Month In Review - October
Updated: Nov 16
Welcome to the October monthly update. A quick snapshot of what's been happening in the finance and mortgage worlds.
Interest Rate Update
Here are some of the market leading Interest Rates as of the 14th October 2020
To find out if you qualify for any of the above rates contact us today.
RBA cash rate
The RBA cash rate has remained at 0.25% - Read the full October Monetary Policy Decision HERE
Key takeaways: "Over the past six months, the Australian economy has been supported by a substantial easing of fiscal policy. Public sector balance sheets in Australia are in good shape, which allows for continued support. Both fiscal and monetary support will be required for some time given the outlook for the economy and the prospect of high unemployment."
"The Bank's policy package is working as expected and is underpinning very low borrowing costs and the supply of credit to households and businesses. There is a very high level of liquidity in the Australian financial system and borrowing costs are at record lows. $81 billion of low-cost funding for authorised deposit-taking institutions (ADIs) has been advanced under the initial allowance of the Term Funding Facility. ADIs currently have access to a further $120 billion under this facility. As this is drawn down, there will be a further very significant expansion of the Reserve Bank's balance sheet."
Responsible Lending Laws Scrapped
Commonwealth Treasurer Josh Frydenberg has announced the government will move to simplify the credit process, by scrapping responsible lending obligations from the National Consumer Credit Protection Act 2009 (NCCP).
In short the NCCP Act 2009 is there to ensure lenders only give out loans to borrowers where the credit product is suitable, by verifying the applicant's requirements, objectives and their financial situation.
By relaxing these stringent credit laws and regulations it will make it easier for Australians to take out a new mortgage or to refinance their existing home loan.
However, consumers should continue to practice caution when entering loan agreements and get a credit advisor like The Brisbane Broker on their side to help them understand the terms and what it could mean for them.
If you would like to read more on this topic click HERE
5 Ways to turn a house into a home
We're all spending more time at home so we thought we would share 5 of the best ways we found to make the place you live feel more comfortable and homely. It doesn't matter if you own your own home or are renting these Top 5 Tips can easily be implemented to make a big difference.
Fill your home with personal mementoes
To read more about each Tip and find out how to implement these tips view our Blog post HERE
Record breaking quarter for AFG brokers
In 1Q21, AFG brokers lodged 35,461 loans totalling $18.2 billion. The figures eclipsed the last quarter’s record-breaking lodgement levels by $1.4 billion, when approximately 31,000 loans (totalling $16.8 billion) were lodged.
Where are all these loans coming from?
Around 23 per cent of all loans lodged by AFG brokers were for first home buyers and two-fifths were for upgraders which make up the largest proportion of the market.
On the flip side the proportion of investor loans sunk to a record low! They have also seen a big drop in refinance deals which have dropped down to the same levels as 2018!
Key take away:
The First Home Buyer fiscal packages introduced by the government along with record low interest rates are clearly working and helping the economy in these strange times.
Homeowners need to start taking advantage of the low rates on offer and look to see if they could financially benefit. If you want to explore your options contact us today HERE
Unfortunately, the threat of Covid is still around and as we start to get used to the rules of getting out and about, signing in to our local shops and restaurants, job losses and unemployment are still a big reality. If you've been affected and are struggling with your finances there is help available and we advise you to seek guidance from your bank and/or credit provider as soon as possible for guidance. Contact details for most lenders can be found HERE
If you would like to find out more information on any of the above topics or would like to see how we can help you with your mortgage Contact us.
WARNING: The contents of this communication are not designed to replace credit advice. We have not taken into account your needs, objectives or financial situation. The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. The comparison rate is calculated on a $750,000 secured loan over a 25 year term at 60% LVR.