U-prosper

09/06/2022

Perspective Is essential

Did you know that the Cash Rate was higher in 2020 than it is now? The RBA’S decision to lift rates, and the warning of further increases shouldn’t be cause for panic. We have been at record low rates for such a long time now, it was inevitable that they would go up at some point.

In saying that, there are things that you can do to ease the financial burden of higher repayments:

1. If you have locked in a low fixed rate earlier this year for all or atleast a portion of your loan, make the most of the lower repayments by adding any surplus funds to your savings account. Most lenders will also allow an extra 10k per year to be paid into fixed rate loans (just make sure you check with your bank before doing this; fees can apply).

2. Work out what your repayments will go up to based on interest rates increasing to 4.00% or higher and start adjusting your lifestyle now so that you are already prepared for higher mortgage costs.

3. If you are currently variable, try to negotiate your interest rate down with your existing lender and if they do not compete with current offers, refinance to a new lender and secure a low rate. Some lenders are waiving upfront and ongoing fees, giving up to 4k cashback, and offering sharp variable rates.

4. Maximise the principal reductions on your home loan by utilising your offset account, ensure you have as much money sitting in the offset as you can. If you don’t have an offset account, utilise your redraw account instead.

Just remember property and financial markets always move in cycles, you just need to make sure you can retain your assets for the long term and make the most of any opportunities that arise at each point in the cycle.

If you would like some personalised advice tailored to suit your own needs, please don’t hesitate to give me a call - 0422 417 108.

26/03/2020

Over the past week, with the recent changes that have been happening, I wanted to host a live Q&A session to discuss some of your questions and concerns as relates to your lending situation.

The Q&A will be hosted via Zoom –and you can login from your phone, Ipad or computer..

When: Friday, 27th March @ 7 pm Queensland Time

Link: https://zoom.us/j/949038287?pwd=blhXVmk2UUFaZUQ0ZVRrcmQ5RC9qdz09

Any questions let me know! Otherwise i look forward to seeing you on there!

03/12/2019

The Reserve Bank of Australia (RBA) has delivered its final cash rate announcement for the year with the decision to leave the rate unchanged at 0.75%.

In making the decision the RBA appears to be assessing the impact on the broader economy of the three previous cash rate reductions together with recent tax cuts, government spending on infrastructure and signs of improvement in the resources sector.

The RBA will be keeping a close eye on household consumption and the GDP numbers being released later this week as it stays focused on the aim of restoring inflation to within its target range of 2 - 3 %.

Any questions please let me know!

The Reserve Bank has kept the official interest rate on hold at 0.75 per cent at Tuesday's meeting, the last one for this year, sticking with its position that the economy has passed a "gentle turning point".

01/10/2019

For the 3rd time in five months the Reserve Bank of Australia has decided to reduce the official cash rate, this time to 0.75%, in a concentrated effort to boost the economy.

In making the decision to lower rates again the RBA has strongly reinforced its focus on supporting employment growth, and boosting household consumption to restore inflation to within its target range of 2 -3% pa.

The RBA will also have been very conscious of the impact on Australia's exchange rate and the competitiveness of our exports had it not reduced rates in line with global trends.

The cut, which the big four bank economists predicted, leaves the central bank just one 0.25 percentage point cut away from where it has previously indicated it could start quantitative easing.

27/08/2019

Building your first , second or 10th investment property can be a pretty daunting process. That's without even considering the finance side of things.

We just had a client finish building their second investment property and whilst initially they were declined by their long term bank, we managed to successfully secure the finance, and at a cheaper rate than they were quoted. It's a win win situation that they may not have explored if they had not sought advice from us.

08/08/2019

This actually looks better than it did 2 months ago.
Looking a bit more positive. The market appears to be stabilising a little across the board 👏.
The primary drivers for the recent turnaround in the housing market performance were Australia's two largest cities, Sydney and Melbourne, where values have ticked higher over the past two months, taking values 0.3% off their floor in Sydney and 0.4% higher in Melbourne. The 0.2% lift in Brisbane values was the first month-on-month rise since November last year.

