X Inc Finance – Mortgage Brokers

Loans for first home buyers – See Steven Tozer Mortgage Broker in Ipswich

Helping First Home Buyers is always exciting, because I am able to help create one the client’s life milestones. Many First Home Buyers do not know what the process involves, so it is really important to provide clear explanations, documentation, support and regular communication to assist the client through the process with minimal stress.

Loans for property investors

Just like buying your first home, making your first investment property purchase can be a little daunting. It is very important that correct mortgage product is found. The loan structure has to be right and clearly explained to ensure that the client is able to maximise taxation opportunities. This is where the expertise of my team and I comes to the fore. By providing diagrams and easy-to-read documentation that you and your accountant can refer to throughout the loan term, you will be prepared for your next investment property purchase.

Steve presented options that I would not have been aware of. He was very informative, and his presentation of information made understanding the differences in options incredibly easy.
Daniel H., Leichhardt, QLD

By just going to one lender you are not giving yourself the best chance of finding the right loan to suit your needs. When you go to one lender they can only offer their own suite of products. Armed with many years of knowledge and experience, I can introduce you to over 300 loan products and assist you in securing the finance package that’s in your best interest.

Loans for the self employed

The financial landscape has certainly changed as a result of the Global Financial Crisis and many banks have altered their policies and are continuing to do so, particularly in relation to lending to those customers who are self employed. However, it’s not all bad news – while many lenders have tightened their policies in regards to self employed clients and low doc loans, others have relaxed their policies to attract these customers and provide finance with minimum fuss. Not all lenders are the same and I can help you through this minefield.

Steven Tozer provides mortgage broking services in suburbs including but not limited to: Brisbane West, Ipswich, Lockyer Valley, Raceview, Bundamba, Booval, Rosewood, Fernvale, Karana Downs, Karalee, Regency Downs, Kensington Grove, Kenmore, Indooroopilly, Taringa, Bellbowrie, Chapel Hill, Brookfield, Fig Tree Pocket

X Inc mortgage broker on the Sunshine Coast, Inta Maggs said today that First Home buyers on the Sunshine Coast should investigate their options with No Deposit loans before giving up on their chance to enter the property market.  “We’re closing the gap for First Home Buyers entering the property market on the Sunshine Coast with our 100% home loan strategies”, she said.

Whilst property prices on the Sunshine Coast increased greatly over the last few years, first home buyers need not despair.  Quite often first home buyers may be closer to buying their first home than they think!

The introduction of greater Government concessions for first home buyers in Queensland combined with our ability to offer 100% loan strategies can mean that their first home may be within reach.

Many first home buyers make the mistake of trying to do their own research to find a home loan.  But with a myriad of products out there, how do you chose?  Without professional advice there is a big chance that they are leaving themselves open to disappointment by missing out on opportunities that are available to secure the finance they need.

It all comes down to seeking professional advice, planning and accessing a broad range of loan options and products to suit their needs.

Our services are offered throughout the Sunshine Coast and we have an intimate understanding of the Sunshine Coast market and the challenges faced by first home buyers – with or without a deposit!

“My advice to first home buyers is to seek professional advice … they may be closer to buying their first home than they think!” says Inta.

If you want to contact Inta Maggs, you can call her on 0421 259 527 or go to her website  Sunshine Coast Mortgage Broker

Here is a list of Loan Market Mortgage Brokers on the Sunshne Coast in Queensland:

• Cynthia Huntley
• Dane Campbell
• Duncan Buchanan
• Greg Oostenbroek
• Lindy Kelly
• Nicky Orchard
• Paul Brazier
• Stewart Spencer
• Wayne Maw

With 30 years banking and finance experience, clients will have a wealth of knowledge to tap into when using my services. My main clients are first home buyers, busy professionals and families looking for a new home. People come to me because they want to take the stress out of purchasing property, save time and paperwork, and learn how to manage their mortgage debt in a manner which suits their lifestyle.

