Finance

Most home loans still deferred as grace period winds up

Posted on October 16, 2020 by | 0 Comments
With the initial six-month mortgage holiday having run its course, Australia’s major lenders would have been banking on most customers resuming their repayments by now. But the latest dataset shows most have yet to return to normal. Data collected by the Australian Banking Association (ABA) found 270,000 home loans were still on hold as of October 11. Although that’s well below the peak of nearly 500,000 in June – or one in 10 mortgages nationally...

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What Is Domestic Financial Abuse?

Posted on October 14, 2020 by | 0 Comments
Financial abuse happens when someone is controlling with money and assets. It’s a serious problem that can happen to anyone at any age, regardless of your wealth, ethnic background, gender, age or ability. It can manifest as economic control – like a carer denying a person access to their money, or a spouse making financial decisions for their partner without consulting them. Or it can be through financial exploitation, such as an independent adult child...

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Property porkies: Record number of home loan applicants fudging the numbers

Posted on October 1, 2019 by | 0 Comments
The number of home loan applicants obtaining a mortgage after inflating their income and downplaying their living costs has jumped to record levels, according to research by global investment bank UBS. Thirty seven per cent of borrowers were not entirely honest in their mortgage applications, the bank’s anonymous survey of 903 Australians revealed – despite tougher lending standards imposed since the banking royal commission. The surge in so-called “liar loans” comes amid a rise in...

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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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The Bank of Mum and Dad is just generational self-interest to keep house prices high

Posted on April 4, 2017 by | 0 Comments
You know the remarkably high price of homes is now a top issue for our politicians, state and federal. But you may need reminding that house prices are an intergenerational issue. As a general rule, the younger generation buys its homes from an older generation, which means rising house prices constitute a transfer of wealth from younger to older generations. Unfortunately, this conflict of interests between the generations makes it unlikely the measures in the...

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S&P says more borrowers falling behind for first time on mortgage repayments

Posted on April 4, 2017 by | 0 Comments
More borrowers are falling behind for the first time on their mortgage repayments, credit ratings agency Standard and Poor’s says. The proportion of owner-occupier home loans in arrears increased to 1.29 per cent in January, from 1.15 per cent in December, the agency says. Crackdown on investor loans Treasurer Scott Morrison believes it’s the willingness to loan money to investors coupled with watered down regulations that is negatively impacting household debt and housing prices. (Vision...

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The cost of buying an investment property

Posted on November 6, 2016 by | 0 Comments
Are you thinking about buying an investment property? If the answer’s yes, listen up. While buying an investment property is a great first step to take in future-proofing your wealth, it’s important to know exactly how much the endeavour will set you back before you get too carried away. As with any property purchase, you’ll have to spend more than just the cost of the dwelling in order to secure the premises. Some of the...

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StanChoosing the right ownership structure

Posted on November 6, 2016 by | 0 Comments
One definition of the term “structure” is “something built or constructed, as a building, bridge or dam”. Ironic, then, that as property investors we use the term “structure” to define how we arrange our property investment portfolios. Like a building, our investment portfolios need to have a good structure… otherwise they’ll topple down on our heads! The structure we establish will depend upon a variety of things: our personal situations; our goals; our financial and...

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The tax implications of subdividing your backyard

Posted on April 16, 2015 by | 2 Comments
Subdividing your PPOR (principal place of residence) is a strategy we often get asked about. If you’re thinking about going down this path, there’s a lot to consider before making your decision. By Pat Mannix and Rebecca Mackie There are many different strategies with different outcomes, depending on whether you’re planning to sell the part with the house, or the vacant land, or build and move in, build and rent out or build and sell...

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