The RBA meets tomorrow to dicuss another possible rate in Australia. With one in four economists prediciting a cut, the more important question on everyones mind is that if a rate cut does occur, will the banks pass it on.

House values have fallen according to RP Data stats, however the recent month of March showed strong signs of a recovery with low interest rates and the governments boosted first home buyers grants.

With the sharemarket climbing to its highest point in 2009, a false sense of recovery looms.

No Comments »

An overhaul of consumer credit rules will make it easier for people who lose their job to envoke a “hardship” clause to seek relief from demands to meet mortgage and other loan replayments. The threshold for people to qualify for financial hardship will be increased from $312,400 to $500,000.

The aim by the government is to help people to keep their home even if they have lost their job. The four main banks have signed up to the scheme. This is a great step forward by the government and the banks so long as it is not to dificult for those that are in hardship to secure the payment break tht they may require.

No Comments »

Lenders, Banks and Non Banks, are struggling to keep pace with an unexpected increase in applications from first-home buyers due to the first home buyers grant deadline at the end of June this year. Some banks are taking as long as a month to approve loans. This is resulting in some buyers missing their settlement dates.

The banks new lending policies and the poorly organised applications by new borrowers is hampering the banks efforts to approve and allocate loans ontime.

Banks are now hiring more staff to cope with the demand… a reversal from 6 months ago when banks were letting go staff in their home loan lending divisions.

No Comments »

The Government is considering the move to stop banks charging exit fees on their home loans to help increase competition. The recent RBA rate cut of .25%, while the banks either passed on 0.1% or nothing has angered the Government, thus pushing it to consider other options to help those with a home loan. 

Some people are confused and think this is referring to those that wish to break their fixed home loan rates, however this is incorrect. Those with fixed interest rate home loans will still be required to pay the break costs should they decide to move banks or change from a fixed to lower variable loan.

No Comments »