ACCC grants MFAA disciplinary control
29 May 2009 11:53
One month after publicly backing the MFAA's disciplinary procedures, the ACCC has granted the industry body conditional authorization to enforce its rules. Read More...
Stage one of regulation delayed
14 Apr 2009 04:50
Mortgage brokers may have a little more time to wrap their heads around national regulation after a government spokesperson revealed that the stage one deadline has been extended.
When the government announced the release of national credit regulation in 2008, it committed to rolling out the first phase - which involved the installation of a legal framework - on 1 July 2009. Read More...
When the government announced the release of national credit regulation in 2008, it committed to rolling out the first phase - which involved the installation of a legal framework - on 1 July 2009. Read More...
Big banks putting first homebuyers at default risk
14 Apr 2009 04:49
Major banks are allowing first homebuyers to sign up for mortgages so big they are left paying more than half their net monthly income on loan repayments.
A survey carried out by The Weekend Australian found that the top four banks will lend up to $465,000 to a first time buyer earning a salary of $70,000 a year. Read More...
A survey carried out by The Weekend Australian found that the top four banks will lend up to $465,000 to a first time buyer earning a salary of $70,000 a year. Read More...
ABS data: First homebuyers push up mortgage sales ABS data: First homebuyers push up mortgage salesABS data: First homebuyers push up mortgage sales
09 Apr 2009 04:24
Mortgage Choice has attributed the improvement in the value of housing finance commitments in February to the "voracious appetite of first homebuyers for housing finance".
It adds further weight to calls for the government to extend the boosted FHOG or risk, what AFG called, a mortgage market "hangover".
Latest data from the Australian Bureau of Statistics (ABS) revealed that the value of housing finance commitments for all dwellings increased by 1.3% in February, after an increase of 0.7% in January and 5.9% in December. Read More...
It adds further weight to calls for the government to extend the boosted FHOG or risk, what AFG called, a mortgage market "hangover".
Latest data from the Australian Bureau of Statistics (ABS) revealed that the value of housing finance commitments for all dwellings increased by 1.3% in February, after an increase of 0.7% in January and 5.9% in December. Read More...
Housing crash unlikely: RBA
27 Mar 2009 11:37
A repeat of a US-style subprime crisis is unlikely to occur in Australia, according to the Reserve Bank of Australia's analysis of the housing sector.
In an address to the Fourth Annual Housing Congress yesterday, the RBA's head of Economic Analysis department, Anthony Richards, quelled concerns that low mortgage rates in Australia could lead to the same problems experienced in the US.
"So the question arises whether a period of low interest rates in Australia (combined with the boost in grants to first homebuyers) could lead to an expansion of lending to riskier borrowers who will only be able to afford their mortgages as long as interest rates remain low. I think there are good reasons to think this is not a major risk." Read More...
In an address to the Fourth Annual Housing Congress yesterday, the RBA's head of Economic Analysis department, Anthony Richards, quelled concerns that low mortgage rates in Australia could lead to the same problems experienced in the US.
"So the question arises whether a period of low interest rates in Australia (combined with the boost in grants to first homebuyers) could lead to an expansion of lending to riskier borrowers who will only be able to afford their mortgages as long as interest rates remain low. I think there are good reasons to think this is not a major risk." Read More...
NSW cracks down on fire-sale laws
26 Mar 2009 04:52
Coming to the rescue of defaulting homeowners, the NSW government has sprung a proposal for tighter fire-sale legislation.
Minister for Lands, Tony Kelly, told the NSW parliament that in the current climate many home owners faced the forced sale of their home through foreclosure, however it was "immoral" that they have been exposed to the risk of "unscrupulous lenders seeking to force through a fire sale of their property" the Australian Financial Review reported.
He said that the proposed law would prevent instances of properties being sold for "well below market value simply to recover the lender's debt" by imposing a statutory duty requiring a mortgagee who exercised a power of sale to take reasonable care to sell for not less than the market price. Read More...
Minister for Lands, Tony Kelly, told the NSW parliament that in the current climate many home owners faced the forced sale of their home through foreclosure, however it was "immoral" that they have been exposed to the risk of "unscrupulous lenders seeking to force through a fire sale of their property" the Australian Financial Review reported.
He said that the proposed law would prevent instances of properties being sold for "well below market value simply to recover the lender's debt" by imposing a statutory duty requiring a mortgagee who exercised a power of sale to take reasonable care to sell for not less than the market price. Read More...
New 'battler' suburbs named in report
23 Mar 2009 04:10
A study predicts Adelaide's once-safe mortgage belt suburbs are facing changing fortunes of unemployment and disadvantage in the current economic slowdown.
The Newcastle University index lists 69 suburbs that are at high risk of unemployment, including already-disadvantaged areas in Adelaide's north and south. Read More...
The Newcastle University index lists 69 suburbs that are at high risk of unemployment, including already-disadvantaged areas in Adelaide's north and south. Read More...
Rudd must force banks to change their ways
18 Mar 2009 12:27
As the global financial crisis reaches Australia, the Rudd Government's rhetoric and response are at odds. In magazines, Mr Rudd writes about the collapse of casino capitalism and how government can save markets from themselves.
In office, Mr Rudd resolutely refuses to force banks to change their ways. This, despite them accepting taxpayer support, and ignoring the lessons that banking crises elsewhere teach. Namely, that more regulation creates healthier banks; and loading people up with debt they don't need creates vast economic and social problems.
Read More...
In office, Mr Rudd resolutely refuses to force banks to change their ways. This, despite them accepting taxpayer support, and ignoring the lessons that banking crises elsewhere teach. Namely, that more regulation creates healthier banks; and loading people up with debt they don't need creates vast economic and social problems.
