Mortgage News

The recent upward racing Interest Rate hikes are predicated to be placed on hold even though the cost of Funding has increased slightly over the month reported SMH. The majority of industry experts and economists felt that the RBA would give a breath of relief for mortgage holders.

Simon Reibelt from Oasis Home Loans Northern Beaches said that even though the break may be upheld tomorrow, the increase would be incurred overall.

Article courtesy of SMH Business by ERIC JOHNSTON. May 28, 2010.

RISING interest rates are causing stress among home owners and more borrowers are missing payments.

While the rate of losses in the mortgage market remains relatively low, bank executives see problems emerging for first home buyers on loans written at the peak of the credit boom in early 2007.

In its latest overview of the residential mortgage-backed securities market, Moody’s Investors Service said missed-payment rates were starting to rise.

Simon Reibelt from Oasis Home Loans Northern Beaches.

Article Courtesy of PETER MARTIN of SMH Business. May 27, 2010.

AUSTRALIANS are being told to brace for much higher interest rates – the OECD predicts at least four more rises, and most likely five, in the year ahead.

The organisation’s Economic Outlook, which was released in Paris yesterday, predicts the Reserve Bank will push up its cash rate from its present 4.5 per cent to 5.1 per cent by December and then 5.7 per cent by next June.

The 120-point increase would push up standard variable mortgage rated from their present average of 7.4 per cent to 8.6 per cent, adding an extra $238 to the monthly cost of servicing a typical $300,000 mortgage and $318 to the cost of servicing a $400,000 mortgage.

Simon Reibelt of Oasis Home Loans Northern Beaches.

SMH has reported over a new development to hit our shores that could possibly help solve Australia’s property affordablity problem. The Bondi-based Waratah Community Land Trust Association has looked a a model used in the US that allows customers to purchase the dwelling itself but to essentially lease the land that the house sits upon, drastically reducing the mortgage associated.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that it was a another good step forward in relieving the pressure of the housing shortage.

SMH has reported the NSW State Government has approved planning for an additional 4500 extra dwellings in Six North Shore postcodes. The Planning Minister would reveal the suburbs to get the much needed boost today, helping the property shortage currently facing the Australian market.

Simon Reibelt from Oasis Home Loans Northern Beaches said more steps like this were needed to help slow the property bubble, and allow more residential construction to help the mortgage market get back into its strength.

The fears of Australia’s housing bubble to soon burst are due to the reported 20% increase of the ABS’s Housing Index over the past year. Experts have stated it has become even more important that Financial Institutions be more prudent when Lending. Consumers were mentioned to also be more scrutinising of their borrowing and repayment obligations and expectations advised SMH.

Simon Reibelt from Oasis Home Loans Northern Beaches

SMH has reported over the RBA’s expected movements come June the 1st, where it is has been indicated that Mortgage holders will be given a short-term break. The RBA deemed that it had lifted the Cash Rate to historical normalised levels of the past decade, but it was not intended to last forever.

Simon Reibelt from Oasis Home Loans Northern Beaches said that mortgage holders should relish the short-term break and reassess their financial position if rates were indeed going to increase soon.

The current property market situation with the combination of rising Interest Rates and the shortage of finding an available property has resulted in another drop in Mortgage figures, according to data from the Australian Bureau of Statistics. This was accompanied by falling figures in personal finance, though the business sector showed strengthening demand SMH reported.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that demand for current properties would push prices upwards, along with the increasing Interest Rates would cause many buyers out of the market.

SMH has reported that March figures for the number of Home Loans has fallen for the 6th straight month. Owner Occupied Loans fell to their lowest levels in 9 years according to ABS figures. Experts have sighted rising Interest Rates and the shortgage of housing were the primary problems.

Simon Reibelt from Oasis Home Loans Northern Beaches said that current market conditions were not favourable to people wanting to take out mortgages for property, as there is none to seek or prices were too high.

SMH has reported over the NSW Governments initiated new Tax on all new home purchases, in what the Governments calls the Land Transfer Charge. It will only be imposed upon purchases of more than $500,000 in what should raise $90 Million a year.

Simon Reibelt from Oasis Home Loans Northern Beaches said that buyers needed to be aware of the additional new Tax and budget accordingly.