This guest post from Shelley Turner is part of the “reader stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all levels of financial maturity and with all sorts of incomes.
They’re coming! Like it or not, the holidays — and all the stress of buying the Perfect Gift — are just around the corner. I actually like brainstorming gift ideas, and have been told I’m pretty good at it. Today I’ll share my secrets with you.
The best gifts are appropriate for the recipient, yet don’t cost a small fortune. You want your gift to say “I know what you like”, not “I didn’t have a clue of what to get you for a gift for but here it is anyway”. I once received a leopard-hair belt. Anybody who knows me, or has seen how I dress, understands that there’s never been (nor ever will be) a time that I’d wear a leopard-hair belt. A gift like that screams “I just bought you something because I had to”.
Gift-giving ground rules Before you buy, take a few minutes to think about what your recipient has in her house or on her desk, what she spends her time doing, what she likes to talk about, where she likes to eat, and even what she keeps in her refrigerator. Even if you don’t know her that well, this exercise will help you get some ideas of what the recipient likes.
I’m not a collector, so I prefer practical and useful gifts. However, if your gift recipient is a collector, that’s a perfect opportunity. Even if his collection is filled with expensive items, you can often find a small token within that collection that you could give him. The trick to buying a great gift for somebody, no matter what the occasion, is to buy what your recipient would enjoy — not what you’d enjoy.
Often, a consumable gift that provides momentary pleasure and then disappears is best, especially around the holidays when people usually get many gifts. Consumables can be given, enjoyed, and remembered without becoming Stuff.
My husband’s 90-year-old grandmother is a perfect example. What can you give a 90-year-old woman who already has everything she wants and needs? Not much. However, I know she really enjoys a good cup of coffee. And I found some European butter cookies and a some jars of preserves made in her native Denmark. I give her this same gift every year. She tells me she waits eagerly for our gift because not only does she enjoy consuming it during the winter, but because it’s a small reminder of her home country.
Inexpensive gift ideas No matter which gift you choose, if it’s something your recipient uses over and over, you can give a great gift without spending too much. Here are some of my favorite inexpensive gift ideas. These have all been well-received and cost less than $20. You can tailor the gift idea to fit your budget. Some of these can be used as hostess gifts for holiday parties you may be attending.
Personalized note cards
A book by her favorite author
Monogrammed wine stoppers
Travel journal
Engraved metal bookmark
Monogrammed soap bars
Bread basket with quick bread or muffin mix inside
Dog or cat breed-specific items — calendars, notepads, keychains, etc. of their pet
Cookbook (specific subjects like fondue, vegetarian, appetizers, etc or you could get a book representing their hometown like the Chesapeake Bay, etc.)
Personalized insulated tote-style lunch bag (put his favorite snack inside)
Sports team items — pick her favorite team mug, hat, t-shirt, scarf, etc. (fill a mug with her favorite hard candy)
Gourmet chocolate bars tied with ribbon or raffia
Favorite bubble bath & bath pillow
Wallet with gift cards or cash inside
Amaryllis or Paperwhite bulb package
Old-fashioned jar filled with favorite candy or snack
Hand-made soap with an interesting soap dish
Handmade crocheted or knitted scarf or hat
BBQ sauces, hot sauces, grilling rubs, etc (some have funny labels)
Ice cream dish with favorite topping
Decorative candy bowl with favorite candy
Ornament representing current hobby
Charm to add to an existing charm bracelet
T-shirt from favorite restaurant
Crabtree & Evelyn hand therapy (super-rich hand cream)
Nice colored pencils and/or sketch notebook for artists
Small decorative bowl and package of dip mix
Hand towels with initials embroidered (especially if newly married)
Here are a few more ideas with a bit of explanation:
Magazine subscription (hundreds of subjects to choose from — and you can give crossword puzzle and comic book subscriptions too). Buy the current issue and put a note on it that you got him a one-year subscription.
Lolita glasses are painted wine, beer, or margarita glass that have themes painted on them based on hobbies. There’s a recipe painted on the bottom of each glass too.
Year of Napkins! This requires advance planning, but makes a unique gift for a very reasonable price. For each holiday throughout the year (plus Happy Birthday), pick up one pack of luncheon-sized napkins. When you’ve collected all the holidays, package them in order of the holidays in small CD crates, baskets, etc. Usually you can find the napkins in the clearance section right after the holiday. Decide how many of these you want to put together in advance so you can buy as many as you need during each holiday.
Remember that you can also go in with others to purchase bigger gifts, such as theater tickets, cooking classes, and other “experiences”. If you’re very organized, you can shop all year and pick up interesting gifts along the way. My sister-in-law has a birthday in January, but I often find stuff she’ll love in the summer, so I buy it and keep it until her birthday.
Check the clearance racks all year to get even better deals. Unless you really enjoy going shopping the week before Christmas, you may find that buying gifts ahead of time will not only save you money, but also make the holiday season a little more relaxing, as well.
Reminder: Another way to save money on gifts is to make them yourself. Here’s a list of 34 great homemade Christmas gifts almost anyone can put together. And over at The Simple Dollar, Trent has been documenting his own quest for family-produced Christmas presents.
A note on packaging When packaging your gifts, you’re not stuck using a gift bag or plain wrapping paper unless you want to. Tulle (that material used to tie up rice/birdseed to throw at weddings) is great for wrapping unusually-shaped items, such as the bowls & dip mixes, candy bowls & jars, ice cream dishes, bottles of hot sauces, soap, etc. It’s really inexpensive to purchase by the yard, comes in many colors, and your recipient can see what you gave her without unwrapping it. Tulle is especially good for hostess gifts so they don’t have to open them upon receipt.
Some other tips:
Magazines roll up perfectly in those tall wine bottle bags.
Chinese-food boxes and small tin buckets are inexpensive and fun to use.
Bread baskets work nicely to hold all kinds of items and they can reuse the basket later.
When packaging your gifts, use your imagination!
Gift giving can be fun — if you allow yourself to be creative and take a few minutes to think about your recipient. The bottom line: If he’ll enjoy it, it’s a great gift for him!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
43k salary is a solid hourly wage when you think about it.
When you get your first job and you are making just above minimum wage making over $43,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 43,000 per year in today’s society since it is below both the average and median household incomes. The question you want to ask all of your friends is $43000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $43000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $43k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$43000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 43k a year hourly. That way you can decide whether or not the job is worthwhile for you.
$43000 a year is $20.67 per hour
Breakdown Of How Much Is 43k A Year Hourly
Let’s breakdown, how that 43000 salary to hourly number is calculated.
