ANZ has made its decision....finally. They have decided to pass on 0.20% of the RBA 0.25% cut. Seems like a long time to wait to receive what most had already predicted would be the pass through rate.

The Silence is deafening!!

Banks have yet to make a move following the RBA decision to cut the official cash rate by 0.25%pa. Who will be first?

RBA Cuts official interest rates again this year.

RBA has again cut the official interest rate, this time by 25 basis points. The cash rate now stands at 3.25%. All eyes will now be on the lenders to see how they respond. Should be more happy days for mortgage holders.

Keep up to date by following us on our blog and Facebook page.
http://www.facebook.com/pages/Mortgage-Choice-in-Leichhardt/199211476806772

Fixed Rates Fall Again

Fixed rates are continuing to fall as lenders bid for market share. We are now helping clients secure 2 and 3 year fixed rates at 5.54%pa, and with 5 year rates also available below 6.00%, it certainly is a great time to look at whether a fixed rate option will be beneficial to you and your circumstances. Talk to me today.

The cash rate has been left at 3.5%.

RBA decides to leave rates on hold despite the public's call for further rate cuts. Whilst most lenders are now offering rates well below 6.00%pa, a rate cut today would have been welcomed by many mortgage holders.

Guide to buying a house & Property Market Update

We've just come across this great little Guide to Buying a House, with 10 tips.  This looks like it would be a great help to those who are new to the property market.  Have a look and let me know what you think.

Also, it's a great time to buy now.  The RBA has dropped rates to 3.5% and so far ANZ have passed on the full reduction, we're still waiting to see what the other banks are doing, but it's looking good.

There's a lot of properties on the market, so if you're looking for a good buy, now is a great time to be house shopping.

Please give me a call to make sure that your finances are ready to go when you find that property you're looking for.  Also, check out our website for lots of tips and tools to help you along the way.

Buyers circle to beat stamp duty

If you're in the market to buy an investment property  - or even thinking about it, here is a great incentive to get you moving!

It's simple really - buy a property that is about to be built for less than $600,000, exchange before July 1, 2012 and you can save up to $22,000 on stamp duty.

Read more

House hunters and investors are expected to flood the new-apartment market in the next six weeks as buyers countdown to the end of the government's stamp duty exemptions for homes that haven't yet begun construction.

With savings of up to $22,000 for homes less than $600,000, many buyers will be keen to exchange contracts before the cutoff date for the NSW government's Home Builders Bonus on July 1.

If we can help with finance, please call or email and check out our website for lots of great tools and tips.

Rate Cuts & Budget - What do they mean for you?

We've come across a great clip on SMH explaining the implications of May's interest rate cut and the latest budget - and how they are likely to effect you and the property market... and we're happy that it's good news!

Watch the clip to find out more

We've also got a great little tool on our website to help you calculate the difference that you could make to your mortgage by making extra repayments.  Check it out here.

If you need help with your financing, please call me on 9564 0700 or email.

RBA cuts official interest rate by 0.5%

Great news for mortgage holders or soon to be mortgage holders following the RBA decision to cut the official interest rate by 0.5%. Let's hope that lenders follow suit and pass on the full rate cut.

A great time to invest

Low interest rates, below par property prices and a glut of available stock are promising signs for savvy property investors.


Already this year the property market has seen an increase in investor activity as many hone in on the opportunities available. The latest ABS housing finance figures show that the value of investment housing loans rose by 4.4% in February 2012 to $6.9 billion, seasonally adjusted. This is a 6.6% increase on the same month last year and is noticeably above the yearly average of $6.6 billion.   


Investors who have their finances in order, and who have conducted thorough research, may find windows of opportunity in today’s property market. 


The latest figures from RP Data show that in January there were over 287,000 residential properties for sale in Australia, which is approximately 30% higher than the same time last year. The glut of available properties in some states could provide investors with prime pickings, particularly if prices have also fallen in the region. According to the same research, property values fell over the three months to December 2011 in all capital cities except Sydney and Hobart, which moderately rose by 0.7% and 1% respectively. 


Other encouraging signs for investors include relatively low interest rates, and in some areas, rental price growth and low rental vacancy rates. The latter is influenced by Australia’s housing undersupply issue. The latest ABS building approval figures show a fall in February, the fifteenth consecutive monthly drop. With fewer new properties being built, vacancy rates should remain tight and we are bound to see further pick up in rental price growth. Already, RP Data’s latest research shows capital city rents over the past 12 months have increased by 7.1% for houses and 4.2% for units. 


Rental yields are also showing positive signs of improvement. Gross rental yields over the 12 months to December 2011 have improved, with yields for houses rising to 4.4% from 4.0% and units increasing to 5.1% from 4.7%.  


When choosing what type of property and where to buy, it is a good strategy to invest in a dwelling that is well located, highly regarded by renters and priced appropriately. Ideally, the property will be in close proximity to amenities, shops, public transport and have appealing features, such as off-street parking. 


Of course, there are tax and legal ramifications associated with property investment, and it is always a good idea to get professional advice from an accountant or solicitor before settling on a strategy.


Prospective investors should be aware that lenders generally limit their loan to value ratios - LVRs - to 90% of the purchase price. However, some lenders may consider a higher LVR, depending on the individual borrower so it pays to shop around. Keep in mind, when the LVR is 85% or above, a genuine savings deposit of 10% is required, which can be savings held over a period of at least three months, equity in an existing property, etc. Borrowers should investigate the finance side of any purchase early on to ensure they satisfy their chosen lender’s requirements.” 


Mortgage Choice provides the following five tips for potential property investors: 


1. Research your property options – Conduct thorough research before settling a property investment strategy. If you are not confident in your ability to find a suitable investment property, seek assistance from a buyers’ agent. Before committing to any property purchase, it is a good idea to discuss your plans with an accountant and/or financial planner. 


