Home Loan Expert Says Buy Now - Here’s Why

26th February 2024

Finance & Budgeting Pre-Construction News & Industry Insights

Finance expert Steve Matsoukas explains why now is a smart time to buy property, despite interest rate uncertainty. Learn how brokers can save you thousands, how to maximise government incentives, and why untitled land could be your best move.

Home Loan Expert Says Buy Now - Here’s Why

In this episode of the Home Building Hub podcast, hosts Colin Bischof and Darren Brennan are joined by Steve Matsoukas, Director of Loan Gallery, to dive deep into the current state of the finance market for new home buyers. With over 22 years of industry experience and more than $3 billion in home loans under his belt, Steve shares why he believes now is the right time to buy - despite ongoing market uncertainty.

From understanding government incentives to tips on saving for a deposit, this conversation is packed with actionable insights and guidance for first home buyers and second-time purchasers alike.

Why Use a Broker Over a Bank?

According to Steve, brokers offer:

• Greater knowledge - especially when it comes to house and land finance.

• More options - access to multiple lenders, not just one bank.

• Negotiated rates - brokers often secure better interest rates than customers going direct.

• Personalised support - brokers take the time to understand your financial position.

• Ongoing savings - some brokers reprice loans automatically every six months.

And importantly, brokers don’t charge the customer — they get paid by the lender.

Deposit Saving Tips for Buyers

Steve outlines a smart, structured approach for saving a deposit:

• Know your minimum - typically 5% of the total purchase price.

• Break it down - turn your savings goal into bite-sized milestones.

• Use budgeting tools - consolidate accounts and track spending using personal finance apps.

• Set micro-goals - save a set amount per fortnight into a separate, untouched account.

For most buyers, saving is a journey. Less than 10% of Steve's clients have the full deposit upfront. His team helps guide buyers over 12 to 24 months, while the land titles.

Why Untitled Land Can Be a Smart Move

Untitled land allows time to save while locking in today's price. Key benefits:

• Secure land at today’s price, settle later.

• Work with a broker to build up deposit while waiting for land to title.

• Brokers guide buyers through the full journey, including construction finance and progress payments.

Government Incentives to Know About

Steve highlights two powerful (and often underused) schemes:

1. First Home Owner Grant (FHOG)

2. • $10,000 for those building a new home in Victoria.

   • Can be used to reduce the loan or as cash after settlement.

3. Home Guarantee Scheme

4. • Only need 5% deposit.

   • Government guarantees the remaining 15%.

   • Avoid paying Lenders Mortgage Insurance (LMI).

   • Easier lending criteria and reduced loan amount.

   • Available for first home buyers and those who haven’t owned property in 10 years.

Steve shares a real example of a client who saved $24,000 in LMI by tapping into the scheme.

What About Interest Rates?

Steve predicts:

• Interest rates have likely peaked.

• In the short term, RBA movement is expected to be a rate cut.

• Forecasts show possible cuts starting around September and November.

In short, rates are stabilising, and confidence is slowly returning.

He also reminds buyers that loans are assessed at much higher rates (around 9%) to ensure affordability, so you are protected if interest rates fluctuate slightly.

So, Is Now the Right Time to Buy?

Steve’s take is clear:

• Waiting rarely pays off - Prices rise, new building regulations add costs, and opportunities are lost.

• Upcoming building code changes could add $15,000 - $30,000 to a new home build.

• Locking in a home now secures current pricing and avoids future compliance costs.

"The best time to buy property was yesterday" — Steve Matsoukas

Key Takeaways

• Use a broker to access more options, better rates, and personalised advice - all at no cost.

• Saving a deposit is a journey – structure your savings plan and get support early.

• Untitled land is a powerful tool to buy now and build later.

• Government incentives like the FHOG and Home Guarantee Scheme can save you thousands.

• Interest rates are stabilising and likely to drop within 6 - 12 months.

• Delaying your decision could cost more due to upcoming building code changes.

Glossary of Terms

• FHOG: First Home Owner Grant

• LMI: Lenders Mortgage Insurance

• Home Guarantee Scheme: Federal government program helping eligible buyers avoid LMI

• Untitled Land: Land not yet registered for construction

• Assessment Rate: The higher interest rate lenders use to ensure loan affordability

FAQs

Q: Does using a broker cost extra? A: No. Brokers are paid by the lender, not the borrower.

Q: Can I buy land if I don’t have my full deposit yet? A: Yes. You can secure untitled land and work with your broker to save over time.

Q: What is the Home Guarantee Scheme? A: A government program that allows eligible buyers to purchase with only 5% deposit and avoid LMI.

Q: What if interest rates go up again? A: Loans are assessed at higher buffer rates to ensure you can still afford repayments if rates rise.

Listen to the Full Episode

Watch or listen to the full episode here

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.