More recently I have branched out into finance coaching which is a fee-based service designed to help clients gain better control over their mortgages and budgets.

Auckland Mortgage Broker

Auckland’s central city ring is the geographic area where I visit most of my clients. This includes the city centre, Herne Bay, Westmere, Point Chevalier, Mt Albert, Mt Eden, Ellerslie, Morningside, Western Springs, Kingsland, Avondale, Waterview, New Lynn and Te Atatu.

Testimonials

My husband and I have known John for eight months, now he’s part of the family.  John was our mortgage broker, is our financial adviser, by default legal adviser, and through his commitment to us as first home buyer’s ‘guidance councillor’ and friend.  John supported our goals from start to successful finish; he maintained constant open communication, provided important links to services and always a listening ear.  This was service beyond the normal call of duty; today our new family home is evidence of this well developed relationship.
C & R Brown

A drop in the number of new home sales in September may cause the RBA to hold off on a 0.50 per cent interest rate rise, and favour a smaller quarter-percentage point rise.

New home sales fell by 4.5 per cent in September 2009 following a strong surge in August, the latest Housing Industry Association (HIA) survey reveals.

HIA’s Chief Economist, Dr Harley Dale said there “was a late burst of sales from first home buyers in August ahead of the step-down in the first home buyers grant.”

“But the stimulus to new home sales from the First Home Owner Boost is now on the wane.”

“With the first home segment weakening, further gains in new home sales will hinge on a return of upgrade buyers and investors. The current level of new home sales points to a shallow recovery in residential building which will lag the underlying requirement for new dwellings.”

In an article in The Australian, CommSec chief economist Craig James described the figures as a “welcome reality check”.

Mr. James said the figures in conjunction with yesterday’s inflation data, that had the quarterly rate of underlying inflation at 0.8 per cent, made it more likely that the RBA would raise rates by 25 basis points next week.

This assessment was also backed by UBS, National Australia Bank and ANZ strategists.

Sources: The Australian, HIA

The big four banks have raised fixed mortgage rates on the back of increased funding costs.

National Australia Bank (NAB) yesterday became the last of the big four banks to raise fixed mortgage rates, with the one-year fixed rate up 50 basis points to 6.59 per cent, and its two-year fixed rate up 40 basis points to 7.29 per cent.

NAB’s three-year fixed rate increased 40 basis points to 7.59 per cent.

Westpac, CBA and ANZ have also raised their fixed mortgage rates in recent weeks.

CBA was first off the mark a week ago, citing funding costs as the reason for raising its fixed mortgage rates. The bank’s one-year offering is now up 45 basis points to 6.64 per cent, and its two-year fixed-term rate is up 50 basis points to 7.34 per cent.

The five-year fixed rate from CBA increased 25 basis points to 8.04 per cent.

Westpac also raised its fixed home loan rates late last week, adding 35 basis points to its one-year fixed term mortgage, taking it to 6.54 per cent.

The bank’s two-year fixed rate mortgages were up 20 basis point to 7.19 per cent, while its 5 year loan increased 10 basis points to 7.94 per cent.

ANZ’s one-year fixed rate has also gone up 80 basis points to 6.5 per cent for new customers, and its two-year fixed rate loan will rise by 65 basis points to 7.34 per cent, while the bank’s five year mortgage will rise 30 basis points to sit at 8.04 per cent.

The banks attributed the rise in fixed mortgage rates to rising funding costs brought on by the sustained lack of liquidity that has been symptomatic of the GFC.

Sources: WAtoday.com.au, Mortgage Business

Interest rates have been tipped to rise when the Reserve Bank of Australia meets on Melbourne Cup Day.

Some economists believe interest rates could rise by as much as 50 basis points, after the RBA revealed it was becoming increasingly concerned the economic recovery could stoke inflation.

Minutes from the October RBA board meeting reveal that the surprise 25 basis point increase that pushed the official cash rate up to 3.25 per cent was brought on by worries about inflation.

