Loans harder to get as banks tighten up

Lending criteria is tightening up for personal loans, car loans and mortgages. Brokers say that lenders are being less flexible, demanding evidence of genuine savings [...]

POSTED ON February 9, 2009
More rate cuts and more spending needed

Further deep cuts in interest rates are needed as well as more government spending to stimulate the economy the treasury secretary Ken Henry said yesterday. [...]

POSTED ON February 6, 2009
Westpac, ANZ pass on full rate cut

Westpac is the first of the major banks to commit to passing on the Reserve Bank's one per cent rate cut in full. Westpac's standard [...]

POSTED ON February 4, 2009
More rate cuts on the way

Financial markets expect the Reserve bank to cut interest rates again next month by a further 0.75 per cent taking the official cash rate to [...]

POSTED ON February 4, 2009
WA gets big housing boost

The West Australian government will spend more than $300 million to build 1,000 homes in the state's regions to boost the economy and create jobs. [...]

POSTED ON February 4, 2009
Rate cuts to keep on coming

The Reserve Bank of Australia faces extreme pressure to deliver substantial rate cuts today and in next few months as the global economic crisis spreads. [...]

POSTED ON February 3, 2009
Property sales and prices slump

Sales of new homes continued to fall in December by 1.7 per cent, adding to the 4.1 per cent fall in November according to the [...]

POSTED ON February 3, 2009
RBA may cut by 1.5 per cent

The Reserve Bank of Australia is likely to decide tomorrow to set a new 'floor' for Australian official interest rates of around 2 per cent [...]

POSTED ON February 2, 2009
Rates down to 2 per cent by June

Investors trading on the Sydney Futures Exchange yesterday estimated the chances of a 1.0 per cent rate cut next week by the Reserve Bank at [...]

POSTED ON January 30, 2009
Consumers to pocket more savings

With many economists tipping a rate cut of at least 0.75 percentage points in next Tuesday's Reserve Bank's Board Meeting, borrowers with a $400,000 mortgage [...]

POSTED ON January 29, 2009
Three big rate cuts coming soon

The Reserve Bank of Australia is expected to cut interest rates three times in the next four to five months. Yesterday's inflation figures indicated that [...]

POSTED ON January 29, 2009
Westpac loans easy, after long wait

Mortgage applications to Westpac have been taking as long as six weeks to process because the bank's lending criteria has not been tightened as much [...]

POSTED ON January 29, 2009
Wizards refinance with Commbank

Thousands of Wizard home loan customers who are paying above standard interest rates on their mortgages will be able to refinance into Commonwealth Bank sourced [...]

POSTED ON January 29, 2009
Govt backs interest free repayments

More than 600,000 households are suffering from 'mortgage stress' according to Fujitsu consulting, down from 883,000 in August. Fujitsu says the numbers are expected to [...]

POSTED ON January 28, 2009
One per cent rate cut expected

Economists are expecting the Reserve Bank of Australia to cut interest rates next Tuesday by a full one per cent despite fears inflation may not [...]

POSTED ON January 28, 2009
Big rate cut coming next week

The Reserve Bank is expected to cut interest rates by 1.0 per cent next week because the latest inflation figures to be released today (Tuesday) [...]

POSTED ON January 27, 2009
Commbank leads on package deals

The Commonwealth Bank has the lowest mortgage package deal in the market at the moment featuring a discounted interest rate of 6.04 per cent for [...]

POSTED ON January 27, 2009
NAB to hold back on more rate cuts

National Australia Bank may not pass on in full any rate cuts delivered by the Reserve Bank at its February meeting. Chief executive Cameron Clyne [...]

POSTED ON January 27, 2009
Shop around for best deals

NAB's Classic account will waive the $6 monthly fee if the customer deposits at least $3,500 per month. Consumers can save more money each month [...]

POSTED ON January 27, 2009
More for rent as houses fail to sell

The rental vacancy rate has increased to a national average of 3.3 per cent, easing the burden on renters. The Melbourne vacancy rate is now [...]

POSTED ON January 27, 2009
Banks rebuild margins

The spread between the interest rate paid on $50,000 on a cash management deposit account with a bank and a standard home loan has widened [...]

POSTED ON January 21, 2009
Lenders lose insurance option

MGIC Investment Corp is looking for a buyer for its Australian lenders mortgage insurance operation but, failing that, will close the business. MGIC said it [...]

