Home owners on the Gold Coast are looking to upgrade their properties despite rising interest rates, according to leading mortgage broker Loan Market.
Loan Market Gold Coast broker Nathan Swain said since the start of the year he had received a significant increase in enquiries from people about upgrading.
“Around 90 per cent of my customers are looking to sell and then upgrade to a bigger property,” Mr Swain said.
“They’re looking to upgrade from their $300,000 to $500,000 properties up into the next price bracket.
“We have had a lot of enquiries about purchasing acreage properties and the Gold Coast hinterland is proving very popular with buyers at the moment.”
Mr Swain said the Reserve Bank of Australia (RBA) lifting the cash rate from 3.75 per cent 4.0 per cent last week was no surprise and most mortgage holders would have been prepared for the increase.
He said interest rates were still below traditional average levels and the previous three increases had not had an adverse impact on the residential property market.
“The reality is that rates are still reasonable and mortgage holders understand that the RBA only reduced them last year in response to the global financial crisis,” he said.
Mr Swain said property prices were still increasing despite the upward movement in interest rates.
“The conditions for homebuyers at the moment are still very favourable,” he said.
“But people wavering over whether to jump back into the market may miss the boat and cost themselves the chance to purchase their dream lifestyle property,”
Mr Swain said those concerned about interest rates should consult a mortgage broker for expert advice on their home loan package.
“A mortgage broker can assess your personal circumstances and give you the best advice on the range of lending options available,” he said.
Loan Market Gold Coast mortgage brokers:
Source: Loan Market
Posted on March 9th, 2010.
Categories: Finance News. Tags: Gold Coast, Home Loans, Interest Rates, Nathan Swain.
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Vietnamese speakers have access to a professional home loan service, thanks to Mulgrave mortgage broker, Mai-Linh Tran.
Mai-Linh, a fluent speaker of Vietnamese, works for Loan Market Home Finance Brokersand provides a home loan service that covers home loans for first home buyers and owner occupiers, investment loans, loans for self-employed borrowers, and commercial and business loans.
“No matter what your requirements are, my aim is to ensure that your loan is the right one to meet your personal and financial goals,” said Mai-Linh.
“That can be a challenge to achieve on your own, particularly if English is not your native language,” she said.
“Helping you to understand the loans available, and the process you need to follow to successfully apply for the one that suits you, is my priority.”
Mai-Linh has over a decade of experience in the banking and finance industry to offer clients in Mulgrave and surrounds.
Loan Market Melbourne South mortgage brokers:
Posted on March 9th, 2010.
Categories: Mortgage Brokers. Tags: Home Loan, Mai-Linh Tran, Melbourne, Mulgrave, Vietnamese.
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Figures revealed by The Sunday Telegraph show homebuyers on an average income now have to work for 19,374 hours to purchase the average Australian house with an average mortgage.
Using the same equation, it took homebuyers only 7,500 hours to pay off the average mortgage in 1960.
According to CommSec chief economist Craig James, average wage earners half a century ago needed to work 25 hours to meet the monthly mortgage repayment of $25.00, based on an average five per cent interest rate and a $4,620 mortgage.
This is compared to the average wage earner today, who spends 70.7 hours at work to cover the monthly mortgage repayment for an average $283,000 loan at 6.64 per cent.
These statistics show increased costs of living and growing property prices are outstripping wages – working longer, harder and preparing earlier is essential for young Australians hoping to own a home.
Essendon mortgage broker John Vitone said that despite the end of the Federal Government’s First Home Owners Grant Boost, Australians wanting to get onto the property ladder still had plenty of options available.
“A good mortgage broker can assist you with planning a budget, and talk to you about family assistance and guarantor loans. Each lender has different criteria, just because you may not be qualified to borrow from one lender, it doesn’t mean you won’t be able to borrow from another,” he said.
Source: news.com.au, Loan Market
Posted on March 8th, 2010.
Categories: Finance News. Tags: guarantor loans, Home Loans, John Taylor.
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With his strong professional and academic background, Sydney mortgage broker Herman Wong knows how lenders operate, how they approve loans and how to get your loan application secured and settled as quickly and smoothly as possible. Even in the most complex situations, Herman can structure your loan and help you manage it on an ongoing basis.
He is also an expert at analysing investment and financial risks, particularly in property investment, in order to assist you build and grow your property investment portfolio and achieve your financial goals.
My wife and I have successfully completed somewhat difficult housing finance deals with Herman. As a practising financier myself in the non-housing area I have always appreciated his very professional and extremely attentive attitude to customer relationships and delivery of a successful outcomes to best suit our circumstances. This is a sometimes rare quality these days and Herman deserves the many accolades which he receives from all of his clients. I have no hesitation in recommending his services.
Douglas R Blunt, St Ives, NSW
Posted on March 7th, 2010.
Categories: Finance News. Tags: Herman Wong, Loans, Property Investment, Sydney mortgage broker.
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Riskmark’s December Quarter National Accounts report has revealed that the average Australian home price is 4.6 times the average person’s disposable income.
This is considerably higher than during the GFC, where this ratio fell to 3.9; a result of housing prices declining while household incomes remained surprisingly stable.
Rismark’s managing director Christopher Joye said Australian’s mortgage default rate is comparatively good.
“Recent analysis conducted by the Reserve Bank of Australia (RBA) has shown that despite Australia’s internationally high mortgage rates, debt-servicing is strong: Australia’s mortgage default rate is nearly one-tenth and one-quarter of US and UK levels, respectively,” Mr Joye said.
Mortgage holders who are concerned about their mortgage repayments should contact their mortgage broker.
Options such as refinancing and debt consolidation may be worth considering when interest rates rise or your personal circumstances change.
Source: theadvisor.com.au
Posted on March 5th, 2010.
