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  • More banks drop fixed rates « Formula 1 Finance Formula 1 Finance
    and lenders all want a piece of it ANZ NAB Suncorp Aussie ING Direct Homeside have dropped their fixed mortgage rates off the back of similar moves by other lenders this month If you are considering a short term fixed rate 1 3 years they are now looking more around the average levels Brett Colley 365 Posts Brett has been involved in management in the finance industry for over 13 years Brett s diverse experience in finance real estate developments and all facets of the construction industry confirms Formula 1 Finance to be an innovative professional finance broking firm On August 27 2010 Finance News Leave a comment Comments are closed Finance News RBA rate announcement Banks Mining Towns and Rental Yields Houses outperform units in capitals Positive return for Qld market Whats happening with Vacant Land Sales Credit conditions restricting construction Housing Values Rise Housing Facts Rates on Hold New home sales at 2 year high Categories Australian Dollar Bank fees Bank Profits Budget Enconomy Finance News Financial goals First Home Buyer Government banking reform Home loan product House prices Inflation Interest rate Rental Growth Stamp Duty Technology Wealth January 2014 M T W T F S S Dec

    Original URL path: http://www.formula1finance.com.au/finance-news/more-banks-drop-fixed-rates/ (2014-01-04)
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  • RBA on hold – inflation now in focus « Formula 1 Finance Formula 1 Finance
    year following a May rate hike Our assessment was that the interest rate sensitive parts of the economy were already slowing as rate hikes were biting retail sales housing finance even employment growth We also expected that the May rate move would see mortgage rates reach a sensitivity point where Consumer Sentiment which had been remarkably resilient to the previous moves would start to react The 7 fall in the Index confirmed that view although personally I expected the fall to be even larger However we had to change our thinking when we saw the print for the March quarter Consumer Price Index We cannot overstate how sensitive the Bank will be to inflation risks It s response to the 0 8 print on core inflation was to revise up its inflation forecast path to remaining in the top half of the band over the forecast period rather than holding around the middle of the target band Don t underestimate the scare the Bank received in 2008 when core inflation soared to 4 75 At the time evidence that inflation pressures had built quickly which culminated in the 1 2 print for inflation in the December quarter of 2007 was met with consecutive February and March hikes That was despite the GFC being well underway recall the Fed cut rates by 75bp s to 2 25 in March and Bear Stearns was rescued by the generous put option which the US Government granted to JP Morgan The variable mortgage rate reached 9 6 probably 250bp s above normal So the 300bp rate cuts we saw in the second half of 2008 probably only pushed rates marginally below normal which is where they stand today Market fears of a repeat bout of 100bp emergency cuts are clearly mis judging the significance of the current starting point The big issue is whether we might be moving toward another bout of excessive inflation pressure That will be occupying the thinking of the RBA as the next resources boom takes hold we expect a record improvement of 4 3bn in the trade balance between March and April to be announced next week Headline inflation reached 5 in 2008 a little more than the peak in the core of 4 7 Major contributors were core goods and services 1 7ppts transport 1 2ppts housing and rents 0 9ppts retail bank margins 0 7ppts and food 0 5ppts Of course the transport component was largely driven by the 33 surge in petrol prices over the previous two years as the oil price jumped from around US 30 bbl to US 140 bbl petrol would have had some indirect effects on other components as well such as food and core goods and services Another significant indirect effect would have come from wages with the wage price Index growth rate peaking at 4 3 during that period Retail bank margins had a significant impact during 2008 while the wages commodity prices and a shortage of rental properties were

    Original URL path: http://www.formula1finance.com.au/finance-news/rba-on-hold-%e2%80%93-inflation-now-in-focus/ (2014-01-04)
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  • ANZ cuts home loan rates « Formula 1 Finance Formula 1 Finance
    true competitor in fixed lending Yesterday the major announced it would slash six basis points from its three year fixed rate 19 basis points from its four year fixed loan and nine basis points from its five year loan taking them to 7 64 per cent 7 74 per cent and 7 94 per cent respectively The cuts have allowed ANZ to become more competitive in the fixed lending arena CBA is offering three year fixed mortgage rates at 7 89 per cent while Westpac is offering 7 79 per cent But despite the cuts to longer term rates ANZ raised its one year fixed rate product by 13 basis points to 6 84 per cent suggesting near term pressure remains on funding costs Source The Adviser Brett Colley 365 Posts Brett has been involved in management in the finance industry for over 13 years Brett s diverse experience in finance real estate developments and all facets of the construction industry confirms Formula 1 Finance to be an innovative professional finance broking firm On May 27 2010 Finance News Leave a comment Comments are closed Finance News RBA rate announcement Banks Mining Towns and Rental Yields Houses outperform units in capitals Positive return for Qld market Whats happening with Vacant Land Sales Credit conditions restricting construction Housing Values Rise Housing Facts Rates on Hold New home sales at 2 year high Categories Australian Dollar Bank fees Bank Profits Budget Enconomy Finance News Financial goals First Home Buyer Government banking reform Home loan product House prices Inflation Interest rate Rental Growth Stamp Duty Technology Wealth January 2014 M T W T F S S Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

