November 2008 Newsletter

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Hello,

The rate reduction received on Tuesday 5 November has been warmly received by the industry.

An announcement of a further 0.75% cut to the official rate in addition to the September 0.25% and October 1% cuts, brings rates to a near five year low - industry figures rallied in support of the central banks decision.

The interest rate cuts to date (with more potentially to follow) provide an opportunity for many Australians to enter the home ownership market for the first time. This, coupled with the governments increase to the First Home Buyers grant from $7K - $14K for existing homes, and the increase for newly built homes from $14K to $21K, make it a great time to buy.

In addition, the NSW government has announced a further grant of $3,000 to first home buyers building or buying a newly constructed home for contracts signed from 11th November 2008 until 10th November 2009. Is this wise considering the state budget is in deficit? I am not so sure but if you are a first home buyer no doubt you will take this extra $3,000 with both hands!!

Victorian first home buyers are already eligible for an additional grant of $3,000 for the purchase of existing homes or $5,000 for newly constructed homes known as the First Home Bonus.

Now is a great time to contact us to see how we can assist you and your friends and family with your finances. Even if you have an existing loan now is a great time to call the office and have a no obligation mortgage health check to see if you are still in the best loan possible.

Simply for having an appointment with us you will receive an entry into our latest competition for your chance to WIN a $9500 Flight Centre gift voucher.

We look forward to hearing from you, simply reply to this email with your interest or call the office today on 1300 66 12 11.

Enjoy this newsletter and feel free to pass it on to family and friends.

Authorised under NSW Permit TPLTPS/08/06826, ACT: TP08/02787.1, Vic: Permit No 08/3081, SA Permit No T08/2745

Patrick O'Brien

Mortgage Broker

PO Box 319
Toongabbie NSW 2146

Tel:	1300 66 12 11
Mob:	0404 037 663
Fax:	02 8214 6592

Lenders Tighten their Belts

A Recipe for Investment

Smart Xmas Spending

Broker Benefits

Lenders Tighten their Belts

One of the fallouts in Australia from the global credit crisis may be that home loans will become harder to get.

Many lenders are tightening their lending criteria to protect their loan books against the difficulties they now face in raising capital.

A Recipe for Investment

Sky-high rents and declining interest rates may make a good recipe for property investment.

Although there's much talk of a declining housing market, many analysts believe there's money to be made from property if you choose your investment wisely.

A shortage of housing has pushed rents up to levels not seen in almost two decades.

Smart Xmas Spending

Spend big in the lead up to Christmas then pay for it in the New Year. It's an all too common habit that many of us fall into, leaving us in serious debt by the time January rolls around and should be avoided.

Broker Benefits

Good advice is critical when selecting a home loan, according to a recent survey of Australian home-owners.

The survey, conducted by CPA Australia, has found that 94 percent of respondents agree getting good advice is the key to securing a successful home loan arrangement.

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.

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.

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.