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Hello,
Interest rates are the topic on everyones lips and as you know the Reserve Bank unfortunately raised rates again last week. Were often asked for advice from clients worried about what the rise in interest rates will mean for their home loan repayments.
Its with this in mind that we have dedicated two articles to the topic of interest rates - 'watching rates with interest and 'fixed vs. variable rate home loans. These articles provide a background to the factors that affect interest rate fluctuation, as well as outlining the pros and cons of moving to a fixed rate home loan.
The article below deals with another topical issue - the housing affordability crisis and how it has prompted increased innovation and flexibility in home loan lending.
Lastly an article on non-bank lenders and their position in the aftermath of the US credit crisis.
Enjoy this newsletter and feel free to share it with family and friends.
Warm Regards,
Patrick OBrien
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PO Box 319
Toongabbie NSW 2146| Tel: | 1300 66 12 11 | | Mob: | 0404 037 663 | | Fax: | 02 8214 6592 |
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Watching Rates With Interest
If there's one thing most of us don't like hearing about, it's another rise in interest rates.While no one can predict whether rates will keep rising, the Reserve Bank (RBA) has indicated that further hikes are on the cards.
The RBA's latest quarterly review of the economy* reveals inflation is moving upward to reach levels of 3.5 to 3.75 per cent through next year and into 2010.
Read More >>
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Fixed vs. Variable Home Loans
To fix or not to fix? It's a question that has become increasingly common in the wake of rising interest rates.Unfortunately there's no simple answer, as your decision to choose a fixed or variable home loan largely depends on your financial situation and personal preference.
The good news is that as your broker we can assess your individual situation and help you make an informed decision that will bring long term benefits.
Read More >>
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Non-bank Lenders
When the US credit crisis hit, the safety of non-bank lenders came under question.As non-bank lenders generally fund their operations through offshore investors, it was thought that they would be more vulnerable to the global credit squeeze.
Time has since proved the critics wrong, as non-bank lenders have demonstrated their ability to weather the storm.
Read More >>
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Innovative Funding
With housing affordability at a record low, you may be wondering how you will ever make a go of it in the home ownership market.Thankfully the rise of innovative lending products is creating more options for borrowers starting out. As housing prices continue to rise, lenders have begun developing products that put home ownership back within easy reach.
One such product is Equity Finance Mortgage (EFM), a new type of home loan that is still hot off the press.
Read More >>
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Mortgage & Finance Association of Australia
Mortgage World Australia is a full member of the MFAA. As a member we must adhere to an Industry Code of Practice, which requires professionalism, ethical behaviour, transparency and a commitment to you, the borrower.
This helps to ensure that your best interests are at heart whenever we make a finance recommendation.
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News & Specials
- Bankwest have brought back their Rate Tracker Home Loan which offers a 0.90% p.a. discount off the average standard variable rate of the big 4 banks for the first 3 years of the loan. There is also no early repayment penalty on this loan which means you can refinance after 3 years without being charged a hefty exit fees.
- As of Monday 13th July RAMS are offering a FlexiFix product where up to a maximum of 50% of the loan amount can be fixed for 2 years at 4.99% p.a. rolling over to the Smartway Variable rate after 2 years. Variable portion can only be taken as a Smartway Variable loan which currently offers an interest rate of 5.49% p.a.
- St.George are offering a 0.15% p.a. discount off their fixed rate home loans if taken under their Advantage Package. Westpac are offering a 0.20% p.a. discount off their fixed rates under their Premier Advantage Package.
- Although most lenders are no longer offering cheap low doc interest rates RAMS are still very competitive in this market.
- Go into the draw to win $10,000 in Cold Hard Cash by either booking an appointment with us, using our services to take out a home loan or by referring a friend. Competition ends on 31st July 2009.
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Disclaimer: This newsletter is intended to provide general news and information only. Readers should rely on their own enquiries before making any decisions regarding their own interests. Please do not rely on any part of this newsletter as a substitute for specific legal or financial advice. All material is copyright 2009.
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