Wednesday, October 17, 2012

Housing Affordabilty - Best in a decade

Probably a good indication of how expensive Housing Affordability has been over the last decade. This article shows that house ownership is cheaper now than it has been for a decade.

An Article from The Adviser

Housing Affordabilty - Best in a decade

A spate of interest rate cuts over the last 12 months has helped housing affordability to reach its best levels since the first half of the last decade.

According to the Australian Housing Outlook report, housing affordability has improved across almost every capital city over the last 12 months.

“Outside of 2009 when interest rates were at 40 year lows, housing affordability in Sydney is at its best level since 2001, despite being the least affordable capital city,” the report read.

“Similarly, affordability in Brisbane is at its best level since 2003, and Adelaide and Perth are at their most affordable since 2004.”

The report said the combination of a fall in median house prices, coupled with a 95 basis point reduction in the standard variable interest rate over 2011/12, has seen housing affordability improve across all cities.

And while affordability has already improved significantly over the last 12 months, BIS Shrapnel’s Robert Mellor told media in Sydney yesterday that he expects further improvement in housing affordability over the coming year as the average standard variable rate is expected to fall another 40 basis points in 2012/13.

As per the report, homes in Sydney were considered to be the “least affordable” of all the capital cities, while Canberra was considered to have the “most affordable properties” when monthly mortgage repayments and the average income are taken into account.
Mortgages - Leasing - Conveyancing - Insurance - Wealth

Sunday, October 14, 2012

ANZ cuts rates by 0.20%

ANZ recently cut is variable rate by 20 basis points , becoming the last major to pass on the RBA's cut.

The bank announced it will reduce its standard variable rates by 20bps effective next Friday. The move takes the bank's variable rate to 6.60%, the same as CBA and lower than Westpac's 6.71%, but higher than NAB's 6.58%.

ANZ Australia CEO Philip Chronican stated
“While this increase in competition is benefiting the majority of our customers through historically high deposit rates relative to the cash rate, last week’s decision from the RBA has provided some scope to once again reduce our variable lending rates,” he said.

Major Banks Standard Variable Rates
ANZ - 6.60%
CBA - 6.60%
NAB - 6.58%
WBC - 6.69%

But remember the Standard Variable is half of the story.
The real story is:
   1. What discount can you get - ie the Actual Rate you pay
   2. What are the other Fees
   3. What features will the loan have

Give Premium Broker a call - We make finance easy

PremiumBroker - making finance easy