Interest Rates Slashed Again

The RBA announced another 1% rate cut today, reducing interest rates by a whopping 40% since September this year. For home owners this means the average $300,000 monthly mortgage payment has gone from $2,220 to $1,520, a savings of $710 per month, based on the CBA discounted mortgage rate.

The banks have not weighed in with the amount of the rate cut they will pass on, but this move will bring confidence back to the property market and begin to attract new investors who are wary of the share market. This is also great news for first home buyers and home affordability.

Not all lenders have passed on the majority of previous rate cuts and there is still some advantage in refinancing home loans to get into the front of the lending market. We are still finding a difference of up to 2% in rate between the leading lending rates and some existing non-bank mortgages. Please call us on 02 66857888 to find out how much you can save.

First Home Buyers Strike It Lucky with $34,000 Gift

First home buyers in NSW can now qualify to get a $21,000 grant and the state government will top it up with a further $3,000 for buying or building a new home. On top of this they will qualify for stamp duty concessions worth a further $10,000 on the purchase of a $330,000 home.

There has never been a better time to enter the market with interest rates approaching historic lows and a generous government incentive which will expire on 30^th June 2009. First home buyers can get a $14,000 grant to buy an established home or $24,000 to buy or construct a new dwelling.

At 888 Wealth Creation we specialise in providing free support for first home buyers with:

• Free Buyer Assist program with phone support for purchasing advice.
• Free Lending advice including affordability, loan selection, and approval coaching.
• Free mortgage broking service – let the lender pay!
• Free Property Analysis reports showing ownership costs and projected growth over 25 years.

We had an excellent turnout for our Free Information Night for First Home Buyers last Thursday. We will be running another one in January. Please call us for free advice on how you can qualify for the First Home Owners Grant on 02 66857888.

Lo Doc Loans Still Available – 100% Loans Still Available

I just read an email from another broker in the area stating that Lo-Doc loans were now requiring 6 month BAS statements and that no discounts applied above 60% LVR. We are writing lo doc loans now at 80% LVR with full discount rate, expected to be 5.89% with today’s RBA rate cut and no BAS or trading statements required. I advise anyone wanting to set a lo-doc loan to start working toward it now though, as conditions may tighten further.

Some banks have also been cutting back on 100% home loans. Despite commentary to the contrary, we still have 100% home loans today and a major lender has just issued a statement committing to ongoing delivery of 100% loans.

I think some brokers get into bed with one lender and are too lazy to really work for the customer’s benefit to find the absolutely best deal on the market. At 888 we always scan the whole market and have all options open when deciding where to place a loan, and we never charge the client for this service. Please call us before taking another offer on 02 66857888.