Read More...
April rate cut uncertain
18 Mar 2009 12:25
Speculation that the RBA will cut rates by 50bps in April has been dampened with the release of the minutes from the bank's March meeting.
The minutes which explained the decision to leave the official cash rate on hold, revealed that the board left rates unchanged in order to monitor how the economy reacted to its most recent cuts.
"Early indications were that the monetary and fiscal stimulus that had been applied to the economy was having an expansionary effect, but the size of this remained unclear and it would take some time for the full impact to come through," the minutes stated. Read More...
The minutes which explained the decision to leave the official cash rate on hold, revealed that the board left rates unchanged in order to monitor how the economy reacted to its most recent cuts.
"Early indications were that the monetary and fiscal stimulus that had been applied to the economy was having an expansionary effect, but the size of this remained unclear and it would take some time for the full impact to come through," the minutes stated. Read More...
Govt in "moral hazard" over FHOG incentives
12 Mar 2009 02:48
As the first home owners grant (FHOG) deadline approaches, the government is caught up in an ethical debate whether to continue first homebuyer stimulus or focus on other market segments.
Since the inception of the FHOG, the number of first homebuyers entering the market has reached a national height of 26.5% according to the latest ABS figures.
However, with unemployment also on the rise, there is growing concern that new borrowers are potentially being encouraged into a compromising situation.
In discussions concerning its May budget, the Rudd government expressed concern over the potential "moral hazard" of stimulating the first homebuyer market at a time when unemployment was rising.
The government is considering whether it would be better to re-focus housing stimulus to further investments in public housing, and away from the first homebuyers sector.
Adding to the debate is market research group, Residex, which found that the government grant is being absorbed into increasing prices, as first homebuyers continue to drive the bottom half of the housing market.
In its latest market report, Residex warned that if new borrowers became unemployed, there would be "an increasing level of negative equity and defaults in this group."
"Government needs to consider now, rather than in the May budget, what it will do at the end of the grant period," the report stated.
"Termination may result in the very thing they have been trying to avoid: further reductions in demand, which will increase the rate at which these properties could fall in value in a situation where unemployment increases." Read More...
Since the inception of the FHOG, the number of first homebuyers entering the market has reached a national height of 26.5% according to the latest ABS figures.
However, with unemployment also on the rise, there is growing concern that new borrowers are potentially being encouraged into a compromising situation.
In discussions concerning its May budget, the Rudd government expressed concern over the potential "moral hazard" of stimulating the first homebuyer market at a time when unemployment was rising.
The government is considering whether it would be better to re-focus housing stimulus to further investments in public housing, and away from the first homebuyers sector.
Adding to the debate is market research group, Residex, which found that the government grant is being absorbed into increasing prices, as first homebuyers continue to drive the bottom half of the housing market.
In its latest market report, Residex warned that if new borrowers became unemployed, there would be "an increasing level of negative equity and defaults in this group."
"Government needs to consider now, rather than in the May budget, what it will do at the end of the grant period," the report stated.
"Termination may result in the very thing they have been trying to avoid: further reductions in demand, which will increase the rate at which these properties could fall in value in a situation where unemployment increases." Read More...
Fall in rates attracts first-home buyers
09 Mar 2009 04:58
Three-quarters of first-home buyers are planning to buy a house as lower interest rates and cheaper dwellings make their dream more affordable, a survey says.
The 2009 Mortgage Choice survey of 1,012 first homebuyers shows 76 per cent of respondents currently want to purchase a house, up from 54 per cent a year before, with 16 per cent intending to buy a flat.
Mortgage Choice senior corporate affairs manager Kristy Shephard said falling interest rates, stable house prices and the first home owner grant boost had made property more affordable for possible buyers. Read More...
The 2009 Mortgage Choice survey of 1,012 first homebuyers shows 76 per cent of respondents currently want to purchase a house, up from 54 per cent a year before, with 16 per cent intending to buy a flat.
Mortgage Choice senior corporate affairs manager Kristy Shephard said falling interest rates, stable house prices and the first home owner grant boost had made property more affordable for possible buyers. Read More...
RBA leaves rates on hold
04 Mar 2009 03:28
Update The Reserve Bank has defied expectations by leaving its key interest rate on hold for the first time in seven months as it waits for the full effect of previous rate cuts to spur the economy.
The central bank left the cash rate at 3.25%, the lowest since 1964, arguing that Australia is relatively well placed to weather the economic slowdown. Analysts had forecast at least a 0.25 percentage-point cut.
''The Australian financial system remains strong,'' RBA Governor Glenn Stevens said in an accompanying statement. Mr Stevens said the recent round of cuts delivered by the central bank over the past six months was ''working to deliver large reductions in interest rates to end borrowers.''
He also said that demand in Australia hasn't weakened ''as much as in other countries.''
Read More...
The central bank left the cash rate at 3.25%, the lowest since 1964, arguing that Australia is relatively well placed to weather the economic slowdown. Analysts had forecast at least a 0.25 percentage-point cut.
''The Australian financial system remains strong,'' RBA Governor Glenn Stevens said in an accompanying statement. Mr Stevens said the recent round of cuts delivered by the central bank over the past six months was ''working to deliver large reductions in interest rates to end borrowers.''
He also said that demand in Australia hasn't weakened ''as much as in other countries.''
Read More...
Tighter mortgage borrowing rules introduced in Australia
24 Feb 2009 04:19
First-time buyers purchasing property in Australia will now be required to stump up a deposit of at least 3% of the purchase price in cash, in addition to any available government grants, according to tighter mortgage borrowing rules introduced by the Commonwealth Bank (CBA) for first-time buyers.
