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Why House Prices Are Set To Drop

Depending on where you are in the property market, whispers of falling house prices will either fill you with joy or dread – but what’s triggering this change?

Why House Prices Are Set To Drop

While the past twelve months have not been so great for the average first home buyer, sellers have had extremely favourable conditions to work with. In 2021, capital city buyers across the nation forked out an average of $1,066,133 to buy a house, surpassing the million dollar mark for the first time in history. 

This astonishing figure represents an annual increase of 25.2% and a quarterly rise of 6.5%, with the latter demonstrating that the market bounced back in a big way at the end of the year following months of uncertainty linked to ongoing lockdowns and travel restrictions. 

Although what goes up must eventually come down, house prices are stalling at a faster rate that anyone initially predicted. While the property market hasn’t quite hit its peak in regional areas of Australia, all factors are pointing to a downturn in house prices in the not so distant future, particularly for Sydney and Melbourne. 

Australia’s Property Market Is Finally Set To Cool Down 

On average, Australia experienced a whopping 22% increase in house prices over the course of  2021 – the strongest annual growth since 1989. However, according to Westpac, skyrocketing property rates are predicted to stall across the nation by May and even drop by the end of the year, with the bank predicting that house prices will drop by 2% across the country for the whole of 2022. 

However, it’s worth noting that these reductions were not expected to happen until the RBA increased the cash rate. While this is yet to happen, house prices have begun to drop anyway. With buyers reaching the limits of what they can afford, banks reducing how much they will lend, and more properties being listed for sale, Sydney and Melbourne are leading the pack with falling house prices before the market has seen a single change to interest rates. 

While Australian home prices rose an average of 0.7% in March 2022, house prices in these two major cities actually fell by 0.2% and 0.1% respectively, with their growth rates in the March quarter lagging well behind other capital cities. Although the figures aren’t astronomical drops, industry experts are marking them as the beginning of the end of the Australian property boom.

One way or another, there is a limit to how much buyers can afford to pay. According to Gareth Aird, the head of Australian Economics for the Commonwealth Bank, house prices have dropped due to the budgets of buyers being stretched to their maximum. 

“The evidence is pretty clear. Although prices have peaked in the two biggest capital cities, affordability has become stretched because prices have gone up so much. There is a limit to how high they can go, and you can’t continue to grow indefinitely – that affordability picture has kicked in earlier in Sydney and Melbourne.”

However, there is one state in particular that is bucking this trend: Queensland. While this may not mean good news for everyone, annual price growth in Brisbane alone is now sitting at just under 30%, with particularly strong gains noted for standalone dwellings and top tier properties. Brisbane’s western suburbs originally led the pack, but regional areas further away from the CBD such as Ipswich, the Gold Coast and the Sunshine Coast are the locations keeping the momentum going. 

Overall, falling house prices will be linked to the tightening of lending criteria, increased interest rates, decreased affordability, international borders reopening, and the ongoing construction boom. As such, if you’re in the market to buy this year, it’s worth partnering with the professionals who can help you navigate the ever changing property market – but where do you find them?

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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Why You Need Financial Planning To Buy Property

While there’s a myth that financial planning is a service exclusive to the mega wealthy, did you know that it can form the blueprint to build your dream home?

Why You Need Financial Planning To Buy Property

Most people find themselves contacting a financial planner or adviser for one of three reasons – they need help with making a blueprint for their financial future, they don’t want to deal with their financial future, or while they might like managing their own money, the impartial and objective third party opinion could be of value to them. 

Before you actively seek financial advice from a qualified professional, it’s important to have a firm vision on what you hope to get out of the process. While this often depends on your stage of life, how much money you have or owe, and what you’re trying to achieve, a growing number of Australians are using financial planning to build wealth through property. 

How Financial Planning Can Help With Real Estate

Whether we like it or not, the state of our finances form an integral role in how we transition between the many phases of our life. Even the most successful people often acknowledge that they couldn’t have hit their goals without the help of a professional, and financial planning is the perfect tool to help everyday Australians take a big picture approach to their finances. 

