Australian Finance

Australian finance information online

[loansaustralian]

Fixed home loans offer the best value

Many Australian lenders and mortgage broking groups are reporting increased demand from borrowers for their fixed rate products. Only today the CBA has announced that they are looking to cut the rates on their fixed home loans even further - by up to 40 basis points.

Borrowers prefer to have some stability in their home loan repayments in the face of plenty of economic instability all around both locally and overseas.

The new CBA 3 year fixed home loan will be available at 5.89% - the cheapest the bank has had in over 3 years.

Consumers trying to find debt consolidation solutions, look to a cheap fixed home loan in order to absorb their more expensive unsecured credit card debt.

Refer to http://loansaustralian.posterous.com/everyone-is-keen-to-fix-their-home-loans for the full story on this.

[loansaustralian]

Mercedes did well with Aussie car sales in August

August 2012  was a record selling month in Australia for MERCEDES-BENZ.

Although car sales for the manufacturer were down in its local German market, sales of its luxury cars and SUVs in Australia performed very well.

The flagship division of automaker Daimler AG on Wednesday reported it sold 91,316 cars worldwide. That represents an increase of 4.5 per cent over the company's results in August 2011, and the highest number of sales the manufacturer has ever made in a month.

Mercedes have also had a strong sales month in the United States, where sales grew by a huge 11.3 per cent from a year ago.

But it saw sales dip 1.2 per cent in Germany due to old models being discontinued and new ones brought to the market. A new version of the high-volume A-class compact is coming in September 2012.

see www.carloansau.com.au for more info on Australian Car Industry

[loansaustralian]

There would be far fewer divorces if more married people were as deeply in love as they are in debt

www.honeyloans.com.au

[loansaustralian]

Aussies are enjoying better housing affordability

It may not feel like it...but experts are telling us that the lucky country is doing better with respect to housing affordability.

According to statistics the average Australian monthly home loan repayment is now $2,155 compared to $2,290 in the June Quarter 2011.   

Furthermore, the median weekly family income is now $1,560, compared to $1,493 in the June Quarter 2011.

These numbers indicate that we are doing better financially - we must if we are earning more and paying less for our home loans.

So why are we not feeling more confident?

Could it be that more of us are out of work and are not earning the average income quoted above. Others are not lucky enough to be able to put together the required home loan deposit to qualify for a home loan.

Cost of living is applying further demands on to our slightly higher incomes.

In June 2011, 35.4 per cent of family income was required to meet home loan repayments. In the June Quarter 2012, the figure had come down to 31.9 per cent – a 3.5 percentage point drop.

Most of this and more is required to absorb the higher cost of living.

Information supplied by www.honeyloans.com.au

[loansaustralian]

RBA leaves cash rate at 3.5%

THE Reserve Bank of Australia has decided to leave the cash rate at 3.5 per cent at its September board meeting today. 

While this decision is likely to disappoint many borrowers and people in debt who would have wanted to see another rate cut, it was really much anticipated by the experts. 

In fact majority of economists expected that RBA will chose to do nothing with the cash rate in September.

The last time that RBA cut its cash rate was in June, by a quarter of a percentage point, after a half a percentage point reduction in May.

First Home Buyers who are looking to enter the property market now, are desperately trying to save a reasonable deposit in order to be able to qualify for a home loan. Clearly if the cash rate was to come down further, it would make properties more affordable for this segment of the market - read more on this here

[loansaustralian]

Get your debts under control ASAP

Few people understand the impact that a bad credit history can have on their ability to borrow. There is a lack of education in the schools addressing the impact of bad credit on people's lives.

If you feel that your debts are out of control and you are unable to meet set repayments, do something ASAP. Ignoring this problem can cost you a lot of money and lost opportunities in life.

There are many businesses that specialize in helping people get out of debt and start afresh. You may wish to speak to one of these to see which debt solutions strategy you should follow.

If you do nothing you may find yourself eventually being forced into bankruptcy by your creditors. While you may say - "I have nothing to lose"....and at face value this may be correct.

There is a whole list of restrictions and limitations that out legislation places on bankrupts and ex-bankrupts and you need to be aware of these before finding yourself with no alternatives.

[loansaustralian]

Low doc home loans receive a beating

There is much speculation in the media about the viability of low doc home loans in Australia in the face of recent reports by insiders that in pre-GFC days lenders would encourage mortgage brokers to submit low doc loan applications with unrealistic profit projections and outright inaccurate income figures in order to ensure that loans are funded.

It is not surprising that NCCP was introduced approximately 2 years ago to implement a standard that both lenders and mortgage brokers were required to follow when it comes to all types of lending not just low doc loans.

However what is happening in the media today is the equivalent of a "witch hunt" attacking low doc lending today, despite that the irregularities being reported to the media had occurred up to 10 years earlier and certainly would not be contemplated by anyone in the current lending environment n Australia.

[loansaustralian]

Qualifying for a bad credit home loan in Australia

t is not all that difficult to qualify for a bad credit home loan if you know where to look and what are the rules.

