Search

Buy-now-pay-later causing problems | Aussies building world's biggest homes | Twelve Grains Capital

Record-low interest rates drive a surge in home loan activity

There has been a massive increase in home loan borrowing over the past year, according to the latest data from the Australian Bureau of Statistics. Australians took out $22.5 billion of mortgages in September – a 25.5% jump on the year before. That included increases of:

  • 33.8% for owner-occupiers

  • 4.2% for investors

There was also a massive increase in first home buyer activity among owner-occupiers. First home buyers took out 13,569 loans in September. That was not only up 45.5% on the year before, but was also the highest figure in 11 years. The surge in borrowing comes as no surprise – interest rates are at record-low levels. And with governments around Australia providing assistance for first home buyers, it’s no surprise to see so many younger buyers entering the market. Want to get into the market? We can help


Be careful with 'buy-now-pay-later' this holiday season

The use of buy-now-pay-later services is exploding – and causing some people financial harm. The number of active buy-now-pay-later (BNPL) accounts increased 38% and transactions jumped 90% between the 2017-18 and 2018-19 financial years, according to a report from ASIC. ASIC found that 21% of users who were surveyed had missed a payment in the previous 12 months. Another negative impact is the red flags it can raise during a home loan application. Banks and lenders that see BNPL on your banking statements get nervous about your savings and spending habits. Simply put, lenders might question your ability to budget and live within your means. All BNPL providers are not looked at the same when you apply for a home loan. Some have higher risk associated with the way they lend money and it can lead to more difficulty with a home loan application. If you’re going to use BNPL, treat it as a short-term loan that you pay back as quickly as possible.



Wondering how much first home buyers near you are paying?


In just a few seconds, you can find out some data about first home buyers in your suburb. Click this link, type in a postcode and you’ll discover the average profile of first home buyers who participated in the First Home Loan Deposit Scheme during the first six months of 2020. Looking at the national data, for 6,814 borrowers, the average profile was:

  • Age = 25-29

  • Household income = $91,000

  • Purchase price = $400,000

  • Loan-to-value ratio = 95%

  • Debt-to-income ratio = 4.3

Normally, when someone buys a property with a deposit of less than 20%, they have to pay lender’s mortgage insurance (LMI), which can cost thousands of dollars. But under the First Home Loan Deposit Scheme, the government acts as a guarantor, which allows eligible borrowers to put down a deposit of just 5% and avoid LMI. The First Home Loan Deposit scheme is open to only 20,000 first home buyers this financial year, with at least half the spots reserved for people who are building or buying new homes. Want to buy your first home? Get in touch


Australia snatches property crown from the US


You know how real estate is Australia’s national sport? Well, here’s some data that proves it. Australia has overtaken America as the country building the biggest houses in the world, according to a report from CommSec.


In the most recent annual results, the average size of newly-built homes was 235.8 square metres in Australia and 233.1sqm in the US. ACT residents built the biggest houses in the 2019-20 financial year, while Tasmanians built the smallest: Australians are building bigger houses today than in previous decades. New houses are 6% bigger than 20 years ago and 27% bigger than 30 years ago, according to the report.


Book a Free Appointment


Contact Us Twelve Grains Capital 319 Sussex St Sydney NSW 2000

Credit Representative Number 498878 P: 1800 807 620 | View Website

11 views0 comments

Copyright © 2021 | Twelve Grains Holdings Pty Ltd.

ACN 608 522 890 | CRN 498879 authorised under ACL 384704 and AFSL 453345

  • Facebook

Twelve Grains Holdings Pty Ltd. is a registered AFCA member number 60050 and MFAA member number 338802.

By accessing this website, you are agreeing to be bound by the restrictions set out below.

This website has been prepared by Twelve Grains Holdings Pty Ltd solely for information and may not be taken away, reproduced or redistributed to any other person. Information contained in this website is intended solely for your personal reference and is strictly confidential.

The delivery of this website does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. In addition, this website may not be used for the purpose of and does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction or under any circumstances in which such offer or invitation is unlawful or unauthorised or to any person to whom it is unlawful to make such offer or invitation.

This website contains forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expected, expressed or implied by these forward-looking statements.

Twelve Grains Holdings Pty Ltd shall not be liable for any loss whatsoever arising from any use of the information in this website.

Parties should seek professional advice if in doubt to ensure compliance with all applicable laws and regulations, which could vary depending on the specific features of the project undertaken.

This site is protected by reCAPTCHA and our Privacy Policy.

Finance Brokers | Mortgage Brokers | Twelve Grains Capital

Sydney, Australia

Brisbane, Melbourne, Gold Coast, Adelaide, Perth, Hobart

COMMERCIAL LOAN | HOME LOAN | BUSINESS LOAN

ASSET FINANCE | PERSONAL LOAN