Tune in here for the latest information about credit, interest rates, and the property market. We do our own research to give you the most current and accurate news.
Since the last RBA cash rate increase in June 2023, median house prices in Sydney are ~2.3% higher, Melbourne ~1%, Brisbane ~2.4%, Adelaide 1.8% and Perth ~1.6%. And this is in less than 2 months! Inflation is also higher despite... Read more
Home loans become problematic for banks when the borrower cannot afford to pay. When this occurs it simply passes it on to their arrears team for management. APRA (Australian Prudential Regulation Authority) expects banks to assess new borrowers’ ability to... Read more
These are my reasons why I will not panic if interest rates spike higher in the next couple of months. We all know, or ought to know, that the USA bond market is the biggest bubble in human history. It... Read more
The battle of wits is on again, albeit at a very early stage. Last round went to the bond market. The bond market is starting to believe that the RBA has gone too far with its cash rate increases in... Read more
Let’s start with Market competitive Home Loan interest rates. A competitive (principal and interest repayment) owner-occupied home loan variable interest rate today would be 4.19%; a 2-year fixed would be 5.04%; 3-year fixed would be 5.19%; 5-year fixed would be... Read more
Which Central Bank will dare to increase interest rates 1% above inflation to fight inflation? Whilst I stand to be corrected, the International Monetary Fund demands this of those countries that it bails out. Now consider the consumer that met... Read more
On 30 June 2022 financial analysts were shocked that lenders massively hiked their fixed rate loans by up to 1.40%. We begged to differ at the time, providing facts and, referencing among other, our 4 June 2022 research note, The... Read more
» These financial analysts said that “The Commonwealth Bank is responding to the rising cost of fixed-rate funding.” Fair enough, but let’s look at the facts. » Since their peak on 15 June 2022 wholesale interest rates plunged by a... Read more
» Land Tax for Stamp Duty incentive The NSW government (budget 2022) is offering first home buyers the option to choose between paying land tax at an annual levy of $400 plus a 0.3% tax on the value of... Read more
Update on lender interest rates All lenders have increased their interest rates in line with the 0.75% RBA cash rate increase, but I expect some lenders to target specific areas of lending, e.g., low Loan to Value Ratios, or loan... Read more