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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...]

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...]

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...]

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