As expected, the Reserve Bank of Australia (RBA) increased the official cash rate by 0.25% to 0.35%. The RBA also increased the interest rate on Exchange Settlement balances from 0% to 0.25%. This is the first cash rate hike in more than a decade and comes after core inflation grew by 3.7% over the year…

The big four banks have forecast that the Reserve Bank will begin lifting the official interest rate from June 2022. If and when that happens, lenders will most certainly increase their home loan rates. With speculation rising, many clients are questioning whether they should fix all or part of their loans. There are pros and…

Most mortgage holders will be able to cope if and when interest rates start rising. That’s one of the findings from the Reserve Bank of Australia’s (RBA) latest half-yearly Financial Stability Review. Between February 2020 and February 2022, many borrowers built up big repayment buffers, by paying extra money into their offset and redraw accounts.…

The federal government has expanded its support to first home buyers and single parents, and has also released a new program for regional buyers. The First Home Loan Deposit Scheme and New Home Guarantee, which currently support a combined 20,000 first home buyers per financial year, will now support 35,000 per year from July 1.…

National residential construction costs increased 9.0% over the 12 months to March 2022, according to CoreLogic’s Cordell Construction Cost Index. That was the highest annual growth rate on record apart from the introduction of the GST in 2001, and means Australians are having to pay significantly more to build or buy new homes. “Timber costs…

Lenders are competing fiercely for new customers and are offering a little something to win your business. Conditions apply, of course: Available to Australian residents aged 18+ Refinancing an existing home or investment loan from another bank Minimum loan amount of $500k Maximum loan-to-value ratio (LVR) of 80% Must open savings account with same bank…

Mortgage brokers accounted for 66.5% of all new home loans in the December Quarter, according to the latest data from research group Comparator. This is a record result and proves a solid upward trend of customer choice, favoring the 3rd party broker channel over direct to bank. This December Quarter record succeeds previous highs of…

As expected, the Reserve Bank of Australia kept the cash rate on hold at its April board meeting, with very few commentators expecting a rate hike ahead of the federal election. With inflation increasing, it is possible the Reserve Bank will start increasing the cash rate later this year, from its current record-low level of…

The official data confirms anecdotal evidence – property investors are very active right now. Property investors took out $33.7 billion of home loans in January, according to the Australian Bureau of Statistics, marking the second consecutive month in which investors set a borrowing record. To illustrate how investment activity has surged in recent times, investors…

When it comes to classifying debt as either ‘good’ or ‘bad’, borrowing to fund your education or buy a property are generally regarded as good debt, because both tend to deliver a return on investment. However, you may not realise that HECS-HELP debt may reduce your borrowing capacity when it comes time to applying for…

Buying a typical house will now cost almost 30% more than buying the typical unit. CoreLogic has reported that, at the end of February, Australia’s median house price was 29.8% higher than its median unit price – a record gap. To put it in dollar terms, median house prices are $791,400 and $609,800 for units,…

The Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at the historic low of 0.10% at the board’s March monetary policy meeting. The RBA’s last rate hike was more than a decade ago, in November 2010. While the central bank held fire today, there has been rising speculation it might…

The Reserve Bank has said it will increase the cash rate at some point. When that happens, banks will almost certainly raise their mortgage rates. So what can you do to prepare? Here are five tips: Calculate how much your repayments would increase if your home loan rose by anywhere from 0.25 percentage points to…

Supply chain shortages that have affected so many industries have hit property as well, with residential construction costs rising at the fastest annual rate since 2005. Home building costs rose 7.3% in the 2021 calendar year, according to CoreLogic’s Cordell Construction Cost Index (CCCI). That said, the pace of growth might be trending down, with…

First home buyers can now save their deposit even faster, after the First Home Super Saver Scheme savings threshold was increased from $30,000 to $50,000. First home buyers can now save their deposit even faster, after the First Home Super Saver Scheme savings threshold was increased from $30,000 to $50,000.The scheme lets first home buyers…

