Home Loans & Mortgages

If Obama’s the answer, then what is the question?
It’s the economy, Dummy!

Adelaide Bank has issued an earnings downgrade after intensifying competition in the mortgage lending sector forced it to remove premium pricing on its low-documentation home loans. The regional bank revised its earnings per share (EPS) growth forecast for fiscal 2007 to between 6c and 9c a share, down from 10c. The downgrade surprised the market [...]

Those that are in a position to buy right now, need to shop around and drive a hard bargain. There will be plenty out there right now. Remember what seems cheap now may seem too dear if prices drop further as they have done in the UK and the US recently. Cash is King in this housing market.

A recovering jobs market could be the trigger an interest-rate rise next month, or use tightening credit standards to curb housing demand.

Fitch Ratings found that Australia’s mortgage lenders and mortgage insurers could handle a 40 percent overall drop in property values, coupled with a home loan default rate of 8 percent.
Its important to realise here that this is a stress test modelling, not a likely scenario, according to Fitch.