Sort My Finances - Mortgage Broker

07/09/2025

Sort My Finances - Mortgage Broker
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Ph 0433 532 926

We offer:
* Same day loan approvals
* Competitive interest rates
* Hassle-free application process
* Expert advice and support
* Access to a wide range of lenders

30/07/2025

How to know if you can afford an investment property

Buying an investment property can be a powerful wealth-building strategy, but only if you go in with your eyes wide open.
While property can generate long-term capital growth and rental income, it also comes with a range of financial responsibilities.
Here's how to determine whether you're financially ready to invest.

Understand your borrowing capacity

The first step is knowing how much you can borrow. Your borrowing capacity depends on your income, expenses, existing debts, and credit history. A mortgage broker can assess your situation and give you a realistic picture of what lenders could approve. In addition to reviewing your current income and liabilities, your broker will consider whether you plan to use a cash deposit or equity from an existing property.

They'll also run different scenarios to ensure your investment loan remains serviceable even during vacancy periods or when rental income fluctuates. They'll assess how much you can afford to spend on repairs or upgrades, and advise on whether an interest-only, fixed, or variable loan suits your strategy. Once your financial situation is clear, your broker can help you get pre-approved for an investment loan, giving you confidence when you start looking at properties.

Factor in upfront and ongoing costs

Investing in property isn’t just about mortgage repayments. There are significant upfront and ongoing costs to consider. These may include stamp duty, legal and conveyancing fees, loan setup fees, pest and building inspections, and possibly lenders mortgage insurance (LMI) if your deposit is under 20%.

Once you own the property, regular costs can include council rates, water charges, strata or body corporate fees, property management fees, landlord insurance, maintenance, repairs, and land tax in some states. If your property is vacant, you’ll still need to cover these costs without rental income, so creating a buffer to cover at least three months of expenses is highly recommended.

Budget realistically for repairs and renovations

It’s easy to underestimate the cost of repairs or upgrades. Whether it’s cosmetic work to boost rental appeal or essential repairs like plumbing or roofing, costs can quickly add up. Always overestimate renovation expenses and build a contingency fund. Renovations can also add to your borrowing power if managed correctly.
Your broker can help assess whether it's worth refinancing or topping up your loan to cover improvements. Just be sure to weigh the expected rental return and potential capital growth against the upfront cost.

Understand rental income expectations

When lenders assess your loan application, they factor in projected rental income, but often only at 70 to 80 per cent of the estimated figure to account for vacancy and expenses.
Check recent rental listings for similar properties in the area to get a realistic sense of income. Consider the suburb’s vacancy rate and how seasonal factors might impact demand. Some suburbs have high rental turnover or drop in popularity during certain times of the year.

Plan early

Working with a mortgage broker early in the process gives you clarity and confidence. The key is planning well, understanding your cash flow, and building a buffer for the unknowns.

Talk to a mortgage broker today to find out what’s possible for you.

17/07/2025

Need a Car Loan FAST?
Sort My Finances - Mortgage Broker
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Ph 0433 532 926

We offer:
* Same day loan approvals
* Competitive interest rates
* Hassle-free application process
* Expert advice and support
* Access to a wide range of lenders

14/07/2025

Housing values accelerate as interest rates fall

Australian housing values are gaining momentum with falling interest rates driving renewed growth in the property market.

According to the latest Cotality (previously CoreLogic) Home Value Index, national dwelling values rose 0.6% in June, marking the fifth consecutive month of growth. The June quarter saw values increase by 1.4%, up from 0.9% in the first quarter of the year.

Cotality's research director, Tim Lawless, said the February rate cut was a clear turning point for the market.

"The first rate cut in February was a clear turning point for housing value trends," Mr Lawless said.

“An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher.”

Despite the upward trend, current growth remains modest compared to previous cycles. The quarterly growth rate of 1.4% is significantly lower than the 3.3% peak recorded in mid-2023 and the extreme 8.1% quarterly peak during the height of the pandemic.

The housing rebound is occurring despite relatively low sales activity, with housing turnover through the first half of the year tracking at an annualised pace of 4.9%, slightly below the decade average of 5.1%.

Advertised stock levels remain tight, tracking 5.8% below the same time last year and 16.7% below the previous five-year average, creating a more balanced market for buyers and sellers.

