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Oct302013

'low-doc' Home Borrowers Hit By Rising Rates









Real estate

Adjusted for loans that passed from being in arrears to being settled because the property was sold, the percentage of prime loans more than 90 days in arrears increased from 1.33 per cent in the June quarter to 1.37 per cent in the three months to the end of September. However, Fitch says self-employed borrowers have been hit hard, which has pushed arrears among prime low documentation loans to a record 3.97 per cent - slightly higher than the previous peak of mortgage delinquencies in this segment reached during the peak of the financial crisis in the December quarter of 2008. This is a category of loans where borrowers meet the usual lending criteria, but are unable to supply sufficient evidence of their regular income, often because they are self-employed or contract workers with fluctuating earnings. The associate director in Fitch's structured finance team James Zanesi says higher mortgage repayments appear to be hitting the self-employed sector much harder than employees. "The three consecutive cash rate hikes ending in May 2010 modestly affected Australian prime mortgage performance in the third quarter of 2010. Households have demonstrated some stability in spite of the higher mortgage payments," he said. "The most vulnerable borrowers, such as low-doc and self-employed borrowers, have experienced the worst performance, with the increase in mortgage payments having an impact on affordability." The very worst performance in the September quarter continued to be amongst the closest equivalent Australia has to subprime loans -'low-doc, non-conforming' borrowers. The arrears rate amongst this group was 18.94 per cent, although it makes up a relatively tiny proportion of Australian mortgages. Fitch says it does not expect any substantial improvement in the level of delinquent mortgages until well into next year, as Christmas spending tends to drive people further behind in their repayments.
For the original version Perth low doc home loans including any supplementary images or video, visit http://www.abc.net.au/news/2010-11-23/low-doc-home-borrowers-hit-by-rising-rates/2347860







The low doc loan that brought down a family






My husband was very uncertain because Power Loan did not ask for proof of income or our tax returns. I caved in because the agent kept saying he has his own money in the Westpoint project, Ms Al Nasser said. Westpoint imploded in 2006 and Ms Al Nasser is now paying off a debt on a Westpoint property which no longer exists. But the Al Nassers never filled out a loan application form for either of their loans -the broker did most of the filling out, some in their presence. They only signed paperwork for privacy consent and declaration of financial position.BusinessDayhas reviewed the relevant paperwork. Often they would come to our house late to get signatures and then run off, Ms Al Nasser said. After Westpoint collapsed and the investment income stopped coming in to fund their loan,the Al Nassers approached the Financial Ombudsman Service (FOS) for help. FOS said it could not act as Power Loan was not a member.BusinessDayverified the company which ran Power Loan, National Finance and Trading, only signed up as a member in 2013. FOS is a private complaints resolution service funded by financial institutions according to the numbers of complaints against them. Likewise, although with a good deal more dithering, the Credit Ombudsman Service (COSL) took four years to respond to the Al Nassers complaints, only to say they were unable to act.
For the original version including any supplementary images or video, visit http://www.smh.com.au/business/banking-and-finance/the-low-doc-loan-that-brought-down-a-family-20131029-2wcrx.html




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Oct272013

Australian Home Loans, Confidence Drop Pressures Rates








Macquarie eyes a slice of Australian banks' home mortgage pie






That was the steepest fall since February 2002, according to data compiled by Bloomberg. Home-loan approvals rose for nine months through December, before falling a revised 1.1 percent in January, todays report showed. We had this sort of modest upswing throughout a lot of last year and that was assisted by some stamp-duty concessions for first-home buyers in New South Wales and some grants in Queensland, RBCs Ong said, referring to two Australian states. But that seems to be fading and the data is consistent with that. Biggest Banks Home-loan growth may weaken further after Australias four biggest banks raised standard variable mortgage rates independently from the RBA in February, drawing criticism from the government. The central bank has said that competition for deposits, recent covered-bond sales and the cost of swapping funds raised offshore into Australian dollars added to the price lenders paid to raise money.
For the original version including any supplementary images or video, visit http://www.bloomberg.com/news/2012-04-11/australian-home-loans-confidence-drop-pressures-rates.html








