Category Archives: News

Have a Quick Glance at the Effect of RBA Cash Rate on Your Home Loan

July 24, 2017

If you have every thought of buying a home loan, you might be aware of the fact that the interest rate has a great influence on how much you will pay for your home loan. Thus, it is important to be aware of the rates that your lender implements as it will solely determine your […]

Among Overall Owner Occupiers Mortgage, First Home Buyers Share is 14.7%

April 28, 2016

As per the new data collected from Australian Bureau of Statistics, first home buyers contribute only 14.7% share along overall owner occupiers mortgage. The figures collected shows that the lowest proportion of first home buyers comes from New South Wales, contributing 12% over the past year. All other states follow the same pattern, except Western […]

CBA Tightens Home Loan Approval Criteria for Foreign Investors

April 21, 2016

As per the latest announcement made by Commonwealth Bank Australia, the rules will be stricter from now for foreigners regarding home loan approvals. In the announcement, it is clearly mentioned that the bank is not going to approve all such loan applications that includes self-employed foreign income. Apart from it, the bank also stops accepting […]

Australian Housing Affordability Improves As Median Prices Declines

April 15, 2016

Due to a downfall in median prices, it has been seen that there is a rise in Australian housing affordability in the first quarter of the year 2016. It has been noticed that there is an overall improvement of 2.7 per cent in the Australian housing affordability the quarter ending March. But, if we talk […]

APRA is Set to Monitor Lenders on Regular Basis

March 23, 2016

As the lending rules are made strict by almost all the major lenders of Australia, but APRA is still monitoring the lending activities so as to maintain a balance. It is being noticed that the regulation authority will continue to keep an eye on the lending activities being carried out the major lenders. In their […]

Home Loans Margins of Major Australian Banks Hit Record Levels Last Year

March 17, 2016

It has been recorded by RBA that the home loans margins of the four major Australian banks hit highest levels in the past year. This change is seen due to low interest rates by the RBA, as well as the tighter lending rules and lower funding costs. The RBA noted that, “It marked a rare […]

Fixed Rate Demand Dropped in the Month of February

March 4, 2016

As per the new loans approvals data collected for the month of February, it can be seen that the fixed rate loans demand got a dip in the demand from the earlier demand. The mortgage choice data shows that there were overall 22.28 per cent loans written among the overall loans, whereas in the January […]

Housing Prices in Perth are in Favor of First Home Buyers

February 18, 2016

Despite of stricter lending standards by Australian banks, weak property prices are of great help for first home buyers in Perth, helping them to own a home. As in Perth the median house price fell down to $585,369. According to Domain Group’s December House Price report, “The price is the lowest since 2013, and it […]

Interest Rates are Again on Hold at 2.0 per cent for February – 2016

February 2, 2016

As of board’s meeting today, the team decided to leave the cash rate unchanged to historic low of 2.0 per cent, a statement by Glenn Stevens, RBA Governor. Analysing the current situations, it can be figured out that: Global economy is continuing to grow, though at a slightly slower pace than earlier expected. Commodity prices […]

Economists Expects Rate Cuts on the Way

January 27, 2016

It is being predicted by the major economists that, seeing the instability in global economic conditions, RBA will have cut rates this year. According to Dr Shane Oliver, the chief economist at AMP Capital, “The latest bout of global growth worries warns that the global environment Australia faces remains messy. So while rebalancing away from […]

Australian Banks are relieved from Capital Building by APRA

December 31, 2015

In this New Year APRA have made the major change in its capital framework for banks, following consultation with the Council of Financial Regulators. The prudential regulator announced last week that the countercyclical capital buffer applying to the Australian exposures of authorised deposit-taking institutions (ADIs) would be set at zero per cent from 1 January […]

Interest Rates Are Expected to Rise in 2016

December 23, 2015

After the frequent rate cuts in 2015, analysts are expecting that following US and UK, Reserve Bank of Australia is also set to make a interest rate hike in the coming year. In last week US Fedral Reserve, made an interest rate hike, which were constant from approx 10 years. Sydney Morning Herald report has […]

Mortgage Stress is Seen in Average Aussie Homeowners

December 3, 2015

According to an industry study out today, an average Aussie homeowners are suffering from the mortgage stress, as 31.7 per cent of their monthly income got spend on mortgage repayments. The REIA Adelaide Bank released its Housing Affordability Report for the September quarter, that shows that housing affordability in Australia is now decreasing, as percentage […]

Housing Unaffordability Increases the Risk of Mortgage Defaults in Australia

November 24, 2015

A new report has been revealed by research company Moody’s, that shows the risks of mortgage defaults grows up due to lack of housing affordability. As per the report, “Housing affordability in Australia has “deteriorated significantly” over the 12 months to October 2015, especially in Sydney, where affordability is the worst it has been in […]

Home Loan Demand Rising Up Again – Says NAB

November 20, 2015

Due to stricter lending standards by major banks, the home loan demand in Aussies got decreased earlier, but now it again started rising up, says NAB. In a telephone interview on Tuesday, NAB’s Chief Financial Officer Craig Drummond said, “Home lending has “kicked back again” after the recent increase in mortgage rates. At the same […]

RBA Minutes on November Monetary Policy Signals Towards Further Rate Cut

November 18, 2015

RBA released its minutes yesterday on November monetary policy in which the board decided to keep the cash rate unchanged to 2.0 per cent. In the meeting the board noted: Quarterly inflation remained subject to a degree of volatility and measurement error, the broad-based nature of the low outcome in the September quarter suggested that […]