    Original URL path: http://www.formula1finance.com.au/finance-news/anz-cuts-home-loan-rates/ (2014-01-04)
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  • CBA predict home loan rates to hold until may « Formula 1 Finance Formula 1 Finance
    that new lending is offset to an extent by higher than required repayments by existing mortgage holders The volatility comes from the build up in First Home Buyer activity through 2009 and then its sharp fall since late 2009 In the bigger picture variable mortgage rates are just above 6 5 well below the 7 9 average of the past 20 years Business credit repeated January s 0 1 fall in February to be down 7 6 over the past year We still expect to see some small positives registered in coming months Anecdotal evidence points to an easing of credit constraints and stronger demand from corporates Gearing ratios for listed groups are at relatively low levels implying that firms could be at the end of the deleveraging cycle There is also clearly a determination to lift planned business investment especially by the mining sector judging by the ABS Capex surveys The bounce back in most of the business surveys to levels similar to 2007 is quite positive for business investment and the labour market over 2010 11 Personal credit rose by 0 4 in February to be 1 4 higher over the past year The major reason for the positive monthly personal credit numbers is the gradual lift in margin trading loans as the share market recovers Consumers appear to be gradually changing their relatively cautious use of their credit cards Annual growth rates in credit card balances the number of accounts and average balances per card are rising away from around zero On our measures there appears to be a gradual move away from the use of debit cards or their own cash towards greater use of credit cards Source CBA Economics Brett Colley 365 Posts Brett has been involved in management in the finance industry for over

    Original URL path: http://www.formula1finance.com.au/finance-news/cba-predict-home-loan-rates-to-hold-until-may/ (2014-01-04)
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  • Westpac Predict Home loan rates to hold for now « Formula 1 Finance Formula 1 Finance
    see the winding down of most of the stimulus initiatives from the Federal Government These contributed around 60 2ppts of the growth in expenditures in 2009 Over the course of 2010 as programs are unwound or phased out we can expect the stimulus effect to detract around 1ppt from growth in demand While the economy probably felt stronger in 2009 than it actually was it will feel weaker than it actually is through the course of 2010 ii Sensitivitivity of Consumer Sentiment The next stage of rate hikes is expected to significantly reduce Consumer Sentiment and moderate the pace of domestic spending A movement to 4 5 is likely to see the variable mortgage rate reach nearly 7 5 At the equivalent stage of the last tightening cycle in March 2005 the increase in the variable mortgage rate to 7 5 resulted in a violent 15 5 fall in Consumer Sentiment While there were other factors at work the severe jolt to confidence contributed to rates remaining on hold until May 2006 Furthermore the current very strong read on Consumer Sentiment is not seeing the style of surge in consumer spending normally associated with these lofty levels of the Index We note in our survey work that consumers are currently much more risk averse than at similar stages of past recovery cycles In the March Consumer Sentiment Report we noted that the proportion of respondents who indicated that pay down debt was the wisest place for savings reached record levels Those factors point to a more modest upswing in consumer spending in 2010 and 2011 than would have been the case in previous cycles iii A modest fall in the unemployment rate While our forecasts are for jobs growth of 3 through 2010 we are only looking for a reduction in the unemployment rate to 5 0 by year s end That will be largely because of an expected increase in the participation rate and the ongoing rise in the labour force associated with the almost doubling of population growth over the last 5 years We have argued that a central bank will be very nervous if rates are below neutral and the unemployment rate is below the NAIRU non accelerating inflation rate of unemployment We assess that the NAIRU for Australia is 5 only 0 3ppts below the current level If we are wrong with this assessment and the unemployment rate has fallen below say 4 5 through 2010 then it is likely that current market pricing WILL be franked iv Credit supply The provision of credit will also be more constrained in this upswing than in previous cycles Prior to the GFC banks were able to access adequate wholesale funding at very narrow spreads That allowed them to easily accommodate any unexpected increase in the demand for credit from households or business Now banks are more restricted by market conditions Funding costs in term wholesale markets have contracted by around 70bps over the last year but are still