Home loan activity reached a record high in December, according to the latest data from the Australian Bureau of Statistics, in a sign the property market remains strong. Australians committed to $32.8 billion of mortgages in December, which was 4.4% higher than the month before and 26.5% higher than the year before. Here’s a breakdown:…

Australia’s property market enjoyed extraordinary growth during 2021, but a city-by-city breakdown shows that different markets are at different stages of their cycle. Looking at a basket of all Australian homes, the median price increased 22.1% last year, according to CoreLogic. Here’s a look at each capital city: Sydney’s monthly growth rate peaked at 3.7%…

There’s a house building boom going on right now, partly because of the now-concluded HomeBuilder incentive and partly because interest rates are so low. Building work started on a record 149,345 new detached houses in the year to September 2021, according to the latest data from the Australian Bureau of Statistics. If you’re planning to…

With rents climbing steeply in many parts of the country, 2022 might be the ideal time for younger Australians to enter the market. The average rent paid by a tenant living in a capital city was 7.4% higher in the December quarter of 2021 than the same quarter of 2020, according to Domain. So if…

Home loan activity is at historically high levels, according to the latest data from the Australian Bureau of Statistics. Australians committed to $31.4 billion of home loans in November, which was 6.3% higher than the previous month and 33.2% higher than the previous year. Owner-occupier borrowing was up 7.6% on the month and 17.2% on…

The Reserve Bank of Australia (RBA) has left the cash rate on hold at its first monetary policy meeting of the year. The move comes as no surprise, as the RBA has repeatedly said it won’t increase the cash rate until underlying inflation is sustainably within the 2–3% target range. The central bank does not…

In the September quarter, mortgage brokers originated a record 66.9% of all new residential home loans, according to research group Comparator. This compares to a market share of 60.1% the year before. Why is the broker market share growing so strongly? One reason is value. When you go directly to a bank, you will only…

Over the year to October, the average Australian home loan increased 16.4%, according to the latest data from the Australian Bureau of Statistics. Loan amounts increased in every state and territory, as the graph shows. Obviously the amount of money you borrow is very important but so is the share of money you borrow compared…

An extra 4,651 first home buyers will be able to access federal government assistance during the 2021-22 financial year. The government had originally pledged to support 20,000 first home buyers this year – 10,000 under the First Home Loan Deposit Scheme and 10,000 under the New Home Guarantee. Now, the government has added an extra…

More property listings are coming onto the market, which should give buyers more choice in 2022. In November another 96,346 properties were listed for sale, according to SQM Research. This was 2.3% higher than the month before and 20.4% higher than the year before. While there has been a significant increase in new listings, there…

You might not realise that lenders often charge lower interest rates to new borrowers compared to existing customers. Over the past year, as the graph from the Reserve Bank of Australia shows, this gap has widened. Back in October 2020, owner-occupiers who took out new variable loans were charged an average of 0.32 percentage points…

Investor borrowing has increased for 11 consecutive months, according to the most recent data from the Australian Bureau of Statistics. During those 11 months, the value of investment loans have jumped from $5.1 billion in October 2020 to $9.6 billion in September 2021 – an increase of 87.5%. The September result was also the second-largest…

Australian’s have built 1.02 million homes between the 2016 and 2021 financial years – a significant increase on the long-term average, which has typically seen approx. 750,000 dwellings completed during a five-year period. Over the past 12 months, 231,816 residential building approvals have been issued, suggesting many new homes are in the pipeline. That said,…

For the past year, the cash rate has been at a record-low 0.10%, with the Reserve Bank using ultra-low interest rates as a way to stimulate the economy during the pandemic. But what will happen if and when the Reserve Bank raises the cash rate? Will it lead to a downturn in the property market?…

Refinancing is attracting a lot of attention right now, as speculation builds about the Reserve Bank increasing the cash rate in 2023 or even 2022. Australian Bureau of Statistics data shows that refinancing activity is at near-record levels. In recent weeks, a host of lenders, including all of the big four banks, have increased their…

