The Reserve Bank of Australia increased Interest rates by 0.25% on 2nd March 2010
The new Base rate is now 4.00%
Interest rate change Tuesday 1st December 2009
The Reserve Bank of Australia increased Interest rates by 0.25% on 1st December 2009
The new Base rate is now 3.75%
(This rate is still in effect for February 2010)
The big Four Banks, in Feb 2010 are now quoting the following rates for their Standard Variable Rate Home loans.
6.28% NAB
6.61% CBA
6.66% ANZ
6.68% St George
6.76% Westpac
As at November 3rd 2009, the RBA increased the base Interest rates by 0.25% to 3.50%
The banks immediately passed this increase on, and the CBA Standard Variable Home loan rate will become 6.24% on Monday 9th November.
The big Four Banks, in November 2009 began to quote the following rates for their Standard Variable Rate Home loans.
6.24% NAB
6.24% CBA
6.31% ANZ
6.31% Westpac
As at October 6th 2009, the RBA increased the base Interest rates by 0.25% to 3.25%
If the banks pass this on, as is, the CBA Standard Variable Home loan rate will become 5.99%
The big Four Banks, in October 2009 began to quote the following rates for their Standard Variable Rate Home loans.
5.99% NAB
5.99% CBA
6.06% ANZ
6.06% Westpac
These rates are to come into effect in the week starting 12th October 2009
Fixed Interest Mortgage Rates
5 Year Fixed rates at November 2009
7.89% St George
7.89% NAB
7.94% Westpac
8.04% ANZ
8.04% CBA
3 Year Fixed Rates at September 2009:
6.69% NAB
6.99% ANZ
7.19% Westpac
7.29% CBA
Fixed Rate Increases in August 2009
Westpac Bank announces that fixed rates will increase on the 4th August 2009 to: 5.59% 1 Year Fixed Rate 6.99% 3 Year Fixed Rate 7.64% 5 Year Fixed Rate
Other banks may follow after the RBA meeting
Fixed Rate Increases in June 2009
CBA raised its 5 year Fixed rate to 7.34%
Westpac raised its 5 year Fixed rate to 7.19%
NAB raised its 5 year Fixed rate to 7.19%
ANZ are also quoting a 5 year Fixed rate of 7.19%
Commonwealth Bank
5 Year Fixed Rate Mortgage 7.34% 15th June 2009 (after todays rise announcement) 6.84% April 2009 6.39% March 2009
St George Bank
5 Year Fixed Rate Mortgage 6.64% June 2009 (?? Possible rises to come) 5.94% April 2009 8.40% Feb 2008
Heritage Building Society
6.29% June 2009 (?? Possible rises to come) 6.29% April 2009 6.29% Feb 2009
Commonwealth Bank Increases Variable Home Loan rate
12th June 2009
The Commonwealth Bank today increased its Standard variable home loan rate from 5.64% to to 5.74%.
The bank also confirmed that some home loans with fixed interest rates will also rise by a similar figure.
April 2009
7th April 2009 - RBA cuts Interest rates by 0.25% The RBA has again cut interest rates by another 0.25% on the 7th April 2009.
This brings the official Interest rate down to 3%
BUT... the banks are not all reducing their Mortgage Interest rates this time
CBA is cutting its rate by 0.10% down to 5.64%
NAB is NOT cutting its rate and staying at 5.74%
Westpac is cutting its rate by 0.10% down to 5.81%
ANZ is cutting its rate by 0.1% down to 5.81%
The smaller banks and Building Societies ?
Bendigo Bank is NOT cutting its rate
Adelaide Bank is NOT cutting its rate
I have read that these will give the full 0.25% reduction, which would mean...
Heritage Building Society down from 5.55% to 5.3%
Fixed Rate Mortgages
With interest rates now very low, it is time to watch the Fixed Rates, to see when they will begin to increase. Some 5 Year Fixed Rate Mortgage examples to watch in the future:
St George Bank 5.94% at April 2009 (This was 8.4% in Feb 2008)
An example of one banks current fixed rates as at April 22nd 2009
1 Year Fixed 5.39% p.a. 2 Year Fixed 5.79% p.a. 3 Year Fixed 6.19% p.a. 4 Year Fixed 6.59% p.a. 5 Year Fixed 6.84% p.a. 7 Year Fixed 7.24% p.a. 10 Year Fixed 7.39% p.a. 15 Year Fixed 7.39% p.a.
and again at 15th June 2009 Fixed rates
1 Year Fixed 5.39% p.a. 2 Year Fixed 5.94% p.a. 3 Year Fixed 6.69% p.a. 4 Year Fixed 6.99% p.a. 5 Year Fixed 7.34% p.a. 7 Year Fixed 7.79% p.a. 10 Year Fixed 8.09% p.a. 15 Year Fixed 8.19% p.a.
