Whether you’re a homeowner, first home buyer, investor, or looking to refinance, taking a few simple steps now can help you save money and put yourself in a stronger financial position for the year ahead.

Here are eight smart financial moves to consider.

Review Your Home Loan

Interest rates and lending products change regularly. If you haven’t reviewed your mortgage in the last year, you could be paying more than you need to.

Ask yourself:

• Is my interest rate still competitive?
• Does my loan still suit my needs?
• Could refinancing help reduce my repayments or unlock equity?

Even a small reduction in your interest rate may save you thousands over the life of your loan.

Set Clear Financial Goals

Having a plan makes it easier to stay on track.

Think about what you want to achieve over the next twelve months:

• Buy your first home
• Upgrade to a larger property
• Purchase an investment property
• Renovate your home
• Pay off debt faster
• Build your savings

Once you know your goals, you can create a financial strategy to help you achieve them.

Create or Update Your Budget

A fresh financial year is a great time to review your income and expenses.

Look for areas where you can:

• Reduce unnecessary spending
• Increase your savings
• Pay extra towards your mortgage
• Build an emergency fund

Small changes each month can make a big difference over time.

Check Your Borrowing Power

f you’re planning to buy property this year, it’s worth understanding how much you may be able to borrow before you start searching.

Your borrowing capacity can change depending on:

• Income
• Existing debts
• Living expenses
• Interest rates
• Credit history

Knowing your borrowing power helps you plan with confidence.

Make the Most of Your Home Equity

If you’ve owned your property for a while, you may have built equity that could help you achieve your next financial goal.

Home equity may be used for:

• Buying an investment property
• Home renovations
• Debt consolidation
• Purchasing another home

A mortgage broker can help you understand your options and whether accessing equity is right for your situation.

Review Your Insurance

The new financial year is also a good reminder to review your insurance policies.

Consider checking your:

• Home insurance
• Contents insurance
• Income protection
• Life insurance

Making sure your cover is up to date can help protect you and your family if circumstances change.

Improve Your Credit Position

A healthy credit profile can improve your chances of securing a competitive home loan.

Simple ways to improve your financial position include:

• Paying bills on time
• Reducing credit card balances
• Avoiding unnecessary debt
• Keeping your personal information up to date

These habits can strengthen future lending applications.

Speak with a Mortgage Broker Before Making Big Financial Decisions

Whether you’re buying, refinancing, investing, or simply reviewing your options, getting professional guidance can help you make informed decisions.

Every borrower has different goals, and the right loan structure today may help support your plans well into the future.

The beginning of a new financial year is the perfect time to take control of your finances and plan for what’s next.

At QMP Financial, we help Australians navigate the home loan process with personalised advice tailored to their financial goals. Whether you’re purchasing your first home, refinancing an existing loan, or growing your property portfolio, we’re here to help.

Book your free finance consultation today and let’s build a strategy that works for you.

The post New Financial Year, New Financial Goals: 8 Smart Money Moves to Make This Financial Year first appeared on Mortgage Brokers Brisbane Gold Coast.

What’s HEM?

Think of HEM as a yardstick for financial assessment tailored to different households. Crafted by the Melbourne Institute, it utilizes data from the Australian Bureau of Statistics to estimate the average expenditure on basic necessities (excluding rent/mortgage). Lenders employ this benchmark to evaluate whether you can comfortably handle the loan you’re seeking.

Hem Isn’t One Size Fits All

While HEM provides a general guideline, your actual spending may diverge significantly from it. But fear not, lenders don’t rely solely on HEM. They delve into your bank statements, comparing and usually using the higher figure for their calculations. It’s all about ensuring you’re not stretching yourself too thin post-mortgage.

Top HEM Tips to Amp Up Your Borrowing Power

Looking to make HEM your ally? Here’s how:

• Know Your Spending: Scrutinize your bank statements before applying. Highlight any major one-off expenses to provide context and avoid inflating your monthly costs artificially.
• It’s for Your Protection: Despite feeling intrusive, this scrutiny is for everyone’s benefit. Lenders aim to shield you from biting off more than you can chew.
• Seek Expert Help: As your home loan specialist, we know precisely how to navigate your statements to streamline the HEM process. Consider us your allies in securing that loan.

The Fine Print

It’s vital to understand HEM’s limitations:

• No Frills: HEM focuses strictly on absolute and discretionary basics like food, utilities, and some entertainment. It excludes expenses like private school fees, life insurance, super contributions, owners’ corps fees, etc.
• Not All Expenses Count: Unlike living expense calculators, HEM serves as a statistical benchmark for lenders, not a personal budgeting tool.

EM is merely one piece of your home loan puzzle. Lenders also scrutinize factors like income, debt, credit history, and more. Your financial habits matter:

• Live Within Your Means
• Save Diligently
• Tackle Existing Debt

In essence, while HEM may seem like an obstacle, understanding and navigating it strategically can enhance your chances of securing that dream home without compromising your financial well-being.

Ready to navigate the HEM maze and secure your dream home hassle-free? Contact us today, and let’s turn your homeownership dreams into reality!

The post HEM: The Hidden Key to Homeownership Happiness first appeared on Mortgage Brokers Brisbane Gold Coast.