There’s the old saying that you can’t put a price on love. But the Bank of Mum and Dad provided $2.7 billion to their adult children to buy property over the last year. The Productivity Commission estimates mum and dad as a collective would be between the 5th and 9th biggest home loan lender in… Read more »
In today’s ever-evolving financial landscape, the journey to homeownership is undergoing a significant transformation, particularly among Australians aged 25-49. A recent study conducted by YouGov has shed light on a remarkable trend: the surging popularity of digital home loans. Traditionally, Australians have relied heavily on mortgage brokers or direct bank applications for their home loans.… Read more »
Borrowing power has plunged over $260,000 for some Australian families, trapping many mortgagees that can’t qualify for better rates, and hampering house hunter hopefuls. Lenders have been far more cautious in an effort to offset the risk of recession and higher rates that could impact long-term serviceability. Fixed rate borrowers who have just had their… Read more »
Beware: easier eligibility for a home loan doesn’t necessarily translate to a better deal. Higher interest rates not only bring higher mortgage repayments but, for new borrowers, the amount that can be borrowed falls. That’s because when the banks assess a borrower’s eligibility to repay the loan they stress test the applicant by assessing their… Read more »
Yes, rising interest rates stealthily reduce your borrowing capacity. Fortunately there are a few simple things you can do to increase it. I’ve talked about this a few times over the last couple of months. Not only do rising interest rates increase loan repayments, they also reduce your borrowing capacity because the so-called “serviceability test”… Read more »
As the dust has now settled after last week’s interest rate hike by the Reserve Bank, economists have been reassessing just how many more hikes are to come in this interest rate cycle. Three of the big four banks have revised their forecasts, after the lower than expected 0.25 per cent RBA October rate hike.… Read more »
This week the Reserve Bank (RBA) started to rebuild its credibility and get ahead of the inflation curve by lifting official interest rates by a higher than expected 0.5 per cent to 0.85 per cent… the biggest rate hike in 22 years. It follows well behind similar rate rises by Central Banks in the UK,… Read more »
Let’s go through the facts and disprove some of the mistruths currently being sprouted by the media and politicians about interest rates. Yes, the Reserve Bank surprised everyone by raising official interest rates 0.25 per cent (instead of the expected 0.15 per cent) to 0.35 per cent. Yes, home loan monthly repayments will rise almost… Read more »
How much interest rates will rise is the big question and each of the big banks have a slightly different answer… but they all agree the first rate increase will be June. Westpac’s economic team is now predicting the cash rate hikes will start in June and hit 2 per cent by June the following… Read more »
While it feels like a major hassle, the fact remains that refinancing your home loan is often the only way to get a good deal. According to digital mortgage broker Finspo, the average home loan duration is surprisingly short at 4-5 years. It’s not that people are powering through their mortgage and paying it off… Read more »
