Results Home Loans

October 2023 Update

What’s been going on this month?

Stay current with Results Home Loans and any updates in the market

Rate Movements

As of October 2023, RBA keeps rate steady yet again

As of 07 June 2023, RBA lifts rates by +0.25 bringing Cash Rate to 4.10%.

RBA Cash Rate in October 2013 was 2.50%.

CURRENT INTEREST RATES FOR HOME OWNERS

Based on a $500,000 loan over a 30 year term at 80% LVR with Principal and Interest repayments.

CURRENT INTEREST RATES FOR INVESTORS

Based on a $500,000 loan over a 30 year term at 80% LVR with Interest Only repayments.

Lender Turnaround Times

As at 23/10/2023

First Home Owners Grant

vs

First Home Buyers Scheme

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the First Home Buyer Duty Reduction

First Home Owner Grant (FHOG):

The Victorian FHOG is a one-time, lump-sum payment offered by the Victorian government to eligible first-time homebuyers who purchase or build a new home in Victoria, Australia.

The grant is designed to assist first-time homebuyers in entering the property market by providing financial support.

Eligibility criteria typically include:

being an Australian citizen or permanent resident
and intending to live in the property as your primary residence
Being at least 18 years old.
Never having received the FHOG before.
In Victoria, the FHOG typically applied to new residential properties, which were homes that had not been previously occupied or sold as residential dwellings.

The grant amount and specific eligibility criteria can vary depending on the timing of your application, the property’s value, and other factors.

For new homes in metropolitan Melbourne if the contract was signed on or after July 1, 2017: The FHOG is $10,000.

The property value threshold for new homes in metropolitan Melbourne the threshold is set at $750,000.

For new homes in regional Victoria if the contract was signed on or after July 1, 2017: The FHOG is $20,000.
The property value threshold for new homes in regional Victoria, the threshold is set at $600,000.

First Home Loan Deposit Scheme (FHLDS):

The First Home Loan Deposit Scheme is a federal government initiative designed to help eligible first-time homebuyers purchase a home with a smaller deposit, typically as low as 5% of the property’s value, without having to pay for Lenders Mortgage Insurance (LMI).

Unlike the FHOG, which is a grant, the FHLDS is more of a guarantee. It allows eligible buyers to access a home loan with a lower deposit by guaranteeing the additional portion required for a 20% deposit, effectively helping them avoid the cost of LMI.

Eligibility criteria for the FHLDS include:

Income thresholds: income thresholds for singles and couples in Victoria as follows:
- Singles: Maximum income threshold $125,000 per year.
- Couples: Maximum combined income threshold $200,000 per year.
property price caps,
being a first-time homebuyer.
location of property and other factors.

The FHLDS is a federal program, so it is not specific to Victoria but applies to eligible buyers across Australia.

It’s crucial to note that these programs are subject to change, and their terms and conditions may have evolved since my last update in September 2021.

Case study

Overcoming Complex Property Zoning, & Title Structure Challenges

The primary challenge centered on a residential property occupying approximately 10 acres of land where the existing residential building lacked the required permits, creating complications for its inclusion in the valuation process.

Adding to the complexity, the property title included four individuals: our client, their partner, and both of the client’s parents. Although only two individuals intended to be on the loan, the client’s parents were contributing approximately $500,000 in funds and would eventually be added to the title. Most lenders expressed hesitation due to the intricate title structure and the parents’ role in the transaction, particularly since they would not be acting as family guarantees.

The Solution

After understanding the scenario we conducted a thorough review of various lenders’ policies and criteria, identifying potential partners who could accommodate the unconventional property and title arrangement.

After careful research and discussions with multiple lenders, CBA emerged as a viable partner willing to explore solutions tailored to our client’s unique circumstances. CBA’s willingness to understand and accommodate the complexities of the situation made them a strong candidate.

Results

CBA agreed to consider the property’s land value, even though the residential building lacked proper permits. This flexible approach provided a feasible financing solution for our client.

By leveraging our industry knowledge and partnering with CBA, we successfully navigated zoning restrictions, unpermitted structures, a multi-party title arrangement, and valuation concerns to secure a favorable outcome for our client.

E Signing Loan Documents

Electronic signatures (e-signatures) offer several benefits when used on loan documents:

Convenience: E-signatures allow borrowers to sign loan documents from anywhere with an internet connection, eliminating the need for in-person visits to a bank or lending institution. This convenience is especially beneficial for remote or busy individuals.

Time Savings: E-signatures can significantly reduce the time it takes to complete the loan application and approval process. Borrowers can sign documents immediately, speeding up the overall transaction.

Reduced Paperwork: Traditional paper-based loan applications involve a substantial amount of paperwork. E-signatures streamline the process by digitizing documents, reducing the need for physical paperwork and filing.

Security: E-signature platforms often employ advanced security measures, including encryption and authentication, to ensure the integrity and authenticity of the signed documents. This can enhance the overall security of the loan process.

The acceptance of e-signatures can vary depending on the lender’s policies and the type of loan. Some lenders have fully embraced digital processes, while others may still require physical signatures or have specific requirements for e-signatures.

When your clients are approaching a fast-approaching settlement, we prioritize lenders who embrace E-signatures for their loan documents. This streamlined approach significantly expedites the settlement process, ensuring a swift and efficient outcome.

Here are some lenders who have now fully embraced e signatures:

Bendigo Bank
Suncorp
ANZ
CBA
Bankwest
ING
ME Bank
Bank of Melbourne
BankSA
St.George

Thank You!

The value of a strong network and reliable partnerships cannot be overstated, and your referrals have not only brought us new business opportunities but have also reinforced the belief that we are on the right path to providing exceptional products and services to our customers.

So we wanted to take a moment to express our deepest appreciation for the outstanding support and collaboration we have received from you as our referral partner.

Your willingness to recommend our company to your own network speaks volumes about the trust you place in us, and we are honored to have earned such trust.

We truly appreciate the effort you put into every referral. Please know that we are always here to reciprocate your kindness and support. Should you ever require assistance or need a reliable partner for any venture, please don't hesitate to reach out to us.