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It’s no secret that Sydney’s housing market is booming. Across Australia, more homes are being built than ever before, and Sydney housing prices were up more than 13 per cent during the first half of the year. Needless to say, those who already have equity in the market are delighted. But for those who are still looking to purchase an affordable home in Sydney, the dynamic is slightly different. As property prices steadily rise, some would-be buyers are finding themselves priced out of neighbourhoods where they were hoping to live. This has left many unsure of where to focus in their search for a new home in Sydney. With that in mind, we’re going to shine a spotlight on a few of Sydney’s most affordable suburbs: Whether you’re a first-time buyer or a seasoned property investor in Sydney, ACA Mortgage Solution can help you with financing the property. Our home loan experts will consult more than 40 mortgage providers and hundreds of home-loan options to find you the best deals. Contact us H

What is the difference between an Advertised Rate and a Comparison Rate? September 25, 2019 Some home loans come with incredibly low-interest rates. However, after factoring hidden fees and ongoing charges, the interest rate is not as impressive as you initially thought. That’s why it’s mandatory for lenders to publish a comparison rate. In this article, we’re going to look at the comparison rate, and how it relates to the advertised rate. There’s more to your loan than an interest rate Your interest rate is the most important indicator of your total loan amount.  Regardless of the purchase price, the higher the interest rate, the more you will pay. For this reason, prospective buyers shop around for the best interest rates, before signing on the dotted line. However, the interest rate is not the only determining factor in the total cost. Other fees and expenses may be incurred periodically over the life of the mortgage, and these are going to contribute to a higher all-in purchase price. The problem is that it’s easy to overlook these additional fees when shopping around for a mortgage. In the past, this has led some less-than-scrupulous lenders to hype exceptionally low interest without drawing attention to the extra hidden fees and charges. Buyers who haven’t taken notice of the additional charges could end up getting a significantly less attractive deal on their mortgage than anticipated. Comparison rates level the playing field The reality of hidden fees and additional expenses is why comparison rates are available. Today, all Australian lenders are required to display a comparison rate alongside the advertised rate. This comparison rate comes in useful – especially when the advertised rate seems too good to be true – because it takes those extra fees and charges into account. The comparison rate helps borrowers get a better idea of the type of loan they’re considering. But there are a few things to keep in mind regarding the comparison rate. The first is that – as a point of reference – it may not fully relate to the mortgage you’re considering. First of all, comparison rates usually apply to an example loan of $150,000 over a period of 25 years. You’ll have to read the fine print to be certain of this information. The reality is that most homebuyers borrow much more than $150,000. You may also be considering a mortgage of a different term length. To that end, the comparison rate should only serve as a point of reference. When consulting this rate, always pause to consider how the example differs from the loan for which you are you are applying. Published comparison rates have the lenders’ best interests in mind The law requires that financial institutions publish a comparison interest rate as a form of transparency. It’s a legal requirement and a kind of protection for borrowers. As a leading specialist Sydney Mortgage broker, at ACA Mortgage Solution, we strive to ensure that our clients fully understand the terms and repayment conditions of each possible loan we present. If you need any help interpreting the comparison rate on a particular loan package you’re considering, please don’t hesitate to contact us.

October 2, 2019 When buying a home you will be faced with several decisions, specifically, whether the loan interest is fixed or variable. There are benefits to both types of mortgages, and the best option depends on your particular situation and financial goals. Uncertainty in fluctuating interest rates can create problems for both homeowners and financial institutions alike. Fixing your interest rate or allow it to fluctuate with the market can have significant repercussions down the road. In the following article we will explore the major differences between fixed and variable loan structures. Understanding fixed rate home loans Fixed rate home loans have an interest rate or a pre-determined period. The homebuyer can know from day one exactly how much interest they are going to pay over time. On the whole, these loans are less flexible – both regarding the interest rate and the repayment structure. The main benefit of a fixed rate mortgage is the economic certainty. You can budget payments knowing eactly how much interest that will accrue over the term of the loan. However, financial institutions are less likely to allow extra repayments over the term of the loan – which could be a downside further down the road as your financial situation improves. Fixed rate loans make the most sense when interest rates are currently rising. However, it’s worth noting that rates are almost sure to drop again at some point in the future. With a fixed rate, you won’t be in a position to benefit from these fluctuations. Variable rate loans follow the market For those with a slightly greater appetite for risk, variable rate loans put buyers in a position to benefit from future drops in interest rates. If rates are currently high, then a variable rate may appear more attractive – especially for investors who are expecting rates to drop again soon. While signing up for a variable rate may feel like a risk, research suggests otherwise. Research conducted by Canstar – which compiled mortgage and interest data over the past 20 years – found that using a fixed rate loan to lock in lower interest rates had less than a 50 percent chance of success. More pointedly, the research found that homebuyers who opted for a variable rate fared better over the 20 years in question. Along those lines, there are certainly situations in which a fixed loan could fare better over the life of a mortgage. However, if you were strictly playing the odds, a variable rate has a better chance of overall success. ACA Mortgage Solution will secure the best rate for you Our Mortgage brokers specialise in securing the best home loan packages for our clients. We will help you decide whether a fixed or variable rate is a better option. Contact us today to learn more about the loan options available to you.