There was however some descent from one board member, believed to be the Treasury Secretary Dr Ken Henry, who argued strongly against any rate rise.

Henry is believed to have argued that the improvements in the economy are largely the result of government stimulus measures and that there is still a danger of the global economy suffering another downturn.

Despite this descent, economists believe official inflation figures, to be released next week by the Australian Bureau of Statistics, would help the RBA determine the size and timing of its next move.

Sources: The Australian, Sydney Morning Herald

While there has been a rush of interest from homeowners trying to fix their mortgage rates in the wake of October’s official interest rate rise, one mortgage broker says the numbers just don’t add up.

Australia’s largest independent mortgage broker, Loan Market Group, says it has seen a 30 per cent increase in borrowers looking to switch from a variable rate to a fixed rate mortgage after the Reserve Bank lifted the official cash rate by 25 basis points to 3.25 per cent.

However, borrowers who have done the sums have opted to stick to variable rates, after realising the fixed rates being offered by the majors were still substantially higher, the broker said.

“Given where fixed rates are at the moment, we have estimated that variable rates would have to increase by around 3.0 per cent over the next two years for a fixed rate to be worth considering,” Loan Market Group chief operating officer Dean Ruston said in a statement.

Mortgage holders locking in a fixed rate at the moment would be paying around 7.5 per cent for the next three years or as much as eight per cent for five years.

“As variable rates are in the low to mid-five per cent range, it’s just not worth fixing,” he said, adding there was a massive differential between variable and fixed rates, and one that major bank lenders should justify.

Variable rates are influenced by rate decisions taken by the RBA, while fixed rates are driven by wholesale interest rate markets.

At this stage, financial markets are expecting a steady rise in the official cash rate, pricing in a rate of at least 3.75 per cent by Christmas and around 5.5 per cent by December 2010.

Sources: Lending Central, Loan Market, AAP

The official cash rate could hit 5.5 per cent by the end of 2011, the National Australia Bank’s (NAB) monthly business survey and economic outlook shows.

NAB has forecast yet another 50 basis point increase before the end of this year, which would mean potential rate rises in November and December.

Interest rates are anticipated to rise after the RBA Governor Glenn Stevens hinted at potential rate rises in the coming months.

Speaking at a financial breakfast in Perth yesterday, Mr Stevens said Australia’s weakest financial period had ‘probably past’.

 “Barring another serious international setback, the economy is likely to continue on a path of gradual expansion during 2010″, he said.

“If we were prepared to cut rates rapidly, to a very low level, in response to a threat but then were too timid to lessen that stimulus in a timely way when the threat had passed, we would have a bias in our monetary policy framework. Experience here and elsewhere counsels against that approach.”

Loan Market Group Chief Operating Officer Dean Rushton said most economic forecasters expected official rates to rise up to two per cent over the next 18 months.

He said mortgage holders with variable rate home loans should examine their financial situation and speak to a mortgage broker to determine whether they can get a better interest rate.

Sources: Mortgage Business, Loan Market

The Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) can boast to having the lowest comparison rate among the big banks.

While all the majors moved to pass on the full 25 basis point increase from the Reserve Bank, there still remains a narrow spread of 0.07 per cent between the comparison rates on the major’s standard variable rates.

CBA and NAB are tied at the lowest, boasting a 6.12 per cent comparison rate followed closely by ANZ at 6.16 per cent and Westpac at 6.19 per cent.

With conditions continuing to improve, the RBA is widely expected to push the official cash rate higher in the coming months, which would push comparison rates higher. The banks are also tipped to move interest rates independent of the RBA in response to higher funding costs.

The gap between the majors seems to be narrowing, with the last contrast conducted by industry publication Mortgage Business in February this year, revealing a 0.19 per cent spread between the majors’ comparison rate’s on variable rate products.

At that time CBA delivered the lowest home loan comparison rate at 5.86 per cent, while ST George offered the highest at 6.05 per cent.
Source: Mortgage Business

With new research showing that reverse mortgages have increased in popularity among older Australians, it comes as no surprise that mortgage brokers remain the preferred channel for distribution of the mortgage product.

