Rise N Shine Finance

24/11/2022

Are you under mortgage stress?

Most people are no longer worried about COVID19 as the main reason of mortgage stress. Rather, soaring interest rate, rising inflation are keeping people up at night. Reserve Bank of Australia consecutive months of rate rises create tremendous stress for many borrowers. They feel the pressure as they brace for their own interest rates to continue to rise.

Peter asserts that, "I keep getting new mail saying your repayments are now this, your repayments are now this…Every month I spend a lot of wage on mortgage repayments and that’s before any food, petrol, bills, water, rates, phone bill. Plus upcoming ridiculous increase in energy prices all add up to my mortgage stress."

Are you under mortgage stress?

We are here to support you with interest rate trends and guidance, education as well as cut through mortgage complexity. Whether you are considering fixing your rate, refinancing or looking for guidance and ways to get on top, we are here to help you.

17/11/2022

Experts are warning Australians to brace for more interest rate pain in the year ahead.

After the Reserve Bank of Australia (RBA) increased the cash rate to 2.85 per cent in its Melbourne Cup Day meeting, the major banks have adjusted their forecasts for when interest rates will peak.

Here’s what they are saying:

What the Big Four banks are saying
Westpac predicts rates could go as high as 3.85 per cent by March 2023, while ANZ forecasts the cash rate will take a little longer to peak at that level in May.

NAB’s forecast is a little more conservative. It expects the interest rate to hit 3.6 per cent by March 2023, which would push the average variable rate to 6.48 per cent.

For an average $1 million home loan, that equates to an extra $2,100 a month compared to earlier this year when the official cash rate was at a historic low of 0.1 per cent.

CBA expects interest rates to hit 3.10 per cent by the end of the year and remain steady for the first half of 2023.

This follows seven consecutive months of interest rate rises aimed at curbing soaring inflation, which currently sits at 7.3 per cent – Australia’s highest inflation rate since 1990.

How to navigate a higher rates environment
Larger home repayments coupled with higher living costs means many borrowers will be looking for ways to save money.

While refinancing to secure a more competitive rate might seem like an obvious step to take, borrowers shouldn’t rush into making this decision.

That’s because there’s a lot to consider. Does a loan with a lower rate provide the same features? Will the new loan suit the borrower’s needs over the long term? For example, can the borrower access equity from their property if they wish to renovate down the track?

With so much at stake, leaning on a professional to help guide you through the process can really pay off. Speaking with a broker about which loans will suit your needs could not only lead to a good financial outcome but can also provide valuable peace of mind.

In the same way, brokers can help new home buyers—to understand loan features, lending terms and navigate the special loan rates flooding the market—helping to make their home lending journey smoother.

We’re here to help
Contact us today to discuss refinancing or lending options for a new home.

05/07/2022

Mortgage holders have been dealt a fresh headache after the Reserve Bank lifted the cash rate again. This is what it means for your repayments.

11/06/2022

⁉️What Does A Mortgage Broker Do?

🙋🏼Mortgage brokers are home loan and mortgage advisors that help borrowers find the right finance option to purchase or refinance a property. They usually act as a bridge between a customer and a bank when applying for a home loan.

🙋🏼Here’s a look into what a mortgage broker does for borrowers:
* Compares suitable home loan options. Mortgage brokers work by understanding a client’s financial situation first. They then help them find the most competitive and appropriate financing option to meet their property goals. From there, they can help borrowers find and compare suitable home loan products from available lenders.
* Guides customers throughout the home loan application process. Mortgage brokers provide support to customers throughout the mortgage application process, managing it for the customers from submission until settlement, and even beyond. Mortgage brokers require you to complete a client brief and provide a range of supporting documents which then gives them a comprehensive understanding of your situation and can then discuss with you the most suitable loan products.
* Help borrowers understand complex financial agreements and terms. It can be challenging to read through financial jargon by yourself. Mortgage brokers can help with their market knowledge and expertise. They can explain home loan terms, requirements, and other financial agreements to borrowers, so that borrowers fully understand everything they need to know about their chosen home loan option.
* They work with banks and only earn commissions when their customers reach a settlement on their home loan. Brokers work with banks, and only get paid commissions from the bank when a home loan settles, which means their services are free to borrowers. If a customer refinances their mortgage within the first 2 years, brokers incur a clawback fee.

⚠️If you’re still hesitant to get a mortgage broker working for you, it’s worth noting that data shows the broker market share hit a record high, which points to the rising need for home loan guidance and consumer confidence in brokers.

The majority of survey respondents also feel that working with brokers made the process faster when dealing with financial institutions as compared to going directly to lenders, as the broker handles most of the back-and-forth with the financial institution.
A trusted mortgage broker will put your best interests first. Through their years of experience and market expertise, they are in the best position to explain to borrowers all the different loan products and features available to them. For customers, knowing exactly what they can expect from the loan agreement both in the short and long-term can help mitigate the risk involved, so they can move forward with their property goals in confidence.

⚠️It’s worth noting that brokers are generally paid the same from bank to bank, which means borrowers need not worry which bank your broker suggests to go with. You can trust that your broker will suggest the best home loan option that fits your circumstances.

🤝Mortgage brokers walk you through the home loan process from start to finish. They provide the best deal for you, instructing not only what you can borrow but how much you should borrow too.

09/06/2022

WHY YOU CAN TRUST RISE N SHINE
HOME REFINANCING

Refinancing your home loan means changing your existing loan for a new one and in most cases, with a new bank. We make this potentially stressful process easy for you. We do all the work - you reap the rewards. See how you could start saving on your home loan.

Please contact us on 0448223660.

07/06/2022

07/06/2022

07/06/2022

Dear all,

RBA INCREASES CASH RATE AGAIN!!

For the second month in a row, the Reserve Bank of Australia (RBA) has increased the official cash rate, this time by a further 50 basis points to 0.85 per cent, as it tries to curb inflation.

Most people were asking 'how high' not 'if' the RBA would increase the cash rate this month, so today's decision is no surprise. The 0.5 percentage point jump is the largest one month lift since the RBA pushed up rates by half a percentage point in early 2000.

The back to back rate rise is likely to have a significant impact on many mortgage holders, who may already be struggling with rising cost of living pressures.

If you are experiencing mortgage stress, rest assured we are here to help. We can talk through your options and make sure you're getting a competitive offer that suits your specific financial situation and goals.

Meanwhile, there have been other changes recently that could affect new borrowers. Some lenders have cut their debt-to-income (DTI) ratio limits, thereby tightening home lending rules amid expectations of more interest rate rises.

If you're in the market, speak to us on 0448223660 about how these changes could affect you.

07/06/2022

The decision comes amid a cost of living crisis.

01/06/2022

Under Labor’s scheme, the government would make an equity contribution of up to 40 per cent on the purchases of a new home, and up to 30 per cent on purchases of existing homes, with prices capped based on region.

For example, in Sydney and NSW regional centres the cap is $950,000 compared to $600,000 for the rest of the state. In Melbourne and Victorian regional centres the cap is $850,000, and $550,000 in the rest of the state.

The scheme is limited to 10,000 households per year, and is available to individuals who earn up to $90,000 and couples with a combined income of up to $120,000 who have at least a 2 per cent deposit.

01/06/2022

Following last Saturday win from the new Labor government. The Albanese Labor Government following the election has introduced the “Help To Buy” scheme from 1 Jan 2023, to assist Australians buy a home sooner, by cutting the cost of purchasing, by up to 40%.