The arrival of the new financial year has marked the arrival of the much talked-about tax cuts for Australian taxpayers.
What you may not have realised yet, though, is that the new tax rates will have an impact of the borrowing capacity of many Australian homebuyers, making this the ideal time to update the information you have provided to potential lenders in obtaining pre-approval as part of your house-hunting plans.
Whilst the amount of tax savings you receive will depend on your current individual earnings, the Tax Office has indicated that the reductions in your pay packet could range from a bit over $26 per week for the average part-time wage earner to close to $40 per week for the average full-time employee, and substantially more for higher incomes.
The reason this is relevant to homebuyers is that increased after tax earnings can directly impact the amount that lenders will be prepared to lend you on your home loan. In fact, a number of mortgage brokers around Melbourne have told us that some lenders have been factoring these changes into calculations when assessing a home buyer’s borrowing ability for several months now.
So, if you haven’t already done so, it might be a good time to get in touch with your broker to get an update on what your home buying budget looks like…and if you need an introduction to an experienced and helpful mortgage broker, don’t hesitate to ask, (particularly when their assistance won’t cost you a cent and could save you thousands)!
Of course, if you need any advice or assistance on finding the right property to move to, or getting the right result on your current home, the team at Ian Reid Buyer and Vendor Advocates are always ready to help, so give us a call on 9430 0000.
You’ll also find lots of helpful tips for homebuyers in our free booklet, “WINNING BUYER STRATEGIES” so make sure you download a copy while you’re here.
10/24/2024 
