Barring 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%?
Investors 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?
Lending 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.
Things 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.
You 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.