Sydney Home Prices Expected to Keep Rising, April 11

But the fears themselves are real and the banks' earnings over the next two weeks will be scrutinized for any hints as to the health of the mortgage market. ANZ, Commonwealth Bank, NAB and Westpac are on track to report an 8.5 percent rise in combined full-year cash earnings to A$27.1 billion. Any shifts in home loan market share for individual banks are also set to go under the microscope, with analysts citing commentary on mortgage demand and pricing from the banks as drivers for share prices. Australian mortgages represent 61 percent of gross loans and advances for Westpac, 60 percent for Commonwealth Bank, 45 percent for NAB and 42 percent for ANZ, according to figures from UBS. Westpac may be of particular interest after it experienced slower growth in its domestic mortgage book of 3.8 percent in the 12 months to the end of August, compared to the banking industry average of 5.1 percent. It reports on November 4 and is expected to post annual cash clicking here earnings, which exclude one-off and non-cash items, of A$7.1 billion, up 7.6 percent on the year before, according to an average of estimates from three analysts polled by Reuters. ANZ reports on October 29 and is projected to book a 9.8 percent rise in full-year cash earnings of A$6.4 billion. NAB is expected to post a 6.8 percent rise in annual cash earnings to A$5.8 billion on October 31. Commonwealth Bank, the nation's biggest lender by market value, is expected to report first-quarter cash profit on November 6 of around A$2.15 billion, up from A$1.85 billion from a year earlier, Morningstar analyst David Ellis has projected. It reported full-year cash profit of A$7.82 billion in August.
For the original version including any supplementary images or video, visit http://www.reuters.com/article/2013/10/28/us-australia-banks-mortgages-idUSBRE99Q0BT20131028?feedType=RSS




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Oct242013

Australia Urged To Follow New Zealand's Lead And Impose Limits On Low Deposit Home Loans









The RBA watching New Zealand slamming the brakes on house prices

The Reserve Bank hopes that will allow it to keep rates lower for longer, keeping a lid on any further rise in the already over-valued New Zealand dollar and supporting export industries. Australia and New Zealand already have a lot in common... and as of this month they also share record low official interest rates of two-and-a-half per cent. The difference is that New Zealand has had such low rates for almost two-and-a-half years, and its economy is now on the way up, not down. Fitch Ratings financial institutions analyst Andrea Jaehne says that is pushing house prices higher. "Historically low mortgage rates are now also playing a role in the housing market," she said. "People are employed ... we have seen stronger mortgage growth in the market and as a result house prices have gone up." It has also been encouraging a growing number of Kiwis to borrow heavily to fund a home purchase. Almost a third of recent new home loans have involved bank's lending more than 80 per cent of the purchase value. That means the home buyers had a deposit of less than 20 per cent.
For the original version including any supplementary images or video, visit http://www.abc.net.au/news/2013-08-22/calls-for-australia-to-follow-nz-lead-on-mortgages/4904698







