First Choice Home Loans

RBA Leaves rates on hold as expected

2010-12-08T20:05:00.002+10:00

Happy Christmas from the RBA!
Glenn Stevens has given his Christmas present to the nation and kept interest rates the same until 2011. What fabulous news for all home owners.
As you can see or may have already heard, the official cash rate has remained unchanged this month (4.75%) mainly due to concerns about the creditworthiness of a number of European governments.

This announcement is just what investors have been waiting for as many people believe that now is a great time to consider starting or increasing your property portfolio.

However, there is no guarantee that the financial institutions will not adjust their rates independently, so keep posted to the media over the next few days and weeks.

As always, if you have any questions or concerns about interest rates or how to invest in property we would be delighted to have a chat with you, Please call the office.

Lending institutions change their criteria all the time so it's always good to check in with us at least once a year to allow us to discuss your personal situation.
Sometimes a quick chat on the phone can help ease some unnecessary worries and put a new plan in place for you.

We hope you have a wonderful Christmas break and look forward to hearing from you soon.
Number 2010-30
Date 7 December 2010
Embargo For Immediate Release
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.
Since the previous Board meeting, concerns about the creditworthiness of a number of European governments have again become the main focus of financial markets, with a marked rise in sovereign bond spreads for some euro-area countries and an increase in volatility. At the same time, recent data suggest that the Chinese and Indian economies have continued to grow strongly and price pressures, particularly for food, have picked up in China as well as a number of other economies in Asia. Modest growth is continuing in the United States.
For Australia, the terms of trade are at their highest level since the early 1950s, and national income is growing strongly as a result. Recent information indicates that, as had been expected, private investment is beginning to pick up in response to high levels of commodity prices. In the household sector thus far, there continues to be a degree of caution in spending and borrowing, which has led to a noticeable increase in the saving rate. Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend.
Employment growth has been very strong over the past year, though some leading indicators suggest a more moderate pace of expansion in the period ahead. After the significant decline last year, growth in wages has picked up somewhat, as had been expected. Some further increase is likely over the coming year.
The exchange rate has risen significantly this year, reflecting the high level of commodity prices and the respective outlooks for monetary policy in Australia and the major countries. This will assist, at the margin, in containing pressure on inflation over the period ahead. Over the next few quarters, inflation is expected to be little changed, though it is likely to increase somewhat over the medium term if the economy grows as expected.
Following the Board's decision last month to lift the cash rate, and the subsequent increases by financial institutions, lending rates in the economy are now a little above average. The Board views this setting of monetary policy as appropriate for the economic outlook.

RBA raises rates on Melbourne Cup Day (again)

2010-11-02T14:52:00.000+10:00

ALL BETS ARE OFF!!
“SHOCKING!!” “SO YOU THINK!!” you could have predicted this…

The RBA have announced today that they will increase the cash rate by 25 basis points to 4.75 …….

Please find following this month's press release on the RBA's interest rate announcement.

The RBA have elected to increase rates this month due to the global economy grew faster than trend.
Number 2010-26
Date 2 November 2010
Embargo For Immediate Release

