Hervey Bay Independent : Indy 15th January 2015
Cash rate instability causes fi xed rate demand to drop Fixed rate demand has hit its lowest level in 22 months, new data has revealed. According to the latest national home loan approval data from Mortgage Choice, fi xed rate home loans accounted for just 22.29% of all loans written in December – down signifi cantly from the 26.98% recorded the month before. Local Mortgage Choice franchise owner and mortgage broker Peta Short said with speculation mounting that the Reserve Bank of Australia could potentially cut the cash rate again in the coming months, it is not surprising to see an increasing number of borrowers opting for a variable rate home loan. “At the beginning of December last year, speculation was rife that the Reserve Important information This article is for general information purposes only. It has been prepared without considering your objectives, fi nancial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances. NATIONAL v Variable Rate v w v v w Basic Variable Standard Variable Ongoing Discount Line of Credit Introductory Rate w Fixed Rate DEC 14 77.71% 11.62% 16.61% 46.23% 2.72% 0.53% 22.29% Variable Rate Basic Variable Standard Variable Ongoing Discount Line of Credit Introductory Rate Fixed Rate About Mortgage Choice Mortgage Choice is an ASX listed company that seeks to help Australians with all of their fi nancial needs. Established in 1992, Mortgage Choice was originally established to help Australians improve their fi nancial situation by off ering a choice of home loan providers, coupled with the expert advice of a mortgage professional. Since that time, the company has grown and developed into a fully fl edged fi nancial services provider. Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset fi nance, deposit bonds, and risk and general insurance. Further, the company off ers Australians access to real, relevant and aff ordable fi nancial advice through our qualifi ed fi nancial advisers. Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profi ts and NSW/ACT 70.61% NOV 14 73.02% 6 Mth Average 12 Mth Average 75.10% 10.68% 12.09% 18.57% 18.44% 40.43% 40.71% 2.36% 2.86% 0.98% 1.01% 24.90% 26.98% VIC/TAS 85.79% QLD 77.25% SA/NT 7.55% 14.00% 11.92% 16.12% 16.59% 19.41% 16.03% 8.14% 74.66% 12.05% 16.37% 41.23% 2.94% 2.06% 25.34% WA 29.39% 44.06% 49.31% 46.37% 54.73% 2.05% 2.19% 2.68% 3.63% 0.35% 0.88% 0.26% 0.19% 14.21% 22.75% 82.81% 82.11% 17.47% 18.97% 37.65% 6.53% 1.49% 17.19% 17.89% attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA). Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC. Recent recognition: 2014 Australian Broking Awards Best Diversifi cation Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacifi c Best Under A Billion list. Visit www.mortgagechoice.com.au or call customer service on 13 6678. If you want to learn more about your home loan options call Peta’s team on Hervey Bay 4124 7822 or Maryborough 4123 5022 MortgageChoice.com.au/peta.short or facebook.com/petashort Bank of Australia could cut the cash rate throughout 2015,” Peta said. “Ongoing weakness in the Australian and global economy has encouraged some analysts to change their cash rate forecasts to include up to two further rate cuts. “While future cash rate cuts are purely speculation at the moment, it would seem the chatter has been enough to encourage more home buyers to take out a variable rate mortgage.” Peta said if rates were cut again, borrowers with a variable rate mortgage may benefi t. Across the country, variable rate home loans were most popular in Victoria, with this type of product accounting for 85.79% of all home loans written last month. South Australia and Western Australia were not far behind, with variable rate products accounting for 82.81% and 82.11% respectively. Variable rate products were least popular in New South Wales, with this type of mortgage accounting for 70.61% of all loans written. By comparison, fi xed rates remained very popular in the state, accounting for almost 30% of all loans written. Looking ahead, Peta said regardless of whether borrowers opt for a fi xed rate mortgage or a variable rate home loan, they will defi nitely be able to secure a competitive rate. “Australia’s lenders are offering some very sharply priced products at the moment, so regardless of what type of home loan product you eventually decide upon, now is a good time to be a home buyer,” she said.
8th January 2015
22nd January 2015