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Mortgage News Update - Dec 2009


Guest David Mottram

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Guest David Mottram

Following the Federal Bank rate rise of 0.25% for the 3rd month running, the base rate is now 3.75%.

 

The big 4 banks, Westpac, NAB, Commonwealth, ANZ and all their subsiduaries hold something like 90% market share of the AU mortgage market!!

 

In Sept & October the lenders passed on the full 0.25% onto their rates yet this month, even though the rate has gone up this month by just 0.25% some of the banks have increased by more!!!!

 

Westpac +0.45%

Commonwealth + 0.37%

ANZ + 0.35%

 

NAB only increased theirs by the 0.25%.

 

Do the big 4 banks have too much power???

 

I think so...

 

Also......

 

Keystart Home Loans recently increased their interest rate for new borrowers only from 5.24% to 6.27%. This does not include this months rate increase.

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Guest David Mottram

Interest Rates:

As you may already know, the federal bank has increased interest rates by 0.25% in October, November and December, with further increases expected next year.

Lenders matched the 0.25% increases in October and November but with the ever increasing lenders costs of raising funds to lend, the December increase saw lenders increase their variable rates by bigger margins:

 

Westpac = +0.45% (now 6.06%)

CBA = +0.37% (now 5.93%)

ANZ = +0.35% (now 5.96%)

NAB = +0.25% (now 5.99%)

 

The increases in rates means that for every 0.25% increase, there is an approx increase of

$15.00 per month/per $100k balance.

 

Keystart Home Loans:

 

Keystart Home Loans is a government funder lender that lends in WA only ideally to first home buyers.

They will accept applications through Mortgage Brokers with only 2% genuine savings and a further 2% from the FHOG as long as it is 4% in total. (5% for New builds)

Keystart Home Loans, income serviceability criteria is quite strict and thus they will lend less money than other lenders, but want smaller deposit.

They have a 2 tier interest rate structure:

5.74% for applications received before 1st September 2009 and 6.52% for applications after 1st September 2009.

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  • 2 weeks later...
Guest Bob Tonnor

If anyone out there is looking for a mortgage i would suggest that you take a look at this link http://intranets.canstar.com.au/surveys/mortgage.htm it may just save you a lot of cash. If you are using a broker try this link http://www.yourshare.com.au/. The big four seem to be abusing their position at the momemt, but as you can see from the attached list they are not the only lenders out there.

 

Bob

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  • 3 weeks later...
Guest Bobcat

If anyone out there is looking for a mortgage in Perth; I heartily recommend one David Mottram from Thane Finance.

 

Not only is he a competent and highly efficient Mortgage Broker....... he is a fellow Perth Poms member.

 

In the last 8 weeks David has processed 12 deals for us and each one has been hitch-free. My clients are more than happy with his services and i guarantee thet were you to utilise his services........... you too would be more than happy with his services too. What's more............. there is no charge for utilising his services.

 

 

John

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