Federal Budget 2020: Property market opportunities
The new Federal Budget was announced with some incredible incentives to navigate through these unprecedented times and help stabilise the property market as well as help you get onto the property ladder. While most of these initiatives are targeted at First Home Buyers if you’re a property investor, there might be opportunities for you to expand your portfolio, especially with RBA cash rate forecasted to stay low for the foreseeable future.
Bank lending with more ease
One of the biggest announcements recently is that lenders are easing strict regulations in processing mortgage loan applications. While lenders must act according to responsible lending laws, mortgage brokers are also responsible and have the best interests of you and the lender. Easing regulations means that lenders are likely to overlook smaller lifestyle transactions like your UberEats bill in order to process the loan quicker. Plus, for many people when there’s a mortgage behind their back, they have more responsibility, so they’re able to finetune their finances more.
First Home Loan Deposit Scheme
This initiative will support another 10,000 places in a bid to help more Australians into their first home, starting from 6 October 2020 to 30 June 2021. This means eligible first home buyers can purchase a home with a 5 per cent deposit, and the Federal Government will act as the guarantor on the remaining 15 per cent.
$25,000 Home Builder Grant
The Home Builder Grant is a great way to help you get into the property market, especially if you want to build. Some lenders will count the home builder grant of $25,000 as part of the total deposit towards the newly built home, plus there’s a waived stamp duty. Always check the fine print and if you have any questions about utilising this grant, get in touch with our Mortgage & Finance team.
New personal tax cuts
The Government is implementing a one-off personal tax cut, essentially meaning that you will have more cash to spend or save towards your deposit. Here’s how much you will be able to save on tax in FY20-21.
- $37,000 or less, you will get up to $510 tax relief
- $37,001 – $48,000, you will get up to $510 – $2,160 tax relief
- $48,001 – $90,000 you will get up to $2,160 – $2,295 tax relief
- $90,001 – $126,000 you will get up to $2,295 – $2,745 tax relief
These incentives will help you get into the property market or buy a new investment property while taking advantage of the record-low interest rates.
With 2020 changing the way we use technology, more banks are closing down their branches to adapt to the new normal. As bank branches close, who’s there to help you? Coronis Finance has over 18 Mortgage Brokers comparing over 30 lenders to work in your best interest. We’re available 24/7 to help you find new loan or refinance options, here’re the best options for you.