Mortgage rate stays on hold, for now

Another sigh of relief for my back pocket as the Reserve Bank made a decision on Tuesday to leave the cash rate unchanged! Shortly before their Tuesday meeting the odds seemed to be on a rate rise, and the major banks sound like they were all very keen for there to be an increase - they are complaining about the higher deposit rates and lower mortgage rates that they are currently dealing with (and not liking). However, none of the major banks wanted to be "the bad guy" who put up interest rates...
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Will a rising Aussie dollar save our mortgage repayments?

Will interest rates rise in the near future or won't they ... that's the million dollar question and one we have mulled over a lot - even as recently as last week we were contemplating what the futures market had to say about the probability of the Reserve Bank raising the cash rate and banks following suit with hikes in home loan interest rates. Now let's throw another variable into the mix: the value of the Australian dollar. This week the press have been talking about the Australian dollar...
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Interest rate rises in the next year: Will they or won’t they?

After having so many interest rate rises over the past twelve months, it's been quite a pleasure since May to not be anxious about the increase of my monthly mortgage repayment, since the Reserve Bank (and fortunately, my bank too) have seen fit to keep rates stable. But it's probably not safe to assume that this pleasant state of being will continue indefinitely: or is it? Whether or not interest rates will rise much in the next year or so is really a question of who you ask. There are plent...
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September Reserve Bank meeting keeps rates steady for now

There was no interest rate rise at the August meeting of the Reserve Bank: and snap, same again this week, again the cash rate has remained at 4.50 per cent after the Reserve Bank board got together for their first Tuesday in September meeting. The reason why is pretty neatly summed up by the RBA governor, Glenn Stevens, himself, in the monthly media release that follows the Reserve Bank meetings: The current setting of monetary policy is resulting in interest rates to borrowers around their...
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Mortgage news with election looming

In Australia the news this week is peppered with mortgage related news that is mostly related to the upcoming federal election: International reports have suggested that interest rates and their link to the Australian economy are one of the key factors in decision making of Australian voters for the federal election. They mention that house prices have generally recovered well from the global financial crisis but that rising interest rates are not helping new and especially first home buyers...
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No interest rate rise after August Reserve Bank meeting

So, the Reserve Bank board members have got together again and decided that at least for now, the official cash rate won't rise and that looks like meaning that our home loan interest rates will stay the same for at least another month, too. As we predicted, in the absence of a Reserve Bank rise banks will continue to wait it out rather than risk an interest rate rise before the federal election later this month, fearing a political backlash. Interestingly there's also a political element t...
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Inflation figures may increase our mortgage rates

When I was reading the paper on the weekend I can't say it made my day to see this headline: Warning: Your mortgage is going up. This story was carried by all the major papers across Australia and the headline was enough to make me more than a little concerned, despite having heard that an interest rate rise wasn't likely until after the election at the earliest. Of course, the headline was more attention grabbing than the actual article turned out to be. (Funny how often that happens with ne...
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Mortgage news on rates, laws and politicians

This week the mortgage news in Australia varies from banks trying not to raise interest rates, to new laws coming in to stop some of the excessive fees we can pay, and on to a mortgage belonging to the Leader of the Opposition, Tony Abbott! In more detail: The global financial crisis, among other factors, has made money more expensive for Australian banks, but they are under a lot of pressure not to raise interest rates unless the Reserve Bank does - so they are now having to find other meth...
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Experts more optimistic than us on mortgage rate rises

Surveys are showing that as individuals, mortgage holders like me are more pessimistic than the experts about how many interest rate rises we are going to have to pay out for in the next year or so. I guess those of us who are the ones who'll have to dig deeper in our pockets are more likely to be concerned about this, and it translates into statistics stating that consumers believe there will be at least three rises in interest rates in the next twelve months. The relevant surveys came from ...
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Less mortgages, but we can afford more interest

There are two big items in the mortgage news this week: for those of us already in the mortgage market, I'm looking at whether or not we can afford to pay higher interest rates, and if you're someone who's waiting to buy their first property and are trying to get a mortgage, there's news about more home loan applications getting knocked back. First off: nobody likes to pay more interest (well the banks like it if we do, but they're alone in enjoying that!) so it was a pleasant experience last...
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No interest rate rise for June

Phew. We've survived another start of the month Reserve Bank meeting without having to reach into our pockets and hand over more hard earned cash to the bank in the form of higher interest payments. The Reserve Bank met on Tuesday and decided, as many experts had tipped they would, to keep the cash rate at the same level for this month, and possibly another two or three months. And that's good news for anyone with a mortgage or those of you looking to jump into a home loan in the near future. ...
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Up go the interest rates again

Looks like my gut feeling last week was right: the Reserve Bank did indeed decide to raise the official cash rate by 25 basis points. That makes it the sixth rise in less than a year, so let's hope it's the last one for a while. All the major banks were very quick to implement their own rises today - the Commonwealth Bank was the first to lift its rates, putting the variable home loan rate up 0.25 per cent to 7.36 per cent, and they were closely followed by National Australia Bank, Westpac a...
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What’s your bet on a May interest rate rise?

All too soon, it's almost that time of the month again: the monthly meeting of the Reserve Bank of Australia where a bunch of people vote on whether or not to raise the official cash rate or not. They've done it often enough lately, with five rate rises in less than a year - admittedly from a point where rates where tantalisingly low, but still. Every rise means we have to dig a bit deeper in our pockets to make our monthly mortgage repayments and that still hurts. So, the big question this w...
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More Australians paying more rent?

Rising interest rates don't just mean that the people with the mortgages and home loans have to pay more. Sometimes I forget that an interest rate rise has a flow on effect; it's likely to start leading to rises in rental costs as well. Obviously if the repayments on an investment mortgage start to rise, the investor wants or needs to recoup those extra costs somehow, and the most obvious way to do that is to ask the tenant for more rent. Predictions are that this will happen on a wide scale ...
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Another rate rise from the Reserve Bank, and more to come

It's happened again. This week when I logged on to my bank account - I spent last week in limbo from the daily newspapers, in hospital having a baby (a fact which explains why this blog was quiet!) - that all-too familiar message appeared. Yes, the interest rate on my mortgage account had been raised again, and I am going to have to pay more this month in my repayment. Last Tuesday the Reserve Bank had its regular monthly meeting and decided to raise interest rates, again, by 25 basis points...
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