Rates on Hold
As capital city house prices continue to heat up, The Reserve Bank of Australia has announced the result of its monthly board meeting. As expected, the Reserve Bank left the official cash rate at a record low of 2.0 per cent for the third consecutive month. All 33 economists and commentators surveyed by comparison website […]
Winter’s A Good Time To Buy Property
Its winter, there are fewer properties on the market and prices are at record highs, can you still buy property? The answer is yes – if you are organised. When it comes to the quieter months, it is likely that there will be fewer properties on the market to choose from, however there […]
Case Study – Steve and Colleen Pocknall
Steve and Colleen contacted me in February 2014, wanting to buy their first home together. They had a strong saving’s history. But their loan application was complicated by the fact that Colleen was new into her teaching contract and they were dipping their toe into the Sydney property market just as it was going into […]
The Money Is Still Flowing
Despite recent changes to investor lending introduced by the banks, many borrowers can still get a loan – and at great rates. Prompted by pressure by the Australian Prudential Regulatory Authority (APRA), many lenders are reducing the amount they will lend to investors. However, a buoyant property market, combined with a competitive banking system, means […]
Time to Fix?
A recent surge in the cost of funding term loans has triggered a wave of repricing in the fixed rate mortgage market in the past week. Unlike variable rate mortgages that are linked to the Reserve Bank’s monthly decisions on the cash rate, fixed rate mortgages are priced according to movements in rate benchmarks […]
Your Bank May Not Allow You To Invest Where You Want To Invest
Due to government pressure, banks are making it tougher to buy investment properties. Now, one bank has decided to restrict lending in one particular state. This decision will have a profound impact on which property markets will thrive and which go sideways. This week, ING announced a reduction in the amount it will lend […]
We May Have Had a Rate Cut, But the Screws Are Being Turned
Whenever the Reserve Bank reduces interest rates, it is always a case of good news/bad news. Sure it is good news that mortgage repayments become lower. But it is also means that the economy is slowing. The implications of this week’s announcements are more nuanced than ever before – some investors will be […]
Six Tips to Mortgage Approval
While interest rates are low, the property market in parts of the country is red-hot, which means that would-be home buyers need to maximise their borrowing capacity if they want to buy their dream home. Here are some tips that will boost your borrowing powers: Know what the banks know The first thing any […]
Would You Like $1,000 and a Better Home Loan?
There is intense competition between the banks at the moment – and they are competing for your business. Recently, three of the major banks offered $1,000 cash-back to clients who switch to them. But the good news for borrowers does not stop there. The banks are also offering massively discounted rates; which means that once […]
Can You Be Sure You Got the Best Deal?
There are two types of home loan borrower I meet at a BBQ, those who: go to their local branch for a home loan, accept the offer they are sold and then boast that ‘XYZ bank gave me a 0.8 per cent discount for being a loyal customer!’ ask themselves how they can get […]