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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.

Sun, 05 July 2009
Mortgage Rescue plan to lower Interest rates
THE Federal Government is considering a national mortgage rescue plan that could result in the big four banks lowering their interest rates and home lending fees

Under the plan, the Government would enter the mortgage market directly by issuing Australian Mortgage Bonds - as new data shows homeowners are being hit by sagging credit and lending levels not seen since the recession of the early 1990s.

The Government's Mortgage Bonds issue would immediately alleviate the increasingly scarce funds available to secondary lenders such as building societies and credit unions, forcing banks to keep their interest rates and fees low in order to compete.

The plan is being pushed by mortgage insurer market-leader Genworth Financial and an umbrella group for building societies and credit unions, ABACUS, representing 4.5 million members

covers 130 institutions, which together make up the fourth-largest household deposit-holder in the country.

A group of about 20 big housing market players, including Genworth and ABACUS, held a private, round-table meeting in Canberra two weeks ago with officials from Treasury and the Department of the Prime Minister and Cabinet, to discuss a range of issues including mortgage stress.

Australia's stricken securitisation markets mean regional lenders are finding it increasingly difficult to provide affordable home loans to country Australia," Peter Hall of Genworth Financial said.

We need short-term measures that provide immediate relief, as well as long-term initiatives that keep credit doors open for regional Australia in good and bad economic times," he said.

ABACUS CEO Louise Petschler said: "Competition helps everyone, regardless of where you bank. At the moment, the Government is asking us to compete with one hand tied behind our back because of unfair wholesale guarantee pricing."

A spokesman for Treasurer Wayne Swan said no decision had yet been taken on the Genworth-ABACUS proposal.

However, he said: "As we have said previously, the Government always has a close eye on competition in the mortgage market and, should further action be required, it will be taken."

Genworth believes a Government-backed Mortgage Bonds plan is necessary to restore confidence to a market badly buffeted by the global financial crisis, particularly in regional Australia.

The model has been used successfully in Canada over 15 years and has contributed to Canada having some of the lowest mortgage interest rates in the OECD.

Independent research commissioned by Genworth shows that, despite high take-up rates in the cities for the Government's First Home Owners Scheme, 87 per cent of regional Australians, who live where unemployment is higher, do not plan to purchase their first home in the next five years.

Only 11 per cent plan to buy new homes. The same research found 44 per cent of Australians think the Government should provide support for the mortgage market during difficult financial times.

The Mortgage Bonds program increases liquidity because smaller regional lenders can buy them, increasing the availability of low

Wed, 29 July 2009
Tasmainia is cheaper to have a mortgage than rent
A housing affordability study has found it is nearly $200 a month cheaper to buy a house with a mortgage in Strahan on the state's west coast, than rent one.

The study by identified seven areas in Tasmania where rents are more expensive than mortgage repayments.

In the south, the list includes houses in the Hobart suburb of Derwent Park and units in New Norfolk. The biggest savings are to be made taking out a mortgage on a house in Strahan. "You'd be looking at saving around $190 a month on a mortgage versus your rent," he said. Buying a house witha mortgage in Campbell Town in the northern midlands will save about $27 a month. Other areas on the list are Rocherlea in Launceston and Railton and Shorewell Park in the north-west.

Thu, 30 July 2009
Debt o consolidation is a effective way of controlling debt with a split loan a critical component
If you want to consolidate your debt, that is to pay off all your credit cards, hire purchase agreements, home improvement loans, etc. and combine them into one payment the most suitable way to arrange this is via a debt consolidation loan.A debt consolidation loan can be extremely cost effective. If you are a tenant, that is you only rent your home, debt consolidation loans are not easy to obtain, and if you find yourself struggling financially you may be forced to contact a debt management company who can advise you as to what is available to help improve your financial situation. However if you are a homeowner, a debt consolidation loan can be fairly easily obtainable ,and can give enormous savings one isue is to make sue you avdoid the debt on denbt isue. Split loans are the answer to this issue.

Thu, 30 July 2009
Why are women attracted to property
According to the Genworth report, more than a third of respondents said property ownership gives them peace of mind with the added benefit of being a safe and tangible investment.Similar sentiments were delivered in an earlier report, “her homeownership” commissioned by the now defunct Wizard Home Loans. This report found - in surveying 1000 women - that 70 per cent of women prefer to invest in property rather than the share market or funds.“In the end shares and managed funds are just bits of paper and most people don’t know how it all works. With property, you can see it,” one survey respondent said.This Wizard report says the top three reasons women are more attracted to property investments is because they believe it is safer (17%), they have greater knowledge and understanding of the property market as opposed to other markets (13%) and they believe property is a more stable market (9%).

Thu, 30 July 2009
Is this the light at the end of the mortgage tunnel?
THE proportion of home owners in NSW and the ACT struggling to muster their mortgage repayments has halved in the past two years - but it is still the highest in the country.A report on Australian mortgages paints a significantly healthier picture than in previous years, with two potential blemishes - the prospect of higher unemployment and a surge in the number of riskier first-home buyers.Among mortgage borrowers in NSW and the ACT, only 15 per cent now find it difficult to pay their mortgage loan, down from almost 30 per cent in 2007, according to the report, released yesterday by the mortgage insurer, Genworth Financial.

Thu, 30 July 2009
When is there too much mortgage and personal debt? What to do.
In an report issued today more houses are experiencing debt and mortgage stress. Mounting credit cards are the problem. A good benchmark figure is establsih that you should be seriously looking at debt consolidation and credit consolidation is what level of mortgage, credit cards and personal loans are taking up your monthly budget. If between 25 and 50 percent of annual income. You are in a critical debt situation. This is the financial equivalent of spiking a high fever in the middle of the night. Drastic changes are needed to address this situation. They can include , taking on a second job, Engage in debt consolidation to reduce your monthly repayment AND using the saving to pay of the mortgagee faster. You should stop using your credit cards. You are moving toward financial disaster.

Thu, 30 July 2009
Mortgage refinancing rises over 38% in June
The Australian refinance mortgage market a recorded a strong rise in the number of borrowers looking to refinance their mortgages, as home owners try to take advantage of record low interest rates on mortgage refiance deals. Non-bank lenders are reporting that refinancing accounted for 38.5 per cent of home loans written in June, up from 30.2 per cent in March."There have been plenty of home owners who have been complacent about their mortgages,'' ."But our figures show that more and more of them are taking advantage of record mortgage interest rate lows and are actively seeking out the best deal.''However, the number of first home buyers settling mortgage home loans dropped to 21.3 per cent of total mortgage loans written in June, from 32 per cent in March. "The steam has abated in the first home buyer market as many of them realise that the properties available are probably already at full price,''

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