POSTED ON January 21, 2009
CBA eliminates some mortgage brokers

Fewer mortgage brokers may be able to sell Commonwealth Bank loans after the bank set minimum volume targets for each broker. Westpac and NAB have [...]

POSTED ON January 20, 2009
Bank margins to remain high

Banks are not likely to trim margins on mortgages with the cost of wholesale funding remaining very high, even if it is not as severe [...]

POSTED ON January 15, 2009
AIMS making money from mortgages

AIMS Home Loans is one niche lender earning a tidy return. The Sydney-based mortgage manager, which raised fresh wholesale funding shortly before debt markets turned [...]

POSTED ON January 14, 2009
NAB trims maximum loan level

National Australia Bank cut its maximum loan to valuation ratio on a home loan to 95 per cent. ANZ cuts its maximum LVR to 90 [...]

POSTED ON January 14, 2009
Suncorp steers away from brokers

Mortgage brokers may have fewer reasons to introduce borrowers to a Suncorp home loan after the bank decided to cut the commission paid to brokers. [...]

POSTED ON January 13, 2009
First Home Owners grant in demand

More than 5,000 first home buyers applied for the beefed-up first home owner grants in the first full month of the scheme's operation, the Department [...]

POSTED ON January 13, 2009
Housing slump continues

New home approvals fell 12.8 per cent in November, a much bigger fall than the 1.5 per cent fall generally expected by economists. In Western [...]

POSTED ON January 9, 2009
Rates to plunge to two per cent

The Reserve Bank will cut official interest rates to 2.5 per cent or below next year say some economists because unemployment is expected to almost [...]

POSTED ON December 31, 2008
Rate cuts come too late for the repossessed

Almost 1,300 families in NSW had their properties repossessed in the first nine months of the year - before big interest rate cuts came into [...]

POSTED ON December 23, 2008
Banks tighten up on lending

Only NAB and Westpac are still offering no deposit standard mortgages. ANZ has imposed a ten per cent minimum deposit rule while Commonwealth Bank and [...]

POSTED ON December 22, 2008
Rent goes up, property prices go down

Property prices in Perth, Melbourne and Adelaide are expected to stagnate or even go backwards over the next year says Residex. Towns exposed or dependent [...]

POSTED ON December 22, 2008
Pay off credit card debts first

Paying down debt is the best protection you can give yourself and your family in uncertain economic times. Debts with high interest rates, such as [...]

POSTED ON December 19, 2008
Rates to fall to three per cent

National Australia Bank is now predicting interest rates will fall further than previously expected early next year. Markets are pricing in rate cuts of 1.5 [...]

POSTED ON December 17, 2008
Loans for the self-employed dry up

Maximum loan to valuation ratios for low-doc mortgages loans have shrunk from around 80 per cent to about 60 per cent over the past year [...]

POSTED ON December 16, 2008
First home buyers face tough new loan rules

The boost given to first home buyers by the federal government's big increase in the first home buyer's grants is expected to be largely negated [...]

POSTED ON December 16, 2008
Non-banks will take 6 months to lend again

Non bank lenders are starting to lend again with the assistance of the federal government's $8 billion assistance scheme that has allowed them access to [...]

POSTED ON December 15, 2008
2008 property slump could continue

Auction clearance rates declined throughout 2008 after a property boom in 2007 that saw 82 per cent of properties put up for auction sell under [...]

POSTED ON December 15, 2008
100 per cent home loans get scarce

Mortgage insurer Genworth Financial has tightened its underwriting standards ahead of tougher conditions in 2009. With effect from December 1, Genworth will no longer cover [...]

POSTED ON December 12, 2008
Arrears double on low doc home loans

Low doc loans are the source of most of the increase in arrears on home loans, at least among those loans funded through securitisation. A [...]

POSTED ON December 12, 2008
Bank customers go online to complain

Complaints by consumers to the Banking and Financial Services Ombudsman jumped up 22 per cent in 2007-08 to 7,911 new cases, apparently largely driven by [...]

POSTED ON December 11, 2008
Next big rate cut due in February

The governor of the Reserve Bank, Glenn Stevens, said yesterday that there were reasons to have "quiet confidence" about the economy and signalled that while [...]

