Subscribe to be notified for updates: RSS Feed

HOLD ONTO YOUR HATS, THINGS ARE ABOUT TO GET A LITTLE BUMPY. ECONOMISTS FROM AUSTRALIA’S BIGGEST BANK ARE PREDICTING THE RESERVE BANK WILL RAISE THE OFFICIAL CASH RATE AS EARLY AS JUNE- AND WE’RE ALREADY SEEING FIXED INTEREST RATES INCREASE SIGNIFICANTLY.

Commonwealth Bank (CBA) economists have brought forward their forecasted Reserve Bank of Australia (RBA) cash rate hike from August to June, making it the earliest prediction amongst the big four banks.

We’ll go into more detail on why CBA has brought forward their prediction below, but first something a little more concrete: we’ve definitely noticed fixed rates trending up in recent months.

Fixed rate hikes
For example, back in November, for a $700,000 loan at 80% loan-to-value ratio, a two-year fixed rate with one particular lender was 1.84%.
That rate has since gone up to 3.04% – a staggering increase.
While not every lender has increased fixed rates so significantly, we are seeing them go up across the board.

So if you have been umming and ahhing about fixing your rate lately, you’ll want to get in touch with us sooner rather than later.
Because while most lenders have recently reduced their variable rates to compensate a little, with news now that the cash rate is being tipped to increase mid-year, you can expect variable rates to increase with the cash rate.

So why has CBA brought forward their forecast to June?
Ok, so back to CBA’s June cash-rate hike prediction and why they’ve brought it forward from August.

In a nutshell, CBA senior economist Gareth Aird is anticipating inflation to be a lot stronger than the RBA is forecasting.
As a result, Mr Aird believes this will lead to a rise in the cash rate to 0.25% at the June board meeting (currently it’s at a record-low 0.1%).
“We are very comfortable with our expectation that the quarter-one 2022 underlying inflation data will be a lot stronger than the RBA’s forecast,” explains Mr Aird.
And here’s the thing: it’s not the only cash rate hike CBA is predicting the RBA will make over the next 12 months.

Mr Aird is expecting a further three rate increases over 2022 to take the cash rate to 1%, with another move to 1.25% in early 2023.

That’s five cash rate hikes over 12 months!
Get in touch today to explore your options

Believe it or not, there are more than 1 million mortgage holders out there who have never experienced a rate rise (the last RBA cash rate hike was in November 2010).
And if the CBA’s prediction of five rate hikes over the next 12 months proves right, then some households will be in for a bumpy ride as they face hundreds of dollars in extra mortgage repayments each month.

So if you’re keen to act before the RBA increases the official cash rate, get in touch with me today. I would love to chat with you and help you work through your options in advance.

When it comes to smart money management, the key to success is to regularly assess your financial position – and that includes taking a good hard look at your mortgage. Here’s why refinancing every three years may help you save, and why you should check in with us today to ensure your home loan is still the right choice for you.
Refinancing every 3 years may help you to:

Secure a more competitive interest rate

Checking your home loan regularly gives you peace of mind that you’re getting the most competitive interest rate and that your financial needs are being met. With RBA rate movements, lender rate changes and new loan products coming onto the market all the time, it’s quite likely there’s a better option available if you’ve had your home loan for a while.

Access better features and save

A home loan health check is about reviewing your loan against your current financial situation and goals to ensure it still meets your needs and suits your objectives. As your circumstances change – perhaps you have a better job or have started a family since you took out your home loan – the loan features you need may change too. A different type of loan could potentially help you to save money and manage your finances better.

Access equity to build wealth

Accessing your equity could be a fantastic opportunity to build wealth for your future and refinancing to a new loan could allow you to do just that. If you’ve had your mortgage for a while, you’ve probably paid it down somewhat and your property could also have increased in value, so you may have some equity you could use to buy an investment property, or use to purchase shares or other investments.

You could also use the equity for other things you want. Perhaps you need a new car, a holiday, or would like to use the money to pay for your children’s education? Maybe you’d like to put the money towards some home renovations that could ultimately drive up the value of your property. Whatever your goals, we can explain whether refinancing and accessing your equity will help you to achieve them.

