Mortgage Broking Articles & Tips

08/10/2009
Mortgage Broking

RBA Rates Decision – October 2009

The Reserve Bank has lifted interest rates by 0.25% from their historical 40 year lows, due to rebounding economic outlook and change in sentiment. The RBA believes we are past the worst of the economic downturn, yet the historically low rates were originally implemented with the view that the economy and unemployment were going to get worse than...

15/09/2009
Buyers Agents

Buy now or wait ‘til Post First Home Owners go?

The evidence is in, property prices are on the rise, as I predicted at the start of the year. Demand, due to low interest rates, improved affordability and the First Home Owners (FHO) Scheme’s has lead to a recovery in the price of residential property. Yet the big question is will they been sustainable or will demand drop off post FHO’s? Well ...

10/09/2009
Mortgage Broking

Lender Mortgage Insurance Prices to Increase by up to 20%

This is terrible news for those looking to get into the market for buyers looking to borrow greater than 80% of the value of the property. Our two mortgage insurers, who work in conjunction with all lenders by insuring the borrower as a risk to the lender, are increasing this Mortgage Insurance premium to the lenders. There is already evidence ...

08/08/2009
Mortgage Broking

RBA Rates Decision – August 2009

The Reserve Bank has once again decided to keep the cash rate on hold this month. The cash rate remains at 3%. The overall consensus of the market is now at the cross roads with many commentators now calling the bottom of the rate cycle. The RBA minutes of July’s meeting made mention of their belief the worst of the GFC is behind us, and mone...

16/07/2009
Mortgage Broking

To Fix or Not To Fix?

With Australia missing out on a ‘technical’ recession, given the positive March quarter of GDP, most mortgage holders are now focusing their attention on interest rates. Have we reached the bottom of this cash cycle and if so, should we be looking at locking in a low fixed rate, before rates start moving up? The possible answer to this deb...

10/07/2009
Mortgage Broking

RBA Rates Decision – July 2009

The Reserve Bank has once again decided to keep the cash rate on hold this month. The cash rate remains at 3%. The overall consensus of the market is that the cash rate is still forecast to drop to a low of around 2.50% later this year, as it is anticipated that unemployment will rise later this year and into 2010. The recent positive econom...

10/07/2009
Investment Education

Bank Loyalty, Does it pay off?

Over my journey in this profession, I have meet many great people and continue to work for most of them in helping them achieve their goals whether it be securing their first home, refinancing or planning out their pathway of financial independence through investment in Residential property. As I do with every client I ask them the same question ...

10/06/2009
Mortgage Broking

RBA Rates Decision – June 2009

The Reserve Bank chose once again to leave interest rates on hold today, leaving the cash rate at 3%. Commentators are now questioning whether the cash rate will actually get down as low as 2.5 to 2%, which is what was forecasted earlier this year. On the fixed rate side of the fence, the movement was up, with St George and Westpac both movin...

10/06/2009
Investment Education

What’s the Cheapest Loan?

If I had a dollar for every time……. so the saying goes, and in my case it relates to people asking me what is the best interest rate at the moment or who’s got the cheapest loan? I wish there was a simple answer to this question, and believe you me, when I first started out in the finance industry I was also naive to think that surely this...

10/05/2009
Mortgage Broking

RBA Rates Decision – May 2009

The Reserve Bank decided to keep it powder dry this month and left the cash rate on hold at 3.00%. They are taking this neutral position in light of seeing what effect the rate cuts made earlier this year are having on the economy. The overall consensus of the market is that the cash rate is still forecast to drop to between 2.50% and 2.00% lat...

10/05/2009
Investment Education

To Fix or Not to Fix – ‘The question on everyone’s mind…..’

Depending on long term funding costs and increased demand for fixed loans, fixed mortgages can actually go up when the cash rate / variable mortgages are going down, as we have seen just recently. Fixed interest rates don’t automatically move in the same fashion as variable mortgage rates do. So in my attempt to make an informed comment on this ...

10/04/2009
Mortgage Broking

RBA Rates Decision – April 2009

The Reserve Bank announced today that the Cash Rate would be cut by 25 basis points to 3.00%. This decision brings rate to record lows, as Australia’s economy moves into recession, after a record period of economic growth. The big question is will the banks be passing on any of this latest cut, as they are still claiming the costs of funds ...

08/03/2009
Mortgage Broking

RBA Rates Decision – March 2009

Today the RBA announced it will keep interest rates on hold for the month of march @ 3.25% In these interesting times it has only taken the RBA since September 2008 to drop the cash rate by 4.5%, when in the last tightening cycle it took them just under 6 years to raise the cash rates 3%, so maybe such a dramatic reduction to date is allowing th...