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.75 per cent, effective 3 November 2010.
The global economy grew faster than trend over the year to mid 2010. Global growth will probably ease back to about trend pace over the coming year as strong recoveries in the emerging world give way to a more sustainable pace of expansion and growth remains subdued in the United States and Europe. At the same time, concerns about the possibility of a larger than expected slowing in Chinese growth have lessened recently and most commodity prices have firmed, after a fall earlier in the year. The prices most important to Australia remain at very high levels, with the result that the terms of trade are at their highest since the early 1950s. The turmoil in financial markets earlier in the year has abated, though sentiment remains fragile.
Information on the Australian economy indicates growth around trend over the past year. Public spending was prominent in driving aggregate demand for several quarters but this impact is now lessening. While there has been a degree of caution in private spending behaviour thus far, the rise in the terms of trade, which is now boosting national income very substantially, is likely to lead to stronger private spending over the next couple of years, especially in business investment.
Asset values are not moving notably in either direction, and overall credit growth remains quite subdued at this stage notwithstanding evidence of some greater willingness to lend. The exchange rate has risen significantly this year, reflecting the high level of commodity prices and the respective outlooks for monetary policy in Australia and the major countries. This will assist, at the margin, in containing pressure on inflation.
The demand for labour has continued to firm. While the labour market is not as tight as in 2007 and 2008, some further strengthening would appear to be in prospect, judging by the trends in job vacancies. After the significant decline last year, growth in wages has picked up somewhat, as had been expected. Some further increase is likely over the coming year.
Given these conditions, the moderation in inflation that has been under way for the past two years is probably now close to ending. Recent information suggests underlying inflation running at about 2½ per cent, with the CPI inflation rate a little higher due mainly to increases in tobacco taxes. Both results were helped somewhat in the latest quarter by unusual softness in food prices. Inflation is likely to rise over the next few years. This outlook, which is largely unchanged from the Bank's earlier forecasts, assumes some tightening in monetary policy.
For some time, the Board has held the stance of monetary policy steady, which has resulted in interest rates to borrowers being close to their average of the past decade. This allowed some time to observe the early effects of previous policy changes and to monitor the uncertain global outlook. The Board is also cognisant of differences in the degree of economic strength by industry and by region.
However, the economy is now subject to a large expansionary shock from the high terms of trade and has relatively modest amounts of spare capacity. Looking ahead, notwithstanding recent good results on inflation, the risk of inflation rising again over the medium term remains. At today's meeting, the Board concluded that the balance of risks had shifted to the point where an early, modest tightening of monetary policy was prudent.
Even though the RBA have only increased the cash rate by ................ this is by no means a guarantee that the major lenders will not adjust their rates independently over and above the RBA rise as has been hinted at over the last few weeks. So keep posted to the media over the next few days and weeks to see how the majors react to todays announcement.

If you have any questions about your current loan or if you are interested in a review of your financial situation, please give us a call, we look forward to hearing from you soon.

First Choice Home Loans set to merge!!

2010-10-06T21:41:00.000+10:00

This is HOT news. We are about to merge with another Mortgage Broking business....Money Advantage operated by Michelle Murchison and her loans Manager Tony Smith.

Our new business will have a new name that reflects what we do and what we are...we hope you like it.....MONEY-SMART.

As I am now a licensed Financial Planner, our new enterprise can offer a holistic financial solution to all our clients....not only can we get you the best mortgage, we can show you how to get rid of it quicker, protect yourslef and your lifestyle along the way and also create some wealth for your future.

The existing First Choice Home Loans staff are still here to help you....myself, Robyn and Sandy.

Shortly we will be writing to all of you to advise you officially and to give details of client info nights close to you. The merge is planned to happen around December 1st and I promise to keep you posted.

We hope you are as excited as we are about our new venture.

Rates on hold for now!

2010-10-06T21:28:00.000+10:00

Hi guys....below is the RBA Governor's latest statement on interest rates.

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.

The global economy grew faster than trend over the year to mid 2010, but will probably ease back to about trend pace over the coming year. Recent information is consistent with a more sustainable, but still strong, pace of growth in China and most of the Asian region. In Europe and the United States, growth prospects appear to be modest in the near term, a legacy of the financial crisis and its impact on private and public finances. Financial markets are still characterised by a degree of uncertainty, and are responding both to differences in growth outlooks between regions and evident strains on public finances and banking systems in several smaller countries in Europe. Most commodity prices have changed little over recent months, and those most important to Australia remain very high.

Information on the Australian economy shows growth around trend over the past year. Public spending was prominent in driving aggregate demand for several quarters but this impact is now lessening, while the prospects for private demand, and in particular business investment, have been improving. This is to be expected given the large rise in Australia’s terms of trade, which is now boosting national income very substantially.

Asset values are not moving notably in either direction, and overall credit growth is quite subdued at this stage, notwithstanding evidence of some greater willingness to lend. Inflation has moderated from the excessive pace of 2008. The effects of the rise in tobacco taxes aside, CPI inflation has been running at around 2¾ per cent over the past year. That looks likely to continue in the near term.

The current stance of monetary policy is delivering interest rates to borrowers close to their average of the past decade. The Board regards this as appropriate for the time being. If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.

