incentive to process your discharge form quickly – after all, the longer it takes, the more interest they gain – so allow two to four weeks for this to be actioned. 

What Happens To Your Mortgage If You Sell For Less Than You Owe

When you sell your house at below the value of your outstanding mortgage, this less than ideal outcome is known as negative equity.

Unfortunately, it’s a risk when house prices are dropping – so if you bought a house at the top of the cycle and are in a position where you are required to sell it at less than the value, you’ll still need to make repayments at the same rate – with or without owning the property. 

In order to avoid this scenario, ensure that you do your market research. To reduce the risk of not being able to repay the mortgage and being forced to sell at less than the mortgage value, take care that any mortgages have a lower loan-to-value ratio of 90% as a safeguard. 

Even if you have managed to swing the figures in your favour, don’t forget about all of the applicable fees that are associated with selling a home. Just a handful of these include:

  • Your lender’s discharge request fee (usually between $250 to $500)
  • Break fees if you have a fixed interest rate on your home loan
  • Conveyancing or solicitor fees
  • Real estate agency marketing fees and commissions 
Where To Source Help With The Future Of Your Finances 

Since its inception in 2012, Madd Loans has helped over 1700 ordinary Australians obtain the finance they needed in order to get their dreams rolling. 

With the entire business built on referrals, the team at Madd have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queemsland’s Broker Of The Year” for four consecutive years. 

After working with a wealth of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service. Thus, in late 2019 – Madd Life was born. 

If you’re familiar with the Madd Loans brand, then it’s fair to say that you know the team’s captain George Samios. Relentless in his pursuit of gold quality customer service, George quickly spotted another way to best steer his clients towards their financial goals. 

“I’ve been in this industry now for ten years, and I really believe in the power of financial planning. If you don’t have an organised plan to achieve your financial dreams – they’ll never happen. What Madd Life essentially does is we aim to pull the goals out of your brain, and transform them into a road map.” 

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Why Now Could Be The Time To Fix Your Interest Rate

With extraordinary new lows not seen in over thirty years, is now the time to fix your interest rate? If you want to save in the long term – the answer is yes. 

Interest rates are market prices, which means they are a function of what is essentially supply and demand. There are both short term and long term factors that have driven interest rates lower on a global scale, all of which have in one way or another affected us here at home. 

Why Are The Interest Rates So Low In Australia?

In Australia, one of the shorter term domestic factors is weak consumption growth, which has largely been driven by very weak wages growth – translating as consumers who are burdened by very high levels of household debt, and people are reluctant to spend as they once might have done. 

Even before the arrival of Covid-19, our economy was already showing signs of slowing down. Over the past year and for a variety of reasons, economic growth in Australia has slumped. Exacerbated by the knock on effect of the pandemic, other contributing factors include ongoing trade wars, heightened political uncertainty in a number of countries and an insufficient amount of manufacturing activity.

As a result, the Reserve Bank Of Australia has continued to drop interest rates to record lows in an effort to keep our economy moving. With the big banks passing on these cuts to consumers, some fixed home loan rates now sit at below 2% – so is now the time to fix your interest rate?

What Is A Fixed Interest Rate? 

Choosing a fixed or variable interest rate for your home loan often comes down to how familiar you are with the interest rate cycle (or not). With the world feeling slightly more daunting than usual – particularly if it’s your first big foray into a large scale loan – you should be paying extra attention to your financial commitments, and ensuring that you’re taking advantage of these record low interest rates. 

When compared to a variable interest rate, or one that fluctuates along with global economies, fixed term interest rates can provide stability, certainty and security. In the past, many people have shied away from them and have taken the gamble of tying their mortgage repayments to a rate that could go up or down. 

The main benefit of a fixed rate home loan is that it gives you the certainty of knowing that your repayments won’t change over the fixed interest period, which is usually between one and five years. This way, you also know exactly what you’ll need to spend each month and can budget confidently. Should the interest rates rise, having a fixed rate loan means you won’t have to pay more – at least until your fixed term expires. This can make it a good choice if you think interest rates may be about to increase, or you’re concerned about making repayments if your interest rate does rise.

