Personal Lending
Home and Investment Loans
Buying your first home is one of (if not) the biggest financial commitments you will ever make. Stay well informed of what is involved so you don’t make any rush decisions.
Good financial planning and loan advice can save thousands of dollars off your loan and help you own your home sooner! Whether you need a home or investment loan, we have access to a superior panel of approved lenders who can offer competitive quotes and products to meet your specific financial needs.
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Key Considerations |
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First home owners grant |
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Tips to pay off your home loan faster |
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Fixed or variable interest? |
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Hidden home loan costs |
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Home insurance tips |
Key Considerations
Can you afford to buy a house?
A credit provider must ensure you can afford to repay a loan without suffering undue financial hardship before lending you any money. The total amount that you can borrow is determined by three factors:
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The value of the property you intend to purchase; |
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The funds you use towards the purchase; and |
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Your borrowing capacity or "serviceability". Serviceability is your ability to meet loan repayments, and will depend on your income and existing financial commitments. You will need to provide evidence of a continuous stable income. |
You must have a budget!
Budgeting your income carefully and understanding your spending habits will help you make regular loan repayments and own your home that much sooner!
First Home Owner Grant
The First Home Owner $7,000 Grant was introduced by the Federal Government on 1 July 2000, as a means to compensate first home buyers or builders for the costs associated with GST.
While the First Home Owner Grant is available nationally, it is administered by the State Governments, so specific details may vary from State to State.
The grant is a one-off $7,000 payment, paid to you when you become entitled to possession of your home under a contract or purchase (usually on settlement). If you are building a first home, the grant is paid when the residence is ready for occupation.
If you are eligible for a First Home Owner Grant, the money is unlikely to make a significant difference to your home loan application - the funds are not usually treated as personal savings when the lender evaluates your savings history.
The faster you do this, the earlier you can start investing your hard earned money elsewhere. You can also use our various home loan calculators to assist planning.
Tips to pay off your home loan faster
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Select a home loan that meets your needs. While the rate is important, it is more important to have an appropriate level of flexibility and function. |
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Pay off as much as you can, as often as you can. |
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Avoid loans that penalise you for making extra repayments. |
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Avoid ‘honeymoon’ loans that revert to a higher rate after the ‘honeymoon’ period is over. |
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Avoid loans with high exit costs. |
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Deal with reputable organisations. |
Fixed or variable interest?
This really depends on your current financial situation. We can help you select the right type of loan, either fixed, variable or part-fixed/part-variable interest loan, building in the cost of every-day living to determine how much you can afford to repay each month.
There are advantages and disadvantages of choosing fixed and variable interest loans, and they are assessed on a per client basis.
Remember however, that if you elect to split your loan into part fixed / part variable, make sure you don't incur two monthly loan maintenance fees instead of one.
Hidden home loan costs
There are many costs associated with taking out a home loan, which don’t relate to the price of the property.
These hidden costs include:
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Lenders' fees, including loan application and establishment fees; |
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Government charges including stamp duty on property purchase and mortgage, and title fees; |
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Legal expenses; and |
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Inspection costs. |
Home Insurance Tips
Lender’s mortgage insurance
If you can’t repay your loan, the lender repossesses your house and sells it to repay the loan. If the sale of your house doesn’t cover what you’ve borrowed and an amount is still owed, lender's mortgage insurance will cover the gap. Lender's mortgage insurance covers the lender, not you!
If you need to borrow more than 80 percent of the total value of your property, most lenders will require you to pay lender's mortgage insurance. It is usually charged as a one-off premium payment. The higher the percentage borrowed, the higher the lender's mortgage insurance premium will be.
Mortgage protection insurance
Mortgage protection insurance covers your loan repayments in the event that you are unable to make them.
Count does not recommend mortgage protection insurance because it only covers your loan repayments. According to our research, in most cases, income protection insurance is much better value. Income protection insurance provides up to 75% of your salary in the event that you are unable to work and covers all your expenses - not just your loan payments.
Home and contents insurance
Home and contents insurance protects you from loss or damage to your home or possessions. The cost of insuring your home depends on many things, including the structure, the location and the existing security (security doors, alarm etc).
Home insurance covers the building only - not the land. Contents insurance covers your possessions listed in the policy.
If you have a mortgage on a property, building insurance is compulsory. Contents insurance is not compulsory, although it is generally a good idea and should be reviewed each year as you purchase new contents for your home.
*WA & ACT Members must be licensed under the Finance Brokers’ Control Act to provide Residential, Business lending and chattel mortgage finance
Depreciator
81% of Australian property investors are not claiming their full tax deductions*? Could you be one?
Source: Depreciator
If you have an investment property, it can be depreciated. Think of it as ‘wear and tear’. Houses, units and commercial properties all qualify. Even older properties can be depreciated.
By using Depreciator, a member of the AIQS and recognised by the ATO as being appropriately qualified to prepare tax depreciation schedules, investors like you are claiming thousands of legitimate tax dollars back on their investments.
You can even backdate your schedule so you can claim up to 4 years of ‘lost’ depreciation – with interest paid by the ATO!
All you need to do is order a depreciation schedule and Depreciator does the rest!
