Loan Market Finance News

The Reserve Bank of Australia (RBA) will need to reduce the official interest rate by at least another half a percentage point next month to pressure major banks into passing on reductions to customers, says leading mortgage broker Loan Market. Loan Market Corporate Spokesman Paul Smith said the big banks had all indicated they might not be able to match the 25 basis points cut to the cash rate expected to be made when the RBA board meets on February 7. “The RBA will have to go hard with at least a 50 basis points reduction at their next meeting and the ... read more...

Home loan customers refinancing their existing mortgages are set to continue their strong activity in the housing finance market during 2012, according to leading mortgage broker Loan Market. Loan Market Chief Operating OfficerDean Rushtonsaid the company experienced a 16 per cent rise in refinance enquiry over the past 12 months. Mr Rushton said the Reserve Bank of Australia (RBA) reductions in official interest rates in November and December last year had also helped stimulate refinancing activity. “With expectations of more rate cuts by the RBA in the first half of 2012, we should see sustained growth in the refinance market, which along with ... read more...

Australian home owners drawing upon revolving lines of credit for their mortgages have dropped off dramatically since the global financial crisis, says leading mortgage broker Loan Market. Loan Market Chief Operating OfficerDean Rushtonsaid latest Australian Bureau of Statistics (ABS) data showed that take up of line of credit home loans was at a 13 year low. Mr Rushton said the ABS found that in November, 2011, only 3.7 per cent of home loans were revolving line of credit – the lowest number since May, 1998. He said this was well down on the most recent high of 10.2 per cent for line of ... read more...

The Reserve Bank of Australia (RBA) reducing official interest rates has encouraged consumer confidence and generated growth in the home finance sector, says leading mortgage broker Loan Market. Loan Market Chief Operating Officer Dean Rushton said the latest official home loan approval figures for November, 2011, from the Australian Bureau of Statistics (ABS) displayed an eighth consecutive month of growth. “The consecutive growth seen in the second half of 2011 should continue while consumers act upon repeated rate cuts by the RBA in November and December, “Mr Rushton said. According to the latest ABS data, home loan approvals nationwide in November, 2011, were ... read more...

First time buyers are expected to be the most active player in the Australian home finance market during 2012, a national survey has found. The poll of its own brokers by leading mortgage broker Loan Market found 36 per cent believed first home buyers would dominate the housing finance market this year. Loan Market Chief Operating OfficerDean Rushtonsaid the survey of 252 Loan Market brokers found 33 per cent thought property investors would be the major consumer group. Mr Rushton said 30 per cent believed people refinancing would be most active and just one per cent thought self-employed borrowers would surge. “Our brokers are ... read more...

Nearly half of Australian home buyers use a mortgage broker to secure a home loan rather than approaching their banks or lenders directly. Not all brokers are the same so it is important to find a broker who is experienced, has strong relationships with lender assessment teams and is knowledgeable on loan products, loan assessments process, time frames and most importantly a broker that you feel comfortable with. To help you choose a good mortgage broker consider the following tips: 5 tips when choosing a good mortgage broker: Do your research - does the broker belong ... read more...

Lower interest rates and growing consumer confidence will help stimulate the home finance market in 2012, says leading mortgage broker Loan Market. Loan Market Corporate Spokesperson Paul Smith said the outlook for the coming year was more positive after some challenging economic conditions during 2011. “The year ahead looks quite promising with the likelihood of interest rates continuing to head down and lender risk appetites growing,” Mr Smith said. “The Melbourne Cup day rate cut by the Reserve Bank of Australia (RBA) was a turning point for the market and the follow up December reduction will help boost activity over the summer. “The economic ... read more...

Most Australians expect to keep their savings belts firmly strapped on during the coming year due to the global economic uncertainty, according to a national survey by leading mortgage broker Loan Market. The Loan Market poll which asked “What’s your 2012 financial resolution?’ found 53 per of the respondents said their priority would be to boost savings. Loan Market Chief Operating Officer Dean Rushton said Generation Y respondents were even more determined to bolster their savings buffer with 68 per cent saying that was their financial focus in 2012. Mr Rushton said 23 per cent of the 581 online poll respondents said they ... read more...

The number of borrowers refinancing has increased significantly over the past 12 months, says leading mortgage broker Loan Market. Loan Market Chief Operating Officer Dean Rushton said the latest official home loan approval figures for October, 2011, from the Australian Bureau of Statistics (ABS) show a 17 per cent rise in refinancing activity compared to the year-ending October, 2010. Mr Rushton said refinancing was also up five per cent nationwide on the previous quarter. “With the broader credit market bottoming out at a 10 year low this past year, it’s refinancing which has kept the market from plunging into much lower levels,” he ... read more...

The major banks are unlikely to pass on the latest cut in official interest rates by the Reserve Bank of Australia (RBA) in full, according to a survey by leading mortgage broker Loan Market The RBA followed up its Melbourne Cup decision to lower the cash rate from 4.75 per cent to 4.5 per cent by yesterday reducing the rate to 4.25 per cent in a pre-Christmas boost to borrowers and small business. But Loan Market Chief Operating OfficeDean Rushtonsaid a poll of the company’s brokers found 61 per cent believed the banks would not pass on the full 0.25 per cent ... read more...