The Deloitte SEQUAL Reverse Mortgage Study found that while the local reverse mortgage market grew by 13 per cent over the last financial year, loans through the broker channel increased slightly over the last six months to the 30 June 2009.

The report found that 4,950 new borrowers entered the market with the average age of reverse mortgage borrowers sitting at 74.

The main reason for taking out a reverse mortgage was to receive a regular income stream in retirement, followed by debt repayment and home improvement.

Senior Australians Equity Release Association chief executive, Kevin Conlon, said the report showed borrowers were using their reverse mortgages appropriately – with many choosing to repay their debt in full each year rather than let the debt build up until death.

“Senior Australians are continuing to show restraint when releasing equity through reverse mortgages, shown by borrowers, on average, only choosing to access about 70 per cent of the actual funding available to them”, Mr Conlon said.

Mortgage brokers remained the preferred choice with 47 per cent of new loans taken through brokers and planners in the first half of 2009.

There are currently 1,500 mortgage brokers accredited in Australia to offer reverse mortgage products.
Source: Broker News, Mortgage Business

Mortgage holders may see another rate rise in November after a shock drop in the country’s unemployment rate put pressure on the Reserve Bank of Australia to raise the official cash rate at its next board meeting.

New figures released by the Australian Bureau of Statistics have revealed the unemployment rate has dropped back to 5.7 percent over September, from 5.8 per cent in the previous month.

The drop took economists by surprise, with most expecting the jobless rate to go up to 6 per cent, as employers hold tight on costs while the economy is in recovery mode.

Economists now believe that another rate rise might be imminent.

In an interview with Mortgage Business, RP Data’s head of property research Tim Lawless said that it made sense that RBA should move interest rates from historic lows, and most mortgage holders would have factored in a more normal mortgage rate into their budget.

Australia’s big four banks, ANZ, National Australia Bank, Commonwealth Bank and Westpac have all matched the Central Bank’s rise from Tuesday, but Loan Market Executive Director John Kolenda said mortgage holders should also be prepared for the major banks moving rates up ahead of an RBA decision because of escalating funding costs.

Mr Kolenda said mortgage holders can save money in the long term by making extra repayments now while interest rates were still relatively low.

Sources: Mortgage Business, News.com.au

Australia’s big four banks have all moved to pass on the Reserve Bank of Australia’s 25 basis point increase to their variable rate mortgages.

ANZ was the first of the big banks to pass on the full rate rise, increasing its standard variable mortgage rate for new and existing customers by the full 25 basis points from October 12, bringing the rate to 6.06 per cent.

This move was closely followed by an announcement from the National Australia Bank and the Commonwealth Bank, and finally Westpac at 4:30pm yesterday afternoon.

CBA and NAB will both retain the lowest variable mortgage rate of the big four, at 5.99 per cent while Westpac’s rate will sit at the same level as ANZ, at 6.06 per cent from Monday.

The decisions follow the Reserve Bank of Australia’s rate hike on Tuesday that pushed the cash rate from the emergency low of 3 per cent, up to 3.25 per cent.

The rate rise is not limited to variable rate mortgages, with Westpac announcing that they will pass along the increase to personal and deposit accounts including its Reward Saver, eSaver and Business Max-i Bonus accounts.

CBA will pass on the rate rise to key deposit rates, while ANZ has said that it will raise its rates on selected products by as much as 0.50 percentage points per annum.

The banks seemed to heed Treasurer Wayne Swans warning on not passing more than the Reserve Bank’s move, by sticking to a quarter of a percentage point increase on their variable mortgage rates.

The rate rises will add about $45 to the monthly repayments on a standard 25-year mortgage of $300,000.

Sources: WA today.com.au and Mortgage Business

The housing industry has expressed concern over the Reserve Bank of Australia’s move to lift the official cash rate by 25 basis points to 3.25 per cent, at it’s board meeting today.

