Glynn Finance Australia

12/07/2023

Welcome to the new financial year!

Take a look at our newsletter for the latest on rates, mortgage products, and finance news.

Wishing you the best,

Richard

Welcome to our latest edition as we embark on a new financial year filled with fresh opportunities and exciting developments. We hope this message finds you and your loved ones in good health and high spirits.

17/05/2021

Today we launch our all new Rate My Rate product comparison service.

For more information, as well as all the latest property market news, check out this month's edition of the Glynn Finance Newsletter!

Welcome to another addition of our monthly newsletter. In the last month, the RBA has again left the cash rate unchanged, highlighting that low interest rates will remain for the next 3 years. Fixed rates are continuing to be offered below 2% p.a.

07/04/2021

Glynn Finance's latest newsletter is here. This month we discuss sustainable lending products, our best interest rates and much more!

The team at Glynn Finance is seeing significant growth in the interest for sustainable, ethically conscious lending products. We are always making an effort to understand and provide socially responsible product recommendations to our clients as part of our regular business operations.

07/07/2020

Glynn Finance's latest Newsletter for July 2020 is now available! We discuss the latest RBA announcement, our products of the month, and much more.

At today's meeting, the RBA have again decided to keep rates on hold at 0.25%. Please read the attached article for further details on the announcement: https://www.rba.gov.au/media-releases/2020/mr-20-17.html

02/06/2020

Statement by Philip Lowe, Governor: Monetary Policy Decision
At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.

The global economy is experiencing a severe downturn as countries seek to contain the coronavirus. Many people have lost their jobs and there has been a sharp rise in unemployment. Over the past month, infection rates have declined in many countries and there has been some easing of restrictions on activity. If this continues, a recovery in the global economy will get under way, supported by both the large fiscal packages and the significant easing in monetary policies.

Globally, conditions in financial markets have continued to improve, although conditions in some markets remain fragile. Volatility has declined and credit markets have progressively opened to more firms. Bond rates remain at historically low levels.

In Australia, the government bond markets are operating effectively and the yield on 3-year Australian Government Securities (AGS) is at the target of around 25 basis points. Given these developments, the Bank has purchased government bonds on only one occasion since the previous Board meeting, with total purchases to date of around $50 billion. The Bank is prepared to scale-up its bond purchases again and will do whatever is necessary to ensure bond markets remain functional and to achieve the yield target for 3-year AGS. The target will remain in place until progress is being made towards the goals for full employment and inflation.

The Bank's market operations are continuing to support a high level of liquidity in the Australian financial system. Authorised deposit-taking institutions are making use of the Term Funding Facility, with total drawings to date of around $6 billion. Further use of this facility is expected over coming months.

The Australian economy is going through a very difficult period and is experiencing the biggest economic contraction since the 1930s. In April, total hours worked declined by an unprecedented 9 per cent and more than 600,000 people lost their jobs, with many more people working zero hours. Household spending weakened very considerably and investment plans are being deferred or cancelled.

Notwithstanding these developments, it is possible that the depth of the downturn will be less than earlier expected. The rate of new infections has declined significantly and some restrictions have been eased earlier than was previously thought likely. And there are signs that hours worked stabilised in early May, after the earlier very sharp decline. There has also been a pick-up in some forms of consumer spending.

However, the outlook, including the nature and speed of the expected recovery, remains highly uncertain and the pandemic is likely to have long-lasting effects on the economy. In the period immediately ahead, much will depend on the confidence that people and businesses have about the health situation and their own finances.

The substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia is helping the economy through this difficult period. It is likely that this fiscal and monetary support will be required for some time.

The Board is committed to do what it can to support jobs, incomes and businesses and to make sure that Australia is well placed for the recovery. Its actions are keeping funding costs low and supporting the supply of credit to households and businesses. This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band.

19/03/2020

RBA DROP RATES
Following an emergency meeting held this afternoon, the Reserve Bank of Australia (RBA) has stepped up the action it's taking to support the domestic economy in response to the spreading impact of the COVID-19 pandemic - as has become the norm at central banks around the world in days past.

As of today, 19 March, the official cash rate has been slashed to a new record low of 0.25%.

The RBA has previously communicated that 0.25% is its floor; rather than moving to 0%, the central bank will likely look to other support measures moving forward.

