Home Loans & Mortgages

The Reserve Bank is ready to pull the trigger on interest rates. Inflation is getting a bit on the high side and unemployment looks like falling even lower, so the RBA will feel compelled to raise rates. However if the CBA and other baks follow suit, then they will have done the RBA’s job, and official rates could remain as they are for now.

The way some people see it, BankWest head of mortgages John Rolfe holds the key to profitability in the nation’s $600 billion mortgage market. The theory goes like this. BankWest’s aggressive parent HBOS, having already caused chaos in the cosy banking industry by hiking deposit rates, is ready to move to the asset side of [...]

Homes loans have become complicated
Can you remember the days when comparing home loans was easy? I can. All you had to do was pick the one with the lowest interest rates! And you would have been right.
Comparison rates
Now its not so simple. What about the comparison rate? Well….

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.

If the Mortgage Broker explains to the customert that they are offering a no cost home loan service to them, because the lenders are paying them a commission for introducing the home loan to the lender, they are being honest in my view.
If on the other-hand the mortgage selected favours the mortgage broker and his or her own personal interest, then it seems to me that the mortgage broker would have to be considered dishonest.