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NT Government's New Housing Grant Scheme

Tue, 01 Oct 2024 00:49:19 GMT

Understand the NT Government's new housing grant scheme

Applications for the NT Government new housing grant scheme are now open. Understand what grants are on offer, eligibility, and how you can apply.

What grants are available?

There are three different grants available under the new HomeGrown Territory and Fresh Start New Home programs, ranging from $10,000 to $50,000. These include both first home buyers and existing home owners.

Buying or building a new home - HomeGrown Territory

The HomeGrown Territory Grant offers $50,000 for first-home buyers to put towards building or buying their first home. This grant replaces the $10,000 First Home Owner Grant.

Buying an established home - HomeGrown Territory

The HomeGrown Territory Grant extends the First Home Owner Grant to $10,000 for first-home buyers to put towards the purchase of an established home.

There is no cap on the build or purchase price.

Existing home owners - FreshStart New Home

The FreshStart New Home Grant o ffers $30,000 to buy or build a new home.

Eligibility and how you can apply

Our Easy Loans brokers are here to guide you every step of the way, providing support in understanding your eligibility for the housing grant scheme and the necessary steps to apply. Whether you have questions or need assistance navigating the process, we’re committed to making it as simple and stress-free as possible.

Why your credit score is important

Fri, 21 Oct 2022 01:16:10 GMT

What is a credit score and why does it matter when taking out a loan?

Think about your credit score a little bit like a rating for an Uber driver or Airbnb. It’s based on your borrowing and repayment history, and is a crucial consideration for banks when you apply for a loan.

Your score is determined by credit bureaus in Australia. They use a range of information to give you a credit score, generally between 0 and 1200. This number can differ between agencies.

In the future, your credit score will help other banks and lenders determine whether or not to give you a loan. They use your credit score, alongside their own criteria, to decide if they should lend you money, how much and at what interest rate.

How is my credit score calculated?

To calculate your score, agencies look at a variety of things including:

Past and present debt, and any problems you might have had repaying those debts. It’s important to note that this also includes AfterPay and other buy now pay later schemes.
Loans and loan enquiries, such as home loans, car loans and personal loads. Agencies will also look at whether you're a guarantor for anyone.
Your credit history including your current credit limit, the type of credit you’ve apple for and your repayment history
Credit applications - a high number of applications are often looked at unfavourably by bureaus.

How can I improve my credit score?

There are lots of different ways you can start building your credit score.

Have a credit card - Strangely enough, having no debt won’t actually give you a higher credit score. What will, is showing that you have the ability to manage debt by making on time and accurate repayments.
Pay existing loans and debts on time.
Pay bills on time, such as utilities.
Review your credit report and fix any mistakes - you can find out how to access your credit report in the next section of this blog.
Only apply for new credit when necessary - frequent applications will lower your score, so do research online and talk to lenders or a broker before formally applying. This helps to ensure you know what you want.
Keep your rarely used cards - Once your credit is paid off, you might think about closing your account. Keep it open because this will positively impact your score.
Lower the limits on your credit card if you don’t get close to reaching the cap.
Build up your savings - this is important because it shows that you have buffer savings if you need it, and also shows that you have the ability to pay on time.

How do I check my credit score?

To find out what your credit score is, you’ll need to contact a credit reporting bureau. These bureaus are obligated to give you access to your consumer credit report for free once every three months. You can also request a free copy if you’ve been refused credit within the last 90 days, or if your credit-related personal information has been corrected.

You can request a copy of your credit report from any credit reporting bodies, however we generally recommend Equifax as it's the largest in Australia.

If you need help navigating the world of credit scores and loans, a member of our team is always happy to answer any questions you may have.

First Home Guarantee Scheme

Tue, 23 Aug 2022 21:57:39 GMT

Thinking about buying your first home, but not sure how you're going to be able to afford it? You're not alone. People right across the country are feeling the pressure when trying to save for a house, and it can be hard to imagine actually getting your foot in the housing market door.

First Home Guarantee Scheme (FHBG)

The First Home Guarantee (FHBG) is an Australian Government initiative that aims to support first home buyers in purchasing a home sooner. This is a part of the Government's wider Home Guarantee Scheme.

The scheme allows you to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

Not sure what Lenders Mortgage Insurance is?

Generally you will need to put down a deposit of at least 20% of the property's full price to secure it. If you don't have 20%, it's still possible to purchase a house but you will need to pay what's called Lenders Mortgage Insurance (LMI). This protects the bank against the risk of you not being able to meet loan repayments.

LMI is a huge added cost to buying a home, in some cases adding tens of thousands of dollars onto your loan.

Eligibility for First Home Guarantee Scheme

To be eligible for the First Home Guarantee Scheme, you need to meet the following criteria. You must be:

Applying as an individual or couple (married or defacto)
An Australian citizen
At least 18 years of age
Earn an annual salary of less than $125,000 if you're an individual buyer, and less than $200,000 combined if you're buying as a couple
Planning to live in the house as an owner-occupier, and not use it as an investment property
Purchasing a home for the first home

Types of properties and price thresholds

Under the scheme, eligible residential properties include:

an existing home, townhouse or apartment
a house and land package
land and a separate contract to build a home
an off-the-plan apartment or townhouse

There are also price caps for properties. In the Northern Territory the price cap is $600,000.