RBA Leaves rates on hold as expected

2010-09-07T14:47:00.000+10:00

The Reserve Bank of Australia has decided to keep the official cash rate on hold at 4.5 per cent for the fourth consecutive month.

Uncertainty surrounding the global economic outlook, consumer spending and Australia's political situation forced the Board to leave rates unchanged.

Rates have been on hold since May. Prior to that, concerns about rising inflation forced the RBA to lift rates by 25 basis points in March, April and May.

While local economic data shows the Australian economy has grown at the fastest pace in three years, ongoing economic uncertainty abroad ultimately forced the RBA to err on the side of caution when making the latest rate decision.

"The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth in the near term likely to be close to trend, inflation close to target and with the global outlook remaining somewhat uncertain, the Board judged this setting of monetary policy to be appropriate for the time being," RBA governor Glenn Stevens said in his statement on monetary policy.

The news did not come as a surprise, with many economists predicting the RBA would leave rates unchanged when it met in Adelaide today.

AMP chief economist Shane Oliver said the stronger than expected data culminating in above trend growth in the June quarter was balanced against uncertainty regarding the global outlook and expectations that inflation is likely to remain within the target range over the year ahead.

RESERVE BANK LEAVES RATES ON HOLD

2010-08-03T22:11:00.000+10:00

Surprise, surprise there is a finance God after all!

We are excited to bring you this month's press release on the RBA's interest rate announcement. What fabulous news for all home owners and investors this month.

As you can see or may have already heard, the official cash rate has remained unchanged this month mainly due to the global economy growing faster than trend over the year to mid 2010.
This announcement is just what home owners and investors have been waiting for as many people believe that now is a great time to consider starting or increasing your property portfolio.

This is by no means a guarantee that the financial institutions will not adjust their rates independently, so keep posted to the media over the next few days and weeks.

As always, if you have any questions or concerns about interest rates or how to invest in property we would be delighted to have a chat with you, Please call the office.

Lending institutions change their criteria all the time so it's always good to check in with us at least once a year to allow us to discuss your personal situation.
Sometimes a quick chat on the phone can help ease some unnecessary worries and put a new plan in place for you.

Number 2010-16
Date 3 August 2010
Embargo For Immediate Release

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.

The global economy grew faster than trend over the year to mid 2010. The expansion has been uneven, with the major advanced countries recording only moderate growth overall but growth in Asia and Latin America very strong. There are indications that growth in China is moderating to a more sustainable rate as policies are now less accommodating. Similar adjustments to policies and growth rates are occurring in other countries in the Asian region. In Europe, while output in some key countries has been improving significantly, prospects for next year are more uncertain given planned fiscal contraction. US growth was stronger in the first half of 2010 but the pace of labour market improvement has been slow and the expansion may be somewhat lacklustre in the second half of 2010. Overall, the Bank expects global growth to be about trend over the coming year.

The caution evident in financial markets in the past few months has abated of late, helped by the disclosure of information about European banks. Nonetheless, the global outlook remains somewhat more uncertain than a few months ago and this is reflected in the volatility of financial prices. Commodity prices are off their peaks but those most important for Australia remain at very high levels, and the terms of trade are around their peak of two years ago.

With the high level of the terms of trade expected to add to incomes and demand, output growth in Australia over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing. Consumption spending is recording a modest increase at present, with households displaying a degree of caution, but most indicators suggest business investment will increase over the coming year. Business credit has stabilised, though credit conditions for some sectors remain difficult. Credit outstanding for housing has continued to expand, but the upward pressure on dwelling prices appears to have abated.

The labour market has continued to firm gradually, and after the significant decline last year, growth in wages has picked up a little, as had been expected. Recent data for inflation were consistent with the Bank’s May forecasts, with underlying inflation declining to about 2¾ per cent, the lowest rate for about three years. The rate of CPI increase was a little above 3 per cent due to the effects of increases in tobacco taxes announced earlier in the year. Through to mid 2011, underlying inflation is likely to be in the top half of the target zone, while CPI inflation will probably be just above 3 per cent for a few quarters due to the impact of the tax changes and increases in utilities prices.

