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Five Hacks To Save For A House Deposit

Are you one of the thousands of Australians trying to save for a house deposit, but feel like you’re getting nowhere? It’s time to think outside of the box. 

While house prices have skyrocketed right around the nation, wages haven’t quite hit the same levels of growth. Even at the lowest quartile, the average sales price in Brisbane is still $850, 000 – which means you’d need to save $85, 000 for a 10% deposit, or a whopping $170, 000 for the ideal 20% deposit to avoid paying Lenders Mortgage Insurance. 

Five Hacks To Save For A House Deposit

As such, it’s easy to understand why many budding first home buyers often feel like trying to save for a house deposit is an uphill battle, especially while still paying for the basics like rent, food and fuel. Although there’s thousands of articles out there already, what are some not as well known ways to save for a house deposit 

How To Supercharge Your House Deposit 

In order to save meticulously for a home deposit, the reality is that not everybody is in the position to move back in with their parents. While sacrifices do generally need to be made when it comes to learning how to save for a house deposit, the good news is that there are plenty of other tactics to deploy when it comes to tweaking your lifestyle in order to achieve your financial goals. 

Consider A Guarantor – What if we told you that there was a way to purchase your first home with as little as 5% of a house deposit? If your situation allows it, consider opting for a guarantor loan. The major point of difference with this type of mortgage is that you’re co-signing with a selected guarantor – commonly a parent or guardian – and ultimately act as your financial backer in the event that you default. 

Check For Funding – Before you start the gruelling process of trying to save for a house, be sure to check for any government initiatives that could potentially fast track the process. New and rehashed schemes designed to help first home buyers were announced in the recent Federal Budget, with a handful including the First Home Loan Deposit Scheme, Family Home Guarantee, Regional Home Guarantee and the First Home Super Saver Scheme. 

Cut Down Your Debt – Public enemy number one of any attempt at savings is any existing debt already tied to your name. Although not a viable path for everyone, especially for people with HECS debts, banish any credit cards and pay down any existing “Buy Now, Pay Later” purchases. When that’s finalised, eliminate any opportunities for liabilities by cancelling these types of accounts, as they can limit your borrowing capacity when applying for a home loan. 

Automate Your Savings – In order to get approved for a home loan, all banks want to see a solid savings history. As such, be realistic with your saving goals, and start small if you have to – even $50 a week is better than nothing. Open an account that you can’t touch or transfer funds out of, such as a term deposit. Set goals with how much you want to save by, be accountable for the results, and watch your nest egg grow. 

Get A Side Hustle – While cutting down on your living expenses sometimes doesn’t leave much wriggle room for potential savings, increasing your income is an alternative that doesn’t necessarily equate to sucking all the fun out of your lifestyle. If you have a creative pursuit that can be turned into a side hustle – go for it. Even a few shifts a week as an Uber driver can go a long way, so try and think outside of the box and utilise your talents. 

For those exploring their options for their first property purchase and which initiatives could possibly help them do so, it’s important to get the right advice instead of making big decisions based on guesswork. 

As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them – but where do you find a decent mortgage broker?

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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 We Recommend Split Home Loans

For those unsure about choosing fixed or variable interest rates, split home loans offer the best of both worlds – and that’s exactly why we champion them. 

Recent interest rate rises have left many Australians feeling nervous, particularly those who have taken on loans larger than they would have liked as a means to keep up with our nation’s skyrocketing property prices. With inflation and the cost of living also soaring, the Reserve Bank of Australia was finally forced to make a move. 

Why We Recommend Split Home Loans

Most economists had expected the RBA to raise rates by 15 basis points at its May meeting, while a few had tipped a 40 basis point rate hike. A handful had even expected it to wait until June for its first move. However, the Reserve Bank caught everyone off-guard by lifting rates by 25 basis points, with multiple increases now expected by the end of the year.

