Posts Tagged ‘Lending’

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 »

Possible Changes to Lending Laws

The federal government is currently weighing up proposed changes to responsible lending laws, that could see a relaxation in credit terms, as part of the recovery from the financial devastation of COVID19.

If the amendments are passed, loan approvals for investors should become more streamlined; making access to credit more effortless than it has been in the past; particularly after the tightening up post-GFC (Global Financial Crisis), and further down the … Read the full post »

Easing of Lending Restrictions

With the handing down of the Federal Budget last week there is much to digest and indeed the path to economic recovery is a long one; however, the government have been widely praised for their handling of the pandemic, particularly in regard to stimulus packages aimed at keeping the economy moving, and the JobKeeper payments enabling employers to retain staff.

One of the real game changers, in term of stimulus emerged … 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 »

Use Your Power!

As a property owner, or potential property owner, you most likely either have or will need a mortgage, usually for an extended period of time. Mortgages are big business for financial institutions, and there is a lot of competition out there, with not only the big four to choose from, but many other players have come into the market, some of whom can offer a better deal…in any case it … Read the full post »

Banking Royal Commission

On Monday this week, High Court Justice and Royal Commissioner Kenneth Hayne handed down the report from the banking Royal Commission, which had 76 recommendations which will challenge key aspects of banking and financial services including superannuation and mortgage broking.

There has been much discussion during the Royal Commission, and since the report’s findings/recommendations have been revealed, both major political parties have indicated support for all recommendations.

The key recommendations around banking … Read the full post »

Interest Rates

Whilst the Reserve Bank takes a break in January, leaving interest rates unchanged by default; a New Year is an opportune time to start to think about the financial health of your home loan, and check your interest rates against competitive financial institutions, there are some genuinely attractive packages in the marketplace that can save you thousands.

What is the outlook like for 2019?

Well, no-one has a crystal ball, and the … Read the full post »

Pre-Approval…Be Prepared!

You’ve decided to take the plunge and buy a property; it may be your first, or a subsequent number, even an investment property.  Congratulations!  However, it is strongly recommended that you gain pre-approval prior to looking – this will save you time and minimise the likelihood of disappointment by looking at homes that end up being outside what your bank agrees to lend you.  It also means that when you … Read the full post »