How to apply

To apply for this scheme and start your home ownership journey, get in touch with our team of Home Loan Specialists and we can walk you through the process. We'll work with you to assess your eligibility before making the application on your behalf.

There are only 35,000 places available for the First Home Guarantee Scheme, so if you're thinking about buying your first home, we recommend getting in quick.

Everything you need to know about personal loans

Tue, 23 Aug 2022 21:57:12 GMT

A personal loan is a great way to help you pay for something if you don't have the funds upfront. We're here to break down personal loans, from how they work to what you can use them for and how to apply.

How do personal loans work?

A personal loan allows you to borrow a set amount of money from the bank to pay for something. You will then need to repay that money back over time in instalments, plus interest.

The amount of money you can borrow depends on the bank and what you are planning on using it for, but most people take out personal loans for between $10,000 and $50,000. Repayment terms, which is the amount of time that it will take you to repay your loan back, are generally between 1 and 10 years.

Secured vs unsecured personal loan

A secured loan means you offer something you own of value as collateral when taking out a loan. In the case that you can't pay back your loan, the lender (bank) could sell the asset to get their money back. Assets that are used as collateral often include vehicles (cars, boats, motorbikes), property and stocks.

An unsecured loan means that the lender doesn't need any collateral to allow you to borrow money. This is a higher level of risk for the lender, so you will generally pay a higher interest rate.

What can you use a personal loan for?

You can use a personal loans for all sorts of things, including:

1. Wedding expenses

2. Home improvements or renovations

3. Holidays

4. Debt consolidation

5. Buying a vehicle

6. Moving houses

7. Emergency expenses, such as funerals

8. Furniture and appliances

9. Education

10. Medical bills

How to apply for a personal loan

To apply for a personal loan you must be:

18 years or older
Applying on your own
Receiving a regular income
Hold Australian citizenship or have permanent residency

If you meet that criteria, the next step is to come in and have a chat to us about what you want to use a personal loan for and we can get the ball rolling.

Easy Loans is a broker, so our job is to get you the best deal on your loan. We shop around at different banks for you to get your loan approved at the lowest rate possible. The best thing is it's free for you to come and see us - we don't charge you for our service because the banks pays us when we links you up to borrow money with them, like a commission.

Give us a call on (08) 8981 2345 or fill out our Contact Form and we'll be in touch.

How to prepare for rising interest rates

Mon, 04 Jul 2022 06:14:52 GMT

As interest rates continue to climb, the pressure on homeowners is growing. Our home loan specialists offer their top tips to help you better manage your mortgage in a time of rate uncertainty.

Make more regular repayments

Typically, homeowners make monthly repayments on their loan, but changing your repayment schedule to fortnightly can save you money and help you pay your loan off faster.

Since there are only 12 months in a year, but 26 fortnights, you'll end up making an extra month's worth of repayments per year, often without noticing a significant difference.

For example, let’s say you have a $400,000 loan at an interest rate of 2.74% . If you switch to fortnightly repayments, you’ll be repaying an extra $1,631.00 per year. This will cut your loan period by 3 years 4 months, and you’ll save a huge $23,400 on interest / fees. **

Use an offset account

An offset account is an everyday bank account that is linked to your home loan. You can deposit any extra savings into that account, which then offsets the amount you owe on your home loan and decreases the amount of interest you pay.

For example, say you have a home loan of $600,000. You have $30,000 in your offset account, so now you will only be charged interest on a loan balance of $570,000.

The great thing about offset accounts is that you can still use it as a regular transaction account. You can access that money whenever you need, so your money isn't locked in.

If you have a Basic Variable Rate Home Loan and don’t have access to a separate offset account, not to worry - you can achieve the same benefits by paying your savings into your home loan it will offset against your loan balance the same way, and you still have access via redraw. Check your home loan set up with your Easy Loans broker to find out more.

Pay principal and interest rates

If possible, try to ensure you are making principal and interest repayments, rather than interest-only.

If you only pay off the interest on your loan, the actual loan amount will stay the same. Principal and interest rates are generally also lower than interest-only, and give you the opportunity to build equity faster.

Consider refinancing

Depending on your situation, now might be a time to consider refinancing. Locking in a fixed interest rate can give homeowners peace of mind in a time of interest rate uncertainty. Talk to a broker about eligibility and options.

What next?

Talk to a mortgage broker for advice about your current home loan. Our brokers can review your current home loan structure and advise you on the best options to suit you and your personal circumstanc.es

Call us on 08 8981 2345
Complete our online contact form

*This information is subject to change.

**Repayments are based on a WBC Flexi First Option Variable rate of 2.74% p.a. over 30 years. Rates were correct at the time of printing and are applicable from 4 July 2022. Fees, charges and lending criteria apply.

