Finance Tips

Welcome to our July newsletter

With the Reserve Bank of Australia (RBA) still assessing the effects of previous rate cuts, the central bank decided to leave the official cash rate on hold at a historical low of 2.75 per cent. The RBA last cut the cash rate – by a quarter of a percentage point – in May, having made four cuts in 2012. At the RBA board’s July 2 meeting, governor Glenn Stevens said global financial conditions “remain very accommodative”. “The easing in monetary policy over the past 18 months has supported interest-sensitive spending and asset values and further effects can be expected over time,” Mr Stevens said. “The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households.”

Welcome to our February newsletter

Just as many leading economists predicted, the Reserve Bank of Australia decided to leave the cash rate on hold at 3.0 per cent at its February meeting. As the effects of last year’s rate cuts continue to filter through the Australian housing and financial markets, the Reserve Bank decided to err on the side of caution. “Sentiment in financial markets has continued to improve, with risk spreads narrowing and funding conditions for financial institutions becoming more favourable,” Reserve Bank governor Glenn Stevens said. “The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand.” The central bank’s decision comes on the back of some encouraging news in both the residential housing and mortgage/lending markets.

Welcome to our January newsletter

With the New Year upon us, it?s time to reflect on 2012 and think about what we wish to achieve over the coming 12 months. The New Year is the perfect time to evaluate your past decisions and assess your plans for the future. Whether you?re looking to build an investment portfolio this year, renovate your existing home, or simply stay on the financial path you paved in 2012, planning is essential. When creating your mind map for the year ahead you will need to consider a few factors from the year that was. First off, the cash rate took a tumble in 2012, and this is expected to remain relatively low for the foreseeable future. In December, the Reserve Bank lowered the official cash rate to three per cent ? the fourth reduction for the 2012 period. With the cash rate now currently standing at record low levels, there are plenty of savings available, with many lenders opting to pass on some, if not all, of the December rate cut to borrowers.

 

Welcome to our December newsletter

Mortgage holders and home buyers received an early Christmas present this year, with the Reserve Bank slashing 25 basis points off the official cash rate and taking it to an all-time low of just 3 per cent. In terms of interest rates, it has been a good year for borrowers, with more than 125 basis points cut from the cash rate over the past 12 months. In fact, we haven’t seen a cash rate this low since September 2009. So, while the news came as little surprise to many leading economists, home owners and potential buyers have an extra reason to celebrate this festive season. Several lenders have been quick to pass on the rate cut, with many more expected to make a move over the coming weeks. Whether you are an existing mortgage holder or are looking to enter the property market soon, rate reductions can only mean one thing – savings.

Welcome to our November newsletter

Just as Green Moon was a surprise winner on Melbourne Cup Day, the Reserve Bank’s decision to leave rates on hold at 3.25 per cent left many industry pundits shocked and surprised. For the past six years, the RBA has been determined to take some of the limelight from Australia’s race of races by adjusting the cash rate each November. This year however, they have broken tradition and seem happy to leave rates on hold – employing a ‘wait and see’ approach for the next few months. Speaking of the decision, Reserve Bank governor, Glenn Stevens, pointed to early recovery signs in both the European debt crisis and Australia’s lacklustre housing market. “Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high,” Mr Stevens said.

Welcome to our October newsletter 

With the Reserve Bank of Australia (RBA) lowering the cash rate by 25 basis points at its October meeting and fixed rate home loans at a five year low, now could be the perfect time for borrowers and investors to evaluate their position in the property market. The RBA’s decision to lower the cash rate for the first time in four months was unexpected, with many economists expecting rates to stay on hold in October. Reserve Bank governor Glenn Stevens said, “The outlook for growth in the world economy has softened over recent months, with estimates for global GDP being edged down, and risks to the outlook still seen to be on the downside. “Investment in dwellings has remained subdued, though there have been some tentative signs of improvement,” Mr Stevens said. “Interest rates for borrowers have for some months been a little below their medium-term averages

Welcome to our September newsletter

Home buyers and investors alike could snag themselves a bargain this spring, with early forecasts flagging suppressed property prices and lower mortgage rates over coming months. For the third consecutive month, the Reserve Bank of Australia’s (RBA’s) Board decided to leave the official cash rate unchanged at 3.50 per cent at its September meeting. Reserve Bank Governor Glenn Stevens said the RBA will continue to take a sit and wait approach as the effects of rate cuts made earlier in the year trickle down through the national economy.
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