    Original URL path: http://www.formula1finance.com.au/finance-news/westpac-predict-home-loan-rates-to-hold-for-now/ (2014-01-04)
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  • variable rate Archives « Page 3 of 3 « Formula 1 Finance Formula 1 Finance
    interest rates on its entry level home loan products after hiking mortgage rates earlier this month On March 22 2010 Finance News Leave a comment rate on its basic variable home loan by 22 basis points to 6 27 per cent and cut the rate on its introductory variable mortgage by 45 basis points to 5 94 per cent The introductory variable home loan rate applies for only one year and will revert Read more Back to Top The Reserve Bank has signalled more home loan interest rate rises are on the way after it yesterday lifted the cash rate to 4 per cent On March 3 2010 Finance News Leave a comment rates by 0 25 percentage points in a move widely expected by economists and most predict rates will rise about one percentage point over the remainder of 2010 The big banks wasted no time following the RBA s lead The Commonwealth Bank announced within 90 minutes of the Read more Back to Top Fixed rate home loan demand on the rise On February 18 2010 Finance News Leave a comment More Australians are considering fixed rate home loans as fear sets in that the historically low variable rates experienced over the last few months are coming to an end CBA Westpac NAB and ANZ have all confirmed a lift in customers fixing rates over the past two Read more Back to Top ING DIRECT reduces fixed rates On January 8 2010 Finance News Leave a comment DIRECT has dropped the interest rate on its two three four and five year fixed rate residential mortgage products Effective from today the new rates will be some of the most competitively priced fixed rate mortgage products on the market Even though fixed rate volumes are Read more Back to Top

    Original URL path: http://www.formula1finance.com.au/tag/variable-rate/page/3/ (2014-01-04)
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  • rate cuts Archives « Page 3 of 3 « Formula 1 Finance Formula 1 Finance
    Mr Evans said low consumer sentiment could force the Reserve Bank of Australia to slash the official cash rate by up to 1 per cent in 2012 Not long ago all the talk was that Read more Back to Top RBA on hold inflation now in focus On May 31 2010 Finance News Leave a comment approvals flow through and households picking up their spending pace The Reserve Bank s economic growth forecasts for 2010 11 and 2011 12 are 3 5 and 3 75 respectively so they are clearly expecting the March quarter to be temporary lull in the quarterly growth cycle We were surprised earlier Read more Back to Top Home Loan Interest Rates May Drop On May 25 2010 Finance News Leave a comment are now pricing in about a 20 probability of a rate cut in Australia by September That of course is in response to the huge volatility in financial markets in response to the European crisis They are harking back to the surprise 100bp rate cuts we saw in October Read more Back to Top Page 3 of 3 1 2 3 Finance News RBA rate announcement Banks Mining Towns and Rental Yields Houses outperform units in capitals Positive return for Qld market Whats happening with Vacant Land Sales Credit conditions restricting construction Housing Values Rise Housing Facts Rates on Hold New home sales at 2 year high Categories Australian Dollar Bank fees Bank Profits Budget Enconomy Finance News Financial goals First Home Buyer Government banking reform Home loan product House prices Inflation Interest rate Rental Growth Stamp Duty Technology Wealth January 2014 M T W T F S S Dec 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

    Original URL path: http://www.formula1finance.com.au/tag/rate-cuts/page/3/ (2014-01-04)
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  • Fixed interest rate demand falls Formula 1 Finance
    the lender war for home loan volume growth It appears new borrowers are lapping up the newly introduced deals on offer in February taking advantage of lenders various incentives as they compete to outstrip each other of market share I think this will continue as the fixed interest rates are no longer that attractive with such a large gap between the variable and fixed rates Brett Colley 365 Posts Brett has been involved in management in the finance industry for over 13 years Brett s diverse experience in finance real estate developments and all facets of the construction industry confirms Formula 1 Finance to be an innovative professional finance broking firm On March 7 2011 Bank Profits Home loan product Interest rate Leave a comment Comments are closed Finance News RBA rate announcement Banks Mining Towns and Rental Yields Houses outperform units in capitals Positive return for Qld market Whats happening with Vacant Land Sales Credit conditions restricting construction Housing Values Rise Housing Facts Rates on Hold New home sales at 2 year high Categories Australian Dollar Bank fees Bank Profits Budget Enconomy Finance News Financial goals First Home Buyer Government banking reform Home loan product House prices Inflation Interest

    Original URL path: http://www.formula1finance.com.au/interest-rate/fixed-interest-rate-demand-falls/ (2014-01-04)
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