While nobody can predict the future, homeowners have flocked to their lending providers in droves to fix their interest rates – but in the face of such uncertainty, is that really the answer? Instead, it’s worth considering your options linked to split home loans. 

Understanding How Split Home Loans Work

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. Although they traditionally sit slightly higher than variable options, fixed interest rates provide protection against fluctuating financial markets. 

The primary benefit of a fixed rate home loan is that it gives consumers the certainty of knowing that their repayments won’t change over the fixed interest period, which is usually between one and five years. Should the interest rates rise, having a fixed rate loan means no increase in mortgage repayments until the fixed term expires. 

However, it’s important to note that loan products with fixed rates rarely feature some of the best benefits of taking on a mortgage, such as access to an offset account or the ability to redraw, as well as limits on making extra repayments – but what if you could have access to the best of both worlds?

In simple terms, split home loans are mortgage products that are ‘split’ into multiple loans with different interest rates. One of the most common examples used in today’s market is a home loan that has a variable interest rate component, with the remaining amount linked to a fixed interest rate.

The fixed rate may allow borrowers to effectively manage the risk of interest rate fluctuations, while still taking advantage of potential rate cuts with the variable portion of their split home loan. While the exact amount you can split up varies between lending providers, generally there’s quite a bit of flexibility as to how much you allocate where i.e. 20% variable, 80% fixed. 

Madd Loans founder George Samios has been championing the benefits of split home loans for over a decade, and believes that there’s never been a better time to overhaul the average person’s home loan. Times are rapidly changing, but split home loans offer a conservative form of protection without sacrificing other tools that help your overall financial position.

“While we all know that there are pros and cons linked to both fixed and variable loans, split home loans offer a happy medium that many people don’t even know about. Many of 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, which is why we recommend opting for split home loans to get the best of both worlds.” 

If your home loan has been ticking along nicely for the last few years and you haven’t had it reviewed in a while, it’s a good idea to make an appointment with your lending institute or mortgage broker. We service our cars regularly, we conduct annual health checks at the doctor, but home loans don’t often get the same type of maintenance. 

Banks aren’t generally in the habit of rewarding loyalty with customer care, so if you’re curious if you could potentially benefit from the option of a split loan, it might be time to book a chat with George and the team at Madd. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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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Should You Build, Buy Or Renovate?

Are you a budding property baron weighing up whether to build, buy or renovate a home in 2022? While each has their perks, it’s important to do your research.

Should You Build, Buy Or Renovate

In Australia, our rich and colourful property market means that investors have plenty of choice when it comes to getting the best bang for their buck. In contrast, the same also applies for owner occupiers, particularly in relation to how they go about bringing their equivalent of the perfect home to life.

However, there’s no doubt that we all live in a very different economic landscape when compared to even just two years ago. While large-scale influences include a developing war in Europe and a once in a generation health crisis, on the home front we’ve also been battling with supply shortages, the rising cost of living and a very competitive property market.

As such, choosing to buy, build or renovate a home has been on the minds of many Australians, particularly given the ever changing conditions linked to each option. While the best choice will often boil down to your own individual circumstances, what factors should homeowners consider before settling on a winner?

The Case For Buy vs Build vs Renovate 

Firstly, the best option to choose from between buying, building or renovating will almost always depend on your personal circumstances. Factors often include how much time, funds and patience you have to navigate each process, and what your long term goals are. 

It’s also worth remembering that a property investor with a large portfolio isn’t going to have the same priorities or vision as a young family on the hunt for their forever home or a first home buyer. Keeping this in mind, let’s assess the key points of difference between each path.

Unless you’ve been living under a rock, the property market has been dominating the headlines right around Australia. With a widely anticipated cash rate hike announced in the middle of an election campaign, many industry experts are predicting that the era of the seller’s market is finally over.

