AuthorStephen

It has come as no surprise that the Reserve Bank of Australia left the cash rate at 2.00% for another month. Whilst conditions have been easing in China, the US economy is showing strong signs of growth, keeping the global economy on track for moderate growth.
Australia’s economy is still operating with some spare capacity, with positive growth in employment. There is also good containment of domestic inflationary pressures and a lower exchange rate to encourage growth. Governor Glenn Stevens of the Reserve Bank, in his official statement, mentioned that the current housing market is still under control:
“…monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending.

Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney and Melbourne, though trends have been more varied in a number of other cities. Regulatory measures are helping to contain risks that may arise from the housing market.”
So, what does all this mean for you? With rates remaining so low, now is the time to consider whether your current loan is the right one for you.

Call us today to get an no obligation free home loan assessment, 1300 559 084

Are you clambering up the ladder and into the property market? Here are just a few tips to help
handle your mortgage and achieve financial freedom.

Chances are that you’ll be after the financial support that home loans offer.
While there is mountains of information regarding the often stressful, sometimes agonising road to buying your new home, what about the years of debt to your mortgage lender once the smoke has cleared?
The Mortgage & Finance Association of Australia has made some interesting findings on this. Even
through global financial crises, the Australian industry for home loans has continued to grow unheeded for
nearly 100 consecutive quarters and counting.
What you should always keep in mind before making that first step into the property market with your mortgage
lender is that you are essentially renting that money.
The interest will ensure that your mortgage will cost you more for every day extra you take to pay it off.
Therefore, it would make sense to get it over and done with and achieve financial freedom sooner! Here are just a few tips to help handle your mortgage.

Make bigger payments
You’ve spent all your time and money putting funds aside for your new home’s deposit, but now isn’t the time for saving.
Any dough you have to spare should be put towards mortgage repayments. End that sporadically used gym membership,
the questionable Asian takeaways and daily work drinks.
There’s a cunning method to ensure you stay well and truly ahead of your mortgage. Simply act as if your required repayments are higher than in reality – just 2 or 3 points. While this will have the obvious effect of shrugging off your financial burden faster, it will also make any future increases in rates less relevant.

Time your payments
Mortgage & Finance Help suggests timing your repayments so that they occur on your pay day. This way it won’t even
feel like you’re managing a mortgage – you’re just earning an average income!
The advantage to this method is that you will know that all the money in your account is for you. Not to mention that if as a result of rescheduling your payments they become more frequent, your loan will disappear faster.

Find the right loan
Fortunately for you, there are a lot of options when it comes to home loans. We can help you sift through the good and the bad, often with no fee.
So go shopping, see what’s out there. It’s good to know what you will be paying for the next decade or three!

There has never been a better time to refinance your home loan, the banks are literally falling over themselves to get your business.

If you have an owner occupied loan, under 80% LVR and making principal & interest repayments the world is your oyster!

The big 4 banks and some credit unions are offering anywhere from $1,000 to $2,000 to refinance with them. Nab are offering new customers a variable rate of 4.15% plus $1,500 to refinance. Bank of Melbourne will give you $2,000 if you take their package loan.

It’s truly is an incredible time for home owners, loans have never been so cheap.

At Peninsula Home Loans we feel the pick of the bunch has to be ING. They have a variable rate of 3.99% (4.19% comparison) in their Orange advantage package, they also refund 1% of your repayments each month and 2% of your pay wave transactions with some smart banking and depending on your loan amount this could effectively be another .5% off the rate.

If you haven’t conducted a home loan review recently you could literally be losing thousands of dollars so contact us today and take advantage of these rates as they won’t be around forever!

The increase in demand for housing has resulted in more competition at auction time. Thus, here
are some quick tips on how to win an auction.

If you’ve managed to find the right loan and are now looking
at buying property, chances are that you will be going to
auction.
The increase in demand for housing has resulted in more
home loans and more competition at auction time, which is
driving prices up and making sellers very happy.
For instance, the success rate of auctions in the week beginning
June 29 in Sydney was 83.9 per cent, according to
a report from CoreLogic RP Data.
Here are some quick tips for putting more power into your
hands as the buyer:

Investigate
Once you’ve decided on a house, look at the recent property
sales in the area surrounding it to get an idea of its value.
The best way to learn how auctions work is to actually attend
them, regardless of whether you’re interested in the
house. By simply blending into the background of people
and spectating, you’ll be killing two birds with one deadly
stone – learning how auctions work at the same time as
getting an idea of house prices in the area.

