Browse Posts “Banking and Finance”.
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 ...
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Categories: Banking and Finance, Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, RBA, RBA Rate Cuts.
Getting a home loan without genuine savings will soon become a thing of the past as more lenders move to tighten their lending criteria surrounding high LVR loans.
Bankwest and Homeloans Ltd are just the latest lenders to tighten their credit policy and require borrowers to demonstrate genuine savings.
Effective today, Bankwest will require 5 per cent genuine savings for purchases where the LVR is greater than 85 per cent, while Homeloans Ltd will impose the same requirement tomorrow.
The lenders' decision to factor in genuine savings requirements is line with a move by the majority of lenders to tighten ...
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Categories: Banking and Finance, Home Loans and Mortgages. Tags: Bankwest, genuine savings, Homeloans Ltd, lending criteria, LVR.
(news.com.au)
National Australia Bank believes a fixed-rate home loan price war is set to erupt as lenders vie for investment borrowers over the next few months, News.com.au reports today.
NAB's head of mortgages Steven Shaw said, "In the lead-up to the new financial year we'll probably see more banks become competitive in the fixed-rate market."
"I think the gap between variable rates and long-term fixed rates is going to narrow but it's hard to say by how much."
Fixed-rate products have a more competitive gap that standard variable mortgages rates where the four major banks are relatively close to ...
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Categories: Banking and Finance, Home Loans and Mortgages, News. Tags: Investment Loans, Property Finance.
Interest rates are likely to stay on hold when the Reserve Bank of Australia meets in May, economists say.
Today's The Australian has reported a surprise increase in core inflation in the first quarter that has made a May rate cut, more unlikely.
Core inflation rose by a stronger than expected 1.1 per cent from the December quarter for an annual increase of 4.15 per cent while the Reserve Bank's weighted median CPI rose 1.2 per cent for an annual increase of 4.4 per cent.
Before the release of the inflation figures, economists had expected the RBA to cut interest rates ...
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Categories: Banking and Finance, News.
Property investors look set to make strong gains as rising rents continue to drive positive gearing opportunities, Mortgage Business reports today.
According to the Australian Property Monitors (APM), asking rents on Australian residential properties increased significantly in the year to March and lower interest rates mean rental yields are now near to or surpassing home loan interest rates.
The valuer's Rental Series released yesterday showed asking rents levelled off in the first quarter of 2009 as lower interest rates eased pressure on landlords to seek higher rental returns. Year-on-year growth however has been strong, and is expected to ...
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Categories: Banking and Finance, Home Loans and Mortgages, Investment, News. Tags: Investment Loans, Property Finance.
Relatively few Australian households face going into negative equity, even if housing prices do fall somewhat, the head of the Reserve Bank of Australia's Financial Stability Department, Luci Ellis, says.
Unlike their American counterparts, Australian households have more of a financial buffer against falls in housing prices because of tougher lending standards and differences in tax and regulatory framework.
"In the United States, some private-sector estimates suggest that more than 10 per cent of mortgage borrowers are already in negative equity, perhaps as many as one in six", she said.
"Thus a much greater proportion of US homeowners risk defaulting if ...
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Categories: Banking and Finance, Home Loans and Mortgages, News.
St George Bank has joined a list of banks that have cut their variable home loan rates by 10 basis points.
The Westpac owned bank said its standard variable mortgage rate will fall to 5.79 per cent effective April 17.
St George will also mirror Westpac in passing on the full 25 basis point rate cut to its business and commercial loans.
The 10 basis point rate cut will equate to a saving of approximately $16 per month in mortgage repayments on an average size loan of $250,000 over a 30-year loan term.
General Manager of retail ...
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Categories: Banking and Finance, News.
In a move mirroring the Commonwealth Bank, Westpac and ANZ have cut their variable home loan rates by 10 basis points.
The reduction comes after the Reserve Bank of Australia cut the cash rate by 25 basis points on Tuesday bringing the rate down to a 49-year low of 3 per cent.
ANZ's variable home loan rates will come down to 5.81 per cent effective April 17 while Westpac's variable rates will also go down to 5.81 per cent effective April 20.
Not one of the big four banks passed on the full rate cut with National ...
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Categories: Banking and Finance, News.
The Reserve Bank of Australia (RBA) has cut its official cash rate by 25 basis points effectively bringing the cash rate down to 3 per cent, after seeing room for a modest adjustment in monetary policy.
The move brought the cash rate down to a 49-year low that was last seen in March 1960.
RBA Governor Glenn Stevens noted that debt-servicing levels had reduced as a result of historically low market and mortgage interest rates are and business loan rates being below recent averages.
"Nonetheless, the board judged that there was scope for a further modest adjustment to the cash rate", Governor Stevens ...
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Categories: Banking and Finance, News.
Tighter lending criteria and reduced LVR's will safeguard against a housing price blow-out as record low rates continue to spur an upswing in the lower end of the property market, Mortgage Business reports today.
Housing has become more affordable as a result of a 400 basis point drop in the RBA's cash rate that has seen the average standard variable home loan rate fall by a similarly large 375 basis points.
A mortgage business straw poll revealed that almost half of the 417 respondents - 47 per cent - are concerned that the increased activity at the lower end of the market could ...
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Categories: Banking and Finance, News.
NAB Broker will reduce all Homeside variable rates for new and existing customers by 0.10 per cent, effective today.
The move which was announced today will mean that for loans of $250,000 or above, the variable interest rate on the Homeside HomePlus Special Offer would be reduced to 5.17 per cent.
NAB Broker will also offer a Homeside 2 year fixed rate loan of 4.99 per cent, effective today.
