That’s because while a $10,000 boost was announced to stimulate the struggling housing sector for new home buyers, existing home owners hoping to upgrade or downsize to another property are facing stamp duty increases.

So as both measures are set to come into effect in August, there’s now a little extra incentive for existing home buyers to trade properties before then – whereas those looking to buy a new home would be better to hold off purchasing for the time being.

These new announcements are only likely to affect a small portion of buyers who are in the position to act fast and have their finances ready to go but it does mean good news for first home buyers.

The government will be offering a $10,000 building boost to existing home owners to try to stimulate the construction industry, although it is likely to discourage buyers signing an off-the-plan sale or building contract until August.

The grant is restricted to properties under $600,000 and does not apply to renovation work.

New home buyers will have to sign a contract between August and January and have six months to commence the work and another 12 months to complete the work.

In summary the key property related announcements were:

First home buyers purchasing a new home

- No mortgage duty or stamp duty for properties under $500,000;

- $10,000 Queensland Building Boost for newly constructed properties valued up to $600,000;

- $7000 First Home Owner Grant (remains).

First home buyers purchasing existing home

- No mortgage duty or stamp duty for properties under $500,000;

- $7000 First Home Owner Grant

Existing home owners buying a new home

- Stamp duty increase of up to $7175;

- $10,000 Queensland Building Boost for newly constructed properties valued up to $600,000.

Existing home owners buying existing home

- Stamp duty increase of up to $7175 for properties.

Sure, borrowers at first glance look as if they’re getting off scot-free if they wish to change lenders in order to shop around and get a better deal, but there’s a significant and detrimental domino effect that will follow.

And one of the main issues is that there is still nothing tangible being done to support the non-banks who will, as a result of the regulations, watch the majors go to their Plan B.

The reality is that the big banks will have to recoup those fees somewhere – after all, there are shareholders to look after. So stay tuned for some restructuring and merchandising of lost costs across loans and other financial products.

Upfront fees would be the likely place to restructure those costs – and that’s where first home buyers will really feel the pinch.  After having saved hard for that deposit, they can watch to see it eroded through a potentially larger upfront fee.

It’s clear to see what we think here at Resi.

We’ve been structuring our loans for the past 25 years with low or no fees and rates significantly below that of the major banks and as a result, our customers stay loyal to us.

So we’ll be making our thoughts clear, so you can continue to reap the benefits.

1. All eyes watching to see what the Reserve Bank does on December 7
2. Watching to see how the major lenders and other lenders react
3. Borrowers looking to see how both standard variable and fixed rates move
4. Existing and potential first home owners watching how the property market in general reacts.

And although the property market is about to go into hiatus for the Christmas/New Year period there’s no question the rate rises already delivered this year have done their job in cooling down the market with lower auction clearance rates and prices, so any further impact for the rest of the year is likely to be minimal.

However the current case of the rate wobbles can be cause for new opportunity as rates have time to settle into their new levels for the next two months until the Reserve Bank meets again in February.

In fact, it’s a perfect time to watch what has happened to all rates over this year and have a look at the new playing field that has opened up for the benefit of borrowers.

It’s a buyers market.

 So what type of loan structure is right for you – right now?

 The answer to this will largely depend on where you are in the home loan cycle and how flexible you wish to be in the years ahead in relation to managing your mortgage and finances  

 And the important lesson is before you jump in the deep end to understand the various loan structures available and what they can offer you before you decide which one is your perfect match.

 Standard Variable Rates

 These rates are the most popular among borrowers as they largely mirror what’s happening to official interest rates and also provide the most flexibility in relation to the range of features attached to the loan.

 Average standard variable rates at the moment are sitting around 2.5 percent above the Reserve Bank official cash rate benchmark but can commonly vary by half a percent between many major lenders.

 When shopping around for a standard variable rate, you should note the comparison rate on the loan, which by law must be advertised alongside the standard variable rate. The comparison rate shows the annual percentage rate of the loan when compulsory fees are included and gives a true cost of the loan.

 However the comparison rate doesn’t include any costs that may be incurred during the period of the loan such as redraw, early termination fees and dishonour fees etc so you need to be aware of this when you make your final choice.

Fixed Rates

Rates on fixed loans are generally set for a period of one, two, three or five years, with some lenders offering fixed loan rates beyond that period.