There are many reasons as to why the average Australian would want to start investing in property. For some, it’s about building a financial safety net and enjoying a comfortable retirement, while for others it’s an attractive way to lower their tax obligations. No matter where you are on your real estate journey, the help of a financial planning expert can be invaluable. 

Guiding First Home Buyers – Purchasing your first home can be an extremely daunting experience, but the good news is that with solid financial planning, it doesn’t have to be. Experts in this field help first home buyers to understand where their money goes, but can also provide guidance on saving up for a deposit. Once settled in, financial planning can also allow first home buyers to expand into purchasing a second investment property. 

Building Your Dream Home – Regardless of whether you’re looking to capitalise on one of the many federal and state building initiatives, or are simply a growing family and ready to bring your version of your “forever” home to life, financial planning is important if you want to avoid potentially costly headaches along the way. If you already own property, a financial planner may help you to explore all of your options to potentially keep it as a rental while building. 

Expanding Your Investments – Long considered to be one of the safest long term investment strategies, building a property portfolio is the ultimate goal for many Australian homeowners, especially once they’re financially secure and have a firm grasp on their first mortgage. A financial planner can help you crunch the numbers to identify good investment opportunities for both high yields and tax breaks, and advise caution when required. 

Transitioning To Retirement – As a homeowner, you might be considering downsizing your abode for a variety of reasons: it could be to boost your finances, reduce your expenses, to move into a more suitable home, a better location or you might even just want to take advantage of the current property boom. A financial planner will help you form a game plan for a safe and secure future, while helping you navigate the rules linked to tax and superannuation. 

If you’re already sold on the idea of investing in financial planning to conquer the world of real estate, the next step for many Aussies is to partner with a good mortgage broker. As an alternative to dealing directly with the big banks, mortgage brokers serve as the ‘middleman’ between a lender and a borrower, and handle the time-consuming process of securing the loan and gathering the considerable paperwork involved. 

Therefore, it should come as no surprise that six in ten Australians are now working with a mortgage broker for help in navigating the world of home loans – but what if we told you that there was a one stop shop to combine the services of a mortgage broker and a financial planner?

Partner With The Real Estate Finance Experts

Getting on top of your finances and finding the right home loan has long been regarded as stressful, frustrating and time consuming – but 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.

Relentless in their pursuit of gold star customer service, the team at Madd have now expanded their services to include end to end financial planning. Through Madd Life, the aim is to collaborate with clients to identify long term goals, 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 proudly work together as a collective to turn your goals into reality.

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How First Home Buyers Can Leverage LMI

While lenders mortgage insurance – also known as LMI – has long received a bad wrap from first home buyers, what if you could leverage it to your advantage?

How First Home Buyers Can Leverage LMI

Although many first home buyers may feel a glimmer of hope at the prospect of Labor being back in power, it doesn’t look like there will be any sweeping reforms to housing just yet. As such, many are turning their attention back towards the uphill battle of saving up enough funds to foot the bill for a house deposit. 

As most already know, the consequences of not having the full 20% deposit for a mortgage is being hit with lenders mortgage insurance. Otherwise known as LMI, this is a long standing policy enforced by banks to protect themselves in the event that a home loan isn’t repaid or a lendee defaults. 

Often painted in a negative light and something that most first home buyers should actively avoid, does paying LMI always spell bad news for first home buyers, or is there a way to use it to your advantage instead?

The Pros And Cons Of LMI For First Home Buyers 

First introduced in Australia in 1965, Lenders Mortgage Insurance – or otherwise known as LMI – was designed to encourage more Australians to enter the housing market, while still allowing the lender to protect themselves in the event that a client defaulted on their home loan. 

Typically, LMI is compulsory for all mortgage applicants if they don’t have a 20% deposit saved up to buy a house. Given that the median house price for Brisbane is now roughly $850, 000, without the option of Lenders Mortgage Insurance, buyers would be expected to save a whopping $170, 000 at the very least to purchase a property. 

This figure is simply unobtainable for many, especially first home owners looking to get their foot on the property ladder. The cost of living certainly isn’t getting any easier, so if your options are spending a decade or more saving for a house deposit or simply opting to pay LMI, the latter is a trend on the rise.

