Home Loans & Mortgages

Just to give you a quick run down, the eight most common mistakes that I often discover in a home loan application are:

1. There are too many credit enquiry notations on your credit file.
2. Your loan submission is poorly written.
3. Your proposed home is appraised lower than the agreed purchase price.
4. Your chosen lender says you have insufficient funds, as savings, deposit, or your income level does not qualify you for the loan you seek.
5. You have changed jobs, employers or job status recently.
6. You have no savings history, or an irregular savings pattern.
7. You or your partner have an undisclosed bad credit or poor credit history.
8. You chose the wrong lender and your security is declined.

In a shock move the board of the Reserve Bank of Australia has put off any interest rate increases for the time being. The reason seems to be that the Greedy Banks such as Westpac, who had shamelessly hiked home mortgage rates above the last cash rate increase, had done the damage that a rate increase would have done this week, so no rate increase was called for it seems.

Australia needs a national housing affordability strategy now to deal with an increasing home ownership and rental crisis, Labor leader Kevin Rudd says. Mr Rudd today said the Federal Government had failed to act on the crisis which was locking out first-home buyers and low-income earners from the housing market. He said Labor planned to [...]

The major banks will have to raise mortgage interest rates, without the Reserve Bank moving rates sooner or later, and the RBA knows this.
The RBA can now sit back and watch the major banks squirm, knowing they’re under pressure to raise rates. This tension will create more uncertainty of a rate rise in November and by then the banks will have to move on mortgage rates even if the RBA sits on its hands. Result? The RBA can leave interest rates as is because the major banks will do its job for them.That is, if cooling the housing marking further is one of its aims.

Mr Mortgage has been saying for over a year that the housing shortage experienced in Australia’s Capital cities can only be addressed by a Government level controlled Land development roll out, unfettered by Councils delaying building approvals and Land Developers sales tactics that maximise the cost of land for the consumer.