Finance - Interest rate

ASIC joins APRA in interest-only home loan crackdown

Posted on April 4, 2017 by | 0 Comments
The corporate watchdog has joined the banking regulator in cracking down on interest-only home loans, announcing targeted surveillance of lenders and mortgage brokers inappropriately spruiking the loans. The Australian Securities and Investments Commission (ASIC) also said eight lenders, including Commonwealth Bank, National Australia Bank and ANZ, will be forced to provide remediation, including possible refunds, to consumers who suffered financial difficulty as a result of shortcomings in past lending practices. [More]

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Reserve Bank holds interest rates steady at 1.5pc

Posted on April 4, 2017 by | 0 Comments
The Reserve Bank has left interest rates on hold at a record low 1.5 per cent for the eighth month in a row, as it remains torn between a surging housing market and sputtering economy. The decision came as no surprise, with all 50 economists surveyed by Reuters ahead of the RBA board meeting expecting a steady cash rate. The key challenge for the RBA is surging home prices across Australia’s major south-eastern centres at...

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Demand for home loans falls in August

Posted on October 14, 2013 by | 0 Comments
INVESTORS continued to elbow first-home buyers out of the property market in August, with the share of first time buyers taking out new home loans falling to its lowest level in almost 10 years. The number of housing loans fell almost 4 per cent to 49,900 from July to August, ending six straight months of rises, while the share of first-home buyers shrank from 14.7 per cent to 13.7 per, the lowest level since April...

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Reserve Bank faces rates headache amid concerns of house price bubble

Posted on October 3, 2013 by | 0 Comments
While the Reserve Bank (RBA) has left the official cash rate at a historic low, some economists believe interest rates must fall in the months ahead to restrain the value of the dollar and encourage recovery in non-mining sectors of the economy. The growing headache for the RBA is the lower the rates, the greater the boom in the housing market – and bigger the pressure for regulators to intervene and ensure house price inflation...

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Property and shares go head to head

Posted on September 26, 2013 by | 0 Comments
It has to be one for the books when a real estate agent is saying property prices are becoming unsustainable and a Reserve Bank heavy says they’re not. Yet I heard both the same day. And no, I didn’t mix the quotes up, though context can be an elusive thing. The agent was commenting on research suggesting Sydney values could jump by up to 20 per cent next year, while the Reserve’s assistant governor was...

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How do successful investors research the market?

Posted on September 21, 2013 by | 0 Comments
Residex believes there are at least 5,000+ suburbs in Australia that you should potentially consider when buying a house or a unit as an investment. That may sound daunting, but it is easy to narrow down the list by following a few simple rules. 1. Think about the long-term Magazines, newspapers and online articles or blogs about investment are a great place to start your research as they offer some useful tips and insights on...

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What is a property bubble anyway?

Posted on September 21, 2013 by | 0 Comments
The Australian property bubble is speculation that real estate prices in Australia may (currently) be overvalued. This may be a real estate bubble. The bubble has been driven mostly by housing within Australia becoming investment tools instead of necessities. This was driven by the powerful real estate lobby, who heavily lobbied Paul Keating, John Howard and multiple other Australian prime ministers. Some experts, including Treasury officials,[1] believe the Australian property market is a significant bubble. It is arguably the biggest property bubble in...

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Stick to the facts in property market

Posted on September 21, 2013 by | 0 Comments
It seems the world is hitting the panic button that a property bubble is forming that if left to its own devices could wreak devastation on an already fragile global economy. In Australia the regulators are making headlines with warnings to the banks not to be lax with their lending requirements, along with comments in The Australian Financial Review by former Reserve Bank board member Bob Gregory that a property bubble ”just seems to be inevitable”. It...

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Reserve Bank assistant governor Malcolm Edey talks down risk of property bubble emerging in Australia

Posted on September 20, 2013 by | 0 Comments
The Reserve Bank has cautioned against “unrealistic alarmism” about a possible property bubble in Australia, a day after it offered a muted warning to banks about prudent lending standards. RBA assistant governor Malcolm Edey has told a conference in Sydney that the central bank is keeping a close watch on house prices, which he said were growing at an above-average pace. However Mr Edey believes it is wrong to call the rise a bubble. “We...

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Reserve Bank warns on property price bubble

Posted on September 20, 2013 by | 0 Comments
ELEANOR HALL: The Reserve Bank board today joined global financial authorities in issuing a warning about low interest rates having the potential to fuel a property price bubble. In the minutes from its September meeting, the central bank mirrored today’s IMF warning and last week’s caution from the local regulator APRA that banks need to be vigilant about their lending standards. The RBA has also warned about potentially risky property investments in self-managed superannuation funds....

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