The move by CBA comes in response to increasing industry concerns regarding the quality of mortgage loans being lent to the rapidly growing, first-homebuyer market and is in expectation of interest-rate hikes in coming years.
In Australia, government grants of up to $14,000 (£6,200) for an existing home and $21,000 (£9,300) for a new-build property allows some first-time property buyers to purchase a property in Australia with a 5-10% deposit and no cash payment of their their own.
"Customers who have skin in the game in terms of their own funds are more committed to continue their repayments," CBA group executive retail banking services, Ross McEwan, told The Australian. "So in the next couple of weeks, we're implementing a policy to require borrowers to contribute a minimum of 3 per cent (of the purchase price) on top of any government grant." Read More...
The move by CBA comes in response to increasing industry concerns regarding the quality of mortgage loans being lent to the rapidly growing, first-homebuyer market and is in expectation of interest-rate hikes in coming years.
In Australia, government grants of up to $14,000 (£6,200) for an existing home and $21,000 (£9,300) for a new-build property allows some first-time property buyers to purchase a property in Australia with a 5-10% deposit and no cash payment of their their own.
"Customers who have skin in the game in terms of their own funds are more committed to continue their repayments," CBA group executive retail banking services, Ross McEwan, told The Australian. "So in the next couple of weeks, we're implementing a policy to require borrowers to contribute a minimum of 3 per cent (of the purchase price) on top of any government grant." Read More...
Can RBA take rates to zero?
23 Feb 2009 04:00
THIS morning in Canberra, Reserve Bank of Australia governor Glenn Stevens is making one of his regular appearances before the House of Representatives economics committee. But the extraordinary collapse in the global economy makes this appearance unlike any before it.
Committee chairman Craig Thompson told The Australian on Tuesday that a key topic would be what the Reserve Bank would do to support economic activity as interest rates got closer to zero. "We want to know what happens after that (zero), if there is a further need for monetary policy loosening," he said.
This threatens to take today's discussion into potentially quite dangerous territory, even if Thompson is unaware of it.
The Government and the Reserve Bank have been at pains to point out that Australia has a much healthier banking system than much of the rest of the world. Australia is not the US or Japan, where rates are already effectively zero, nor Britain, where there is every chance they soon will be.
Recognition of this is crucially important in avoiding the collapse in confidence in banks that has hit these countries and that governments are finding it extremely difficult to deal with. To raise the prospect of zero interest rates in Australia as a serious possibility, and have the Reserve Bank governor discuss it as such, is to invite a panicky reassessment of our financial system and all this could entail.
To be clear, the problem is not that central banks are powerless once nominal interest rates hit zero.
The chairman of the US Federal Reserve, Ben Bernanke, made clear in a lecture at the London School of Economics in January that the Fed has an extensive policy tool kit to deal with this situation. But the reason the Fed is having to use this tool kit is because interest rates have proved ineffective, and because the US financial system had seized up, with its big banks arguably insolvent, so the Fed is operating as the banker to the system.
Neither of these things is true of Australia. Our banks are solvent and lending, and monetary policy here still has traction or, as central bankers like to say, the monetary transmission mechanism is working. The minutes of the Reserve Bank's February 3 board meeting tell us that members spent time discussing this: "Members observed that in many countries the central bank rate reductions had flowed through to lending rates only to a limited extent, in particular for housing. They noted that the transmission on monetary policy changes to lending rates had been much more effective in Australia."
The bank's February Statement on Monetary Policy points out that in the US, for example, the Federal Reserve reduced official rates by five percentage points between August 2007 and December 2008, but average mortgage rates on outstanding home loans fell by only 0.15 percentage points.
In contrast, the Reserve Bank cut policy rates here by three percentage points in the second half of 2008 and the average rate on outstanding mortgages fell by two percentage points. February's one percentage point rate cut has been passed on in full.
This is a crucial difference because an important way in which interest rate cuts boost economic growth is through cuts in home mortgage rates. Lower mortgage rates on existing loans reduce households' interest payments, which increases the income available to indebted borrowers, who tend to have a higher propensity tospend.
Lower rates on new home loans also boost demand for housing, supporting house prices and residential building activity. In Australia's case this has also been boosted by the Rudd Government's $21,000 first home owner grants. With housing affordability at its best level for a decade, there are early signs the policy isworking. Read More...
Committee chairman Craig Thompson told The Australian on Tuesday that a key topic would be what the Reserve Bank would do to support economic activity as interest rates got closer to zero. "We want to know what happens after that (zero), if there is a further need for monetary policy loosening," he said.
This threatens to take today's discussion into potentially quite dangerous territory, even if Thompson is unaware of it.
The Government and the Reserve Bank have been at pains to point out that Australia has a much healthier banking system than much of the rest of the world. Australia is not the US or Japan, where rates are already effectively zero, nor Britain, where there is every chance they soon will be.
Recognition of this is crucially important in avoiding the collapse in confidence in banks that has hit these countries and that governments are finding it extremely difficult to deal with. To raise the prospect of zero interest rates in Australia as a serious possibility, and have the Reserve Bank governor discuss it as such, is to invite a panicky reassessment of our financial system and all this could entail.
To be clear, the problem is not that central banks are powerless once nominal interest rates hit zero.
The chairman of the US Federal Reserve, Ben Bernanke, made clear in a lecture at the London School of Economics in January that the Fed has an extensive policy tool kit to deal with this situation. But the reason the Fed is having to use this tool kit is because interest rates have proved ineffective, and because the US financial system had seized up, with its big banks arguably insolvent, so the Fed is operating as the banker to the system.
