Resources: Market Update

ST GEORGE RAISES ITS FIXED RATES.

Posted 29/04/09

Effective today, St George has raised its three year fixed rates by 0.35% to 5.69% and its four and five year fixed rates by 0.40% to 6.34%.

Westpac, theCBA and NAB have all lifted their fixed rate products over the last few weeks.

LVR'S FALL.

Posted 22/04/09

The traditional focused lender for first home buyers Westpac and RAMS Home loans, have this week tightened their lending policies.

A spokesperson said the new credit policy has been introduced "to maintain a responsible lending approach and long-term view to risk management".

Effective immediately new Westpac customers will be eligible to borrow a maximum LVR of 92% with genuine savings of 5% required; existing customers may be able to borrow up to 95% LVR.

RAMS Home Loans' new credit policy requires all borrowers that require mortgage insurance to have 5% genuine savings as part of their deposit and have moved their maximum LVR to 90%.


UP GO FIXED RATES.

Posted 22/04/09

The door is starting to close on the cheapest fixed rate home loans in decades.

The NAB was the first to move last week, increasing their fixed rates with the three year rate now at 5.49% up 0.2%.

The Commonwealth Bank has raised their standard three year fixed rate to 6.19% and its five year rate to 6.84% a rise of 0.45%.

Westpac also moved their one-year fixed rate mortgages to 5.39 per cent up 0.2%, while their two-year term 5.49 per cent up 0.3%.  Three-year rates to 5.79 per cent up 0.4% and five-year to 6.39 per cent up 0.1%.

The ANZ has not made any recent changes to its fixed rates.

Australian Bankers' Association chief executive David Bell said the other day "when the RBA raises or lowers its cash rate, it does not necessarily alter the banks' cost of funding."

WHO CUT RATES, BY HOW MUCH AND WHEN DO THEY TAKE EFFECT.

Posted 14/04/09

decreased by .25%
Heritage Building Society

decreased by .10%
ANZ Bank  Effective April 17th, 2009
Suncorp Metway  Effective April 20th, 2009
Westpac  Effective April 20th, 2009
Homeside  Effective April 17th, 2009
RAMS Home Loans  Effective April 17th, 2009
St George  Effective April 17th, 2009
Commonwealth Bank  Effective April 17th 2009

No Change
Adelaide Bank
National Australia Bank 

This list is as of the 9th of April.

RBA CUT RATES BY 0.25%.

Posted 07/04/09

The Reserve Bank dropped its benchmark interest rate another 25 basis points today after a brief pause in March.

The cash rate now is at 3%, its lowest level in 49 years as the RBA uses all its power to stop the economic slowdown.

If the rate is passed along in full it will knock about $46 off the monthly repayment on a $350,000 loan over 25 years.

The CBA however have baulked at that and have dropped their standard variable product by just 0.1% with the NAB deciding not to move their Variable rate at all.

SUNCORP FIGURES SHOW HOME BUYERS BANK ON INTEREST RATES DROPPING FURTHER.

Posted 06/04/09

New figures released by Suncorp today show mortgage holders are banking on interest rates dropping further with fixed rate home loans falling to their lowest levels on record.

Suncorp General Manager of Banking Terry Wasmund said new mortgage holders had all but abandoned fixed rate home loans over the past 12 months.

Statistics show that in February 2008, 42% of home borrowings by Suncorp customers were taken out on fixed rates. In February 2009 that figure plummeted to an unprecedented 1%.

"We haven't seen a market like this for a very long time," Mr Wasmund said.

"There is a lot of interest surrounding tomorrow's meeting of the Reserve Bank Board and the fact that our customers are typically continuing to favour the variable rate option indicates that they seem to be largely betting that the official interest rate will fall further."

For example, using rates current as at 6 April 2009 - Suncorp's standard variable rate is 5.9% with a three-year fixed rate sitting at 6.39%.


RBA HAVE SCOPE TO CUT RATES.

Posted 1/04/09

With domestic economic growth expected to fall in 2009, RBA deputy governor Mr Battellino told the Urban Development Institute's National Congress in Brisbane yesterday, there was scope to cut interest rates further if needed.

"The monetary policy transmission process has been effective and there remains scope to ease policy further if circumstances require".

"Australia will remain one of the better performing economies in the developed world and be well placed to benefit from the renewed global expansion when it comes," he said.

He also went on to say that the property market has performed ‘better than expected' with our local prices only falling on average 3%.

The RBA's next meeting is on April 7^th.


FIRST HOME BUYERS GUDE.

Posted 01/04/09

Here is a simple guide to what some lenders require including Loan to Value Ratios and the genuine savings needed.