Recent reports suggest that the rise in fixed home loan rates may be a sign that the Reserve Bank’s (‘RBA’) series of rate cuts are coming to an end. The country’s largest home loan lenders have begun adjusting their fixed home loan rates in expectation of an end to the RBA’s rate cuts.
In the past few weeks, all four major banks have raised some of their fixed home loan rates, as the housing market heats up. For example, the Australian Bureau of Statistics reported that building loans for new residences jumped by 14.4 per cent in September.
According to the Financial Ombudsman Service (‘FOS’), complaints and disputes between consumers and banks have fallen for the first time since the global financial crisis (‘GFC’). The number of recorded disputes declined by 11% to 32,307, a first since the 2008/09 GFC period.
The FOS attributes the fall to low interest rates, new rules on flood insurance, and regulatory changes to the hardship programs of banks. Chief Ombudsman Shane Tregillis said that much of the improvement was due to the 22% decline in financial hardship disputes. Disputes resolved without an Ombudsman’s ruling remained steady at 70%.
There are various types of loan products that are available for individuals today. However, the ones that are most sought after have remained the same in a while and their popularity still persists. Continue reading
The government of Australia is considering a demand for imposing a 10% consumption tax on online purchase of goods, below $1000. Continue reading
With the possibility of a hike in the interest rate, the first home buyers are warned not to let their budget, go out of control. The important cause for this increase in index is the rise in the house price in Melbourne and Sydney. Limited wage increase and soft labour market in Victoria and New South Wales are the other factors. Continue reading
The only problem with the Self-Managed Super Funds (SMSF) is that they bring up their own set of costs. The SMSF holders are charged more than $3000 for administration, tax return and other processes. This has put up SMSF behind, for a long time. The technological innovation and the internet have helped to provide a solution for it. Recently, the SMSF administrators are using online services to process transactions and charge the trustee for the number of hours, they spend. Continue reading
The big four banks are ready to announce a combined annual profit of $27 billion. It looks like the banks are making a record breaking profit. Does that by any chance affect the individuals? The answer is yes. Continue reading
Businesses need to consider a few essential matters when assessing a loan agreement, according to DynamicBusiness.com.au.
Businesses need to understand whether they should opt for a fixed or variable rate and what their repayments are schedules to be. Fixed rate loans provide more certainty but less flexibility with regard to early repayments. Variables rates vary in line with market conditions but offer more flexibility. It’s useful to check the default rate of interest which applies when the loan is in arrears.
Business owners should work with an advisor to determine the right kind of business finance for them, according to business.gov.au.
Line of credit
A line of credit is an amount of finance that is usually secured against property owned by the business owner. This type of loan is particularly flexible and the interest rates are low due to the collateral. On the flipside, business owners can lose their home if they fail to keep up with repayments.
Consumer Confidence has fallen but remains high following the recent Federal election, according to the Sydney Morning Herald.
Consumer sentiment fell by 2.1% in October, following a 4.7% increase in September.