Neither of these things is true of Australia. Our banks are solvent and lending, and monetary policy here still has traction or, as central bankers like to say, the monetary transmission mechanism is working. The minutes of the Reserve Bank's February 3 board meeting tell us that members spent time discussing this: "Members observed that in many countries the central bank rate reductions had flowed through to lending rates only to a limited extent, in particular for housing. They noted that the transmission on monetary policy changes to lending rates had been much more effective in Australia."
The bank's February Statement on Monetary Policy points out that in the US, for example, the Federal Reserve reduced official rates by five percentage points between August 2007 and December 2008, but average mortgage rates on outstanding home loans fell by only 0.15 percentage points.
In contrast, the Reserve Bank cut policy rates here by three percentage points in the second half of 2008 and the average rate on outstanding mortgages fell by two percentage points. February's one percentage point rate cut has been passed on in full.
This is a crucial difference because an important way in which interest rate cuts boost economic growth is through cuts in home mortgage rates. Lower mortgage rates on existing loans reduce households' interest payments, which increases the income available to indebted borrowers, who tend to have a higher propensity tospend.
Lower rates on new home loans also boost demand for housing, supporting house prices and residential building activity. In Australia's case this has also been boosted by the Rudd Government's $21,000 first home owner grants. With housing affordability at its best level for a decade, there are early signs the policy isworking. Read More...
Fire victims' mortgage reality hits home
19 Feb 2009 04:23
It is difficult to describe the predicament facing the people of Kinglake.
On the one hand they are deep in grief over the loss of friends and relatives, neighbours and acquaintances from their town.
They have got a massive clean-up in front of them, funerals to attend and children to care for. And then there are other old echoes of their previous lives.
Different banks seem to have different ideas about how the bushfire survivors should go about resuming mortgage repayments on houses that no longer exist. Read More...
On the one hand they are deep in grief over the loss of friends and relatives, neighbours and acquaintances from their town.
They have got a massive clean-up in front of them, funerals to attend and children to care for. And then there are other old echoes of their previous lives.
Different banks seem to have different ideas about how the bushfire survivors should go about resuming mortgage repayments on houses that no longer exist. Read More...
Australia better able to weather economic crisis: RBA
18 Feb 2009 02:57
The local economy may continue to perform better than the rest of the world despite forecasts suggesting 2009 will be the worst year since World War II, the Reserve Bank said today.
Australia has benefited from having “more momentum than most comparable economies in the period leading into the crisis,” said RBA assistant governor Malcolm Edey in a speech delivered to the Committee for Economic Development of Australia in Sydney.
“There are reasons to expect that the Australian economy can continue to perform better than its international counterparts in the difficult period that lies ahead,” he said. Read More...
Australia has benefited from having “more momentum than most comparable economies in the period leading into the crisis,” said RBA assistant governor Malcolm Edey in a speech delivered to the Committee for Economic Development of Australia in Sydney.
“There are reasons to expect that the Australian economy can continue to perform better than its international counterparts in the difficult period that lies ahead,” he said. Read More...
Market slump hits Challenger
17 Feb 2009 03:50
Challenger Financial Services Group has reported a $107.9 million net loss for the first half after the funds manager suffered declines in the value of its investments because of the global financial crisis.
The net loss for the six months to December compared with a profit of $95.7 million in the previous corresponding period, Sydney-based Challenger said in a statement today.
But the company's normalised net profit, which excludes mark to market movements of some investments, gained 3.9% to $105.9 million as Challenger succeeded in cutting costs to offset the reduction in funds under management. Read More...
The net loss for the six months to December compared with a profit of $95.7 million in the previous corresponding period, Sydney-based Challenger said in a statement today.
But the company's normalised net profit, which excludes mark to market movements of some investments, gained 3.9% to $105.9 million as Challenger succeeded in cutting costs to offset the reduction in funds under management. Read More...
Dodgy loans, unjust contracts and the public interest
13 Feb 2009 10:05
We wake up this morning and all the stimulus is gone - thanks to Senator Nick Xenophon. The Government's $42 billion "nation-building and job plan" has stalled.
The Coalition finance spokesman, Joe Hockey, had said it should be opposed because some measures were too big and badly targeted. Understandably, you might be forgiven for thinking he was talking about himself.
The latest package of measures, which range from insulating 2.7 million homes to cash handouts to an assortment of needy people, comes on top of innumerable other billions poured into ailing sectors, such as cars ($6.2 billion), plus pensioners, lower-wage earners, local government and first-home buyers ($10 billion all up). Read More...
The Coalition finance spokesman, Joe Hockey, had said it should be opposed because some measures were too big and badly targeted. Understandably, you might be forgiven for thinking he was talking about himself.
The latest package of measures, which range from insulating 2.7 million homes to cash handouts to an assortment of needy people, comes on top of innumerable other billions poured into ailing sectors, such as cars ($6.2 billion), plus pensioners, lower-wage earners, local government and first-home buyers ($10 billion all up). Read More...
First homebuyers dominate the market - no signs of slowing
12 Feb 2009 11:47
First homebuyers have overtaken investors as the major force in the housing market, a new report has shown.
According to the latest data from mortgage broker Australian Finance Group (AFG), the number of home loans taken out by first homebuyers surged to a record 25.8% of all the mortgages sold in January. The proportion of first-time buyers is now more than double the 11.6% recorded six months ago in July 2008 said AFG.
First homebuyer activity was greatest in NSW (30.5%), followed by WA (26.7%), Victoria (25.3%) and Queensland (24.7%).
The significant increase in first homebuyers in the market started in December, following the government's move to boost the First Home Owner Grant.