However, buying property in Brisbane is unlikely to be as exposed to market fluctuations as we’ve seen in the likes of Sydney and Melbourne. With the river city’s median house price currently sitting close to $850, 000, we haven’t been subjected to the significant drops and lower clearance rates that our southern neighbours are beginning to experience. Depending on your suburb and dwelling of choice, buying will always be a viable path despite market fluctuations. After all, the great thing about buying in Brisbane is that there’s quite literally something for everyone. 

For those considering building, it might be a different story. Combined with several federal and state government incentives plus the early release of superannuation, the onset of the pandemic saw the Australian construction industry arguably experience too much of a good thing. 

As a result, homes are now taking twice as long to build due to increased demand, timeline blowouts thanks to ongoing lockdowns, and the building materials shortage that the entire world is currently grappling with.These delays have only been compounded thanks to the upcoming 2032 Brisbane Olympics, and recent batches of wild weather that have seen the demand for tradies soar. 

For builders, the materials shortage also means higher costs for the limited access to materials. This is then compounded by pandemic related shipping and transit delays, and by the time the builder finally gets his or her hands on the goods, they may already be liable to pay daily fees for not completing jobs by the contracted date. For clients, the frustration is further aggravated by having to unexpectedly fork out for rental costs if their home is unlivable. 

As a happy medium, thousands of Queenslanders have opted to renovate. While this process often allows you to stay in your own home while the work gets underway, renovating also provides an opportunity to modernise a space, craft it to something more in like with your personal taste, and also provides a great opportunity to boost a property’s value. In fact, 2021 saw one in three Australians renovate their homes with an average spend of $26, 000 per project. 

For investors or owner occupiers looking to complete a renovation as a means to boost a potential sale price in the future, the golden rule with most home renovation projects is to avoid overcapitalisation. If you have spent $200, 000 on renos, but only made a $100, 000 profit in the event of a sale, then your home renovation will have effectively cost you money instead of making it. Instead, experts recommend spending 10% of your current property’s value as a safe approach. 

Regardless of whether you opt to buy, build or renovate, each option usually calls for a trip to your local mortgage broker to carefully assess which option is best suited to your current financial position, and what your long term goals are – but where do you find one?

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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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How Long Does A Pre Approval Last

The timing linked to a property sale can be a stressful period, especially if it involves accessing finance – so how long does a pre approval last?

Finance clauses in a contract of sale can be one of the biggest hurdles that stands between you and your dream home. Thankfully, obtaining the all important pre approval for a home loan is well within the control of a buyer, and is a process that’s almost always recommended in the current property landscape.

How Long Does A Pre Approval Last

For first home buyers who are unfamiliar with the concept, pe-approved finance – otherwise known as a pre approval or a conditional approval for a home loan – is mutual understanding between a lender and a borrower. A pre approval is when the lender indicates that they are willing to lend the borrower up to a certain amount of money to fund the purchase of a property, ensuring that buyers have the capacity to make offers with confidence. 

What Do Buyers Need To Get A Pre Approval

If you’re about to embark on your first foray into home ownership, it’s worth paying a visit to a mortgage broker. When applying for a pre approval, a lending institute needs to get a clear picture of your overall financial position, and whether they deem you to be a worthy mortgage candidate or not. 

Pre approvals can take anywhere between a few days and several weeks to generate an outcome.  As a general rule, the more complex your finances are, and the busier your chosen bank or lender is, the longer the process will take. If your application is incomplete, or your lender requires additional information about your financial position, then the process could take longer while the extra paperwork is processed.

Although each bank has a slightly different application process and relevant criteria that needs to be met, most will generally need to see documentation such as photo identification, bank statements, proof of savings, lists of assets and existing debts, proof of income, and a breakdown of your current living expenses. As they can compare multiple lending providers, mortgage brokers are able to help steer you in the right direction and ‘package’ your application to a loan product that best meets your needs.

Many first home buyers are often curious on how long does a pre approval last, and the good news is that once granted, a pre-approval is usually valid for around two to three months. After a pre approval expires, it is likely that you will need to present up-to-date documentation about your financial position, and start the application process again. 