February 2009
The Reserve Bank of Australia reduced Interest rates by 1% on 3rd February 2009
The following bank announcements have now been made about Mortgage Rate cuts:
NAB is cutting its rate by 1.0% down to 5.74%
CBA is cutting its rate by 1.0% down to 5.74%
Bendigo Bank is cutting its rate by 0.9% down to 5.90%
Adelaide Bank is cutting its rate by 0.9% down to 5.90%
Westpac is cutting its rate by 1.0% down to 5.91%
ANZ is cutting its rate by 1.0% down to 5.91%
Average Mortgages in Australia
According to AFG, Australia's largest Mortgage Broker, the July 2009 average mortgage for Australia was $354,137, and for each state the figures were:
$407,226 NSW $339,840 QLD $270,179 SA $321,671 VIC $382,225 WA $370,518 NT
Loan Value ratios, as a percentage of property value, were between 63.3% and 71.1%
19.2% of all loans in July 2009 were for First Home Buyers, 34.6% for re-financing and 30% for property investors.
How Much Can you Borrow ?
That's a common question, so here are some links to help you find the answer, but don't forget to also read the next section, Credit Cards and Mortgages.
Most banks can discount their normal rates by about 0.7% to selected borrowers, it always pays to ask. You may be a "selected" borrower if your loan is over $250,000.
But remember each bank will have its own calculator, based on THEIR lending policies, and may be different to the ones above.
Credit Cards and Mortgages
Mortgage lenders will take any Credit Card LIMITS into account when you apply for a Mortgage. So, if you can, pay off any balances, before applying, and have your card limit reduced to a few hundred $ only.
In my experience, if you pay off the balance at the end of each month, and therefore pay NO interest, the lender can often be convinced to ignore that cards credit limit, but you need to be able to prove it.
Most Bank Lenders will also offer you a credit card, effective after the mortgage is done, and that limit is ignored in the calculation.
Average Mortgages in Australia
NSW In New South Wales, the average Home Loan in April 1979 was $25,400 In April 1989 it was $85,400, an increase of 218.1% over the previous 10 years. In April 1999 it was $158,500 an increase of 96.16% over the previous 10 years. In April 2009 it has become $283,300 an increase of 78.74% over the previous 10 years. The NSW increase from 1979 to 2009 has been 1015.4%
VIC In Victoria, the average Home Loan in April 1979 was $24,300 In April 1989 it was $68,400, an increase of 181.48% over the previous 10 years. In April 1999 it was $123,500, an increase of 80.56% over the previous 10 years. In April 2009 it has become $249,000, an increase of 101.62% over the previous 10 years. The Victoria increase from 1979 to 2009 has been 924.7%
QLD In Queensland, the average Home Loan in April 1979 was $21,700 In April 1989 it was $51,900, an increase of 139.17% over the previous 10 years. In April 1999 it was $116,700, an increase of 124.86% over the previous 10 years. In April 2009 it has become $270,800, an increase of 132.05% over the previous 10 years. The Queensland increase from 1979 to 2009 has been 1147.9%
WA In Western Australia the average Home Loan in April 1979 was $23,900 In April 1989 it was $54,500, an increase of 128.03% over the previous 10 years. In April 1999 it was $115,900, an increase of 112.66% over the previous 10 years. In April 2009 it has become $282,800, an increase of 144.00% over the previous 10 years. The Western Australia increase from 1979 to 2009 has been 1083.3%
Average Mortgage compared to Average Wage
The following figures show the average Home Mortgage against the average Male Full time wage for April 2009, for each State.
NT $275,700 against $66,877 or 4.12 times Male income
NSW $283,300 against $69,253 or 4.09 times Male income
QLD $270,800 against $66,518 or 4.07 times Male income
VIC $249,000 against $66,970 or 3.72 times Male income
WA $282,800 against $81,276 or 3.48 times Male income
SA $214,800 against $63,096 or 3.40 times Male income
ACT 261,900 against $78,124 or 3.35 times Male income
TAS $191,700 against $59,872 or 3.20 times Male income
Links
Mortgage Information Comparisons
Cannex - an independent Financial Services Research Group
Infochoice - a web site to compare banks and their services
