Moneysmart - Home Loans and Property Guidance from ASIC

Moneysmart is the consumer website of the Australian Securities and Investments Commission, the Australian Government agency that regulates financial products and services. The site gives free guidance on most money topics, and the home loans section is the part that matters for property. It explains how to save a deposit, how to compare mortgages, what happens at an auction or a private sale, and how repayments behave over the decades a loan runs. The service does not lend money, arrange loans or give personal financial advice, and it carries no advertising.

Each guide is short, written in plain English, and paired with a calculator wherever a number would help.

Buying a house step by step

The buying guide begins with the deposit. A savings goal of 20 percent of the purchase price, plus buying costs, lets a borrower avoid lenders mortgage insurance. Where saving that much would take too long, the guide points to the Australian Government 5 percent deposit scheme, which supports first home buyers, people buying in regional areas, and single parents or guardians. Readers are told to research prices early, to test what their repayments would look like if interest rates rose by 2 percent, and to get personalised loan options from at least two lenders, since a rate even half a percentage point lower can save thousands of dollars over the loan term.

Loan pre-approval is treated in practical terms. It lasts three to six months, sets an affordable price range, and shows sellers that a buyer is serious, without committing anyone to a loan.

Auctions and private treaty sales get separate treatment because the risks differ. A winning bid at auction usually requires an immediate deposit of about 10 percent, and there is no cooling off period, so the sale is final and not conditional on finance or inspections. Most states and territories allow a short cooling off window for private sales, during which a buyer who gives written notice can withdraw and recover most of the deposit. The guide recommends using that window for a professional building and pest inspection, and having a solicitor or conveyancer review the contract of sale before anything is signed. First home buyers are advised to watch a few auctions before bidding at one.

Settlement and stamp duty

Settlement is the date the property title transfers and the mortgage begins. The page links out to the transfer duty calculators run by every state and territory revenue office, notes that stamp duty generally falls due within 30 days of settlement, and reminds first home buyers to check for exemptions and concessions. Home and contents insurance may itself be a condition of the loan.

Calculators and loan management

The mortgage calculator works out repayments under different rates and terms. A switching calculator estimates whether changing lenders would save money and how long it would take to recover the cost of the move. An interest only calculator shows repayments before and after the interest only period ends, and a rent versus buy calculator compares the two options for a given household.

Companion pages explain mortgage offset accounts, interest only loans, and how to pay a mortgage off faster through higher or more frequent repayments. The page on mortgage brokers lists the questions to ask about a broker's lender panel and how the broker is paid.

Property investment

The investment section treats real estate as one asset class among several. It walks through buying an investment property, property funds, timeshares, and the rules for holding property inside a self managed superannuation fund. ASIC also keeps a set of investment warnings on the same site, and land banking schemes and property investment seminars both appear on it. Related pages deal with borrowing to invest and with checking an investment before committing money.

When repayments become difficult

A hardship page urges borrowers who are struggling to contact their lender early, because more options exist before arrears build up. It explains financial hardship arrangements, points to free financial counselling, and tells anyone who has received a default notice to get free legal advice straight away. There are also pages on urgent help with money and on problems paying bills and fines.

Who runs the site

ASIC has published consumer finance material under the Moneysmart name since 2011, and the current site holds several hundred pages and around 40 calculators across banking, insurance, superannuation, investing and retirement. Money tips are available in other languages, and a section for First Nations audiences deals with topics such as book up credit, door to door sales and family pressure about money. Teachers can use ready made lesson plans on consumer and financial literacy.

The agency answers general queries through its customer contact centre in Sydney during business hours. Questions about a specific financial product go to the product issuer first, then to the Australian Financial Complaints Authority if unresolved, a path the site's complaints guide sets out in order.

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