Read More...
According to the latest data from mortgage broker Australian Finance Group (AFG), the number of home loans taken out by first homebuyers surged to a record 25.8% of all the mortgages sold in January. The proportion of first-time buyers is now more than double the 11.6% recorded six months ago in July 2008 said AFG.
First homebuyer activity was greatest in NSW (30.5%), followed by WA (26.7%), Victoria (25.3%) and Queensland (24.7%).
The significant increase in first homebuyers in the market started in December, following the government's move to boost the First Home Owner Grant.
Read More...
75pc 'easily' making mortgage repayments: survey
11 Feb 2009 04:41
A survey has found Australian households are coping well with the effects of the global economic downturn.
The survey by the Mortgage and Financial Association of Australia has found 75 per cent of mortgage holders are easily making their home loan repayments. Read More...
The survey by the Mortgage and Financial Association of Australia has found 75 per cent of mortgage holders are easily making their home loan repayments. Read More...
Demand for mortgages jumps after RBA cuts interest rate
10 Feb 2009 10:04
THE latest interest-rate cut and recent improvements to the first-homebuyer's grant have prompted a surge in demand for mortgages over the past two days, according to brokers.
One mortgage website said it had seen a 250 per cent increase in inquiries, which are now numbering between 3000 and 4000 a day.
"First homebuyers now account for 40 per cent of those inquiries but interest is growing across the board'' said Adir Shiffman of mortgage comparison site www.helpmechoose.com.au.
"Clearly, the rate cuts, homebuyer's grant and also a shortage of rental property, particularly in Sydney, are making people feel more confident about buying again. It's all great news.'' Read More...
One mortgage website said it had seen a 250 per cent increase in inquiries, which are now numbering between 3000 and 4000 a day.
"First homebuyers now account for 40 per cent of those inquiries but interest is growing across the board'' said Adir Shiffman of mortgage comparison site www.helpmechoose.com.au.
"Clearly, the rate cuts, homebuyer's grant and also a shortage of rental property, particularly in Sydney, are making people feel more confident about buying again. It's all great news.'' Read More...
Thousands trapped in a costly mortgage fix
09 Feb 2009 09:34
TWELVE months ago, everyone was told to cut spending to help save Australia's economy. Now the Federal Government can't get us to spend enough.
What a difference a year makes.
The Rudd Government is spending big and plunging the country into debt to give us money. It's then encouraging us to spend.
At the same time, mortgage repayments are falling, with last week's drop in interest rates giving households even more money to spend.
Read More...
What a difference a year makes.
The Rudd Government is spending big and plunging the country into debt to give us money. It's then encouraging us to spend.
At the same time, mortgage repayments are falling, with last week's drop in interest rates giving households even more money to spend.
Read More...
Housing stimulus is working: broker
06 Feb 2009 09:26
The proportion of mortgages taken out by first time home buyers have doubled in Victoria since the expansion of the first time home owners grant in October, according to a report.
Sales of mortgages to first time home-buyers jumped to 25.3% of total mortgages in December, from 13.8% in September, according to the AFG Mortgage Index, released today.
"Younger people with reasonably secure jobs have become an important force in the property market during the past few months," said Mark Hewitt, general manager of sales and operations at mortgage broker Australian Finance Group in a statement. Read More...
Sales of mortgages to first time home-buyers jumped to 25.3% of total mortgages in December, from 13.8% in September, according to the AFG Mortgage Index, released today.
"Younger people with reasonably secure jobs have become an important force in the property market during the past few months," said Mark Hewitt, general manager of sales and operations at mortgage broker Australian Finance Group in a statement. Read More...
Fixed borrowers watch in anger as interest rates tumble
05 Feb 2009 09:52
Just 12 months ago, as the Australian economy was threatening to overheat with inflation taking off, the Reserve Bank was pushing interest rates up aggressively and market economists were all saying they would go higher.
Desperate to limit the damage, many struggling home mortgage holders locked in fixed interest loans.
But now they are watching with no small measure of anger and frustration after the official rate tumbled in five months from 7.25 per cent to 3.25 per cent. Read More...
Desperate to limit the damage, many struggling home mortgage holders locked in fixed interest loans.
But now they are watching with no small measure of anger and frustration after the official rate tumbled in five months from 7.25 per cent to 3.25 per cent. Read More...
Rates at lowest level in 40 years
04 Feb 2009 09:08
FINANCIAL markets are this morning factoring in more aggressive Reserve Bank interest rate cuts after its cash rate was slashed by a further 1 percentage point to a historic low of 3.25 per cent yesterday, its lowest level in four decades.
Westpac passed on the cut in full within minutes to its variable mortgage and credit card customers, taking a further $186 off the monthly cost of servicing a $300,000 loan and bringing the total saving since mortgage rates peaked last August to more than $700 a month. Read More...
Westpac passed on the cut in full within minutes to its variable mortgage and credit card customers, taking a further $186 off the monthly cost of servicing a $300,000 loan and bringing the total saving since mortgage rates peaked last August to more than $700 a month. Read More...
Reserve Bank cuts interest rates to 3.25pc
03 Feb 2009 04:46
THE Reserve Bank has cut interest rates by 100 basis points to 3.25 per cent, citing a "significant deterioration" in world economic conditions since late last year.
Interest rates are now at their lowest point in 45 years.
Out of the big banks, Westpac has passed on the full 100 point cut to its standard variable home loans. Commonwealth, ANZ, NAB say rates are currently under review.
The cut in rates comes on the same day the Government announced a massive $42 billion stimulus package in a bid to kickstart the economy.
Read More...
