Home Loans & Mortgages

Australia’s strong economy, lower unemployment rates, a higher $AU dollar and raising housing and rental values, we should expect higher mortgage interest rates in 2010.

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 [...]

The fact is that the banks are not the home loan market, or the housing market; they represent a minor part of it, but they have an unfair amount of power, and have used that power in my view to profiteer on the back of the mortgage belt, at a time when other businesses were suffering.

Australian homeowners and renters on hurting over mortgage rates, reduced family support, housing bubble concerns. Home buyers are disinterested.

So perhaps the RBA hinted interest rate rise won’t happen in June, even thought its still likely and we predicted it last month. New facts have emerged since then.

Some economists now say that home loan interest rate rise could push homeowners and renters over the top as mortgage rates for homeowners and landlords would increase the cost of living. It would also make home buyers stay away from the housing market and further add to falling home values. That would have to hurt bank profits.

Australian mortgaged homeowners, those renting and potential home buyers are in the main taking the two home loan interest rate rises that occurred earlier this year in their stride.  Nearly 60 percent of Australia’s homeowners with existing home mortgages said that the higher official interest rates have had little on their weekly budgets and spending habits, according [...]