Mortgages Archives - Ask Alan Heath

A Budget Thought You Won’t Be Expecting – the THREE mistakes people make.

May 15, 2024

The Council of Social Services (ACOSS) always makes a submission to the budget. This year it notes that the top 10% of Australians have over $5.2 million in net wealth and that the gap between the top 10% and those below is somehow inherently wrong.

It also notes that the top 10% have made their wealth predominantly through property – and with their comments they infer this is somehow inherently wrong too.

My “Budget” in Reply comment is for EVERYONE that aspires to own a home – First Home Buyers and Investors alike.

Well, that was a surprise…

May 3, 2023

Should it surprise us that 100% of economists on Monday became only 70% of economists by Wednesday?

I will carefully analyse what the Reserve Bank board says as well as Bill Evans.

I think it is possible that with this Reserve Bank board undergoing significant change by September that they wanted to fire one last shot – I will write in detail next week.

Today… I am aware that for some of my clients any interest rate change is now causing concern – meaning that all expenditure and income is under review given that the home loan is now vacuuming out more of your cash – that is the very point of the bluntness of the interest rate tool in order to cool an economy (post Covid).

An open letter to Banks on behalf of my clients.

May 2, 2023

I am always open to opportunities with new lenders for my new to bank clients.

Under BID (Best Interest Duty) my obligations are clear – and they are obligations on me personally.

Banks have absolutely no obligations under BID.

This means that in the main – our interests do not align.

There is one place they do – new business.

How best to Plan Ahead…

March 7, 2023

With the Reserve Bank likely lifting rates later today – how best to plan ahead.

I asked two clients recently if they were interested in hearing why rates are being lifted – and their answer could not have been clearer … “no – we read your emails because you tell us how to plan”

The so-called experts (and even Bill Evans from Westpac has changed his view a few times recently) seem divided but also in agreement on between 1 and 3 rates rises – including today’s.

Waiting For The Crash…

March 7, 2023

I cannot count the number of times in my 25 years of mortgage broking I have heard the “I’m waiting for the crash” reason for delaying a buying decision.

First – EVERY buyer (me included) hopes for property to be “down” 5 minutes before they buy and then “up” 5 minutes after they have bought.

Ask Alan Heath Interest Rates Blather 2023

2023 – Interest Rates – Let the blather begin…

February 9, 2023

Inflation was slightly higher in December than expected. Inflation kicked off with oil price shocks caused by the Russia/Ukraine conflict, so rate rises did feel a “bit unfair” to many.

However, in December one of the single biggest contributors was travel and holidays. After two years of disappointment, we all spent whatever it took to have a holiday (and so we should). But that is 100% discretionary spending, on us. Too much money chasing too few goods. That always has a bad end – with the price of everything going up. Inflation kills wealth and inflation has to be controlled.

Christmas Comes Early

December 6, 2022

Amidst all the bad news of 2022 comes some good news at last.

It is just possible that the rate of inflation in Australia has peaked (in October) earlier than predicted by economists (The Australian 1 Dec 2022: Robert Gottliebsen).

(By the way – what do you call 100 economists in a room?… a vacuum!)

APRA, The Reserve Bank and Interest Rates

October 29, 2021

The Reserve Bank has cut rates to low levels to encourage borrowing.

This is a good thing.

The strategy has worked.

Housing and construction are the backbone of our economy – because they generate so much employment and activity.

House price has increased – and that in itself is not a bad thing.

Interest Rates in the Future – My Role and Yours – Plan for 4%

October 8, 2021

Bill Evans took up the Chief Economist role at Westpac in 1991 and has consistently been “getting the big calls right for 30 years”.

When he talks – I listen.

Bill Evans predicts (The Australian Sat 11^th Sep 2021) “Interest rates will rise… starting in the first quarter 2023… and going up (in steps) by (only) 1.25%”.

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;

07:30 – 19:00

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