What is the average length of a home loan?

Many Australians start out with a 30-year mortgage, though shorter and longer home loan terms are also available from some lenders. The length of your home loan can affect the cost of your repayments, as well as how much interest you’ll pay.

Which banks have hiked savings account and term deposit rates in December 2022?

Australians hoping to save more money in the new year may welcome the news that many banks are raising interest rates on savings accounts and term deposits. And with even more rate hikes forecast for 2023, it may become even easier for Australians to earn interest on their savings.

Can I get a car loan if I am on disability benefit?

Not every lender will accept pensions or government benefits as income when assessing loan applications, though some lenders will. Borrowers on disability benefits can still apply for a car loan, though it’s important to calculate if you can comfortably afford the loan before you apply. 

Investing in serviced apartments

Buying an investment property can let you benefit from both rental yields and capital growth, though there’s always a risk that there could be periods where your property fails to attract tenants. Investing in serviced apartments could potentially help to offset this risk, as someone else will be managing the tenants for you, though there are other complications to consider.

What is a specialist lender?

Specialist lenders, also known as non-conforming lenders, are lenders that offer mortgages to ‘non-vanilla’ borrowers who struggle to get finance at mainstream banks. This may include borrowers who are self-employed, in casual employment or new to Australia, as well as borrowers with bad credit.

What is a drawdown?

Transferring money from a lending institution to a borrower is also known as “drawing down”. In a typical home loan, the funds are drawn down all at once to buy the property. In a construction loan, the money is drawn down in several stages to pay the builders as they progress through each phase of the project. In a line of credit loan, you can draw down money, up to a limit, based on your loan’s available equity. 

How do you pay tax on term deposits?

Just like your regular income, the interest you earn on term deposits is taxable. You should pay tax on any interest that you have received within the current financial year. For example, if you receive monthly interest payments, these payments should be claimed on your tax return. However, if your term deposit is longer than one year and you will only receive interest at maturity, then you will pay tax on your interest in the year that you receive it. 

Can you put a deposit on a car to hold it?

Some car dealers ask for deposits; others don’t. It’s up to individual car dealers to decide whether to promise to hold on to cars in exchange for deposits.

Can you borrow extra on your mortgage for furniture?

It may be possible to borrow extra money on your home loan to help pay for furniture. However, this could mean paying more interest on your mortgage, potentially blowing out the cost of furnishing your home.

Can I change jobs while I am applying for a home loan?

Many lenders require you to be in a permanent job with the same employer for at least six months before applying for a home loan. If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your application’s chances of approval. But contacting the lender as soon as you know your employment situation is changing may allow you to come to an agreement.