Australian Banks Cut Fixed Mortgages Loan Rates in Latest Home-Loan War






The new round of rate cuts is possible because of lower funding costs for banks and strong profit growth. Kirsty Lamont of comparison Web site Mozo said the situation provides a dilemma for borrowers if they should lock now or hold back and wait for more rate cuts. Ms Lamont said the lowest fixed one-year rate is that of the Greater Building Society at 4.74 per cent. Due to the changing lending conditions such as out-of-cycle rate cuts independent of RBA decisions, fixed home loans finances through RateCIty reached 18.45 per cent, the highest proportion in five years. In Westpac, take-up levels for fixed home loans doubled from 8 per cent to between 15 and 20 per cent when it cut its two-year rate to 4.99 per cent in February 2013. At St George, fixed-rate loans went up to 30 per cent from 10 per cent when the bank cut its mortgage rate. But in the case of the National Australia Bank, its offer of the lowest interest rates among the Big 4 failed to boost the lender's satisfaction rating among its clients. The monthly DBM Consultants' Business Financial Services Monitor said NAB's satisfaction rating averaged 7 out of 10 in April, while ANZ got s lower http://www.alivenotdead.com/Befte1965/Getting-A-Payday-advance-loan-And-Paying-It-Back-A-Guide-profile-3120476.html?newpost_1 6.9 rating.
For the original version including any supplementary images or video, visit http://au.ibtimes.com/articles/468927/20130520/australian-banks-cut-fixed-mortgages-loan-rates.htm







Australian Home Loans Rise on Record-Low Rates






The central bank rate has cut interest rates steeply since late 2011 to a record low 2.5%, in a bid to spur weaker parts of the economy like consumer sentiment and construction. Loan approvals to build new houses fell 2.1% in July from June. Approvals to buy new homes rose 5.9%, while lending for already built houses rose 2.7% in the month. -Write to James Glynn at james.glynn@wsj.com (END) Dow Jones Newswires 09-08-132148ET Copyright (c) 2013 Dow Jones & Company, Inc. This article appears in: Interactive Charts Default Setting Please note that once you make your selection, it will apply to all future visits to NASDAQ.com.
For the original version including any supplementary images or video, visit http://www.nasdaq.com/article/australian-home-loans-rise-on-record-low-rates-20130908-00024




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Oct222013

Australia June Home Loans ? All The Data








Australian Dollar Gains, Home Loan Approvals Fall






expected of 2.0%, and prior of 1.7%, revised from 1.8%) Investment Lending for June -0.5%m/m (vs. prior of 1.1%, revised from 1.5%) Owner-Occupier Loan Value for June 2.1%m/m (vs. priorof 2.2%, revised from 2.3%) The RBA are looking for a transition from mining investment to other http://awkwas.babybloggo.de/ sectors of the economy, like housing construction. This data is a bit of a mixed bag, the headline figure is better AUD/USD showing little response, though. - From the ABS report: the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 15.1% in June 2013 from 14.6% in May 2013. n trend terms, the number of commitments for the purchase of established dwellings rose 2.1%, the number of commitments for the purchase of new dwellings rose 1.8% and the number of commitments for the construction of dwellings rose 0.9% The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 1.2%. Owner occupied housing commitments rose 1.5% and investment housing commitments rose 0.7%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.2%.
For the original version including any supplementary images or video, visit http://www.forexlive.com/blog/2013/08/07/australia-june-home-loans-all-the-data/







Australian Home Loan Approvals Beat Expectations, AUD/USD Lower






Money supply growth slowed to 14.2% and the broadest measure of credit aggregate financing decreased from a year ago to 1.4 trillion yen. The ASX 200 index decreased 23 cents or 0.4% to close at 5,207.90 and All Ordinaries index declined 22.3 or 0.4% to 5,206.05. In trading, 470 million shares changed hands worth $2.6 billion. Australian dollar strengthened to 94.70 U.S. cents. On the domestic front, home loans approved in August fell seasonally adjusted 3.9% to 49,912 and total financing declined 1.2% to $23.8 billion. Stocks in Review BHP Billiton declined 11 cents to $35.02, Rio Tinto fell 6 cents to $61.65 and OZ Minerals dropped 29 cents to $4.11.
For the original version including any supplementary images or video, visit http://www.123jump.com/australia/market-update/Australian-Dollar-Gains,-Home-Loan-Approvals-Fall/54231/