Calculated on a sliding scale, an example of LMI at work is that if you were looking at a property at $500, 000 with a 10% deposit ($50, 000) – expect your LMI bill to be around $8, 000. While it sounds like a lot and is usually the first of many home loan fees that have a tendency to fill first home buyers with dread, LMI can also enable access to a mortgage with as little as 5% to get into the market faster, and simply gets added to the balance of your mortgage.

According to Madd Loans founder George Samios, skyrocketing house prices means that paying Lenders Mortgage Insurance doesn’t have the same stigma as it once did. 

“While nobody likes paying any more on bills than they absolutely have to, paying LMI doesn’t have to be a bad thing. The golden rule to remember with all things property related is that repaying a home loan that includes LMI will still put you ahead in ten years time when compared to the prospect of paying rent. If $5, 000 worth of LMI is all that stands between you and a home loan, it’s a no brainer when compared to forking out $15, 000 just a year’s worth of rent.”

However, it’s worth keeping in mind that there are more options available to first home buyers who would prefer not to pay Lenders Mortgage Insurance. If your circumstances allow it, consider the path of a guarantor home loan. Although the exact terms and conditions vary between lenders, some require the buyers using guarantor home loans to have a minimum 5% deposit, while others will allow the buyer to borrow up to 105% of the purchase price of the property. 

In addition, be sure to double check if you qualify for any existing government grants or funding as a first home buyer. Although these may change in line with the new government, options currently include the First Home Loan Deposit Scheme, the Family Home Guarantee, or the First Home Super Saver Scheme. These federal schemes have all been introduced to make purchasing your first home easier, so it’s worth exploring these options if you meet the eligibility criteria. 

For first home buyers not quite ready to purchase property in the immediate future, it’s also worth considering newer schemes that are set to be unveiled in full over the next few months. For those in favour of a treechange, keep an eye on updates for Labor’s new Regional First Home Buyer Support Scheme commencing in January 2023, or even the shared equity Help To Buy scheme. 

If you’re struggling to make a game plan on how to make your foray into home ownership, then the good news is that there’s always help available for those who know where to find it. To avoid making big financial decisions based on guesswork, it’s always 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.

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Unpacking The Family Home Guarantee

For those wondering if a single parent home loan scheme actually exists, the arrival of the Family Home Guarantee is set to be nothing short of revolutionary. 

Did you know that there are currently over one million sole parent families in Australia? While this figure represents roughly 15% of all households, almost 80% of these families are disproportionately being raised by single mothers. 

Unpacking The Family Home Guarantee (1)

Amongst other things, single mums are on the backfoot when it comes to purchasing property. A recent analysis conducted by Finder revealed on average, men retire with 26% more super than women. To make up for this discrepancy, the average woman would have to supplement an extra $236 per month into their super, or alternatively work for an extra eleven years.

In addition, women are likely to have less money in savings. With $38, 932, the average man has 83% more money in savings than the average woman – a difference that has increased from 71% just twelve months ago. It’s figures like these that have no doubt spurred the Federal Government into action, and although the Family Home Guarantee isn’t exclusive to women, they are the demographic that will arguably benefit the most from it. 

How The Family Home Guarantee Works

Although the concept of a single parent home loan scheme may have once sounded absurd, the introduction of the Family Home Guarantee is set to bridge the gap between those who may have completely written off the prospect of property ownership. 

The newly introduced Family Home Guarantee will allow eligible participants to build or purchase an existing home with a deposit of as little as 2%, and isn’t restricted to first home buyers. In order for applicants to avoid paying Lenders Mortgage Insurance, the government essentially acts as a ‘guarantor’ to back the remaining percentage of the deposit, which can be as high as 18%. 

For a $500, 000 property, what this single parent home loan scheme means is that sole parent families can purchase property with as little as $10, 000. While 10, 000 Family Home Guarantees will be made available over four financial years from 1 July 2021 to 30 June 2025 – or 2,500 spots per year – applicants will still need to prove their ability to comfortably pay back a mortgage on their own and to meet the criteria of individual lending providers. 

