RBA governor Philip Lowe has indicated that now is a good time for first home buyers to get a foot on the property ladder, saying that current conditions have titled the market decidedly in their favour.Speaking at a parliamentary panel in Canberra on Wednesday, Lowe was asked if young Australians should take advantage of the current interest rate environment and consider purchasing their first home.While he was reluctant to provide any sort of financial advice, the RBA boss admitted that “it's actually a good time, if you're a first home buyer, to buy the property you've wanted.”"And many first home buyers must agree with me because demand from first home owners at the moment is very strong,” he said.Along with record low rates, there are several government programs designed to help young Australians, including the First Home Owners Grant, which subsidises the purchase or construction of new homes, and the First Home Loan Deposit Scheme.Lowe brushed aside concerns that an influx of buyers would send prices soaring, arguing that growth in the market will be restrained by international border closures and weak population growth.He also weighed in on the federal government’s proposal to revise responsible lending obligations, saying it’s “the right direction to be heading in.”The changes hope to free up the flow of credit by allowing banks to take applicants at their word when disclosing income and spending, rather than relying on their own verification processes.
The latest Reserve Bank cut has, unsurprisingly, served as the catalyst for another round of widespread changes to home loan interest rates, with a majority of lenders having reduced rates over the past month.
If saving money on your home loan in 2021 is what you’re after, then you've come to the right place. Discovering a great value home loan could mean the difference between tens of thousands of dollars saved in interest over the course of your loan, but in practice it can be hard to find the best option amongst the dozens of different lenders and rates on the market.
Borrowers are being urged to beware of the banks' fixed rate home loan offers after analysis by Mozo.com.au found that some banks are luring in borrowers with ultra low fixed rates that revert to extremely uncompetitive variable rates once the fixed loan term ends.
The coronavirus pandemic and resulting economic crisis have forced business to re-examine, if not completely overhaul the way they operate, and few sectors have pivoted as emphatically as the banking sector.Today, the Australian banking world looks a lot different than it did a year ago. From mortgage deferrals to new payment methods, rock-bottom interest rates to stricter credit controls, we look at some of the ways banks have adapted in 2020.