Categories: Finance News. Tags: Debt Consolidation, Interest Rates, Refinancing.
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There are a range of investment loans and loan features available – ranging from simple home loans to more complex loans that are allow you to manage tax, gearing and repayments. Go to the residential investment loans page for more information on Lines of credit and the various interest rate options available.
Always seek advice from your accountant on investment and taxation rules for your particular situation. While you may read or hear different information, talking to your accountant and or financial planner will give you the appropriate analysis of your specific financial, investment and taxation situation. This is particularly important when you are considering investment relating to your superannuation.
Property investment – golden rules
Rental returns aren’t the only opportunity to maximise property investments. There are a few golden rules to getting the most out of the borrowing side of your property investments.
- Make sure you review your property investment loans regularly to ensure you are on the best deal available. Over the course of a long-term property investment plan, the type of loans available and your situation may change dramatically.
- Be disciplined about the kinds of add-ons you pay for with your investment loan. Only get features and benefits you will really use. They all cost you money.
- Do the math and change loans if there is a long term benefit. Even though the costs can add up to anywhere from hundreds to thousands of dollars, changing to a more sensible structure or lower interest rate now may actually save you quite a bit more over a long investment period. With the help of a good mortgage broker, you won’t even need to do most of the work.
The extra money you save or earn because of the change can help you to expand your property portfolio, undertake redevelopment projects, take advantage of the tax benefits of paying your interest in advance, finance renovations on your home, or even top up your superannuation.
Posted on March 5th, 2010.
Categories: Finance News. Tags: Investment, Property, Property Finance, Residential, Superannuation.
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Interest rates have risen this week and will continue to rise this year according to the RBA, though how quickly and by how much remains to be seen.
In his statement announcing the increase, RBA Governor Glenn Stevens said interest rates remained lower than average to most borrowers.
“The Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average.
“Today’s decision is a further step in that process,” Stevens said.
Many economists predict the official cash rate will be sitting at 4.75 per cent by the end of this year, which implies three more 0.25 per cent jumps in the coming months.
Exactly what months these future increases are implemented will depend on factors such as unemployment and inflation numbers.
Then again, there are no guarantees – the RBA could put the official cash rate up 4.75 per cent by June this year if it deems conditions are right.
Loan Market Executive Chairman Sam White says the RBA needs to keep official interest rates on hold for the foreseeable future to provide Australians with economic stability.
“These rises have really put a lot of pressure on Australian families and we’ve seen that already start to influence how they’re looking at spending their money”, he said.
“I think everyone would be happy to see rates left on hold for a while. Given last year’s uncertainty, what Australians are looking for now is confidence moving forward.”
For more information about home loans or refinancing your current loan, contact your local mortgage broker.
Source: lendingcentral.com.au, Loan Market
Posted on March 4th, 2010.
Categories: Finance News. Tags: Home Loans, Interest Rates, Loan Market, Refinancing, Sam White.
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Real estate groups continue to report strong sales month on month, in a sign that the property market is on track for another solid year.
Australia’s largest property group, Ray White, announced yesterday that it had recorded its best ever residential sales in results in Victoria last month.
According to the real estate group, statewide sales figures for February totalled in excess of $350 million – a 58 per cent increase on sales for the corresponding month.
Ray White Victorian general manager Marcus Williams said the highly active residential market was expected to continue in the short term despite the Reserve Bank raising official interest rates to 4.0 per cent earlier this week.
“We anticipate whilst the market will absorb the latest rate rise, the impact of rates rising another percentage point, as predicted by some economists, may prove challenging as the year progresses,” Mr Williams said, adding “now is the best time to sell, while demand is high”.
“Auctions have been achieving spectacular results. We had a one bedroom apartment in St Kilda, for example, which sold for $511,000, $136,000 above the reserve price,” he said.
But while demand is high, supply is not. To find out about a property investment home loan click here.
Posted on March 3rd, 2010.
Categories: Property. Tags: Australia, Home Loan, Investment, Proeprty, Ray White.
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Following yesterday’s Reserve Bank meeting, at which the board raised the official cash rate by 25 basis points, all the major banks have followed suit by also raising home loan interest rates by 25 basis points.
The changes to standard variable home loan rates will mean about an extra $50 a month in mortgage repayments on a $300,000 loan.
Some economists are predicting up to 1 per cent more in interest rate rises over the rest of 2010, something which current and prospective borrowers will need to consider.
A home loan assessment can assist you to review your requirements and ensure your home loan is suitable for your current situation and the prospective interest rate outlook.
Find your local mortgage broker anywhere in Australia:
Posted on March 3rd, 2010.
Categories: Finance News. Tags: Home Loan Assessment, Home Loan Interest Rates, Home Loan Repayments, Interest Rates, Mortgage Broker.
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The Reserve Bank (RBA) shifted interest rates a little closer to ‘average’ by raising the official cash rate 25 basis points at their meeting today.
Official interest rates now stand at 4 per cent, still somewhat below what the RBA describes as normal or neutral – somewhere around the 5 per cent mark.
The RBA stated after the meeting that the board believes the ‘risk of serious economic contraction’ has passed, with Australia and many of its Asian counterparts holding up well over the past year.
Areas such as investment in resources, lending for home loans and housing prices are showing strong results, while conditions are improving in business lending, business confidence and general lending criteria.
With many economists predicting the OCR will hit 5 per cent by the end of this year, Loan Market executive chairman, Sam White, has warned mortgage holders to be mindful of these upcoming rises and budget accordingly.
If you have any questions or think a finance assessment would be beneficial to you, contact your local mortgage broker.
Source: www.rba.gov.au, Loan Market
Posted on March 2nd, 2010.
Categories: Finance News. Tags: Home Loan, Interest Rates, Loan Market, Mortgage Broker.
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