For our calculations to figure out how much is 43K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $43000 by 2,080 working hours and the result is $20.67 per hour.
43000 salary / 2080 hours = $20.67 per hour
Just above $20 an hour.
Key Points….
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
Just an interesting note… if you were to increase your annual salary by $5K to $48k per year, it would increase your hourly wage to over $23 an hour – a difference of $2.41 per hour.
To break it down – 48000 salary / 2080 hours = $23.08 per hour
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $43K salary Per Month?
On average, the monthly amount would be $3,583.
Annual Salary of $43,000 ÷ 12 months = $3,583 per month
This is how much you make a month if you get paid 43000 a year.
$43k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $43k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$43000/52 weeks = $827 per week.
$43000 a year is how much biweekly?
For this calculation, take the average weekly pay of $827 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$43000 / 260 working days = $165 per day
If you work a 10 hour day on 208 days throughout the year, you make $206 per day.
$43000 Salary is…
$43000 – Full Time
Total Income
Yearly Salary (52 weeks)
$43,000
Monthly Wage
$3,583
Weekly Pay (40 Hours)
$827
Bi-Weekly Pay (80 Hours)
$1,654
Daily Wage (8 Hours)
$165
Daily Wage (10 Hours)
$206
Hourly Wage
$20.67
Net Estimated Monthly Income
$2,735
Net Estimated Hourly Income
$15.78
**These are assumptions based on simple scenarios.
43k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 43000 a year after taxes?
Gross Annual Salary: $43,000
Federal Taxes of 12%: $5,160
State Taxes of 4%: $1,720
Social Security and Medicare of 7.65%: $3,290
$43k Per Year After Taxes is $32,830
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$32830 ÷ 2,080 hours = $15.78 per hour
After estimated taxes and FICA, you are netting $32,830 per year, which is $10,170 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $43000 income can range from $29390 to $34550 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $43,000 income.
43k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $43,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live cheap and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $43,000 a year is below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $43,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL and maybe a MCOL city.
You should be able to meet your expenses each and every month.
Participate in the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $3000 in 52 weeks.
When A $43,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 40k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$43k Salary to Hourly
We calculated how much $43,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$43K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 40k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $43000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$251
Savings
15-25%
$645
Housing
20-30%
$932
Utilities
4-7%
$143
Groceries
5-12%
$287
Clothing
1-4%
$22
Transportation
4-10%
$143
Medical
5-12%
$179
Life Insurance
1%
$11
Education
1-4%
$11
Personal
2-7%
$32
Recreation / Entertainment
3-8%
$81
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$847
Total Gross Monthly Income
$3583
**In this budget, prioritization was given to basic expenses and no debt.
Is $43,000 a year a Good Salary?
As we stated earlier if you are able to make $43,000 a year, that is a decent salary. You are making more money than the minimum wage and close to double in many cities.
While 43000 is a good salary starting out in your working years. It is a salary that you want to increase before your expenses go up or the people you provide for increase.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. It is okay to be driving around a beater car while you work on increasing your salary.
This $43k salary would be considered a lower middle class salary. This salary is something that you can live on if you are wise with money.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 43k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, many modest cities a 43,000 a year will not a good salary because the cost of living is so high, whereas these are some of the cities that you can make a comfortable living at 43,000 per year.
If you are looking for a career change, you want to find jobs paying at least $65000 a year.
Is 43k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $43000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 43k a good salary for a family?
Many of the same principles apply above on whether $43000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $43,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 43000 per year, then the combined income for the household would be $86,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $43000 Per Year?
As we outlined earlier in the post, $43,000 a year:
$20.67 Per Hour
$165-206 Per Day (depending on length of day worked)
$827 Per Week
$1654 Per Biweekly
$3583 Per Month
Next up is making $45000 a year.
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 34,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and still making $43k, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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This post is by April Dykman. Yes, you read that right. April was recently wooed back to Get Rich Slowly and will be writing here a couple of times a month. She plans to focus on interviewing experts on money-related topics, which also helps her justify that journalism degree…
Bill had to sell his house quickly.
He was being transferred out of state, and the company wasn’t footing the bill. Instead, they offered him a higher salary. Now he had to sell quickly or risk paying two mortgages.
But Bill wasn’t sweating it. After all, his house was in a great neighborhood in a desirable part of town. He hired a real estate agent, confident that once the “for sale” sign went up, the buyers would come knocking. He’d get a quick sale at asking price, no problem.
Only a month went by, and there were zero offers. Bill had to move soon and was getting nervous about those double mortgage payments, but no one was interested. Then, to really rub salt in the wound, buyers were leavings tons of negative comments!
So what was the problem?
You aren’t making your house ready for buyers
Bill refused to make his house buyer-friendly.
His real estate agent, Lynda Conway, had warned that unless he got the house show-ready, it would sit on the market and sell for far less than asking price. Lynda, who heads The Turner Team in Austin, Texas, and teaches for the Austin Board of Realtors, says Bill’s mistake is a common one.
“Many sellers think they can just put a sign up and that’s enough,” she says. “But buyers don’t fall for that. They want to back up their moving truck, unload their stuff, and put their toothbrush in a cup by the sink.”
And when sellers refuse to believe they need to get their house ready to go on the market, they can suffer financial consequences. In Bill’s case, his refusal to invest in sprucing up his home was about to cost him a double mortgage payment, not to mention the stress of trying to sell his house from out-of-state.
It can also result in a lower final selling price. Lynda recalls one seller who refused to make basic repairs and cosmetic improvements. “After a long time on the market, we finally got an offer,” she says. “But the owners felt insulted because it was $20,000 below list price. They wound up taking the offer because it was the only one.”
So if this mistake can cost you time and money, not to mention cause some serious stress, why do sellers refuse to make their houses more attractive to buyers?
The three reasons you aren’t getting your house ready for buyers
Lynda says there are three main reasons that sellers don’t get their houses in tip-top shape.
First, they don’t believe it makes a difference. Like Bill, they think their house will sell itself, so the extra investment seems like a waste of money. “Bill was really cautious about spending any money because he was being transferred on his own nickel,” says Lynda. “He refused to believe that a coat of paint would make a difference.”
Second, they don’t think there’s a problem. Lynda says it’s often difficult to convince smokers and pet owners that their homes don’t smell like roses. Bill, for example, was both a smoker and a pet owner. “Some sellers don’t realize it smells because they’re so used to it, or else they don’t think it’s a big deal,” says Lynda. “But it’s a huge deal to buyers.”
