Home Mortgages Archives - Ask Alan Heath

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Further Rate Reductions on the Way

August 20, 2020

As I suggested back in June, rate reductions are starting to flow through to new borrower deals.

This is good news for my own existing clients because I review;

Every loan
Every Client
Every 6 months
And where a reduction is possible seek that on your behalf

You will start to see these reductions flowing through to your loan in your next review.

As you know, I seek written agreements with any bank that wants my new business. Namely that they agree to price my existing business in keeping with new offers whenever I make a request.

It’s Raining

March 31, 2020

If you’ve saved for a rainy day… It’s raining.

These are the guidelines you should follow for your home loan or your investment loan – if you find yourself in difficulty.

Depending on the level of difficulty you face, these are the steps you should follow… in order;

11 factors to consider when looking for your best home loan

August 13, 2019

Before we start, the best tip I can give you is… DO NOT DO IT YOURSELF… It took me years to work out that when friends looked at my home renovations and said, “nice tiling … do it yourself?” it was not a compliment. They were being polite. The fact that they could tell I had done it myself said it all.

I was about to start on this article when a thought appeared – why tell my clients (some of whom have been with me for 10-20 years) what they should look for? When instead I could ask them, what was most important to them, so I did.

Catch Your Breath – What is Happening.

August 8, 2019

The scene is now set for the rest of 2019.

I give credit to the Reserve Bank and the Government for pre-empting.

The Reserve Bank cut rates by 0.5% (0.4% of which was passed through) and the Government passed tax cuts through to everyone.

What was the background? The two big ticket items – Brexit and the US China Trade War.

Tell me about the future..

June 6, 2019

Anyone can read in the media that The Reserve Bank cut the cash rate yesterday.

I always endeavour to let you know what this means – so that you can plan ahead.

In July 2016 – almost 10 years after the GFC, interest rates had been low for a decade, there was a growing sentiment that they would inevitably rise – which always makes people worry.

I like to take notice of the people who have the RED (rates) button on their desk so back in 2016 I read an article from Janet Yelland (the outgoing chair of the US Federal Reserve) who had just told Congress that rates would stay low for ANOTHER decade – yes until 2025.

Good News Ahead

May 28, 2019

The current market mood was caused by negative Government intervention to suppress buyer demand and also the election itself.

Sentiment has changed post-election and now positive Government intervention brings good news again for buyers.

There are 4 key areas that signal this.

APRA has relaxed its tightening bias, now “encouraging” banks to lower their “assessment rate” (Banks currently assess your loan as if the rate is 7.5%, they will now be able to assess as if the rate is 6.5%) Your borrowing power will now be higher. (APRA answers to the Treasurer. This is clearly a government relaxation). https://www.abc.net.au/news/2019-05-21/australians-could-borrow-more-under-apra-proposal-on-mortgage-l/11133686

Ask Alan Mortgage Brokers Brisbane City Home Loans

How everyone will be better off post-election

May 22, 2019

We had an election where one of the choices we had to make, in relation to housing, allowed one generation in the population to benefit only at the expense of others.

What we chose instead though is to the benefit of every generation – yes that is possible.

First Home Buyers are the BIGGEST winners.
The cash deposit required has been the largest hurdle for them to overcome. Until now First Home Buyers have needed to find 5% of purchase price PLUS costs to get those keys to the front door. Mortgage Insurance (of around 3.5%) was the biggest cost. On a $500k purchase – this meant they had to find $42,500.

A Buyers Market

January 10, 2019

Most people misunderstand badly the term “buyers’ market” and hence never take advantage of one.

A buyers’ market is one where no-one is buying.

Consequently, it is a terrible time to sell.

In a buyers’ market there are more sellers than buyers, buyers can take their time, negotiate price and/or conditions to suit themselves and if a seller doesn’t “meet” their demands then the buyer moves on to a seller who will.

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