Call: 1800 24 23 24 | Email us at enquiries@hlc.com.au

RBA Leaves Rate at 3.25% -6/11/2012

November 6, 2012 brokeradmin — No Comments

The Reserve Bank has left interest rates on hold at 3.25% following a robust inflation reading in September 2012 making yesterday the first Melbourne Cup Day in 6 years that rates have remained unchanged. Whilst there was no further cut in rates, they are still quite low and according to QBE LMI “the affordability of housing is currently at its best level across most capital cities since the first half of last decade”. If you would like us to compare your mortgage, please let us know and we’d be happy to help.

Which Lenders Passed on 2 October Rate Cut?

October 9, 2012 brokeradmin — No Comments

So which lenders passed on some of that 0.25% rate cut on 2/10? Here’s a summary for you so far! But don’t worry THLC can do better for you :)

Bank of Queensland -0.20% (SVR now 6.71%)
Commonwealth Bank -0.20% (SVR now 6.6%)
Homeside/NAB -0.20% (SVR now 6.58%)
ING Direct Bank -0.25% (SVR now 5.97%)
St George Bank -0.17% (SVR now 6.69%)
Westpac -0.18% (SVR now 6.71%)

No decision yet for Adelaide Bank/ Bendigo Bank, AMP, ANZ, ME Bank, Bank of Melbourne, Bankwest, Citibank, RAMS or Suncorp. Forecasting a rate cut for Melbourne Cup Day. Maybe we should bet on a horse!

Let’s Talk About Rates and the Economy!

October 8, 2012 brokeradmin — No Comments

Why do we focus so much on interest rates? Apart from the fact that if the full 25 basis point cut in the cash rate to 3.25%is passed on in full by lenders, it would reduce the average monthly repayment on a $300,000, 25 year loan by about $48. BUT … the RBA cash rate needs to reflect the true state of the economy and it’s the RBA’s role to keep rates where they believe they need to be based on all the information available. This includes when the banks are facing funding cost pressures which show up in higher deposit interest rates relative to official rates and rising wholesales funding costs. The RBA wants the interest rate that borrowers actually pay to be lowered as it deals with:
• low inflation at 1.2%,
• low unemployment (rate to be announced week of 8/10 up marginally to 5.3%) although the RBA
noted it appears the labour market has softened recently,
• the over-valued Australian dollar (at 8/10/12 A$/US$ 1.107)
• and significant global economic risks.
The RBA cuts are aimed at having an impact on the whole economy with full knowledge of how much it costs a bank to raise the money that it lends to us. Interest rates are now the lowest they have been for 3 years. It’s a good time to compare your mortgage rate to what is being competitively offered in the market right now. Contact us at The Home Loan Company for a no obligation loan comparison and let us do the work for you. We are one of the most experienced mortgage brokers in Sydney and will be happy to arrange the right mortgage finance for you.

RBA Cuts Cash Rate to 3.25% Effective 3 October 2012

October 2, 2012 brokeradmin — No Comments

As THLC expected, today the RBA Board decided to lower the cash rate by 25 basis points to 3.25%. Some key points made by the RBA in their decision today:

• Inflation has been low, with underlying measures near 2% over the year to June 2012, and headline CPI inflation lower than that

• The introduction of the carbon price is affecting consumer prices in the current quarter, and this will continue over the next couple of quarters

• The Bank’s assessment remains, at this point, that inflation will be consistent with the target over the next one to two years

• The Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker, while inflation was expected to be consistent with the target

• Credit growth has softened and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook

• Interest rates for borrowers have for some months been a little below their medium-term averages

• Investment in dwellings has remained subdued, though there have been some tentative signs of improvement

• Moderate labour market conditions should contain pressure on labour costs in sectors other than those directly affected by the current strength in resources

• This and some continuing improvement in productivity performance will be needed to keep inflation low as the effects of the earlier exchange rate appreciation wane

• Labour market data have shown moderate employment growth and the rate of unemployment has thus far remained low

We will need to wait and see if lenders pass on the cut in the cash rate through to their customers. If you have any questions at all, please as always let us know and The Home Loan Company will be happy to provide you with any assistance you need in comparing home loans and getting the right finance working for you.

