It’s the End of Financial Year (EOFY) season, which means there’s a rush to get file taxes and process refunds. But did you know it’s also a great time to get into the property market?
At No1 Property Guide, we deal with thousands of home buyers every year, so we see almost every situation possible. And one of the most common is when a client has received a commission or bonus increase since the last EOFY but it isn’t reflected on their PAYG statement.
This means we can’t utilise that increased income to improve their borrowing capacity and get them into their dream home. However, EOFY means new PAYG statements for everyone, which can mean an increase in your assessable income!
So How Can I Find Out Whether the EOFY is Going to Help Me Get Into My Own Home Sooner?
The best way is to complete Darren Walters’ unique pre-qualification process. Then, our experienced New Home Specialists can assess your situation and determine whether the EOFY has improved your borrow capacity.
Every situation is unique so getting a full understanding of your personal and financial situation is the first step. From there, we can assess your factual options and determine your position.
We’ve had many clients over the years able to improve their borrowing capacity after the End of Financial Year. Which allowed them to escape the rental nightmare once and for all.
There’s also the added benefit that most people will get a tax refund at the EOFY. Which, when you’re struggling to save a deposit, can be an absolute godsend.
What if My Income Hasn’t Changed Since the Last EOFY?
If you don’t think your income has changed since the last EOFY, don’t worry! A year is a long time, and many things can change in your personal situation that can still allow you to enter the property market.
Because Darren’s pre-qualification process takes your entire situation into account (not just your income) small changes in your personal or financial situation over the year can have a big impact on your borrowing capacity. In some cases, it can substantially increase what you can borrow and let you escape the rental nightmare forever.
It’s important to remember that your income isn’t the sole factor in your borrowing capacity. Even if your income hasn’t changed, if you’ve managed to put money into your savings or have paid off debts, your borrowing capacity could have increased.
Read More about – End of Financial Year:
- What Fees to Pay When Buying a House
- How Much Deposit Do I Need for an Investment Property?
- How Does a Home Loan Pre-Approval Work?
EOFY Also Means New Government Schemes & Grants
On top of the potential increase in income, the EOFY usually marks the roll-over and start of a range of government schemes and grants for potential home buyers. For instance, the Family Home Guarantee package starts accepting applications July 1st, 2021, and will provide single parents with another opportunity to enter the property market.
The federal government also recently announced the extension of the First Home Loan Deposit Scheme (FHLDS). They are opening it up to another 10,000 applicants for the 2021/22 financial year.
So, if you missed out on the FHLDS or were waiting for the Family Home Guarantee to get underway, the End of Financial Year is the perfect time to get into the property market.
What’s the Next Step Once I Know my Borrowing Capacity?
Once we’ve calculated your borrowing capacity it’s time to find the right house and land package. If you’ve already enquired through No1 Property Guide, our New Home Specialists have probably given you a general idea of what borrowing capacity you’d need to be able to build in your preferred area.
But a potential increase in your borrowing capacity means you might be able to finally build in your dream location!
Our New Home Specialists will tailor a house and land package that fits your borrowing capacity and needs. Or, if your borrowing capacity still isn’t quite there, they’ll guide you with any steps you can take to improve it. They can also suggest other ways we can help you get into the property market ASAP.
Regardless of your situation, your first step is to get pre-qualified. Without understanding your situation our New Home Specialists won’t be able to give you your factual options. Want to know more about our house and land packages throughout South East QLD, NSW and VIC? Then contact our New Home Specialists to get pre-qualified today.