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Earlier this month the RBA put a hold on the rate hike cycle, much to the relief of many mortgage holders. With rates currently sitting at an average variable rate of 6.58%, and a general feeling that we’re coming closer to the end of the hike cycle, some borrowers might be wondering if there are any banks that have begun to cut their rates.
With interest rates on the rise, the inflation of food, petrol and services also trending upwards, and the average paycheck finding it hard to keep up with these rising costs, most of us are sharply focused on how we spend our money.While it's hard to quickly increase your income, reducing your outgoings can be easier than you think by making smarter choices that could stretch your budget out further. Even small savings can quickly add up and make a big difference to your family’s budget.So if you’ve got money on your mind and are looking for some easy ways to spend less on your household expenses without making any radical changes, read through our 8 tips to help your budget go the extra mile.
The latest data from property watchdog CoreLogic reveals home values across Australia fell -5.3% in the year to June 2023. This decline flows from the significant price plummet Australia experienced nationwide last year.
Interest rates and property prices are closely related. This is because the cost of financing a home loan greatly impacts whether people can afford to buy property: more buyers, more competition, which means higher prices. While the Australian property market can be hard to predict, watching interest rates can give us a good idea of where it may be going.
Over the last two months, NAB, Westpac, and Commonwealth Bank have all announced they will lower the home loan ‘stress test’ for select refinancers from the standard 3% to 1%. For eligible borrowers, this means instead of having to qualify for mortgage rates as high as 9%, they may only have to pass 7%.
The year certainly kicked off with a bang. Despite interest rates climbing to an eleven-year-high, property prices made an astonishing recovery after last year’s 8% fall. Mortgage holders refinanced billions worth of home loans while average rents surged at record rates. But now, halfway through the year, the economic tide shows signs of turning.
Australia remains a landlord’s market, according to Domain. Its latest rental report revealed an eye-watering wave of rent hikes across the country over the last year, which may make it difficult for renters keen to save for a home loan.
The permanent security of a home is something we all strive for.
Against all opinions, the Reserve Bank of Australia (RBA) did not hold interest rates steady in June. Instead, the bank maintained its hawkish bias by adding another 0.25% to the official cash rate to chase down runaway inflation.
Digital home loans are on the rise in Australia, and as borrowers seek out faster, easier ways to control their finances, neo-lenders are emerging as real challengers to the banks in 2023.