Nick Rabba - Finance Broker - Inovayt

Excited to announce I have been listed on the MPA Top Rising Brokers in Australia 2024.

This was awarded for meeting multiple entry requirements as well as writing a high volume of loans in my first year broking, writing $55M.

I could not have done this without support of my team.

Where was the "expected" 20% house price crash in 2023?

2023 was one of the only times in history where dwelling prices with the RBA . The graph below shows that house prices usually decrease with RBA increases however they increased this past year.

The reason for this is due to the higher demand for properties that occurred throughout this period. Many buyers were returning to the market during this period as house prices were reducing from there all time highs in 2021/22 and they could finally get into the market.

During 2023 we also saw the building industry struggle with many builders going into administration. This left buyers with no confidence to build and pushed them into the established property market, which led to increased prices.

2024 outlook for property prices?

Many buyers are already speaking to their lenders and brokers and pre-approval volumes is increasing, meaning more buyers will enter the market. This will lead to a continued push in prices as more buyers will be competing for the stock being listed.

If you wanted to discuss your own options to purchase, upgrade or refinance please get in touch.

0498356225

🔔 Are you coming off a fixed rate or considering selling your investment properties to ease your financial burden?

The banks have released policies to assist with refinancing and re-structuring home loans.

What have they done?
📌 Lowered the refinance buffer rate. The banks have reduced there current assessment buffer from 3% to 1% for refinances. This will allow 'mortgage prisoners' to refinance onto a better rate and also reset their loan terms.

Banks have introduced for both owner occupier and investment loans. They will even allow for investment interest only loans to be refinanced.

You can reach out directly to me anytime to discuss your own scenario and explore better interest rates.

Current Best Rate Offers
📌 Owner Occupier P&I = 5.59%
📌 Investment Variable P&I = 5.89%
📌 Investment Variable IO = 6.09%

📞 0498 356 225
📧 [email protected]

Many mortgage prisoners still out there, say brokers A survey of almost 500 brokers found more borrowers unable to refinance as they can’t meet spending tests at new lenders amid concerns on rising repayments.

🏦📈 Cash Rate Remains on Hold 🏦📈

The RBA has announced that they will hold the cash rate this month meaning there will be no increase to interest rates.

📉 Reasoning?

The reasoning behind the pause this month is that there has been a greater than expected reduction in inflation. With inflation continuing to trend downwards we can expect less interest rate rises.

🎯 RBA's goal?

Currently sitting 6% the RBA's aim is to keep inflation at 2-3%. We are expected to reach this number late 2024 to early 2025. This means we are expecting at least one more rate rise this year.

The reason for a focus on lower inflation is to keep stability in the market. Higher inflation disrupts the economy and impacts savings, budgeting and income equality.

🏠 Economic Impacts?

📌 Investors selling off investment properties.
📌 Lower demand for properties.
📌 Less listings.

If you would like to review your current finance arrangements or are thinking of entering into the property market feel free to contact me, details below.

📞 0498 356 225
📧 [email protected]

Are you coming off your fixed-rate home loan soon?

⁣Did you know that when a fixed-rate loan period ends lenders will roll you onto a variable rate that is higher than what they are offering new clients.
⁣⁣
Exploring refinancing options would be the way to go as you would have access to lower rates than what your existing bank would offer you.

If you'd like to shop around get in touch. We have access to over 40 lenders and can get you lowest rates on the market.

📞 0498 356 225
📧 [email protected]

🤔 Is it a good time to be a First Home Buyer?

The simple answer is YES.

Reasons?

📌 It's a buyers market. Buyer demand is very low due to the rate rises and there are a lot of investors looking to sell due to rising rates and land taxes. This means there is a lot of unit and apartment stock on the market which FHB's tend to go for.

📌 We have seen the worst of the rate rises. Current economic outlook expects there to be only one or two more rate rises with a potential reduction of interest rates in 2024. These increases would only impact repayments by an extra $50 - $100 per month and if you can meet these at a worst case then you are good to go today.