POSTED ON December 10, 2008
Keep repayments high to bring interest costs down

A borrower with an average $300,000 mortgage who maintained their high repayments over the last three months as standard variable mortgage interest rates have fallen [...]

POSTED ON December 10, 2008
Rate cuts not flowing through to home sales

Auction clearances were up slightly on the weekend of the 6-7 December, but still well down on the same weekend last year. In Melbourne, 48 [...]

POSTED ON December 8, 2008
Sydney property slump continues

The number of new housing approvals fell 5 per cent in October to 10,730. Approvals in Queensland have slumped by 32 per cent in the [...]

POSTED ON December 5, 2008
Members Equity passes on full rate cut

Members Equity Bank today announced it would cut the variable interest rate on its Standard Variable Home Loans by 100 basis points. The reduced rate [...]

POSTED ON December 5, 2008
Forty thousand caught by fixed rate mortgages

43,632 borrowers took out fixed rate home loans between March and September when interest rates were at the peak according to the Australian Bureau of [...]

POSTED ON December 4, 2008
Rate rises blamed for poor economy

The Reserve Bank's interest rate rises early in 2008 are being blamed for weak results in the September quarter national accounts. Non-farm gross domestic product [...]

POSTED ON December 4, 2008
Banks hold onto big margins

No bank appears to have announced any reduction in interest rates in other lending categories such as personal loans, credit cards and overdrafts. Many business [...]

POSTED ON December 3, 2008
Homeowners $565/month better off

Homeowners with an average mortgage of about $300,000 will save about $193 per month or about $2,000 per year as a result of the Reserve [...]

POSTED ON December 3, 2008
CBA, NAB pass on full rate cut

The Commonwealth Bank and National Australia Bank yesterday passed on the full one per cent rate cut to home loan borrowers to take their standard [...]

POSTED ON December 3, 2008
RBA cuts again, more cuts to come

The Reserve Bank of Australia cut official interest rates to their lowest point in more than seven years yesterday. The RBA board cut another full [...]

POSTED ON December 3, 2008
Five per cent mortgage rates coming soon

Standard variable mortgage interest rates could fall to five per cent within six months, taking them to the lowest level since 1964 when they were [...]

POSTED ON December 2, 2008
Big rate cuts due this week

The Reserve Bank is expected to cut interest rates by at least 0.75 per cent tomorrow as expectations rise of zero or even negative economic [...]

POSTED ON December 1, 2008
Sydney buyers slugged by stamp duty

Sydney home buyers are paying higher rates of stamp duty on residential properties than buyers in other states. The BankWest residential stamp duty report shows [...]

POSTED ON December 1, 2008
Melbourne auction sales slump

Auction clearances in Melbourne slumped to a four year low on the weekend with just 51 per cent of 807 properties selling under the hammer. [...]

POSTED ON December 1, 2008
Mortgage company closes doors

Non-conforming mortgage manager Majestic Mortgages yesterday announced it would close its doors and cease operations immediately. Managing Director Trevor Scott blamed lower levels of activity [...]

POSTED ON November 27, 2008
Mortgage stress claims overdone

Seventy two per cent of mortgagees are not planning to reduce their mortgage repayments to match recent interest rate cuts according to an online survey [...]

POSTED ON November 26, 2008
Soft landing for house prices

House prices will not fall in Australia by as much as they have in other English speaking countries says Saul Eslake, chief economist of the [...]

POSTED ON November 26, 2008
First home buyers go bush

The increased first home buyer grant from the federal government is driving increased home building and buying in regional Australia, where house prices are generally [...]

POSTED ON November 24, 2008
Property is the best investment

Owner occupiers and property investors can get comparable or better returns than people who invest in the share market, even in buoyant economic times say [...]

POSTED ON November 12, 2008
Weak city auction results continue

Auction clearance rates remain low in Sydney with just 44 per cent of listed properties selling on Saturday for a total value of $103 million. [...]

POSTED ON November 10, 2008
First signs of recovery in property market

Mortgage brokers are reporting that demand and enquiries are increasing, even before the full effect of the October first-home buyers’ grant increase, and Tuesday’s 75-point [...]

POSTED ON November 7, 2008
0.5 per cent Melbourne Cup rate cut

The Reserve Bank of Australia is expected to cut interest rates by half a per cent on Melbourne Cup day, next Tuesday, as it seeks [...]

