Unlock Your Home Ownership Dreams: How Stage 3 Tax Cuts Boost Your Borrowing Capacity

Unlock Your Home Ownership Dreams: How Stage 3 Tax Cuts Boost Your Borrowing Capacity

The newly implemented Stage 3 tax cuts are here, and could significantly increase your borrowing capacity, making home ownership more attainable. Let’s dive into how these changes can benefit you and your financial future!

Increased Borrowing Capacity: More Power in Your Hands!

Thanks to the Stage 3 tax cuts, your net income will grow, providing you with more options when seeking finance for a home. Here are some examples of how much more you could potentially borrow:

• Single Australians with No Dependants: If you're earning $120,000 per year in FY24, your borrowing capacity could increase from $615,135.18 to $642,197.44 in FY25. That’s an additional $27,061.93 at a 6.28% interest rate!
• Married Couples with Two Incomes and Dependants: For those earning a combined taxable income of $280,000, your borrowing capacity could jump by $75,345.89, giving you a total borrowing power of $1,220,234.44 at a 6.28% interest rate in FY25.

This means a lot of purchasers, come July 1, will find themselves with an increased borrowing capacity, more options, and greater financial flexibility when seeking to buy a home.

Shaving Years Off Your Home Loan: Maximising Your Savings!

While the average tax cut is $1888 per year, its impact on your mortgage could be even more substantial if you direct these savings towards your loan. Here's how you can make the most of your Stage 3 tax cuts to potentially shave years off your mortgage:

• Average Earners: If you earn $70,000 and allocate your full monthly savings of $1429 towards your mortgage, you could reduce your loan term by two to three years and save up to $75,530 in interest over the life of the loan.
• Higher Earners: For those earning $140,000, the savings could be even more impressive. By applying your tax cut savings to your mortgage, you could cut your repayment period by six years and save as much as $171,000 in interest!

Take Action Now: Secure Your Financial Future!

The Stage 3 tax cuts provide a fantastic opportunity for Australians to enhance their borrowing capacity and accelerate their journey to home ownership. By leveraging these tax savings effectively, you can secure a more significant loan, enjoy greater financial freedom, and potentially save thousands in interest payments.

Don't wait! Speak with a financial advisor or mortgage broker today to understand how these tax cuts can work for you. Whether you're a first-time homebuyer or looking to upgrade, these changes can make your home ownership dreams a reality.
Embrace this opportunity and take the first step towards a brighter, more financially secure future!