<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1653223531561810&ev=PageView&noscript=1" />
MMO Team Photo

So you want to buy your first home?

So, life in isolation in your rental property (or your family home with the parents!), has cemented your goal to get out on your own and buy your first home. You’ve been fortunate enough to retain employment over the last few months and actually have more cash saved than you’d anticipated saving at the start of 2020. After all, you haven’t spent money on petrol. You haven’t spent money on dinners out with friends. You’ve maybe saved on childcare costs. And maybe you’re even considering … [Read more...]

The First Home Loan Deposit Scheme: spots open back up from 1 July 2020

The dream of buying your first home with a small deposit amount, without needing to pay Lenders Mortgage Insurance (LMI) will soon be an option again for some first home buyers, with the Government’s First Home Loan Deposit Scheme releasing another 10,000 spots from 1 July 2020. Many first home buyers have the capacity to meet loan repayments on a new proposed mortgage. However, it’s the deposit many find challenging because it’s no easy feat to save a large amount of cash, with increasing … [Read more...]

Are you eligible for the $25,000 HomeBuilder scheme?

Earlier this month, the Federal Government announced they'll give eligible Australians $25,000 to build (or substantially renovate) a home, as part of the HomeBuilder scheme. Here we examine who qualifies for the initiative and provide a little more detail about how it may work. The HomeBuilder scheme is a $680 million program and aims to support more than 1 million builders, painters, plumbers and electricians across the country. It’s also going to help many Australians build a new home … [Read more...]

If you’re planning to purchase property, you need to talk to us sooner than you think you do

It’s human nature to put things off until the last minute, especially if it involves some effort on your part. However, if you want to buy a property sometime this year, please make sure you talk to us sooner rather than later. There are some particular reasons for this –not only for the sake of your own stress levels! - which we outline here.   Lenders are taking longer to assess applications COVID-19 has caused wide-spread processing delays across a whole host of lenders - with one … [Read more...]

Is now a good time to lock in a fixed rate?

With interest rates at record low levels, we’re going to look at a question that many of you are asking: 'Should I lock in a fixed rate home loan?' If you've read any of our blog posts lately, you would know that fixed rates are very attractive right now. Following the RBA's emergency rate cut in March, lenders slashed their 1, 2 & 3 year fixed rate offerings. Lenders are competing with each another to lock-in borrowers right now and one of the ways they're doing this is via fixed … [Read more...]

Cash rate likely to remain low until 2023

The cash rate cut announced by the  Reserve Bank of Australia (RBA) in March, capped off an action-packed year for the cash rate, making it the fifth rate cut since May 2019. But what's in store for the cash rate over the coming months/ years? And what does this mean for you and your home loan?   What the experts say According to AMP Capital chief economist Shane Oliver, “the next few years are likely to be pretty boring” with regard to cash rate movements. Property researchers … [Read more...]

If you can nod your head to any of these scenarios, it’s time to review your home loan

We all know that it's a good idea to review home loans regularly. But like reviewing insurance policies, it seems to be something we put off because we 'don't have time' or our loan seems to be ticking along ok. The reality is though, just because everything seems ok, it doesn't mean it is. In fact, if you are comfortably meeting your loan repayments, there's a good chance you're paying more than you need to - simply because you've never felt an urgency to look more closely into it. We … [Read more...]

Questions you have as a first time buyer, given the current climate

It’s an unusual time for you as a first home buyer. Not only are you trying to work out how to actually buy a property, but you're doing it in an uncertain time when the playing field has changed. However, with all the recent conversations we've been having with first home buyers, we've been reminded of something. When it comes to purchasing your own home (something you've dreamed about and worked hard for a long period of time), there is little chance that *anything* will stand in your … [Read more...]

4 Ways MMO can make your life easier

We all know we've entered a new world - so we're not going to waste your time telling you things you already know about Earth 2.0. Instead, we're going to share 4 ways our team can make your life easier right now. Because we could all do with as much help as we can get, right?!     1. We can help you stay inside (and sane) While we can’t babysit your kids so they stop fighting and/or interrupting that important call you’re trying to make in your new home office, we can … [Read more...]

RBA Interest Rate Decision – 7 April 2020

At its meeting today, the RBA decided to leave the cash rate unchanged.   Here are Philip Lowe's comments about the decision: The coronavirus remains first and foremost a very major public health issue, but it is also having very significant effects on economies and financial systems around the world. Many countries are expected to experience large economic contractions as a consequence of the public health response. Large increases in unemployment are also expected. Once the virus is … [Read more...]

