Interest-Only VS Principal and Interest Loans
When you take out a loan with a lender, the lender will calculate the loan repayment based on the term of the loan (how many years you have taken the loan out over) and the interest rate. The monthly payment will be calculated to ensure the principle (the amount you borrow) plus the agreed interest […]
RBA has Cut Interest Rates to Record Low 0.1% – How This Affects You
On Tuesday, 3rd November 2020, the Reserve Bank of Australia (‘RBA’) cut interest rates from the previous record low of 0.25% to a historically low 0.1%. This has been done in hopes to help the country recover economically by supporting household spending through lower interest costs for borrowers. Whether you are a homeowner paying off […]
Family Guarantors – What’s Involved and How Can It Benefit Your Kids
For some young individuals, saving for a home loan deposit to purchase their first home is an almost impossible dream. By acting as a guarantor, you may be able to help your kids get into their first home sooner so you can finally enjoy the whole house to yourself. What’s does it mean to be […]
Reduction in Serviceability Rates – Can You Borrow More?
Earlier this month, the Australian Prudential Regulation Authority (APRA) finalised its revised guidance on serviceability assessment rates for lenders in relation to loan applications. Previously, APRA required all lenders to calculate a borrower’s capacity to repay a loan using a mandatory minimum interest rate of 7% per annum. Common industry practice for lenders was to use […]
Interest Rate Cuts – What Does This Mean for You?
The Reserve Bank of Australia (RBA) announced consecutive rate cuts in June 2019 and July 2019, bringing the cash rate down from 1.5% to 1%*. Prior to this, the cash rate had been held steady at 1.5% unchanged for more than 2½ years. For many lenders, more specifically those sourcing wholesale funding within Australian shores, […]