Super v Mortgage? Where should you put surplus cash?
The last 18 months have highlighted the importance of future-proofing your financial security. But if you’re lucky enough to have a little cash left in the bank at the end of each month, working out the best place to put it can be confusing.
Aside from depositing it into a savings account, most of us will choose to pay down our home loan or top up our superannuation.
For individual homeowners, a mortgage is often their single largest source of debt and has the greatest effect on their finances, and their ability to stay solvent through wage decreases or wage losses. For lenders, mortgages are typically the most significant asset on their retail banking book, which means that any changes in originations, repayment schedules, and default rates will have significant impacts on their profitability and liquidity.
Great news for those still looking to build with the announcement on 29 November that the HomeBuilder scheme, which provides grants for home builders and renovators has been extended to 31 March 2021. The extension is expected to see a further 15,000 construction projects under the scheme.
Heard about the Australian Government’s new HomeBuilder grant scheme, but not sure if you qualify or fully understand what it means for you?
To help, we’ve pulled together answers to some of the most frequently asked questions about the scheme, so you can work out if you qualify.
What is it?
HomeBuilder is a time-limited, tax-free grant program intended to help the residential construction market get through the Coronavirus pandemic. If you're building or renovating your home, you can receive a grant of $25,000 under the scheme.
Heard about the Australian Government’s new first home buyer deposit scheme, but not sure if you qualify or completely understand what it means for you? To help you, we’ve pulled together a brief overview of the Scheme and provided some useful links to help you on your way to home ownership a little more quickly.
City, suburb, north, south, east or west, so many decisions? We obviously think west is best and that Modeina has everything a busy lifestyle requires with future schools, transport, shopping, an abundance of nature, all within a short distance. And with the knowledge that you’re choosing a community that has been designed and developed by a trusted leader in the Australian property industry, the Dennis Family Corporation.
Saving for that deposit can sometimes be the hardest step. But it’s not impossible, especially with a little restraint and determination!
Here’s a couple of tips to help you on your way.
TIP 1 CREATE A SPECIAL ACCOUNT FOR YOUR HOME DEPOSIT
Work out how much you can afford to put away each payday. A direct transfer out of your everyday account into a special home account and you might not even notice it is gone.
Where to next, it’s important to establish your budget. When working out your budget you’ll need to factor in extra costs such as conveyancing, taxes, duties and fees.
We recommend that you contact your bank or a mortgage broker to find the right type of loan to suit your needs. Once again, our team can help you out with recommending a mortgage broker that’ll be able to step you through the financing process and applying for a home loan.