Category Archives: Economy

Full rate cut benefits unlinely to flow to home loans

While the expectation that a rate cut is almost imminent next week, is expressed by most economists, there is significant doubt that borrowers will enjoy the benefits of a full rate cut. Most lenders are likely to decide to hold … Continue reading

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Demand for home loans recovering

Demand for home loans has shown a first sign of inquiry in eight quarters. This may serve as a strong indication that property price improvement will be next. The Veda Quarterly Consumer Credit Demand Index has shown the first increase … Continue reading

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Rate cut must be significant – Aussie John

John Symond, the chairman of Aussie Home Loans has called on the RBA to reduce interest rates sufficiently to ensure that borrowers receive the full benefit of a rate cut. Speaking to the Australian Financial Review, Mr Symond said the … Continue reading

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Fewer new homes were built during 2011

December 2011 quarter was extremely weak for new housing as suggested by figures issued by the Australian Bureau of Statistics. It does not come as a surprise to those in the mortgage industry or those involved in property and construction. … Continue reading

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Borrowers turning away from mortgage brokers

A recent study suggests that borrowers are turning away from using mortgage brokers and prefer to conduct their own research and home loan application. The QBE LMI Barometer has identified that 37% of home buyers in 2012 have used mortgage … Continue reading

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Aussies paying down debts and accruing equity

According to new research from ING Direct, Australians are paying down their debts faster and thus accruing greater equity in their property. This is very likely to lead to increased interest in property investment in the near future. According to … Continue reading

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ASIC concerned over NCCP breaches with low doc loans

The Banking and Finance Consumers Support Association  is concerned about the low doc lending practices of many providers of home loans.  There seems to be much emphasis in the marketing material of lenders on low doc home loans and especially … Continue reading

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Cash Loans lending suspended at Cash Store

The Cash Store, a payday lender with more than 80 shopfronts in Australia, had discontinued writing new cash loans on March 17, according to The Age. The Canadian-based lender was delayed by a number of days in offering loans, according … Continue reading

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Low doc home loans are not what they used to be

Low doc loans for a long time were used for borrowing significant amount of money without disclosing the true income of the borrowers. It was understood by all involved that the income being declare by the applicants had no correlation … Continue reading

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Economists expect home loan numbers to be lower this week

According to AMP chief economist, Shane Oliver, housing numbers expected to be out later this week will demonstrate a slight drop in the number of home loans written during March 2012, accompanied by a softening of consumer and business confidence. … Continue reading

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