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Hello,
It has been a while since weve been able to bring you the good news story that interest rates are heading down. Read our lead article to find out why rates are predicted to be cut and what our economists predict will happen in the coming year.
We also cover another important trend the fall in housing prices. In this increasingly strong buyers market, we look at the issues involved with both buying and selling your home.
Our article, "Steps to Home Ownership", walks you through the process of buying a home from start-to-finish for those just entering the home ownership market.
"Renovating to sell" outlines how renovation can be used as an option for increasing the value of your home and maximising its saleable potential.
Lastly we review the topic of interest-only loans and how they can be useful for a variety of applications.
Enjoy this newsletter and feel free to share it with family and friends.
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PO Box 319
Toongabbie NSW 2146| Tel: | 1300 66 12 11 | | Mob: | 0404 037 663 | | Fax: | 02 8214 6592 |
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Rates Heading Down
Interest rates could sink as low as 8 per cent within a year. It's the sort of news that just a few months ago would have been inconceivable, yet now economists believe rates will be cut repeatedly until they are at 2006 levels.
A Reuters survey of 20 financial institutions found virtually all expect the Reserve Bank to make between three and six rate cuts over the next year.
The U-turn on interest rates comes as the domestic economy continues to cool, bringing about a reduction in inflation over time and opening the door for interest rate cuts.
Many experts now say that a big rate cut is needed to kick-start economic activity and avoid a further slowdown.
Read More >>
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Steps To Home Ownership
As Australian house prices start to fall, more people are being encouraged into home ownership. The market conditions make the decision to buy a lot easier - now you just need the right house, at the right price with the right finance. Follow these steps and you should be able to achieve all three!
Read More >>
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Renovating To Sell
Renovating your home can put it ahead of the competition in today's buyers' market. The secret to success is to make sure your renovations are realistic, achievable and ultimately add value. Don't fall into the trap of over-capitalising and ending up with a home that costs substantially more than its market price.
Establish a budget and stick to it
Take the time upfront to work out the costs in detail and you are less likely to run out of cash mid-way through the project. Your budget should take into account labour, materials, council fees, design fees and inspection costs, plus include up to 20 per cent as a contingency fund.
Read More >>
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Paying Interest Only
You may have heard of an interest-only loan and wondered if it is as good as it sounds. As its name suggests, an interest-only loan is a type of loan in which you pay only the interest on the principle balance. This doesn't mean you will never pay the principle, it simply means that for a set term - usually 5, 10 or 15 years - you can make interest-only payments.
Read More >>
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Mortgage & Finance Association of Australia
Mortgage World Australia is a full member of the MFAA. As a member we must adhere to an Industry Code of Practice, which requires professionalism, ethical behaviour, transparency and a commitment to you, the borrower.
This helps to ensure that your best interests are at heart whenever we make a finance recommendation.
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News & Specials
- Bankwest have brought back their Rate Tracker Home Loan which offers a 0.90% p.a. discount off the average standard variable rate of the big 4 banks for the first 3 years of the loan. There is also no early repayment penalty on this loan which means you can refinance after 3 years without being charged a hefty exit fees.
- As of Monday 13th July RAMS are offering a FlexiFix product where up to a maximum of 50% of the loan amount can be fixed for 2 years at 4.99% p.a. rolling over to the Smartway Variable rate after 2 years. Variable portion can only be taken as a Smartway Variable loan which currently offers an interest rate of 5.49% p.a.
- St.George are offering a 0.15% p.a. discount off their fixed rate home loans if taken under their Advantage Package. Westpac are offering a 0.20% p.a. discount off their fixed rates under their Premier Advantage Package.
- Although most lenders are no longer offering cheap low doc interest rates RAMS are still very competitive in this market.
- Go into the draw to win $10,000 in Cold Hard Cash by either booking an appointment with us, using our services to take out a home loan or by referring a friend. Competition ends on 31st July 2009.
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Disclaimer: This newsletter is intended to provide general news and information only. Readers should rely on their own enquiries before making any decisions regarding their own interests. Please do not rely on any part of this newsletter as a substitute for specific legal or financial advice. All material is copyright 2009.
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