Australian Home Loans News

Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.

Thu, 16 August 2007
Non-bank lenders set to increase rates above RBA
HOMEOWNERS already feeling the squeeze after last week's interest rate rise could face further pain after the current global lending crisis yesterday reached Australian shores. Aussie Home Loans boss John Symond today today said increases in the cost of borrowing on international credit markets could force Australian home lenders to charge higher interest rates, regardless of moves by the Reserve Bank of Australia (RBA).

Sun, 19 August 2007
Market volatility 'bordering on irrational'
RESERVE Bank of Australia Governor Glenn Stevens today said the recent volatility on global markets was "bordering on the irrational". Speaking before a House of Representatives committee sitting on the Gold Coast, Mr Stevens said he was not overly concerned about the sub-prime crisis gripping the United States.

Tue, 04 September 2007
House prices rebound strongly
ADELAIDE has led a housing market rebound that has seen house prices Australia-wide increase 6.6 per cent in the first half of 2007. The 11.6 per cent price increase for the city of churches was followed by a 10.6 per cent rise for Brisbane and a 7.9 per cent increase for Melbourne. While nationwide house prices increased 6 per cent, the unit market performed even better with an 8.5 per cent rise, according to a survey conducted by researchers RP Data and financial group Rismark.

Thu, 13 September 2007
Australian home loan market slumps as buyers hold off
Australian homebuyers fled the home loan market in July, even before the August interest rate hike was confirmed. The total value of new housing loans sank by 7.4% to $22.54bn according to the Australian Bureau of Statistics. The value of owner-occupied housing loans plunged by 7.7% while investment loans dropped by 6.8%. The number of fixed rate loans also fell significantly to 14.8% in July from 17.0% in June.

Fri, 05 October 2007
RAMS Dives Despite Westpac Deal
Shares in RAMS Home Loans Group Ltd (RHG.AX: Quote, Profile , Research) fell a further 27 percent on Wednesday on fears the Australian mortgage lender, hit by the U.S. subprime market crisis, will struggle to refinance its debts despite securing support from a major bank.

RAMS agreed to sell its brand and distribution business to Australia's Westpac Banking Corp (WBC.AX: Quote, Profile , Research) for A$140 million ($124 million) on Tuesday and sold A$300 million of mortgage-backed bonds on Wednesday to allow it to continue writing home loans until Westpac takes over new business from Nov. 14.

Westpac, Australia's fourth-largest bank, also agreed to refinance A$1.5 billion of RAMS' debt, but is not taking on its existing mortgage book.

Traders and fund managers said there was still concerns RAMS may not be able to cover more than A$4 billion of debt it still needs to refinance in the syndicate loan market until February.

"There's not much of a business left if you think about it," said Eric Betts, equities strategist at Nomura Australia.

"It's a business basically that it is going to service a few loans, contingent on getting the funding of course. Prospects aren't fantastic."



Thu, 18 October 2007
Tax cuts a godsend for property investors
The Howard government's proposed $34bn package of tax cuts is likely to benefit low income earners looking to get a head start entering the housing market, according to an industry body.

The Real Estate Institute of Australia (REIA says this extra cash in pocket can be contributed towards extra or higher mortgage repayments to reduce the principal, thus enabling buyers to pay off their mortgage sooner. Alternatively, the money can be funnelled into a high interest savings account for use towards a future investment deposit. A negatively-geared investment property will slice off even more taxable income, resulting in buyers being liable for less tax.

Whilst many experts believe the tax cuts may boost household spending that could result in higher inflation numbers, the REIA says the phased approach to tax cuts will save homebuyers and investors money by minimising the risk of interest rate pressure, thereby keeping mortgage repayments at bay.

However, while most Australians are expected to greet this new tax regime with open arms, political parties have been encouraged to also revise business taxes to cultivate stronger business confidence and productivity through industrial relations reform and retention of unfair dismissal exemptions for small businesses.



Fri, 02 November 2007
Is it time to refinance to a fixed rate home loan?
The Reserve Bank of Australia (RBA) is expected to raise rates again next week after the latest Australian inflation numbers showed a solid increase in the September quarter. With more home loan interest rate hikes expected in the near term, the big question now is whether mortgage borrowers should take the risk of higher rate repayments or bite the bullet of paying premium on fixed rate home loans.

Wed, 07 November 2007
Rents tipped to rise after interest rate hike
RENTS are tipped to rise on the back of today's interest rate hike, adding to the pain already felt by those on lower income who can't afford to buy a home.

The Reserve Bank of Australia has raised the official cash rate by a quarter of a percentage point to 6.75 per cent and mortgage rates are expected to follow within days.

Property investment firm Braxton Chase said the rate hike would trigger widespread rent increases as demand for residential property grows and landlords move to recoup growing loan costs.

For landlords to cover the extra cost, rents on properties worth $300,000 would need to rise by about 4.8 per cent, or $12 per week, assuming weekly rent of $250, Braxton Chase chief executive Andrew Donnelly said.

