Welcome to 2021

Welcome to 2021 and Happy New Year. As many people happily closed the chapter of 2020 and look forward to the new year ahead – we wanted to thank those of you that we worked with and assisted during Covid and those who made the decision to move forward. Either way – thank you for being there along the way in what will become a very memorable year passed. As much as 2020 had its challenges there was also some exciting initiatives.  Up to eight different aspects to stimuluses became available and we look forward to continuing to benefit from them in the year ahead.

• Building Boost $20k State Grant
• Home Builder $25k now extended $15k Federal Grant
• First Homeowner’s Grant $10k
• First Home Buyer Stamp Duty Relief
• Home Buyer Assistance Account $2k
• 75% Stamp Duty Rebate
• First Home Loan Deposit Scheme
• First Home Loan Deposit Scheme (New Homes)

Best Interests Duty for Mortgage Brokers

On a different note – The Best Interests Duty for mortgage brokers officially came into effect on 1 January 2021.   What is Best Interest Duty?   The Best Interest’s Duty for Mortgage Brokers is a statutory obligation for mortgage brokers to act in the best interests of consumers (Best Interests Duty), and to prioritise consumers’ interest when providing credit assistance (conflict priority rule). These two obligations are collectively referred to as the Best Interests Duty. We welcomed the implementation of the Best Interests Duty (BID) so our customers can rest easy knowing that when dealing with us, we are acting in their best interest.  Something we have always done at Celsius Finance – so for us, it is a bit like business as usual.  The difference is now there is a legal duty to act in this way.   A note to point out banks are not subject to the same law.  In other words, we must always act in the best interests of borrowers; however, if a customer goes to a bank directly, then the bank can act in their own interests and not those of the borrower.

Covid-19

Finally, for those who have been directly affected by Covid, the most recent announcement made states Australia’s banks will stop sweeping loan deferral schemes brought in at the height of the pandemic, as economic stabilisation prompts a cooling off in demand for financial hardship provisions. The Country’s major four banks have begun stopping mortgage holidays, which were implemented industry-wide last year allowing homeowners and businesses to pause repayment obligations for up to six months. So, if this is still affecting you, please contact your lender and keep communicating with them to work your way through.  If we can assist, please reach out.

Looking Ahead

We have much to look forward to in 2021!  Historically low interest rates with many financiers 4-year fixed terms at approximately 1.99%. Not to mention a market in WA that is showing great signs of recovery, increases in sales turnarounds, rental market increases, announcements from Governments with the lowest unemployment rates in the Country and no community spread of Covid in our State.  We sure do have a great place to call home.