And this appeals to people who want certainty on their loan repayments, particularly in a time of rising rates.

But the timing of when you fix your rate is often critical and will determine where your fixed rate compares to standard variable rates on the market at any time during the loan period.

With fixed rates, lenders predict ahead where rates will be over the term of the loan period and as a result fixed rates can vary substantially between loan providers. They also usually have high break fees associated with them in order to deter borrowers from switching out of the fixed loan if they find they have locked into a rate too early, and want to change over to another loan.

For this reason many borrowers choose to hedge their bets and fix only part of their loan (known as a split loan), leaving the rest of their loan on a standard variable rate to give them the best of both worlds.

With fixed rates, someone always loses – either the lender or the borrower –  and it’s wise to remember that the lender has many tools at their disposal to make a more accurate call of where rates are headed.

Introductory or honeymoon Rates

Unlike fixed rates for one or two years, these rates are normally variable and are considerably lower than the average standard variable rates on the market i.e. half to one percent for a defined period of time.  This particularly appeals to many first home buyers and others looking for a good head start.

Introductory rates are routinely offered to borrowers for 24 month periods but can also be offered for 12 or up to 36 months.  It’s important to remember with introductory rates, that they will move up and down with interest rate movements, but will always remain lower than their revert rate.

After the introductory or honeymoon period the rate then reverts to a variable rate set by the lender, so anyone considering choosing an introductory home loan should ask the lender what the ‘revert rate’ on the loan is and how it stacks up against their other variable rates in the marketplace.  

The revert rate is important in determining how much you will pay in interest over the life of the loan.  Because if the revert rate is uncompetitive i.e. higher than most variable rates available, the value of the whole package can be more expensive over time.

Currently there are some very good introductory deals on the market for 12-24 months with low revert rates and low to no fees, so you should check both of these key features and also check the lenders comparison rates on the loan.

Capped Rates

This loan style was quite popular in the 1990s and was well-liked in times of rising rates.  Currently there are only a few products of this kind available – so the resurgence in popularity is slow.

The capped rate is usually associated with a variable loan structure but there is a ‘cap’ to how high that rate can go during a certain time period during the course of the loan.   With this loan, the rate can’t go higher than the capped rate for a set period, however it may move up and down below it.

The term that the capped rate may be in place for may vary between loan providers, but usually ranges from around 24-36 months from settlement.  The attraction exists because the capped rate provides security and peace of mind in rising rate environments, and also offers the flexibility that a standard variable rate loan has in relation to loan features.

If you are considering choosing a capped rate product you need to vigorously compare fee structures and the current competitive nature of the rates with other products on the market – as sometimes the appeal of the peace of mind can end up costing you money.

Tracking Rates

A loan type which has emerged recently on the market to appeal to first home buyers and the refinance market, these rates are ‘tracked’ against the average standard variable rates of the big four banks and are promoted as being lower than those rates by a certain amount of (usually) between one half to one percent for certain time periods, usually up to three years. 

If you are considering these loans, you need to be aware of the two main differentiators between the tracking rates of various loan providers which are the fees associated with the loan and the revert rate when it comes off the tracking rate period.

So stop now and ask yourself, have you taken the time to do some homework and find out more about who’s actually going to lend you that money? Because if you haven’t yet considered this, there’s no better time than now to find out why its so important.

By conducting some initial research, you can find out quite a bit about the way a lender does business and avoid any unnecessary concerns that might otherwise arise during the course of the relationship.

Because it’s important for you to understand when you sign up with a lender – you’re not just buying the product, but the service as well.  

Where a loan may look good on paper, you also need to be able to rely on the right lending representative to guide you through all the mechanics of the loan to ensure you continue to get the most out of your lender, your loan and the relationship.

And although education is a powerful tool – not every lender is willing to make the time and effort to help empower you over time to take more ownership of your financial decisions.

So before taking out a home loan, there’s some simple checks you can make. These include:

Visiting the lender’s website

By doing this you can establish how long they’ve been in business, products they offer, interest rates, industry memberships and the people behind the business and its history.

Asking around

A good way to measure the quality of a company’s products and services are through word of mouth. Ask a broad range of friends, family and business associates if they’ve had dealings with the company you’re considering, and if so, how they found the experience.