Appearance
If you’re going to an auction, it’s a good idea to dig out your
fine clothing from the depths of your wardrobe. While it may
be untouched since your uncle’s third wedding, the most
important thing is that it still fits – you can easily brush the
dust off.
According to yourmortgage.com.au, by dressing to impress
you can project a professional image and an unlimited
budget, ultimately intimidating your competition. Buyer’s
agent Frank Valentric, speaking to Your Mortgage, suggested
hiring an expensive rental car, which you can park prominently
in front and use to lean on before the auction commences.

Bidding
Continuing on with your confident persona, you want to bid
in a loud and clear voice – think Vin Diesel or Beyoncé, for
example.
For each bid you make, aim to go well above the current
amount. The important thing is to not get carried away and
end up spending more than you can afford, as there is no
cooling off period in auctions. Provided you get the voice
right though, you should be OK, because who is going to
bid against Vin Diesel or Beyoncé?

Finance
If the gavel drops and you have the leading bid, you’d better
have your finances in order as winning an auction is a
legally binding contract.
Talk to us about variable home loans and fixed home loans,
and what would suit you best.

No surprises from the RBA as the cash rate remains on hold.

As we enter the Spring season, the RBA has elected to keep the cash rate at 2.00%. This decision has come at a time when the global economy is performing moderately well, despite the recent economic turmoil in China and the Asia region.
Australia’s economy continues to steadily grow, off the back of a lower exchange rate. In this months statement released by Governor Glenn Stevens of the Reserve Bank, special mention was made of our strong credit market:
“Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities.”
So, what does all this mean for you? With rates expected to rise in the coming months, now is the time to consider whether your current loan is the right one for you, right now.

Just because you find the right loan now doesn’t
mean it’s going to still work for you in 5 year’s
time. That’s where refinancing your mortgage comes in.

Not everybody sticks with the same mortgage throughout its whole term. While it’s tempting to think
that when you find the right loan you’ll stay with it until it’s fully paid off, there’s a good chance
you’ll end up refinancing that mortgage at some point.

Why do people refinance?

Borrowers refinance their mortgages for a variety of reasons, generally to do with making their loan more suitably match their current circumstances. People’s situations change over time, and the loan that suited them 5 years before may not be the perfect fit now.

Some of the reasons borrowers might refinance include if:
 Interest rates fall and they want to jump on the bandwagon
 They want to change the type of interest rate – from, fixed to variable, for example
 They need cash for a large expense, like renovations or a vehicle

How does refinancing work?
Upon taking out a new home loan, a portion or all of these funds will go toward paying out your current mortgage.
Refinancing doesn’t have to be done through a different lender though – many people end up taking out a new loan
through their existing lender, if the product is the right fit.

Is refinancing always a good idea?
Any home loan decision should only be taken if it serves your best interests. There’s no point refinancing just for the sake
of it – it doesn’t make for a terribly good story at parties! But it never hurts to ask your mortgage broker for a home loan
health check to see whether it’s the right option for you.

The home loan process isn’t so scary. Once you know what to expect, you’ll be better armed to
purchase a property, and feel more confident.

Before you can nab yourself your very own property, you need to go through the process of securing a home loan. The
trouble is, if you don’t know what you’re in for, the experience can seem daunting. That’s why we’ve put together this short guide for what you, the buyer, can expect from the process of securing a mortgage.

Speaking to a broker
The first thing you’ll need to do is talk to a mortgage broker. They’ll ask you a number of questions – your employment history, your income, your long-term goals, for example.
After this soul-baring session, they’ll use the information to work out your borrowing power, and find the right loan product for you. They’ll also explain all the various fees, charges and costs that are involved, to make sure you’re on the right track.

Sorting your application
Now that you’ve picked your home loan, it’s time to apply. Your broker will be right there to offer you a
guiding hand through the process. They’ll let you know what documents you need to provide, and you’ll also go
through the age-old ritual of filling out and signing a number of forms.
The broker will send off the application to the mortgage lender when it’s done and dusted.