Is There Another Way To Fix Your Interest Rate?

Madd Loans owner George Samios believes that split loans offer the best of both worlds in the realm of interest rates. 

“There are pros and cons to fixed and variable loans, and that’s why we normally do offer a split loan option to our customers. My clients actually have both the offset account and redraw ability that comes with a variable loan, but they also have the security of a fixed loan.” 

Although there are no limits with how much consumers wish to allocate to each portion of the split loan – for example 60% fixed, 40% variable, etc – what you are essentially doing is distributing interest rate movements, as well as the relevant risks that may apply or be associated with each feature. It’s always worth talking to your broker to discuss in depth which option is the best fit for your individual circumstances. 

Want To Keep Talking Interest Rates?

Whether you’re an existing Madd Loans customer or not, when it comes to the world of interest rates George believes that every consumer should have access to a good deal. 

“Ultimately we are here to look after our customers – not the bank. We save our clients thousands of dollars every year by doing the leg work, and we can happily help people to renegotiate their current interest rate at no charge.”

If you think you might be paying too much or even just want a professional opinion, make an appointment today with the team at Madd Loans to see how we can get lower interest rates for you and your loan.

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Offset Accounts: How Do They Work, And Why You Need One

Offset accounts can be a confusing addition to any home loan or mortgage – but the good news is that when simplified, it doesn’t have to be. 

If you’re a homeowner with a mortgage, it’s pretty simple really – would you rather pay less interest on your home loan, or earn interest on the amount in your savings account? If the former is the option that sounds more appealing to you, then it might be time to consider looking into offset accounts. 

How Do Offset Accounts Work?

When set up properly, a well oiled offset account has the potential to save you thousands of dollars in interest – but how do they work?

Instead of storing any monetary savings you have in a separate bank account that earns interest, an offset account or a redraw facility is linked to your home loan. For example, if you have a home loan of $350, 000 that you are paying off – but $25, 000 in an offset account, then you would only be paying interest on $325, 000. Your loan repayments remain the same, but the payments come off the principal of the loan and not interest, ultimately saving consumers thousands of dollars over the lifetime of the loan. 

What Are The Benefits Of Having An Offset Account?

Save On Interest – When it comes to virtually any style of loan, nobody wants to pay any more money than they have to right? Offset accounts are one way to significantly reduce the amount of interest that you are paying to a bank. 

Pay Your Loan Faster – When making repayments on your home loan, you’re usually paying both the principal of the actual loan, plus interest. Offset amounts can make the loan technically “smaller”, offering borrowers a chance to pay their loan off faster. 

Potential Tax Benefits – Australians pay tax on any interest earned from a savings account or term deposit. If you have a large amount of savings, transferring this to an offset account is one way to reduce the amount of tax you’re paying. 

Flexibility – If you’re making voluntary contributions to your home loan without the function of an offset account or redraw facility, then you can’t access those funds or get them back in the event of an emergency – so an offset account provides an extra layer of both security and flexibility. 

Want To Learn More About Offset Accounts?

Offset accounts require a certain level of discipline if you hope to reap the benefits associated with having one – ideally, you shouldn’t be dipping into the savings regularly for example. It’s also worth noting that not all banks offer this option with their home loans, and if they do, some also add potentially higher interest rates or fees that consumers may not be aware of. Thankfully, this is where the services of a mortgage broker come in particularly helpful, as they are seasoned professionals when it comes to navigating the banking industry and what options work best for each client. 

If you’re on the hunt for a highly recommended mortgage broker in South East Queensland, or even some friendly and honest advice on where to buy in Brisbane, then it’s time that you met with George Samios and the team at Madd Loans

Since their inception in 2012, the team at Madd have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun, educational and stress free – and he has a swag of awards to prove it. 

An independent operator can be your greatest asset when it comes to navigating loan options and offset accounts, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.