Stricter Lending Regulations Seems Beneficial – says RBA

November 10, 2015

It has been noticed by RBA that the tightening of lending standards in accordance with APRA regulations have a beneficial effect on slipping lending standards. Reserve Bank assistant governor Malcolm Edey gave a speech at Australian Property Institute’s Queensland Property Conference in which he said, “Investigations revealed that lending standards have slipped following the recovery […]

Interest Rates are Again on Hold at 2.0 per cent For November 2015

November 3, 2015

As per the RBA’s meeting today, the interest rates are on hold for another consecutive month. Its been 6 months since May rate cut. It is been seen that as per the expectations of majority of economists, the interest rate cuts will be kept constant at 2.0 per cent for this year. According to RBA, […]

Popularity of Mortgage Brokers Increases as Aussies are Keen for Home Loans

October 28, 2015

As the lenders are increasing interest rates for investor home loans and making lending standards strict to cop up with the APRA’s guidelines. In this week, Annual Investor Sentiment Survey results for year 2015 released property investment Professionals of Australia (PIPA), that shows that a large no of respondents said, owing a finance is becoming […]

Following Westpac and CBA, NAB also Increase Home Loan Rates

October 23, 2015

As the two major banks Westpac and Commonwealth Bank of Australia has made a variable rate home loan hike by 2 and 15 basis pints respectively, so following the two, NAB has also announced a increase in the home loan rates by 17 basis points. Following the above, the new NAB’s rate will be 5.6%, […]

Interest Rates are on Hold for Fifth Consecutive Month

October 6, 2015

In today’s RBA meeting on monetary policy, the board decided to leave the cash rate unchanged to 2.0%. It has been 5 months since May; the RBA has kept the cash rate constant. It has been expected by many of the economists that interest rates might dip this month, whereas some expected them to be […]

Official Interest Rates Will be Dropped to Further Lows – Predicts ANZ Economists

September 28, 2015

Seeing the conditions of global economy and high unemployment rate, the major economists at ANZ predicted that RBA will make the cash rate to further lows this time. As per the Fairfax ANZ chief economist Warren Hogan and senior economist Justin Fabo were the ones who previously predicted the cash rate to remain unchanged for […]

Home Loan Rates are expected to Rise in the Coming Time

September 24, 2015

According to an analyst of an Australian bank, it is expected that the home loan rates will rise in the future as the banks are facing much pressure to strengthen their capital position. As per the APRA chairman Wayne Byres speeches, which were delivered last week, the banks will need to fund themselves with more […]

Lenders Slashed Interest Rates Even More than RBA For New Owner Occupiers

September 22, 2015

RBA has cut its interest rates to 2.0 per cent, to stimulate the economy, while it has been seen that some of the lenders have slashed interest rates to double as that of RBA, shown by figures collected by Mozo, interest rate comparison website. According to Mozo: The very first lender to offer competitive rate […]

RBA Minutes on September Monetary Policy

September 15, 2015

After watching the signs of improvement in Australia’s non-mining industries, RBA decided to keep the interest rates on hold for September month too. At this monetary policy RBA released its minutes today in which the board states that, “Members observed that recent indicators of consumer sentiment and retail sales had been consistent with some increase […]

RBA Opposes the Myth that Increased Land Supply Can Lower House Prices

September 10, 2015

It has been expected that, if more land will be supplied for houses, then it might lead to fall the house prices, but RBA head of financial stability Dr Luci Ellis opposed this myth in a meeting. The meeting was held on Tuesday in which Dr Ellis said, “The desire of people to live in […]

A Rise in Property Investor Loans for July 2015

August 31, 2015

As the banks are trying their level best to keep investor lending on track, but the APRA released figures that showed that the loans keep on rising for July month too. Monthly banking stats by APRA show that $539.5 billion were recorded in the month of July 2015, a 22.8% increase from the past year. […]

Majority of Aussies Expecting Cash Rate to Fall Below 2 per cent

August 27, 2015

A survey has been done among the Australian consumers, in which polling has been done on the cash rate decision of RBA that revealed that majority believes that the rate will fall down from 2% before the end of this year. If we talk about the ratio of the polling than it comes to be […]

APRA Will Take Further Actions to Control Investment Lending

August 26, 2015

As the investor loan growth in Australia is quite high especially in Sydney, Melbourne, so at this APRA head Wayne Byers says that this could lead us to take further steps to overcome this risky lending. Mr Byers said, “APRA was keen to first assess the impact of recent moves by banks to tighten lending […]

Credit Cards Interest Rates Should be Reduced – Demands FBAA

August 25, 2015

RBA has left the interest rates on 2% for the third consecutive month. So in this historically low interest rates environment, FBAA urges the Australian banks to lower interest rates for credit cards too. FBAA chief executive, Peter White has applauded the Reserve Bank of Australia (RBA) for challenging the banks as to why customers […]

Westpac Announces Home Loan Rebate Offer to Aussies

August 21, 2015

Westpac announced to initiate a home rebate campaign that will help Aussies to save over $1,000 on their owner-occupied loans. As a celebration of popular Chinese Mid-Autumn Festival, which falls on Sunday 27th September, the bank will be running this campaign from 24 August i.e. Monday. Under this promotion, the eligible borrowers can receive a […]

Lenders Must Lift Standards for Interest Only Loans – Said ASIC

August 20, 2015

According to ASIC, Australian lenders, that offers interest only loans should lift their standards to meet important consumer protection laws. The demand of interest only finance increased by approx. 80 percent since the year 2012, as reported by ASIC. A review was conducted by the regulator among 11 lenders including the major ones, i.e. CBA, […]

