Home Loans - Page 40
Big four banks’ interest rate cuts criticised: How much will you save on your home loan?
The big four banks are lowering some of their home loan rates since the cash rate cut, so how much better off are you now? Canstar data shows which customers received the biggest monthly saving. However, there’s a sting in the tail – the majors have not passed on the full rate cut, despite pressure from the federal Treasurer. The Reserve Bank of Australia (RBA) lowered the official cash rate by 0.25 percentage points on Tuesday to a record low of 0.75%. Since then, Australia’s four largest banks – Commonwealth Bank, Westpac, ANZ and National Australia Bank – each announced they would … Continued
RBA cash rate cut: Where can you find home loans with interest rates below 3%?
How low can interest rates go in Australia? Since Tuesday’s cash rate cut, to a new record low of 0.75%, customers can now find more home loans with an advertised interest rate below 3% on variable or fixed rate terms from more than 40 lenders on our database. Typically, banks use the cash rate as a guide to set interest rates on products such as home loans. Canstar’s database shows variable interest rates on home loans have been slowly falling since the RBA brought the official cash rate down to 1% in July, after having cut it for the first time in three … Continued
October 2019 cash rate cut: Has Westpac cut interest rates?
All four of the nation’s biggest banks have now cut their home loan interest rates, in the wake of the Reserve Bank’s decision to slash the cash rate to 0.75%. How much did Westpac cut its home loan rates? Westpac bank announced this afternoon that it was cutting variable home loan rates by 0.15 percentage points, effective on 16 October, 2019: Owner-occupier, principal and interest variable home loan: Rate reduced by 0.15 percentage points to 4.83% p.a. for customers with principal and interest repayments (comparison rate to be advised by Westpac). Investor, principal and interest variable home loan: Rate reduced by … Continued
Has National Australia Bank reduced home loan interest rates?
Australia’s official cash rate was cut to 0.75% on Tuesday, setting off a wave of interest rate changes from a number of banks. What did National Australia Bank do? National Australia Bank sent out a media release at about 6.50pm AEST on Tuesday, saying it had reduced rates “across its variable home loan products”, applicable from 11 October: Owner Occupier Principal and Interest loans: dropping 0.15 percentage points to an advertised rate of 4.77% (comparison rate yet to be advised by NAB). Investor Principal and Interest loans: dropping 0.15 percentage points to an advertised rate of 5.37% (comparison rate yet to … Continued
Cut to the chase - RBA rate cut econo-speak decoded
As the Reserve Bank of Australia (RBA) makes yet another cut to the official cash rate, Aussies are bracing themselves for a further blizzard of financial and economic jargon in the news, as phrases like ‘macroprudential measures’ and ‘quantitative easing’ are tossed around like confetti at a wedding. To help you understand what’s really going on, we’ve unscrambled 10 of the terms that you may have been hearing. 1. Macroeconomic policy This is probably a good place to start. Macroeconomic policy is a phrase you may have heard this week from experts talking about how the RBA’s cash rate cut fits into the wider picture … Continued
RBA cash rate cut: But will your lender pass on the home loan rate relief?
Some lenders have already passed on today’s full cash rate cut to their customers. But most banks will resist further rate cuts for borrowers, one research group has warned. The Reserve Bank of Australia (RBA) Board voted to cut the cash rate by 0.25 percentage points at its October meeting today, bringing the rate down from 1% to 0.75%. RBA Governor Philip Lowe said the Board’s decision to lower the cash rate further was intended to support employment and income growth, and to provide greater confidence that inflation targets would be met. “The Board also took account of the forces leading … Continued
There could be a cash rate cut tomorrow, but are the experts on the money?
Many economists have forecast the cash rate could drop by 0.25 percentage points tomorrow, but others think it will remain unchanged. Only time will tell who is on the money. But one important group says cutting the cash rate could actually be detrimental to the economy. The Reserve Bank of Australia (RBA) is set to decide at its October board meeting tomorrow whether or not to cut the official cash rate from its current record-low of 1%, after successive rate cuts in June and July. All eyes will be on the RBA’s decision, given how recent cash rate movements typically impact … Continued
Will today’s generation of young people get their slice of the ‘Great Australian Dream’?
It turns out young people’s worries about housing affordability may not be exaggerated. New research shows 90% of millennials are concerned they won’t be able to afford to buy a home, but they are the generation that wants to the most. Would-be borrowers in Australia today face what some analysts have dubbed the “unholy trinity” of impediments to owning a house. Research shows millennials are struggling to save for a deposit, which could take more than 11 years for those who want to buy in Sydney (insipid wages growth doesn’t help there). Then they need to gain loan approval, at a … Continued
False hope: Do lower serviceability floor rates help borrowers?
