Home Loans & Mortgages

If you can get a better loan interest rate just by asking, what does that tell you about the bank? Its ripping all their clients off! So why would you continue to do business with them at all? As an analogy, if you discovered your baker was taking a slice out of every loaf he sold you for the last two years, would you be happy if he just said he would stop robbing you from now on? No. So why does this logic not apply to home loans?

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.

Adelaide Bank’s shared equity home loan The Adelaide Bank is the first bank in Australia to launch a shared-equity home loan which could make property ownership easier, but analysts warn it could boost house prices. The Shared Equity Mortgage [Equity Finance Mortgage] is a home loan product that allows home owners to borrow as little [...]

Mortgage loan exit fees [really deferred establishment fees by another name] have become a way on chaining homeowners to their bank loans.

Melbourne Australia’s Liberman family has entered the fledgling shared equity home loan business through a $25 million investment in an unlisted fund recently launched by Macquarie Bank-affiliated Rismark International. Its LJCB Investment Group has bought into the first of several planned Equity mortgage funds from which Rismark hopes to corner the shared equity home loan market. [...]