Category: Interest Rates

Follow our Smartline blog for up to date latest Australian finance and property news.

Repay @ the Bank “Buffer Rate” and Save a Fortune

Australia’s banks are required to test how you would cope with an interest rate increase. They do this by adding approximately 3.00% p.a. to the current rate. Here is what this calculation would look like for someone with a $450,000 variable rate mortgage: @ 4.25% p.a. the monthly repayment is $2,214 over 30 years. @ […]

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Loan Redraw or Offset Accounts? Which is Best?

Offset accounts and redraw facilities work in similar ways; they both allow you to reduce the balance of your home loan, and therefore the interest charged, by applying extra money to your debt. They also are an effective means to build a “buffer” for a rainy day. Redraw allows you to deposit spare income into […]

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The Truth About Fixed Rate Loans

With interest rates at an all-time low, taking the option of locking in an interest rate on your home loan to guard against possible future fluctuation may be attractive. However, it pays to know the ins and outs of fixed-rate loans before committing to one. When purchasing a property, borrowers can decide between fixed-interest loans […]

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10 Reasons to Get a Home Loan Pre-approval

A home loan pre-approval provides confidence when it comes to making an offer on your property because it gives you a clear indication of how much you can borrow. You won’t waste time on properties you cannot afford and can concentrate on properties within your price range Your offer will be more attractive to the […]

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RBA remains firm on 2 per cent cash rate

While the victor in yesterday’s Melbourne Cup may have come as a surprise to some, Reserve Bank of Australia (RBA) Governor Glenn Stevens’ announcement that the official cash rate (OCR) would remain on hold at 2 per cent did not. The decision to hold the rate is good news for mortgagors or those considering a […]

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What do you do when interest rates rise?

When you take out a home loan, you have a good idea of how much you can borrow and what your repayments will be. However, economic conditions can change alongside your personal financial situation. It could be a loss of income, unexpected emergency or, as we see happen often, an interest rate rise that means […]

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3 things to do when interest rates are low

The cash rate has been kept at 2 per cent for another month, and it doesn’t look like it’s moving any time soon. According to CommSec’s analysis of Reserve Bank Governor Glenn Stevens’ public statements, it doesn’t appear as if the cash rate will change over the next year. This means that the low interest […]

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Interest rates held at 2 per cent again

The Reserve Bank of Australia (RBA) decided to hold the interest rate at 2 per cent for the fourth consecutive month. The announcement on September 1 came as little surprise to many economists, who were either betting on the hold or a possible drop. The RBA cites “moderate expansion in the economy” and said that inflation is […]

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3 mortgage features to know about

You could fill up a dictionary with all the jargon involved in taking out a home loan! But this clearly isn’t putting anyone off, given there were almost 54,000 loans taken out for owner-occupied housing to April 2015, according to the Australian Bureau of Statistics. Understanding some of the most common features of a mortgage […]

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Client stories

Kimberley Harrison

Kimberley and her partner Todd were looking at buying a home together. They had each contacted their respective banks but were...

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Janine Davies

Janine Davies originally found the idea of buying a home nerve-wracking. Terminology she didn’t understand, mountains of...

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Khris Lloyd

25-year-old Khris Lloyd was left in the lurch when his beloved credit union did a backflip on their pre-approval for a run-down...

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