In its last monetary policy decision of the year, the Reserve Bank of Australia has left the cash rate at a record-low 0.10%. The RBA expects the economy to expand by 3% this year, despite the lockdowns that occurred from June to October. Growth is then expected to accelerate to 5.5% in 2022.. Strong growth…

Lenders are competing fiercely for new customers and are offering a little something back to win your business. Conditions apply, of course: Available to Australian residents aged 18+ Refinancing an existing home or investment loan from another bank Minimum loan amount of $250k Maximum loan-to-value ratio (LVR) of 80% Must open savings account with same…

As was widely expected, the Reserve Bank of Australia (RBA) has kept the cash rate at a record-low 0.10%. It has now been exactly 12 months since the RBA last moved the cash rate – which was a cut of 0.15 percentage points. The next move in the cash rate is almost certain to be…

Australia’s banking regulator, APRA, has introduced new lending rules that will reduce the maximum amount some people can borrow. When you apply for a mortgage, lenders are required to assess your ability to repay the loan at the actual interest rate plus a interest rate buffer. Previously, the buffer rate was a minimum of 2.50%…

According to Domain, house rents have climbed strongly in many parts of Australia and unit markets have enjoyed strong growth in selected areas. Over the year to September, capital city house rents increased by an average of 5.5% and 6 capital cities experienced double-digit growth. During the same period, capital city unit rents decreased by…

The use of buy-now-pay-later services has surged in recent years, more than doubling between 2018 and 2021, according to Roy Morgan. Meanwhile, credit cards are also being heavy used by many Australians. While both buy-now-pay-later services (BNPLS) and credit cards have many pros, some may not realise the negative impact these credits services may have…

New data from the Australian Bureau of Statistics has revealed the winners and losers from the widespread lockdowns that occurred in July and August. Accommodation & food services suffered the biggest fall, with the industry experiencing a 16.6% month-on-month decline in turnover in July and then another 6.5% decline in August. Construction (-2.9% and -0.1%)…

Borrowers are increasingly turning to brokers when seeking a new home loan and the numbers don’t lie….. In the June21 quarter, Mortgage brokers settled 59% of all new home loans – a new record market share result for the broker channel. That compares to a market share of 57% in the June20 quarter. Last year…

Interesting new data sheds light on the eternal debate over whether to have a variable or fixed home loan. Reserve Bank of Australia data for August shows owner-occupiers on three-year fixed loans were paying, on average, 1.26 percentage points less than those on the discounted variable rate. However, as the graph shows, these things move…

Almost 598,000 residential properties were sold in the year to August, which is the highest number of annual sales since 2004, according to CoreLogic. The August result was 42% higher than the year before and 24% higher than the 20-year average. Six states and territories recorded sales volumes above their 20-year average: QLD = up…

The Reserve Bank of Australia (RBA) has kept the cash rate at a record-low 0.10%, as the overwhelming majority of commentators expected. Throughout this year, the RBA has said repeatedly it will not increase the cash rate until underlying inflation is within the 2–3% target range. The RBA said this is unlikely to happen until…

Have you been squirreling away money during the latest round of lockdowns? If so, join the club. Australian households have been saving an average of 9.7% of their income, according to the most recent data. However, the Reserve Bank has forecast the savings rate will increase to approximately 15% by the end of September. Part…

Attention property investors: if your home loan is more than a couple of years old, there’s a good chance your interest rate is too high. According to the most recent Reserve Bank of Australia data (July21), investors with existing loans were charged significantly higher interest rates than investors with new loans. On average, investors with…

The Reserve Bank of Australia’s board (RBA) announced the cash rate is being held at 0.10%, where it has been since November 2020. The move was widely anticipated, as the RBA’s board has said they do not expect to increase the cash rate until inflation is within the 2-3% target band. This is not expected…