Interest rates are now at their lowest point in 45 years.
Out of the big banks, Westpac has passed on the full 100 point cut to its standard variable home loans. Commonwealth, ANZ, NAB say rates are currently under review.
The cut in rates comes on the same day the Government announced a massive $42 billion stimulus package in a bid to kickstart the economy.
Read More...
Economists expect 100 basis point rate cut for February
02 Feb 2009 09:32
THE Reserve Bank (RBA) is universally tipped to slash the official interest rate next week to 1960s levels as it continues to try to mitigate the impact of worsening global economic conditions.
All 17 economists surveyed by AAP expected the central bank to slash the cash rate next Tuesday to stimulate a domestic economy facing its first recession in 18 years. Read More...
All 17 economists surveyed by AAP expected the central bank to slash the cash rate next Tuesday to stimulate a domestic economy facing its first recession in 18 years. Read More...
Interest rates may be cut twice in next two months
30 Jan 2009 10:03
HOMEOWNERS may receive two interest-rate cuts in the next two months after a truce was called in the war against inflation.
The Reserve Bank is tipped to cut official rates by up to one percentage point when it meets next week, allowing savings of about $155 from average mortgage repayments.
Economists expect banks to cut rates by another half a per cent in March or April before a third cut mid-year.
With rate cuts on the horizon, the focus is shifting to jobs. But in the most serious warning since the economic plunge began, the International Monetary Fund warned leading economies were suffering their "deepest recession" since WWII. Read More...
The Reserve Bank is tipped to cut official rates by up to one percentage point when it meets next week, allowing savings of about $155 from average mortgage repayments.
Economists expect banks to cut rates by another half a per cent in March or April before a third cut mid-year.
With rate cuts on the horizon, the focus is shifting to jobs. But in the most serious warning since the economic plunge began, the International Monetary Fund warned leading economies were suffering their "deepest recession" since WWII. Read More...
Rate cuts promise $1000 in pockets
29 Jan 2009 10:02
MORTGAGE holders will be about $1000 a month better off in total next week, as the Reserve Bank resumes its most aggressive interest rate-cutting campaign in decades against the most bleak global economic backdrop since World War II.
The biggest three-month fall in the cost of living for more than a decade has raised expectations of another full percentage point interest rate cut on Tuesday. Read More...
The biggest three-month fall in the cost of living for more than a decade has raised expectations of another full percentage point interest rate cut on Tuesday. Read More...
Estate Agent Referrals - Punishment & Corruption
29 Oct 2008 05:14 Filed in: Estate Agents
“I have previously written about estate agents who refer clients to "pet" solicitors and conveyancers in return for payment, and the corrupting effect this has on the industry. An equally insidious form of client referral is the "punishment referral". This is where the estate agent refers clients away from a lawyer or conveyancer as a form of punishment.
Read More...
GE blame brokers for their high rates
In an article on the News.com.au website GE said: “A GE spokesman confirmed the hike was also due to higher commissions paid to mortgage brokers.”
This is an interesting comment given that GE own and fund Wizard and Wizard have passed on interest rate cuts. Read More...
This is an interesting comment given that GE own and fund Wizard and Wizard have passed on interest rate cuts. Read More...
Non bank lenders ripping off borrowers
News.com.au report how Non-bank lenders are not passing on interest rate cuts. The article was scathing in it’s attack on lenders and brokers.
The article said:- “Because the industry is unregulated, there is nothing stopping non-conforming lenders from ripping off home owners whose credit history or lack of documentation stops them getting a loan from a bank. Mortgage brokers are also earning huge commissions by signing up borrowers - even if they cannot afford the repayments.
Read More...
The article said:- “Because the industry is unregulated, there is nothing stopping non-conforming lenders from ripping off home owners whose credit history or lack of documentation stops them getting a loan from a bank. Mortgage brokers are also earning huge commissions by signing up borrowers - even if they cannot afford the repayments.
Read More...
First Home Owner Grant - Fraud Warning
19 Oct 2008 05:40 Filed in: Mortgage Fraud | FHOG
Since the Australian government made major changes to the First Home Owners grant a number of people have come out speaking against the changes. Peter Mericka, Real Estate Lawyer made the following comments:
“Since 14 October, 2008 we have received numerous telephone enquiries from purchasers of residential real estate who want to change the date of their purchase contract in order to become eligible for the increased First Home Owner Grant. Consumers are warned that the changing of dates on a contract could constitute a serious criminal offence. Read More...
“Since 14 October, 2008 we have received numerous telephone enquiries from purchasers of residential real estate who want to change the date of their purchase contract in order to become eligible for the increased First Home Owner Grant. Consumers are warned that the changing of dates on a contract could constitute a serious criminal offence. Read More...
Home loans for bad credit applicants
17 Oct 2008 04:19 Filed in: Lenders | Lo Doc | Products | Mortgage Calculators | My Home Loan Approval | CRAA | Bad credit
The current credit problems the world is facing has a local face to it. Many Australians have credit issues either as a result of a default listing with Veda Advantage or though late or unpaid accounts.
Even in the current credit climate Australians with credit issues can get a home loan and can re-finance themselves out of trouble. One website offering a solution is My Home Loan Approval. The site allows all users to quickly see if they would qualify for a home loan.
Read More...
Even in the current credit climate Australians with credit issues can get a home loan and can re-finance themselves out of trouble. One website offering a solution is My Home Loan Approval. The site allows all users to quickly see if they would qualify for a home loan.
Read More...
Fujitsu comments regarding mortgage brokers are ill-informed!
