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Blog 2019-02-10T06:51:46+00:00

RBA rates: calibrate and consolidate

August 11th, 2019|Categories: Uncategorized|

This month the Reserve Bank of Australia (RBA) announced the cash rate would stay on hold at 1.0%, following two consecutive cuts in the preceding months that totalled fifty basis points. The decision was widely expected, especially considering that cutting the official cash rate three months in a row has only happened twice before: once in early 2001 and again during the Global Financial Crisis in late 2008. For us, and perhaps for you, the anticipation around rate movements can often be little more than a momentarily distraction. While speculators and punters alike tend to get swept up in the excitement [...]

APRA hands borrowers the chance to borrow more

August 7th, 2019|Categories: Uncategorized|

July brought with it news that has effectively opened the doors for prospective and current home owners to access bigger mortgages by borrowing more. The Australian Prudential Regulation Authority (APRA) has relaxed stringent lending restrictions on lenders by scrapping the “stress test” rule. Introduced in 2014, the rule required banks and other lenders to assess customers on their ability to manage repayments with an interest rate of 7.25 percent. By scrapping the rule, APRA has essentially given banks the freedom to set their own serviceability buffers, also known as an “assessment rate”. However, the regulator now stipulates that lenders ensure borrowers [...]

What does a rate cut mean for you?

June 18th, 2019|Categories: Uncategorized|

As you'll no doubt be aware, the RBA (Reserve Bank of Australia) announced at its June meeting that it would lower the cash rate by 25 basis points to 1.25 per cent citing that it would support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. Although widely predicted, the first cash rate drop in three years certainly caused a flurry of mixed emotions and reactions across the economy with some seeing it as a positive thing - it means we all save money right? While others see it as more of a red flag. [...]

Negative Gearing: Is There a Better Way?

May 29th, 2019|Categories: Uncategorized|

Long used as a tax minimisation strategy, negative gearing has become almost a rite of passage for working Australians. However, we are seeing time and time again, instances of people using negative gearing without really understanding how it works and how it might not be the right strategy for their situation. Using negative gearing as a primary means to save money on tax simply will not work in all cases, and should be approached with caution in combination with a comprehensive understanding of the associated risks. What is negative gearing?Negative gearing is when your income from an investment (such as dividends [...]

How to smash your finance goals (again)

May 26th, 2019|Categories: Uncategorized|

June is upon us. We’re halfway done. Believe it or not, the last six months are behind us and you may or may not be happy with what you’ve achieved vs what you set out to achieve. If not, we totally get it. You see, the thing is, January is probably not the best time to be making realistic New Year’s Resolutions. We’re full of food, engaged in a hedonistic existence of parties, too much or too little sleep, and a general lack of routine and self-discipline. The temporary departure from our usual daily grind fills us with a sense of [...]

The unknown risks of Afterpay

April 22nd, 2019|Categories: Uncategorized|

Afterpay may not be afteryay if you're interested in buying a house or refinancing any time soon. A recent report conducted by ASIC revealed that the number of Australians using buy now, pay later services has increased by 500% in the last two financial years, largely due to the emergence of marketing savvy services like Afterpay and Zip. To demonstrate its growth, the number of transactions in April 2016 was around 50,000, growing to 1.9 million transactions in just over two years. As at 30 June 2018, the amount owing in outstanding balances was $903 million. With consumers citing ease of [...]

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