Browse Posts “Home Loans and Mortgages”.
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 ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Fixed Loan Rates, Fixed Mortgage Rates, Fixed Rate Home Loan, Mortgage Rates.
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 ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, RBA.
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 ...
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Categories: Home Loans and Mortgages. Tags: Fixed Rate Mortgages, Fixed Rates, Mortgage Broker, Variable Mortgage Rates, Variable Rates.
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 ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, Variable Mortgage Rates.
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 ...
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Categories: Home Loans and Mortgages. Tags: Comparison Rates, Home Loan.
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 ...
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Categories: Home Loans and Mortgages. Tags: Mortgage, Mortgage Brokers, Reverse Mortgages.
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 ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Home Loan Interest Rates, Interest Rates, Mortgage Rates.
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 ...
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Categories: Home Loans and Mortgages. Tags: First Home Buyers, First Home Buyers Grant Boost.
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 ...
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Categories: Home Loans and Mortgages. Tags: Fixed Mortgage Rates, Fixed Rate Home Loan, Fixed Rates Mortgage.
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 ...
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Categories: Home Loans and Mortgages. Tags: First Home Buyers, First Home Buyers Boost, First Home Buyers Grant Boost.
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 ...
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Categories: Home Loans and Mortgages. Tags: First Home Buyers, First Home Owner Grant, First Home Owners Grant Boost, Fixed Rate Mortgages.
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 ...
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Categories: Home Loans and Mortgages. Tags: Fixed Rate Loans, Fixed Rate Mortgages, Variable Rates.
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.
“ ...
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Categories: Home Loans and Mortgages. Tags: First Home Buyers Grant, Interest Rates.
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.
There were no surprises at today's Reserve Bank board meeting that left interest rates steady at 3 per cent.
Economists had widely tipped that interest rates would remain on hold, as the local global economies remained in recovery mode.
In a statement released after the meeting, RBA Governor Glenn Stevens said that major economies appear to be approaching a turning point, but the economic growth in 2010 will still be slow.
Mr Stevens also said that consumer spending, exports and business investment have been strong in Australia, but probably due to Government initiatives and therefore may not hold over the coming months.
He believes ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, Investment Loans, Property Finance, RBA.
While interest rates are expected to remain on hold when the Reserve Bank (RBA) meets next week, economists are divided on when the central bank will start winding back the rate cuts made over the last year.
All 18 economists surveyed by AAP this week believe the RBA will keep the cash rate at a 49-year low of 3 per cent at their board meeting next Tuesday.
There were however, differences in opinion as to when and how quickly interest rates would start to move up.
Nomura Australia chief economist Stephen Roberts expects the first rate hike to come in May 2010.
Mr Roberts ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: First Home Buyers Grant, Interest Rates.
Professional Packages can save borrowers up to $2,000 a year when compared to standard variable home loans, a new report reveals.
The report from Canstar Cannex shows that package home loans offer rate discounts of 0.7% for bigger loans, tapering down to 0.5% for loans under $250,000.
While package home loans come with high annual fees that typically range from $350 per annum to $750 per annum, Canstar Cannex says the interest rate savings outweigh the costs.
Professional packages work by bundling your home loan with a savings account and credit card, or similar financial products, and charging a single yearly package fee ...
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Categories: Home Loans and Mortgages. Tags: Home Loans, Package Home Loans, Professional Packages.
Further cuts to the official cash rate are unlikely, minutes from the August Reserve Bank meeting, released today, indicate.
An improved economic outlook, coupled with the swift moves by the Reserve Bank over the late 2008/ early 2009 period make the prospect of further interest rate cuts unlikely.
While RBA Governor Glenn Stevens has himself refused to comment on when the next upward movement in interest rates will occur, some economists have suggested that interest rates could increase as early as November.
On the other end of the spectrum, some economists have predicted that interest rates will remain on hold into 2010.
Regardless ...
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Categories: Home Loans and Mortgages. Tags: Interest Rates, Mortgage Brokers, Mortgage Repayments.
First home buyers are receiving discounts of up to 0.7 per cent, as banks compete for the lucrative segment.
Interest rates on standard variable mortgages could earn a borrower a discount between 0.5 per cent and 0.7 per cent.
Standard variable mortgage rates currently sit in the range of 5.74 per cent to 5.9 per cent for most major lenders.
Bankwest is a stand out, with a standard variable mortgage rate of 4.8 per cent, about 1 percentage point below the major banks.
Minimum deposit requirements on first home loans have also not changed much for most lenders, a survey by ...
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Categories: Home Loans and Mortgages. Tags: First Home Buyers, Standard Variable Mortgage, Variable Mortgage Rates.
Australian mortgage holders and prospective first home buyers should factor in a two per cent rate rise, Reserve Bank of Australia (RBA) governor, Glenn Stevens, has told a parliamentary hearing.
While not endorsing lenders to raise their mortgage rates, Mr Stevens said interest rates cannot remain at the current 49-year low of 3 per cent, indefinitely.
"It would always be prudent to be confident you could absorb some increase in interest rates when you are taking out a variable rate loan at any time, particularly now,'' he said.
Meanwhile, the recently released Fujitsu Mortgage Stress-O-Meter for June 2009 shows the number ...
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Categories: Home Loans and Mortgages. Tags: Mortgage, Mortgage Rates, Mortgage Repayments.
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