Banks Add Interest to Loans to Protect Australian Borrowers

HomeLoans3Australian banks are adding extra percentage points to new home loans to ensure home loan borrowers can continue to pay their loan over the long-term, reported the Herald Sun.

In the past, banks would add an extra 1.25% to 1.5% to standard variable rate (SVR) home loans. With Reserve Bank cash rates so low, loans are affordable and accessible.

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Reverse Mortgage Radio Show Launches in Texas

HomeLoans2A reverse mortgage radio show launched this year in Texas is providing weekly reports and advice, particularly on specialist home loans, reported The Reverse Mortgage Daily website.

Sente Reverse Mortgage show host, veteran reverse mortgage broker and vice president of Sente Mortgage, Scott Norman will expose the advantages and disadvantages of reverse mortgages.

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Economists Say Australian Housing Market on Smooth Rise

News2Economists say the Australian housing market is on the way up, with the increasing number of sales described as a ‘run’ and not a ‘boom’.

Most analysts anticipate single-digit housing price growth for the next three years or until interest rates start rising. The risk of housing prices falling is not an issue at the moment for buyers as housing is the most affordable it has been in the last three years, according to data provided by the Adelaide Bank/Real Estate Institute of Australia.

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New Changes to Guarantor Requirements to Help Home Buyers

First-Home-BuyersNew changes to guarantor requirements for mortgages will allow first home buyers without sufficient funds for their deposit to buy a home, said Carol King of Loan Market Maroochydore.

King said that Family and Security Guarantee Loans are now available because some lenders have recently amended their policies to remove restrictions for extended family guarantors.

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Fixed Rate Home Loans Most Popular with Queenslanders

Home-LoansMore Queenslanders are eager to get fixed rate home loans while Victorians are not, according to a report by Property Observer.

Fixed rate home loans were the most popular in Queensland at 23.05% of all new Mortgage Choice home loan approvals in February.

Mortgage Choice Spokesperson Belinda Williamson said that Queenslanders are choosing the peace of mind offered with fixed rate home loans.

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Expectations for Further RBA Rate Cuts in Australia

Interest-Rates8Expectations are growing that the Reserve Bank of Australia (RBA) will cut official interest rates, according to the Mozo website.

The number of home loan approvals fell in January after three previous months of decline.

HSBC Chief Economist Paul Bloxam said that Australians should not use the January figures as an indicator because rate cuts have not yet had time to impact on the market.

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