Articles (All) - MO'R MORTGAGE OPTIONS

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 (posted Feb 2020)

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...]

5 Tips to Prepare for a Property Valuation

Whether you're exploring refinance options or want to release equity to purchase an investment property, a property valuation is a vital part of the finance application process. And just sometimes, the result of this property valuation can stop the process from progressing altogether. Here we look at the different types of valuations a lender may request and suggest a few ways you can prepare for one. Why does the lender need to do a valuation on my house? A lender is taking … [Read more...]

How to avoid underinsuring your home

With Australia currently enduring its worst bushfire season on record (and Canberra's January hail storm being labelled a "catastrophe" by the Insurance Council of Australia), we want to talk about insurance. Specifically, the issue of underinsurance. According to a recent report by the ABC, the Insurance Council of Australia has said that more than four out of every five homes affected by bushfires are underinsured. What does 'underinsured' mean and how does it happen? Being … [Read more...]

Season’s Greetings! Here’s to a prosperous 2020!

With 2019 drawing to a close, we hope you're shifting into holiday mode and getting ready to relax and unwind (or, at least, looking forward to a few public holidays!). Hasn’t the year just flown by? It only seems like only yesterday that the RBA cut the official cash rate for the first time in almost three years. But that was more than six months ago, and the RBA has cut the rate another two times since. Now the official cash rate is sitting at a new record low of 0.75% - and financial … [Read more...]

Q&A Video: 10 Things to do Before Auction Day

What are 10 things you can do to ensure you give yourself the best chance of buying a house at auction? Watch our short video to find out. … [Read more...]

Ethical lenders

What is an 'ethical lender'? An ethical lender - also known as a social or sustainable lender - is a lender concerned with the social and environmental impacts of its investments and loans. It’s generally accepted in Australia that an ethical lender is one that doesn't invest in fossil fuels (specifically coal and gas), but there are other ways a lender can be considered to be ethical or sustainable. These may include but are not limited to: Striving for (or attaining) carbon … [Read more...]

Do you consider yourself to be a ‘spender’ or a ‘saver’?

Are you paid weekly, fortnightly or monthly? New findings from Xero indicates that how often you’re paid may influence whether you’re a saver or a spender. Xero has gathered data to explore payday behaviours across the country, and revealed that rushes of 'payphoria' appear to sweep the nation each time we're paid. Spending big & the payday pinch Xero's findings revealed that one in three Australians spend more on payday than usual, because they believe they work hard and … [Read more...]

Q&A Video: 5 ways to Take Advantage of Low Interest Rates

What are 5 ways you can take advantage of low interest rates? Watch our short video to find out. … [Read more...]

First Home Loan Deposit Scheme: it’s all in the details (Oct 2019)

The dream of buying your first home with only 5% deposit without having to pay Lenders Mortgage Insurance (LMI) may be getting closer, with the Government’s First Home Loan Deposit Scheme due to commence 1 January 2020. Many first home buyers have the ability to make repayments on a mortgage, the problem lies in how long it takes to save a 20 percent deposit. In fact, the Reserve Bank of Australia says that a household saving 15 percent of their income (based on the before-tax median), will … [Read more...]

How have the lenders responded to the RBA October 19 cash rate cut?

Following the RBA's cash rate cut for October, here's a summary of the lending cuts announced as at 5:30pm AEST 3 October, 2019. CBA rate changes (effective 22 October) : - Rates on Owner Occupier variable loans (both Principal and Interest and IO repayments) will drop by 0.13. - Rates on Investment variable loans (Principal and Interest repayments) will drop by 0.13. - Rates on Investment variable loans with IO repayments will drop by 0.25. BankWest rate changes … [Read more...]

RBA Cash Rate – October 2019

At its meeting today, the RBA Board decided to reduce the cash rate by 25 basis points to 0.75 per cent. Here are some of Philip Lowe's commentary surrounding the decision: The Australian economy expanded by 1.4 per cent over the year to the June quarter, which was a weaker-than-expected outcome. A gentle turning point, however, appears to have been reached with economic growth a little higher over the first half of this year than over the second half of 2018. The low level of interest rates, … [Read more...]