Take control of your budget

January. It’s that time of year when many of us begin to feel remorse – not just about all those Christmas pies we overindulged on but also about our festive spending blowout.

Last Christmas, credit card spending plunged Aussies $24.3 billion deeper into debt. It’s a worry, particularly for those in the market for a property purchase in 2022.

If your finances have taken a pounding of late, here are some tips to help get you back on track.

Reassess your budget

It’s a new year, time for a new budget.

Create your 2022 budget, taking note of all income and outgoings.

Be sure to include fixed expenses (like rent and electricity), debt (credit card, loans, etc.) and unexpected expenses (car repairs and pet bills).

Hint: Moneysmart’s budget template is a great free tool to help you work out exactly where your money is going.

Shop around

While you are reassessing your finances, it’s a good idea to shop around to ensure you’re getting the best deal.

Get in touch with everyone from your insurance company to your electricity provider and ask whether they can offer you a discount or a better deal. You’d be surprised at what they’ll come back with if they think you may go elsewhere.

If you already have a mortgage, ask your finance broker to compare the market for you. It may be a good time to consider refinancing to a more competitive rate.

Get serious about saving

Consider what your ‘need to haves’ versus your ‘nice to haves’ are.

You might need to ditch your gym membership or reassess your social habits to supercharge your savings goals.

Remember, when you apply for a home loan, particularly as a first home buyer, lenders will want to see an established history of regular savings before they lend you the big dollars.

Set your savings goal

Set yourself a savings target so that you can factor it into your budget and work towards it.

If you’re planning a property purchase, we can run you through how much money you’ll need for your deposit. In general, we suggest aiming for 20% of the purchase price to avoid paying Lenders’ Mortgage Insurance.

Knock over your debts

Lenders assess your creditworthiness on the amount of money you already owe, your ability to repay your debts and your capacity to take on more debt.

Paying down any credit card debts or personal loans prior to applying for a home loan could improve your borrowing capacity and give you the best chance of being approved.

Hint: If you have several credit cards, consider cancelling them even if the balance is zero. Lenders consider the credit limit on your cards and count this as potential debt when approving loan applications.

Consolidate if it’s right for you

If you have lots of different types of debt, it may be worth consolidating.

With this option, you essentially roll your debts into one, usually using a loan with a lower interest rate. In some instances, you can roll them into your home loan if you have one, or a personal loan that has a lower interest rate overall.

There are pros and cons of debt consolidation, so it’s important to speak to your financial advisor or accountant about whether this is the right option for you.

Like to know more?

If you’re planning on applying for a home loan in 2022, speak to us about how to get your finances in order. We can give you a heads up about what lenders will be looking for and how to optimise your chances of being approved for a loan.

We’re here to help, so get in touch today!

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Yes, that’s right. You pay zero, zip, nada.

1st Street’s premium service comes at no cost to you! 1st Street is paid by the lender when your loan settles, however, this will not affect your interest rate or loan fees! It is often more cost-effective for a mortgage broker to process a loan rather than the lenders processing it themselves in-house. In fact, we often find that we can save you money by negotiating on your behalf.

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A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz