Home Loans, Mortgage Refinance, Bad Credit Home Loans

Since the inflation figures came out earlier this week there is some consensus amongst economists that RBA will most likely leave the interest rates where they are next week. None the less a number of lenders have spoken out over the recent weeks and months that they may need to increases their variable rates outside of any movements by the RBA.  Borrowers have as a consequence decided to play it safe and opt for a fixed home loan rate.

According to information provided by the Loan Market Group, borrowers are still concerned about being caught up in a  spiral of interest rate increases and many prefer the stability of a fixed rate mortgage.

While the market is continually talking about the next variable rate increase, a number of mainstream lenders...

Australia’s economy is going strong and this fact is boosting the satisfaction levels of most Australians.  According to an Income and Wealth report compiled by AMP, almost 90 per cent of people interviewed have confirmed that they are satisfied.

The report suggests that the natural optimism of Australians has gone a long way to boosting satisfaction levels.

Australians are renown for their optimistic outlook on life that has seen us through many tough times in the past.

People who have managed to achieve home ownership have demonstrated a higher level of satisfaction than others.

While people with large unsecured debts are less satisfied than people with large home loans. Mortgage holders are happier as they understand that they are holding growing

LJ Hooker real estate group have entered the home loan  market to capitalize on the synergies of the real estate and the finance businesses.

The franchise real estate group has joined forces with Firstfolio to launch its own brand of home loans – LJ Hooker Classic Home Loan. This loan will be distributed through LJ Hooker Financial Services.

The new LJ Hooker variable rate home loan is very competitive with an interest rate of 6.65 per cent. The launch follows a successful pilot offering within the LJ Hooker network during the past two months that resulted in the company writing over $30 million in home loans.

In a similar move a couple of weeks ago, AFG had made a decision to rebrand its own label mortgage division as AFG

According to figures compiled by Veda Advantage, demand for new home loans was lower by 20% during the June quarter when compared with the same time last year.

The figures represent the most significant quarterly drop in in demand for home loans in the six years Veda Advantage’s Credit Demand Index has been measured  The latest drop in demand was on the back of a 15% drop in the January to March quarter of 2010, year-on-year.

This was also the second consecutive quarter decline when measured year-on-year, with mortgage applications dropping at almost the same rate as was seen in the April to June quarter of 2008, which fell by 18%.

The most significant decrease in home loan...

CPI figures for the three months to June have come in lower than expected, easing the pressure on the Reserve Bank to increase interest rates next week. Aussie Dollar is lower as a result of these news.

The CPI is used to broadly gauge inflationary pressures in the economy.  According to the Australian Bureau of Statistics, the Consumer Price Index was up by only by 0.6 per cent in the June quarter from 0.9 per cent in the three months to March. Economists had predicted  that CPI would come in at 1 per cent for the June quarter.

Consequently we are not expecting a rate rise next week, said Macquarie Interest-Rate Strategist Rory Robertson. “The RBA will remain on hold for at least the next three months and probably into 2011.”

Clearly a mid election

Information provided by the Loan Market Group suggests that Mortgage Brokers are now submitting larger mortgages than in the past.  Consequently brokers are able to benefit from larger mortgage commissions.

It seems that there is 13% more home buyers looking for mortgages in excess of $500,00 than there were last year.

While increases were experienced in all states and all capital cities of Australia – Melbourne has ranked first. In Melbourne there is a 21% increase in home buyers looking for home loans larger than $500,000.

According to statistical information collated, increase in home values is only a partial contributor to such a shift in demand. One of the other reason for...

Mortgage holders should brace themselves for multiple interest rate increases over the coming months. Firstly RBA is likely to act on the risk of growing inflation by upping the cash rate.  This could happen in early August. Subsequently and quite independently the banks as well as other lenders are quite likely to introduce interest rate increases independently in order to cover growing costs of wholesale funds.

According to the RBA governor Glenn Stevens tomorrow’s inflation result will be a significant factor in the board’s next decision.

One of the main tools used by the RBA to control inflation is our cash rate.

It wants to keep underlying inflation between 2 and 3 per cent. It is currently at just over 3 per cent.

Although Australian

Australian small business group in conjunction with NAB are trying to rally up support to loosen the regulatory constraints on loans to small business.

Existing lending rules are making it very difficult for small business to qualify for loans.

The Council of Small Business of Australia (COSBOA) is calling on the major political parties to address the business credit crisis in Australia.

The next government to come into power will need to address this issue.

Recent research conducted by NAB shows that a decade ago both home loans and business loans were pretty much on...