The latest from Integrity Finance Australia
The Federal Government has moved to help first home buyers (and their parents!).
Housing affordability, particularly for first home buyers, is always an issue. A major part of that problem is saving deposit of 20% of the purchase price plus purchase costs. Not that you HAVE to have that large a deposit, but it means you avoid paying the extra cost of loan mortgage insurance (LMI).
Help is at hand!
After two years on the backburner, rising property prices are once again becoming the subject of debate around the suburban barbecue. A well-respected annual outlook predicted this week that the cost of houses could rise by more than 15% in Sydney and Melbourne next year. It is a conclusion matched by other surveys and forecasters. But do they give the whole picture? Are we really heading back into boom territory and, if so, what is causing it?
Wasn’t the market really struggling not long ago?
Terry Ryder, from Hotspotting.com.au
I’m expecting uplift in apartment markets in the major cities as we transition into the New Year. It’s clear from the evidence that’s emerging week by week that the post-boom correction that afflicted Melbourne and Sydney has run its course and recovery is real.
But, contrary to the general tone of mainstream media, there was no blanket collapse in price levels across the two biggest cities during that recent downturn. Some market sectors were strongly resistant.
One of the primary ‘weapons’ banks utilise, is to take advantage of lazy borrowers.
Merry Christmas, go back and read the headline again. If it is news to you, then I’ve just given you one of the best early Christmas presents you can get.
Let me explain.
Our interest rates have headed down over the last few months and the banks have passed on some but not all of the savings to you, much to the government’s ire. A decrease in the cash rate of 0.25% does not mean the banks’ costs reduce by the same amount. So, it is not realistic to expect the full decrease in the cash rate to be passed on.
Australia's biggest home-loan providers are starting to adopt the proposals of the Australian Prudential Regulation Authority to ease serviceability rules for home loans.
ANZ and Westpac were the first to do so, changing their respective home-loan serviceability floor rate to 5.50% and 5.75%. Both, however, increased their buffer rates to 2.5%.
Big bank Westpac is allegedly planning to unveil a home-loan product with a 35-year term — would this be of any help to struggling borrowers?
The offer would be available to homebuyers aged 35 years and below and would probably be targeted to owner-occupiers on a principal-and-interest payment basis, said Philip Soos, an independent economist.
“How much can I borrow?” is a standard question for many prospective residential property purchasers. The start point should be what repayments can you afford to make? Banks do not willingly issue loans to clients who cannot afford to repay them, they are under regulatory pressure to lend responsibly, but you should always check your own numbers as well!
Interest rates are at record lows, with rates below 4% now expected. This has home owners and investors lining up to refinance their mortgage loans.
Are you in a financial position to refinance? If so, take the time to do it right. Avoid the temptation to simply re-write what is in place. If you have been thinking about doing it why are you waiting? Note 5 common mistakes to be aware of and avoid:
