First Home Buyers could save $101 per month, for a typical loan, if home loan interest rates drop by 0.5 per cent according to the Housing Industry Association (HIA).
There are now nearly 900,000 households paying more than 30 per cent of income on repayments.
HIA Chief Policy Executive, Chris Lamont said a 0.5 per cent reduction in home loan interest rates would reduce the average mortgage repayment by $64 per month and cut into mortgage stress by around 65,000 households.
Credit availability for new construction projects is also restricting a desperately needed supply with some ...
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Categories: Finance News. Tags: First Home Buyer, Housing, Interest Rates.
28-08-2008
Despite the slow down in metropolitan property markets, regional Australia is thriving as the commodities boom and well-diversified local economies keep property markets in good shape.
In an interview with Mortgage Business, Colliers International research director Rory McLeod said there were plenty of strong property markets outside of the capital cities.
“The hard and soft commodity booms are translating into strong economic growth in many regional areas, as well as strong population growth and strong employment,” he said.
Research by real estate analyst Terry Ryder who runs hotspotting.com.au supports this view.
Earlier this year, Ryder compiled a list of places where decent property could ...
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Categories: Property. Tags: Property, Regional Australia.
Suncorp chief excecutive John Mulcahy has voiced the Brisbane-based lender's intention to follow other banks in a rate drop should the Reserve Bank of Australia (RBA) drop rates as expected.
"Certainly, the majors have indicated that they would move their rates down," he said at the company's annual results presentation.
"We're not a price setter - we usually follow - so we'll follow appropriately."
With the average standard variable mortgage at around 9.6%, consumer groups, the Federal Government and the Reserve Bank have all accused the banks of cashing in, prompting Prime Minister Kevin Rudd, Treasurer, Wayne Swan, and senior RBA ...
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Categories: Finance News. Tags: Banks, Finance, Interest Rates.
Loan Market mortgage broker Nicky Orchard says property investment has become more attractive recently due to nation-wide rental shortages, but to make the most out of your investment you need to make sure your finance is structured correctly.
“Demand for rental property is high and with interest rates likely to fall in the near future, a good investment property could be the key you need to open up your investment earning potential,” says Orchard.
With the stock market also looking shaky, Orchard believes many investors will find the legendary long-term stability of property enticing.
“Price increases might not currently be as ...
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Categories: Finance News, Property. Tags: Finance, Investment, Nicky Orchard, Property, Sunshine Coast.
As higher global borrowing costs make non-bank lenders withdraw from the market, there are fears that major banks will consolidate their hold on the lending market and force non-bank competitors to offer fewer products.
The Council of Small Business Organisations of Australia says that this would put extra pressure on small businesses with cash-flow problems, which might normally think about taking out a loan to cover their shortfalls
It urges small operations to shed staff, rather than take out loans as competition among lenders dries up.
Financial research group Cannex showed the extent of the lending drought with a count that showed ...
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Categories: Finance News. Tags: Home Loans, Loans, Low Doc, Self Employed.
27-08-2008
Making the decision to buy a new home can be a rewarding yet complex experience. At the heart of the matter, you are looking for a home that satisfies your need for security and comfort without exceeding your budget.
Before commencing your property search, is the best way to have confidence when shopping for your new home is to secure home loan pre-approval as it gives you a very clear idea of how much you can spend. A good mortgage broker will be essential at this stage as they can help you assess home loan options that are ...
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Categories: Property. Tags: Home Buyers, Home Loans, Property.
26-08-2008
With an interest rate cut on the horizon, the question remains, what impact will an RBA rate reduction have on borrower activity over the next six months?
Loan Market Group chief executive, Jennifer Nielsen says that aside from interest rates, there are a lot of variables that need to be considered.
“The property market (particularly in Sydney) has been simmering for a long time, and in addition, vacancy rates and building approvals are at historical lows whilst immigration is very much at the high end,” she said.
These pressures notwithstanding, prospective homeowners and property investors are expected to return ...
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Categories: Property. Tags: Home Loans, Property, Real Estate.
A downward interest rate cycle is now widely anticipated but just how far can brokers expect rates to fall?
Last week Westpac predicted rates to drop by 100 basis points by early 2009; earlier in the month NAB also forecast rates to fall as low as six per cent by next year.
Jennifer Nielsen, chief executive of the Loan Market Group, views the drop in fixed rates as an indicator of a rate drop for variable rate home loans.
“If fixed rates are the indicator, then a drop of one percentage point in fixed rates over ...
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Categories: Finance News. Tags: Finance, Home Loans, Interest Rates.
In response to the current tough economic climate, RAMS home loans announced the launch of a new home loan to assist struggling borrowers. RAMS Rate Relief offers a 1% p.a. discount off the RAMS Standard Variable Rate for two years plus no annual account keeping fee.
RAMS Rate Relief offers one of the best products currently available with an 8.54% pa variable rate for the first two years plus no annual account keeping fee and an ongoing rate guaranteed to remain 0.4% p.a. below the RAMS Standard Variable Rate (SVR) for the life of the loan. (RAMS SVR is ...
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Categories: Finance News. Tags: Home Loan, Mortgage Broker, Variable Rate Loans.
Increasing your borrowing capacity will ensure that you are in a better position to buy the property you want when the opportunity arises.
Apart from establishing a solid savings history, you can increase your borrowing capacity by reducing debts that lenders would consider risky, this would involve:
Reducing your credit card limit – the higher your credit limit, the higher your potential to default on your repayments
Reducing your bank overdraft limit – the same reasoning as reducing your credit card debt applies here
Resolve any credit history ‘blemishes’ – lenders will look at your credit history in the course of their risk ...
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Categories: Finance News. Tags: Borrowing Capacity, Efm, Shared Equity Home Loans.
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