Equity Portfolio Finance

14/07/2022

Rate-rise - to dampen the consumer & business or to kill it.
- 1.25% increase in aggregate rates, followed (expected) by a 0.50% rise in August.
- It is hoped that rate increases will finally balance from September onwards
- Inflation is at its highest level in more than 30 years
- A rapid decline in consumer and business confidence

- Elevated Household Savings since the start of the Covid-19
- Strong labour market (can also contribute to inflation)
- Resilient Economy

There are a lot of people already struggling with the rising costs of essentials, like groceries, petrol, medicine, and gas/electricity. A further rate hike will add to that even though the higher spending is due to COVID recovery, supply chain problems, the Ukraine crisis, and natural disasters.

We are reminded to tighten our belts and stop spending. What will be the spillover impact?
A home loan will have an interest rate of around 4.5% by the end of the year. (RBA around 2.5%)
About 10% of property prices fall, then recover within 12 months.
What do you think?

27/03/2022

New 5.0-star Review: "Deepak went above and beyond to help us get our home loan and offered a fantastic service. He is very knowledgeable and took his time to explain evey detail to us accurately, and was always available to answer any questions promptly and in detail. He followed up the process of home loan approval very closely for us. Highly recommend Deepak and Equity Portfolio Finance."

19/10/2021

Business Costs Assistance Program Round Four – Construction

The Victorian Government is providing grants for eligible construction businesses, including employing and non-employing businesses, impacted by the two-week shutdown from 21 September – 4 October 2021.

visit:

Information about grants and support to help your workplace plan and respond to COVID-19

19/10/2021

Homebuyer Fund
The Victorian Government announced earlier the $500 million Victorian Homebuyer Fund to support more than 3,000 aspiring homeowners to purchase a residential property in eligible Victorian locations.

Eligible homebuyers can now receive a contribution of up to 25% towards the purchase price of their property, reducing their minimum required deposit to 5% and avoiding the need to pay Lenders Mortgage Insurance…

Please visit https://www.sro.vic.gov.au/homebuyer or contact (03) 7020 1549 for further information.

05/10/2021

“The prudential regulator has moved to take some heat out of the housing market, raising the “serviceability buffer” that banks use to assess loans, which it says will reduce the maximum borrowing capacity for the typical borrower by around 5 per cent.”..
…”APRA has decided not to implement debt-to-income limits for now”

The prudential regulator has announced its intention to take some heat out of the housing market by raising the serviceability buffer by 50 basis points to 3 per cent.

19/11/2020

It's taken several weeks, but more banks have responded to the RBA cash rate cuts, resulting in the lowest fixed-rate home loans ever.

you can read more here https://www.abc.net.au/.../fixed-term-interest.../12892924

13/11/2020

Following the RBA cash rate cuts, banks have responded by slashing interest rates, with commonwealth bank offering "the lowest ever advertised home loan rate" Making now the perfect time to refinance or apply for a home loan! Contact us now to see how much you could save !!

you can read more here https://www.9news.com.au/national/commonwealth-bank-cuts-fixed-rate-loans-but-variable-rates-untouched/e1da0757-4dfa-46f0-8908-0266944b2ea2

04/11/2020

The lowest cash rate in history could mean you pay less on your home loan! And make now the perfect time to refinance

The Reserve Bank of Australia (RBA) has cut the official cash rate from 0.25 per cent to a new record low of 0.10 per cent.
This reduction, along with other monetary measures, are needed to assist with the economic recovery, as mentioned in Governor

Philip Lowe’s official statement:
“The combination of the RBA’s bond purchases and lower interest rates across the yield curve will assist the recovery by: lowering financing costs for borrowers; contributing to a lower exchange rate than otherwise; and supporting asset prices and balance sheets. At the same time, the RBA’s Term Funding Facility is contributing to low funding costs and supporting the supply of credit to the economy.”

“Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time. For its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target
range.” A number of lenders have already moved in anticipation of the rate reduction meaning now is the ideal time to review your current loan

29/10/2020

Victorian house prices have been flat and steady throughout the majority of the covid 19 crisis. In our opinion, there will be a short term rebound as restrictions are being eased, as this will allow house viewings and other real estate support industries to reopen. Invigorating the real estate market
You can read more here https://www.domain.com.au/.../house-price-report.../

21/10/2020

low-interest rates mean that thousands of Australians are saving money refinancing their home loans. Let us help you do the same.

28/09/2020

Treasurer Josh Frydenberg may have just made it significantly easier for you to refinance or get a new home loan!

In a bid to stimulate the economy, Josh Frydenberg plans to drop responsible lending laws, meaning the shifting of responsibility from ‘lender beware’ back towards traditional ‘borrower beware’.
This is great news for anyone looking to get refinance or apply for a home loan, as there will be a considerable decrease in red tape and a much higher chance of you getting the loan you need provided it passes in the parliament.

Will it do more good than harm? This is a logical question that arises from encouraging greater lending during a recession and years to come. The time will tell! I would hope the decision makers and all the stakeholders. The ASIC, APRA, and other regulatory body and industry voices will play their constructive role to define these new changes.
Read more here https://switzer.com.au/.../yahoo-frydenberg-wants-to.../