Why It’s Important To Get A Pre Approval 

Imagine this: you’ve found your dream home and you’ve made an offer, only for the contract to fall flat thanks to your inability to get finance. This sadly happens all too often, particularly for first home buyers who may not have the experience in navigating the world of real estate.

Ultimately, making offers whilst armed with a pre approval doesn’t just give buyers a newfound sense of confidence, but it also helps to ensure that sellers take any offers made seriously. In addition, a pre approval gives buyers a set budget to work with, ensuring that they don’t get caught up with properties that they may not be able to afford. 

In today’s highly competitive market, pre approvals can also shorten the settlement period in a contract of sale, meaning that buyers can get into their new homes faster. Finance clauses are one of the most influential factors in a contract of sale, and sellers may be more likely to pursue buyers who already have their funds sorted. 

While pre approvals certainly do have advantages, it’s still important to keep in mind that pre-approved finance does not guarantee that a lender will lend you money to purchase a home, and is not the same as getting full, unconditional approval for finance. 


As a general rule, pre approval is subject to certain conditions, one of which will often be that final approval is “subject to a satisfactory valuation”. What this translates to is that the lender will want to get a sense of the value of the property and how much you’ve offered for it, in order to decide if the loan is too risky and not a type of dwelling that they are willing to bet on. 

As such, If you’re new to the world of pre approvals, your first stop should be a trip to your local mortgage broker – but where do you find one?

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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.

XXX

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First Home Super Saver Scheme Updates

With new updates for the First Home Super Saver Scheme coming into effect from July 1, it’s never been more important for first home buyers to stay in the loop.

Although using superannuation to purchase property has been in the headlines in line with the upcoming election, it’s worth remembering that there’s more than one way to legally use your super to get a foot on the property ladder. 

First Home Super Saver Scheme Updates

While house prices have skyrocketed right around the nation, wages haven’t quite hit the same levels of growth. Even at the lowest quartile, the average sales price in Brisbane is still $850, 000 – which means you’d need to save $85, 000 for a 10% deposit, or a whopping $170, 000 for the ideal 20% deposit to avoid paying Lenders Mortgage Insurance. 

As such, one can only imagine how long it would take to save up a six figure deposit while still paying rent, and other day to day expenses. If saving up to pay the mortgage deposit is one of the biggest hurdles that first home buyers face, what if there was an alternative? Enter, the First Home Super Saver Scheme. 

How The First Home Super Saver Scheme Works 

For those unfamiliar with the concept, the First Home Super Saver Scheme (FHSSS) was introduced as a means to help Australians boost their savings for a first home, by allowing them to build a deposit inside their superannuation account. 

First introduced in the 2017-2018 Federal Budget as a means to reduce pressure on housing affordability, the FHSSS applies to voluntary superannuation contributions made from 1 July 2017. Although it’s been around for over five years, it’s not as straightforward as other federal initiatives, which has more or less spooked some first home buyers from using the FHSSS as a means to save, while also benefiting from a tax cut. 

First home buyers can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for a first home of up to $15, 000 per financial year. 

However, there’s also been some updates to the First Home Super Saver Scheme as a reflection of the times. Now, the scheme has been expanded to allow eligible first home buyers to release up to $50, 000 of their superannuation to purchase a home, up from the previous cap of $30, 000.

It would seem that the Federal Government has also noted the technical difficulties first home buyers faced when navigating the FHSSS, and have made amendments to allow greater flexibility for those accessing the scheme. As such, a handful of these additional changes include – 

  • Increasing the discretion of the Commissioner of Taxation to amend and revoke FHSSS requests. 
  • Allowing individuals to withdraw or amend their requests prior to them receiving a FHSSS amount, and allowing those who withdraw their request to re-apply for FHSSS releases in the future. 
  • Allowing the Commissioner to return the released FHSSS money to super funds, provided that the money has not yet been released to the individual. 
  • Clarifying that the money returned to super funds is treated as funds’ non-assessable non-exempt income and does not count towards the individual’s contribution caps.

