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Complete Lending Solutions Est 2002

Get in touch | cls@cls.com.au | 0427 257 257

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A blog about credit, interest rates,

the property market

and whatever else I feel like writing about.

It’s our own research.

It is not mass-produced editorial

where a business pays for its name

and logo to be inserted on it

and claims it as its own.

Did they not think that APRA has the last say?

On Thursday, 20 June 2019 Westpac made a bold move to reduce their serviceability assessment rate from 7.25% to 6.50% for first home buyers. APRA set a floor of 7.00% in December 2004. Late Thursday night, Westpac made an abrupt about-face back flip after incurring the prudential regulator's wrath by removing the it without approval. W...

June 20th, 2019

Responsible Lending – ASIC, Westpac and The Federal Court

The Federal Court of Australia, New South Wales | NSD293/2017 | Australian Securities & Investment Commission v Westpac Banking Corporation ACN 007 457 141.   In an opening submission on Monday, 6 May 2019 barrister for ASIC, Jeremy Clarke, SC, alleged that Westpac breached responsible lending laws 261,987 times between 2011 and 2015.  ...

May 7th, 2019

Official Cash Rate & Future Direction of Interest Rates – April 2019

The below graph plots the Implied Forward Interest Rate yield curve (blue line), and the Interest Rate Swap yield curve (red line).   The yield curve is interpreted as follows – (i) Short Term (less than 6 months) – the Reserve Bank to cut the official interest rate by 0.25%. (ii) Medium Term (12 months) – interest rates to be steady....

April 30th, 2019

Oh, by the way … this is what you will not find on our website!

Experts That we are experts, specialist and have 150 years combined experience, that we partner with our clients, continually exceed expectations, we are customer focused, or our lender panel has over 35 lenders that offer more than 2,500 products.   Biggest Financial Commitment We won't tell you a mortgage can be the biggest financ...

July 2nd, 2018

Is the Multi-Decade Bond Bull Market Over?

Yes! It is very likely that the 3-decade long bull bond market (lower interest rates) ended on 2 August 2016.   On this day, the 10-year Commonwealth government bond futures contract traded at 98.20 (equivalent to 1.80% yield) on the ASX 24 Futures platform (aka Sydney Futures Exchange). The 3-year Commonwealth government bond futures contrac...

June 24th, 2017

QED Realty Offers an Auction Bidding Service

Property Auctions Bidding at Auction need not be daunting or intimidating. Most auctioneers are predictable in their style in order to lull bidders into feeling secure. They also make efforts to create pressure and excitement so that an immediate sale may be secured under the gavel. But if you are able to read the auctioneer, size up t...

December 13th, 2016

Official Cash Rate & Future Direction of Interest Rates – December 2016

The Reserve Bank decided to leave the Official Cash Rate unchanged at 1.50% on 6 December, 2016.   Why did some lenders increased variable interest rates the day before the Reserve Bank board meeting? This is what the lenders have said. There is a need to regularly review interest rates for investment loans to ensure they reflect econom...

December 6th, 2016

Official Cash Rate & Future Direction of Interest Rates – August 2016

The Reserve Bank reduced the Official Cash Rate from 1.75% to 1.50% on 2 August 2016. Is the multi-decade bond bull market over? The 3 decade long bull bond market seems likely to be almost over because – 1. First, quantitative easing, bond purchases and negative interest rates are ineffective compare to the Global Financial Crisis. 2....

August 2nd, 2016

Nominal, Real and Complex Median House Price Indices

  House Price Indices Changes in house prices measured by this index are nominal house price movements. In isolation, this is not a true and accurate measure of property trends and price deviation from fundamental values.   What Drives Property Prices Demand The main drivers are – planning laws, particularly changes in dwelling de...

January 3rd, 2016

Implied 3 Month Forward Interest Rates

What does the Interest Rate Swap Yield Curve Imply? What is a Yield Curve? The yield curve shows the relationship between yield and the term to maturity, at any given point in time. It provides important information on what the wholesale market’s expectations are on monetary policy, economic activity and inflation. What is the Interest...

January 2nd, 2016