Third, they think they don’t have the money. Remember the clients that got $20,000 less than list price? Lynda says that it wasn’t until they were all at the closing table that they finally admitted to her that they didn’t have the money to make her suggested improvements. “Some sellers don’t want to admit that they don’t have money on hand, but I can’t help them if they aren’t willing to talk about it.”
So how can you avoid these problems and sell your house quickly (and for list price)?
Make your house show-ready
You’ve got to invest in wowing potential buyers.
When Lynda showed Bill the negative comments people were leaving about his home, he finally relented, telling Lynda, “Okay, tell me what to do.” They took the house off the market while he worked his way through the to-do list. After $2,500 in updates and repairs, they put the house back on the market at the original price. In three days they received three offers.
“Buyers are picky,” says Lynda. “If you want to get top dollar for your home, you have to prepare for that.”
And the good news is that if you have more time than money, Lynda says there’s a lot you can do yourself to improve your home’s appeal.
So how can you make your house best in show?
Five ways to make your house show-ready (and net more money)
Lynda says here are five things you can do to make buyers fall in love with your home.
Start packing now. You’re about to move, right? So get some boxes, packing tape, and a Sharpie and put your stuff in storage. “Decluttering your home makes it look bigger and cleaner,” says Lynda. “You can make your house more attractive to buyers and get a head start on moving.”
Give it some elbow grease. “Clean your house like you’ve never cleaned it before,” says Lynda. “Windows should sparkle. Make sure the house smells nice and fresh, not like last night’s fish dinner or grandpa’s cigars.” Lynda says sellers can deep clean themselves, or if they have more money than time, they can hire a professional.
Do a daily sweep. Steaming the carpets and dusting the ceiling fans is important, but all is lost if your bathroom counter is cluttered with hair products or there are dishes in the sink. “Do a daily wipe-down on all surfaces, especially in the bathroom and kitchen,” says Lynda. “Keep counters completely clear to make them look as big as possible, especially important in a small space.” Lynda had one client who put her toiletries in her travel bag while her home was on the market. “She’d get ready in the morning like she was on a trip, then put the travel bag away and out of sight.”
Make a good first impression. “When a buyer pulls up to your house, you have five seconds for that house to sell itself from the curb,” says Lynda. “And when the front yard looks inviting, that creates positive expectations about what you’ll see inside.” Take care of the obvious, like lawn care and putting your yard gnome in storage. Then give the front door some TLC. “Your front door should be warm and fresh, she says. “You can give it a coat of paint or replace it entirely.” Lynda also recommends adding some color. “Buy cheap, colorful pots, potting soil, and some flowers,” she says. “I like the combination of rosemary and flowers because it smells nice and looks attractive.” The bonus of potted plants? You can take them to your new home!
Deal with the bigger issues. Here’s where it can get expensive, depending on the condition of your home. But if your house is in serious need of a coat of paint and a new roof, you have to either deal with those issues or adjust the price accordingly and wait for a buyer willing to take care of it themselves.
Finally, consider getting a pre-inspection. Lynda says almost no one does this because people think, “why open a can of worms?” But the can will be opened eventually when the buyers have your house inspected. And then those problems might cost you a willing and able buyer.
“When a buyer falls in love with your home, then finds out there’s a major problem you didn’t disclose, they fall out of love very quickly,” she says.
They’re angry and distrustful, even if you honestly weren’t aware of the problem. “Buyers feel like you should have known because it’s your house,” she says. “And sometimes they’ll terminate and refuse to even negotiate the repairs.” Lynda says when buyers are willing to negotiate, they may want the price lowered by double, or even triple, the cost of repairs. Ouch!
But she says if you get your home pre-inspected, you won’t be caught off guard. You can attach repair receipts to your seller’s disclosure or have the house re-inspected and attach the report. And most importantly, says Lynda, “you won’t lose a deal or have to come down on your list price.”
What are some ideas you’ve used to make your home more appealing to buyers? Or from a buyer’s perspective, what are the major turn-ons and turn-offs when you walk into a house?
Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 64 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
When we bought our first (and current) house, our whole process went by very quickly and smoothly. Our mortgage company and real estate agent both told us that our mortgage was the quickest process they’ve ever done. We got pre-approved and bought a house less than one month from start to finish.
It took around 2 weeks for us to find the perfect house, and we probably looked at over 20 houses in person. We also looked at hundreds online so the 20 that we looked at we thought were for sure buys. Our agent probably HATED us. Luckily she was a family friend so I hope she got over her hatred quickly 🙂
We are sort of in the home buying process again as you all know. We keep going back and forth with what type of house we want, where we want it located, and how much we want to spend.
Our current house is fine for now. There is definitely nothing wrong with it, I guess we just want something a little nicer that also has a little more room. So we could: a) stay in our current house and save a lot of money; or b) buy a house within the next year and finance the majority of it (probably with a 25% down payment).
If we did stay in our house for longer, we would spend some money on making it perfect. I definitely would want to change some things in our bathroom (such as adding a nice glass shower door), make our front and backyards perfect (possibly add a garden) and finish decorating everything to the way we want it. This is a whole ‘nother post in itself!
Anyways, when we bought our current house, we followed all of the steps below, except for the fact that we didn’t realize that the total monthly cost would be that much higher than what the mortgage company quoted us. That is something that we were naive about. Learn from our mistake!
1. Get pre-approved for a mortgage!
This is definitely one of the first steps you should take. Looking at houses without getting pre-approved can be disastrous because you might just be wasting your time. You might not get approved, get approved for less than you think, etc.
Wouldn’t it really stink if you spent a ton of time looking at houses that turned out to be way more than what you can be pre-approved for? That can be a major letdown.
2. Buy less than what you are approved for.
I think we were approved for around $200,000. We were 20 years old and this seemed like a ton since we made hardly any money then. We were shocked and we looked at one house that was around this price range, but then we realized that this was a bad idea as we wanted to be more comfortable with our bills.
Also, something that our real estate agent told us, is to not show the seller how much you are pre-approved for. We showed our real estate agent our real pre-approval amount of course, and our agent said that when this happens, it can not be good. She said that if some sellers can see what we can actually “afford,” that they know how flexible that you can be with your pricing and negotiating. You can get your mortgage lender to lower the amount on the piece of paper and this is what we did. We asked our lender to say that our pre-approved amount was $150,000 (everyone, please keep in mind that I live in the Midwest and housing is cheaper here).
3. Buy a house that’s a good size for you.
Also think about the future you are planning when you think about the size of the house you might buy. Remember my post on how we Bought Too Much House? Keep that in mind! While before our house seemed way too big for us, we now want something bigger. Eventually of course we would want kids, but it’s mainly that we want a bigger yard.