These amendments are announced to come into effect from 1 July 2022, while also permitting retrospective application from 1 July 2018. 

For those exploring their options for their first property purchase and which initiatives could possibly help them do so, it’s important to get the right advice instead of making big decisions based on guesswork. 

As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for your first mortgage, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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.

XXX

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Should You Wait To Buy Property?

In the world of real estate, timing is everything – but with rising interest rates and a predicted market crash, is waiting to buy property really a good idea?

Unless you’ve been living under a rock, the property market has been dominating the headlines right around Australia. With a widely anticipated cash rate hike announced in the middle of an election campaign, many industry experts are predicting that the golden age of real estate is over.

Should You Wait To Buy Property

However, that depends on which camp you identify with. For sellers, unprecedented property prices that have surged over the past two years were warmly welcomed. While buyers have had access to a range of grants and low interest rates, the skyrocketing prices meant that home ownership had become out of reach. With the market predicted to crash or at the very least see prices fall over the next few months, is it a good idea to sit tight and wait for a cheaper deal?

The Case For Buying Now Or Later 

Determining whether you should proceed with a property purchase now or wait for prices to start to fall will all depend on your personal circumstances. In addition, there are a number of outside variables to consider as well. 

Firstly, it’s always a good idea to look to the past before making decisions about the future. In the last twelve months alone, Brisbane property prices have increased by a whopping 30%. As a surprise leader in the property market, we’ve managed to outstrip our southern neighbours in Sydney and Melbourne, who trail behind with 20% and 27% growth. 

While the latter two capital cities are already bearing the brunt of falling property prices, Brisbane is seemingly holding steady. Queenslanders have some pretty exciting developments on the cards, especially in relation to the upcoming 2032 Brisbane Olympics. Huge amounts of money is being invested in underground tunnels, infrastructure, highways, light rail and even casinos. 


As such, it should come as no surprise that buying in Brisbane is regarded as one of the safer bets when compared to other capital cities, as it is unlikely to be exposed to such radical pricing swings. However, there are also a number of other variables that are arguably outside the control of the average buyer, and are worthy of your consideration when weighing up whether to buy now or later. 

Almost every economist in the country is saying to expect further interest rate rises. Traditionally, the higher interest rates go, the more property prices fall. This is because they have the potential to cause mortgage stress and even cause more properties to return to the market, which in turn will help to alleviate the lack of supply Australia has been grappling with. Keep in mind this is also in addition to the rising cost of living, higher fuel prices, and even the uncertainty linked to the unfolding war in Europe.

If you’re hoping to see cheaper houses before entering the market as a buyer, there is one crucial component to remember – buying is investing in your own future, especially if the alternative is renting. As an example, if a tenant were to rent a property right here in Seven Hills for $850 per week, over fifty two weeks, that adds up to over $44, 000 over the course of a year. If calculated over a ten year period, it’s almost half a million dollars that’s been spent paying off someone else’s asset, when it could have been yours. 

For those weighing up whether buying property now or later is the best choice, it’s important to get the right advice instead of making big decisions based on guesswork. As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for a mortgage or are about to be, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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.

XXX

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Why A Building and Pest Report Is A Must

While investing in a building and pest report is crucial if you want to avoid buying a lemon, did you know that they can also be a valuable bargaining tool?

Why A Building and Pest Report Is A Must

As many homeowners already know, buying any property always comes with a wide range of fees, applications, and warning signs. Any seasoned property baron knows that knowledge is power when it comes to avoiding a potential misstep, However there’s a minefield of hidden costs to consider when purchasing a home – particularly for first home buyers.

Given that most members of this cohort have already spent months meticulously saving up for a deposit, it can be incredibly disheartening if you run into further financial setbacks or unwanted surprises. When it comes to investing in the right types of inspections, investing in a building and pest report has long been regarded as the big one. 

