With the uncertainty in the financial markets of recent weeks many professionals are now expecting official interest rates to move lower.
Unless international conditions worsen we do not expect the RBA to move in the coming months.
Market forecasts interest rates to head lower
August 31st, 2011RBA keeps rates on hold
August 5th, 2011Given the level of uncertainty in the global financial markets it comes as little surprise that the RBA has decided to leave official interest rates unchanged for another month.
We still expect interest rates to rise later this year and mortgage rates to follow but for now home owners can rest easy
Mortgage broker calls for increase to FHOG
June 16th, 2011Mortgage broker Loan Market has called for the FHOG to be increased to reflect changes in the Australian housing market
seemingly unable to see any correlation between increasing house prices and the introduction of the FHOG the broker pointed out that when the grant was introduced in 2000 the average loan taken out by first home buyers was $137K but in 2011 the average loan had increased to $285K. clearly economics is not a strong point for this broker.
the FHOG is a flawed policy that should be scrapped not increased. As the data supports all the FHOG does is to increase property prices and through the magic of gearing the increase will be several multiples of the $7K grant. so instead of helping the first home buyer the FHOG helps existing homeowners by increasing the price of existing property by ~$50K
A mortgage broker calling for the scheme to be increased is understandable as it would be in their self interest for this to happen. However the government needs to focus on supply side issues if they really want to help out first home buyers.