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 2020, lenders slashed their 1, 2 & 3 year fixed rate offerings and they've been low ever since. Lenders have been competing with each another to lock-in borrowers and one of the ways … [Read more...]

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...]

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...]

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...]

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...]

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...]

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...]

  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...]

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...]

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...]

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...]