An Overview to RBA Minutes on August Monetary Policy

August 18, 2015

RBA has released its minutes today on August monetary policy that focuses mainly on domestic economic conditions, as they are improved more than as per expectations by the experts. The minutes states that: Labour market conditions had been a little better than expected over the previous few months. Unemployment rate had been consistent over past […]

A Loan Helping Hand Raised For Low Income Holders in South Australia

August 14, 2015

In SA, so as to save the people having low incomes from payday loans, a financial organisation named ”not-for-profit” started giving interest free loans to them. The Salisbury-based Good Money store officially opened on Friday, will provide no-interest loans of up to $1,200 and loans of up to $3,000 with an interest rate of 5.99 […]

Rising Household Debt Worries RBA

August 12, 2015

RBA’s Deputy Governor Philip Lowe raises concerns regarding the increasing household debt that indicates towards the steadiness in historically low interest rates. Mr Lowe said, “Borrowing has increased as house and land prices are driven higher by a rapidly growing population and limited housing supply”. He told an economic function in Perth, “I think it […]

Is Housing Prices the Only Reason For Stricter Lending Standards by APRA?

August 7, 2015

What do you think the reason why APRA is imposing restriction to investor lending? It is just because of rise in Australian house prices. Wayne Byers, the chairman of Australia’s banking regulator, APRA, gave a great explanation on the topic. He said in a statement that crackdown on investor lending is caused not only due […]

Australian Expensive Housing Industry Analysis – An Overview by RBA

August 6, 2015

RBA’s Financial Stability Head Luci Ellis gives an overview on expensive Australian Housing saying, “There is “no disputing” housing is expensive, but loosening lending standards to help first home buyers enter the property market would be “counterproductive”.” She said in a statement that from the stability point of view, the lending standards are not planned […]

RBA Decided to Leave the Interest Rate Unchanged to 2.0% for August 2015

August 4, 2015

In today’s meeting, as per the expectations of majority of economists, the RBA decided to leave the cash rate unchanged to 2.0% for this month too. In a statement Glenn Stevens, Governor of RBA said, “In Australia, the available information suggests that the economy has continued to grow. While the rate of growth has been […]

Rate Cut Predictions by Economists for 4th August RBA Meeting

August 3, 2015

As per the economists’ predictions, majority is expecting the rate cuts to be on hold for August month too, along with the continuing rise in property prices. In finder.com.au’s monthly Reserve Bank survey, economists unanimously expect the cash rate to remain on hold at 2% when the Reserve Bank meets tomorrow, Tuesday 4 August. According […]

Research Shows Lesser Credit Growth in Private Sector in June Month

July 31, 2015

New data is released by RBA, that shows the loan growth rate in private sector is lower in the month of June. The figures calculated showed a total 0.4% increase in credit from 0.5% in last month. From past year till June the total credit growth was at 5.9%, which is incresed to 5% from […]

In Support to Comprehensive Credit Reporting ACCC Released a Proposal

July 28, 2015

A proposal has been released by Australian Competition and Consumer Commission, so as to support comprehensive credit reporting. This will be a helping hand for the lenders to take better decisions on lending and will also enhance competition. Before March 2014, the credit report of Aussies contain the collection of negative data only such as […]

Major Banks Boosted Interest Rates To Limit Investers Lending

July 24, 2015

Following the APRA guidelines to limit investors lending, Commonwealth Bank and ANZ have increased the interest rates for investor loans. In an announcement CBA said that for variable rates loans, there will a hike of 27 basis points and for fixed rate loans the hike will be in between 0.1 to 0.4 percentage points. Means […]

Austarlian Dollar Dipped After RBA Minutes for July

July 23, 2015

RBA minutes release on 21st June regarding the monetary policy indicates that, as per Mr. Stevens statement, developments in Greece and China can still lead to further interest rate cuts in this year. As per RBA minutes,“Information to be received over the period ahead on economic and financial conditions would continue to inform the Board’s […]

Focusing on Increasing Risks in Housing Market APRA Ordered Major Banks to Raise Capital

July 21, 2015

Seeing the rise in risks of the housing market Australia, APRA take a step towards this by ordering the major banks i.e. Westpac, CBA, NAB, ANZ and Macquarie Bank to increase the amount of capital required for their residential mortgage exposures, meaning they will have to retain billions of dollars that would otherwise have gone […]

Reserve Bank of Australia Calls for Review of Negative Gearing

July 16, 2015

RBA has made a call for reviewing the negative gearing, because according to the board it somewhere leads to the risks in property investment. The bank made a submission to the parliamentary inquiry into home ownership, quoting that speculation fuelled by negative gearing could raise risks in the market and drive up house prices. As […]

Opt for Energy Efficient Cars and Get Discounted Loans

July 9, 2015

Aussies opting for energy efficient cars in Australia will soon be getting discounts on loans, after a $50 million agreement was struck. As an initiative towards green environment, to reduce emissions including building upgrades and solar installations, some Australian lenders named Firstmac and the Clean Energy Finance Corporation have relied upon the agreement that they […]

Further Strictness in Investor Lending Rules by Major Australian Banks

July 8, 2015

Worries arising from the risks of hot property market in Australia is forcing major banks to make their lending rules stricter. From today onwards, the four big Australian banks named Westpac, ANZ, NAB and Commonwealth Bank have changed their lending policies. The largest lender Westpac limits loans to value ratio to 80%, which was previously […]

Predictions for Further Rates Cuts Boosts Variable Rate Loans

July 3, 2015

It is expected by many consumers that RBA will make further rate cuts in the coming month this year, as RBA governor have mentioned this thing in his previous statements that the further rate cuts will be there if required. This prediction makes more Aussies attracted towards variable rate loans. Home loan approval data released […]

Australian Home Values Rose to Nearly 10 per cent Over the Financial Year

July 2, 2015

CoreLogic RP data for the last financial month of the year 2014/15 revealed that the housing values rose to 9.8 per cent this year, which is slightly lower than that from the last year. “Interest rates cuts in February and May could have factored into pushing capital gains higher”, said Tim Lawless, CoreLogic RP Data’s […]

Property Investment Loans Remain Strong in May Month Too

June 30, 2015

As per the data released by RBA, investment loans in housing sector rose by 0.8% in the month of May and 10.4% year-on-year thereby again breaking APRA’s 10pc limit. This continued growth in the lending along with rise in housing prices is forcing APRA to pressurize banks for making their lending standards strict. UBS economist […]

CoreLogic RP Data Revealed Top 10 Regional Suburbs in Australia

June 26, 2015

As the property market in Australia is sky rocketing with prices, it seems difficult to search for an affordable property in the area. However, the CoreLogic RP data revealed top 10 most affordable regional suburbs in various states. Along with the immense popularity in farming industries, regional suburbs are also getting popular for their affordable […]

Queensland Budget 2015 Makes First Home Buyers Happy

June 25, 2015

In the upcoming state budget 2015, there comes a good news for first homebuyers residing in Queensland. Mr Pitt speaking at a Property Council lunch on Wednesday confirmed that the state’s first homeowners grant put in place by the Newman Government would stay. First homebuyers are being offered a grant of $15,000 towards a home […]

Suzuki Celerio Revealed as Australia’s Most Affordable Car

June 24, 2015

Aussies, it’s time to get a financing for your new car as the Suzuki Celerio now is the most affordable car in Australia. According to the new research done by RACV, the car is having a drive-away price of $12,990; its weekly running costs total $97.65 over five years. According to RACV, historically low interest […]

Further Tightening in Home Loan Rules by Commonwealth Bank Australia

June 23, 2015

There’s a lot of pressure on the Australian lenders to slow down the hot property market. For this, major banks made their lending rules strict. In continuation to this, Commonwealth Bank Australia imposed some more rules to home loan lending to make it strict. As per the new rules of CBA, the existing debts as […]

A Survey Shows Majority of Mortgage Holders are Paying Off their Loans Faster

June 18, 2015

A survey done by the Australia biggest credit union CUA has shown that more than three quarters of people with mortgages are taking full benefits of the low interest rates by making extra repayments so as to pay off their loan soon and be debt free. However, some Aussies said they were unlikely to put […]

Federal Government’s Small Business Tax Breaks Benefits Brokers

June 16, 2015

In the May Federal budget, the government decided to pass the tax breaks onto small businesses. Brokers are the one that are most benefited with this decision. In an announcement Treasurer Joe Hockey said that the government’s Jobs and Small Business package passed through the parliament this week. So from now all small businesses can […]

No-Interest Loan Program to Continue For Next Five Years

June 12, 2015

So as to cope up the families with lower income in Australia, there was a no interest loan program, that is planned to continued for the next five years. For this Abott government has release funding to support struggling Australians. Social Services Minister Scott Morrison on Thursday said, “The Federal Government’s $63.5 million five-year commitment […]

Growing Deposit for Property in Sydney – Biggest Issue for First Home Buyers

June 11, 2015

Australian interest rates are on low levels these days due to this Australians are paying comparatively less for interest payments from the past year. But is that enough for a first home buyer to invest in a property? Let’s see what experts says. According to Australian Property Monitors, “The share of Sydney mortgages being taken […]

RBA Open to Lowering Interest Rates in the Coming Months

June 10, 2015

In today’s meeting at Brisbane, RBA’s governor Glenn Stevens have made it very clear that the board is open to further rate cuts if that is, on balance, beneficial for sustainable growth. “The Reserve Bank will remain attuned to what it can do, consistent with the various elements of its mandate – including price stability, […]

Home Loans Gain a Rise of 1.0 per cent unexpectedly

June 9, 2015

All the major economists in Australia were expecting a 2.0 per cent fall in home loan approvals for the month, but the ABS statistics released today had left all of them in shock as the home loans gain a rise of 1.0 per cent. According to the data there were 53,951 approvals in April, compared […]

A New Research Shows the Variation of Mortgage Stress in Various Cities

June 5, 2015

As per the research done by an online property portal in Australia, it has been seen that the average mortgage stress faced by people in various cities varies to a larger extent. If we talk in general terms, the research shows that the average Sydney mortgagee can barely afford to eat, while Perth home owners […]

Aussies are attracted towards Fixed Rates Loans to Lock in Cheap Financing

June 4, 2015

As after the May rate cut, the interest rates are at historically low levels, so the Australians are more focused towards the fixed rate loans. As a result the fixed rate loans are getting a boost. Latest data revealed from Mortgage Choice showed that the fixed rate home loans increased from 17.91 per cent to […]

Be Calm Aussies! There is no Property Bubble in Sydney or Melbourne

June 3, 2015

Sydney and Melbourne property prices are on high levels and Aussies should stop believing on this myth that it a property bubble, a prominent commentator said. According to CEO of Mortgage Choice, “Key characteristic of a bubble is that it bursts”, and this simply isn’t on the horizon for Sydney and Melbourne”. He said, “To […]