Seeing about your information
Once the lender gets your application, the ball’s in their court. They’ll spend some time going through the information you’ve provided to make sure all the details check out. They’ll also use a credit reporting agency to check your credit history.
If you pass, then congratulations – you’ve obtained conditional approval for the loan, so called because it depends
on certain criteria being fulfilled, such as satisfactory valuation of the property.

Setting up a valuation
Next, it’s time for you to find a property you like, if you haven’t already. Once you’ve gone through the many, many options out there and found one that catches your eye, inform your broker, and the lender will carry out a valuation of the property. This way the lender is satisfied that the property will be a good security for the loan – in other words, something they can sell to make up the loan if you default on it.

Signing the contract and settlement
When the dust has settled, you’ll get unconditional approval from the lender. You’ll receive your loan documents, which you’ll have to carefully read over and sign off on. Once done, return them to the broker, who will pass them on to the lender. Once you buy a property and exchange contracts, your conveyancer or solicitor will contact the lender to arrange a settlement date, upon which they’ll finalise the purchase.

Congratulations! You’re now the proud owner of your own home.

Australia’s cash rate is staying at 2.00% for the third consecutive month

Despite the international economic turmoil currently going on, the Reserve Bank
of Australia (RBA) has elected to leave the cash rate at the record low of 2.00%.
The basis for the decision is a lower price in commodities than this time last year,
in conjunction with a moderate growth projection for international markets.
In the statement from Governor Glenn Stevens of the RBA, he made special
mention of the rise in dwelling prices around the country, particularly Sydney:
“Low interest rates are acting to support borrowing and spending. Credit is
recording moderate growth overall, with stronger borrowing by businesses and
growth in lending to the housing market broadly steady over recent months.
Dwelling prices continue to rise strongly in Sydney, though trends have been
more varied in a number of other cities. The Bank is working with other
regulators to assess and contain risks that may arise from the housing market. ”
So, what does all this mean for you? With rates predicted to rise later in 2015,
now is the time to consider whether your current loan is the right one for you,
right now.

There are so many costs and processes involved with buying a home – have you considered which
inspections you might need?

Buying a house is a complicated process, and once you find the
right one – as well as a good variable or fixed home loan – the last
thing you want to do is pay for inspections. However, getting the
right person to have a look at your home-to-be could save you
major headaches and thousands of dollars down the line. Here are
the types of inspection you’ll need to consider.

Should I get a pest inspection?
Why yes, yes you should! The reasons for this are quite apparent –
you want to avoid costly termite (or other pest) damage to the
wooden frame of your new home. The gamble of not having a
report done is simply not worth the low cost of these reports. You
can even make it a stipulation in your sales contract.
How big a gamble is it? According to a 2006 report by Archicentre,
as cited by the Victorian government, “about one in five houses
in Armadale, Frankston, Greensborough, Monbulk, Newport,
Wantirna and immediate surrounding areas had a termite infestation
problem, or showed evidence of a past pest problem.” Those
are worse odds than Russian roulette!

What about a builder’s report?
Structural issues and building modifications that are not up-tocode
could not only pose a danger to the soundness of the dwelling,
but could also place you at risk of receiving a fine from the
local council, or could mess up your chances of selling later down
the road. Mortgage brokers and lenders will also have a lot more
confidence in your application if the building is proved to be structurally
fit.
Your building professional should be properly qualified, and will be
able to point out any defects that could cost you money in the
future. These same issues could also be grounds for negotiating a
lower price.
There are many other inspections you could have done, including
strata reports, if you’re buying into an apartment complex. Don’t
forget to do your own personal inspection before settlement to
make sure everything is as you bought it, and all chattels listed in
the contract are left in place.

RBA adopts a ‘wait and see’ approach after last month’s rate cut.

With domestic economic growth below the long-term average, the Reserve Bank felt that leaving the cash rate unchanged
is the best course of action. This decision was highly influenced by a stronger-than-expected Australian Dollar
against major currencies, and a reduction in key commodity prices.
Governor Glenn Stevens of the RBA also released a statement highlighting the favourable credit environment at the moment:
“Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with
stronger lending to businesses and growth in lending to the housing market broadly steady over recent months. Dwelling
prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities.”
So, what does all this mean for you? With rates predicted to rise later in 2015, now is the time to consider whether your
current loan is the right one for you, right now.