In a statement released shortly after the move, the Reserve Bank Governor Glenn Stevens said that housing credit has been solid and dwelling prices over the last six months had continued to rise.

The rate rise which is the first since March 2008, makes the Reserve Bank the first central bank in the G20 to raise interest rates in the wake of the global financial crisis.

“In late 2008 and early 2009, the cash rate was lowered quickly, to a very low level, in expectation of very weak economic conditions and a recognition that considerable downside risks existed. That basis for such a low interest rate setting has now passed, however,” Mr Stevens said.

“With growth likely to be close to trend over the year ahead, inflation close to target and the risk of serious economic contraction in Australia now having passed, the Board’s view is that it is now prudent to begin gradually lessening the stimulus provided by monetary policy.”

In contrast, Housing Industry Association chief economist, Harley Dale, said there was concern that the rate rise could hurt consumer confidence and thereby hold back a housing recovery.

“There is a big risk that the increase in official rates will blunt consumer and business confidence that is crucial to the prospects for an economic recovery,” Mr Dale said.

“Although there are some encouraging signs the economy has avoided falling off a cliff, it is still far too early to call an economic recovery.

“Indeed, it was not that long ago we were told that Australia faced the worst economic conditions since the Great Depression. Either that assessment was a dramatic overstatement or the Reserve Bank has miscalculated.

“To date, the initial pick-up in new housing activity has been influenced by the combination of lower interest rates and the First Home Owners’ Boost.  Now these key drivers are in reverse.

The rate rise could mean an extra $45 a month on the average $300,000 mortgage – on a 25-year loan term.

From today, October 1, the First Home Buyers Grant Boost has been phased down to $14,000 for the purchase of newly built properties, and $10,500 for established properties.

The boost which was introduced last year as part of the federal government’s response to the global financial crisis, originally entitled first home buyers to $21,000 for the purchase of newly built properties and $14,000 for the purchase of established properties.

The reduced boost that came into effect today was part of this year’s Federal Budget and will run till December 31 – at which point it will revert to $7,000 for established properties and $14,000 for newly built properties.

While most economists believe that the reduction of the boost will impact building approvals and housing finance applications, the general consensus is that this would be a medium-term effect.

Other drivers are expected to hold up sales including population growth and a resurgence in the number of investors and people looking to upgrade.

Ray White deputy chairman Sam White, agrees with this assessment, saying a recent upsurge in property sales was not from first home buyers trying to capitalise at the eleventh hour on the boost, but by those upgrading their homes and property investors who were now more confident about the Australian economy.

“You look back and it was only in March when everyone was saying were on the edge of the Great Depression and we had all those horrible headlines”, Mr White said.

“But I think consumer confidence is returning with the realisation unemployment is not going to get to predicted levels now and I think that’s feeding people’s confidence.”

The Commonwealth Bank of Australia has today announced that it will increase its fixed mortgage rates after similar moves in August and April this year.

Speculation is rife that the RBA will increase the official cash rate sooner rather than later, with some pundits tipping a rate rise this October.

CBA’s one year fixed rate will now sit at 6.19 per cent after a 50 basis point increase, while its two year fixed rate will sit at 6.84 per cent – up 30 basis point rise.

The three year fixed rate mortgage has increased by 15 basis points to 7.29 per cent and a five year home loan will now be 7.69 per cent after a 10 basis point rise.

The hikes come as no surprise after CBA chief executive Ralph Norris warned that the bank may increase its rates independently of the RBA in response to rising funding costs, back in August.

The bank had previously raised its fixed mortgage rates in August by 0.6 per cent, after a similar rate rise in April of 0.45 per cent.

Source: Mortgage Business

First home buyers who want to take advantage of the full first home buyers grant boost, have just a few days to so before the boost is phased down on October 1 next week.

First home buyers pushed new house sales to their highest levels in August since January 2008.

The results were even stronger in Victoria where the state government has added to the federal grants with $11,000 grants for first home buyers as well.