📌 FHB Schemes. The eligibility requirements for the first home buyer schemes are becoming more and more accessible meaning today you can get into a home with a 5% deposit plus costs. i.e A $600k property in VIC would only require a $35k deposit.

Get in touch if you'd like to find out about your borrowing capacity and scheme eligibility.

📞 0498 356 225
📧 [email protected]

🔔 The RBA have announced another rate rise. This increases rates by 0.25% and the banks have already begun to pass this onto clients.

📌 What has this done to the average Australians repayments?

A mortgage of $500k = ⬆️ $1,168 per month OR $14,016 per year.

A mortgage of $1M = ⬆️ $2,335 per month OR $28,020 per year.

Over the past two years rates have risen from all time lows at 1.89% to 5.97%. With inflation not slowing down it is very likely we will see another rate rise this year if not next month.

If you'd like to discuss your current rate or get onto a repayment strategy to assist you paying down your loan quicker please get in touch.

📞 0498 356 225
📧 [email protected]

If you haven't reviewed your home loan rate in over 2 years you are most likely paying to much.

I recently refinanced a client with a 2 year old home loan who was paying $5,000 in extra re-payments yearly. This could have been used to pay down the principal and pay off the loan quicker.

Currently lenders are offering large cash incentives to refinance:

AMP - $5,000
Bank of Melbourne - $4,000
ANZ - $4,000
CBA - $2,000
NAB - $2,000

If you'd like a free review of your current rates book me using the link below.
https://meetings.hubspot.com/nick-rabba/rate-review

Great article if you are keen to find out how the interest rate rise will impact your borrowing.

If you'd like to discuss further book me in, via the link below, for a free finance discussion.

https://meetings.hubspot.com/nick-rabba

How Do Rising Interest Rates Impact Your Borrowing Capacity? | Inovayt Rising interest rates are now adding strain to Australian's budgets, with the RBA announcing a 50 basis point increase to the cash rate.

If it's been more than two years since you've had your rates reviewed it is time to get them checked out. Most lenders won't review you rates as it will mean less profits for them. This is the benefit of working with a mortgage broker who can pivot you away from your existing bank and get you a better rate every two or so years.

Benefits of refinancing:

1) Cashbacks: Lenders are offering up to $5,000 simply for refinancing with them.
2) Better rate: You can secure yourself a better rate simply by having your rates reviewed. This can save you $$$ throughout the year in interest re-payments.

Your home loan re-payments are your biggest living expense. Why not make then lower?

Get in touch for a free consultation.

📞 0498 356 225
📧 [email protected]

Recently I've have had a few queries on whether I charge a fee or not. To be clear I do not charge a fee for my services and operate as any bank would.

I do however provide better benefits than a traditional lender would, these include:

1) Tailored financial solutions.
2) Access to 30+ lenders.
3) Access to better products & pricing discounts.
4) A legal obligation to act in your best interest which traditional lenders do not operate under.
5) A long term financial strategy for your specific needs and future goals.

Get in touch to find out more.

📞 0498 356 225
📧 [email protected]

**Interest rates have risen again** The RBA have announced the cash rate will increase by a further 0.5% with the banks likely to pass this increase onto clients in the next two weeks.

An average loan of around $500k will increase by around $150 in monthly repayments.

It is time to have your rates reviewed, get in touch for a free consultation and rate review.

📲 0498 356 225
📧 [email protected]

https://www.abc.net.au/news/2022-08-02/reserve-bank-interest-rate-rise/101292420

Reserve Bank says it will do 'what is necessary' to tame inflation as it raises rates for fourth-straight month The Reserve Bank increases interest rates for the fourth month in a row, raising its cash rate target by half a percentage point.

Are you curious to know how much a lender will allow you to borrow?

There are a few factors at play which lenders will look at to determine this and they can be quite complex. Don’t allow yourself to be confused by industry terms and jargon, get in touch with an expert.

Give me a call for a free consultation on your borrowing position.