Do you plan on living in this house for awhile, or just a short amount of time such as 5 years? Do you want a house and neighborhood/city that is good for kids to grow up in? There are many questions to ask yourself.
4. Get a realtor!
This is something that I definitely recommend. Our realtor saved us a lot of money and was a great negotiator. We got the seller to pay all closing costs (which were around $5,000). And she also got them to fix a lot of little things around the house. Realtors do a lot of work and are skilled in buying/selling houses. They know where to begin, what to look for and have tons of tips.
5. Make sure you look around and don’t settle.
The market is great right now for people who are looking. There are a lot of houses out there and most have a great price (all of course depending on your city! Some cities are in a housing bubble). You will be living in this house most likely for a long amount of time, so you don’t want to regret your decision.
6. Hire an inspector.
This is something that is definitely needed as well. An inspector will be able to find things that might sway you from NOT buying the house. If you’re buying a house, then you can most likely shell out another $300 for an inspection. It is a good investment.
7. Figure out the WHOLE cost.
Not just want the mortgage would be. Figure out if there will be any PMI, what the homeowners insurance will be, and property taxes. This all can add up quickly, and it added around $300 to our mortgage.
8. Save!
Now that you know you want a house, try and save as much as you can before you move into your new home. Your new costs will most likely be higher than what you think, and any extra savings will be extremely helpful.
Self-taught architect and surfer Harry Gesner‘s Malibu, CA, estate is available for the first time, for $27.5 million.
Built by hand in 1974, the six-bedroom home comes with 122 feet of beach frontage. The circular, wood-and-glass structure was designed to capture Pacific Ocean views from every room.
“Sandcastle,” as Gesner’s family home is known, is situated next to his most famous creation, the Wave House—built for his friend Gerry Cooper.
Inspired by the sandcastle his son built on the beach, Gesner’s groundbreaking design quickly became a Malibu icon.
“The most famous of my father’s work is the iconic Cooper Wave House next door to our Sandcastle,” Zen Gesner tells us in a recent phone interview. “He designed it in the late 1950s while sitting offshore of the lot, on his balsa longboard, with a grease pen. Once he had sketched it out on the board, he paddled in and transferred it to paper, and brought it to life.”
Zen says his father “had a vision of building something that would blend in with the environment, the coastline, and surf, and it would evolve through the years.”
Harry died in 2022 at the age of 97.
Living room
(Realtor.com)
Sandcastle’s spectacular living area boasts a wood-beamed ceiling, walls of windows, and an enormous brick fireplace with a polished concrete hearth that Harry built as a stage for his wife, actress Nan Martin.
‘Before his time’
“I have always had an incredible respect for his originality,” Zen says about his father’s unconventional approach to architecture. “His early move into environmental architecture and design, as well as the use of recycled building materials, was decades before its time.”
Library
(Realtor.com)
The cylindrical kitchen wraps around a circular island and boasts stained-glass lunettes in the overhead beams, along with a cozy fireplace and breakfast bar.
There are two en suite bedrooms on the first floor. Upstairs, the primary suite features a soaring ceiling, beams, eyebrow windows, and a brick fireplace.
Sandcastle is built on a little cove, 4 miles north of Trancas Canyon.
“It was a magical place with no straight lines—mostly circles, multiple levels, and outer structures, winding upward like a treehouse,” Zen says.
Bedroom
(Realtor.com)
Made with reclaimed materials
The home was built from materials Harry salvaged and repurposed to spectacular effect: wall panels made from aqueduct pipes, maple wood rescued from an old high-school gym, old-growth redwood harvested in the 1800s, and windows and doors saved from one of Hollywood’s silent film theaters.
“My father built our family house almost entirely out of reclaimed materials that had lived a prior life somewhere else,” Zen says. “He preferred to use the reclaimed wood in his houses, because it had a soul to it and would sometimes be of a better quality than any new lumber that you could buy at the lumber yard. These practices influenced the way I look at everything. Waste not, recycle, and reuse when able.”
Wraparound deck
(Realtor.com)
A solarium with stained-glass panels, a wraparound deck, and a covered terrace offer unmatched sunset views.
The 1-acre property includes a treehouse apartment with ocean views, a one-bedroom boathouse, and an apartment “nest” above an indoor-outdoor cabana.
Zen recalls visiting job sites with his dad and says his best memories involve checking out a client’s piece of land for the first time. Gesner says he has photos of his father sketching out his initial impressions.
“He’d bring a chair and sit alone on the property for hours, taking note of everything there—the way the sun rose and set each day, the direction the prevailing wind would blow from, the wildlife that would wander through, any large trees or boulders that he could incorporate into the eventual design of the house, how to make the house feel organically born and rooted at that location,” Zen reminisces.
With rates around 6.9% and home prices still near record highs, homebuyers are demanding that their loan officers provide options to lower monthly mortgage payments as much as possible.
Michael J. Barnes, a branch manager at Mann Mortgage, recently had a client who planned to live in a new home for five years before selling it. The client requested a cost analysis to compare monthly payments on a mortgage at 7.5% versus a 6.5% mortgage rate with a permanent rate buydown.
His client would pay $4,000 to buy down the rate by one full percentage point (100 bps) and save $7,880 over the five-year period he planned to keep the home.
“In that client’s case, it made sense to pay to do a permanent buy down,” Barnes said. “There were too many things going against the client to do a temporary buydown, knowing that he’s going to keep it for a maximum of five years.”
To get the best product for the borrower, Barnes, like many LOs these days, has had to run different scenarios based on the client’s preferences, including the mortgage term, down payment and whether the purchase would be a primary residence versus investment, as that would affect the pricing of LLPA fees.
LOs across America are challenging clients to think about their financial situation several years down the line, asking about plans for kids, how much is being saved in IRAs/401Ks, and more. These days, there’s much more to the job than, “Here’s much you qualify for,” LOs said.
“What I’ve seen is that the really good mortgage advisors today are taking time to understand each borrower’s circumstance, short term goals, long term goals and put together a plan with them of how long are they going to be in the house, how much do we need to put down on that house, and understand not every loan is created equal for every person, depending on what their goals are,” said Brian Covey, executive vice president of Revolution Mortgage.
Understanding the borrower
Randy Kaufman, a senior loan originator at Notre Dame Federal Credit Union, offered his client the option to float his rate for a transaction that is set to close at the end of June.
