Home Loans & Mortgages

When the RBA lifted interest rates in November last year I said at the time that it was one rate rise too many. The RBA was at the time focused more on getting Interest rates to “normal levels”, when we are not in normal times Since then many people have agreed with me, including members [...]

The Reserve Bank is ready to pull the trigger on interest rates. Inflation is getting a bit on the high side and unemployment looks like falling even lower, so the RBA will feel compelled to raise rates. However if the CBA and other baks follow suit, then they will have done the RBA’s job, and official rates could remain as they are for now.

With most mortgage interest rate crystal gazers, Mr Mortgage included, expecting the RBA to increase the cash rate by 0.5% this this year, it might be tempting to think about fixed interest rate.

The two things against this are that we have seen base rates rise by nearly 2% since the GFC, and that was the time to fix. The other reason this might be a bad idea is that the RBA talks about rate rises a lot more than it actually raises the cash rate.
The motives for raising interest rates are skimpy.

The Commonwealth Bank of Australia CEO gives his version of Banana-gate to signal mortgage rate increases. Whether you believe that the banks are paying more for their money or not is irrelevant, Australia’s banks are gearing up to ramp up rates over and above any further RBA mortgage interest rate hikes. The biggest reason for [...]

It is beginning to look like Australia will dodge the recession bullet. Australians’ confidence in the future have risen its best level in nearly two years, as home buyers and homeowners grew more optimistic about an early economic recovery. A predicted slide in house values hasn’t happened, and in many parts of the economy its business as usual.