How A Building And Pest Report Can Save You Money

As a buyer, it’s important to protect yourself against any potential structural issues with the property that may be invisible from the outside, along with any hazardous pest or termite infestations. 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. 


Typically, a building and pest report usually costs anywhere between $500 and $1000 in Queensland, depending on how in depth you want the report to be. Not only do they protect first home buyers from potentially purchasing a lemon, but they’re also a great negotiation tactic and even have the power to save buyers thousands of dollars on a new property purchase. In fact, some of the most common ways to leverage a building and pest report include the following. 

Termite Infestations – Termites love moisture and timber, so many older Queenslander homes present the perfect buffet for these incredibly destructive creatures. However, a termite infestation – past or present – is often invisible to the naked eye, which is when a building and pest inspection can be a lifesaver. However, even if there are termites present, it’s worth getting a quote to see how much replacing the timber will cost. Vendors are likely already aware of the problem, and may be incredibly flexible when it comes to negotiating a lower price. 

Structural Integrity – Brisbane 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. 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. Similar to termites, vendors may already be aware of any big costs linked to fixing structural repairs of a property, and may knock a significant chunk off the asking price if a buyer is willing to fix it themselves. 

Building Code Requirements – Thanks to an overload of home renovation television programs and too much time stuck at home, many Aussies have taken on DIY home renovations that they may not be equipped to handle. In addition, renovations that were undertaken without the supervision of a qualified tradesperson may not be safe, let alone have the right types of council approval required. A building and pest inspection can help to ensure the measurements and installation are all correct, and determine what is worth bargaining on or walking away from. 

For buyers making their debut into the world of real estate, it’s important to get the right advice instead of making big decisions based on guesswork. As of September 2021, mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If you’re thinking about applying for a mortgage or are about to be, then it’s worth getting in touch with the professionals. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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.

XXX

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Home Renovation Finance Explained

If you’re thinking about giving your property a facelift but are unsure on how to fund it, then exploring your options for home renovation finance is a must. 

By its very definition, to renovate is to refresh, reinvigorate or restore. As such, the spectrum is huge when it comes to applying this term to property, and can include anything and everything from a fresh coat of paint to installing a brand new kitchen. 

Home Renovation Finance Explained

Once upon a time, home renovations were predominantly embraced by owner occupiers looking to give their abode’s quality a modern boost. These days, the process of undertaking a renovation can also be a very effective means to increase the value of their property, and to ultimately present the home in question in the best possible light to potential buyers. 

No matter which end of the renovation spectrum you identify with, the simple fact of the matter is that the attached price tag is something that needs to be considered before you pick up a power tool. Thankfully, there’s many avenues to explore when it comes to home renovation finance. 

Seven Home Renovation Finance Methods To Choose From 

Like it or not, the average renovation budget blows out by 80%, and the average slippage on timeline is a whopping twenty months. To minimise your exposure to these unexpected surprises, make an in depth budget from day one, track it as you go, and above all – stick to it.

Once you’ve carefully calculated your expected spending, it’s time to navigate your options for home renovation finance. While there’s no perfect “one size fits all” solution, the ideal path to take will usually boil down to your individual set of circumstances. 

Use Your Equity – Equity is the difference between your home’s value and your loan amount, or the funds that you have already paid back to the bank including your deposit. All lenders have different terms in regards to how and when you can access your equity, with some offering access to it after as little as six months. 

Construction Loans – Construction loans are specifically designed for people looking to build their own home from scratch, or those who intend on undertaking significant renovations. For those looking to access home renovation finance to pay tradies and other outsourced labour, construction loans are a great way to minimise your exposure to risk. 

Personal Loans – If you’re hesitant about touching any existing savings or any equity already safely tucked away in your property, then personal loans can be an alternative if your renovation project sits right in the middle between minor and major. Although interest rates are usually higher, there’s often unsecured and secured loan products to choose from. 

