MANAGING YOUR HOLIDAY SPENDING WHILE SAVING FOR A HOME DEPOSIT

The festive season is a great time of year, but it also presents some unique challenges for those saving for a home deposit. However, with careful planning and disciplined spending, you can enjoy the holidays without putting your property goals on hold; or derailing them altogether.

Here are the strategies to maintain your savings momentum during the Christmas period, despite the gift guilt and the dopamine temptations.

WATCH OUT FOR CREDIT CARDS

Credit cards can have a big impact on your home-buying journey in a number of ways. For example, they allow for impulsive spending during the festive season, which on its own can really hurt your chances of saving for a home deposit. If you’re applying for a loan, bank lenders assess credit limits as potential debt, which affects your borrowing capacity. Finally, your recent spending history (usually three months) is inspected closely during loan applications. The better you can save, the better your application will look to a lender. Consider eliminating unnecessary credit cards and using cash or debit cards instead. This not only helps control impulse spending, but also improves your position with potential lenders.

CREATE A BUDGET
Creating an effective budget is crucial for successful saving. One way to do this is to set up multiple debit cards for different spending categories, then allocate specific amounts for essentials, discretionary spending, and bills. Transfer predetermined amounts weekly, while keeping your home deposit savings separate. This method provides clear spending boundaries and helps prevent holiday season budget blowouts.

STAY DEBT-FREE
Some holiday spending and travel is unavoidable, so if you can’t save during this period, avoid taking on new debt, or neglecting your existing debt. Remember, personal loans and credit card debt require regular repayments, so keep them up. Even small weekly repayments can significantly impact your borrowing capacity, in a good way. Lavish holiday expenses should be put off until after securing your first home. You’re far better off focusing on your long-term property goals rather than short-term pleasures.

MORTGAGE BROKERS THRIVE AS MARKET SHARE REACHES NEW HEIGHTS

The mortgage broking industry is going from strength to strength, now capturing 74.6% of the home loan market, despite interest rates remaining at decade-high levels.

Data from the MFAA reveals that brokers are writing more than seven out of ten home loans, with refinancing emerging as a key driver of growth in the current economic environment.

Using a mortgage broker is a great way to compare your Options, and there are a number of reasons why borrowers are choosing not to deal directly with lenders.

ACCESS TO MORE OPTIONS
Mortgage brokers have access to a broad panel of lenders, ranging from major banks to specialist lenders. This means they can compare hundreds of products to find one that matches your unique financial situation. Unlike going directly to a single bank, working with a broker ensures you’re not limited to the products of just one institution.

EXPERT GUIDANCE
Working your way through the home loan process on your own can be overwhelming, particularly for first-home buyers. A mortgage broker provides personalised guidance, explains the finer details and helps you understand the terms and conditions associated with different loans. This professional insight can be invaluable in making informed decisions based on your personal circumstances.

TIME-SAVING CONVENIENCE
Comparing home loans and managing the application process can be time-consuming. Mortgage brokers handle the legwork for you, from submitting applications to liaising with lenders. This convenience frees up your time and ensures your application progresses smoothly.

SUPPORT DURING THE ENTIRE PROCESS
A mortgage broker’s support doesn’t stop once your loan is approved. They often assist with post-settlement queries and can help you reassess your loan in the future to ensure it remains competitive. This ongoing service can make a significant difference in managing your finances over time. Mortgage brokers are also able to offer guidance about obtaining lending in the future so you can continue to build your property portfolio, or upgrade your home when the time is right.

GOVERNMENT’S ‘HELP TO BUY’ SCHEME SET TO BEGIN

The Australian Federal Government has unveiled its ambitious ‘Help to Buy’ scheme, designed to make homeownership more accessible for low and middle-income Australians through a co-purchasing model.

The initiative, set up to support 40,000 buyers over the next four years, aims to address the growing housing affordability crisis. Under the scheme, the government acts as a silent partner in the home purchase, easing the financial load for buyers.

The scheme allows eligible Australians to purchase property with the government contributing up to 40 per cent of the purchase price for new homes and 30 per cent for existing properties. Buyers can enter the property market with as little as a 2 per cent deposit, and unlike traditional co-ownership arrangements, no interest is charged on the government’s stake.

The government’s stake is repaid when the property is sold or when the buyer is ready to purchase the government’s share outright. For example, a buyer purchasing a $500,000 home with a 40% government contribution would need to borrow just $300,000, substantially reducing their mortgage repayments. This will significantly reduce mortgage burdens, the Government claims.

The scheme also includes location-specific price caps to ensure fairness across the country. In New South Wales, for instance, the Help to Buy price cap is $950,000 for homes in capital cities and regional centres, while in Queensland, the cap combined as a household. Applicants cannot own property in Australia or overseas at the time of applying.

While the scheme provides significant support, buyers must also consider that any increase in property value will see the government’s equity share grow accordingly. For example, if the government owns 30 per cent of a property and the home’s value increases by $100,000, the government’s share grows by $30,000. Buyers should also be aware of annual reassessments of their financial capacity and the property’s value, which could affect their eligibility.

The Help to Buy scheme will roll out at different times across the country. Buyers in the Northern Territory and the Australian Capital Territory can access it immediately, while other states require legislative changes before it can begin. The government aims to assist 10,000 buyers annually, gradually expanding access to support more Australians.

ALTERNATIVE PATHS TO HOMEOWNERSHIP GAIN MOMENTUM
Traditional homeownership paths are changing, as Australians increasingly look at new ways to enter the property market, amid rising living costs and affordability challenges.

According to Helia’s latest Home Buyer Sentiment Report, only 15 per cent of first-home buyers believe they can save a full 20 per cent deposit of a property, leading to increased interest in alternative finance options like lenders mortgage insurance (LMI).