When Kaufman’s client’s offer was accepted at the end of May, the client anticipated that the debt ceiling legislation would pass and that the Federal Reserve would pause hiking rates in the upcoming June FOMC meeting, which in turn would bring mortgage rates down.
“They didn’t want to lock it yet, they wanted to let it flow. So they’re saving themselves some money by letting it flow,” Kaufman said.
Being conservative never hurts and being strategic about the market is important, Jared Sawyer, a sales manager at loanDepot,said.
loanDepot offers borrowers the option to float rates but Sawyer sees the majority of his clients want predictability when it comes to rates – opting to go with a permanent rate buydown.
“I would say about 95% of first-time homebuyers want to know what their payment is going to be out of the gate. They don’t have to worry about that changing on them,” Sawyer said.
Especially when the seller is willing to give concessions, the buyer is able to get a credit for closing and contribute to buying down points.
Seller concessions are abundant in some of the markets that have cooled – including Oregon and Arizona – and his clients are able to take advantage of that, Sawyer noted.
“I let them know their options. These are the options you can do and here are the pros and cons of this (…) About 90% of the conversation we’re having, [I’m hearing] we don’t want to look at something temporary. We want to make sure we know what our payments are going to be,” Sawyer said.
Every scenario is different and he finds some of his experienced buyers – those who bought their first homes already are open to the option of a temporary buydown, according to Sawyer,
Temporary buydowns often make more sense for buyers planning to live in the home long term as they are more likely to have a refi opportunity during that time period, Barnes noted. Also, seller-funded temporary buydowns may not be available depending on how hot market conditions are.
A game of conversion for loan officers
“The knowledge of what the market is doing and knowing why it is happening is critical right now more than ever,” Jose Valenzuela, a loan officer at Motto Mortgage, said. “If you can paint a picture for the borrowers explaining potential scenarios both good and bad, it’s also critical.”
Valenzuela has been able to create a high pull-through closing after retaining pre-approved clients thanks in part due to weekly check-ins with his clients. Being a “trusted advisor” is important in an environment where buyers are trying to find their homes. It’s important to focus on what the buyer might be looking for, Valenzuela said.
For instance, having a nice yard for a borrower’s son could mean they can pass on to their child like their parents did for them, he noted. Some borrowers are focused on legacy to leave for their child’s future.
“Have a meaningful conversation about ways to focus on legacy like a living trust, a financial planner (…) This will keep you in the driver’s seat against almost any other loan officer,” he said.
Many loan officers are hoping for the market to turn, which in turn would bring back some refi business among homebuyers who locked in rates at close to 7% levels at the latter half of 2022.
“I would not hold my breath on that I would plan on this environment being consistent. You have to work three times as hard to make the same paycheck you did last year in this environment,” Sawyer said.
Ultimately, it’s a game of conversion. Loan officers need to take more time with borrowers and ask better questions to secure loans, Covey said.
“Even if you’re talking to fewer people, if you can convert at a higher percentage, you’re still getting the volume and velocity of applications and closings that you desire.”
The Reserve Bank of Australia (RBA) has lifted the cash rate by another 25 basis points, taking it to 4.10%.
Savings.com.au will provide regular updatesbelowof each lenders’ announcements regarding passing on this June 2023 rate hike to variable rate home loans.
All rate changes below refer to lenders’ responses to the RBA’s rate hike on 6 June 2023.
Keep updated.
Subscribe for rate change alerts.
Key notes:
P&I = Principal and Interest, IO= Interest Only, OO=Owner-occupiers Basis points explained: 1 basis point = 0.01%
Big-four home loan rate changes
ANZ
ANZ interest rate rise (pending)
June 2023 rate rise:
Applies to:
Effective date:
Announcement date:
CommBank
CommBank interest rate rise (pending)
June 2023 rate rise:
Applies to:
Effective date:
Announcement date:
NAB
NAB interest rate rise (pending)
June 2023 rate rise:
Applies to:
Effective date:
Announcement date:
Westpac
Westpac interest rate rise
June 2023 rate rise: 25 basis points
Applies to: New and existing variable rates
Effective date: 20 June
Announcement date: 6 June
Other lenders’ home loan rate changes
AMP interest rate rise (pending)
ANZ Bank interest rate rise (pending)
Athena interest rate rise (pending)
Australian Military Bank interest rate rise (pending)
Australian Unity interest rate rise (pending)
Auswide Bank interest rate rise (pending)
Bank Australia interest rate rise (pending)
Bank of Melbourne interest rate rise (pending)
Bank of Queensland (BOQ) interest rate rise (pending)
Bank of Sydney interest rate rise (pending)
Bankfirst interest rate rise (pending)
BankSA interest rate rise (pending)
BankVic interest rate rise (pending)
Bankwest interest rate rise (pending)
BCU interest rate rise (pending)
Bendigo Bank interest rate rise (pending)
Beyond Bank interest rate rise (pending)
Citi interest rate rise (pending)
Commonwealth Bank interest rate rise (pending)
Credit Union SA interest rate rise (pending)
Defence Bank interest rate rise (pending)
G&C Mutual Bank interest rate rise (pending)
Gateway Bank interest rate rise (pending)
Great Southern Bank interest rate rise (pending)
Greater Bank interest rate rise (pending)
Heritage Bank interest rate rise (pending)
Homeloans.com.au interest rate rise (pending)
Homestar Finance interest rate rise (pending)
Horizon Bank interest rate rise (pending)
HSBC interest rate rise (pending)
Hume Bank interest rate rise (pending)
IMB Bank interest rate rise (pending)
ING interest rate rise (pending)
Loans.com.au interest rate rise (pending)
Macquarie Bank interest rate rise (pending)
ME Bank interest rate rise (pending)
Mortgage House interest rate rise (pending)
MOVE Bank interest rate rise (pending)
MyState Bank interest rate rise (pending)
Newcastle Permanent interest rate rise (pending)
OneTwo Home Loans interest rate rise (pending)
P&N Bank interest rate rise (pending)
People’s Choice interest rate rise (pending)
Police Credit Union interest rate rise (pending)
QBank interest rate rise (pending)
Qudos Bank interest rate rise (pending)
RACQ Bank interest rate rise (pending)
RAMS interest rate rise (pending)
Reduce Home Loans interest rate rise (pending)
Resimac interest rate rise (pending)
St George interest rate rise (pending)
State Custodians interest rate rise (pending)
Suncorp Bank interest rate rise (pending)
Sydney Mutual Bank interest rate rise (pending)
Teachers Mutual Bank interest rate rise (pending)
The Mutual Bank interest rate rise (pending)
Tic:Toc interest rate rise (pending)
Ubank interest rate rise (pending)
UniBank interest rate rise (pending)
Unloan interest rate rise (pending)
Virgin Money interest rate rise (pending)
Well home loans interest rate rise (pending)
Wlth interest rate rise (pending)
Yard interest rate rise (pending)
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Current low rate home loans
For quick reference: As things stand, these are some of the lowest-rate home loans Savings.com.au has found on the market:
Lender
More details
4.6 STAR CUSTOMER RATINGS
Low rates for purchase and refinancing
Simple online application process
No fees, unlimited redraws, 0.10% offset
Low rates for purchase and refinancing
Simple online application process
No fees, unlimited redraws, 0.10% offset
Variable
View disclaimer.
