Paid parental leave and home lending
A person has asked if I know anything about Westpac changing their attitude for home lending to people on paid parental leave?
Yes, I have, and it is a great move by Westpac who have always been leaders in this area.
Westpac was one of the first publicly listed companies to introduce paid parental leave in 1995 and the first to introduce superannuation on unpaid parental leave to eligible employees in 2010.
What they are offering now is that new parents will have their paid parental leave and return to work income recognised when they apply for a home loan.
They have done this because their research found that 88 percent of Australians believe a bank should look beyond an individual’s short-term situations, such as parental leave when assessing borrowing potential.
Their research also showed that 63 percent of females who own a home believe their needs and requirements from their home grow as their family expands.
You don’t need to be a rocket scientist to work this out. In this day of technology, a statistic has to be scientifically proven before it factors into producing new lending products.
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Residential Investment Current Interest Rate
to-lock-in-interest-rates/”>Is now the time to lock in interest rates?
I attended the Emerald show last week. It is always a chance to catch up with clients and discuss current property locations and lending products.
The best deal I was able to offer at the show was a magnificent 5-bedroom executive home at North Harbour Brisbane for under $500,000. This is a great deal when the average price in Brisbane is now approximately $625,000.
Examples of investor contributions for someone in the $80 – $180 tax bracket
Full price $497,950 on nil deposit, borrowing legals, stamp duty etc, paying it off principal and interest, only $162 per week.
For someone borrowing 90% paying for legals and Stamp duty, only $104 per week.
For someone borrowing 100% interest only in arrears, the investor contribution would be nil and the rent and tax refund pay for interest and all outgoings like rates, insurance etc.
Yes, these figures are correct. I have never seen interest rates so low or rents so high.
By the way, our famous free raffle at the Emerald show was won by David Sutherland from Emerald who chose the giant bottle of bourbon.
If you are interested in enquiring about buying property to start your Residential Property Portfolio, please contact our office to schedule a free, no-obligation consultation.
If you prefer to listen here is my radio interview on Emerald 4HI:
Steve Taylor
At the helm of Steve Taylor & Partners, Steve Taylor has been delivering expert advice and product knowledge to clients for over 30 years. Steve Taylor & Partners provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed.
