Login
ISCOVER
While the new year is young, mortgage broker, Adele Andrews, has already observed an increase in women seeking credit advice.
Indeed, owning a property may look slightly less enticing given the cash rate has reached 3.1 per cent — and climbing — yet three weeks into the new year, Adele Andrews, director at Australian Property Home Loans, had been fielding calls from women seeking credit advice.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Ms Andrews is a “big advocate” for any gender who wants to take control of their finances but said it was the increase of ‘women’ coming forward this year already that had surprised her.
“I’ve seen a notable increase of women who are looking at refinancing, debt consolidation and it’s probably not quite possible to buy an owner occupied property, but they’re putting a stake in the ground and buying an investment property,” Ms Andrews said.
Despite some caveats around their current rent, savings,and potential rental income, in some cases, lender calculators work “more favourably for investment properties”, Ms Andrews said.
“Due to the additional income in the form of rental income as well as the tax benefits on the interest on the loan for an investment property,” she said.
“It may not work in all cases, but it has done for some of the clients I have worked with this year.”
She added that some clients were still at home with their parents, for varying reasons, which meant an investment property was a good solution.
“I have seen a few in this situation who can’t afford to buy an owner occupied yet, but they can buy an investment property and get their foot into the market,” Ms Andrews said.
While there had been a notable fall in new lending overall, with the Australian Bureau of Statistics (ABS) reporting a 3.7 per cent fall over the year to November 2022, Ms Andrews said the new year had seen women want to take a “new level of control” over their finances.
Ms Andrews noted that the rising rate environment had also pushed many women to become more educated “about what a refinance can do for them and the opportunity it can bring” on the back of a record refinances seen in 2022.
“I have already seen a number of ladies who understand that by consolidating debt and shopping around for the best rate for their set of circumstances, it can relieve a considerable amount of financial stress in the system,” Ms Andrews said.
“I have also seen a number of ladies who are leaving a relationship and need to refinance the family home into their own name.
“This journey is one that requires an additional layer of sensitivity and reassurance; getting the numbers correct right from the start is incredibly important — so that these ladies understand what their new financial future is going to look like.
“It’s an incredibly overwhelming time for so many in this set of circumstances, and I get that.”
According to Equifax Australian Credit Scorecard 2022, a higher proportion of women said they have financial goals (91 per cent) compared to men (88 per cent), while more men (75 per cent compared to 68 per cent women) are using short-term credit.
Ms Andrews encourages women to align themselves with an expert who can explain “mortgage mechanics”.
“In this environment, it is imperative to understand what is going on so that you can manage your budget, make ends meet, live life comfortably and not get stressed,” Ms Andrews said.
“This is why it is so important to reach out to someone you are comfortable with and who will create a positive experience for you.”
JOIN THE DISCUSSION