To see how these rate movements compare with previous RBA rate changes, refer to our past rate change pages:
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers’ products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider’s web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.
Images of devastation emerged after the Japanese earthquake and tsunami. We watched water sweep away vehicles and houses; we saw stunned men and weeping women in the ruins. But we also heard about survivors whose homes weren’t flattened or inundated, people who subsisted on stockpiled food and water while waiting for help. Living on the “Ring of Fire” means temblors and tidal waves are a fact of life — and so is disaster preparedness.
We need to be prepared, too. The Department of Homeland Security’s Ready America program says we should be able to sustain ourselves for at least three days after an emergency, whether that’s a hundred-year storm or a civil insurrection. How ready are you?
Right now, before anything bad happens, is the time to build your emergency kit — and you can do it on a budget. In fact, you probably already have some (or a lot) of what you need.
The (Sometimes Icky) Basics
During those three days you need to be fed, hydrated and sheltered. You also need a place to poop.
Yeah, that’s gross. You know what else is gross? The idea of everyone in your apartment building or subdivision yelling “Gardyloo!” and flinging slops out the window. Cholera epidemic, anyone?
When I was a kid, predictions of bad weather had us filling bathtub and buckets. That’s because if we lost power we lost our well pump, i.e., no way to flush the toilets. That’s still the first line of short-term defense; if you have any warning, stash yourself some water.
When that’s gone you’ll need at least one large container into which everyone can evacuate. Maybe a repurposed five-gallon detergent, paint or pet-litter bucket? If you don’t have one:
It’s possible to buy a toilet seat that snaps onto a bucket, which makes things easier. Or buy a prefab one (search online for “bucket toilet”) for $20 or less. Decide now where you’ll put your temporary toilet. The garage? The back porch? Maybe even in the actual bathroom? Anywhere but the place where you plan to eat and sleep. Trust me on this.
Ready for an overshare? Here’s how I’d handle disposal if the you-know-what hits the fan here in Seattle:
Use the bucket (in a former life, it held detergent)
Put soiled paper into a garbage bag (and tie it really tightly between uses)
Flush the contents of each, little by little, once the emergency has abated
Please do not do your business in the condo-complex yard, no matter how much fun it is to pee outdoors.
Important: You’ll want a bottle of hand sanitizer close to the bucket. Really close. E. coli is nothing to fool with.
Food and Drink
Ready America recommends one gallon of water per person per day. It’s easy to buy bottled water but much cheaper to fill up two-liter soda bottles, or inexpensive pitchers or jugs. (Don’t drink soda? Surely someone you know does.)
Refill the containers every few months; mark it on the calendar so you don’t forget. Don’t just dump the old water, though. Use it in some way, such as:
Watering houseplants or your garden
Bathing (add hot water unless you like your tub-time tepid)
Cooking
Filling pet dishes
Doing hand laundry
Washing vegetables or fruit
When it comes to emergency rations, you can go as stripped-down or as fancy as you like. But it must be something you’d eat anyway, because you’ll need to rotate and replace your stock. If an earthquake happens six years from now, do you want to be eating 2011 ramen?
Some obvious choices:
Canned beans, stews, soups, fruits, vegetables, meats and/or fish
Protein bars, granola bars, dried fruit
Powdered milk and cereal
Peanut butter or other nut butters
Crackers or pilot bread; I recommend the latter, because it lasts for-freakin’-ever
Note: For more on pilot bread, see this funny video from The Anchorage Daily News.
[embedded content]
Then watch a second, even funnier video from the same source.
[embedded content]
If you’ll have a way to heat water, consider a few instant soups or other dehydrated foods such as hummus or bean dip. Flavored noodle cups/bowls do go on sale; check Asian markets for the best selection. Hot drinks are both warming and soothing, so stock up on bouillon cubes, teabags, instant coffee and hot chocolate mix.
Survival Shopping at Bargain Prices
The camping section of your local sporting-goods stores has quite a selection of dehydrated meals. So do online stores that sell survival/disaster preparedness supplies. But I’m focusing on inexpensive ways to prepare.
So watch for sales and use coupons and/or rebates when possible. A few of my better supermarket deals: envelopes of pre-drained tuna for free, granola bars for a penny each, cocoa mix for 5 cents per serving, a large bag of M&Ms for 50 cents, 12 ounces of peanuts for 69 cents.
Olives, marinated veggies, sun-dried tomatoes and other fancy foodstuffs from the dollar store will liven up your basic grub. After two days of PBJs and canned beans, a few pickled vegetable will taste like manna.
The dollar store has cheap bandages and rubbing alcohol, too. So do places like CVS, Walgreens and Rite Aid; I’ve obtained baby wipes (aka “shower in a pouch”), hand sanitizer, analgesics, energy bars, crackers and batteries free or nearly free thanks to rebate programs at those stores.
About those batteries: Aim for at least one flashlight per room. Hand-cranked flashlights (and radios) don’t need batteries. If you can’t afford one right now, put it on your wish list; maybe Great-Aunt Irene will give you that instead of a cheese log next Christmas.
If you must use candles, select votive-type ones and set them inside wide-mouthed jars, placed in areas where no one can accidentally knock them down. Buy the votives for pennies at post-holiday clearance sales. Those sales are also good for cheap paper plates and bowls — not eco-friendly but really useful if you can’t do dishes for days.
Layering is essential in cool or cold temperatures. Watch for thermal underwear, wool pants and other useful items on Craigslist/Freecycle or at yard sales. I bought polypropylene longhandles and a down vest at a thrift store. Make sure everyone has a stocking cap, too.
Look around your house to see how much of this stuff you already own. Most of us at least have sweaters or sweatshirts. If you’re not in a super-cold area, a comforter might double as a sleeping bag. A hibachi could substitute for a bottled-gas camp stove — but remember you can use these things outdoors only, because carbon monoxide is deadly.
