Updates

08 AprPulling the ripcord: the RBA and quantitative easing

We live in unconventional times. The Australian economy has borne the fallout of the pandemic spread of Covid-19. And in response, the Reserve Bank has made an out-of-schedule cut in interest rates to a record low 0.25 per cent, as well as making significant steps towards implementing a program of quantitative easing. “Before the coronavirus hit, we were expecting to make progress towards full employment and the inflation target, although that progress was expected to be only very gradual,” Reserve Bank governor Philip Lowe said while announcing the emergency cut.. “Recent events have obviously changed the situation.” As part of Thursday’s speech, Lowe revealed that the RBA are setting up a three-year funding facility aimed at providing loans for Australian banks – so they can in turn supply $90 billion worth of cheap credit to affected small and medium-sized businesses. And the RBA have also begun buying Government bonds in […]

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26 MarWhen is the right time to talk about my home loan?

Back in the day taking out a mortgage was like a marriage – till death do us part. But in a highly competitive home loan market, more and more Australians are breaking up with their loans by refinancing to a better deal. When was the last time you reviewed your home loan? Five years ago? Ten years ago? Never? Gone are the days when we stayed with one lender for the full 25-30 year loan term. Australians are savvy shoppers and we are continually seeking a better deal and rate. In fact, the average Australian homeowner changes their loan every four to five years. Refinancing your home loan can provide low-cost funds for a whole variety of purposes. Some of the main reasons include: To consolidate debt. If you have a car loan, small personal loan and/or owe money on your credit card, you can combine the debt into a new […]

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19 MarHow Redraw And Offset Accounts Can Save You Money

Published by MFAA Offset accounts and redraw facilities work in similar ways; they both allow you to reduce the balance of your home loan, and therefore the interest charged, by applying extra money to your debt. Redraw facilities allow you to deposit spare income into your home loan account, allowing you to redraw a sum equal to the extra repayment amounts in future. In the meantime, the extra money paid will lower the amount of interest charged while still giving you access to your money. However, there may be restrictions on how much money can be withdrawn and when. “For redraw, it depends on whether the facility applies to a fixed-rate or variable loan,” a lender expert says. “Most institutions only allow redraw from a variable-rate loan, or fixed-rate loan but with limited access.” It is important to find out how a loan’s redraw facility works before taking it on, as the […]

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26 FebIncreased interest from development groups for residential sites

Development and site acquisition specialist, Michael Bevan, appointed by McGrath Projects to address increased demand. The announcement of the appointment of development and site acquisition specialist, Michael Bevan to McGrath Projects reflects busy times ahead. Mr Bevan was appointed to the newly created role of General Manager – Developments. “We are seeing a renewed level of enquiry from development groups seeking both DA Approved and Raw Sites,” said Adam Sparkes, General Manager of McGrath Projects when he announced the appointment. At a glance: Past two years the general development market has seen a significant downturn in off-plan sales Latter part of 2019 the general residential markets recovery has seen the ‘developer’ community look at acquisitions again NSW State Planning also has mandated councils to produce a new Local Environmental Plan over the next two years “In particular smaller and medium size developers are increasingly on the lookout for redevelopment opportunities, many of whom are cashed buyers not […]

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19 FebGood news for home buyers and renters

The latest CPI figures are showing a positive sign that official interest rates will not change, according to REIA. Today’s release of the December 2019 quarter CPI figures continues to be good news for home buyers and renters, said Adrian Kelly, president of the Real Estate Institute of Australia (REIA). The slight change in inflation data, Mr Kelly said home buyers can be assured the RBA won’t be increasing official interest rates at next Tuesday’s RBA meeting.  “The All Groups CPI, increased by 0.7% in the December quarter giving an annual increase of 1.8%. This is slightly up on the September quarter figures of 0.7 % and 1.7%, respectively,” said Mr Kelly.  “The annual changes for the analytical series of trimmed mean and for the weighted median were 1.6% and 1.3% respectively.  “The annual changes in the trimmed mean have been below 2% since December 2015 and for the weighted median […]

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21 JanBuy Now Pay Later – the hidden danger potentially stopping you from owning your own home

The Buy Now Pay Later sector is winning-over the youth demographic with the promise of instant gratification, but leading mortgage brokers are warning that with every sugar-high comes the risk of a corresponding low. ‘Buy Now Pay Later’ providers such as AfterPay and Zip Pay have experienced massive growth in popularity, with the number of users jumping from 400,000 to approximately 2 million between 2015 and 2018. Driven by a simple proposition whereby the Buy Now Pay Later provider pays the merchant on behalf of the customer, allowing the customer to obtain the goods or receive a service immediately while subsequently paying off the debt generally through instalments, Buy Now Pay Later presents a tempting offering. But as the sector’s breakneck growth continues, mortgage professionals are warning users, particularly in the younger demographic, to be cautious of overdoing it as this could risk effecting their chances of securing a home […]

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