FHOG Changes from 1 October 2012

September 22, 2012 brokeradmin — No Comments

Existing FHOG of $7,000 will be abolished for existing properties.
 New FHOG will however more than double to $15,000 from 1 October 2012 ($10,000 from 1 January 2014) for new properties up to $650,000;
 A New Home Grant of $5,000 to all non-first homebuyers of new properties up to $650,000;
 First Home Buyers Stamp Duty Concessions will continue with an exemption from stamp duty if buying a new property up to $650,000 (up from $600,000) intended to reflect Sydney’s median house price.

The existing grant will most likely pull forward demand and may affect home prices up to 1 October. The Home Loan Company can advise you on how to make the most of the Grants and compare home loans to get the right one for you.

Competition hits a new High with Fixed vs Variable Interest Rates

September 21, 2012 brokeradmin — No Comments

Have you been thinking about switching your home loan to a fixed rate? While variables are an attractive offer with low rates, there is no guarantee they will remain so.

Locking in your loan to a fixed rate when those rates can be around 50 basis points less than the standard variable rate offered by the majors, can be attractive. Be aware however that whilst fixing your rate allows you to set and know your budget, they don’t allow as much flexibility to make extra repayments. We recommend fixing part of your loan and leaving the other part variable.

Standard Variable Rates currently range from 5.62% – 7.29%. Low cost 3 year fixed rates (the most popular) are currently between 5.39% – 6.25%. But it’s not all about the rate. The amount you want to borrow or refinance, the term of the loan, the loan purpose, the fees, the lender and your credit record/rating will have an impact on the loan. At The Home Loan Company, we can help you compare loans and choose.

What Economists are saying about Interest Rates

September 6, 2012 brokeradmin — No Comments

The consensus among many bank economists is that interest rates will continue to fall up until the end of this year. Westpac Chief Economist Bill Evans said he expects the RBA will lower rates by 50 points to 3% by the end of 2012. ANZ bank’s economists Ivan Colhoun and Justin Fabo are expecting the RBA to lower the official cash rate by 25 basis points on October 2 to 3.25% and by a further 25 basis points on November 6 to 3%.

Don’t forget however, that many lenders have not necessarily been passing on all of those rate cuts. The Home Loan Company will advise you up to the minute on the next RBA rate decision from its 2 October Board meeting and what the lenders decide to pass on. If you would like to be on our mailing list please contact us at enquiries@hlc.com.au

What the RBA Said in Sept, 2012

September 3, 2012 brokeradmin — No Comments

The RBA kept the cash rate at 3.5% in September. The rate has been the same since June 2011 and the last time they were below this was in 2009. Reading the minutes from the 18 September 2012 RBA meeting, conditions are ripe for an interest rate cut as early as next month. The forecast Melbourne Cup Day rate cut may be brought forward to 2 October with the minutes showing that a weakening global outlook and a high Australian dollar may force the central bank to act sooner.

Please contact us at The Home Loan Company if we can help you or a colleague with making sure you have the best home loan for your needs. 1800 24 23 24.

How Much is that Property Really Worth?

August 27, 2012 brokeradmin — No Comments

How Much is That Property Really Worth? Find out before you buy. Lenders need to know that the home you’re buying is worth what you’re paying. They may not lend you the money you need if it’s not and your deposit could be lost! The Home Loan Company can make sure you know by giving you market reports for you before you buy and talking to the lenders.

Knock Years off Your Mortgage

August 25, 2012 brokeradmin — No Comments

So many choices, which way to Go! Make sure you get the right loan the first time – it’s a huge consideration when it comes to saving money. You need to make sure your loan is best suited to your circumstances.

Most variable rate loans will allow you to make extra repayments with no extra costs. This may not apply to fixed rate loans or interest only loans. Most lenders will limit the amount of extra repayments you can make without incurring extra fees over a specific period of time on fixed rate loans. If you are looking for a Mortgage Broker Sydney, The Home Loan Company can help you.

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