Obtain a copy of the credit contract for your loan

By doing this you can look at the terms of the loan and your obligations to determine if you will be able to meet them. The credit contract will also outline any fees associated with changing loans – and if you do have any concerns, seek some independent legal and financial advice.

Organise a face-to-face meeting with a company representative

After conducting some preliminary research, set up a meeting with a lender from your organisation of choice. Come armed with any questions and queries your earlier research may have unearthed.

Check that the lender is a member of the Credit Ombudsman Service Limited (COSL)

This service protects the rights of any borrowers who deal with a COSL member and allows them to take a complaint they may have against that lender to an independent dispute resolution body. 

And finally – if you don’t feel comfortable with the direction your lender is taking you, don’t sign on the dotted line. There are many good lenders out there and the buck really does stop with you.

In case you haven’t noticed – there’s a pattern emerging in the world of business and politics where women are slowly, but surely, starting to take centre stage.

And that pattern has also transcended into the world of finance in terms of women empowering themselves in the ways of the property market.

In fact, unlike many previous generations, women are now a force to be reckoned with in the consumer economy and these days are overlooked by lenders at their own peril!

Growing numbers of women have over the last two decades since industry deregulation taken advantage of low home loan interest rates and more readily available loans to buy their own homes or make property the foundation of their investment strategy.

And its simple to see why – women are no longer waiting for Mr Right to come along before buying their first home, but are turning instead to investment in bricks and mortar to help secure their financial future.

So whether you are married or single, how do you take the first steps in preparing to become a ‘woman of independent means’?

FIRSTLY: you need to look at your income and set your expectations accordingly. And then be prepared that you may even have to lower those expectations in order to enter the property market. Because although too many people these days seem to want it all straight away, as the main breadwinner you don’t fall into the trap of thinking you have to have it all – and have it now.

SECONDLY: get rid of any personal debt with the aid of a realistic budget. Consider consolidating any credit card debts into one lower interest personal loan and once this has been paid off, then start saving in earnest.

FINALLY: shop around for the best loan and the best lender. There are so many loan products to suit first home buyers, including single women. Explore different avenues, such as the size of the deposit you really need, assistance from government grants, and whether you could buy in with family or friends just to get your toe in the door. And look for a lender that genuinely has your best interests at heart – and isn’t just after a sale. Ask around and do your own research.

The possibilities are endless and property ownership can be an exciting path to travel on – as long as you continue to check you’re still on the best possible track and remain committed to reaching your end destination.

So with a few words of caution and in the wise words of my mother – remember to remove your rose-coloured glasses when you’re looking at any property as the emotional connection you create, may end up costing you serious money. 

This is because there are properties with good potential and potentially good properties – but it’s working out the difference between the two that can help save you time and money. 

I deem properties with good potential as ones that may need some work but currently come across like someone who needs a cosmetic makeover and some TLC. 

And as for potentially good properties – I categorise them as ones that could be ‘potentially good ‘– were it not for that wall that’s falling down, or that kitchen that reminds you of the war or those floorboards you just put your foot through.

 That’s because these items, as well as bathrooms, electricals and roofs are the sorts of features on a property that unless you are confident in your building and renovation experience, are not items that are simple and cheap to fix up or replace.

 So while DIY shows can happily show us the way to achieve the look-for-less, you do still need to remember that there are some aspects to fixing up a property that are best left to the professionals.

 And if you’re heading out now to look at properties that you think may fit into your dream home category – make sure you leave your rose coloured glasses at home and enlist the advice of trusted friends and professionals.

 Better still – invest in that highly recommended building inspection so you can get a professional opinion from someone who may have clearer vision than you.

 And finally, whether you intend living in the property yourself or renting it out – if you do find yourself falling head over heels in love with it, do what you would with any prospective suitor and look as what else it has to offer!

 Look at features such as rental yields, the population growth for the area, the quality of local infrastructure and what the property can deliver you in terms of price growth, because the lure of property, like beauty, can also be skin deep – and consequently may not stand the test of time.

Whether you take advantage of the lower interest rate period by making additional payments into your mortgage or use the additional funds to pay for renovations, you’ll need to decide how to best use your mortgage once the ‘honeymoon period’ is over.

Start considering your current mortgage and your circumstances about two months before your honeymoon period is up and then ask yourself some questions which should help you make a more considered decision for your situation.

