Home Loans - Page 37
Australia's top suburbs and towns for rental yield
The economic impact of the COVID-19 pandemic has forced many Australians to tighten their purse strings and demand for property has slowed. This means there is less pressure driving property prices up. Depending on your perception of risk, this could make 2020 a risky time to buy property – or an ideal opportunity to negotiate a great deal, explains Simon Pressley, director and head of research at Propertyology. “A strong property market will lead Australia out of this latest coronavirus health crisis, potentially starting as soon as six months’ time, as… there will be an enormous release of pent-up demand for … Continued
Property trends: Has COVID-19 changed the way we want to live?
Canstar asked four experts what changes we may see to homes and property as a result of the pandemic. There’s no doubt coronavirus has had a huge impact in many facets of our lives. From our health to our finances and even the way we work and our social activities, life has certainly been different. It will be interesting to see what life will look like post-COVID-19. Canstar asked four experts to each nominate two property trends they think we are likely to see as a result of coronavirus. Interestingly, many of the potential trends identified by the experts are strongly … Continued
COVID-19 crisis, two months in: What's the state of finances, property and our mood?
Two months after the first recorded death in Australia from COVID-19, the country is keenly feeling the economic fallout of the crisis, new statistics show. Here’s what’s happening to household finances, the property market and the mood of the nation in what has been called the most challenging economic climate in living memory. And it’s not all doom and gloom. House Prices in Australia, April, 2020 How is the Australian property market reacting to COVID-19? House prices across many parts of Australia have risen slightly in April, despite a sharp decline in market activity and consumer confidence since the coronavirus lockdown … Continued
Interest only home loans: Could switching to interest-only repayments ease pressure?
If you’re experiencing financial hardship due to coronavirus, an interest-only home loan could be an option worth considering.
Coronavirus: How hard is it really to get a home loan now?
Thinking about applying for a new loan or refinancing during COVID-19? It can help to know what lenders are looking for. Two insiders reveal the red flags that lenders may consider when assessing your application. If you’re accessing money regularly out of an ATM then it may just be a red flag for lenders if you are applying for a home loan at the moment, according to Smartline mortgage broker Michael Saliba. Confused? Well, since the COVID-19 outbreak began, we’ve seen many retail outlets requesting customers pay by card and not cash. While this method of payment aims to stop the … Continued
ACCC report: Savvy borrowers could be $59,000 ahead of passive home owners
A report investigating home loan pricing at the big four banks has highlighted the importance for existing customers to take the reins and find a better home loan rate, or risk paying a “lethargy tax” of more than $59,000 in some cases, one expert has warned. The interim report of the Home Loan Price Inquiry, which was released on Monday, focussed on the decision-making behind the interest rates charged to consumers by the main suppliers of home loans in Australia – ANZ, Commonwealth Bank, National Australia Bank and Westpac. Consumer watchdog the Australian Competition and Consumer Commission (ACCC), which is undertaking … Continued
Coronavirus changes how ING assesses residential mortgage applications
ING will temporarily change its home loan application process due to the widespread disruption to many Australian incomes from the coronavirus fallout. Casual employees or contractors may not be considered for a mortgage under the bank’s new rules. ING sent out an update on its mortgage application process today, outlining a number of measures it says will help reduce the risk of borrowers defaulting on their home loan due to circumstances beyond their control. Meanwhile, new Treasury figures released today gave a glimpse into the growing financial pressure many Australian households are likely to face, showing that the unemployment rate could … Continued
Refinancing a home loan: Rates hit new lows
Coronavirus has delivered a financial blow to many homeowners. One way to potentially bring your costs down could be to refinance your loan, to take advantage of the lowest interest rates recorded in Australia’s history. Is now a good time to refinance? We take a look. If you’ve lost your job, now is not the time to refinance, Canstar’s finance expert Steve Mickenbecker believes. However, if you are a “quality customer”, he notes it is possible that you could take advantage of some of the lowest interest rates banks have ever offered via refinancing. How much could I save on my … Continued
8 experts weigh in on smart things to do with your money during the COVID-19 outbreak
Many Australians are doing it tough as the economic impacts of coronavirus are beginning to be felt. While these are hard times financially for many people, there are some things that you can take charge of right now. With Australians advised to stay at home as much as possible, now could be the time to get on top of your personal admin and take steps to put yourself in the best financial situation you can. That’s why we called on eight finance experts to provide their recommendations. Check your home loan is still competitive The Reserve Bank of Australia (RBA) announced … Continued
Fixed rates hit record lows: Is now a good time to lock in your rate?
Tracking of average home loan interest rates on our database shows the lowest rates can be found on fixed terms. An expert reveals what to consider when locking in during a time of high uncertainty. Australians experienced many unexpected changes recently – the impacts of growing cases of coronavirus here and abroad, greater uncertainty in financial markets, economic assistance from the government and two cuts to the official cash rate by the Reserve Bank of Australia (RBA) in March. We also saw fixed home loan rates drop dramatically across the board last month, with Canstar’s database showing more than 1,300 decreases … Continued
Pausing mortgage repayments due to COVID-19: Does it impact your credit score?