Consolidate debt

If you have several debts with high-interest credit facilities like credit cards or personal loans, you could potentially make things more manageable by refinancing and rolling your debts into your home loan. In this scenario, you’d access some of your equity and use it to pay off your other debts. The benefit is you only pay the home loan interest rate, rather than the higher credit card or personal loan rates – although your home loan repayments will likely rise somewhat, you could possibly make some savings if you make an effort to make extra repayments to pay back the amount you withdraw quickly. Talk to us and we’ll help you determine if refinancing to consolidate debt makes financial sense for you.

As your mortgage broker, we are experts at finding the right home loan to help you achieve your financial goals. We’ll check out your current home loan and if it no longer has that youthful vigor you need, see if we can find a better alternative! But first, we’ll nut out the figures and make sure refinancing is the right move forward for you financially. So if you’ve had your current home loan for three years or more, give us a call today for a home loan health check. We’d love to hear from you.How refinancing every three years could help you save

mortgage broker rockingham

Today’s mortgage market is extremely competitive. With so many new deals and loan features constantly becoming available, it makes sense financially to regularly give your home loan a health check. That way, you’ll be confident your mortgage is satisfying your needs and living up to expectations.

If you do suspect your home loan is in bad shape, don’t worry, we’re here to help. We’ll perform a home loan check-up for you and find you a healthy alternative if necessary. Here’s why refinancing every 2 to 4 years may be just what the doctor ordered.

Circumstances change

Over time, your financial situation may change and a mortgage that was a healthy choice several years ago, may be ailing today. It might lack the features and flexibility you need, or you may be paying for features you’re not using. Perhaps you’d like to access the equity in your property to renovate or invest, or could benefit from refinancing to consolidate multiple debts into your home loan to save on interest. You may have changed jobs and have more or less disposable income. Refinancing at least every 2 to 4 years gives you the peace of mind of knowing your finances are on track and your home loan marries with your current financial circumstances and goals. Allow us to remedy this situation by prescribing a tailored home loan that works for you in the long-run!

New opportunities

The finance and mortgage industry is constantly evolving, with new deals, packages and home loan features continually becoming available. By shopping around every 2 to 4 years, you may find a more competitive interest rate that cuts your repayments and potentially saves you thousands – money that would otherwise have been lost in an inefficient loan. As your mortgage and finance broker, we’ll take a holistic approach to your home loan needs, and advise you about features such as offset accounts or redraw facilities that could help keep your finances in tip-top shape.

To grow your wealth

It pays to keep a healthy attitude toward your finances. Reviewing your mortgage regularly keeps you focused about where you’re at financially and where you’d like to be. It may open your eyes to new strategies to proactively build your wealth and expand your investment portfolio. Refinancing can also allow you to access the equity in your home to invest, renovate, go on holiday or use as you see fit.

If you suspect it might be time for your current home loan to meet its maker, please get in touch! We’ll give your home loan a thorough check-up – minus the stethoscope – and find you a healthier alternative if necessary. While we are specialists at what we do, there are no hefty consultation fees involved – your home loan health check is a free service. Call us, your helpful “mortgage medics”!

mortgage  broker rockingham
As we head into the Easter long weekend, activity in the national housing market continues to ramp up. Home prices in Australia’s biggest cities have jumped 3.7 per cent since the start of the year and Melbourne and Sydney continue to lead the way, with strong property price growth and high auction clearance rates.

Last month saw notable growth in home values in Darwin and Hobart, and while we continue to see a two-speed market across the country, there are some great investment opportunities out there.

Interest Rate News

This month, the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold again at 1.5 per cent. The decision follows an announcement by the Australian Prudential Regulation Authority on Friday 31 March that financial institutions restrict new interest-only property lending to 30 per cent of their total residential mortgage lending, in a bid to manage heightened risks in the property market.

Many lenders adjusted rates outside of RBA movements this month and raised rates on both owner-occupier and investment loans. They increased rates on both variable and fixed-rate products. That makes it more important than ever to stay on top of your home loan interest rate. Check in with us and we’ll compare hundreds of different home loan products to find the right one for you.

Property Market News

Bidders are continuing to snap up properties at auction, with high clearance rates last week in Victoria, NSW, South Australia and the ACT. For the week ending April 2, Victoria had 1231 auctions, with a clearance rate of 80 per cent, while NSW held 1284 auctions, with a clearance rate of 78 per cent. South Australia and the ACT both had clearance rates of 76 per cent, while things were quieter on the auction front elsewhere.

