Getting the best mortgage is no-longer a one-size-fits-all issue – and if Australians want a loan, they need to understand what banks are looking for in a mortgage applicant. Every lender is looking for different things in an ideal borrower and, as a result, some lenders are offering really sharp deals for their target market. If you have lots of …
This week, the Reserve Bank of Australia (RBA) produced research showing “older loans typically have higher interest rates than new loans.” Typically the difference was 0.4 per cent – on a $500k loan that equates to paying an extra $2,000 interest payments a year. The RBA concluded “existing borrowers who are able to refinance with another lender or negotiate a …
The federal government’s first home loan deposit scheme is set to drive up prices in some segments but create value in the other property segments that do not qualify for government assistance Already 3,000 potential first homebuyers were registered by banks in the scheme’s first month – January. At Origin Finance, our conversations with CBA and NAB show a huge …
Economic growth will take a 0.3 percentage point hit over the December and January quarters due to Australia’s bushfire crisis, according to the latest analysis from Goldman Sachs. But could it be the bushfires actually have an economic stimulus? Devastation is rightly used to describe the impact on those individuals and communities affected by the fires. But could they have …
Author – Graeme Salt This time last year, one economist was predicting Australia would have the world’s biggest house price declines. Yet, 2019 has ended with price growth almost at record peaks and many wondering whether this growth will continue into 2020. Some economists have gone so far as to argue that next year’s average growth will be 11 per …
Author – Graeme Salt Australia is unlikely to see “negative” or “below-zero” interest rates. At the same time, with wage growth at record lows, interest rates are likely to be at moderate levels for some considerable time. That is the conclusion of two recent speeches from the Reserve Bank of Australia (RBA) In a speech to the Australian Business Economists …
Author – Graeme Salt First Home Buyers are set to rush to the market thanks to a new government scheme which goes live in a few weeks. But with the scheme only available for 10,000 homes a year, Australians are being encouraged to get their act together to avoid being pipped to the post. The First Home Loan Deposit Scheme …
Sydney and Melbourne are expected to have 8m inhabitants each by 2050. Where these people will live will have a huge impact on our property markets. Increasingly, Australians are choosing to live in apartments; in fact the number of apartment dwellers has increased by 78 per cent in the past 25 years. But some parts of Australia are allocated for …
Author: Graeme Salt Reserve Bank analysis shows that more Australians are getting a better deal on their home loans, despite banks being under fire for not passing on interest rates in full. That is because lenders are forced to respond to increased competition. It also shows “very few” borrowers actually pay the Standard Variable Mortgage Rate (SVR), with the average …
The margin between the rates banks charge loyal customers and those they charge to entice new customers has almost doubled since the Reserve Bank of Australia started cutting rates in June New research shows that the gap in the rate offered to new customers, compared to that charged to existing customers, has blown out to 0.79 per cent, from an …