Miscellaneous Tips
You can’t truly be ready for a disaster. It’s always stressful and often terrifying. However, you can at least be prepared. Here are a few more items to keep in mind:
Learn the location of your local/regional emergency shelter, just in case.
Keep a cache of cash — smalls bills and coins — on hand. No power means no debit or credit if you do find a store that’s open.
Put supplies where you can get at them easily, not down in the crawlspace or up in the rafters.
Wheeled garbage cans make great storage: Your items will be protected and movable. Label each one so you can find what you need, fast.
Water left over after making tea? Don’t let it get cold again — pour it into a thermos.
You’ll want basic first-aid supplies, including an anti-diarrheal medication. Many of these items can also be bought cheaply or free with those drugstore rebates.
On maintenance meds? Get in the habit of refilling as soon as you’re allowed, i.e., don’t wait until you take your last pill to call it in.
Choose no-salt canned vegetables. Not only are they healthier, you can use the drained-off liquid to dilute canned soup. Save the syrup from canned fruits, too, to sip for quick energy, settle an upset stomach or sweeten a cup of tea.
Don’t forget pet food and litter. Factor in extra water for Fido and Fluffy, too.
Have some playing cards or small games that everyone can play. I suggest Mad Libs.
Make sure you have a manual can opener. You’ll feel darned stupid asking to borrow a neighbor’s.
How about it, readers: Any ideas for getting ready without breaking the bank?
By Evlin DuBose · Thursday, 1 June 2023
· 3 min read
Fact Checked
Advertiser disclosure
Last month, the Reserve Bank defied expectations with an additional 0.25% hike to the official cash rate. Lenders soon jumped at the opportunity to lift their interest offers on variable home loans – with some outrunning even the RBA with 35 – 50 basis point jumps.
Cashback offers for refinancers have dried up while even introductory rates saw significant rises. Seems lenders are no longer concerned about being competitive: now, it’s all about recouping their costs.
As a result, the average variable interest rate for owner-occupiers making P&I repayments sits at 6.31% p.a. in the Mozo database. Oh, Alexander wept.
Yet there is some good news buoying the sinking house prices: we may be nearing the next rate hold, with many experts predicting a steady cash rate in June and July. While the August RBA meeting remains ‘live’, this could smooth the way for buyers ready to jump into an already warm winter property market.
So have the recent changes reshuffled lenders for June? Let’s break down the numbers.
Fixed rates home loans still point north, though longer terms may wind back
Fixed rate home loans remain hard sells in a tight market, with some shorter terms climbing point by point in the Mozo database. However, some lenders even made significant cuts. Four and five year terms in particular inched backwards, suggesting banks expect rates to smooth over in the long run. Given how high variable rates have soared, some of these offers may even look competitive.
Indeed, locking in your interest rate to ride out the remainder of the rate cycle could be a good way of guaranteeing your repayments for a few years. But with inflation expected to slow by mid-2024, variable rates may unwind sooner than later.
At the time of writing, these are the average fixed rates for owner occupiers with an 80% LVR and a $400,000 loan:
1-year: 5.75% p.a.
2-year: 5.83% p.a.
3-year: 5.87% p.a.
4-year: 6.21% p.a.
5-year: 6.27% p.a.
Recent home loan rate movements
Sweeping changes hit the home loan market last month. Here are some of the most eye-watering trends.
Lenders funded by Adelaide and Bendigo Bank, such as Tic:Toc, Mortgage House, Yard, and Qantas Money hit some of their variable rates with increases of 0.30% or more.
Commonwealth Bank, Westpac, and Suncorp hiked their packaged and welcome rates.
Cashback for refinancers, no more. Commbank, Westpac, NAB, Suncorp, and ING will officially step back their cashback offers this winter.
All makes the graph more impressive!
Current lowest home loan rates
While offers below 5% are few and far between, there are still some sharp ones available in the Mozo database. Here are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.
Lowest variable rates — Mozo database (1 June 2023)^^
Lender
Loan
Variable rate
The Mutual Bank
Special Budget Home Loan
4.94% p.a. (4.95% p.a. comparison rate*)
Community First Bank
Basic Variable Home Loan Special
4.95% p.a. (5.00% p.a. comparison rate*)
Unloan
Unloan Variable
4.99% p.a. (4.90% p.a. comparison rate*)
Homeloans360
Owner Variable Home Loan
5.04% p.a. (5.04% p.a. comparison rate*)
Lowest and average fixed rates — Mozo database (1 June 2023)^^
Term
Rate leader
Fixed rate
1-year
Homestar
4.99% p.a. (5.77% p.a. comparison rate*)
2-year
Australian Mutual Bank
5.23% p.a. (5.92% p.a. comparison rate*)
3-year
The Capricornian
4.99% p.a. (6.29% p.a. comparison rate*)
4-year
HSBC
5.29% p.a. (5.83%% p.a. comparison rate*)
5-year
HSBC
5.29% p.a. (5.81%% p.a. comparison rate*)
The above are the lowest rates in our database for borrowers with an LVR < 80%. More competitive rates are available for borrowers with lower loan-to-value ratios.
If you’re considering buying property or refinancing your existing mortgage, use Mozo’s home loan comparison table to examine lenders side-by-side, or use our refinance calculator to see how much you could save.
^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.
Compare home loans – last updated 3 June 2023
Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.47% p.a.variable
5.62% p.a.
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Express Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
interest rate
5.47% p.a.variable
comparison rate
5.62% p.a.
interest rate
5.47% p.a.variable
comparison rate
5.62% p.a.
Upfront fees
$384
Ongoing fees
$10.00 monthly
Discharge Fee
$350.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$5,000
maximum borrowing amount
$3,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment
5.49% p.a.variable
5.51% p.a.
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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Neat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
interest rate
5.49% p.a.variable
comparison rate
5.51% p.a.
interest rate
5.49% p.a.variable
comparison rate
5.51% p.a.
Upfront fees
$250
Ongoing fees
$0.00
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
no
Maximum loan to value ratio
60.00%
minimum borrowing amount
$80,000
maximum borrowing amount
$5,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Special Real Deal Home Loan
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment
5.49% p.a.variable
5.53% p.a.
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
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Special Real Deal Home Loan
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
interest rate
5.49% p.a.variable
comparison rate
5.53% p.a.
interest rate
5.49% p.a.variable
comparison rate
5.53% p.a.