The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth likely to be close to trend, inflation close to target and the global outlook remaining somewhat uncertain, the Board judged this setting of monetary policy to be appropriate.

We look forward to hearing from you soon.

Relief Again!

2010-07-06T21:41:00.000+10:00

We are excited to bring you this month's press release on the RBA's interest rate announcement. What fabulous news for all home owners and investors this month.

As you can see or may have already heard, the official cash rate has surprisingly remained unchanged this month.
This is by no means a guarantee that the financial institutions will not adjust their rates independently, there so keep posted to the media over the next few days and weeks.

As always, if you have any questions or concerns about interest rates or how to invest in property we would be delighted to have a chat with you, Please call the office.

Lending institutions change their criteria all the time so it's always good to check in with us at least once a year to allow us to discuss your personal situation.
Sometimes a quick chat on the phone can help ease some unnecessary worries and put a new plan in place for you.

We look forward to hearing from you soon.
Number 2010-12
Date 6 July 2010
Embargo For Immediate Release

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
The global economy has continued to expand over recent months, consistent with a trend pace of growth. The expansion remains uneven, with the major advanced countries recording only modest growth overall, but growth in Asia and Latin America, to date, very strong. There are indications that growth in China is now starting to moderate to a more sustainable rate. In Europe, while output in some key countries has been improving recently, prospects for next year are more uncertain given the budgetary constraints governments face and the pressure on euro area banks. US growth has looked stronger in the first half of 2010 but the pace of labour market improvement is slow.
Caution in financial markets has been evident in the past couple of months, driven principally by concerns about European sovereigns and banks but also by some uncertainty about the pace of future global growth. Financial prices have been more volatile and equity prices and government bond yields in major countries have declined. Some tightness in funding markets is evident, though not on the scale seen in late 2008. Commodity prices are off their peaks but those most important for Australia remain at very high levels, and the terms of trade are approaching their peak of two years ago.
With the high level of the terms of trade expected to add to incomes and demand, output growth in Australia over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing. Consumption spending is recording a modest increase at present, with households displaying a degree of caution, but most indicators suggest business investment will increase over the coming year. Business credit appears to have stabilised, though credit conditions for some sectors remain difficult. Credit outstanding for housing has continued to expand at a solid pace, but dwelling prices are rising more slowly than earlier in the year.
The labour market has continued to firm gradually, and after the significant decline last year, growth in wages has picked up a little, as had been expected. Underlying inflation appears likely to be in the upper half of the target zone over the next year. The rate of CPI increase is likely to be a little above 3 per cent in the near term, due to the effects of increases in tobacco taxes announced earlier in the year and significant increases in prices for utilities.
The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. Pending further information about international and local conditions for demand and prices, the Board views this setting of monetary policy as appropriate.

RESERVE BANK LEAVES RATES ON HOLD

2010-06-10T21:02:00.002+10:00

Surprise, surprise there is a finance God after all!

We are excited to bring you this month's press release on the RBA's interest rate announcement. What fabulous news for all home owners and investors this month.

As you can see or may have already heard, the official cash rate has surprisingly remained unchanged this month mainly due to …

This announcement is just what home owners and investors have been waiting for as many people believe that now is a great time to consider starting or increasing your property portfolio.

This is by no means a guarantee that the financial institutions will not adjust their rates independently, so keep posted to the media over the next few days and weeks.

As always, if you have any questions or concerns about interest rates or how to invest in property we would be delighted to have a chat with you, Please call the office.

Lending institutions change their criteria all the time so it's always good to check in with us at least once a year to allow us to discuss your personal situation.
Sometimes a quick chat on the phone can help ease some unnecessary worries and put a new plan in place for you.

We look forward to hearing from you soon.

