Posts Tagged ‘Home Loan’

Long-Term Rates on the Rise

Although the official cash rate remains at historic lows, and the Reserve Bank is not expected to lift interest rates until 2024, some of the major banks have started to raise their long-term fixed-interest rates, with the Commonwealth Bank (CBA), being the latest.

Further hikes expected later this year suggest we could see a tide turning on Australia’s interest rates.  The cost of long-term money for the banks is rising meaning … Read the full post »

New Loan Commitments Continue to Grow

Despite the pandemic still hanging around creating intermittent havoc, the Australian property market remains resilient, continuing to break records and defying the logical premise of instability one would have predicted when the COVID lockdowns commenced in 2020.

The latest information from CoreLogic, sourced from the Australian Bureau of Statistics (ABS) – reveals the total value of new loan commitments for housing grew for the seventh consecutive month and shows no sign … Read the full post »

Home Loans Surge…

Queensland’s ‘The Courier-Mail’ published on September 9th that the Australian Bureau of Statistics (ABS) reported that new home loan commitments in July 2020 rose 8.9% compared with June; this is the largest month-on-month rise in new home loan activity ever recorded by the ABS.

Why is this happening?  Well, it is driven by a few factors, from the easing of restrictions (in most states), continual historic low interest rates, along with … Read the full post »

Buying Checklist

On the back of state and federal government incentives, combined with historically low interest rates, now is an extremely opportune time to buy, and there has been a national surge in first home buyers entering the market.

Below is a checklist to consider for anyone buying a home, regardless of whether it is your first, second, or an addition to your investment portfolio:

Set your long-term goals: understand WHY you are … Read the full post »

Federal First Home Buyers Scheme Launched

On January 1, 2020 the Federal Government launched a scheme to assist first home owners to enter the property market with a smaller deposit.

They will assist 10,000 borrowers eligible for the First Home Loan Deposit Scheme to buy a home with as little as a 5% deposit, as opposed to the normal 20%.  The government will provide a loan guarantee of up to 15% of the property’s value to individuals … Read the full post »

Interest Rates on Hold

The Reserve Bank of Australia (RBA) board held their monthly meeting on Tuesday; retaining the official cash rate at 1 per cent.

RBA Governor, Philip Lowe reports that despite further signs of a turnaround in established housing markets in Sydney and Melbourne; softer economic conditions and heightened global uncertainty could lead to further cuts in coming months.

“Economic growth in Australia over the first half of this year has been lower than … Read the full post »

Advantages of Pre-Approval!

When you’ve made the decision that you want to invest in a property – whether as an owner-occupier or investor, one of the first steps you should consider taking is securing a formal property loan pre-approval from your financial institution of choice.

Why?

Securing a formal pre-approval gives you great negotiation power at offer stage; as it demonstrates to the vendor that you are in a genuine financial position to purchase … Read the full post »

Loosening of Lending Guidelines!

In late May, we advised you of a review by APRA (Australian Prudential Regulation Authority) regarding lowering the interest rate buffer for residential mortgage lending; well, last Friday (July 5), they confirmed they will remove the 7% buffer taking effect immediately.

What does this mean?

It means the changes to the rates banks use for serviceability assessments; whereby they had been applying a minimum rate of 7.25% as an industry standard, despite … Read the full post »

Valuation – What a Valuer Looks For

Valuation is a critical part of the property journey – whether buying/selling or refinancing; impacting on how much you can borrow from the bank, and even whether you will be approved for finance or not.

A valuation has to be carried out by a registered and accredited valuer; mortgage lenders use valuers to ensure the property is suitable security for a loan, and that market value will cover the mortgage in … Read the full post »

Historic Move by RBA

On Tuesday, at its monthly board meeting, the Reserve Bank of Australia (RBA), has reduced interest rates, for the first time since August 2016, in line with predictions by many analysts and commentators, slashing it by 25 basis points from a record low of 1.5%, to a record breaking 1.25%.

There could be more cuts on the way; many economists predict this is the first of several more heading our way, … Read the full post »

Proposed Changes to Mortgage Lending

The Australian Prudential Regulation Authority (APRA) has flagged lowering the minimum interest rate serviceability buffer from 7% to a level determined by banks and other financial institutions; essentially removing the cap and allowing more Australians to take out mortgages and larger loans.

The removal of the interest rate floor comes amid falling house prices, record-low credit growth, and expectations that the Reserve Bank will cut interest rates this year; as early … Read the full post »

GOOD NEWS for First Home Buyers!

This week the Federal Coalition announced a new initiative to assist first home buyers to enter the property market; The First Home Loan Deposit Scheme (FHLDS) will be available to first home buyers who have saved a deposit of at least 5 per cent. This means they won’t have to save for a full 20 per cent deposit, which is often a massive financial stumbling block preventing and/or delaying buyers … Read the full post »

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