NAB Broker regional general manager Matt Lawler when making the announcement encouraged brokers to make careful considerations before advising clients to fix.
"We continue to encourage brokers to take a ...
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Categories: Banking and Finance, Home Loans and Mortgages, Interest Rates, News.
While some economists are tipping no rate cut this month, the jury is still out, with some placing their bets on a 25 or 50 basis point cut.
Expectations that the RBA would cut rates were raised yesterday when the Rudd government warned yesterday that the economy was not immune to the global economic slowdown.
"We've now got a situation where something like seven out of our top ten trading partners are in recession. This will have a dramatic impact on growth in Australia in the December quarter", Treasurer Wayne Swan said.
Should the RBA decide to cut interest rates at ...
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Categories: Banking and Finance, Interest Rates, News.
(AAP)
Low interest rates have given personal borrowing the biggest rise in six months as consumers take advantage of lower interest rates to refinance existing loans.
Economists say however that the threat of rising unemployment is likely to cap any further increase in personal loans in coming months.
Personal finance commitments rose by a seasonaly adjusted 4.1 per cent in December to $6.361 billion, Australian Bureau of Statistics (ABS) data has showed.
The gain represents the biggest since June 2008 and the first monthly increase in personal loans since September.
CommSec chief economist Craig James said a big jump in loan refinancing was ...
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Categories: Banking and Finance, News.
The Commonwealth Bank has topped the majors with its standard variable rate after delivering the lowest home loan comparison rate among the major banks.
CBA's latest comparison rate on its standard variables sits at 5.86 per cent just slightly ahead of National Australia Bank's 5.87 per cent.
The low comparison rate comes after the RBA slashed rates by 1 per cent at its board meeting this month.
While all the big banks passed on the full 1 per cent rate cut, a spread of 0.17 per cent remains between their new standard variable home loan rates, and 0.19 per cent ...
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Categories: Banking and Finance, News.
Economists expect that more rate cuts are on the way after the RBA moved to cut the official interest rate by 1 per cent.
Today's rate cut which is the fourth since September brings the official cash rate down to 3.25 per cent, a 45 year low.
Macquarie's interest rates strategist, Rory Robertson told the Australian that the RBA will continue to lower rates and has tipped a 0.50 per cent reduction next time.
The majors were swift to pass on the rate cut with Westpac being first off the mark.
Wespac cut it's standard variable rate by 1 per cent down to 5.91 per cent.
CBA, ...
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Categories: Banking and Finance, News.
The IMF has endorsed a budget deficit and expressed its confidence in Australia's ability to endure the year ahead after Treasurer Wayne Swan confirmed that the economic crisis will send the federal budget into deficit.
Asia-Pacific head of the IMF, Ray Brooks told the Australian Financial Review today that Australia's strong track record of prudent fiscal policy positioned it strongly to weather the looming economic challenges. "Australia is in an enviable position on the debt front."
Mr Brooks said, "There are not many countries in a similar position. The responsible fiscal policy over the last 10 or 15 years has left Australia ...
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Categories: Banking and Finance, News.
Buying property in Australia will soon be easier for overseas businesses and visitors thanks to a lifting of restrictions.
More than 7500 overseas buyers are expected to benefit from the Federal Government's relaxation of rules governing foreign investment.
The move will mean that market flexibility will be enhanced while compliance costs for temporary residents and the construction industry will be reduced, Assistant Treasurer Chris Bowen said.
The definition of temporary residents will also be aligned with contemporary visa categories.
Under the present structure, all temporary residents and non-residents, including foreign businesses, must notify the Federal Government if they wish to buy a property.
They ...
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Categories: Banking and Finance, News, Real Estate. Tags: Investment Loans, Property Finance.
(lending central)
The Reserve Bank of Australia has delivered yet another rate cut, slashing interest rates by 1 per cent to 4.25 per cent at its meeting today.
The 1 per cent rate cut is the fourth consecutive drop since September and takes the official cash rate to its lowest level since December 2001.
The rate cut was more than the 75 basis drop that most economists had predicted.
Commonwealth Bank of Australia Ltd (CBA) and Westpac Banking Corp and National Australia Bank Ltd moved quickly to cut their variable home loan rates within minutes of the ...
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Categories: Banking and Finance, Home Loans and Mortgages, News.
(Lending Central)
The Mortgage and Finance Association of Australia (MFAA) today welcomed a report by the House of Representatives Economics Committee on competition in the banking and non-banking sectors, saying that, if implemented, the recommendations made by the Inquiry would help prevent a decline in competition in the sector.
"The MFAA sees this Inquiry and its outcomes as a welcome recognition of the need for a thriving and competitive mortgage market. Without competition in this sector borrowers and mortgagees around Australia will suffer higher interest rates and reduced levels of service", said Phil Naylor, CEO of the MFAA.
"The past 12 ...
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Categories: Banking and Finance, News. Tags: 100% Home Loans, Investment Loans, lo doc, low doc, low-doc-loans, Property Finance.
(mortgage business)
While the outlook for the economy has deteriorated, RBA governor Glenn Stevens has assured that it is not as bleak as some commentary suggests.
Speaking at a dinner last night Mr Stevens said prospects had not deteriorated "to the extent that might be suggested by some of the gloomy talk that is around" but he conceded that Australia faced difficult times and growth was likely to be "at quite a slow pace" for a while.
Mr Stevens said policy makers and regulators would need to "stand ready to act promptly" when needed but warned Australia should not abandon its ...
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Categories: Banking and Finance, News. Tags: Investment Loans, Property Finance.
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