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Writer's pictureJustin Cornock

The Roundup - Goodbye January






Good Morning and Happy Monday,

I hope you all had a great weekend and stayed cool and safe.


As we say goodbye to January the banks and media have ramped up with multiple articles as expected around what the RBA will or won’t do tomorrow. My pick is it won’t cut rates. I think with continued talk about housing prices still moving up, inflation ticking up slightly, the First home Loan deposit scheme to name a few will see the RBA hold for a while longer.


I read one article that lead with a For the first time in recorded history, more than half of broker-originated investment home loans have been lodged with non-major lenders, new data has revealed. Big headline indeed and while it might be true, It’s a big call to say the first time in recorded history lol


Once we get over this hurdle of the RBA tomorrow it’ll be back to business and a slow grind as more banks jostle for position, hopefully making it more attractive on the rate side of things again for clients buying or refinancing.


I think the only thing that could possibly slow things down more than they already are, would be more lending restrictions. I read an article in Mortgage Business from Charbel Kadib. The article seemed to think this is possible according to ING’s chief economist Robert Carnell, citing property growth stimulated by the RBA’s rate cuts. He also believed that it could also prompt APRA (Australian Prudential Regulation Authority) to introduce more lending curbs. The reality of this would be terrible as its already difficult to get things done in an acceptable time, for Clients and Vendors.


Some of the best rates for borrowing of $500k under 90% Loan to Value Ratio 3yr Fixed come from ING at 2.84% and Plan Lend at 2.85%

Variable rates under 90% LVR coming from Suncorp at 3.03% and St George at 3.04%

Under 80% LVR it drops to 2.80% with Teachers Mutual Bank on a basic variable, Adelaide Bank are the next best though at 2.98% with Offset, which is also available on their fixed products.


I found it interesting to note this week that the online brand Kogan has now ventured into Insurance, Motor Vehicle Brokering, Energy and Superannuation! A one stop shop nearly.

I think we will see this more and more, as many brands diversify and attempt to fill the gaps in their income.


I hope your week is positive and productive. I am here if you need assistance.

JC

Scenarios and interest rates quoted above are suggestions and constitute general advice only.


Justin





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