RBA rate increase announced!

Last Week in Review 3

This week we saw good news for first home buyers. Apartments have had a decrease in demand as professional investors have begun chasing land with knockdown rebuilds become hot commodities.

Property buyers and refinancers also receive great news as one of the lenders on our panel ING have also decreased their home loan rates to as low as 1.84%!

More details below.

ING have decreased their home loan rates to 1.84%

Three LVR tiers will be introduced for Owner Occupied, Principal & Interest Fixed Rate Loans. The tiered structure will be applicable to:

Standard Owner Occupied, Principal & Interest Fixed Rate Loans, and

        LVR is less than or equal to 80%

        LVR is greater than 80% and less than or equal to 90%

        LVR greater than 90%

Fixed rate home loans when your LVR is less than or equal to 80%

1 year fixed: 2.04% | 3.94%

2 year fixed: 1.89% | 3.73%

3 year fixed: 1.84% | 3.56%

Fixed rate home loans when your LVR is greater 80% but less than or equal to 90%

1 year fixed: 2.14% | 3.94%

2 year fixed: 1.94% | 3.74%

3 year fixed: 1.99% | 3.59%

Fixed rate home loans when your LVR is greater than 90%

1 year fixed: 2.59% | 4.11%

2 year fixed: 2.39% | 3.82%

3 year fixed: 2.44% | 3.70%

Contact It’s Simple Finance for more information on 4 and 5 year fixed terms or if you’re interested in applying for one of our home loan products.

“Tide turning on interest rates”: CBA hokes fixed rates – It’s Simple Finance

Commonwealth Bank has hiked its three-year fixed rate for owner-occupiers in a further sign that ‘the tide is turning on interest rates’. 38% of lenders have increased at least one fixed rate over the past two months.  This has occurred even though the RBA said that the official cash rate isn’t likely to be increased until 2024 at the earliest. The banks are adjusting their 3-4 year rates to head off the future RBA hike.

Pedal to the metal: EOFY is officially bearing down on us – It’s Simple Finance

Businesses can immediately write off the full value of any depreciable asset purchased, at any cost under the federal government’s temporary full expensing scheme. These assets have to be installed and ready to use by June 30 in order to receive these write offs. The benefit of doing this is to help improve your cash flow by allowing businesses to reinvest into themselves sooner.

The property advice young Australians are increasingly ignoring – news.com.au

Many young Australians are choosing to skip the ‘stepping stone home’ to reap the benefits of buying an investment property instead. The old piece of advice that ‘rent money is dead money’ is being ignored as house prices continue to boom, putting many people’s dream home out of reach.

Sydney and Melbourne apartment price drop is good news for first home buyers – news.com.au

Thousands of units are expected to flood the market in the coming months as landlords experience mortgage distress and look to sell up quickly. Unit values are set to take a dive in capital cities. And ME bank survey showed 23% of investors are wanting to sell their property in the next 12 months, compared with only 11% of owner occupiers.

Derelict Sydney house on the market for $4.5m – news.com.au

A derelict house in Sydney’s inner west has been left to rot for a year and yet is on the market for $1 million more than a luxury house around the corner. The reason for this is due to land now commanding a premium in Sydney. The 1323sqm property is in poor condition but buyers are willing to pay for just the land.

Mortgage stress: 230,000 Aussie households ‘risk losing their homes’ – news.com.au

A leading economist has described the government’s new schemes to help first home buyers as ‘crazy’, warning it could result in future problems. Choice CEO, Alan Kirkland, said that there are households where people are living fortnight to fortnight and are spending more than they are earning. However, economist Saul Eslake, said he would be surprised if there was a significant increase in households experiencing mortgage stress as interest rates have remained unchanged since November last year. 

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