Refinance Your Mortgage – When done well, refinancing your existing home loan offers a wide range of potential benefits to borrowers, such as securing a more favourable interest rate, changing loan terms to fixed or variable interest rates, gaining access to home equity, consolidating existing debt, and even access to extra funds for home renovation finance. 

Line Of Credit – Ideal for ongoing or long-term renovations, establishing a line of credit revolving loan involves access to funds whenever you want up to your approved limit. Homeowners only pay interest on the funds used and as you pay off your balance, you can re-borrow the unused funds without reapplying. 

Offset Account – In simple terms, the basic function of an offset account is to use up to 100% of the balance of a linked transaction account to “offset” – or effectively reduce – the portion of your home loan that is accruing interest. Think of the funds in an offset account as savings that doesn’t accrue interest, but instead saves you interest due on your existing home loan. 

Redraw Facility – In a nutshell, a home loan redraw facility gives homeowners the opportunity to access any extra repayments that they may have made on particular types of loans. However, using this as a form of home renovation finance only applies if you have already been making extra repayments on your mortgage. 

One of the most important aspects involved with the practice of renovating for a profit is to avoid overcapitalisation. If you have spent $200,000 on the renovation itself, but only made a $100,000 profit on the bottom line of a sale contract, then your home renovation will have effectively cost you money instead of making it. 

Instead, experts indicate that you should allow 10% of your property value for your renovation budgets. However, if navigating your options for home renovation finance and how to best balance your other financial commitments is giving you a headache, then it may be worth considering a chat with the professionals. 

Partnering With The Home Renovation Finance Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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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A Beginner’s Guide To Offset Accounts

What if we told you that there was a way to pay less on interest while still saving money? Needless to say, offset accounts can be worth their weight in gold. 

A Beginner’s Guide To Offset Accounts

With homeowners around the nation feeling nervous about rising interest rates, it’s only natural that many have started researching ways to pay less on what feels like an unavoidable expense. Even an increase of 1% can see repayments lift by hundreds of dollars each month – a prospect nobody relishes. 

However, offset accounts are proving to be an increasingly popular way to pay less interest on an existing home loan. While lending providers and mortgage brokers often tout this feature as one of the key “bells and whistles” that separate loan products, not all home loans offer such a feature. When properly deployed, a well oiled offset account has the potential to save homeowners thousands of dollars in repayments, but what’s the catch?

Understanding How Offset Accounts Work 

In simple terms, the aim of the offset accounts game is to use up to 100% of the balance of a linked transaction account to “offset” – or effectively reduce – the portion of your home loan that is accruing interest. As an example, if you currently had a mortgage with a balance of $350, 000 owing, but also had $50, 000 in a linked 100% offset account – you would only pay interest on $300, 000 of your balance. 

Thus, instead of having that $50, 000 earning interest in a separate savings account, by placing it in a linked offset account to your mortgage, it’s a means to pay less interest on an existing mortgage. While the loan repayments remain the same, the payments come off the principal of the loan and not interest, ultimately saving consumers thousands of dollars over the lifetime of their mortgage. 

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. In addition, 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 also an effective way to reduce the amount of tax you’re paying – an opportunity almost everyone would happily jump at. 

If you’re unfamiliar with the concept of offset accounts, there are two primary formats available in Australia. A 100% offset account “offsets” the interest rate payable on the mortgage, by the full balance of the account. This option may be available for both variable or fixed home loan rates, but ultimately depends on your lending provider, their products and their policies.

In comparison, partial offset accounts only offsets your mortgage by a portion of the offset account balance. What this means is that the higher the percentage of the offset account, the more consumers can save in interest on their mortgages. An example of this at work is if you had a loan of $350, 000 with $50, 000 in a linked 50% offset account, you would only pay interest on $325, 000 of your balance. As a general rule, this setup is more common for fixed rate home loans.