RBA Decided to Leave the Cash Rate Unchanged to 2.0% for June 2015

June 2, 2015

In today’s RBA meeting, the board decided to leave the interest rate unchanged in this month to 2.0 per cent. This decision was expected by many Australian economists, because before the February rate cut the rate was stable to 2.5 per cent for one and a half year, but in this year the rate cut […]

Investors Loans in Housing Sector is Still Beyond APRA Limit

May 29, 2015

The growth in investor loans have shown a continuity in the April month too more than the banking regulator’s cap of 10 per cent a year. Figures shown by RBA showed that the investor lending rose by 10.4% in the year to April. Also the figures by APRA showed that National Australia Bank, ANZ Bank, […]

Good News for First Time Home Buyers – FHOG is Open for the Time Being

May 28, 2015

Here is a good news for first home buyers, the FHOG that was previously discussed to be scrapped in WA is now open for some time. All the new home buyers were completely disappointed with the state government’s decision to scrap the $3,000 grant for established homes, but now for the time being they can […]

Australia Home Loans at $1.3tn in First Quarter of 2015

May 27, 2015

As per the figures collected by APRA, it has been found that the home loans in Australia have got a $1.3tn reach in the first quarter of this year. Even the expectations are still more as owner occupiers and investors are likely to gain strong property returns. The report, the Australian Prudential Regulation Authority (APRA)’s […]

Stricter Lending Standards by Banks Seems Profitable for Non-Banking Lenders

May 26, 2015

As per the Australian Prudential Regulation Authority’s (APRA) pressure on banks for the tighter lending standards, the banks have started following the same. But it has come to notice that by this decision banks are losing the borrowers as there are getting more attracted towards non-banking lenders that don’t have as strict lending standards as […]

Lower Interest Rates are Unable to Boost Business Investment – Says Barclays

May 25, 2015

As per the research by Barclays, the lower interest rates are unable to stimulate business investment as expected. A recent survey was made that concluded that business investment was “quite insensitive” to rate cuts when the respondents were sitting on piles of cash. Kieran Davies, Barclays’ chief economist for Australia says, “Corporate cash holdings currently […]

Major Banks Restrictions to Loan Lending Rules Worries Investors

May 21, 2015

So as to impose restriction on investor lending, major banks in Australia made their lending rules strict, which is matter of trouble for property investors. Banks are removing discounts that were earlier applicable on loans, some are demanding bigger deposits for new loans, whereas others have restricted the loan to value ratios to 80% or […]

Today’s RBA Minutes Points towards Further Rate Cuts in the Coming Month

May 19, 2015

Today RBA released minutes on the last board meeting that was on May, 5. The minutes when analysed are indicating a further rate cut, with the slowdown in China, weak capital expenditure and concerns about the job market continuing to weigh on its thinking. The minutes also explained that the board was waiting for June […]

2015-16 WA Budget Eliminated First Home Owner Grant for Established Housing

May 18, 2015

According to the new budget of WA, FHOG is scrapped out for established housing. This news has dealt a blow to first home buyers. “This was done by state government so as to fulfil their desire to focus financial support on residential construction”, said Treasurer Mike Nahan. He said, “The $3,000 first home owner grant […]

A New Revenue Stream for Brokers by Scottish Pacific – Debtor Finance Company

May 15, 2015

So as to widespread the funding options for Australian SME’s, a Debtor finance company in Australia named “Scottish Pacific” has announced its move into the selective invoice finance space. “The new funding option for small to medium sized business was created to meet market demand and would increase the range of cash flow solutions available […]

RBA Releases a Report on Credit Losses

May 13, 2015

As per the research discussion paper released by David Rodgers, the increasing rate of unemployment and household indebtedness may affect the Australian borrowers. The research paper named “Credit Losses at Australian Banks: 1980–2013”, covers the ex post credit risk experience – the ‘credit loss’ experience – of the Australian banking system. The Australian credit loss […]

ABS Data Shows Home Loan Approvals above Expectations

May 12, 2015

Official figures released out today by Australian Bureau of Statistics shows a rise in home loans approvals, showing that the investors are well utilising the effect of low interest rates and house price growth. As per the figures the loan approvals got a 1.6 per cent hike in March, while it was expected be approximately […]

RBA’s Interest Rate Cut Drops Variable Interest Rates Below 4pc

May 8, 2015

After the historic RBA move, variable interest rates dropped below 4pc for the first time. But how households should take benefits from it? According to experts, households should not pocket any savings – instead calling for borrowers to prepare to slash loans while they could. “It was just a matter of time before rate began […]

Mortgage Loans Grows with Strong Housing Market in April Too – Reported AFG

May 7, 2015

The heated housing market in 2015 has continued showing its effect in April 2015 too, as AFG processed a record number of housing loans this month. As per the record the processed mortgages in the month was $4,380 million while in the previous year it was $3,674. While the figures is somehow lower than the […]

RBA Lowers Interest Rates by 25 Basis Points i.e to 2.0 Per Cent

May 5, 2015

As per the statement by Glenn Stevens, RBA’s governor, in today’s meeting the board decided to drop the interest rates by 25 basis points i.e to 2.0 per cent, effective 6 May 2015. Glenn Stevens said, “The Board judged that the inflation outlook provided the opportunity for monetary policy to be eased further, so as […]

Here’s Top ten Australian “Investors Hotspots”

May 4, 2015

“New South Wales and Victoria are the two major states that are gaining the attention of the investors”, shown by the data collected from realestate.com.au. As per the information gained from that data, a suburb named “Parramatta” in NSW tops the list, after that Victorian suburbs named ”Point Cook” and “Carlton” raked at second and […]