The report reveals that 84 per cent of first-home buyers preferred to purchase sooner with a smaller deposit, rather than delay their purchase to save more.

Cost of living has overtaken housing prices as the main barrier to homeownership. Greg McAweeney, Chief Commercial Officer at Helia, said LMI has become a popular solution. “LMI allows homebuyers to secure a property with as little as a 5 percent deposit, eliminating the delay caused by waiting years to save a full 20 per cent,” Mr McAweeney said.

Changing family dynamics
While family support remains key for young buyers entering the property market, this approach is evolving. Direct contributions to deposits from parents dropped from 60 per cent in 2023 to 47 per cent in 2024. Instead, families are finding alternative ways to assist, such as helping with ongoing costs and covering LMI fees, the report finds.

LOOKING BEYOND CITIES
Affordability challenges are pushing buyers to consider interstate purchases, with 40 per cent of first-home buyers now exploring this option. The trend of ‘rentvesting’—buying an investment property in a more affordable location while renting elsewhere—is also gaining traction. PropTrack data reveals that a median-income household earning over $112,000 per year can now afford just 14 per cent of homes nationwide, compared to 43 per cent three years ago.

THE EVOLVING ROLE OF MORTGAGE BROKERS
These shifting trends have transformed the role of mortgage brokers. They are no longer just loan facilitators but also offer expert guidance, helping buyers to navigate modern homeownership options. The Helia report shows that 91 per cent of first home buyers plan to use a mortgage broker for their expertise, time savings, and access to better deals.

“Mortgage brokers play a vital role in educating clients about the benefits of LMI as a viable alternative to traditional savings strategies,” Mr McAweeney said. “By not offering LMI as an option, mortgage brokers risk missing clients who might otherwise have been able to afford a mortgage with a smaller deposit and LMI.” he said.

HOW TO GET A BOAT LOAN THIS SUMMER
With summer well and truly here, and perfect boating weather on the horizon, many Aussies are looking at the best way to finance their dream vessel. Securing the right boat loan can save you thousands over the life of the loan. The right loan will also see you out on the water, skipper of your own vessel, a lot sooner. Here are our key steps to getting on your way:

UNDERSTANDING YOUR FINANCING OPTIONS
The boat loan market offers two primary types of loans: secured and unsecured loans. Secured loans use your boat as collateral, and typically offer lower interest rates, making them ideal for newer vessels. Unsecured personal loans don’t require collateral, so if you default on your loan, you will still own your boat. But an unsecured loan might have higher rates than a secured loan. You will be able to make an informed decision as to which loan is right for you, based on your circumstances and the type of boat you’re purchasing.

Modern boat loans can include more than just the vessel’s purchase price. Consider incorporating additional costs–such as accessories like the boat cover, safety equipment and even your trailer–into your loan package. This approach can help you better manage your overall investment, while maintaining a single monthly payment.

PROFESSIONAL EXPERTISE
Working with a finance broker gives you access to multiple lenders through a single point of contact. Gaining access to their industry knowledge and relationships can be invaluable in working your way through the loan process. Your broker can quickly compare rates and terms across numerous lenders, saving you time and potentially securing better deals than you might find on your own.

MINIMISING INTEREST COSTS
The key to reducing your loan costs lies in securing the loan product that best suits your unique financial needs. Focus on improving your creditworthiness before applying and consider the timing of your application relative to market conditions.

Your finance broker can help identify which lenders are offering the most competitive rates at any given time and compare your options.

STRUCTURING YOUR REPAYMENTS
Your repayment strategy can significantly impact the overall cost of your loan. You need to consider factors such as the loan term length, deposit amount and payment frequency. While longer terms offer lower monthly payments, they result in higher total interest costs.

Finding the right balance between affordable monthly payments and total loan cost is vital and something your finance broker can work through with you.

SIX TIPS FOR GRABBING A NEW YEAR CAR BARGAIN

The start of a new year presents one of the best opportunities to secure a bargain on both new and used
vehicles. While many people are off on holiday, you can use this opportunity to grab a great deal on a car in 2025.

Here’s how to navigate the car-buying process and secure a deal that best suits you.
Take advantage of year-end clearance sales
Dealerships are eager to clear their previous year’s inventory as the calendar ticks over. This urgency creates many discounting opportunities, with dealers offering significant price reductions, complementary accessories and drive-away pricing. Focus on vehicles with the previous year’s plate, as these typically come with the biggest discounts while still being essentially new.

Consider private sellers
Don’t limit yourself to scouting the dealerships for a bargain. Private sellers who listed their vehicles in the previous year are often more motivated to sell and may be more flexible on price. Check listing dates and use this information during negotiations. When buying privately, consider obtaining a warranty and a roadworthy certificate from your seller, to protect your investment.

Explore business vehicle options
For business owners and ABN holders, the new year offers additional advantages. Purchasing early in the year can provide six months of tax benefits, and various financing options are also available, including no-deposit solutions.

Avoid dealership finance traps
Be cautious with in-house dealership finance, as these arrangements often come with hidden fees, limited lender options and inflexible terms. They typically require excellent credit scores and may include significant balloon payments. Consider working with a finance broker who can compare your options across multiple lenders and provide more flexible terms.

Timing your purchase
The first few weeks of the year are crucial for finding the best deals. Visit dealerships in January or February, specifically asking about run-out models. All vehicle types, from small cars to SUVs and trucks, are typically included in these clearance sales.

Secure pre-approval first
Getting finance pre-approval before starting your car search gives you a clear budget and a stronger negotiating position.
This approach also simplifies the purchase process and helps avoid disappointment from overextending yourself financially.