In March, home values increased in all capital cities, with the biggest percentage changes month-on-month in Darwin (3.07%) and Hobart (3.06%). Darwin’s year-on-year home values dropped 4.41%, while Hobart’s increased 10.24%. Melbourne home values increased 1.92% month-on-month and 15.93% annually, while Sydney’s home values were up 1.41% month-on-month, and a massive 18.88% year-on-year.

Meanwhile, the proportion of total housing finance commitments to owner-occupier first home buyers is at an historic low. Talk to us to see how you can take advantage of recent improvements to the First Home Buyer Grant to get into the market sooner.

With interest rates remaining low, now is a great time to buy your first home, invest or consider refinancing. We’ll find you the right home loan to suit your personal needs and goals, potentially saving you thousands in the long-run. Call us today!

How to Spot a Good Fixer-Upper
Buying to renovate and sell can be a lucrative investment strategy, allowing investors to potentially make a fast profit with minimal effort and expense. However, the key is to find the right fixer-upper – one that gives you a maximum increase in value for minimal expenditure. Cha-ching!

As your mortgage and finance broker, we love to pass on juicy tips that ultimately help you to use your property investment dollars wisely. So, how do you spot that diamond in the rough that will become your renovation goldmine? Well, it takes a good deal of detective work, a resourceful imagination and some logical reasoning when it comes to renovation spending. Right, time to channel Sherlock, folks!

Step 1: Narrow down your leads

Finding the right location is paramount for any property purchase. The aim is to target run-down properties in suburbs with solid growth potential. Ultimately, the property should be close to amenities such as schools, shops and public transport, but not so close to the train line that the front door rattles all night long!

If you’re buying for investment purposes, always remember your end-goal, which is to sell post-renovation. Research what’s in high demand in areas you’re interested in, as well as the value of renovated properties in the suburb. Searching for phrases like “renovator’s dream” and “deceased estates” in real estate advertisements will narrow down your options.

Step 2: Follow the clues and do your detective work

When you find a potential fixer-upper, you need to quickly develop a keen eye for detail. Research the neighbourhood thoroughly and investigate any external issues that could affect your investment. Is the area flood-prone? Is there a high crime rate that could impact upon liveability? Is there noise pollution? Lastly, consider any legal or heritage restrictions that could put a dampener on your renovation goals.

Once you have ruled out potential external glitches, it’s time to concentrate on the finer details and test out your powers of observation. Is the structure sound and are the roof, walls, doors and windows in good condition? Are the foundations strong? Are there any issues with the electrics and plumbing of the property? The last thing you want is to be paying through the roof for non-cosmetic upgrades. It’s a good idea to invest in a pre-purchase building inspection and study it with your trusty magnifying glass.

Step 3: Consider different scenarios and mastermind your makeover

Warning: this may require a good deal of imagination! Being able to overlook retro linoleum floors and garish wallpaper can be tricky, but keep in mind the golden rule of renovation: minimal effort, maximum returns. Cosmetic enhancements that will drive up the value of the property are what you want. Flaky paint, scruffy carpets, old cupboards and dated bathroom fixtures can all be upgraded with minimal effort and cost. Many experts recommend seeking out properties with older bathrooms and kitchens that can easily be renovated.

Also, it’s a good idea to consider the layout and convertibility of the property. Can you add value by playing with the dimensions? Can you knock down walls to create a more open-plan living space, or add walls to create new rooms? Can a puny window be transformed into a spectacular natural light portal? How could you revamp the garden?

A good sleuth knows when to trust their instincts, and if your gut is telling you you’ve found your fixer-upper, it’s time to speak to a reputable mortgage and finance broker like us about how to finance your property purchase and renovations.

Step 3: Close the case

Our final tip is to make sure you stay within budget once you’ve found your renovator’s dream. Don’t overspend on improvements, but don’t skimp on quality either. Spend time and money on renovations that will give you the best return on investment and make the property stand out to prospective buyers.

We hope you’ve found these tips for spotting a good fixer-upper handy. We can provide expert advice about obtaining finance for your property investments and renovations. We’ll analyse the thousands of home loan products out there and test them under our microscope to ensure they measure up. Please get in touch with our team today.

 

 


1 2 3 4
Copyright 2016