16 Oct 2008 03:18 Filed in: Fujitsu | Mortgage Brokers
Fujutsu Consulting appear to be continuing their ill-informed attacks on mortgage brokers following quoted comments by Fujutsu’s General Manager Martin North in the Australian on the 16th October. Fujutsu would have us all believe that they are an independent well informed authority without a barrow to push.
Read More...
Read More...
New website gives borrowers choice
14 Oct 2008 05:09 Filed in: My Home Loan Approval
The recent turmoil in the world financial markets have caused a great deal of concern for local home owners. Well the good news is there may be a solution. The launch of the website My Home Loan Approval www.myhomeloanapproval.com.au allows borrowers to do an anonymous on-line assessment of just how many loan products may suit their needs. Read More...
Give your bank the flick!
09 Oct 2008 04:25 Filed in: Lenders | homeloan | Mortgage Brokers | Non Bank Lenders | Effective Rate Home Loan | My Home Loan Approval
News.com.au reports “the big four banks continue to dominate the mortgage market....” Borrowers should not be fooled into thinking they will get a better more secure home loan through their bank. Australia is fortunate to have a wide range of strong and highly competitive non bank lenders some of which are larger than any Australian Bank. For example ING and GE are both predominately balance sheet lenders which mean they lend their own money, unlike all Australian banks. Read More...
Now is not the time to fix your rates
08 Oct 2008 10:24 Filed in: Effective Rate Home Loan | Interest Rate
Now that interest rates are starting to drop don’t be tempted to fix your rates. Most observers are predicting a further 1% drop in coming months so the tip is to stay with variable and pay as much as you can on your existing mortgage. It may also be a good time to get into an Effective Rate home loan. An Effective Rate home loan can save homeowners many $1,000s and take years off their mortgage. Read More...
Think local and forget the problems in the US
Today would be a great day to start thinking locally and not globally and focusing on what we can do to better in own lives and stop worrying about things out of our control. It’s this fear of the unknown that influences how many of us act and sadly many of our fears are unfounded. Read More...
Borrwer's must accept some responsibility
The Daily Investor reports. “The Government has tightened Australia's consumer credit laws in a bid to protect people from dishonest lenders. The Government has overhauled Australia's consumer credit laws, implementing a $71 million plan that will crack down on unscrupulous mortgage and payday lenders. The Corporations Act will also be extended to include margin lending products, and disclosure statements similar to First Home Saver Accounts will also apply to these products.” More
While there is no denying there has been a need to have uniform credit laws in Australia we all hope that what finally eventuates takes into account the willingness of a borrower to enter into an a loan agreement and not to simply switch the decision back onto the lenders responsibility. Read More...
While there is no denying there has been a need to have uniform credit laws in Australia we all hope that what finally eventuates takes into account the willingness of a borrower to enter into an a loan agreement and not to simply switch the decision back onto the lenders responsibility. Read More...
Did the MFAA get it wrong
Broker News report that Challenger reject the claims that there will be a negative impact caused by the letter writing campaign being promoted in the finance industry at the moment. This position is contrary to that of the Mortgage and Finance Industry Association of Australia - MFAA. Read More...
Identity Theft - Recycling versus shredding
04 Oct 2008 06:51 Filed in: Identity theft
Today Show in the US report:-
When I have spoken with employees who have been caught placing sensitive documents into recycling bins, their explanation has been that they thought recycling was different from trash and therefore somehow safe. When asked to explain further, employees generally tell me that, while trash ends up at the landfills where anyone could get his hands on it, recycling is taken to a place where it will be reused. Read More...
When I have spoken with employees who have been caught placing sensitive documents into recycling bins, their explanation has been that they thought recycling was different from trash and therefore somehow safe. When asked to explain further, employees generally tell me that, while trash ends up at the landfills where anyone could get his hands on it, recycling is taken to a place where it will be reused. Read More...
One man’s trash is another man’s identity
04 Oct 2008 06:44 Filed in: Identity theft
The USA Today show recently did an excellent story on Identity Theft and while it has a US focus it equally applies to all Australian.
“Through the years, I have broken into numerous banks through hundreds of different attacks. Though each was different, the main objective was often the same: to gain access to the cash or confidential information. I was once approached by a large financial institution that was not only concerned about the security of its physical locations and its network, but also had concerns about the risks associated with upper management. This institution asked that I also investigate whether its management team could be attacked in a way that might allow an identity thief greater access to its organization.”
Now is a great time to consider refinancing your home loan.
With all the financial fuss world wide it is so easy for the average Australia to be scared off refinancing. The most important thing for Australian’s is for them to think local and not global. Australian lenders are strong and remain largely unaffected by the US problems. Right now Australian borrowers have some great opportunities to consider if they are looking at a home loan. The Australian home loan market is very strong and Australian lenders offer borrowers security and peace of mind.
Read More...Cooperative approach the solution to sound regulation
03 Oct 2008 05:24 Filed in: MFAA | Mortgage Brokers
The MFAA’s philosophy in dealing with regulation and the introduction of legislation governing mortgage and finance brokers is to engage and collaborate with politicians and regulators to develop mutually acceptable results. A letter writing campaign, especially when the letters are obviously not written by the sender, does not positively influence politicians. It antagonises them. The campaign being pursued by some members of our industry at the moment is entirely counterproductive.
Read More...Who has the lowest home loan interest rate in Australia?
29 Sep 2008 07:47 Filed in: Lenders | PMP | Professional Mortgage Providers | Effective Rate Home Loan | Lowest Rate Home Loan
The answer to this question will surprise you. You would think that the major banks with all their resources would be able to offer the best value home loan in Australia. You’d be wrong if you thought this. You might also think that some of the websites that are backed by the banks would be able to get your business with the lowest rate. Again you’d be wrong. Read More...