To qualify for the Family Home Guarantee, the key criteria that applicants need to meet is that they must be a single parent with at least one dependent child, and must have a taxable income that does not exceed $125, 000 per annum for the previous financial year. For a property to be eligible under the Family Home Guarantee, it must be a residential property. This term has a particular meaning, and is consistent with the First Home Loan Deposit Scheme.

For single mums and dads exploring their options for purchasing property, it’s important to get the right advice instead of making big decisions based on guesswork. A savvy mortgage broker has an in-depth knowledge not just of financial products, but can also give valuable guidance on whether an applicant is eligible for other government grants or funding as well. 

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.

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Four Reasons To Buy A Townhouse

We’re often told that standalone homes are the best purchase as an investment – but is that still the case? Buy a townhouse, and you might just disagree. 

Four Reasons To Buy A Townhouse

Even if you identify as an owner occupier, most people purchase a specific property fully aware that it’s often the biggest investment of their lives. After all, anything that costs more than six figures is an asset, and the aim of the game is to ensure that it rewards your investment further down the track in the years to come.

As a general rule, established homes are generally more likely to have their own land, which can provide huge boosts in value. They also have better scope for negotiation on price, and further value can be added through renovation, subdivision or development.

However, they certainly don’t come cheap, and standalone properties that are very old will prevent you from claiming many depreciation benefits, and will attract lower rental yields and higher maintenance costs. While the alternative has long been an apartment, this type of dwelling attracts fees of its own linked to body corporate, and can be risky for long term growth – but are there really only two choices? Not anymore. 

How Townhouses Are Shaping The Future Of Property 

Today, many property professionals would argue that we’re living in the era of the townhouse. As a happy medium between a house and an apartment, these types of abodes are on the rise for retirees downsizing, first home buyers breaking into the market, and even families who are trying to live within their means. 

Townhouses are typically a style of multi-floor home that share one to two walls with adjacent properties, but have their own entrances and often feature courtyards or small gardens. In the suburbs, townhouses are often uniform homes built in a distinct community that might have its own homeowners association – but why should you buy a townhouse?

Access To The City – As a general rule, the closer you get to a city’s central business district, the more expensive property gets. People don’t really want to spend every day in their home – they like to get out and about. Green space, good restaurants, being close to work and access to public transport have all become important factors, and townhouses are often built in areas that have access to all of these appealing factors. 

Lower Maintenance – It’s always worth remembering that while bigger properties often sound ideal, they also come with larger requirements linked to ongoing maintenance for their upkeep. While older properties are usually more affordable, their age alone means that buyers should expect to take on more work to fix them up. As most townhouses are built in the last two decades and are smaller, it means less investment on keeping them in tip top shape. 

Cheaper Entry Point – One of the primary attractions for those looking to buy a townhouse is that they are often significantly cheaper than a standalone property. While apartments may be even more affordable, townhouses offer the best of both worlds, such as access to a garden or courtyard, while still being positioned in a sought after suburb or location. For investors, they are also a safer bet for generating a profit with less debt. 

Multiple Markets – For investors weighing up whether to buy a townhouse or not, it’s worth remembering that these types of dwellings appeal to a wide pool of potential tenants, and even future buyers. Townhouses appeal to young families looking for more space while retaining their lifestyle, while they’re also suitable for retirees in the process of downsizing. Either way, townhouses are blowing the concept of a three bedroom brick home out of the water. 

If you’re looking to buy a townhouse that will pay for itself in the years to come, it’s all about selecting the right type of property. Look for something appealing or rare about the townhouse that other properties may not offer, such as a second carport, a larger courtyard, less adjoining walls or larger living spaces. One or more of these additions will add something special to the dwelling, and make it stand out in the future for both buyers and renters alike. 

For those exploring their options for purchasing property, it’s important to get the right advice instead of making big decisions based on guesswork. A savvy mortgage broker has an in-depth knowledge not just of financial products, but many also have property portfolios of their own to boot. 

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.

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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.

XXX

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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.

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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.