High LVR Loans Dropped Even in the Heated Market – Reported Mortgage Insurer

May 1, 2015

As per the report by Genworth Mortgage Insurance Australia, it has been seen a steep downfall in LVR, just because of the tough competition in the mortgage market. The report shows a 20.9 per cent decline in new insurance written over the first quarter of 2015. These results reveals that the amount of new insurance […]

Credit Growth in Private Sector Noted Near to Negligible this March

April 30, 2015

Data collected from the RBA shows that the loans growth rate that was performing well in the past months has been seen flat in the month of March. Also improvement in personal credit was balanced by slowing demand for business. Financial aggregated by central bank shows a 0.5% rise in total credit, after rising by […]

Aussie Dollar Shoots above 80 Cent Today

April 29, 2015

The Australian dollar, which was fluctuating between 75 to 78 after January has suddenly gained a rise to 79.94 cent yesterday and 80.18 cent today. Commonwealth Bank of Australia currency strategist, Joseph Capurso, said – “the strength of the Aussie was mostly being driven by offshore factors”. He said, “The Aussie outperformed against all currencies […]

Australia’s Strongest Economy Tag Goes to New South Wales (NSW)

April 28, 2015

According to CommSec’s State of the States report, NSW is ranking top in economy amongst all states of Australia in terms of housing market and other factors. CommSec chief economist Craig James said, “NSW has retained its top ranking on population growth and retail trade and is also now number one on dwelling starts”. Along […]

Commercial Property Market Gets a Boost with Lower Australian Dollar

April 23, 2015

New report released by CBRE shows that lowering of Australian dollar is set to provide a positive boost to commercial property returns over the next year. As per the analysis of report it can be conclude that Australian dollar now sits between 25 per cent and 30 per cent below its peak levels of early […]

Canning Vale – Western Australia’s No.1 Suburb

April 22, 2015

The real estate portal of Australia revealed a suburb in WA that has attracted the plenty of potential buyers. As per the data collected from Real Estate Institute of Australia, Canning Vale has been the most-searched suburb on the reiwa.com.au website since 1 January. This suburb is a mortgage-belt community about 20 kilometres from the […]

Sydney House Prices Gains the Attention of RBA – Says Governor Glenn Stevens

April 21, 2015

Glenn Stevens, governor RBA says, “There is too much focus on Sydney house prices”. This signals a further rate cut in coming months so as to balance the scenario. Speaking at The American Australian Association luncheon, governor Glenn Stevens said, “A good deal of the effect of easier monetary policy comes via the housing sector, […]

Lower Interest Rates Grows Business Loans Too

April 14, 2015

Due to low interest rates there is a boost in loans for business and investment over the past year. Lending finance figures collected from ABS show commercial lending – loans for business or investment purposes – rose 9.6 per cent in the year to February, despite having fallen one per cent in the month. “The […]

Falling Demand of Home Loans Increases More Chances of Rate Cut

April 13, 2015

As the home loans demands is cooling off, the chances of further rate cut by RBA is increasing, that were kept on hold in the April meeting of the board members seeing a boom in housing prices. As per the property consultant RP Data, “Yet rising prices were far from a national phenomenon, with the […]

Survey shows that Australians are Misinformed about Credit File

April 10, 2015

Research done by a company in Australia shows that a large no. of borrowers are unaware about the effect of their financial decisions on their credit score. According to survey: Around 65% of Australians incorrectly believe that contributing to superannuation or saving money can have a positive impact on their credit score. 33% of participants […]

Analysis Show a Rose in Mortgage Applications – MBA

April 9, 2015

According to the Mortgage Bankers Association (MBA), “Total mortgage application volume rose 0.4 percent week-to-week on a seasonally adjusted basis for the week ending April 3”. There is a 7 percent rise in loans applications by homebuyers, along with it these applications are now 12 percent higher than the same week one year ago Mike […]

Unchanged Interest Rates Leads to Moderate Credit Growth – says RBA Governor

April 8, 2015

RBA’s Governor Glenn Stevens has allayed concerns over growth in housing credit and said, “Credit growth is stabilising, particularly in the closely-watched housing market”. “Credit is recording moderate growth overall. Growth in lending to investors in housing assets is stronger than to owner-occupiers, though neither appears to be picking up further at present.” However, he […]

Rate Cuts are on Hold For Another Consecutive Month – Said RBA

April 7, 2015

“As per the RBA meeting today, the board decided to keep the interest rates on hold at 2.25 per cent for another consecutive month”, statement by Glenn Stevens, Governor: Monetary Policy Decision. The global economy is expected to have moderate growth in 2015. But as analysed the commodity prices have declined over the past year, […]

An Overview of South Australia’s Fastest Growing Suburbs

April 6, 2015

Recent data collected from Australian Bureau of Statistics shows that list of areas in South Australia that are growing fast. The ABS statistics are showing that SA had the second – lowest population growth rate (0.9 per cent) of all states and territories after Tasmania (0.3 per cent). “In June 2014, South Australia had an […]

Stamp Duty – Unfair and Inefficient Tax, Needs Replacement

April 3, 2015

Property industry considers stamp duty as an unfair and inefficient tax and introduces two ways by which it can be replaced by the state and federal governments i.e. by raising the GST or introducing a broad-based land tax. “The federal government’s tax discussion paper confirmed stamp duty was one of the worst, most growth-inhibiting taxes […]