Markets open in 3 hrs 7 mins Australian Home Loan Approvals Beat Expectations, AUD/USD Lower By Jimmy Yang | DailyFX Tue, Aug 6, 2013 10:00 PM EDT 0.9671 +0.0016 THE TAKEAWAY: Australian home loan approvals increase in June while investment lending declines > Market likely waiting for more data this week > AUD/USD Lower The Australian Dollar traded lower against the US Dollar as data showed increased demand for housing in Australia. Home loan approvals grew 2.7 percent month-over-month in June, up from May s revised-down 1.7 percent, to beat expectations for growth of 2.0 percent. The value of these loans also grew 2.1 percent as hinted by rising house prices . However, investment lending declined the first time this year with a reading of -0.5 percent. This joins yesterdays construction data release in offering the first snapshots of the Australian economy after the Reserve Bank of Australia lowered its benchmark interest rate from 2.75 to 2.5 percent . Although these data report on a time period before the centrals banks decision, they offer investors guidance on their expectations for future policy. At the meeting, the RBA maintained its outlook for a sluggish economy but removed rhetoric pointing to inflation in supporting scope for further easing. As such, investors will likely look towards domestic as well as overseas developments in its largest trading partner and to gauge the health of the Australian economy and guide their speculations for RBA policy.
For the original version including any supplementary images or video, visit http://finance.yahoo.com/news/australian-home-loan-approvals-beat-020000860.html




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Oct192013

August Home Lending Figures Are Out, And All Looks Safe On The Housing Bubble Front








Australian Home Loan Approvals Beat Expectations, AUD/USD Lower






The total number of new loans fell 3.9%, against market expectations of a 2.5% fall. By value, owner-occupied home loans fell 1.9% to a seasonally adjusted $15 billion, while investment loans held steady at $8.8 billion. For monetary policy however it is trends that matter most. On that front, signs are positive: overall housing finance is trending up 0.5%, with owner-occupied home loans up 0.4% and investment loans up 0.8%. None of this data should alarm anyone who is concerned about a housing bubble. Chances of a growing debt-fuelled bubble are remote at best, with borrowing fairly stable and the proportion of first home owners who usually have more leverage falling. The RBA has its eye on housing but for the moment, its far from frothy. Follow Greg McKenna on Twitter.
For the original version including any supplementary images or video, visit http://www.businessinsider.com.au/august-home-lending-figures-are-out-and-all-looks-safe-on-the-housing-bubble-front-2013-10










Markets closed Australian Home Loan Approvals Beat Expectations, AUD/USD Lower By Jimmy Yang | DailyFX Tue, Aug http://emanded.hpage.com/emanded_87514344.html 6, 2013 10:00 PM EDT 0.9675 +0.0008 THE TAKEAWAY: Australian home loan approvals increase in June while investment lending declines > Market likely waiting for more data this week > AUD/USD Lower The Australian Dollar traded lower against the US Dollar as data showed increased demand for housing in Australia. Home loan approvals grew 2.7 percent month-over-month in June, up from May s revised-down 1.7 percent, to beat expectations for growth of 2.0 percent. The value of these loans also grew 2.1 percent as hinted by rising house prices . However, investment lending declined the first time this year with a reading of -0.5 percent. This joins yesterdays construction data release in offering the first snapshots of the Australian economy after the Reserve Bank of Australia lowered its benchmark interest rate from 2.75 to 2.5 percent . Although these data report on a time period before the centrals banks decision, they offer investors guidance on their expectations for future policy. At the meeting, the RBA maintained its outlook for a sluggish economy but removed rhetoric pointing to inflation in supporting scope for further easing. As such, investors will likely look towards domestic as well as overseas developments in its largest trading partner and to gauge the health of the Australian economy and guide their speculations for RBA policy. Currently, Credit Suisse swaps are pricing in market expectations for another 25BP rate cut sometime in the next 12 months. Furthermore, expectations for Federal Reserve policy will continue to drive the pair.
For the original version including any supplementary images or video, visit http://finance.yahoo.com/news/australian-home-loan-approvals-beat-020000860.html




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