December News
INTEREST RATES CUT AGAIN
The Reserve Bank of Australia (RBA) announced a full 1% rate cut on 2 December 2008. This brings the official interest rate to 4.25%, down 3 percentage points from the high of 7.25% earlier this year. This is the lowest level seen since late 2001. The major lenders were quick to announce reductions to their standard variable rates, with CBA and NAB cutting by the full 1 percentage point, ANZ by 0.83 points and Westpac by 0.8. Although the international money markets are still tight, the retail and non-bank lenders have been keeping up with the rates set by the Big 4.
We have received a large number of enquiries from people who recently entered into fixed-rate mortgages and feel that they are missing out on the new lower rates. Unfortunately for some borrowers, fees and penalties for breaking a fixed-rate period can run into the thousands of dollars and outweigh the benefit of refinancing to a lower rate. If you are feeling trapped in a rate that appears high now, remember that it is possible for interest rates to move up just as quickly as they have come down. That said, one of our loan consultants would be happy to review your mortgage for you, free of charge and with no obligation. It costs nothing to ask!
CHANGES TO PRODUCT OFFERINGS
Credit policies have been tightened recently, particularly for borrowers seeking more than 60% LVR Lo Doc loans or No Deposit / 95% LVR full doc loans. These products are still available, just not through every lender, so if your bank says ‘no’, we may be able to help.
Recent rate cuts have brought about some great offers from our lender panel in both fixed and variable interest rate products. Of course, it’s not all about a low interest rate. We can assist you to factor in both the establishment fees and monthly fees when comparing mortgage products.
FINANCIAL PLANNING WITH RETIREINVEST
We are happy to introduce our alliance partner, RetireInvest. Not only for people approaching retirement age, RetireInvest can assist you with all aspects of your personal insurance, financial planning and investment needs. They can help you with wealth creation, superannuation and retirement planning, tax minimisation, lifestyle protection with insurance and more.
It is important to consider your personal and family insurance needs when you increase your debt obligations. Most of us assume that our superannuation will be adequate to pay out our debts if we die but in reality the cover may be a lot less. If you were sick or injured, how would you pay the bills? If you became disabled or died prematurely, could your family survive without selling the home?
RetireInvest can tailor insurance especially for your circumstances, and because of their personalised care we highly recommend them. An initial 1 hour consultation is free of charge, and any further work is quoted upfront so there’s no hidden costs.
Kellie, Karen and Ken are available on 07 5491 6722, or contact us and we will arrange for them to get in touch you.
If you have any questions, or would like us to undertake a loan comparison for you, please feel free to call 1300 307 771 any time, or use the Quick Application or Contact Us buttons above. Of course there’s no obligation and our service to you is free.
Andrea Hookham
0412 753 166
Senior Loan Consultant
Leading Home Loans |
May News -
06 May 2009 
Newsletter, December -
08 Dec 2008 