Rate Cut Results a Huge Rise in Sydney House Prices

April 2, 2015

Due to low mortgage rates Sydney house prices surge over the first quarter of 2015. According the CoreLogic RP Data Home Value Index, “Home values across Sydney rose 3% over March, 5.8% over the quarter and 13.9% over the year”. This indicates that the annual home value growth of Sydney suddenly rebound after slowing to […]

Variable Rate Loans are Attracting Aussies, Due to RBA Rate Cut Expectations

April 1, 2015

Along with the expectations that RBA will make further rate cuts Aussies are focusing more on variable rate loans rather that fixed-rate loans. Figures found by Mortgage Choice shows that demand for fixed-rate loans hit a two-year low in March. It can also be seen in the figures that the demand started dropping four months […]

Due to Increasing RBA’s Rate Cut Chances, Dollar Dips More

March 31, 2015

As a result of drowning commodity prices and a weak outlook for growth, the chances of rate cuts by RBA has increased. This thing also driving the local currency to a lower level. The Australian dollar fell from US77.21¢ at 4pm AEDT Monday, down almost US1¢, to arrive at US76.34¢ at 4pm AEDT Tuesday. Over […]

RBA’s Risk Warnings Annoying Mortgage Brokers in Australia

March 30, 2015

After the warning of RBA that the growing industry heightened risks to the financial system, it has received disapproval from mortgage brokers. Mortgage brokers accused the RBA of not giving out evidence in relation to its claims, when the central bank noted in its semi-annual financial stability review the increasing “use of brokers to about […]

Property Prices at Sydney Auction Booms as Easter is Approaching

March 27, 2015

The property auctions in Sydney are running hot every week, fuelled by buyers who seem prepared to spend well above the asking price in this highly competitive market. As per the CoreLogic RP Data, “This is prompting weekly clearance rates to remain very high, usually up around the 85% mark, as it was this past […]

Stricter Lending Standards Can Lead to Cooling Housing Prices – Said RBA

March 26, 2015

According to RBA, if the lending standards are strictly supervised, than it can lead to cooling house prices, as some banks are likely to curb their mortgage activities. “The composition of new home loan finance “remained skewed” to investors, especially in cities like Sydney”, said The RBA’s 58-page Financial Stability Review. As per the RBA […]

New Report Titled Sydney as Extreme Seller’s Market

March 25, 2015

As per the new report Sydney’s scorching hot market shifted its title from “Best-selling market” to “extreme seller’s market”. It is found by the latest Commonwealth Bank/CoreLogic Home Buyers Index (HBI) that the number of new mortgages processed by CBA largely outpaced the number of properties advertised for sale in the city. That means if […]

There is a Rise in First Home Buyers in Queensland and Western Australia

March 23, 2015

Research done by Mortgage Choice shows the noticeable difference in the no. of first home buyers from different states. As per the new home loan approval data, Queensland and Western Australian first-home buyers accounted for almost 1 in 5 loans in February this year, while New South Wales accounted for less than 1 in every […]

Property Auctions Set to Rise Across All Capital Cities

March 20, 2015

As per the new data collected from CoreLogic RP Data, it is figured out that the sales proportion by auction is rising if compared with the last two years data. It is expected that across Australia there will be 3,003 auctions, 2,539 in capital cities, compared to 2,556 last week and 2,466 for the same […]

An Overview to Most Discounted Suburbs in Australia

March 19, 2015

Are you aware that even in the areas where prices are rising frequently, the properties selling at a discount are more common than you think? According to the latest stats from CoreLogic RP Data, Stanmore in Sydney’s inner west, where units are selling 15% below their listed price. Also Vendors in the satellite city of […]

Stamp Duty Policy by ALP can Convince First Home Buyers to Invest more…

March 18, 2015

According to state opposition leader Luke Foley, “First home buyers in NSW are allowed to pay stamp duty over five years”. This may cause the first home buyers to invest more in the property. Sam Elbanna of CPM Realty said, “On an $800,000 property, they might have to pay $30,000 in stamp duty which they’d […]

Further Rate Cuts Might Be Required – Said RBA

March 17, 2015

After seeing a continuous decline in Australia’s economic outlook, RBA say that it might be required to make further interest rate cuts. The central bank says, “It held fire in March to assess the impact of its February rate cut, when it dropped Australia’s cash rate to a record low 2.25 per cent”. RBA said, […]

ABS Data Shows, South Australia Housing Finance is Getting Down

March 13, 2015

The analysis of data made by Australian Bureau of Statistics shows that the housing market of South Australia is lagging behind, particularly in January when it had the eighth successive month of decline in people seeking housing finance. According to the Adelaide independent news website InDaily, there is a 5.9% dip in the count of […]

Melbourne’s Suburbs Where It is Hardest to Buy a House

March 12, 2015

As per CoreLogic RP Data Brunswick East was the hardest suburb in Melbourne to buy a house. The property data and analytics firm made an analysis to measure the ease of buying a house in the city. The CoreLogic RP Data showed that only 2% of houses in Brunswick East had been advertised for sale […]

Soaring House Prices Results in Lesser First Homebuyers in NSW

March 11, 2015

WA has the most active first home buyers in Australia, but the rising house prices have made property market debutants a rarity in NSW. In Western Australia, first home buyers accounted for almost one in five loans written in February. But in NSW, the rising prices makes home buying process a daunting task, also with […]

March Rates Are on Hold, Still Borrowers Set to Be Better Off in 2015

March 10, 2015

According to mortgage comparison website, the RBA’s February rate cut will save the average borrower around $700 over the course of 2015 As the interest rates are kept on hold in March, RateCity analysed that the average standard variable rate has dropped to 5.07 per cent this year – the lowest in 60 years – […]

