Contact Us
Today
The Lending Team
| Phone: |
07 4041 3100 |
| Fax: |
07 4041 6355 |
| Mobile: |
0414798760 | Shop 1 12-14 Lake St Cairns QLD
4870
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Choose an MFAA
Member
We're a member of the Mortgage &
Finance Association of Australia (MFAA), the peak professional body
representing over 12,000 mortgage and finance professionals and
organisations around Australia. To join this body we had to meet a
strict set of criteria and to maintain our accreditation annually we
are required to keep abreast of industry changes and trends and keep
our skills and knowledge up-to-date.
As a member, we adhere
to the industry Code of Practice which requires high standards, fair
business practices, ethical behaviour and compliance with the letter
and the spirit of relevant laws and regulations - all in the
interest of you, the borrower.
For more information on the MFAA
please visit www.mfaa.com.au | |
Hello,
Welcome to the Winter edition of our newsletter.
Our Cairns
office welcomes our latest employee Elizabeth Thompson, who will be acting
as John Watt's PA and on the front desk. Elizabeth comes from a banking
background and will bring her excellent customer service skills to assist
you all with smooth and efficient home purchases.
In other news
our Port Home Loans manager Liz Wilson will be running monthly 'First Home
Buyers Workshops' for the Port clients, soon to be running in Cairns also.
For Port clients please register your interest with Liz, and for Cairns
please register with Gus.
Liz from Port Home Loans has made the
Finalist cut for "Young Gun of The Year" at the Australian Mortgage
Awards, held in Sydney next month. We hope to bring home an award but to
be one of the finalists in the country is an excellent achievement how
dedication to best practice is noticed.
Atherton Home Loans is off
to a great start and we wish to thank all of our clients up on the
tablelands for their support. Based on the feedback our new clients at AHL
are thrilled with Jacqui's service.
Also, we wish to share that we
are now accredited to arrange insurance policies for home, contents,
landlords protection, Life, and mortgage protection. These are things that
are often overlooked but we feel are very important. So, if you haven't
considered a policy yet, or wish to compare, talk to any of our staff
today about how we can help.
In this issue we cover:
- An update on what's happening with interest rates.
- Why comparison rates help you calculate the true cost of a home
loan.
- How to educate your kids about the value of money.
Please
be in contact if you wish to discuss these or other mortgage matters in
more detail. Whether you are investing, refinancing or borrowing, we can
provide advice and expertise to help you secure a suitable funding
arrangement.
Feel free to pass this e-newsletter on to family and
friends, and let us know if there are any other topics you wish to see
covered in future editions.
Best wishes to you all from the teams
at Cairns, Port and Atherton Home Loans
Interest Rate
Update
It has been a tough year for mortgage holders but the good news
is there are signs of better times ahead.
Predictions that interest rates will rise again before the end of
the year have fallen, with the Reserve Bank's increasing confidence that
the economy is slowing. At each Reserve Bank meeting the Board undertakes
a health check of the economy using key indicators like job figures, wage
activity, household spending, retail sales and commodity prices. Recent
health checks have shown a cooling of economic activity and domestic
demand, indicating that the earlier rate hikes have begun to work their
way through the Australian economy.
Some experts like leading
CommSec economist, Craig James, go one step further in claiming that
Australians are better off than it appears. He found that while rate
rises, higher petrol prices and a falling stock market have been hurting
our hip pocket, some of these costs have been covered by years of wage
increases and tax cuts.
A recent CommSec analysis of wage, tax and
cost of living data has revealed that a person who took out an average
home loan six years ago and was earning the average wage, would today be
ahead by more than $425 a month. Even those who took out mortgages more
than three years ago are likely to be in front despite numerous rate hikes
and the increased cost of living.
The outlook in the US is not so
rosy. Last year's subprime mortgage crisis has led the way to a depressed
housing market, with mortgage firms, Fannie Mae and Freddie Mac, almost
becoming the latest victims.
The collapse of these giant firms
would present a serious threat to the US economy, which would have a
flow-on effect in the Australian economy via lower commodity prices, lower
demand for our exports and higher prices for funds. Given the severity of
the situation, a Bush Administration rescue is in place, which it is
thought will put a lid on the problem, preventing further destabilising of
the economy.
In these times of economic uncertainty, it is all the
more important to make a thorough and considered decision when a funding
need arises. I am well experienced in arranging loans and will use this
expertise to seek out a range of suitable financing options for you within
the current economic climate.
True Cost of a
Mortgage
When comparing the price of any product, including a home loan,
it helps to compare apples with apples.
This is where comparison rates come in handy because they
enable you to put home loan products from different lenders side-by-side
and see their true cost. The comparison rate is a single percentage figure
that includes both the interest rate and the fees and charges relating to
the loan. A lender's advertised interest rate, for example, may be 7.49%
and its comparison rate 8.75%. The rate difference takes into account the
annual costs, in addition to interest rates, that will be charged on the
loan.
Comparison rates take the guess work out of working out the
cost of your mortgage, giving you more time to concentrate on what you
need out of your loan. For example, do you want to be able to make extra
repayments or enjoy features like fee-free banking? Features like these
often make a loan more attractive and will help you to decide if it is
going to suit your needs.
Keep in mind that features like no
monthly fees and repayment flexibility are not included in the comparison
rates but will make a difference to the final cost of a loan. Government
fees and charges are also not included because they are standard across
all loans in the particular state.
The comparison rate is
prescribed by the Uniform Consumer Credit Code and it is mandatory for all
lenders to advertise these rates. Because different loan amounts and terms
produce different comparison rates, lenders must provide rate schedules
that contain a list of comparison rates. In order to get an idea of the
comparison rate that applies to your loan, look at the rate for the amount
and term closest to the amount and term of your loan.
To get a
great deal it often helps to seek advice. I have access to a wide variety
of loans and am well placed to ask the right questions of lenders.
Together we can compare loans and find a structure that suits your
needs.
Money Habits Start
Young
If you've caught yourself telling your kids money doesn't grow
on trees, it's a good indication they're ready to learn about where money
really does come from.
Educating your kids from an early age about the value of money is
an important asset that will assist them through life (not to mention
helping you survive the "I wants"!). Kids need to understand that money is
a limited resource and not everything they want can simply be bought. Talk
to your children about the difference between needs and wants and how to
prioritise spending.
Start young by encouraging your children to
hand over money when you make a purchase or press the OK button on the
EFTPOS machine. Show them the value of money by explaining what a small
amount like $1 can buy.
If you give out pocket money, use it as a
method of introducing your children to the concept of saving. Encouraging
the saving of pocket money in a piggy bank or bank account is a great way
to establish sound financial habits for later in life.
Kid's bank
accounts can provide the discipline need to put money away on a regular
basis. If you work with your children to come up with an achievable saving
goal, they'll get a buzz from watching their savings grow. Many childrens'
bank accounts are fee-free and come with newsletters and activity packs
for your kids to learn in a fun way about the benefits of saving.
Young children may not understand the concept of money management
immediately, but it pays to make an early start in what will be a lifelong
education!
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