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
Since the Board last met, concerns about sovereign creditworthiness in several European countries have been a focus of financial markets. Investors have generally displayed a good deal more caution. As a result, equity prices have fallen and long-term government bond rates have declined outside of the countries most affected by the sovereign concerns. The Australian dollar fell sharply as part of this adjustment. Commodity prices have also softened, though those important for Australia remain at very high levels.
European policymakers have responded by assembling a large package to provide financing for the relevant countries for a period of time, stabilise bond markets and provide liquidity. They have also committed to action to bring budget deficits down and stabilise debt over time.
The effects of these various factors on the world economy will need to remain under review. At this stage, global growth is still expected to be at about trend pace in 2010. Conditions in Europe overall have been relatively weak, and the foreshadowed budgetary tightening will probably mean that this will continue, but growth is becoming more established in North America. In Asia, growth has continued to be quite strong and may need to moderate in the year ahead.
In Australia, with the high level of the terms of trade expected to add to incomes and demand, output growth over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing. Inflation appears likely to be in the upper half of the target zone over the next year.
Consistent with that outlook, and as a result of actions at previous meetings, interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago. Taking all the available information into account, the Board views this setting of monetary policy as appropriate for the near term.

Reserve Bank increases rates again!!

2010-05-05T20:15:00.000+10:00

Below is an extract from the RBA press release.....looks like they may leave rates n hold for a few months now.

Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.5 per cent, effective 5 May 2010.
Recently, forecasts for world GDP growth have been revised up again, and growth is expected to be at trend pace or a little above in 2010. Conditions in Europe remain quite weak, though recent data suggest growth is becoming more established in North America. In Asia, where financial sectors are not impaired, growth has continued to be strong, contributing to pressure on prices for raw materials. The authorities in several countries outside the major industrial economies have now started to reduce the degree of stimulus to their economies.
Global financial markets are functioning much better than they were a year ago, but sovereign risk concerns have escalated significantly in Europe over recent weeks. This has prompted additional efforts by policymakers to put fiscal policies onto a sounder footing and to provide support for Greece in the near term. To date, there has been very little contagion outside Europe.
Australia’s terms of trade are rising by more than earlier expected, and this year will probably regain the peak seen in 2008. This will add to incomes and foster a build-up in investment in the resources sector. Under these conditions, output growth over the year ahead is likely to exceed that seen last year, even though the effects of earlier expansionary policy measures will be diminishing. The process of business sector deleveraging is moderating, with business credit stabilising and indications that lenders are starting to become more willing to lend to some borrowers, though credit conditions for some sectors remain difficult. Credit outstanding for housing has been expanding at a solid pace. New loan approvals for housing have moderated over recent months as interest rates have risen and the impact of large grants to first-home buyers has tailed off. Nonetheless, at this point the market for established dwellings is still characterised by considerable buoyancy, with prices continuing to increase over recent months.
Recent data on inflation confirm that it has declined from its peak in 2008, helped by a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. In both underlying and CPI terms, inflation over the most recent 12 months was around 3 per cent. Nonetheless, the extent of decline from here may not be quite as much as earlier forecast and inflation now appears likely to be in the upper half of the target zone over the coming year.
With the risk of serious economic contraction in Australia having passed some time ago, the Board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more. The Board expects that, as a result of today’s decision, rates for most borrowers will be around average levels. This represents a significant adjustment from the very expansionary settings reached a year ago.
The Board will continue to assess prospects for demand and inflation, and set monetary policy as needed to achieve an average inflation rate of 2–3 per cent over time.
.

BACK FROM PERTH

2010-04-20T10:21:00.000+10:00

I have now completed ny RG 146 training and am currently completing assignments to gain my full accreditation....it feels like I'm back at school, but I'm learning an awful lot about Super, investing, insurance and financial planning.

Once I'm ready to go I will let you all know so you can then start using us for ALL your financial needs....stay posted!

GONE WEST TO GET KNOWLEDGE

2010-04-01T16:10:00.000+10:00

Hi all,,,,next Monday I am off to Perth for a week long academy at WEALTH TODAY where I will learn about all things to do with Insurance, Superannuation, Wealth creation and debt reduction.
I will become RG 146 qualified and able to advise clients on asset and income protection, Super, investing and much more.
Will then be off to Canberra on April 13 to talk at a Wise Investment property seminar and to also hold client appointments.
I hope to have a restful Easter in readiness for the upcoming travellling and intense learning.
Bye for now....

RBA raises rates as predicted

2010-03-09T09:25:00.000+10:00

As expected, the RBA moved rates up bu 0.25%pa.
Below is the governors statement:
Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.0 per cent, effective 3 March 2010.

