It seems the RBA is still hell-bent on causing pain to mortgage holders with an almost unhealthy obsession with solely focusing on the inflation figure, and Tuesday’s rate rise was not only a huge shock to many but also displayed a huge lack of patience which is quite concerning.
The banks are fully aware of the strain being felt by many, especially those who purchased at the beginning of last year and are very open to talking with you about ways you can manage your repayments through – what we believe (and hope) to be – a temporary situation. If this is you, it’s important you get in touch with your bank as soon as possible to see what options you have.
If you’re worried about interest rates continuing to increase and are interested in fixing your loan, I’ve updated my “should I fix” calculator and have run through the results in a video you can watch here – https://www.loom.com/share/f49e35ad3426468e88cd77a72dfca2c2
There have been some other updates as well that are worth sharing, and I’ve summarised them below;
- NSW Stamp Duty Changes for first home buyers
The Land Tax option (buying up to $1.5mil and paying an ongoing land tax instead of upfront stamp duty) officially ends on the 1st of July, so if you exchange contracts after this date, the new stamp duty rules will apply. We haven’t seen any official communication go out yet, but the OSR website is stating that “From 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000, and the concessional rate will increase from $800,000 to $1 million”. This is based on the contract exchange date, not the settlement date, so this is important to consider if you’re looking to purchase a home before or after this date.
For contracts entered into on or after 1 July 2023, purchasers under the above schemes, grants or exemptions must move into their homes within 12 months of settlement and live in the property for a continuous 12-month period to satisfy the residence requirement (this was previously 6 months).
- Lender rebates are ending
I’ve sent an email about this previously, and a few more lenders have also announced they are withdrawing their offers. Some have actually withdrawn their offers prior to their previously announced end date, so there are no guarantees on when the rebates will officially end.
- Looking to build?
Construction prices still seem to be going up, and we’re seeing a lot more variations in contracts based on the changes in prices, plus massive delays. It’s extremely important you have a very good buffer of savings or equity if you’re looking to build just in case.
- Our SLAs
We’ve unfortunately had a couple of staff leave us, and another on extended leave, so it’s all hands on deck here at Peasy!
We’re working extremely hard to provide quick responses and turnaround times that you’ve grown to expect from us whilst still maintaining our high level of diligence and accuracy, although there may be times when things are taking a little longer than usual. At the same time, we’re getting a lot of last-minute requests that come with unrealistic deadlines, and we’re trying our best to accommodate everyone so we don’t have to choose one over another.
I just ask that you bear with us if there are any delays and that you be as prepared as possible and apply for your preapproval before you find the home of your dreams.
Any questions, feel free to reach out!