1. Check that your revert rate stacks up favourably against other standard variable rates in the market.

2. Have my circumstances changed since I first started with my loan and is there now a more appropriate loan for my situation?  If so, talk to your lender about options?

3. Am I happy with the customer service from my existing lender?

4. Can I comfortably manage the higher revert rate – and have I given enough thought to re-organising my other financial commitments to make the eventual transition to the revert rate as smooth as possible?

5. Have I planned a long term strategy and set some goals around where I want to be in five years time?  If not, speak to your lender who should be able to help with suggestions and direction in this area?

If your answers to these questions are directing you to change your loan – make sure you speak to your current lender first to see if they can offer you an even better deal and then if you’re still not happy, shop around to see what else is available.

So with my confession out of the way I hope you’ll now forgive me for sounding like a party pooper – but in Australia’s rush to culturally embrace a cosmopolitan café society, we’ve ignored the fact that the Europeans who were responsible for much of this influence, can more readily afford their style of entertaining, simply because they don’t share our philosophy and love affair with property ownership.

And therein lays a stumbling block for some.

As Australians, some of us are trying to have our cake and eat it too – whereas in Europe the burning desire to have the same dream as us of owning their own home is not always so critical – and certainly not when the café culture is such an ingrained part of their laid back lifestyle.

The point is, over the last twenty of so years we’ve adopted many elements of a European lifestyle, becoming a nation of coffee drinkers, café dwellers and al fresco diners. And this European influence of eating and drinking – whether it’s conscious or subconscious, has perhaps come at a price for some first time property buyers.

That’s because our desire to indulge in that daily coffee, lunch or regular dinner eats into our disposable income and can be a thorn in our side when it comes to trying to balance that enjoyment with the financial demands of managing a mortgage, so we can have a home of our own.

Only this week, figures on household spending were released which showed that although interest rates may have risen, it hasn’t significantly affected our desire to get out and have a coffee and a bite to eat. It was also reported that patronage at restaurants and cafes was up 106% for the month of July.

And interestingly, some sectors of the retail industry didn’t enjoy as much growth as they hoped during the same period, so it seems clear we’re cutting back on some areas, but not giving up our love of the latte and the café.

The point is, we’ve changed our lifestyle attitudes and habits over the last twenty years, showing there’s no doubt our style of entertaining has diversified markedly from that of our parents generation.

And it’s something we need to be conscious of so we can continue to celebrate what our country offers, but still work towards the great Australian dream.  Now there’s some food for thought!

Gone are the days when families had takeaway once a week (which usually consisted of fish and chips on Friday night) or when the biggest family night out was heading down to the local Chinese restaurant.

The fact is, it’s a tell-tale sign that things have changed when you can watch a 5 year-old eat sushi with chopsticks better than you can!

In short, there’s been a generational change in how we go about our social lives – and for some borrowers and aspiring home buyers, they simply can’t afford it because some of these social habits are holding them financially captive.

Even if you try and justify it by saying that because there’s more choice in takeaway food and restaurants, it’s therefore easier to find something cheap – think again. Once you add in a few drinks, the cost of parking and various other add-ons that seem to creep onto a bill, the final spend is never as basic as you first intended.

The $10 steak for example, often comes without salad, a drink and that bread roll. So let’s add in that cost, multiply it by two or four and it’s easy to see where $50 or more can go for what was intended as a cheap and quick bite out.

And the temptations are everywhere – because its not just dinner, but also the plethora of lunch places that have conveniently allowed us to replaced the packed lunch, it’s that $3.50 morning coffee multiplied by five working days and 48 weeks a year, and it’s that quick drink after work that turns into two, or even a round where you’re double checking your change because you can’t believe it just cost that much!

There are however some people who have already determined a way in which they can seemingly have their cake and eat it too. A news item over the weekend reported that McDonalds are doing bigger business than ever because families are looking for a chance to eat out –without the significant price tag.

It may not beat the old tried and trusted Chinese Restaurant, but perhaps it’s a modern equivalent.

However the real answer lies not in always trying to find the bottom dollar option to feed your social habits – but instead re-thinking what it’s costing you to socialise in general.

Because if you are feeling the financial pinch, but understandably still want the benefits that a healthy social life provides – remember what your parents used to say: ‘less is more’, ‘a penny saved is a penny earnt’ and above all, ‘keep it simple’.  They are habits certainly worth holding onto from our childhood.