mortgages Archives - Page 2

Full Credit History Now Available to Lenders

credit historyWhile low interest rates offer a fair incentive to buyers to take the property plunge, their minutely scrutinised credit files may make the task difficult for them…..that is if they do not take due care to maintain their credit history.
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NSW Borrowing the Highest Sum For Homes

home loanIn a bid to realise their dream of home ownership, Australians are not shy of borrowing more. In an article for the website realestate.com.au, Venessa Paech reports that the national average home loan size has increased by 6.4% over the last couple of years. On an average, people are borrowing $319,200 for fulfilling their ownership ambition.
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Demand For Fixed-rate Home Loans Surprisingly High

fixed rate home loansBarring NSW, which has witnessed a drop of 0.58%, each state has recorded a hike in the percentage of fixed-rate home loans written (comparing December against November). For the month of December, Fixed-rate loans contributed 33.06% of total home loans written and this figure is highest since March 2008. An article on the website The Adviser throws light on the subject.

Perhaps the trend is attributable to the fact that the Reserve Bank is playing its card very cautiously and in the present environment, people are opting for “certainly in repayments” above anything else.

Surprisingly, the percentage of fixed-rate home loans written is showing growth despite the fact that lenders across the spectrum have increased their fixed rates, anticipating a cash rate hike.

You can read the original article here.

Till when do you foresee cash rate keeping steady at 2.5%?

Issues of Negative Gearing and Depreciation Claims

negative gearingInvestors love the idea of capital growth. This said they are not averse to the concept of high rental yield either. In fact, things boil down to how a particular investor is planning his portfolio. Negative and positive gearing both have their merit after all? I will be none the poorer by elaborating on this subject….hasn’t gearing caught public attention for a long while?
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Strategies To Brighten Your Borrowing prospects

 bank borrowingsLending institutions are there for a purpose. It is their duty (and their business interest too) to forward us loans. However, it is not their responsibility to tell us what loan arrangement may suit us best. Thus is it important to conduct one’s homework and be as inquisitive as possible when dealing with banks and other lending institutions. Let me try and focus on a few areas which buyers will do well to be informed about.
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Christmas Is Coming – Keep An Eye On Bank Deadlines

christmas holidaysThings are different at this time of the year. Christian countries already press the celebratory button by now and workplaces start becoming hubs of holiday gossip.  However, though it might sound paradoxical, employees also start to work at a furious pace, in order to be free from work obligation when the Christmas festivities close in. Let me take you through how the finance industry behaves during this part of the year.
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Why You Should Use Multiple Lenders To Service Property Loans

multiple lendersYou have a big portfolio and you have great ambitions too. Naturally, you will be looking forward to getting more than one loan serviced, for one or several properties. If this be the case, I will advice you in all earnestness to look for multiple lenders. Read More

How To Get The Best Mortgage Deal

top mortgage dealIf a recent survey is to be believed, only 30% of mortgage seekers are doing the intelligent thing. Rest do not find the prospect of haggling for mortgage loans enticing. Yet, truth be told, your haggling capacity has direct impact on the mortgage deal you finally secure. After all, why will mortgage houses offer you lower interests or waive fee unless you ask them to do so (and be persistent)?
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Record Interest Rate Cuts Fail To Pep Up Borrowings

home loansThe further interest rate cut offered by the RBA on the 7th of May has done little to encourage borrowing activity in Australia. Michael Yardney for the Property Update reports that despite luring circumstances, the mortgage market is not as active as it was before the Global Financial Crisis.
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Mortgage borrowings close to peak years

homesDoomsday predictors are never short on work- after all, rumour mills work overtime. However, those who have predicted a crisis will only agree that the real estate market is going strong, quite strong. People are still borrowing amounts pretty close to what they borrowed in peak years to fetch properties in Australia. Annual borrowing for residential mortgage shows a steady picture. Michael Matusik from Property Update rightly points out that all three types; the first home buyers, second + buyers and investors are showing strong signals.

For first home buyers;

  • Nearly 100000 of them bought their homes last year.
  • Average mortgage for first home buyers is only about $12000 short of overall mortgage borrowings.
  • First home buyers called a debt of $28 billion upon themselves. This is roughly 1/7th of the total borrowing.

For second+ buyers, the borrowing figure is $88 billion, about $4 billion in excess of Investors and three times the figure for first home buyers. Trading volume is only 5% lesser than what it was during the peak time.

Investors have worked up a debt of $84 billion, holding roughly 42% market share in the year 2012.

The investor market is bound to gather further momentum, while the first home buyers’ market will play second fiddle and in all earnest, there won’t be a property bust any time soon. You can read the original article here.