Across individual capital cities, Darwin led quarterly growth at 4.9%, with dwelling values reaching a new record high, finally surpassing the mining boom peak recorded in May 2014. Perth and Brisbane followed with quarterly growth of 2.1% and 2.0% respectively.

The rental market has shown a notable slowdown, with the national rental index rising just 1.3% through the June quarter, the lowest Q2 change since 2020. Annual rental growth has eased to 3.4%, down from a peak of 9.7% in November 2021.

Mr Lawless put this down to affordability constraints despite consistently low vacancy rates.

"Rental affordability is a key factor keeping a lid on rental growth,” he said.

“Assuming the median rent and median household income, rental households are now dedicating around one third of their pre-tax income to paying rent.”

Looking ahead, several factors are expected to shape the housing market for the remainder of the year. On the positive side, interest rates are forecast to fall further, possibly to the early 3% or even high 2% range by year's end, which should improve consumer sentiment and borrowing capacity.

However, affordability constraints, elevated household debt levels, and a cautious lending environment may temper growth.

13/07/2025

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25/03/2025

14/05/2024

HOW TO QUICKLY IMPROVE YOUR CREDIT SCORE

If you’re applying for any kind of finance, ensuring you have a good credit score is one of the most important steps. Your credit score is a track record of how you manage debts. While it can be negatively impacted by late repayments, the good news is that it can also be improved by doing the right things. Here are some ways to turn your credit score around.

Pay bills on time

Late payments can significantly dent your credit score. To improve it, ensure you pay all your bills punctually. This includes credit card bills, loan repayments, and utility bills. Setting up automatic payments or reminders can help you stay on top of due dates and avoid late fees, thereby safeguarding your credit score from unnecessary harm.

Don’t use all your credit

It’s your job to show lenders that you're responsible with credit. Another way to do this is to not use up all the credit you have available to you. If your credit card balances are high, consider paying them down or spreading them across multiple cards to lower the overall utilisation ratio and potentially boost your score.

Correct errors on your credit report
Regularly review your credit report for inaccuracies or discrepancies. Mistakes such as accounts that don't belong to you or incorrect payment statuses can harm your credit score. If you spot any errors, dispute them with the credit reporting body to have them corrected. Addressing these inaccuracies can lead to a fast improvement in your credit score.

Limit new credit applications

Each time you apply for new credit, it leaves a mark on your credit report. Multiple applications within a short period can be viewed negatively by lenders and may lower your credit score. Try to hold back from unnecessary credit applications and focus on managing your existing credit accounts responsibly. By avoiding new credit inquiries, you can help safeguard your credit score from unnecessary fluctuations.

Maintain a diverse credit mix

Having a healthy mix of credit accounts, such as credit cards, personal loans, and mortgages, demonstrates your ability to handle various types of credit responsibly. However, avoid opening new accounts for the sole purpose of diversification, as this could backfire.

Review your report

Under Australian law, you're entitled to one free annual credit report from each credit reporting body. Reviewing your report allows you to identify areas for improvement and ensure the accuracy of your credit information.

11/04/2024

SIX WAYS TO PAY OFF YOUR HOME FASTER IN 2024

For most people, their home is their biggest expense and the sooner you can pay down the debt, the better off you’re going to be financially. Fortunately, there are a number of things you can do to cut years off your mortgage.

- Get a lower interest rate:

A lower interest rate isn't just a number on paper – it's a direct pathway to paying less over the life of your loan. While the idea of refinancing might initially seem like a substantial undertaking, the long-term financial benefits are something that you need to review regularly with your mortgage broker. However, refinancing isn't the only option. Negotiating with your current lender and asking them to match the interest rates offered to new customers can yield similar benefits.

- Take more frequent repayments:

Changing your repayment frequency from monthly to fortnightly might appear a small change, but it can make a significant difference. By opting for fortnightly repayments, you end up making an additional month's payment every year without straining your budget. This small adjustment accelerates your repayment schedule, bringing you closer to your mortgage-free goal.

- Consider making extra repayments:

Windfalls, such as work bonuses, tax refunds or inheritances can serve as important opportunities to make additional payments towards your mortgage. The beauty of this approach lies not only in shortening your loan term but also in reducing the overall interest paid.

- Open up a redraw facility:

While making extra repayments is important, there might be times when you need that money back. A redraw facility addresses this issue by pooling additional repayments, allowing you to access these funds when necessary. Although some lenders may charge a nominal fee for withdrawing funds, this feature can prove invaluable when financing renovations or handling unexpected expenses without erasing the progress you've made.