POSTED ON October 31, 2008
Home prices falling in Sydney, Perth

The median house price in Sydney and Perth is falling, while prices in Melbourne, Brisbane and Adelaide are still going up in affordable areas for [...]

POSTED ON October 30, 2008
Westpac on NSW sales blitz

Westpac has embarked on a 'NSW sales blitz' campaign on home loans. Westpac is offering 7.66 per cent home loan interest rates for first home [...]

POSTED ON October 28, 2008
GE Money cuts and runs

GE Money is closing its home lending, motor finance and small business lending divisions in Australia and New Zealand, costing 335 staff their jobs. GE [...]

POSTED ON October 27, 2008
Aussie Home Loans cuts rates again

Aussie Home Loans has cut its basic variable home loan rate by 0.50 per cent to 7.59 per cent. The standard variable rate is 8.09 [...]

POSTED ON October 27, 2008
Melbourne and Adelaide auctions recover

The Sydney residential property market continues to produce lacklustre auction results with just $56 million worth of homes being sold at auction on Saturday the [...]

POSTED ON October 27, 2008
Deposit guarantee will hurt property market

The Federal Government's bank deposit guarantee could weaken the property market mortgage finance companies are warning. "This issue has caused concern and uncertainty where it [...]

POSTED ON October 23, 2008
Westpac/St George cut rates

Westpac and St George have followed the other major banks and announced further cuts to standard variable mortgage interest rates. Westpac will reduce rates by [...]

POSTED ON October 23, 2008
RBA hoses down big rate cut expectations

The Reserve Bank is expected to cut interest rates on Melbourne Cup Day, the first Tuesday in November, but improving financial and economic conditions reducing [...]

POSTED ON October 22, 2008
Negative equity set to invoke mortgage stress

Rising unemployment will force one million households into mortgage stress by March next year says Fujitsu consulting. Expected big interest rate cuts are not expected [...]

POSTED ON October 21, 2008
Commonwealth cuts home loan rates

Commonwealth Bank announced a 0.21 per cent in its standard variable mortgage rate yesterday taking it down to 8.32 per cent. The move follows similar [...]

POSTED ON October 21, 2008
CommBank calls halt to HomePath experiment

The Commonwealth Bank has closed its low cost online mortgage business HomePath and will transfer all HomePath customers to Commonwealth Bank branded loans. HomePath represents [...]

POSTED ON October 20, 2008
Big city property markets still sluggish

The big increase to the first homebuyers grant has failed to ignite the capital city auction market with sluggish results being recorded over the weekend. [...]

POSTED ON October 20, 2008
Relief for first home buyers

Aussie Home Loans yesterday announced that first home buyers would be eligible for a special loan rate of 6.79 per cent. Aussie Home Loans chief [...]

POSTED ON October 20, 2008
NAB follows ANZ in cutting rates again

National Australia Bank yesterday announced interest rate cuts of 0.2 per cent on standard variable mortgages as well as business loans and loans to farmers. [...]

POSTED ON October 20, 2008
Interest rates to plummet to near zero

The average standard variable mortgage interest rate will be 6.3 per cent within five months according to market expectations. That would translate to repayments on [...]

POSTED ON October 17, 2008
First home buyer grant tripled

Fourteen thousand first home buyers are expected to benefit from the doubling of the first home buyers grant to $14,000. Prime Minister Kevin Rudd announced [...]

POSTED ON October 15, 2008
No rate cut for GE’s mortgage managers

Many smaller mortgage providers such as Easy Living Finance who are funded by GE Money Australia will not be able to pass on any of [...]

POSTED ON October 15, 2008
Banks make big cuts to fixed rate mortgages

Commonwealth Bank has followed the other major banks by announcing big cuts in interest rates on fixed rate mortgages. The Commonwealth will cut rates by [...]

POSTED ON October 15, 2008
Choosing the right mortgage crucial for investors

If the financing is wrong, investors can potentially end up losing their own home and their investment property as well. Plenty of inexperienced property investors [...]

POSTED ON October 14, 2008
More big rate cuts coming soon

Rate cuts of 0.5 per cent are predicted for Melbourne Cup day and a further 0.5 per cent in the first week in December. That [...]

POSTED ON October 14, 2008