📞 0498356225
📧 [email protected]

Opportunity cost of using large deposit or LMI. Get in touch to find out more and see what will suit you best.

📞 0498 356 225
📧 [email protected]

The government have released 35,000 'First Home Low Deposit Scheme' (FHLDS) reservations.

What does this mean and how does it help you?
- Spend up to $100k more at auction.
- No Lenders Mortgage Insurance (LMI) Fee. Saving of around $15k which goes directly to your borrowing power.
- Better rates and lower repayments.

Give me a call to find out more. My services are free and will assist you to get in your first home.

📞 0498 356 225
📧 [email protected]

https://www.smh.com.au/property/news/how-first-home-buyers-can-get-help-to-spend-100-000-more-at-auction-20220630-p5ay10.html

How first home buyers can get help to spend $100,000 more at auction Home hunters trying to get on the property ladder can get extra help from the government. But if their rivals at auction do the same, will it prop up prices?

Don't be put off with headlines such as these. Borrowers can secure a home with a deposit as low as 5%.

There are multiple strategies and government grants to assist First Home Buyers get into there first home.

Don't waste time. Get in touch to find out how you secure your first home.

📞 0498 356 225
📧 [email protected]

https://www.9news.com.au/national/home-deposit-average-rises-to-120-000-new-high/ba67a91f-b6e2-4678-af36-5eea987a8ec4?ocid=Social-9News&fbclid=IwAR0MHzdkE9Ew32SLYrEplHKRPPYz7yIssqoepMbmQdP2Xv291NMSy0tb1lk

Have a read of the below to better understand how the recent rate rise will impact your borrowing capacity.

⬆️ Interest rates = ⬇️ Borrowing capacity

Refinance while you still can!

https://www.inovayt.com.au/how-do-rising-interest-rates-impact-your-borrowing-capacity/

How Do Rising Interest Rates Impact Your Borrowing Capacity? Rising interest rates have struck again in 2022. For the second time in 35 days, the RBA has raised the interest rate, throwing homeowners and potential

**RBA ANNOUNCEMENT**
- The RBA has lifted the cash rate to 0.85%

What does this mean?
- Interest rates will increase by 0.5% across all lenders.

This will impact every one with an existing loan, if you need guidance or a free rate review please get in touch.

📞 0498356225
📧 [email protected]

https://www.abc.net.au/news/2022-06-07/interest-rate-increased-by-reserve-bank/101131216

Australian households could be under 'extraordinary pressure' after RBA raises cash rate — as it happened The Reserve Bank announces a cash rate rise of half a percentage point. Look back at how the day unfolded in our live blog.

Do you know your 'Borrowing Capacity'?

Your 'Borrowing Capacity' = The total amount of funds a lender will allow you to borrow taking into account a range of factors from your current financial position. This determines how much your maximum purchase price for a property can be.

This also ties into the current property market and if you are waiting for house prices to drop you may need to re-think your current position.

When interest rates rise, house prices do drop however your borrowing capacity is also impacted. Your capacity will be reduced when interest rates rise due to you needing to make higher repayments on the same amount of money.

i.e A couples borrowing capacity may be $500k at a 2.00% rate but at an interest rate of 2.50% this will be reduced to $475k due to the higher interest payments. Meaning you cannot purchase for the higher price and hence showing why house prices decrease when interest rates go up.

To simplify:
⬆️ Interest Rates = ⬇️ House Prices
⬆️ Interest Rates = ⬇️ Borrowing Capacity

This also shows why waiting for house prices to decrease won't make a difference to your purchasing power and leaves you in the same position as before.

It is currently the best time to get into the market while everyone else is hesitant and sitting on the sidelines.

Get in touch for a free borrowing capacity assessment.

📞 0498356225
📧 [email protected]

https://www.inovayt.com.au/finance/your-first-home/how-much-can-i-borrow/

How much can I borrow? How much can I borrow? | Inovayt

Nick Rabba - Finance Broker - Inovayt updated their phone number.