If you’re feeling anxious about how future interest rate rises will potentially affect you or how you could best leverage an offset account, it’s a good idea to make an appointment with your lending provider or mortgage broker. In simple terms, a home loan health check is a free discussion or “check up” aimed at fine tuning all the complexities involved with your current mortgage, and can allow consumers to explore their options linked to offset accounts. 

Partnering With The Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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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The Mortgage Broker Vs Bank Debate

While the ‘mortgage broker vs bank’ conundrum is an age-old debate that isn’t going away anytime soon, it’s important to understand their key differences. 

The Mortgage Broker Vs Bank Debate

Since purchasing a home is generally not an everyday purchase for the average Australian, obtaining finance is arguably the biggest hurdle that a prospective homeowner has to face. Unless the buyer in question has recently won the lottery, this usually means taking a trip to the bank in the hopes of obtaining a home loan.

However, that process has changed in recent years, with the services of a mortgage broker now providing an alternative to the traditional bricks and mortar lending providers. While the two industries certainly have more similarities than differences, what’s the better choice when comparing a mortgage broker vs bank?

Comparing Mortgage Brokers And Banks For Finance

Australians have a reputation for being loyal creatures, so it should come as no surprise that the first stop for many prospective homeowners is a trip to their everyday banking institute. Approaching a bank for a home loan can work to your advantage if you have a good credit history and if you are in a stable financial situation, as banks big and small will often deem you to be an ideal loan candidate and the type of person they want to do business with. 

Unfortunately, what this process also translates to is that buyers only receive information about their specific bank’s range of products – which ultimately may not be the most suitable fit for them. In addition, self employed applicants, sole income households, applicants with smaller deposits and even someone who missed a phone bill payment in 2016 may have a much harder time getting approved for a home loan when applying directly through a bank. For a growing number of Aussies, partnering with a mortgage broker provides a solution. 

In simple terms, the role of a mortgage broker is to act as an intermediary, or someone who navigates home loan products and their applicable terms on behalf of individuals or businesses. They serve as the ‘middleman’ between the lender and the borrower and handle the time-consuming process of securing the loan and gathering the considerable paperwork involved. 

When comparing a mortgage broker vs bank, it’s important to remember that their key point of difference is that a mortgage broker has access to a wide variety of home loan options, and it is quite literally their job to find you the best match to suit your individual circumstances – they work for you, and not the banks. 

Even applicants with a spotless credit history and strong “on paper” credentials can benefit from the services of a mortgage broker, as they’re able to help customers explore all the options. In addition, “packaging” your application is where a mortgage broker really shines. There is never a one size fits all approach with a mortgage broker, as they know what works and what doesn’t, and how it varies between each lending provider. 

Trying to juggle work, social and home life around bank appointments has the potential to add extra stress to a home loan application. Mortgage brokers are all too aware of this, and instead apply a level of flexibility when it comes to ensuring that they’re on call and available for their clients, even if that means outside of business hours. This is often a wildly different approach to what consumers can expect from a bank, and the added convenience of only having to submit one set of documents also helps to push mortgage brokers as the ideal choice between the two. 

However, one common reason that consumers stick with a bank that they’ve used all of their life is security – after all, they’re unlikely to go bust anytime soon. The thing is though, banks are not obliged to ensure that your interest rates are competitive, and are generally not renowned for rewarding loyalty. If you partner with a reputable mortgage broker with the right credentials, it’s not uncommon to keep them in your finance arsenal for future transactions, as they’re already familiar with your personal circumstances and long term goals. 

As of September 2021,  mortgage brokers wrote 67% of all residential home loans in Australia – the highest number ever recorded. What’s more is that 90% of these customers reported that they were happy with the services provided to them. If the feedback is that good and over two thirds of the nation’s home buyers are using the services of a mortgage broker, the winner of the debate between mortgage broker vs bank is pretty clear. 

Partnering With Home Loan Professionals 

Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.

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.