Fri, 09 November 2007
Fixed rate loans soar ahead of November rate rise
While this week’s 0.25% rate rise has worried many property buyers, it’s provided some relief to those who have chosen to fix their Australian home loans.

Fri, 16 November 2007
Melbourne set to become Australia’s largest city
Sydney looks set to lose its title as Australia's biggest city if the latest growth trend continues, a new report revealed.

According to KPMG's Population Growth Report 2007, Melbourne is drawing in nearly double the population growth attracted in Sydney, with 62,306 added in the months to June 2006 compared to Sydney's 36,823. This equates to 1.7% growth to 3.74 million - bridging the population gap to only 540,000 residents.

Gold Coast defended its position as the fastest growing area in the country with a net population increase of 17,374 over the past 12 months to June 2006. Sea-changers have also flocked into other Queensland coastal regions which helped seven of its coastal towns make it to the top ten fastest growing towns in Australia.

The resource boom in Perth and Adelaide had attracted a large number of new residents with Perth gaining 2.2% - the fastest rate of population growth among state capitals whilst Adelaide's population climbed by 11,542.

Fri, 16 November 2007
Boost your profits through holiday-let properties
Holiday properties are often considered risky compared to standard residential investments due to their inconsistent and unpredictable income. However, that risk is often balanced by higher returns and the lifestyle benefits that come with the opportunity to enjoy the holiday property themselves according to Your Investment Property magazine.

The tourist and accommodation property sector has performed very strongly in 2007 - experiencing record highs after several years of sluggish growth.

Fri, 07 December 2007
Unit values jump 15%
Unit prices are rising faster than houses as buyers seek out affordable properties, according to the RP Data-Rismark Hedonic Index report.

Mon, 07 January 2008
ANZ loan rates up
Future ANZ home loan customers are facing higher rates, with fixed rate home loans going up a quarter of a percentage point.

ANZ bank is the second to raise mortgage rates after last week's move by the NAB to hike its variable rate mortgage.

The Commonwealth Bank and Westpac haven't decided whether or not they'll need to move but both say their rates structures are under review.



Thu, 06 March 2008
Adelaide Bank lifts rates after RBA decision
The Adelaide Bank has become the first institution to respond to yesterday's rise in official interest rates.

The bank is increasing the wholesale cost of funding which it charges its 35 mortgage managers and brokers around Australia.

The bank expects about 30,000 customers of its mortgage brokers to be affected by the rate rise

It has decided to lift the wholesale rate from next week by 0.4 of a per cent, which is a substantially bigger rise than the Reserve Bank's increase to the official cash rate.

Until now the Adelaide Bank has not lifted its rates above the Reserve Bank's increases, like other banks have.

But the head of Wholesale Mortgages, Tim Piper, says the extra costs from the global lack of credit have become too much.

"We're trying to work our way through what is probably one of the most difficult periods I've ever seen in the financial markets," he said.

An Adelaide Bank representative says the increase can be expected to be passed on to home-buyers.

Source: ABC News

Sun, 25 May 2008
Homes remain out of reach for many
Would-Be home owners are still being squeezed by rising inflation and interest rates, with a key affordability index touching another record low.

Sydney and Hobart were the only major cities to record an easing of conditions in the first quarter of the year, with Brisbane and Canberra the worst places for affordable housing.

"A surge in interest rates in the first quarter of 2008, combined with complex planning laws and exorbitant property charges and taxes, have contributed to yet another record low for housing affordability," said Housing Industry Association chief executive Chris Lamont yesterday.

He said the Government needed to add affordable housing to its infrastructure policy agenda. "This should be the number one priority for Infrastructure Australia," Mr Lamont said.

"The cost of planning and development charges is worthy of urgent attention, as are chronic skills shortages, which are adding to price and supply pressures."

Interest rate rises in the first quarter of the year have raised the average home loan payment to $2799 a month, up 4.4% on the previous survey.

The HIA-Commonwealth Bank First Home Buyer Affordability Index went down 3.5% in the quarter, 10% lower than a year ago.

Mr Lamont said the conventional strategy for first home owners of renting while saving for a deposit was becoming more difficult, with rising prices making significant inroads into family budgets.

SOURCE: Katharine Murphy - The Age

Wed, 29 October 2008
Aussie cuts variable interest rate
Aussie Home Loans moved to lower its variable interest by 50 basis points - representing a saving of $125 a month on a $300,000 mortgage...



Tue, 04 November 2008
First home owner grant 'to boost demand'
The first home owner grant increase will help Australia's housing shortage and boost the market, the federal government says

Tue, 11 November 2008
Rams Home Loans drops mortgage ratea
Rams Home Loans (Rams) has dropped the interest rate on its standard variable home loan.The interest rate on Rams' standard variable home loan has dropped 0.6 percentage points to 7.59 per cent, while the interest rate on Rams' basic home loan is now 6.99 per cent...



Tue, 18 November 2008
Govt buys mortgage-backed securities
The federal government has bought its first tranche of troubled residential mortgage-backed securities (RMBS), in a bid to boost competition in the non-bank home lending market...

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