The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still hesitant in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, growth has continued to be quite strong. The authorities in some countries are now seeking to reduce the degree of stimulus to their economies.

Global financial markets are functioning much better than they were a year ago and the extraordinary support from governments and central banks is gradually being wound back. Credit conditions remain difficult in some major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns remain elevated.

In Australia, economic conditions in 2009 were stronger than expected, after a mild downturn a year ago. The rate of unemployment appears to have peaked at a much lower level than earlier expected. Labour market data and a range of business surveys suggest growth in the economy may have already been at or close to trend for a few months. There are some signs that the process of business sector de-leveraging is moderating, with the pace of decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers. Investment in the resources sector is very strong. Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. New loan approvals for housing have moderated a little over recent months, however, as interest rates have risen and the impact of large grants to first-home buyers has tailed off.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it to unusually low rates are now abating. Inflation is expected to be consistent with the target in 2010.

With the risk of serious economic contraction in Australia having passed, the Board moved late last year to lessen the degree of monetary stimulus that had been put in place when the outlook appeared to be much weaker. Lenders generally raised rates a little more than the cash rate and most loan rates rose by close to a percentage point.

Interest rates to most borrowers nonetheless remain lower than average. The Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process. close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.

PROPERTY INVESTMENT FORUM A SUCCESS

2010-02-24T21:55:00.000+10:00

Last night's forum was a great success with investors hearing from Lionel Morris of Wise Investment about why and how you should invest in property.
We also covered other great topics like "Debt recycling" and proper loan structuring.
Don't worry if you missed it as we will be holding similar forums in the future.
Should you wish to receive a copy of the slides use in he forum, simply email me brad@firstchoicehomeloans.com.au
Brad Oliver

DEBT RECYCLING

2010-02-19T20:12:00.000+10:00

This is a new strategy aimed at getting rid of your non deductible (bad) debt very quickly whilst capitalisng the interest on your deductible (good) debt.

If you earn income from rental properties or other investments, you can use all of this income to pay off your bad debt first and at the same time get a tax advantage.

Send me an email or call me for more details if you would like to learn more.

Alternatively, come along to our property forum at Carina Leagues Club next Tues 23rd Feb at 7 pm and see it first hand.

CANBERRA VISIT FEB 16 & 17

2010-02-15T21:28:00.000+10:00

Well, I'm off to Canberra tomorrow to speak at the Wise Investment seminar....it's the first seminar for 2010 and should be a good one!
Am also holding appointments on the following day....have a couple of spots left only, but email me brad@firstchoicehomeloans.com.au should you want a chat.

Will be in Darwin the follwoing week....racking up lots of frequent flyer points!

PROPERTY INVESTMENT FORUM

2010-02-08T20:40:00.000+10:00

We are running a free property investment forum at Carina Leagues Club on Tuesday 23rd February from 7pm to 9pm.

Come and hear from the experts on why property values in SE QLD are set to EXPLODE! and how you can benefit.

I have asked renowned property investor and expert, Lionel Morris of Wise Realty to present to our clients on this important and topical issue

Other topics covered include:
· Hot spots…where are they?
· Financing your purchase in the most effective way
· How to use your rent to pay off your home loan
· Using Super Funds for property investment
· Negative gearing and tax deductions
· Finding and Managing Tenants

And much more!

As seating is limited, please call the office (3420 0044) to book your place.
Feel free to bring along family members and friends.

Venue details:
Carina Leagues Club
1390 Creek Rd
Carina
7pm sharp
.

RESERVE BANK LEAVES RATES ON HOLD

2010-02-04T15:48:00.000+10:00

An excerpt of RBA Governor Glenn Stevens comments follows:
Despite improvements in the global financial markets, Stevens said: "Credit conditions nonetheless remain difficult in the major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns have increased," he said.

Stevens noted that economic conditions in Australia have been stronger than expected, adding that the country has experienced lower than expected unemployment, modest inflation and expanding credit for housing.

"With the risk of serious economic contraction in Australia having passed, the board had moved at recent meetings to lessen the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the board judged it appropriate to hold a steady setting of monetary policy for the time being."