Do you want to make your home more sustainable? If so, you might be interested in taking out a ‘green loan’. A range of lenders now offer special loans for borrowers who want to finance home improvements such as: Installing solar panels Installing water tanks Adding insulation Adding double glazing to the windows Doing renovations…

Properties are being removed from the market faster than they’re being added, which is pushing up demand and prices, according to CoreLogic. Between May and July, 1.4 homes were sold for every 1 new listing added to the market. Supply and demand are in balance when the number of sales matches the number of new…

The Australian Taxation Office has reminded property investors to beware of common tax traps that can delay refunds or lead to an audit. The most common mistake investors make is failing to declare all their property income, including capital gains from selling an investment property, according to the ATO. Other common mistakes include claiming for…

First home buyers have been drifting out of the market, while investors have been piling in, according to the most recent data from the Australian Bureau of Statistics. June was the fifth consecutive month in which the share of first home buyer loans fell, compared to the overall market. At the same time, June was…

The Reserve Bank of Australia (RBA) announced the cash rate will remain unchanged at 0.10% after its monetary policy meeting today. This marks the eighth consecutive meeting at which the cash rate has been held at its historic low. The RBA has repeatedly maintained the cash rate is unlikely to rise before 2024, when it…

As many parts of Australia have returned to lockdown over the past few weeks, lenders have offered home loan relief to borrowers who may have been affected. Some borrowers may be eligible for deferrals on their mortgage repayments: All borrowers can apply for a mortgage pause, regardless of geography or industry Deferrals are being decided…

This is a great time to be a property investor, with tenants being forced to compete hard for rental properties, according to new data from SQM Research. The vacancy rate (the share of untenanted rental properties) fell in every capital city, except Melbourne, between June 2020 and June 2021. The harder it is for tenants…

New analysis from CoreLogic has found that buying a property is cheaper than renting for 36.3% of homes across Australia. This is an improvement on the last time this analysis was conducted in February 2020, when it was cheaper to buy than rent 33.9% of homes. ‘Cheaper to buy’ means it takes less money to…

Keen to get your hands on a tax refund? Well, the Australian Taxation Office has revealed the number one problem that slows down the process. ATO assistant commissioner Tim Loh said some Australians are in such a hurry they file their taxes before they’ve got a complete picture of their income for the previous financial…

Until now, residential self-managed superannuation fund (SMSF) loans have been a poorly serviced segment with limited options and difficult approval processes. A new streamlined product has just been launched, promising low costs and low interest rates. The current interest rate for the new SMSF residential loan starts from just 4.75% p.a. – variable or fixed.…

The ACCC’s Home Loan Price Inquiry found that consumers who do not regularly review their home loans could be paying too much. The interim report also stated that a lack of price transparency makes it difficult for consumers to compare home loans. The report goes on to state that consumers with existing home loans should…

In line with expectations, the Reserve Bank of Australia (RBA) kept the cash rate at 0.10% at its sixth monetary policy meeting this year. RBA Governor Dr Philip Lowe has repeatedly maintained that the cash rate will not change until inflation is sustainably within the 2-3% target band. “For this to occur, the labour market…

On November 3rd 2020, the Reserve Bank of Australia has slashed the official cash rate by 0.15% to a record low 0.10%. With historically low interest rates and cash back offers from a number of lenders, now is a perfect time to consider your options. So how does your home loan rate compare?  Click here and…

The Federal Government has announced a new stimulus initiative with the HomeBuilder Grant. The package provides a $25,000 cash grants to renovate your property or build a new home. Here are the details: Duration Applies to building contracts that were signed between 4 June 2020 and 31 December 2020. Eligibility Minimum of 18 years of…

We hope you and your families are well and please know we are here to assist in all matters financial. As a consequence to the Australian Government’s measures to control the spread of COVID-19, many people are feeling the effects of reduced income. This is creating concern, particularly those with home and business loans. The…