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RBA Holds Rates - 02/02/2010
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Contrary to the expectations of most commentators the RBA today held the official cash rate at 3.75 per cent. RBA Governor Glenn Stevens said today” Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being”
He went on to comment "CPI inflation has risen somewhat recently as temporary factors that had been holding it down are now abating. Inflation is expected to be consistent with the target in 2010 ...Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. "
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RAMS cans brokers - 19/01/2010
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RAMS the wholly owned subsidiary of Westpac today announced that it will be no longer using brokers to originate loans. In a statement today RAMS (Westpac) use an interesting and apparantly contradictory combination of reasons "dual distribution model very successful ... tightening funding environment... increasing confusion and conflict... manage lending growth". Once again Westpac appears to be suggesting that they have been too successful, or is this preparation for proposed tightening in liquidity rules. Either way the outcome for brokers and as a result consumers is less choice in a lending market that has already contracted alarmingly.
One would envisage that RAMS will become Westpac’s JetStar discount mortgage solution although RAMS franchisees shouldn't be celebrating just yet as both CBA and ANZ's discount arms (albeit non-branch) Homepath and OneDirect have been wound up. After all if you can sell all of your product at full price why bother discounting.
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Westpac Group Fixed Rate Increase - 11/01/2010
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Westpac and St George today announced increases across the board on their fixed rate products due to 'increases in the long term money market rates' - so while ING has a new 3 year fixed rate of 6.45 per cent Westpac's offering is now 7.79 per cent and 8.14 per cent for 5 years. With another announcement from Westpac's wholly owned RAMS that they are taking 10 days to assess new loan applications.
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AMP Expert Predicts 4.75% - 29/12/2009
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AMP's chief economist, Shane Oliver has predicted that the cash rate will peak at 4.75 per cent in the coming year. He suggests that widening rate margins by the dominant lenders will reduce the need for the RBA to push the cash rate higher.
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Rate Rises - 04/12/2009
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It is difficult not to be cynical but if you cast your mind back six months ago NAB was the villain for not passing on any of the RBA 0.25 April rate cut. Today by not loading their increase they are the hero when compared to Westpac’s 0.45 and CBA’s 0.37% increases. When it comes to unpopular decisions the major banks have an uncanny appearance (although I am sure coincidental) to be taking it in turns.
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CBA & Westpac Domination - 03/12/2009
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Latest APRA figures confirm the domination of Westpac and CBA who accounted for 80 per cent of credit growth for the 6 months to October 09. It's no coincidence that these two have benefited enormously from the GFC and the resulting reluctance of ACCC to intervene in the spate of takeovers of lenders such as Bankwest and St George, mortgage managers and broker groups. It would appear that competition in the Australian market is nearing a crises point however the regulators and the government appear to show little interest in the situation.
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House Prices Rise Despite Slow Demand - 30/11/2009
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Latest HIA figures suggest that house prices continue to increase despite a 6 per cent decline in new home sales for October. Melbourne prices have increased 14.9% over 10 months with Sydney 9.9% These rises are attributed to delays and costs with compunded by land shortages. In another report the Australian average new house in now larger than in the USA at 214.6 Sq Mts - and double the average size in the western world.
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Why lenders don't like small apartments - 30/11/2009
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Studio apartments may seem an ideal way to get a foot in the property market, or an attractive high yield addition to an investment portfolio, but lenders aren't very keen on them. A person might find getting finance on a 2 br unit or a house no problem at all, but the same person looking at a studio will have to find a bigger deposit and face less favourable terms. Why is this so? Read our latest newsletter
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ING Announce 100% Offset - 16/11/2009
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ING have finally announced their long awaited loan product with a 100 per cent offset facility - the Orange Advantage ( yet another Advantage product) the Orange Everyday transaction account is linked to the new loan product whoch also offer great flexibility with an annual fee of $199 with no extra charge on splits. Unlike other transaction accounts ING actually pay you a 50 cent bonus every time you withdraw $200 or more via EFTPOS.
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Which Bank A, B C or D - 02/09/2009
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The latest APRA figures confirm what we have been saying for some time, when it comes to mortgage finance the four major banks in July wrote virtually 100 per cent of all home loans. This has come about by lower cost of funds thanks to the Federal Gov't deposit guarantee and the unrestricted acquisition of smaller players which has seen Challenger, RAMS, Wizard, St George and Bankwest all purchased outright and Aussie now 30% owned by CBA. Meanwhile the NAB takeover of Challenger which included 3 of the largest broker groups, now means that the independence of over 5,000 mortgage brokers is threatened.
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