For a limited time, everyone who books an appointment online will receive a FREE* Home Loan Guide CD.
The Home Loan Guide
is a handy resource for first home buyers or anyone wanting to understand the process of choosing a home loan. If you're thinking of buying a home, you have a lot of decisions to make. Decisions that could save you - or cost you - thousands of dollars.
Finding the right property is only the start! Getting the right home loan to suit your individual needs is the hard part.
There are several steps to choosing a home loan and if you feel nervous about how to proceed don't worry, many people feel the same, that's why we've produced the Home Loan Guide. This handy resource is a great starting point: it will skill you up on the basics, leaving you reassured that you can then talk to the experts with confidence:
You'll learn the difference between types of home loan lenders and mortgage brokers
You'll understand the typs of loans available and how each can benefit your personally
You'll find out how interest rates and feaes really affect how much you pay
It'll even help you establish a savings plan
The CD contains expert commentary, charts, calculators and video clips.
Book an appointment using one of our online forms and get your free Home Loan Guide CD when you attend your appointment.
*The Home Loan Guide CD will be provided to you when you attend the appointment. Offer applies to all appointments that are booked and completed between 17 October - 30 November 2008.
RBA Foot Lifts Off Brake Again
Another cash rate cut for a brighter Spring
Mortgage Choice, Best in the Mortgage & Finance Industry*, is very pleased about the Reserve Bank of Australia (RBA) decision to decrease the cash rate by 1.0% to 6.0%, the same level it was in August 2006.
The move will bring a collective sigh of relief from the millions of Australians who are repaying a variable mortgage at a time when interest rates, fuel, food and other commodities are at a high.
Volatile global funding markets have resulted in a liquidity crisis that has seen Australia's lenders experiencing see-sawing funding costs. So, there are no guarantees as to how they will move rates.
If lenders follow the RBA and cut mortgage rates by 1.0%, a borrower previously owing $250,000 at 9.35% over a 25-year term will save approximately $171 per month on their repayments. However, if that same borrower kept their repayments at the same level and ignored the rate cut, they would save approximately $86,143 in interest and approximately five years and four months off the remaining term of the loan.
If lenders cut mortgage rates by 0.5%, a borrower previously owing $250,000 at 9.35% over a 25-year term will save approximately $86 per month on their repayments.
Local Mortgage Choice principal Russell Crook said, "I am often amazed at the difference a couple of extra notes a month can make to a loan. Many people don't realise how large a dent they can put in their mortgage simply by ignoring a drop in repayment amount".
"I would suggest to those borrowers who find their lender hasn't matched the rate cut that they start looking around at other lenders and loans to check for a better deal.
"A number of reputable mortgage brokers such as Mortgage Choice offer free home loan health checks, which means they check the current loan against a wide range of others from a panel of lending institutions. It's worth a quick visit to make sure you're doing the best thing by your budget".
The next round of inflation figures will be released on 22 October. This information will have a strong influence over the RBA as to its next decision on the cash rate.
The committee decided to reduce rates last month because it believed inflationary factors had been significantly curbed. The next round of CPI figures will give the RBA a much stronger idea as to the effect recent rate increases had on our economy.
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Testimonials
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"Always available when I had queries/concerns. And always got back to me promptly. Much appreciated."
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"Always happy with your service. Helpful & the right advice. Everytime."
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"Your service and professionalism is as always FANTASTIC. The recommendation of Hotham Settlements was "spot on", they too were FANTASTIC. Thankyou." Rachel Skeels, Alexander Heights WA
First Home Grant Increase
The Federal Government has recently doubled the First Home Owner Grant to $14,000 for first home owners purchasing existing properties and tripled it to $21,000 for first home owners buying new housing. All contracts entered into by June 30 next year will be eligible for the new assistance.
As a basic rule, you are eligible if:
- you are an Australian citizen or permanent resident.
- you are buying or building your first home in Australia, with the intention of occupying it as your principal place of residence within 12 months of the settlement.
It is important to note that if you are buying the property in conjunction with others, they must also meet the same criteria for the grant to be applicable.
The doubling of the First Home Owners Grant for all first homebuyers and a tripling for those who purchase a newly-built dwelling, along with the recent significant decreases in interest rates, should provide a much needed boost to the Australian housing market.
To find out if you qualify for the increased First Home Grant, book an appointment with your local mortgage broker.