Home Loans & Mortgages

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.

NAB and Aussie Home Loans are the latest lenders to join the rush to cut rates, following ANZ’s lead.

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 any event the ANZ and National Australia Bank [NAB] have already scrapped mortgage exit fees, while Westpac Banking Group chief executive Gail Kelly told a Senate committee into banking competition in January that a ban was “not an overly big deal”. But was she telling the truth?
Because on theWeeend she was , saying that that’s a poor policy response by the Government.

Loan applications can be approved or declined based on these 8 credit checks. If you are thinking about applying for a home loan use these solutions to ensure your gets loan approved. With the recent credit tightening that is happening Globally, I estimate that more home loan applications are being initially declined than are approved. [...]