IN THIS ISSUE:

Property Sentiment Report: Investors Optimistic
Quarter Trends report: Big 4 Surge
News Flash: Mortgage Website Launched
News Flash: Refinancing Simpler Under New Government Measures
Customer Profile
Charity Profile
Mortgage Glossary
State by State News
Interest Rate Watch
Q&A: Creative Ways to Save for a Deposit

Charity Profile:
Bear Cottage (NSW)

Bear Cottage is a children's charity hospice situated in the grounds of St Patrick's Estate, Manly, on Sydney's northern beaches. As a branch of the Sydney Children's Hospital, Bear Cottage provides palliative care and support for children with terminal illnesses and their families.

For every home loan Smartline arranges, $10 is donated to various children's charities including Bear Cottage.

Customer Profile: Adelaide Family Refinances Mortgage and Upgrades to Bigger Home

With two children and a baby on the way, Adelaide couple Julien and Kristin Pearce decided it was time to upgrade to a larger home in Balaklava, north of Adelaide.

To cover the cost of their new home, the Pearces immediately arranged pre-approval to refinance their current home loan with their existing lender.

However when it came to finalising the loan, their lender lowered the amount they were able to borrow.

Unhappy with the revised loan amount, Julien's brother recommended the Pearces speak to Wendy Perry at Smartline.

Wendy was able to secure pre-approval on a packaged home loan from the Commonwealth Bank of Australia - which gave the Pearces the amount they needed and allowed them to lock in a fixed interest rate for a portion of their loan.

“The packaged loan gives the Pearces the flexibility to make extra repayments on the variable rate portion of their loan as well as have access to a withdraw facility – while the fixed component gives them the peace of mind of knowing they aren't completely exposed to interest rate increases,” said Wendy.

Interest Rates: click here

State-by-State News

QUEENSLAND: Great Expectations in the Sunshine State

NEW SOUTH WALES: $12b Plan For Sydney’s NW Transport System Unveiled

SOUTH AUSTRALIA : Strong Local Economy Boosts Adelaide House Prices

VICTORIA: Land Release to Address Housing Shortage

WESTERN AUSTRALIA: Consistent Growth Balances Interest Rate Increases

Welcome to the Autumn issue of Newsline and the first edition of this newsletter for 2008.

Smartline started the year on a busy note. In January, we released results from two of our well-respected national reports – the annual Property Sentiment Survey and the Quarter Trends Report.

The results revealed investors' attitude towards investment in 2008 as well as identifying major trends and issues in the mortgage market. A snapshot of the findings is featured in this issue.

The US credit crisis continued to have a ripple effect on the mortgage market in the first quarter of 2008, with National Australia Bank, ANZ, St George and the Commonwealth Bank of Australia increasing variable interest rates independent of the Reserve Bank of Australia (RBA) in January to compensate for additional borrowing costs.

The RBA then raised official interest rates by 0.25 per cent in both February and March, with some banks lifting rates by more than the official rise in March.

As well as affecting home loan repayments for borrowers, the increases mean the lending landscape is as complex and volatile as ever, with the Big 4 banks each offering different variable home loan rates with alternate fixed rates and fee structures.

Despite this, there are still some great offers available to borrowers and there has never been a better time to seek the help of an expert like your Smartline Adviser.

I hope you enjoy this quarter's Newsline.

Chris Acret
Director

Property Sentiment Survey: Investors Optimistic For First Time in Four Years

Thank you to the thousands of readers that responded to the fourth annual 2008 Smartline Property Sentiment Survey.

The survey is designed to gauge homeowners' attitudes towards property investment and issues in the mortgage market and we aim to make it one of the most trusted consumer sentiment barometers in the country.

Quarter Trends Report: 'Big 4' Continue to Surge

Smartline released the results of its latest Quarter Trends report in January, showing the 'Big 4' banks continuing to take advantage of the US sub-prime mortgage crisis.

The Big 4 achieved record market share in the December, 2007 quarter, accounting for 68 per cent of the 2,400 loans written by Smartline, the highest share recorded since June, 2004. This compared with a 60 per cent share for the Big 4 in the preceding quarter and 61 per cent in December, 2006.

Stop Press: New Website To Help Borrowers Navigate Mortgage Markets

With the mortgage market as complex as ever, the Mortgage and Finance Association of Australia (MFAA) has set up an 'Essentials of Borrowing' website to assist Australians in understanding their home loan options.

The site provides 'user-friendly' tips and information for borrowers from loan basics and buying your first home to refinancing and business finance.

Visit www.essentialsofborrowing.com.au for more information.

Mortgage Glossary

Redraw facility – a feature of a loan that allows borrowers to access any additional repayments they have made.

Reserve Price - the minimum price that the vendor will sell the property for at auction.

Settlement - money paid in full in exchange for Title documents, keys and the right to take possession.

Q&A
With Vicky Monteleone

National Lending Support Manager, Smartline

Q – ‘What are some creative ways to save for a deposit and get into the market?’

Stop Press: Federal Government Addresses Affordable Housing

Prime Minister Kevin Rudd has announced two important property initiatives so far this year – one to assist first home buyers and another to help increase the availability of affordable rental properties.

From July 2008, people saving for their first home will have access to a First Home Saver Account to which the federal government will co-contribute. It means a couple each earning average incomes who deposit 10 per cent of their salaries will be able to save more than $85,000 for a home deposit after five years of savings.