How do home loans work? A beginner's guide

Tue, 31 May 2022 04:37:52 GMT

Buying your first property can be an exciting time, but trying to wrap your head around the terminology, jargon and exactly what you need to do can be stressful and confusing.

Our loan specialists are here to simplify it for you, and explain the fundamentals of home loans.

What is the difference between a home loan and mortgage?

Home loans are a type of loan that is used to purchase real estate. The bank will lend an individual money to buy the real estate, and the individual will then need to pay it back to the bank over time.

A mortgage is the agreement between you (the borrower) and the bank (the lender).

How long will it take to repay my loan?

Home loan terms generally range from 25 to 30 years, but this depends on your financial situation and the price of the property you buy.

You can use our Repayment Calculator to get an estimate of what your repayments might be.

Deposits and Lenders Mortgage Insurance (LMI)

To secure a home, you will need to make a deposit. This is your initial contribution to the price of a property.

Australian's will generally need 20% of the property's full price as a deposit. It is possible to get a home loan without a 20% deposit, but you will need to pay what is called Lenders Mortgage Insurance (LMI).

LMI is a type of insurance that the lender (the bank) takes out to protect itself against the risk of you not being able to meet your loan repayments. You do not have to pay LMI up front, and this will be included in the overall amount of money you need to pay back to the bank.

The cost of LMI will depend on the price of the property.

There is a way you can avoid paying LMI if you don't have a 20% deposit, and that's by getting a guarantor. This is often a family member who is willing to be responsible for paying back the loan if you can't. This is a way for the bank to safeguard themselves when lending you money.

In addition, some government schemes offer lower minimum deposits, so keep an eye out in the new financial year.

Fixed rate vs variable rate mortgages

When you borrow money from a bank, you are required to pay interest. Interest is a fee you are charged for borrowing money. Interest rates fluctuate over time, depending on the global economy.

There are two ways you can pay interest on your home loan:

Fixed rate interest: When you organise your loan, you can lock in an interest rate for a period of time, typically between 1-5 years. This means that even when the global interest rates change, your rate will stay the same.

Variable rate interest: These rates give you more flexibility than fixed rates. With a variable rate, the rate of interest you pay will change with the economy. So for example, if the global rates go down, so will your rate. Similarly, if the rates rise, so will your rate.

How do I know which is right for me? Chat to a home loan specialist about your options and unique situation, and they can help you make a decision.

What is an offset account?

An offset account is an everyday bank account that is linked to your home loan. You can deposit any extra savings into that account, which then offsets the amount you owe on your home loan.

For example, say you have a home loan of $500,000. You have $20,000 in your offset account, so now you will only be charged interest on a loan balance of $480,000.

The great thing about offset accounts is that you can access it whenever you need it, so your money isn't locked in.

How do I get a home loan?

To get a home loan, you can either go straight to a bank or to a broker (like us).

The benefits of going to a broker is that we can shop around for you - in short, we're the middleman between you and the bank, and can do the legwork so you don't have to. We have relationships with a variety of different banks to find you the best deal depending on your goals and situation.

What a lot of people don't know is that brokers don't actually charge services fees, so you can come and see us free of charge. The banks pay us when we link you up with them to borrow money - like a commission.

If you're keen to get started, you can contact us or fill out our online survey and one of our home loan specialists will be in touch.

When you come in for a consultation, we'll guide you step by step so you can be on your way to owning your first property.

easy-loans

NT Government's New Housing Grant Scheme

Understand the NT Government's new housing grant scheme

What grants are available?

Buying or building a new home - HomeGrown Territory

Buying an established home - HomeGrown Territory

Existing home owners - FreshStart New Home

Eligibility and how you can apply

Why your credit score is important

What is a credit score and why does it matter when taking out a loan?

How is my credit score calculated?

How can I improve my credit score?

How do I check my credit score?

First Home Guarantee Scheme

First Home Guarantee Scheme (FHBG)

Not sure what Lenders Mortgage Insurance is?

Eligibility for First Home Guarantee Scheme

Types of properties and price thresholds

How to apply

Everything you need to know about personal loans

How do personal loans work?

Secured vs unsecured personal loan

What can you use a personal loan for?

1. Wedding expenses

2. Home improvements or renovations

3. Holidays

4. Debt consolidation

5. Buying a vehicle

6. Moving houses

7. Emergency expenses, such as funerals

8. Furniture and appliances

9. Education

10. Medical bills

How to apply for a personal loan

How to prepare for rising interest rates

Make more regular repayments

Use an offset account

Pay principal and interest rates

Consider refinancing

What next?

How do home loans work? A beginner's guide

What is the difference between a home loan and mortgage?

How long will it take to repay my loan?

Deposits and Lenders Mortgage Insurance (LMI)

Fixed rate vs variable rate mortgages

What is an offset account?

How do I get a home loan?

Michelle Lewis

Michelle Lewis

Mortgage Broker

Michelle Stephan

Michelle Goody

Principal Owner

Andrew Harley

Andrew Harley

Mortgage Broker

Caitlyn Cortes

Caitlyn Cortes

Mortgage Broker

Kaylene Mason

Kaylene Mason

Mortgage Broker