Pete’s Finance Blog

RBA reduces Cash Rate to 3.75% Effective 2/5/2012

Peter Beverley — Tue, 01 May 2012 05:45:18 +0000

“At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012. This decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated. Growth in the world economy slowed in the second half of 2011, and is likely to continue at a below-trend pace this year. A deep downturn is not occurring at this stage, however, and in fact some forecasters have recently revised upwards their global growth outlook. Growth in China has moderated, as was intended, and is likely to remain at a more measured and sustainable pace in the future. Conditions in other parts of Asia softened in 2011, partly due to natural disasters, but have recently shown some tentative signs of improving. Among the major countries, conditions in Europe remain very difficult, while the United States continues to grow at a moderate pace. Commodity prices have been little changed, at levels below recent peaks but which are nonetheless still quite high. Australia’s terms of trade similarly peaked about six months ago, though they too remain high. ”
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$1500 Fun Fund Winner

Peter Beverley — Fri, 20 Apr 2012 01:45:10 +0000

We’re pleased to announce Johanna Brown as the ‘Fun Fund’ competition winner! Congratulations Johanna and enjoy your fun fund!

Interest Rates April 2012

Peter Beverley — Mon, 16 Apr 2012 07:14:25 +0000

Amid all the noise of the interest rate increase by ANZ last week, we now have 2 rate cuts at the 3 year fixed level.

A special from St George sees their 3 year rate back at 5.99% p.a. which can also help clients tight on finance borrow more because they will also use the fixed rate in servicing. St George is also offering a $700 refinance rebate. Citibank has also cut its 3 year rate by 7 points. With Standard Variable Rates moving slightly upwards the message is to get the biggest margin discount you can. We can still negotiate 1% discounts off the Standard Variable Rates.

Many borrowers we talk to think they are getting a good deal but can do better. Better still fix part of your loan and keep some variable with an offset account to minimise interest charges.

Investor Activity

Peter Beverley — Thu, 12 Apr 2012 21:00:13 +0000

The negative news out of Europe & USA has weighed heavily on consumer and business confidence and encouraged creditors to tighten lending standards. BIS Shrapnel economic forecasters have predicted credit hunger to reawaken in 2012 particularly with investors after low building activity for some time. This under investment has created pent up investment demand. Household savings rate has also increased to its highest level since the 1980’s!

Timeline to Getting A Home Loan

Peter Beverley — Wed, 11 Apr 2012 21:00:37 +0000

Timeline to getting a home loan approval can vary. An example can be where valuations are required. Usually take 48 hours but can be delayed where the valuer has to gain access to the property e.g. there may be tenants to liaise with or a remote location. On the other hand this process can sometimes be sped up where lenders rely on contract prices; by using modeled valuations; or by making ‘drive by’ assessments.

Timeline to Getting a Home Loan

Peter Beverley — Mon, 09 Apr 2012 21:00:18 +0000

Timeline to getting a home loan approval can vary. Requests for further information can arise where it becomes out of date as part of the process e.g. currency of pay slips, loan statements or bank accounts. Also where a search reveals a company or directorship further information will be requested by the lender to check there are no obligations arising from these entities.

Get Your Finance Pre-Approved B4 You Buy

Peter Beverley — Sat, 07 Apr 2012 21:00:35 +0000

We strongly urge you to obtain a pre-approval before searching seriously for a property. This gives you greater certainty and obtaining the formal approval (which should be obtained before committing to the contract) will then take less time. These typically last for 90 days but can be renewed.

Timeline to Getting a Home Loan

Peter Beverley — Fri, 06 Apr 2012 21:00:34 +0000

Timeline to getting a home loan approval can vary. An example can be where Lenders Mortgage Insurance (LMI) is required usually if the loan to valuation is above 80%. LMI’s have their own assessment criteria and sometimes additional questions arise which is an additional assessment process usually taking up to 48 hrs. If you can reduce the need for LMI, you can also reduce your costs. We can help you structure your loan efficiently.

Tips for Moving Home - 10

Peter Beverley — Thu, 05 Apr 2012 21:30:20 +0000

Don’t let the hectic nature of the move let you forget your purpose. Take a moment to enjoy your new home as you open the front door as a family.

The home loan market is very competitive at the moment with interest rates changing every week. If you would like a no obligation free home loan check, The Home Loan Company will compare home loans for you and find you a better deal.

Tips for Moving Home - 9

Peter Beverley — Wed, 04 Apr 2012 21:30:34 +0000

When you arrive at your new home it can be hectic. Pack a kit for essentials like snacks, tea / coffee, sandwiches, toiletries, a change of clothes, kitchen essentials, soap and toilet paper.