COVID19 support measures offered by the lenders

If COVID-19 has impacted your income to the point where you may need to pause your mortgage repayments, here's some info on the banks’ loan repayment deferral policies. Late last week the Australian Banking Association (ABA) announced that small businesses affected by the coronavirus could have their loan repayments deferred for six months. Following that announcement, the major banks announced support measures that would apply to home loan customers. Below we’ve outlined deferral … [Read more...]

COVID-19 cash rate cut: Lenders respond

Following the RBA's rate cut 19 March 2020, here's a summary of the lending cuts announced so far. Please note that as of 8pm, 23 March 2020, many lenders are yet to advise what effect this second rate cut will have on lending rates. We'll be updating this post as more news come to hand. CBA: No change to variable rates One, two, and three year fixed rates to fall by 70 basis points Borrowers will be able to defer their repayments for up to six months should they need … [Read more...]

COVID-19 cash rate cut

The Reserve Bank of Australia (RBA) has cut the cash rate to a record low of 0.25% following an emergency meeting due to the impact the coronavirus is having on the economy. RBA Governor Philip Lowe said that the rate cut was due to the virus causing “major disruptions to economic activity across the world”. “This is likely to remain the case for some time yet as efforts continue to contain the virus,” said Governor Lowe. Governor Lowe added the cash rate cut would help support … [Read more...]

How have the lenders responded to the RBA March 20 cash rate cut?

Following the RBA's cash rate cut in March, here's a summary of the lending cuts as of 4:00pm AEST 4 March, 2020.   CBA rate changes (effective 24 March): - Rate cut: 25 basis points - Applies to: All variable rate loans (new, existing, owner-occupied & investor) BankWest rate changes (effective 18 March): - Rate cut: 25 basis points - Applies to: All variable rate loans (new, existing, owner-occupied & investor) NAB rate changes (effective 13 March): - Rate … [Read more...]

RBA Interest Rate Decision – 3 March 2020

Well, what a difference a few days makes! As of last week, market expectation of the RBA announcing a rate cut at their Board Meeting today was quite low - as we outlined here. However, this all changed yesterday due to increasing concerns of COVID-19 impacting financial markets even further.   At its meeting today, the RBA decided to lower the cash rate by 25 basis points to 0.50 per cent.   Here are Philip Lowe's comments about the decision: The coronavirus has clouded … [Read more...]

First Home Buyer Concessions you should be aware of

If you're a soon-to-be first home buyer, you've no doubt heard about the First Home Loan Deposit Scheme (FHLDS) and how it can help buyers get into the market. We've assisted some of our clients with the FHLDS already, but since it's only available to 10,000 buyers across Australia, there are other borrowing options available to you if you're a little short of that elusive 20% deposit. In addition to these, as a first home buyer in the ACT, you may also be eligible for the following stamp … [Read more...]

Fixed Rate home loans – February 2020

With some attractive fixed rates available at the moment, it's likely you've thought about fixing in some (or all) of your existing variable rate loan. Which then raises questions like, "But what are variable rates likely to do over the short-medium term?" Let's take a look at that question a little closer. Please note analysis and commentary on interest rates provided here is based on data available as at 26 February 2020.   Cash Rate Futures Yield Curve The Cash Rate Futures … [Read more...]

Are you paying a “loyalty” tax?

Once upon a time, loyalty as a borrower was something you may have be rewarded for. But the Reserve Bank of Australia (RBA) confirms what we’ve known for a long time… Borrowers with older mortgages will typically pay a higher interest rate than those with new loans. The RBA's study finds that the difference in interest rates between new and outstanding variable-rate home loans increases with the age of the loan. When the RBA examined loans written four years ago, they found that borrowers … [Read more...]

RBA Interest Rate Decision – 4 February 2020

  At its meeting today, the RBA Board decided to leave the cash rate unchanged at 0.75 per cent.   Here an extract from Philip Lowe's Statement here: The outlook for the global economy remains reasonable. There have been signs that the slowdown in global growth that started in 2018 is coming to an end. Global growth is expected to be a little stronger this year and next than it was last year and inflation remains low almost everywhere. One continuing source of uncertainty, … [Read more...]

Why don’t lenders drop my repayments when the interest rate falls?

A question we've been getting a bit lately has been, ‘why didn’t my lender reduce my repayments when interest rates fell last year?’ It's not just a question our clients have been asking either, with the matter discussed at length in the House of Representatives last November.   What happens to loan repayments when the interest rate falls? If you're making Principal & Interest repayments on your loan and your lender announces an interest rate drop, nothing generally happens to … [Read more...]

Award Winning Mortgage Professionals