2. Pre-approve your property loan – Talk to a professional mortgage broker about getting a home loan pre-approval. This gives you an understanding of what you can comfortably repay and afford to buy. It allows you to shop with greater confidence, whether you are bidding at auction or negotiating a purchase.  


3. Look into LMI – If you decide to access the equity in your existing property to purchase another and you borrow more than 80% of the property’s value, you will probably need to pay lenders’ mortgage insurance (LMI). This can be quite costly, ranging from hundreds of dollars to tens of thousands. A professional mortgage broker can provide up-to-the-minute information.  


4. Choose a suitable loan structure – There are a number of factors to consider when deciding on the type of loan structure to suit your investment strategy. This could include how to tie in any existing loans, what loan features will help you achieve your financial goals (eg. offset account, redraw facility), which loan suit your needs (ie. interest only loan or principal and interest, fixing part or all of your loan, etc).  


5. Build a financial buffer – Be prepared for the longer-term peaks and troughs of the property cycle by building a financial buffer of at least 1-2% to cope with additional expenses including lenders’ interest rate rises, property maintenance and repairs, and/or the loss of a tenant or rent arrears. Remember that regular income from any investment is not a certainty and capital gains don’t appear overnight.


If you'd like to talk to us about any financing requirements that you have, or would like a referral to property investment specialists, please give me a call.  There are some great opportunities to be taken at the moment!  02 9564 0700 or email phillip.stabile@mortgagechoice.com.au.


Check out our website for more tools and tips www.mortgagechoice.com.au/phillip.stabile

It pays to have someone watching out for you!

April is a busy month, with public and school holidays, the Easter Show and of course ANZAC Day. 

With so much activity its fair to say that your property search or home loan health check may have taken a back seat and with both lenders and the Reserve Bank seemingly doing their own thing, its important to be on top of the changes, and their impact on your existing or proposed home loan. That's what we do best.

Make the most of your investment dollars

Great tips from SMH if you're thinking about investing in property...


Knowing your limits and the market will help to expand your property portfolio.


Why do some people struggle to buy one investment property and yet others manage to own five or six? The answer isn't simply that they have more money.


Investors who are creative in their approach to financing and who thoroughly research the important real estate indicators routinely achieve their goals faster and with less hassle.  Read more

Please let me know if we can help you with your finance 9564 0700 or email phillip.stabile@mortgagechoice.com.au.  Our website has lots of great tools and tips too. 

It's a great time to buy!

According to recent auction results in Sydney, now is a great time to buy.

With more than a month since the auction season began, the results are looking good for buyers.  There are lots of properties on the market and a strong clearance rate - but still room for improvement and negotiation ... read more about these indicators and what they mean.

Whether you're a first home buyer, upgrader or investor, ramp up your house hunting this weekend and schedule a few open houses.

If we can help, please let me know 02 9564 0700 or email phillip.stabile@mortgagechoice.com.au, or check out our website for lots of great tools and tips. www.mortgagechoice.com.au/phillip.stabile

Focus on features not rates

It's really easy to get caught up in the rate that your lender is charging you.  Is it competitive?  Do they move when the RBA moves?  Do they just seem to do whatever they want whenever they want?

It's hard not to get caught up in that.  It's your money!

But what is also important are the features of your home loan.  A cheaper rate may not offer you the flexibility you need.  They may also charge higher fees.  It just might not be the best matched loan to your circumstances. 

Read more about what to look for, and if you have any questions or concerns over your current home loan, please call or email.  9564 0700 or phillip.stabile@mortgagechoice.com.au

Also, check out our website for lots of great tools and tips.  www.mortgagechoice.com.au/phillip.stabile

Are you making the right rate reaction?

Refinancing has saved customers on average $10,000 each according to the latest figures from Mortgage Choice.  Lenders’ recent interest rate movements can be bewildering, which makes now an opportune time to enlist our help!

We can do a health check on you current mortgage and make sure that it's meeting your needs, at a competitive rate.

Just give me a call and we'll arrange a time to meet. 9564 0700 or email phillip.stabile@mortgagechoice.com.au.

Or check out our website for some great tools and tips.

Now is a good time to buy!

We're always looking for the best time to buy a property - and right now is looking great.  The experts are predicting another interest rate cut in the next few months, Sydney prices are defying the nation's trend and are holding steady and even increasing, the banks are competitive - the outlook is rosy!

Here's a couple of stories from SMH that make interesting reading:

• Interest rates
• Property values

If we can help you arrange finance or if you want to know how much you could borrow, please give me a call 02 9564 0700 and check out our website for great tips and tools www.mortgagechoice.com.au/phillip.stabile.

Australian House Prices - Have they hit Bottom?

There seems to be some commentary out there to suggest that there are signs that Australian Property prices have or are close to hitting bottom. Sydney has been the strongest performer in a sluggish property market, seemingly bucking the trend. Is this the time to start looking to enter the market?

Interesting read:

http://www.smh.com.au/business/house-prices-may-have-hit-bottom-20120131-1qqlg.html

New Years Resolutions

So it's that time of year again where we often think about what we want to achieve, what we want to do differently, what we want more of, and what we want less of.

If your plans for the 2012 involve purchasing a new home, buying your first home, buying an investment property, making sure that your mortgage is the most suitable to your current circumstances, please give me a call!

We can help to arrange finance, do a home loan health check or point you in the direction of other professionals in the field. Check out our website for lots of good tools and info.

Happy New Year, and we look forward to hearing from you if there's anything we can do to help you achieve your goals for 2012.

Take care
Phillip