Analysis of the Irish housing market has sparked concerns for the Australian property market, reported the Broker News.
Ireland’s property values fell an average of 50% since 2007, and homeowners have lost a total of A$315 billion.
Australian 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.
A 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.
Economists 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.
New 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.
The Australian Finance Group (AFG) said that one in three new home loan borrowers chose fixed interest rate home loans in March.
AFG also published the AFG Mortgage index showing nearly 30% of all new home loans in March were fixed interest rate home loans. The high figures compare with 24.1% and 16.3% in January.
Australian home loan customers are using the advantage of low interest rates to get ahead on their home loan payments.
More than half of borrowers have used the current low interest rates to reduce their mortgages.
More 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.
Expectations 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.
The ANZ bank has decided not to reduce its variable interest rates after the Reserve Bank of Australia (RBA) held the current cash rate at 3%.
While funding rates have eased slightly, the bank said that this is only a limited reduction in the funding cost rises since 2007.