Home Loans & Mortgages

First home buyers increase mortgage home loan approvals 10% as first home buyers grab home buying bargains.

A growing number of mortgaged homeowners are feeling the pinch and mortgage payment arrears are rising to 2 percent in some areas of Australia. Whilst this is still tiny compared to what has happened in the US, it should be a red flag to the RBA when considering any further rate rises. In fact some are now believing that the next interest rate move could be lower.

The Commonwealth Bank of Australia [CBA] has just dropped the home loan rate on its recently introduced ”no fee” home loan offer to 7.11% in response to other major players offering deep discounts in order to attract home buyers and mortgage refinance customers in a slow mortgage market.

Home loan repayments are set to soar as rampant economic growth might force two mortgage interest rate rises within six months, pushing up mortgage repayments, economists said yesterday. They said the central bank might lift official interest rates to a peak of 7 per cent, which could take the average variable mortgage rate from 7.75 [...]

Reserve Bank of Australia’s Governor, Mr Glenn Stevens gave a big hint as August as likely time for another move to increase interest rates. That would mean a flow on to mortgage home loan interest rates within days. Australia has three nice problems to have: A positive trade boom Mostly created by a mining boom [...]