Is my loan safe, I'm with a non bank lender?
29 Sep 2008 07:38 Filed in: Mortgage Brokers | Mortgage Calculators | Non Bank Lenders | My Home Loan Approval
This is a question many Australian home owners would be asking. The simple answer is yes, your home loan is safe and there is no need to consider changing unless you feel there is a better offer somewhere else. Non bank lenders continue to set the bench mark when it comes low rates and well features products. Before you sign on the bottom line with a bank speak to your mortgage broker and get the lowdown on what it available from non bank lenders. Read More...
Are Mortgage Brokers to blame for our credit problems?
29 Sep 2008 06:41 Filed in: Lenders | MFAA | Mortgage Brokers | FBAA | Mortgage Stress | My Home Loan Approval
Recent newspaper reports in Australia are now suggesting that Mortgage Brokers are in part to blame for the credit problems facing many Australian home owners. These reports have also been supported by ill founded comments by the Mortgage and Finance Association of Australia MFAA suggesting that there were rouge brokers out there putting their clients into loans they can’t afford.
Read More...
Read More...
Are banks better than non banks?
23 Sep 2008 06:35 Filed in: Lenders | Banks | My Home Loan Approval | Mortgage Brokers | Non Bank Lenders | Mortgage Calculators | Mortgage Stress
If you read the papers or watch TV you’d be convinced that one of the dumbest things you could ever do is take out a loan with a non bank lender. Well, nothing could be further from the truth. When you approach a mortgage broker and they come back to you with a non bank option there is an excellent chance that the loan will have better features and a better rate then a bank will offer you. This is because non banks are fighting to get your business and they need to tweak the rates to beat the banks. Read More...
Is now the time to refinance or sell up?
22 Sep 2008 10:28 Filed in: Lenders | Interest Rate | Debt Consolidation | Refinance | Mortgage Stress
Mortgage Stress is eating up the confidence of too many Australian mortgage holders and in many cases it need not be. The Australian home lending market seems to be delivering a self-fulfilling prophecy to Australian borrowers. Major lenders have cried poor and raised rates which in turn has caused hardship and forced foreclosure. Then the banks say their tougher lending practices and higher rates were justified because of the high number of defaults. Read More...
Who should pay mortgage brokers?
For many years there has been discussion about just who should pay a mortgage broker for the service they provide. The difficulty is understanding just who is the broker’s client? Whilst it could be argued that the broker represents the needs of a borrower and therefore the borrower is their client the broker is actually paid an upfront fee by the lender. Read More...
What do you do when your Bank Said No!
22 Sep 2008 05:10 Filed in: Banks | Banks said no | Credit Crisis | Mortgage Calculators | My Home Loan Approval
With tightening bank credit policies many more Australian borrowers are being turned away by their banks for reasons better known to themselves. It was just 18 months ago that banks were falling over themselves to lend money yet today after the effects credit crisis banks have over-reacted and are no saying no more often and to many of the wrong people. Read More...
Using Mortgage Calculators
21 Sep 2008 10:34 Filed in: Mortgage Calculators | Interest Rate
At a time when home loan interest rates are changing so often it’s great to keep an eye on what options may be available to you. One way to do this is to visit a website like Mortgage Calculators.net.au that offer a good range of mortgage calculators. With these calculators you can “see how you I can borrower”, “what will my repayments be” and look at stamp duty costs around Australia. Read More...
Are non bank lenders dead?
So you're looking for a home loan. If you read the papers and watch TV you could be forgiven for thinking that the only lenders to consider are bank. Don’t be fooled, there are many quality non bank lenders out there representing some of the largest funders in the world. Read More...
Fast Home Loan Approval
19 Sep 2008 10:50 Filed in: Fast Home Loan Approval | Interest Rate
One web site that allows users to see if they would qualify for a home loan is the My Home Loan Approval web site provided by Oasis Mortgage Group. The web site allows users to answer a range of key questions and then be told how many loan products they may qualify for. All of this can be done within a minute and without providing your personal details.
Read More...
Read More...
Lo Doc Loans NOT dead
19 Sep 2008 08:05 Filed in: Aussie Home Loans | Lo Doc
John Symond's recent comments in The Australian that Lo Doc loans are dead is not right. While funding lines for lo doc loans are reduced there are many quality funders keen to consider lo doc applications. Read More...
Australians changing attitude to debt
17 Sep 2008 10:11 Filed in: Reserve Bank | household debt
RESERVE Bank of Australia (RBA) governor Glenn Stevens says the era of households living beyond their means might be coming to an end. Mr Stevens said household credit growth was much slower at present than it had been for some years and was running "roughly in line with income growth''. Read More...
Rate cut to avoid slump
16 Sep 2008 10:07 Filed in: Interest Rate | Reserve Bank
SYDNEY, Sept 16 (Reuters) - Australia's central bank on Tuesday said it had cut interest rates this month to forestall an economic slump, but felt policy might need to be restrictive for some time to bring inflation down from 17-year highs. Read More...
Lending trends indicate slowdown
10 Sep 2008 10:09 Filed in: Interest Rate
Lending finance figures for July indicate a generalised slowdown in the economy that is not restricted to the housing sector. Data released by the Australian Bureau of Statistics show secured lending for housing fell by 0.2 per cent in July, and by 17.6 per cent over the past year. Read More...
Fix or not to fix?
07 Sep 2008 07:10 Filed in: Fixed Rates | Interest Rate
VICTORIAN house hunters have been given a new headache with last week's interest rate cut leaving them tossing up between fixed and variable loan deals.
Read More...