03/03/2020

The RBA today announced a .25% cut to the cash rate bringing it down to a record low of .5%.
In quick response, all four majors stated they will drop their standard variable rates by .25%. Please give me a call or email to check you are on the best interest rate for yor personal situation.
Regard
Richard

03/12/2019

The Reserve Bank of Australia (RBA) has just announced the December cash rate, acting in accordance with market expectations and holding at the current record low of 0.75%.

“If the upcoming data releases this month don’t show GDP growth and consumer spending recovery, the pressure will be on for another cash rate cut," said Canstar group executive of financial services, Steve Mickenbecker.

“Now is likely too soon to definitively assess the impact of tax and rate cuts, but there is evidence to suggest that interest rate cuts are not stimulating consumer spending.

“Christmas spending will be the test; if we don’t see healthy consumer spending this month, the push will be on for a February cut.”

Following the October cash rate cut, a major lender reported just 7% of its borrowers opted to reduce their repayments, implying a significant portion of household funds has been freed up to be spent elsewhere.

Canstar’s 2019 Consumer Pulse Report found Aussie mortgage holders are paying on average an interest rate of 3.88%.

“[This] is high in today’s standards. Switching from 3.88% to the lowest rate of 2.69% on $400,000 loan could see someone save $94,250 over the 30-year life of the loan or $260 a month in repayments,” said Mickenbecker.

“There are better rates available, and it seems new borrowers are getting a better rate at the expense of existing borrowers.”

There are currently 330 owner occupied home loans with an interest rate below 3% listed on Canstar.

Call Richard at Glynn Finance for a complimentary Mortgage review.

16/10/2019

Credit report changes: don’t be caught out
If you applied for a home loan in the current financial environment, your lender would probably assess your application in the context of both your credit score and your credit history – on top of your income, assets, liabilities and living expenses.
Your credit score is a number calculated by a credit-reporting agency, which compares you to other borrowers and categorises your credit risk profile. The higher your score, the lower your risk: i.e. you’re ‘less likely’ to record a default or bankruptcy on your credit file over the next 12 months.
What’s changed?
On 1 July 2018, Australia moved to a positive credit reporting system. This brings us in line with other OECD countries, and means credit providers are obliged to provide credit-reporting agencies with more information on what accounts you hold and how you’re managing them.
Previously, your credit file would only capture negative credit events: overdue debts, defaults, bankruptcies and court judgments. But the new system – also known as ‘comprehensive credit reporting’ – records your entire repayment history for each line of credit you have. This could include your: • Mortgage • Car/personal loan • Credit/store cards • Utility and telecommunications services.

The system details when you make payments on time or late, and when accounts are opened and closed. This means potential lenders have a much fuller picture of exactly what debt you hold and just how effectively you’re servicing it.
What does it all mean?

While this level of scrutiny may feel uncomfortable, it could enable you to obtain a loan for which you’d previously have been rejected. Demonstrating sustained good financial management prior to applying for credit will show up on your file and could offset a default notice from a few years ago. Also, if you’re a newer borrower or have little credit history, you should be able to establish a credit score more quickly.
What can you do?
• Set up automatic payments It’s more important than ever to make sure you don’t accidentally miss payments. With many credit providers, you can set up automatic payments as a safeguard.
• Be on the front foot If you think you may be late with a payment, get in touch with your credit provider – immediately. They may have a hardship provision that could offer you more time to pay, which could protect your credit score. See the ASIC Money Smart website for more details on hardship provisions.
• Be aware of what contributes to your credit score Credit-reporting agencies calculate your credit score based on how much credit you have, what type of credit you have, and how you well you’re servicing it. Therefore, to improve your credit score you can:
• Close credit cards you don’t need • Lower your credit limits (if you can maintain a low balance) • Avoid applying for credit from less reputable lenders • Pay all your bills on time • Settle any defaults • Limit new credit enquiries when applying for a home loan.
Check your credit file every year It’s a good idea to check your credit file regularly and especially right before applying for a mortgage. If you find any errors, you should dispute them immediately with the agency or the credit provider, as credit limits or late payments can sometimes be incorrectly listed.
More disturbingly, identity theft can sometimes also occur, making it even more important that you take ownership of your credit file, check it carefully, and keep your personal documentation and identification details safe.

29/08/2019

The good news is that the servicing interest rate, (or the rate Banks use to calculate your maximum borrowing capacity) has dropped.