BOC Finance

10/06/2026

The “Available Redraw” trap that catches weekly mortgage payers off guard.

If you pay your mortgage weekly or even fortnightly, you might be looking at a financial illusion every time you log in to your banking app.

Paying weekly or fortnightly is an excellent strategy but here’s how a smart habit can accidentally land a borrower in arrears:

Most banking systems operate on a strict monthly billing cycle. For example, if your required payment is $4,000 a month, the bank’s computer only “charges” that amount once a month on a specific date.

If you pay $1,000 a week:

- By week three, you’ve put $3,000 into the loan.
- Because the monthly due date hasn’t hit yet, the bank’s system often views that $3,000 as an “extra payment.”
- It tops up your “Available Redraw” balance to reflect it.

The Trap:

If you log in, see that balance, and withdraw all of your redraw for an emergency or a purchase, you haven’t just taken your savings.
You’ve inadvertently stripped out the weekly instalments meant to cover your upcoming monthly repayment.

When the monthly repayment due date arrives, the system looks for the $4,000, finds a shortfall, and automatically flags your account as in arrears.

The Fix:

Not all bank systems are created equal. Some modern lenders dynamically “hide” your current month’s weekly payments from your redraw to protect you while others don’t.

If you ever need to clear out your redraw balance, the safest rule of thumb is to always leave an amount equal to one full month’s repayment untouched.
Set that permanent buffer, and you’ll never let a timing mismatch mess with your credit file.

08/06/2026

$1.45m down to $1.06m.

If you’re shopping for an investment property right now, the goalposts have moved significantly.

Lenders aren't waiting around for the government's proposed negative gearing changes to become law. They have already started stripping the negative gearing tax add-backs from their serviceability calculators if you're buying an established property.

The practical reality? A buyer who had a pre-approval of $1.35m just a few weeks ago is now looking at a max borrowing capacity of $1.06m if they buy an existing house instead of a new build. That’s a $290,000 hit to your buying power!

If you are currently holding an older pre-approval or hunting for an established property, you need to get your numbers run again immediately to avoid being caught out.

14/05/2026

🤯 Don’t Panic—Pivot Instead ↗️

Since the federal budget was announced on Tuesday night, there has been a flurry of opinion, speculation, and (let’s be honest) a bit of panic.

The fact is, while these changes represent a major shift, they don’t mean the end of property investment. It just means we need to pivot our strategy.

Here is the reality check:

✅ Existing Owners are Safe: If you already own an investment property (or signed a contract before 7:30 PM Tuesday), you are grandfathered. Your negative gearing remains exactly as it was.

The New Strategy for Future Purchases:

If you’re looking to enter the market or grow your portfolio now, it’s about looking closer at your “Pivot Points”:

👉 The New Build Advantage: Purchasing a brand-new property remains exempt from the new restrictions. You get the full negative gearing benefits AND a choice on your CGT discount down the track.

👉 The Structure Pivot: Exploring different ownership structures (like certain trusts or SMSFs) that may sit outside these specific residential restrictions.

👉 The Yield Play: Shifting focus from capital growth alone to high-yield properties where the income covers the majority of costs, minimizing the impact of “quarantined” losses.

In times of uncertainty, the only way to find certainty is to educate yourself, explore your options, and seek guidance from professionals who live and breathe this stuff - Accountant, Mortgage Broker and Solicitor (or what I like to call “The Golden Triangle”)

05/05/2026

Don’t let today’s rate hike keep you awake at night. Use your energy to get a better deal…..a fairer deal.

All it takes is a 15 minute conversation and we can put some much needed money back into your pocket.

Want to chat?

Drop me a DM or email [email protected]

24/04/2026

Why your Pre-Approval might be a “Ghost” of the past.

Numbers matter, but timing might matter even more right now.

Most buyers view a 90-day pre-approval as a “locked-in” guarantee. In a stable market, it is. But with the RBA showing a high probability of a May hike to 4.35%, that 90-day window can be a trap.

Here’s how the “Pre-Approval Trap” works:

1. The Invisible Re-assessment: Many lenders can reassess your capacity the moment a rate hike occurs. That $800k limit you had in March could silently become $780k in May.

2. The Buffer Effect: Lenders don’t just test you at the current rate; they apply a 3.00% serviceability buffer. Every 0.25% increase in the cash rate typically reduces a median household’s borrowing capacity by roughly $20,000.

3. The Auction Risk: If you bid at auction based on an old number, and the bank’s final formal approval comes in lower due to a rate change, you’re on the hook for the difference.

How to stay ahead:

• Treat pre-approval as a live document. Don’t wait for it to expire to check your numbers.

• Build a “Rate Buffer.” If you’re at your absolute limit today, you’re at risk tomorrow. Aiming slightly below your max can save a settlement.

• Ask about “Dollar-for-Dollar” exceptions. If you are looking to refinance, some lenders are making concessions on assessment criteria to help you bridge the gap.

Don’t let a ‘ghost’ pre-approval haunt your settlement. If you want to confirm your actual borrowing capacity before you head to your next open home, send me a message and let’s verify the numbers.
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06/04/2026

04/04/2026

From our family to yours, Happy Easter!

30/03/2026

The Pre-Approval Trap (and how to avoid it) 🏠

✅ You’ve done your research
✅ You’ve found the house
✅ You’ve done the drive-bys
✅ Your finance has been “pre-approved”

What could possibly go wrong?

I’ve had many a borrower contact me at the last minute because they realized too late: That super fast “pre-approval” they got from the bank wasn’t actually an approval at all.

It’s a common tactic - banks issue a “Congratulations!” letter saying “you have been pre-approved!” just to keep you from shopping around.
But if you read the fine print, you’ll often find your application hasn’t even been assessed by a human yet.

At an auction, this is a recipe for disaster.

There is no cooling-off period. No finance clause. If the hammer falls and your formal approval is later declined, your deposit is likely gone.

Your 4-Point Pre-Auction Checklist:

1️⃣ Ask for a “Fully Assessed Pre-Approval”: This ensures a credit assessor has actually reviewed your income, liabilities and expenses. The only thing missing should be the property address.

2️⃣ Check the “No-Go” Zones: Ask your lender about postcode restrictions or “undesirable” security types (like high-density apartments or small unit sizes) before you bid.

3️⃣ Independent Eyes: Don’t just rely on the agent’s building and pest report. Get your own “at arm’s length” to ensure there are no hidden structural or termite issues.

4️⃣ Stick to the Number: Auctions are designed to be emotional. It’s easy to say “just $5,000 more,” but that can push you right past your pre-approval limit.

Buying at auction is a “pencil-sharpened” moment.

Make sure your finance is as ready as you are.