First home buyers who sign a contract of sale before the end of September can collect $14,000 to buy an existing home and $21,000 for newly built homes.

From October 1, these amounts will be phased down to $10,500 for existing homes and $14,000 for new homes until the end 2009.

To find out if you are eligible to receive the full first home buyers grant boost, or if you would like help claiming your first home buyers grant boost, click here to talk to an experienced mortgage broker.

Sources: Herald Sun, Infochoice

More first home buyer information is needed to battle confusion on the phasing down of the First Home Owners Grant Boost, a new survey has found.

The NAB First Home Buyers survey reveals that despite 67 per cent of first home buyers counting on the First Home Owners Grant to enter the property market, only a quarter of those who believed they were eligible knew that the First Home Owner Boost (FHOB) would be reduced from September 30.

With half of those eligible for the First Home Owners Grant saying the boost had been an added incentive to get into the property market, it came as no surprise that 48 per cent of existing property owners believe that prices of properties under $500,000 will fall when the FHOB ends.

NAB Personal Banking’s General Manager of Mortgages, Steven Shaw said the increased government assistance had helped many first homebuyers enter the property market, however the survey showed some confusion still remained amongst this segment.

“The monetary assistance provided by the government has helped enable many first home buyers to enter the property market over the last year. However our research has uncovered a level of uncertainty amongst many potential first home buyers about what amount of support is available and what type of loan would be best suited to them.”

Fixed rate mortgages were the most popular home loan type with 32 per cent of respondents saying they would opt for a fixed rate loan. This was closely followed by split loans with 31 per cent opting for the loan type and 20 per cent picking variable rate loans.

Sources: NAB, Infochoice

More borrowers are opting to take out fixed rate mortgages with the number of fixed rate loans being sold by banks in June, climbing from an all time low of 1.9 per cent of all loans sold back to about 8 per cent of all loans in June.

The number of fixed rate loans may continue to grow despite most banks increasing their fixed mortgage rates over the last few months.

“On top of speculation that the official cash rate already has bottomed, there’s widespread concern that the banks themselves will continue to raise their variable rates independent of the Reserve”, said JP Morgan economist, Helen Kevans.

“With most economists, including us, expecting the next move in the official rate to be up, more and more borrowers will lock in their loans.”

Source: Sydney Morning Herald, Infochoice

Low interest rates and the increased first home buyers grant has led to an increase in the number of Australians taking out mortgages, a new consumer credit survey has found.

A Veda Advantage survey on consumer credit found that there was a 28 per cent rise in applications for home loans in the year to 30 June.

Veda Advantage general manager Russell Evans said Australians’ appetite for mortgage finance has peaked in recent months.

“Veda’s measure of mortgage inquiry growth and volumes for the June quarter 2009 is higher than at any time in the past five years,” Mr Evans said.

“ This continuing high level of demand is a response to high levels of housing affordability, low interest rates and the Federal Government’s first home buyers’ grant.”

Interest rates currently sit at a 49-year low of three per cent, after the Reserve Bank lowered the cash rate to combat the effects of the global financial crisis.

Source: Mortgage Business

Financial markets have tipped an interest rate rise as soon as next month after the economy reported better than expected growth figures in the June quarter.

The economy grew 0.6 per cent last quarter, beating expectations of a sluggish growth of only 0.2 per cent.

The positive result now means the economy has recorded two quarters of positive growth, after a contraction in the December quarter of 2008.

On the back of the positive growth, financial markets moved swiftly today to price in the greater risk of a rate rise as soon as next month.

The interbank financial markets predict there is about a 40 per cent chance that the RBA will hike rates by 25 basis points at the October meeting.

The pricing indicates that the official cash rate could be 178 basis points higher by September next year, implying more than seven rate hikes of 25 basis points each.

Economists at JPMorgan and NAB have already brought forward their calls and have forecast the RBA will implement two rates rises by the end of the year.

Source: The Australian