Major banks are changing their serviceability calculators! This will have an effect on how much you are eligible to borrow for your home loan. What’s changing? Effective as of February 18, 2012, home loan applications will be subject to revised living expenses by some of the major banks. The Commonwealth Bank announced that they are moving to the Household Expenditure Measurement (HEM) method in their serviceability calculators for home loans. Previously the Henderson Poverty Index (HPI) was being used for determining living expenses for calculating the serviceability... [Read more]
On Friday, 10 February 2012, ANZ announced increase of its interest rates on standard variable home loans and business loans by 6 basis points, that is by 0.06%. ANZ is currently offering 7.36% on variable interest home loans. While ANZ increased its standard variable home loan rates, the bank also announced a reduction of its fixed rates. Borrowers find the ANZ fixed rate loans competitive when compared with other lenders. Did the other banks increase their interest rates? As we predicted on Friday, other banks followed ANZ’s decision to increase their variable... [Read more]
Variable Interest rates for ANZ customers are to increase by 0.06% as announced by ANZ today. This announcement came after the monthly meeting of Reserve Bank of Australia for the month of February. What are the Reserve Bank of Australia’s lending rates? RBA interest rates are currently at 4.25%. RBA cut its rates in November by 0.25% and then again in December by another 0.25%. There was criticism from bank customers when banks did not immediately lower their rates after RBA rate cuts in December. What are the predictions for RBA rates in 2012? There are also further... [Read more]
Temporary visa holders on Living Away From Home Allowance (LAFHA) will now have a reduced income due to changes in LAFHA policy. This may affect your borrowing capacity. Read on to find out how. What is happening to LAFHA? LAFHA has been an attractive incentive for overseas employees in Australia, bringing qualified workers into fields such as, Marketing, Recruitment and IT. However, LAFHA is changing! When will the changes occur? Starting July 2012, most 457 temporary work visa holders will no longer be eligible for LAFHA and the income of non-resident workers in Australia... [Read more]
According to the QBE LMI Australian Housing Outlook Report 2011-2014 released in October, Australia can look forward to a general improvement in the housing market. QBE is one of Australia’s leading LMI providers. This is an annual report that indicates what the top economists believe different housing markets in Australia will do. In the past they have had an excellent track record of accurately predicting the future of Australian Real Estate. They have no vested interest one way or the other. In other words this is an unbiased prediction! QBE’s Predictions The... [Read more]
The start date for the Personal Properties Security Act (PPSA) has been confirmed by the Attorney General to be Monday, January 30, 2012. The Federal Government’s Personal Property Securities ACT (PPSA) Reform is going to be bringing about some changes to the rules that govern home loan products. These changes should be carefully noted by anyone looking to take out home loans for purchase or refinance in 2012. For the purposes of the PPSA, the definition of ‘personal property’ is any form of property other than land, buildings or fixtures. In essence,... [Read more]
Thinking of getting a loan to purchase a property? Prepare to be introduced to some difficult terminology and financial concepts that may leave your head spinning! Luckily we’ve compiled a list of the top ten things you need to be familiar with when you start looking for finance. Read on to find out more… 1. What is LMI? LMI is an acronym for Lenders Mortgage Insurance. If you are borrowing over 80% of the value of a property then your lender will probably require that your loan is insured due to the increased risk. This insurance protects the lender, not you. If... [Read more]
Are you looking to a buy a new home? What if you don’t have any savings? Most banks require a 5% deposit to put towards the purchase price, before they will lend to you. The banks had very restrictive genuine savings policies and would only approve individuals where they could evidence savings made in a bank account from 3-6 months. Where a person could provide genuine savings, the banks knew that they were lending to a responsible borrower who could manage their finances and afford the loan. How has the policy changed? You can now borrow up to 95% with no genuine savings!... [Read more]
In the past, borrowing from the banks meant having a stable income, a strong employment history and at least 5% genuine savings. Not anymore! New policy Whilst some banks are more conservative in their lending policies, we know lenders that waive the requirement for genuine savings, allowing you to contribute a 5% deposit from various sources. This is great news for those of you who may have parents wishing to gift them a deposit. So if you want to borrow 95% of the purchase price, read on to find out which banks are most suitable for your situation and what the banks will... [Read more]
The New South Wales (NSW) Government has recently passed legislation tightening the witnessing requirements for mortgages over NSW property. Previously witnesses for NSW Mortgages were only required to have known the person signing the Mortgage personally or be provided with any type of identification so as to be satisfied as to their identity. Effective Tuesday, 1 November 2011 witnesses will need to be more than just personally acquainted or satisfied with the identity of the person signing the mortgage. They must: Have known the person signing the mortgage for more... [Read more]