- Put your savings into an offset account:

An offset account is a financial tool linked to your home loan balance. It works like a transactional savings account by enabling you to withdraw funds for everyday expenses. The funds in your offset account directly reduce the interest charged on your loan principal, leading to potential savings.

- Decrease your loan repayment term:

As your personal circumstances evolve, so should your loan repayment term. If you find yourself in a more comfortable financial position, consider reducing your loan term – for example, from 30 years to 25 years. To make this feasible, you'll need to increase your minimum monthly repayment. If this adjustment fits comfortably within your budget, the benefits are significant – you can end up paying off your loan years earlier with substantial interest savings.

08/04/2024

FIVE WAYS MORTGAGE BROKERS CAN HELP BORROWERS

Over the past few years, borrowers have been challenged like never before with rapidly rising interest rates catching many off guard.

When interest rates are changing, borrowers need to be proactive in how they manage their mortgage. This is why working with a mortgage broker can be incredibly valuable.

Here are five ways mortgage brokers can help borrowers in the current environment:

Guidance on interest rates
With interest rates changing and a huge range of products on the market, it’s difficult for an average borrower to stay on top of what certain lenders are offering at any given moment. Mortgage brokers continually stay on top of both market trends and product offerings.

Whether interest rates rise or fall, mortgage brokers are well positioned to compare your options and find an appropriate solution to your needs. Mortgage brokers have their finger on the pulse when it comes to what the market is offering at any point in time.

Access to a variety of lenders
A significant advantage of working with a mortgage broker is gaining access to a diverse range of lenders. When interest rates rise, brokers can use their knowledge of different rate structures to compare lenders offering more favourable terms for various borrower profiles. Having more options to compare, means that borrowers will have the best opportunity to obtain a more suitable loan product.

Negotiating better terms
Contrary to common belief, mortgage rates are negotiable. Mortgage brokers advocate on behalf of borrowers, actively securing competitive rates and terms through effective negotiation. Leveraging their communication skills and relationships with banks, brokers can ensure borrowers receive the most favourable terms, contributing to significant long-term savings.

Financial solutions
Mortgage brokers understand that each borrower is unique and focus on building individualised strategies and solutions. By understanding personal financial circumstances, brokers can offer solutions that align with each borrower’s specific needs and goals.

Access to professionals
Beyond mortgages and lending, mortgage brokers are able to connect borrowers with a network of professionals, including financial advisors, accountants, etc. This additional layer of support ensures that borrowers not only receive guidance on their mortgage but can also access comprehensive financial advice from other professionals.

08/04/2024

THE BUILD-TO-RENT SECTOR SET FOR A STRONG 2024

The build-to-rent sector (BTR) is set for a strong year ahead, with Australia’s surging population growth likely to drive increased demand for both rental properties and student accommodation.

In 2023, the build-to-rent and purpose-built student accommodation industry recorded its best year yet, according to MSCI. Commercial residential deal activity increased 77% to just under $3 billion in total last year, with the BTR sector seeing over $2.2 billion in transaction volumes.

Head of Real Assets Research for the Pacific region at MSCI, Ben Martin-Henry, said BTR was a “bright spot” in a year that was challenging for many commercial asset classes.

“We’re starting to see more and more projects come out of the ground after being in development for a number of years,” Mr Martin-Henry said. “Given the population growth that we have had, there should be no shortage of people taking up this space, so it should continue to boom.”

BTR has benefitted from a number of government changes, including the withholding tax rate for managed investment trusts being cut, due to come into effect in July 2024. The changed capital works tax deduction depreciation rate has also assisted the sector.

Martin-Henry said 2023 saw some asset classes (like office buildings) experience value downgrades and slowing transaction volumes – but that might start to present opportunities for developers.

“The first quarter might be quite a big quarter and if it’s not, then we’re in for another slow year,” he said. “Last year, we had the big issue where the gap between what buyers were willing to pay and what sellers were willing to accept was so large, it was one of the largest gaps globally, so there was simply no movement.

“So, with valuations moving, which I suspect they have done, you will start to see sellers having to adjust their pricing if they want to dispose of some of these assets and that will start to spur the market.”

Mr Martin-Henry said higher interest rates are slowing the market down, but that could start to change in 2024. “Everything is taking a little bit longer to get across the line at the moment because of cost of debt issues and general uncertainty,” he said.