Yesterdays RBA Rate Cut vs Your Borrowing Power You’re probably all aware that the RBA rate cut reduced the cash rate by 0.25% yesterday. The first RBA rate cut in a year. There are two possible implications of this move; Will house prices increase because people can borrow more money? Will house prices increase because […]
Killer home loan jargon
Have you been confused by killer home loan jargon? The world of property finance has more that it’s fair share of home loan jargon. Perhaps this is to make us in the industry feel clever, I’m not sure, but it’s certainly very common. Consider this statement; “The current indicator rate for your loan is now 5.8%. […]
Home Loan Pre Approval
Home Loan Pre Approval can give you the edge. In todays competitive loan and property market, having a home loan pre approval can help you succeed. Why? You know the limits of your borrowing capacity and maximum purchase price You will generate more interest from real estate agents if they know you have a home loan pre […]
Borrowing Capacity
Borrowing Capacity vs Budget Capacity A phrase I heard many years ago has stuck in my mind and encapsulates the title of this article. “Just because the bank says you can borrow a certain amount of money doesn’t mean you can afford to.” It neatly sums up the difference between your theoretical borrowing capacity i.e. […]
Fortnightly Loan Payments
Fortnightly loan payments pay off loan faster? A question I am often asked is whether fortnightly loan payments will help pay off your home loan faster. The answer is…it depends. It depends on how your bank or lender calculates your fortnightly loan payments. Yes there are two ways of calculating the payment. One will accelerate the repayment […]