Archive for the ‘Home Loans’ Category

Comment: Ents and Entrapment

Tuesday, April 17th, 2012

Ents & Entrapment

In the 1999 film Entrapment, Catherine Zeta-Jones plots to steal $8 billion. She’s negotiating the help of genius partner-in-crime, Sean Connery, who reasons for his equal share.

“What can you do with $7 billion that you can’t do with 4?”

“Hold the record. Alone”.

One might wager that this same self-adulation has consumed the boardrooms of Australian banks in recent years.

A move by St. George Bank to lower lending rates on 1-year, 2-year and 3-year fixed-rate home loans must be deemed admirable in a climate where banks have cried poverty like a broken record despite – ironically – record-breaking profits.

But it should equally ensure that the wool that has constantly been pulled over consumers’ eyes is, at last, fully removed.

Read more at Which4U

First test for mortgage exit fee legislation

Friday, November 4th, 2011

The ban on mortgage exit fees introduced in July have been making their first impact this week, following the 0.25% interest rate cut made by the Reserve Bank.

All major lenders have been compelled to respond in the knowledge that home loan holders are now able to walk away from any home loan deal without incurring financial penalties.

November’s interest rate cut from 4.75% to 4.5%, the first cut in 2 ½ years, has provided the first real pretext for banks to respond amid concerns that, under the new legislation, loan holders could easily defect to banks offering better deals.

Were the full 0.25% cut to be passed on to consumers, the average standard variable mortgage rate would be falling from 7.79% to 7.54%, saving roughly $50 per month on an average mortgage.

(more…)

Home loan competition ‘heating up’

Wednesday, May 25th, 2011

Home LoansBanks and credit unions will be battling the competition to win over potential home loan customers in the coming months.

Australian banks are preparing to woo home buyers with discount home loans in an effort to stimulate the housing market, despite talk of more interest rate hikes.

With the ban on home loan exit fees coming into effect on 1 July, industry competition is expected to intensify, with a number of cut-price deals being launched in an attempt to attract customers. (more…)