Upfront fees
$595
Ongoing fees
$0.00
Discharge Fee
$0.00
Extra repayments
yes – free
Redraw facility
yes – fees apply
Offset account
no
Maximum loan to value ratio
80.00%
minimum borrowing amount
$150,000
maximum borrowing amount
–
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
$3k cashback when you refinance your home loan, >$500k, LVR 90%, apply by 30 June & funded by 31 August 2023. Receive $2k cashback for loans> $250k. First home buyers receive $1k cashback, apply by 30 June & funded by 31 August 2023, LVR 95%,>$500k.
Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
5.54% p.a.variable
5.79% p.a.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
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Offset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
Upfront fees
$350
Ongoing fees
$248.00 yearly
Discharge Fee
$400.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
60.00%
minimum borrowing amount
$150,000
maximum borrowing amount
$10,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Monthly
Special Offers
–
Solar Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
5.98% p.a.
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
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Solar Home Loan
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
Upfront fees
$530
Ongoing fees
$0.00
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$50,000
maximum borrowing amount
$1,500,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
*
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**
Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
The holidays are about six months away. Why wait until the last minute to shop? Answer: You shouldn’t. And you won’t have to if you have a decently stocked gift closet. Some people I know keep their eyes open starting on Dec. 26 and are finished by mid-summer.
It’s more than just the December holidays, though. A small selection of “evergreen” gifts (non-perishable, non-trendy) means you’re prepared for any birthday, anniversary or new baby that comes along.
Building your gift closet doesn’t have to cost much. I always trot out the example of the puzzle depicting the Sistine Chapel ceiling, the perfect gift for a jigsaw-loving relative. Still shrink-wrapped when I found it on half-price day at a thrift shop, it set me back a whopping 35 cents.
If you wait until the last minute, you’re likely to spend more. On the afternoon of the baby shower, you might be tempted to stop at the first store you see and grab the item that’s closest to the door. Compare that with, say, the 89-cent newborn outfit that I bought at a post-holiday clearance sale.
(It wasn’t junk, either, but made by Carter’s. And it was cute as hell. I made the girl-noise when I saw it.)
Incidentally, it doesn’t really have to be a closet. I keep my stash in a cedar chest that I bought for $15 at a garage sale. Not only are my gifts cheap, they’re guaranteed moth-free! Here are some ways to build an evergreen gift stash without breaking the bank.
Clearance tables. Both post-holiday and everyday “last chance” sales can yield amazing finds. In late December the department stores want to get rid of unsold hat-and-scarf sets, gloves, slippers and “executive” gifts (e.g., day minders or business card holders) — and all of these can be held until next year’s Christmas or this year’s Father’s Day. Classic toys (stuffed animals, puzzles, books) can be had for a song if you’re patient enough to wait until Target or Walgreens really wants to get rid of them. (I’ve seen discounts as deep as 90%.) Remember that clearance sales happen in a lot of places: hardware stores, craft shops, drugstores, souvenir stands, supermarkets, office-supply stores.
Tip: If you see a gift set (foodies, spa items) wrapped in a Christmas-y way, break it down and repackage the elements for a January birthday or for Valentine’s Day.
Deal sites. Dealnews, Eversave, My Bargain Buddy and other money-saving sites can be dangerous if you’re a compulsive buyer. Pick your spots, though, and you might see a lovely package of fancy teas that would be perfect for your sister, or a swell set of socket wrenches that would be perfect for your other sister. You’ll spend relatively little to get them, especially if you get site credits for having referred other members.
Social commerce sites. Whether you’re buying a gift item or a discounted gift certificate you can use to buy a gift yourself, Groupon et al. can really stretch your buying dollars. Recently I saw a $20 Old Navy gift certificate for only $10, which could translate into shorts, tank tops or other items (especially if you wait for clearance sales). You could also give the certificate itself, if it has a decently distant expiration date — a massage or a spa day would be a great gift for a babysitter, housecleaner or teacher. And a middle-school-aged niece or nephew might love to get $20 worth of buying power at Old Navy.
Thrift shops. It’s amazing what you can find in the secondhand store — and as noted above, some of it has never been opened. Extra frugal points if your finds are “tag color of the day” specials or found during half-off sales.
Note: GRS readers discussed at great length whether it’s okay to give thrift-store gifts. If this really makes you uncomfortable, don’t do it. But here’s my advice: Get over yourself. Nobody has to know where you bought the present unless you choose to tell them.
Yard sales. We’re heading into the prime garage-sale season. I’ve found beautiful books, stationery and card sets, candles, book-and-toy combos, journals and other items — all new or seemingly unused — that became birthday or Christmas gifts. None of them cost more than $1.
Tip: Toward the end of the day, go back to the yard sale — they might be ready to haggle.
Rummage sales. The ones held indoors are even better than garage sales, because you’re not sweating in 95-degree heat while you shop.
Social media giveaways/contests. Companies will do anything to get noticed — including hand out free clothes, books, sporting equipment, jewelry, TVs, computers or big bundles of cash. (Believe it or not, I once saw a contest whose prize was a year’s worth of health insurance.) To find such contests, try using Twitter hash-tag searches (“#giveaway” or “#freebie”) or checking a Facebook app called “Wildfire.” Or do it the easy way: Find yourself a good freebie blogger and watch for the giveaways you really want.
Tip: Free software such as Roboform will fill in contact info automatically, making your entries more efficient. Also: Google “second-chance drawing” — contest junkies, aka “sweepers,” know that the odds are much better than in the initial drawing.
Take online surveys. You have to be choosy, since some companies ask for a lot and give back relatively little. But some people make a decent little side income answering questions. Depending on the site, you can redeem points for physical prizes, gift cards or even cash. I’ve had a lot of luck with Clear Voice Surveys and Valued Opinions, through which I’ve obtained dozens of Amazon gift cards in the past few years. (These days I don’t keep them, though; I give them away on my website.)
Rewards programs. Got a credit card that gives points? Cash some in for gift cards you can use to shop or that you can give outright. Or join a rewards program like Swagbucks or MyPoints, which let you earn gift cards, prepaid debit cards and other items. I’m particularly fond of Swagbucks, myself; right now I’m squirreling away Amazon gift cards until Black Friday. I’ve also given Christmas gifts obtained through My Coke Rewards: magazine subscriptions, a NASCAR hat, a set of barbecue tools, T-shirts, movie tickets.
Tip: Ask family or friends to save My Coke Reward points for you. Check the recycle bins at work, or outside your apartment house, too.
Gift swaps. Got a gift you don’t want? So do a lot of people. Invite family and friends to bring over items, then trade to your hearts’ content. Try not to be sad, though, if someone brings a package of teas or socket-wrench set that look awfully familiar.