Interviews & Press | Mortgage Choice South Melbourne
We've been luckily enough to be interviewed a few times for various news outlets across Melbourne, giving tips for homeowners and first home buyers. Check out some of our recent spotlights.
realestate.com.au: Slash five years off your home loan with this one simple trick
Published 4th Oct 2023 | Speaking to realestate.com.au, Mortgage Choice broker Paul Williams said borrowers who pay off their loan fortnightly instead of monthly could cut around five and a half years off the life of their loan. “Because in effect, you get a whole extra month’s payment per year. So rather than 12 monthly payments it’s 26 fortnightly payments," Mr Williams said.
"The default for all banks is automatic monthly repayments. Some banks make it a little confusing for people because that is all they offer. But what people need to understand is that so long as they meet the minimum contractual monthly mortgage payment, that is all the bank wants to see. You can still meet your minimum monthly repayment by paying fortnightly via a simple direct debit."
realestate.com.au: Skyrocketing cost of rent seeing tenants become homebuyers
Published 8th Feb 2023 | Mortgage brokers are seeing an increase in the number of tenants moving to buy a home on the back of rapidly rising rental prices. Paul Williams from Mortgage Choice South Melbourne has been consulting a number of clients who have decided to buy after their rents were increased.
"It's been the prompt for many people – the increase in rental prices and the lack of available properties," Mr Williams said. He noticed a particularly sharp uptick in December 2022.
"People have really tightened their spending in my view and now they're getting sick of renting because they're just waiting for their rents to go up," he said.
realestate.com.au: Mortgage Mates: the growing trend of buying with friends
Published 1st Feb 2023 | New research has found that a large number of Aussies are considering buying with a friend rather than a romantic partner as first-home buyers get clever with getting a foot on the property ladder.
Paul Williams of Mortgage Choice South Melbourne said he's noticed a huge uptick in friends purchasing together and seeking his services.
"I've had three clients who are friends buying together in just one week. To do three a week is unprecedented for us. Previously, you might do one every few months. I'm not sure whether it's a trend, but I'd be surprised if we don't see continued increase in enquiry," he said.
realestate.com.au: warnings of new year debt
Published 9th Nov 2022 | For the past year, the Australian Prudential Regulation Authority has required lenders to apply a 300 basis point serviceability buffer to home loan applications, to ensure borrowers would still be able to meet their repayments if interest rates rose by 3%. Previously, the buffer was 250 basis points.
With the RBA widely expected to raise the cash rate by 25 basis points to 3.1% in December, that buffer will have been fully absorbed.
“The 2.5% to 3% buffer exists for a very good reason,” Mr Williams said.
“I’d expect to see another couple of rate rises or so, which will mean that people will be over the buffer that was previously put in place.”
realestate.com.au: Young buyers remain reliant on the Bank of Mum & Dad, despite falling prices.
Published 25th July 2022 | South Melbourne-based mortgage broker Ben Williams says about 80% of his first-home buyer clients use the BOMD in some way.
“For the most part, it’s really the only way they can get into the market,” Mr Williams said. “I feel like they are being pushed out a little bit more, each couple of months, every year.”
Mr Williams noted the type of property being used as security was important, with some apartments not necessarily considered reliable equity in the current climate. “A freestanding house in a suburb is going to be a lot more favourable than an apartment in Southbank where you see the property trends of going up and down, and obviously COVID has hit Southbank really hard.”
Mamamia: I'm single mum with two kids and I just bought my own house. Here's how.
Paul Williams, mortgage broker at Mortgage Choice has helped many single parents buy a home. He has found it disheartening to see many lose confidence in their hopes of securing a home.
Williams explains it is also possible for single parents to purchase a home without using the Family Home Guarantee scheme. Recently he was able to assist a single mother, working part time to do this.
"We can look at 20 different lenders, and the borrowing capacity can range anywhere from $100,000 difference. When this mother went to her bank, they said no, but they didn't explain why. She was so upset but at least I gave her the confidence to keep trying and we looked at different lender options. Other banks said yes, and the loan settled. This mother is now living in that home, we're already seeing good growth in the value in her home. She feels good about herself," he says.
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