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.

First home buyers increase mortgage home loan approvals 10% as first home buyers grab home buying bargains.

A lot of people are suffering from mortgage stress right now, and they need answers right now.
They can’t afford to wait for the Government to create competition in the mortgage industry, they need to refinance now, or risk losing their home to the greedy banks.
And that poses a couple of questions.

We need real competition for our four major banks who have been writing over 90% of all loans in recent times. We all need to demand the introduction of a real Government Sponsored Enterprise, like Freddie Mac or Fannie Mae in the US, that can create 30 year fixed rate mortgages.
And that brings up a question, and the question is this. Would you want a lower interest rate than you have now, that is fixed for the term of your mortgage?

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.