03/07/2019

No doubt you all saw the recent cash rate decrease down to 1.00% yesterday! Whilst it appears as though most of the banks won't be passing on the full cut, we are still seeing atleast some of the rate cut being passed onto consumers.

This is great news, but to be frank, it's pretty useless if you don't actually use it to get ahead financially while you can. To me, keeping your repayments the same as what they were and concentrating on paying down the mortgage quicker is a great option, as is putting the difference into your savings or offset accounts.
It might also be a great time to top up your superannuation, or explore other investment opportunities to assist in achieving your financial goals.

Either way whatever it may be, I do urge you to not get too complacent with these historically low rates, utilise this to assist in your quest for financial freedom. They will not be this low forever, and be assured that when they do start rising its likely to be in quick succession.

If you need some advice, or you're simply just wondering if the current interest rate you're paying is too high, make sure you give me a call to have a quick chat on 0422 417 108.

24/06/2019

Here's a fun fact for your Monday night, one that even shocked me!
It's been reported that by delaying the effective date of the interest rate cut, the big 4 banks combined are said to have pocketed over $108,000,000!
Fancy making that much money over a 2-3 week period!

04/06/2019

YEW YEW FOR HOME OWNERS!!

This update comes with a great big smile for home owners, the RBA has reduced the cash rate down to 1.25%, a historical low. This is the first rate move since August 2016!

In making this decision the RBA has taken into account inflation being below its target range of 2-3%, continued pressure on house prices, evidence of rising levels of mortgage stress, a borrowing squeeze in response to the Banking Royal Commission, slow wages growth and continued concerns around the level of under employment.

What does this mean for you?

Well, in an ideal world the banks will pass on the full rate cut and your mortgage repayments will reduce down significantly. We will have to wait and see if the banks actually pass down the rate cut in the coming few days/weeks - i'll keep you posted!

Whilst this is seen as a positive for mortgage holders, there is obviously a little concern with how the economy is performing. This is why the Government is putting pressure on banks to pass the full rate cut onto consumers, to help stimulate the economy.
As a result, I expect to see some pretty amazing interest rates come forward over the coming months , so i'll keep you posted, and as always call if you want to discuss anything further.

04/06/2019

Sorry all, I have been MIA for a while! I've had a lot on and unfortunately not enough time in the day to keep up with social media.
I just wanted to give you a quick update on the life in finance at the moment.

1. A lot of talk going on at the moment of an interest rate cut, and there has been pressure from the Government that the banks are to pass on the full cut if/when it happens - Stay tuned!
2. Bank policy is still incredibly tight, lending is still hard however there looks like there could be a slight reprieve in sight. There is talk at the moment of reducing down the assessment rate that helps the banks determine a customers borrowing capacity. This means that people will be able to have a bigger mortgage, or atleast if not a bigger mortgage they will have a stronger application to present to the banks.

3.Loans are still being approved. There is still interest only loans available for investors, Bridging finance, developments, and standard owner occupied lending is still getting approved. Its just a little tough and requires a little more patience to get the loan through... and of course a good broker!

4. Thanks to the Liberal Government remaining in power mortgage brokers still live to fight another bank! Pheww that was a close call.

Remember i'm just a phone call away and more than happy to discuss your situation and see if I can help 0422 417 108.

21/04/2019

Happy Easter everyone! I hope you're all consuming far too much chocolate with family and friends!

09/04/2019

Everyone wants a piece of the sunshine state.
About time they all come to their senses!

"QLD Net interstate migration over the year to September 2018 was recorded at 24,316 persons, which although it remains high was slightly lower than the previous quarter. With 52,409 arrivals, NSW accounted for almost 50% (49.45%) of interstate arrivals to Qld over the year. Arrivals from NSW were the highest they’ve been since December 2005. The 24,680 arrivals from Vic were the greatest since June 2004 and the 3,799 arrivals from ACT was the greatest since June 2005."
Stats thanks to Corelogic.