APRA expects banks to prepare for negative rates

The Australian Prudential Regulation Authority (APRA) wants Australia’s authorised deposit-taking institutions (ADIs) to be prepared just in case the Reserve Bank of Australia (RBA) cuts the nation’s cash rate into negative figures. While the RBA has said in the past that negative rates are highly unlikely, the potential effects of negative rates on Australian banks and their customers mean that it’s important to think about what negative rates could mean for you.

Some of the best home loans for owner occupiers in July 2021

Recent figures from the Australian Bureau of Statistics (ABS) show that while investor lending has skyrocketed in recent months, the value of owner-occupier lending only saw moderate month-on-month gains. What’s more, the number of owner-occupier first home buyer loans has dropped for the fourth month in a row, while the value of first home buyer lending is up, reflecting Australia’s rising property prices.

Can you have two home equity loans?

A home equity loan can help put the value of your property to work for you. Whether used to access a flexible line of credit, or to secure a mortgage over an investment property, your home equity can prove a useful tool for reaching your personal and financial goals.

How is mortgage interest calculated?

Home loans can seem complex and intimidating. This may be partly due to the massive sums of money involved, especially for buying property in Australia’s capital cities. It may also be partly due to the seemingly impenetrable maths involved in working out your interest charges and monthly repayments.

Which banks are offering financial relief to customers affected by the latest lockdowns?

With several areas around Australia locking down to help halt the spread of COVID-19, several of Australia’s leading banks have introduced measures to provide support and financial relief to customers who are doing it tough.

Some of the best investor home loans at the end of June 2021

With some economists predicting that mortgage interest rates could start rising sooner than expected, investors may be looking for ways to lock in the current low rates for longer, or to cut costs on their investment property, or both.

How do mortgage companies verify income?

When you apply for a home loan, you’ll need to show the lender that you can comfortably afford the repayments. But how exactly do banks and mortgage lenders check your income and confirm that you earn enough for a mortgage?

Is a fixed or variable home loan better?

The best choice between a fixed or variable home loan interest rate may depend on your personal and financial situation, as well as your home loan goals. There are advantages and disadvantages to fixed and variable interest rates, which could affect the value that different home loans offer you.

Some of the best home loans in June 2021

The era of record-low fixed rates may be ending, with leading banks starting to increase the rates fixed home loans – first for 4 and 5-year fixed rates, and now for 2 and 3-year fixed rates. However, there are still mortgage deals available to Australians wanting to lock in a low rate, as well as other rewarding options.

Can I borrow money for stamp duty?

Stamp duty can be a significant cost to consider when buying a property. As well as your deposit and other fees and charges, stamp duty can add thousands of dollars to your upfront costs, depending on the value of the property. So it’s not surprising that some Australians look for alternative ways to manage this expense, such as borrowing money for stamp duty.