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What are the benefits of using Depreciator? |
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Depreciator specialises in depreciation schedules. This ensures that you receive the maximum tax-deductible depreciation you are entitled to. |
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By decreasing the tax payable on your investment property, you can increase the cash flow of your investment and save money. |
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Depreciator provides a comprehensive report that sets out your depreciation entitlements on a yearly basis for 20 years - saving you money for the next 20 years! |
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The fee is 100% tax-deductible. |
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The depreciation schedules are suitable for all types of property investors - companies, partnerships, trusts, individuals and couples. |
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Hassle-free - all you need to do is fill in the online application form and Depreciator will take care of the rest. |
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Guaranteed - if you do not get more depreciation than the fee in your first full year, your schedule is free. |
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It is transferable to future buyers on your property sale. |
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Depreciation values are based on a variety of calculation methods for depreciation - so your Count Adviser can select the most tax-effective strategy for you! |
Who is Depreciator?
Depreciator is a quantity surveying company whose complete focus is depreciation schedules for individual investors. Their specialist skills ensure that you receive the maximum depreciation allowable on your investment properties.
How do I order a depreciation schedule?
The process to order a depreciation schedule is hassle free and easy:
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Enter your details and credit card information into the secure online application form. If you have any queries or do not wish to enter your credit card details*, a comment can be entered into the form and a Depreciator representative will call you instead. |
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If you entered your credit card details, you will receive a confirmation page, confirming your payment and submission details. |
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A Depreciator Representative will then call you to get specific property details and arrange access to your property. |
How long does it take to receive a depreciation schedule?
It usually takes 2 weeks to complete your report. However, if there are tenants residing at your investment property, it may depend on their availability.
There may also be an extended turnaround time if Depreciator needs to travel to a remote area.
How much does it cost?
A comprehensive depreciation schedule, which provides you with up-to-date depreciation information for the next 20 years, costs $715 (GST inclusive). This amount is 100% tax deductible.
Plus, if you do not receive more depreciation in your first full year than Depreciator’s fee, your schedule is free!
Note: The only time this varies is if there are multiple residences (like a duplex or granny flat) or if Depreciator needs to send a quantity surveyor to a remote area.
How much money can I save?
How much depreciation you can claim will depend on your investment property and a variety of tax rules.
However, below are some samples of actual depreciation schedule summaries:
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New 2 bedroom townhouse - reasonable quality |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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$9,447 |
$9,392 |
$8,315 |
$7,588 |
$7,087 |
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New 2 bedroom CBD unit – furnished (a very up-market property) |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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$21,005 |
$17,944 |
$15,192 |
$13,292 |
$11,950 |
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Unit built pre-1985 with a $38,000 renovation done post-1992 |
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
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$2,979 |
$2,937 |
$2,236 |
$1,798 |
$1,524 |
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What does a schedule from Depreciator include? |
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A comprehensive report that sets out your depreciation entitlements on a yearly basis for the next 20 years. |
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A summary page with depreciation amounts. |
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Definitions of all terms. |
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The fee is 100% tax-deductible. |
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Depreciation values based on all calculation methods for depreciation, helping your Count Adviser select the most tax-effective strategy for you! |
Do I need to provide any information?
No. Depreciator specialises in depreciation and is able to accurately estimate the cost of ‘capital works’ as well as all depreciable assets. This means no receipts, plans, photos or sketches and most importantly, no hassle for you!
Doesn't a schedule only apply to new buildings?
Any building where construction started after 18 July 1985 qualifies for the 'Special Building Write-Off'. That means you can depreciate the original cost of construction. Plus, for all buildings, there are a host of depreciable assets like hot water systems, blinds, floor coverings and stoves that may be depreciated.
If construction cost information was provided to you by the previous owner of the property (and there is an ATO expectation that they do this), those costs should be used in calculating your depreciation claim. You should make every effort to obtain actual building costs from the previous owner or the builder or developer of your property. Depreciator requires you to disclose any relevant costs you have obtained prior to commissioning a Tax Depreciation Schedule.
Can I claim renovations?
Yes. The 'Special Building Write-Off' can be claimed as long as the renovations were undertaken after 26 February 1992. You can also claim Architects and Engineers Fees. Structural inclusions such as retaining walls and sealed driveways, if undertaken after this date, also qualify.
If you’re interested in taking advantage of this opportunity, complete an online application form today!
Refinancing Home Loans
As your life progresses your situation changes rapidly and your requirements from a home loan can alter dramatically. Similarly, don’t assume that just because your loan was once competitive, it still is. Interest rates change and different types of loans are always entering the market. We can arrange to review your current home loan to ensure you still have the right product for your needs. We will:
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assess your current interest rate; |
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assess your repayment level; and |
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assess your financial situation to determine whether a better deal can be sourced saving your money; and helping you pay off your loan faster. |
*WA & ACT Members must be licensed under the Finance Brokers’ Control Act to provide Residential, Business lending and chattel mortgage finance
Debt Consolidation
We are ideally positioned to help you manage your debt and get you back onto the road to financial security. We can implement strategies to help you:
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pay off an existing home loan with loan advice and loan refinancing advice; |
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reduce your credit card and personal loan debts by consolidating your existing debts and implementing a savings strategy and wealth creation plan for you; and |
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ensure your financial future is on-track with a sound financial plan. |