Canstar analysis reveals the recent spate of announcements from lenders around changes to serviceability floor rates may actually be creating false hope for borrowers. As the race for customer market share during spring property season heats up, Westpac announced this week that it would lower its serviceability floor again, this time from 5.75% to 5.35% on 30 September, including for all its subsidiary banks – Bank of Melbourne, BankSA and St. George. The affordability – or “serviceability” – calculation is a test designed to see if people could afford to pay off their home loan if there was an interest rate … Continued
The surprising expenses that could cost you a home loan
So you like to eat out and buy your coffee because you can? Well, you’re certainly not alone. The latest Suncorp Cost of Food Report shows that the average individual spends close to $300 each week on food, or, put another way, the average income earner eats and drinks 25% of their yearly pay. Of that $300, almost half ($140) is spent on discretionary items such as takeaway, coffee, alcohol and food deliveries. Now what you choose to do with your money is entirely your business – unless of course you’re applying for a home loan. The question of whether lenders … Continued
Unemployment rate bounces, so will the RBA cut the cash rate in October?
The number of unemployed Australians has climbed higher, raising the question as to whether the Reserve Bank will be forced to cut the official cash rate again in another two weeks. The unemployment rate edged up to 5.3% in August – its highest level in just over a year – after 15,500 full-time jobs were wiped around the country, according to figures released today by the Australian Bureau of Statistics (ABS). The figures also revealed the number of people employed in a part-time capacity increased by 50,200. That all-important and rising unemployment rate of 5.3% – which represents the percentage of … Continued
Rental inspection checklist
Canstar's rental inspection checklist offers some pointers on where it may be helpful to focus your efforts for your next rental inspection.
Sold! The Block’s Nicole Jacobs talks strategies for buying at auction
Whether you’re a first home buyer, looking to upscale, downsize, invest, or simply move elsewhere, buying a home can be an exciting but challenging experience, especially if you’re unsure of where to start. The Block’s Nicole Jacobs, has shared her knowledge and advice on navigating the home-buying process in her book, SOLD! How to buy and sell your home with real confidence. Jacobs, who has worked in the property industry for 18 years, has been part of the team from The Block as a buyer’s advocate (otherwise known as a buyer’s agent) since 2014. Her book is intended to be a … Continued
What is a property price bubble?
Do we have a housing bubble in Australia at the moment? The Governor of the Reserve Bank, Glenn Stevens, struck a somber note in his recent address to CEDA, observing that the ratio of household debt to income went from about 60% in 1993 to 150% by 2006.
Westpac Group drops fixed loan rates to 'cutting edge prices' below 3%
It’s now possible to apply for a home loan with an interest rate fixed below 3% for five years at St. George Bank, Bank of Melbourne and BankSA. The subsidiary banks of Westpac have today lowered a number of rates by between 0.10% and 1.40% across their residential and investment fixed-rate loans, with changes applying to both standard and package loans. The lowest rates that dip below the 3% bracket apply to most of the Westpac Group’s fixed package loans, rather than their standard home loans. The lower cuts are only available for new loans at St. George and Bank of Melbourne, but are … Continued
‘Personal touch’ still valued in digital banking age
Is it crazy to be opening up more branches at a time when a number of other banks around the country are shutting them down and removing ATMs in an increasingly cashless society? One 80-something Gold Coast resident – who recently renovated four properties and sold his own home – doesn’t think so. Tam Kerr opened an account at customer-owned institution Heritage Bank in March this year. He has already said goodbye to his old accounts with one of the big four, and is slowly wrapping up his business with the other “mainstream banks”, as he calls them. Mr Kerr said … Continued
Cash rate on hold at record low 1%, but mortgage holders still under stress
While many Australian home loan borrowers have had the opportunity to benefit from cheaper interest rates since a total of 0.50 percentage points was shaved off the cash rate this year, the central bank has decided that’s enough… for now. The Reserve Bank of Australia (RBA) board voted to leave the cash rate on hold at the historic low of 1% today and indicated low interest rates would be required for some time. Since the cash rate was cut in June and again in July, mortgage holders may have had the opportunity to pounce on lower variable home loan rates, as … Continued
The Block 2019: Old hotels turned into stunning properties
The Block contestants are set for an action-packed new season of renovation dust and drama, this year updating a ramshackle space that’s twice as big as the largest property the show has tackled previously. And they only have $250,000 per couple to do it. When the first episode screened on Nine on Sunday, it was revealed that five couples would transform St Kilda’s 1850s-built Oslo Hotel. While it started life as a well-to-do row of houses, it’s now an abandoned former boarding house that’s in very poor shape. Vandals have ransacked the interior of the 460sqm property – walls are missing … Continued
How is the average Aussie household faring today?
In this present whirlwind of economic news, how is the average Australian faring? Financial news headlines shout that inflation is low, wage growth has been virtually stagnant and many savings accounts are bringing in considerably less than they were a few years ago. On the flip side, some people are feeling relief from historically low interest rates on home loans and a boost from tax cuts, following decisions taken by the Reserve Bank and Federal Parliament in the last couple of months. The nation is holding its fiscal breath, waiting to see if the cash rate will be cut again when … Continued
Getting a home loan from CommBank, NAB, ANZ, Westpac could now be easier
Qualifying for a home loan may have just become easier, after each of the big four banks relaxed one of their financial tests for hopeful home buyers. ANZ, Commonwealth Bank (CBA), National Australia Bank (NAB) and Westpac have now all announced they have moved to reduce the interest rate they use in affordability calculations during the home loan application approval process. The affordability – or “serviceability” – calculation is a test designed to see if people could afford to pay off their home loan if there was an interest rate hike. Until earlier this month, banks were required to apply an … Continued
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