However Stevens foreshadowed future rate rises, noting that rates currently remain lower than average.

"If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term," he said.

RAMS (owned by Westpac) pulls out of the broker market

2010-01-20T21:23:00.000+10:00

In a further sign that Westpac is finding it tougher to fund new loans, they have today withdrawn their subsidiary - RAMS, from the broker market.
Mind you, they are a small player really, due to their crappy level of service and less than competetive loan products, so won't be missed by most brokers anyhow.

Their other subsidiary, St George has today confirmed their ongoing commitment to the Broker channel as has Westpac themselves.

It's just that Westpac now want to write fewer loans, and want only to write "gold brick" type loans.

Fortunately, there is still a lot of competition in the market place, so there are still may options out there.
Brad

Banks tighten the reins

2010-01-18T13:19:00.000+10:00

We are now starting to witness a little tightening of the reins by the Major Banks.

For example, one major lender who previously had very flexible policies has now told us that unless an application “ticks all the boxes” it would be declined with no reviews possible.

This lender, along with the other major Banks, approved over 90% of all home and investment loans last year. They dominated the market.

The Majors, in particular CBA and Westpac, have really “filled their coffers” with heaps of lending business, so they no longer need as much business.
This combined with their claimed funding pressures, means they are not as desperate to lend out funds.

In fact, today Westpac announced they will reduce the amount they will lend to NEW customers to no more than 87% of valuation.

They still want to do business, but will “cherry pick” the best loan applications.

Fortunately though, a lot of the smaller Non Bank lenders that struggled last year are now starting to recover and are keen to do business.

This will generate the re emergence of the Non Bank sector. Their pricing is pretty sharp as well….in most cases just as good as or even better than the Major Banks.
So don’t be surprised if you see a lot of advisors now recommending some of these non Bank lenders as an alternative.

I think that most current property investors will be OK though, as you generally have a great track record with your lender and probably a strong equity position. So you will likely be one of the “cherries” that your Bank wants to pick

Remember, your chances of approval are much higher when you use a mortgage professional rather than going direct to the lender yourself.

Any time you would like us to asses your borrowing capacity for another property simply send us an email (first@firstchoicehomeloans.com.au) or go to our website www.firstchoicehomeloans.com.au and click on the Pre Approval section.
Or, simply give us a call at the office.

Brad Oliver
07 3420 0044

News from Lending Central

2010-01-18T13:14:00.002+10:00

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Interest rates on the rise

2010-01-13T21:56:00.000+10:00

Well, wasn’t 2009 a turbulent and fascinating year!

Record interest rate reductions, a soaring first homebuyer market, and the Australian economy dodging a hail of bullets.

So good was our recovery, that now the Reserve Bank is trying to put the brakes on the economy in an effort to tame that nasty inflation monster.

Many investors are now asking….what’s going to happen with interest rates and how far will they go?

Well, let me give you my honest and professional opinion based on years of experience and also the chatter I hear from economists and Banks.

Rates are going to “normalise” over the next 12 – 18 months….so what’s normal I hear you ask?

Well the cash rate that is considered to be fairly normal, or neutral (by the Reserve Bank board) is around 5% pa. Currently it sits at 3.50% pa, so that means about another 1.50% pa or so of interest rate rises in store over the next 12 – 18 months.

So what does this mean to you?

It means retail rates (that’s what you pay on your mortgage) will likley climb back to around 7 to 7.50% pa, but it won’t happen overnight.

Fixed rates are already well over 7.00% pa, so my advice is to continue to ride the variable wave…unless of course you think that what I am saying here is absolute rubbish….that’s your call.

Remember, I don’t have a crystal ball (I wish!), but I intend to leave ALL of my loans on the variable rate for the time being.

Property investors have pretty much sat back and watched happenings this year whilst the first homebuyers rushed in, and now that has subsided, I am starting to see a lot of investor interest. This will no doubt equate to increased property sales in the New Year. Expect to see prices rise, particularly as demand is heavily outweighing supply.

As always, don’t hesitate to call us at First Choice Home Loans for any advice.

The team here wish you all a very merry Xmas and a safe and prosperous New Year.

Brad, Robyn and Sandy.