Figures Shows Mortgage Rates are at Lowest Since 1968

March 9, 2015

The rate cut by Reserve Bank of Australia makes Australian homes loans at their lowest in almost half a century. As per the new figures calculated by CoreLogic RP Data, there is a 4.9% dip in mortgage rates, such a low level is level not seen since 1968. Coming to auction clearance rates, they have […]

Among All the Australian States, NSW is Least Affordable

March 5, 2015

The housing prices in Australia had jumped by 3.5% to $641,457 as found in the December quarter report. This caused a difficulty for some potential homebuyers to own a property. Housing Affordability Report by Adelaide Bank and Real Estate Institute of Australia shows that, “There is 6.6% increase in median house values compared to the […]

In New Apartment Hotspots List Victoria is on the Top

March 4, 2015

According to the latest survey, there comes five Victoria suburbs in the New Apartment Hotspots report. A list is released by “realestate.com.au” containing ten suburbs that are most viewed for off-the-plan apartments in the past three months. Below mentioned is the complete list: 1. Collingwood (VIC) 2. Hampton (VIC) 3. Lane Cove (NSW) 4. Mosman […]

RBA Decided to Put Interest Rates on Hold This March

March 3, 2015

As per the statement by Glenn Stevens, Governor of Monetary Policy Decision, “At its meeting today, the Board decided to leave the cash rate unchanged at 2.25 per cent.” Opposite to the survey made by all major economists, RBA decided to put the rate stable to 2.25 percent this month. All the observers were expecting […]

House Prices Rose to New Heights This February

March 2, 2015

Housing prices continues to rise as found from the figures of CoreLogic RP Data that shows that 0.3% rose in capital city home prices this February, taking the annual increase to 8.3%. Here is the complete year-on-year growth as per CoreLogic RP Data – As predicted,  the Reserve Bank could cut the official interest rate […]

It Is Expected That RBA Will Cut Its Interest Rates Again This March

February 27, 2015

As per the survey by top economists, it is expected that Reserve Bank will cut its interest rates again this March. According to their forecast by AAP, RBA will deliver at least one more rate cut in 2015, taking the cash rate to a new record low of two per cent. Commonwealth Bank senior economist […]

Sydney and Melbourne are Expected to Grow Further

February 26, 2015

Propell National Valuers released the Residential Market Report for the month of February, and made a prediction that the housing markets of both Sydney and Melbourne will keep growing with a rate of 10% and 7% respectively. “The continued fall in interest rates would reduce the cost of entry into the housing market”, said Linda […]

Good News for Low-Income Homebuyers, WA Adopts a New Loan Scheme

February 25, 2015

Buying a home seems a bit difficult task when you have a low income. But there is a good news for Low-income Western Australian homebuyers. They can now make a property purchase by sharing 30% of the capital with the Department of Housing and borrow the balance through state lender KeyStart Home Loans. As per […]

A Suburb in Queensland is Attracting Interest of Property Investors

February 24, 2015

As per the survey done in Queensland, the master-planned suburb is found to be increasing sales steadily. The research made by property analyst Urbis on Robina concludes – a 35 year-old master-planned community on the Gold Coast – found “walkability”, “connectivity” and “strong employment growth” had made the suburb an increasingly popular choice for Generation […]

The New Credit Reporting System to Start Soon

February 23, 2015

Soon, lenders in Australia will be able to assess the credit standing of applicants as compared to previous year due to the changes to the Privacy Act. The amendments introduced in March 2014 helps to to record more information on the credit records. This means, not only the negatives but the positives will also be […]

Stamp Duty Rose by 9% in New South Wales in the Year 2014

February 20, 2015

According to a report from the Real Estate Institute of Australia – the state’s homeowners were hit by an average stamp duty bill of $33,490 in December 2014. That marked a nine per cent increase on the $30,723 figure recorded the year before. Malcolm Gunning, the president of the Real Estate Institute of Australia has […]

Regardless of Falling Sales, Property Prices Stay Calm and Firm in Western Australia

February 19, 2015

Real Estate Institute of Western Australia (REIWA) released a quarterly analysis that shows decline in property sales but prices remain steady. David Airey, president of REIWA said – Sales activity had peaked two years ago and had been trending down since the March quarter of 2013. Turnover of the December quarter is about 14% below […]

Sydney or Hobart! Which is better to make an Investment?

February 18, 2015

If you’re eyeing to build a fortune in 2015, the best stake would be to hunt for prospects in these two markets, according to CoreLogic RP Data. Tim Lawless, head of research, said – based on the analysis, these two cities offer some of the best capital growth potential in the whole country. Granted, they’re […]

These Suburbs are the Cheapest in the Most Expensive Property Market of Australia

February 17, 2015

As per the CoreLogic RP Data – Marrickville, Gorokan and Toukley are among the busiest of Sydney’s cheapest suburbs and for houses, Marsden Park is the cheapest Sydney suburb, with a median price of $119,310. However, the suburb only saw seven homes sold in the past year. Gorokan, with 241 houses sold in 2014 at […]

Rising House Prices are the Main Enemy of First Homebuyers – says RBA

February 16, 2015

The Reserve Bank of Australia (RBA) has claimed that a first home buyer’s “biggest enemy” is the rising home prices, not the rising interest rates. Governor Glenn Stevens said – it is important for the RBA that first homebuyers have the ability to enter the housing market when he was asked by a school student […]

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