1. Avoid the banks as they do not offer bad credit home loans. Too many applications to lenders that will decline you a loan will only further damage your credit history.

2. Apply to website like this as they specialize in bad credit loans and will help you find the best deal.

3. Pay off all unpaid bad credit as this will be required before a loan is issued

4. Save up a sufficient deposit - generally at least 20% if buying n a metropolitan postcode or more if elsewhere.

5. Make sure that all you financials are up to date as qualifying for a low doc bad credit home loan can be both difficult and unnecessarily expensive.

Your home loan will not be approved if you are still in undischarged part 9 or bankruptcy. These have to be repaid and discharged before application.

[loansaustralian]

Interest rates expected to stay on hold today

RBA will be meeting today to review monetary policy going forward. There is no expectation that interest rates will be moved.

Most economists expect that interest rates will remain on hold notwithstanding new evidence that inflation is no longer a concern and should not impede cash rate reduction if one is required.

As the Australian dollar hovered near five-month highs yesterday and the share market rallied to its strongest level since May, analysts said there was almost no chance of a cut.

There has been a very minor increase in demand for home loans following the last 2 rate cuts. However the last thing that RBA wants to do s to overheat the market.

While majority of experts believe that RBA has another rate cut up their sleeve, it may be brought out in October or November but probably not today.

[loansaustralian]

[loansaustralian]

Debt consolidation lacks consistent regulation

While most Debt Consolidation businesses are operating under the regulation of ITSA and the insolvency law of Australia - there are gaps.

Small businesses not working on at least 5 cases at a time are falling through the cracks. One business identified by ASIC in recent days as operating without a credit license is the Debt Genie. Its director was banned by ASIC from engaging n credit activities for 3 years.

How many other Debt Agreement writers are operating without much regulation?

Certainly Businesses that that are not regulated by ITSA could well not be covered by the National Consumer Credit Protection Act, depending on the type of debt agreements they negotiate.

This matter is discussed in detail on www.honeyloans.com.au

[loansaustralian]

Businesses borrowing less in June quarter

A recent report from Veda Advantage points to a drop in demand for business loans during the June quarter in Australia. One of the worst states affected by this decline is Victoria.

Anytime demand for business loans drops it is generally fallowed by lower business activity as well as drops in levels of available employment and consumer demand.

It seems than any business that is not involved or associated with the mining sector appears to be experiencing a downturn. Read further on this here.

[loansaustralian]

Aussie retirees are struggling to survive

With the deterioration in retirees superannuation balances as a result of global share-market collapses more and more Aussies are needing to take out loans to survive and pay their bills. Many are considering a reverse mortgage to help them get by.

According to Loan Market brokers, over 40,000 Australians currently hold reverse mortgages against their homes.

The number has increase by a significant 22 per cent in the past two years.

Reverse mortgages allow people 63 and over to borrow against the equity in their home or investment property, without ever need to make any loan repayments during their own lifetime.

In the current financial environment any loans that do not need to be repaid appeal to cash strapped retirees.

[loansaustralian]

[loansaustralian]

Fewer new cars sold in Australia in June

According to official data released by the Australian Bureau of Statistics , seasonally adjusted figures of new motor vehicle sales in June were down by 0.6%

During the month of June, 91,375 new cars were sold, seasonally adjusted, compared to a lower 91,920 in May, according to Australian Bureau of Statistics (ABS) data released on Tuesday.

However for the year to June, new motor vehicle sales went up by a significant 18.4 per cent, seasonally adjusted.

[loansaustralian]

Cars are becoming cheaper and more reliable

Over the past 50 years many things have become a lot more expensive - however relative to wages cars are now cheaper.

It is actually easier to purchase a car with today’s wages than it was back in 1972, an indication that car prices have been falling and offering at least one reason for why Aussies have been buying many more new cars while abstaining from making other lifestyle purchases.

Despite cars being cheaper today's motor vehicles are also far safer, much more sophisticated and far more comfortable than what was available to other predecessors 50 years earlier.

Advances in technology can be credited for most of the car price reduction over time, as are higher sales volumes and shared technology. The cost of designing a car has become lower due to increased computerization and less hands-on work required. 

Even as recently as 10 or 15 years ago the difference in motor vehicle affordability might not have been anywhere near as pronounced, with the value of the Australian dollar against the US dollar much lower than it is today — and both the Japanese Yen and the Euro worth significantly more.

[loansaustralian]

Cost of car finance coming down

It seems that while the big banks have been reluctant to pass on the full rate cut to home loan borrowers, they have been more accepting of this with respect to car loans.

Recent statistics suggest that cost of car loans has come down in recent months in excess to the rate cuts announced by the RBA. There are more funders offering car finance and many have very strong loan deals.

Of-course it is important to consider more than just the loan interest rate.

Home owners with equity in their property may be able to borrow for a motor vehicle using that equity. However car loan rates are now sufficiently low to borrow for a car separately and leave your mortgage equity available as a backup.