Financial services firm Morgan Stanley has reported that the big four banks will lose $700 million in profits unless they raise their interest rates above the official cash rate.
Morgan Stanley analyst Richard Wiles estimates that banks will be forced to increase their interest rates by up to 0.15 of a percentage point above the RBA.
The sentiment is similar to a statement released last week by Loan Market’s Chief Operating Officer Dean Rushton, who believes the banks may raise rates soon after the August 21 election.
“They have clearly flagged that they are considering lifting their rates against the trend and out of cycle ...
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Categories: Finance News. Tags: Home Loan, Interest Rates, Loan Market, Refinancing.
A recent poll conducted by mortgage industry publication, The Adviser, found that debt consolidation was the top reason borrowers were refinancing their mortgages.
Debt consolidation is traditionally one of three main reasons for refinancing, the other two being to get a better interest rate, and to access equity.
The primary benefit of debt consolidation is a lower monthly debt repayment, assisting borrowers to improve cashflow and get in control of their debts.
It works by combining all of your debts into your home loan, which is generally the debt with the lowest interest rate, and spreading shorter term debts ...
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Categories: Finance News. Tags: Debt Consolidation, Mortgage, Refinancing.
Mortgage stress affects many people, and it’s not just interest rate rises which cause it.
Often an unexpected event, such as unemployment, illness, injury or a relationship breakdown can also bring on mortgage stress.
To prevent mortgage stress in the first place, it’s a good idea to created a budget based on your current financial situation and goals. In addition, try to build a ‘buffer’ into your home loan by making additional repayments wherever possible – tax return time, an inheritance or a gift are often useful for this.
However, if you do find yourself experiencing mortgage stress, ...
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Categories: Finance News. Tags: Home Loan, Mortgage Broker, Mortgage Stress, Refinancing.
Loan Market Murrumba Downs mortgage broker, Don Hastie, has extensive knowledge and experience to offer home loan and investment loan borrowers, including a solid unerstanding of economics.
"I have a good understanding of the Australian economy and how its performance can effect home loan interest rates," said Don.
"I use that knowledge to help my clients to make sound decisions about their home loans, in both 'good' and 'bad' times."
Don works with first home buyers, investors, self-employed borrowers and new arrivals into Australia, as well as existing borrowers looking at refinancing their home loans.
"I've personally been in all of those ...
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Categories: Mortgage Brokers. Tags: Don Hastie, First Home Buyers, Home Loan, Loan Market, Mortgage Broker, Murrumba Downs, New Arrivals, Self-employed Borrowers.
The media property price in Greensborough for the March 2010 quarter was close to the state average, at $516,000 vs $524,ooo, according to recent results from the Real Estate Institute of Victoria (REIV).
Loan Market Greensborough mortgage broker, Peter Armstrong, said the property prices are an indication of the strength of the suburb, but that increases should not scare potential buyers awy.
"Home buyers, particularly first home buyers, are often looking for a bargain property, and feel that a suburb with prices close to the state average might not offer that," said Peter.
"But the truth is, it's not about the ...
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Categories: Mortgage Brokers. Tags: Greensborough, Loan Market, media property price, Mortgage Broker, Peter Armstrong, Refinancing, REIV.
You should check your home loan regularly to ensure you are getting a good interest rate and overall home loan package, says Loan Market Henley Beach mortgage broker, Trevor Richter.
"Many Australians pay more than they need to on their home loan repayments," says Trevor.
"This needlessly puts stress on household budgets and can drag out how long it takes you to pay off your home loan."
According to Trevor, simply enquiring about the interest rate savings available via a professional package can save borrowers a significant amount of money.
"Depending on your circumstances and how much you are borrowing, a professional ...
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Categories: Mortgage Brokers. Tags: Henley Beach, Loan Market, Mortgage Broker, Professional Package, Refinancing, Trevor Richter.
According to the Real Estate Institute of South Australia (REISA), property prices in Eastern suburbs, including in Fulham Gardens, Lockleys and Semaphore, have risen by double digit figures over the 12 months to March 2010, proving that the property market is strong.
According to Loan Market Fulham Gardens mortgage broker, Carlo Catalano, current home owners in the area could be sitting on substantial home equity.
"Home equity is the what's left when you take your home loan balance away from the value of your property," Carlo said.
"If you bought in this area prior to 2009, your equity value could be ...
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Categories: Mortgage Brokers. Tags: Adelaide east, Carlo Catalano, Fulham Gardens, Home Equity, Loan Market, motgage broker, Property Prices.
Home loan borrowers may notice some changes to the home loan application and assessment process over the coming weeks, thanks to the introduction of National Consumer Credit Protection (NCCP) and predicted changes to home loan exit fees.
According to Loan Market Illawong mortgage broker, Paul Wrightson, these changes won't make a lot of difference to a well-prepared home loan applicant, but it pays to be aware of what they mean to you as a borrower.
"The NCCP is simply a codification of the rules most mortgage brokers work by already," said Paul.
"It sets down a legal requirement to ensure the ...
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Categories: Finance News. Tags: exit fees, home loan exit fees, Illawong, Loan Market, Mortgage Broker, Paul Wrightson.
New laws coming into force at the end of the month will make it compulsory for all mortgage brokers to operate under an Australian Credit Licence (ACL).
Under national credit reforms, anyone engaged in credit advice on home loans will need to register with the Australian Securities and Investment Commission (ASIC) prior to June 30, 2010, or be appointed as a representative.
Registered credit participants will then have six months between July 1 and December 31, 2010, to apply for an ACL.
Loan Market Chief Operating Officer Dean Rushton said the ACL requirement would only enhance the mortgage broking ...
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Categories: Finance News. Tags: ASIC, Home Loan, Loan Market, Mortgage Brokers.
Accessing the equity available in your home can be useful in a number of situations, including to finance renovations or to purchase an investment property.
How much you can borrow will depend on how much equity you have built up in your home, but is usually limited to a maximum of 80 per cent.
You usually access the equity in your home via a new home equity loan, or if you have an existing mortgage you may be able to access it via a loan top up facility.
Equity home loans generally operate as a line of credit facility, ...
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Categories: Finance News. Tags: access equity, Equity, Home Equity, home equity loan, how much you can borrow, Line of Credit.
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