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October Loan Market updates

October Loan Market updates

By: lionel0 comments

3rd rate cut in the last 5 months, to a record low cash rate of 0.75%

  • Lenders are beginning to pass on the rate cuts to borrowers from the major banks to smaller lenders like Bankwest, ME Bank and ING
Extracts
  • 1) Sydney records busiest week for auctions this year while AFL grand final slows activity across Melbourne
  • 2) Sydney’s home value increased by 1.6% over the last 1 month, week ending 29th Sept auction clearance rate 77.7%, listings down 17.7% (12 months change)
  • 3) Mortgage market activity up 4% in NSW according to the mortgage index

Lenders turnaround time (week ending 4 Oct 19)
  • ANZ 13 days
  • ME Bank 7 days
  • NAB, CBA, Suncorp, Bank of Sydney 5 days
  • Bankwest, ING, Resimac 4 days
  • Bank Australia, Citibank, Heritage, St George 3 days
  • Liberty, Qudos, Teachers Mutual/Unibank 2 days
  • Westpac, Macquarie, Pepper 1 day

 

  Macquarie Bank interest rate report
At its meeting this month, the RBA decided to cut official interest rates by 0.25% to 0.75%, a new historical low

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HOPE YOU ENJOYED YOUR LABOR DAY LONG WEEKEND WITH FAMILY AND LOVE ONES

DO YOU KNOW?

INTEREST RATE VS LENDING POLICIES

Whilst interest rates are at record low, do you know that lenders are not necessarily making lending approvals easier or loosening lending criteria?

Example of Bankwest update last week:

HEM update
Following the most recent quarterly HEM figures, Retail Annual Living Expenses have been reviewed and will be updated in the Bankwest serviceability calculatorsThe updated calculator will be available on the Bankwest Brokers website from this date.
Rental Income Assessment 

Bankwest will adjust the percentage of a customer’s rental income that is excluded when undergoing a serviceability assessment. We will increase the amount shaded from a customer’s rental income from 20% to 30%.

This new rate of 30% will be deducted from the rental income amount in order to account for expenses that the customer will need to meet as part of investment property ownership.

In implementing this increase, we aim to further strengthen our commitment to our customers and their financial wellbeing.
 
Hi everyone! Today we have our broker, Lionel going through one of the most common misconceptions that First Home Buyers usually face when applying for a home loan. Watch to find out more!

Interesting to see how the cuts in cash rates will cause a stimulus to economic growth which at the moment from RBA Economic Outlook 2020 for Australia is looking at 1.4% growth. Inflation at 1.6% and today ING announced their highest variable savings rate at 1.95%,

How else in the Australian economy can you work your hard earn savings so that it does not get into negative territory with inflation. Unemployment rate at 5.3% Vs Employment growth of 2.5%, wage growth predicted at 2.3%. AUD to USD will also remain low for the 2020 outlook

Interesting stats from RBA

Two approval examples this week with ultra quick turnaround
Managed to get an unconditional approval for my medico client in two business days and a conditional approval for a client in two business days to make an offer. For lender’s turnaround times and how we can get the loan approval based on your unique circumstances, feel free to contact Lionel at 0487 619 664

Current Unprecedented Low Interest Rate Environment with Great Deals

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