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While interest rates have increased significantly over the past 18 months, this increase, thankfully, has been less than one might have expected, due to competition, according to the Reserve Bank.Between April 2022 and September 2023, the cash rate increased by 4.00 percentage points. However, banks increased their variable rates by, on average, only 3.32 points for owner-occupiers and 3.28 points for investors. This was due, in part, to “the effect of competition between lenders on variable-rate housing loans”. Meanwhile, banks’ funding costs increased further between the June and September quarters, which is likely to lead to higher interest rates and more pain for households.The increase in funding costs came “as banks replaced maturing bonds issued at much lower rates and average deposit rates increased”.Banks generally ‘buy’ funding on the wholesale market, add a margin and then on-sell this money to borrowers in the form of home loans (and other loans). So when banks' funding costs increase, they generally have little option but to increase rates as well.Want to compare interest rates? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Why interest rates have climbed

A new report from CoreLogic has found that median property prices increased in 82.4% of local markets in the three months to October, based on a sample of 4,506 suburbs across Australia.That included price increases in 83.1% of house markets and 80.6% of unit markets.Focusing just on house markets, prices increased in:Perth - 99.7% of suburbsAdelaide - 99.0%Brisbane - 98.7%Sydney - 91.4%Melbourne - 80.8%Canberra - 71.1%Hobart - 59.1%Darwin - 59.1% CoreLogic's head of research, Eliza Owen, said many housing markets across the country were growing, despite high interest rates and weakening economic conditions.“It’s often noted that Australia is not ‘one housing market’ and we’re currently seeing increased diversity in capital city market performance,” she said.“That’s reflected in city-wide growth rates, the various levels of supply that’s available in some cities over others, and it’s reflected in the different suburbs we analyse in this report."Reach out if you want to refinance.Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Property market keeps growing despite high interest rates

The great transition of the mortgage market, from having a heavy share of fixed-rate loans to now being dominated by variable-rate loans, has gathered pace, according to Reserve Bank data.During 2020 and 2021, when interest rates fell to record-low levels, enormous numbers of borrowers took out two-year and three-year fixed loans at very low interest rates. Many of those loans then expired as rates started rising, meaning that many borrowers have been reverting from ultra-low fixed rates to significantly higher variable rates. “The fixed-rate share of total outstanding housing credit declined to 22% in September, well below its peak of just under 40% at the start of 2022,” the Reserve Bank reported in its recent Statement of Monetary Policy.Over recent months, the number of fixed loans that have expired have outweighed the number of new fixed loans that have been initiated, by a ratio of more than five to one.“Most of the remaining fixed-rate loans are expected to expire by the end of 2024,” according to the Reserve Bank.Reach out if you want to refinance Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about The share of fixed-rate loans continues falling

There's been a big rise in home loans activity over the course of the year, with investors leading the way.Between February and September, the total volume of mortgage commitments rose 9.5% to $25.0 billion, according to the latest data from the Australian Bureau of Statistics.Owner-occupied borrowing climbed 6.1% to $16.1 billion, while investor borrowing jumped 16.0% to $9.0 billion. Three other key facts:The number of loans taken out by owner-occupier first home buyers increased significantly between February and September, rising 18.4% to 9,213 loans.Refinancing with external lenders fell 7.1% to $18.5 billion, although that figure was still well above the long-term average.Borrowing for alterations, additions and repairs increased 9.4% to $502 million.I love helping all kinds of borrowers, from first home buyers and investors to renovators and refinancers. Reach out if you need assistance.Need help? Request a call backHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Borrowing increases as property market heats up

The Australian Taxation office (ATO) has reminded taxpayers to lodge their taxes by the October 31 deadline or engage with a registered tax agent to avoid late lodgment penalties. If you have simple tax affairs, you can lodge online, often in under 30 minutes, through the myGov portal. Most of the information you need will already be pre-filled – just check it's correct, add any additional income and claim your legal deductions. The ATO has also stressed the importance of making sure any claims you make for work-related expenses are accurate, which means you can't just automatically copy/paste the previous year's claims. “We want people to get their deductions right on the first go and claim what they are entitled to – nothing more, nothing less. We have a series of 40 occupation and industry-specific guides which you should have a look at,”ATO assistant commissioner Rob Thomson said. “It may be tempting to boost your refund by leaving out income or inflating your deductions – but remember, we have sophisticated data analytics that will pick up returns that look suspicious.”Want to compare interest rates? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Deadline fast approaching for people who do their own taxes

A new report, from Housing Australia, has revealed that about one in three of all first home buyers in the 2022-23 financial year used the federal government’s Housing Guarantee Scheme (HGS) and its three different assistance programs.Here’s what the typical participant looked like, according to Housing Australia:First Home Guarantee: the median participant was in the 30-34 age bracket, had a household income of $76,000 and bought a property worth $459,000.Regional First Home Buyer Guarantee: participants were aged 25-29, earned $71,000 and bought a $389,000 home.Family Home Guarantee (for single parents): participants were aged 35-39, earned $70,000 and bought a $422,000 home.Meanwhile, Housing Australia is the name of the new agency that has just replaced the National Housing Finance and Investment Corporation and assumed its responsibilities.Housing Australia has not only taken control of the HGS, but also the National Housing Infrastructure Facility, which provides loans and grants for critical infrastructure to unlock and accelerate new housing supply.Reach out for a first home buyer loanHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about How the federal government is helping first home buyers

The latest Reserve Bank of Australia (RBA) data has shown the impact the RBA's cash rate rises have had on the mortgage market. The key is to compare average interest rates for all outstanding loans in April 2022 – the month before the first rate rise – and August 2023 – the most recent month for which we have data. During that time, the RBA increased the cash rate by 4.00 percentage points. Interest rates for outstanding loans have, on average, increased by less than that amount, in part because some loans were fixed at lower rates. For owner-occupied loans, rates have increased by an average of:2.82 percentage points for principal-and-interest loans 3.31 percentage points for interest-only loans For investment loans, rates have increased by:2.83 percentage points for principal-and-interest loans2.73 percentage points for interest-only loansFuture interest rate hikes can't be ruled out. The conflict in the Middle East may lead to higher oil prices, and therefore higher petrol prices and higher inflation. In the RBA's cash rate meeting earlier this month, board members noted that “some further tightening of policy [i.e. rate rises] may be required should inflation prove more persistent than expected”, according to the meeting minutes.Want to compare interest rates? Let's talkHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about How interest rates have evolved over the past 18 months

With lots of people coming off fixed rates right now, it’s no surprise that an enormous amount of refinancing is occurring, as borrowers look to switch to lower-rate loans.The latest Australian Bureau of Statistics (ABS) data has revealed that borrowers did $20.60 billion of refinancing in August – which was 3.9% lower than the month before but 12.4% higher than the year before.Meanwhile, the ABS also revealed that the value of all new home loan commitments in August was $24.82 billion, which was 2.2% higher than the month before.Owner-occupier borrowing rose 2.6% to $16.07 billion, while investor borrowing rose 1.6% to $8.75 billion.That said, home loan activity has fallen on a year-on-year basis:Total borrowing down 9.4%Owner-occupier down 12.5%Investor down 3.0% The interest rate environment has changed a lot recently, and the level of competition in the mortgage market is fierce, so there are a lot of great refinancing deals available – including with quality smaller lenders you may be unfamiliar with.Want to refinance? Let’s chat!Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Chat to us today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Australians refinance more than $20bn of loans