If you have have been granted a six-month pause on your home loan repayments due to the coronavirus crisis, your credit rating will not be impacted, the Australian Banking Association (ABA) has announced. To support Aussies facing financial hardship as a result of the COVID-19 outbreak, many banks are offering up to a six-month pause on home loan repayments for eligible customers. Ordinarily any missed loan repayments (over 14 days late) would be recorded in a customer’s credit report and kept for 24 months as part of their repayment history information, according to CreditSmart. However, ABA CEO Anna Bligh this week … Continued
Commonwealth Bank slashes variable home loan rates before cash rate decision
Australia’s largest bank is not waiting on the Reserve Bank of Australia, deciding to cut some variable interest rates prior to today’s monetary policy meeting for new borrowers and some existing customers. Commonwealth Bank has changed its variable home loan rates. Have you compared your interest rate? Image source: Vitalii Tairov. The Commonwealth Bank cut some rates by up to 0.28 percentage points but increased some others by up to 0.12 percentage points, effective today. The changes came into effect just hours before the Reserve Bank of Australia (RBA) board was due to announce whether the official cash rate would remain … Continued
Reduce Home Loans slashes variable rates to record low
It was no April Fool’s Day gimmick – Reduce Home Loans has slashed its home loan rates further, introducing the new lowest variable rate on Canstar’s database. Non-bank lender Reduce Home Loans has surpassed all others on variable rates, including the four major banks, by lowering its Rate Slasher Variable home loan by 0.05 percentage points to the new record low of 2.39% (comparison rate 2.40%). The cheapest rate is available to owner-occupiers paying principal and interest who have at least a 20% deposit, but the loan is also available to borrowers with a 10% deposit, albeit at a slighter higher … Continued
Home loan interest rates slashed after RBA emergency rate cut | Updated List
For the second time this month the Reserve Bank of Australia (RBA) has cut the cash rate. Here is our list of banks who have reduced their rates in response to this emergency announcement, along with those who reduced their rates after the previous RBA rate cut on March 3. Source: Rawpixel.com To help ease the financial burden of the Coronavirus outbreak, the RBA pulled the trigger on an emergency rate cut on March 19, the first out-of-cycle reduction since 1997. The cash rate now sits at a record low of 0.25%. Banks typically use the official cash rate as a … Continued
ING cuts to market-leading home loan interest rates to help customers impacted by coronavirus
It’s officially a race to the bottom for home loan rates, with ING diving to among the lowest rates on our database for owner-occupier borrowers. How does your loan stack up? ING cuts fixed home loan rates in March 2020. Image source: Bjoern Wylezich, Shutterstock. Canstar has noticed home loan rates continue to fall at the major banks and a range of other lenders, following not one, but two cash rate cuts by the Reserve Bank of Australia in March, which were undertaken in an attempt to curb the economic impacts of the coronavirus pandemic. With the cash rate now at … Continued
NAB, ANZ and Westpac follow CBA in reducing home loans after RBA emergency rate cut
The Reserve Bank of Australia (RBA) cut the official cash rate to a historic low of 0.25% yesterday, the second cut in a month and the first out-of-cycle reduction since 1997. Source: Vitalii Tairov, Canstar. In a statement, RBA Governor Philip Lowe said the move was designed to help stabilise the economy, amid widespread disruption caused by the global COVID-19 outbreak. He said the cash rate could remain at 0.25% for some time, “until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3% target band”. Hot on the heels of the … Continued
How will coronavirus affect property prices in Australia?
It’s one of the most Googled questions since the coronavirus and COVID-19 outbreak: how will coronavirus affect house prices? Image: Andrey Popov (Shutterstock) The bottom line is it will be negative – prices will go down. People, up until now, have been talking about the property market developing a bit of momentum, with the interest cuts we had last year and the easing in credit conditions. But coronavirus has changed the story for 2020. Rate cuts and stimulus packages can only do so much The Reserve Bank cut rates soon after news broke of the developing coronavirus outbreak. On its own, … Continued
The suburbs where mortgage repayments may be cheaper than rent
Jeremy Sheppard from Select Residential Property crunched the numbers to find Australian suburbs where typical mortgage payments may be cheaper than paying rent. Four official interest rate cuts in the past nine months have brought historically low mortgage payments for property owners, creating a peculiar situation in some suburbs: rent payments could actually be higher than mortgage payments. And these aren’t in far-flung regions, they’re in some of our biggest cities. We have crunched the numbers to find areas where your mortgage repayments may be cheaper than rent. We have assumed you have enough money for a deposit – calculations have … Continued
Renting with friends: 5 ground rules to follow
Moving in with friends might seem like a great idea but to give yourself the best chance of success here are five things to agree on before signing a lease. If you’re considering moving into a rental property with friends, there are some simple rules of engagement to ensure you’re still besties at lease end. 1. Set up a roommate agreement For fans of the Big Bang Theory, a roommate agreement doesn’t need to be on the same scale that fictitious Sheldon Cooper foisted upon his hapless roomie Leonard Hofstadter. An agreement with many unfathomable clauses and subsections is probably overkill. … Continued
Big four banks to pass on RBA rate cut to borrowers
The official cash rate has been slashed to its lowest level on record – just 0.5%. Banks typically use this rate as a guide to set interest rates on their products, such as home loans and savings accounts. How have the big four banks reacted to the cut? Source: Vitalii Tairov, Canstar. Today, the Reserve Bank of Australia (RBA) cut the official cash rate by 0.25 percentage points, the lowest rate on record. It’s the fourth cut to the rate since June last year, when it was reduced from 1.5% to 1.25%. That June cut was the first change since … Continued
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