Will the RBA cut interest rates in 2019?

Will the RBA cut interest rates in 2019?

Tweet There have long been predictions that the next interest rate move by the RBA would be an increase, but there are growing reasons to believe that interest rates could be headed lower instead. At the RBA’s last meeting in February they kept the official cash rate at 1.5 per cent. Interest rates have remained on hold for more than 2 years now, last moving in August 2016. While in the short term many believe that interest rates will remain at their historic low, with few forecasting any changes in March 2019, there are a number of...

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Has your lender raised its rates?

Has your lender raised its rates?

Tweet NAB has recently announced it will be increasing its variable mortgage rates, making it the last of the Big Four banks to bring in out-of-cycle rate hikes. The bank will be increasing its investor and owner-occupier rates on its variable Tailored Home Loans, effective as of 31 January 2019. According to NAB’s Chief Customer Officer – Consumer Banking Mike Baird the bank held off on raising rates as long as they could, “despite being subject to the same increasing wholesale funding costs and market pressures as other major...

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2018 was a tough year for Australian property values

2018 was a tough year for Australian property values

Tweet The Australian property market experienced its weakest conditions since 2008’s Global Financial Crisis in 2018, according to new data from CoreLogic. Figures from CoreLogic show that dwelling values fell by 4.8 per cent nationally throughout the year, led mainly by declines in Sydney and Melbourne. Prices in Sydney were down by 8.9 per cent, and 7 per cent in Melbourne. However it’s not just Australia’s major cities that struggled in 2018, with weaker conditions experienced across most of the country. As CoreLogic head of research...

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APRA scraps cap on interest-only lending

APRA scraps cap on interest-only lending

Tweet The Australian Prudential Regulation Authority (APRA) has announced it will ease the restrictions it put in place on interest-only residential mortgage lending. The banking regulator capped the proportion of interest-only lending at 30 per cent back in March 2017 in a bid to curb high risk lending practices. With banks having reached their benchmarks and having provided assurances to APRA, it seems that there is no longer a need to have the benchmark in place. “The introduction of the benchmark has led to a marked reduction in the...

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Home loan demand on the rise

Home loan demand on the rise

Tweet In a positive sign for the property market, recent data has shown that home loan demand has gone up following two months of declines. According to the Australian Bureau of Statistics’ (ABS) housing finance data for October, 52,654 home loans were approved throughout the month. This is an increase of 2.2 per cent on the previous month. The ABS data also revealed that a total of $30 billion of dwelling commitments were made, which was up 2.6 per cent on September. Breaking this figure down, there was an increase of 3.5 per cent for...

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Many first-time buyers are choosing to invest

Many first-time buyers are choosing to invest

Tweet New research has revealed that one third of first home buyers are choosing to buy an investment property as their first property purchase. According to the 2018 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey, 36 per cent of first home buyers are choosing to “rentvest” (buy an investment property while continuing to rent) rather than buying a home to move into. PIPA chairman Peter Koulizos noted that the popularity of rentvesting looks to be here to stay as demonstrated by the 63 per cent of survey...

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