Robyn Roberts

Westpac Goes Green

Westpac Bank is going green!! 

Westpac will introduce a new interest free ‘green loan’ that will help families install solar, water saving and energy efficient products that will reduce greenhouse gas emissions.

The interest free ‘green loan’ is worth up to $10,000 and will be available from November 16.

According to a statement released by the bank, the loans will support the Australian Government Green Loans Program and will give homeowners an opportunity to improve their energy and water use efficiency.

"The loans have the potential to help around 360,000 Australian households save on energy and water bills,” a statement from Westpac said.

The loan, which includes no monthly service fees, establishment fee or prepayment fee, are interest free but have to be repaid over a maximum of four years

Don't Believe Anyone That Tells You "All Banks Are The Same"

I have never seen such an incredible disparity in rates, fees and credit policies of Lenders. To illustrate this point I have created a small table below that shows the fixed interest rate ranges between the prime lenders on our panel.

When people believe their options are limited, they don't shop around.  As you can clearly see from this table, not shopping around can cost you dearly.  This is the service a good broking firm provides.

LENDER CHANGES GOAL POSTS AGAIN!!

Today I received an email from Commonwealth Bank advising of changes that will take place as from today Monday 30th March to their lending criteria.  In a nutshell - the maximum loan to value ratio for all customers applying for a Home Loan, Investment Home Loan or a Line of Credit to the Commonwealth Bank, regardless of the purpose will now be 90%, excluding the Lenders Mortgage Insurance.  The exception is if the customer has  "current Credit Facilities".

In addition, as from today, applicants will be required to contribute 5% (an increase from 3%  that came into effect on February 27th 2009) of the purchase price in the form of genuine savings i.e. that is saved in an account for a minimum period of 3 months.

We may have the windfall of the Boost to the First Home Owners Grant but the lenders are now pulling back the reigns with changes in policy that will definitely have a flow on effect for those First Home Buyers who do not have genuine savings and are relying on the Grant to get into their first home.

Commonwealth Bank Introduces "Genuine Savings" Policy

As from today applications to the Commonwealth Bank is making it mandatory for new borrowers to have 3% genuine savings for all applications where the loan is greater than 85% of the value of the property. These customers will be required to contribute a minimum 3% of the purchase price in the form of genuine savings (or equity) towards the proposed purchase/transaction.

 The genuine savings will need to be verified and may comprise of any of the following:

• A demonstrated saving pattern established over a 3-month period
• Gift – must be held in an account for a minimum of 3 months
• Term deposit – must have been held for a minimum of 3 months
• Cash – acceptable only if placed in an account for  a minimum of 3 months
• Shares – must have been held for a minimum of 3 months
• Equity in existing property
  Exclusions
• First Home Owners Grant (FHOG)
• Additional borrowed funds i.e. personal loan
• Proposed sale of an asset (other than property) i.e. sale of car 

If you need help in clarifying what this may mean to you, please contact me.

 

RBA Cuts Official Interest Rates By 1%

Following the announcement by the RBA on 3rd February to cut the cash rate by 1% down to 3.25%, major financial institutions have reduced their standard variable rates as follows:

CBA      -   1%    5.74%

NAB     -    1%    5.74%

ANZ     -    1%    5.91%

Westpac    1%    5.91

Newcastle Permanent Building Society SVR at 5.71%

Land Titles Office Increases Fees

As at 1st January, the NSW Land & Property Department raised their lodgement fees on certain documents.  The change that will effect most of you is the registration fee applicabled to Transfers.  This has DOUBLED to $184.00.  Registration fees on mortgages and discharges of mortgage are still at $92.00.  

ANZ Tightens Lending Policy

I have received an "interesting" email update from ANZ this afternoon at 5.45pm.  The crux of the email is that effective from Monday 17th November the Bank will reduce it's maximum Loan to Value Ratio (LVR) from 95% to 90%. 

In part the email reads"

"ANZ believes reducing the maximum LVR from 95% to 90% is a prudent and measured response to the emerging economic environment and is both in the bank's interest and our customer's interest."

I feel that we will see a flow on effect with the major lenders now asking for borrowers to have some savings to contribute to a purchase.  The situation with ANZ means that on a $300,000 purchase, the borrower must provide a 10% deposit of $30,000.  Even with the current FHOG at $14,000 there is a shortfall of $16,000.

I am predicting that it won't be long before there will be no 100% home loans and borrowers will need to have saved a genuine deposit of between 5 - 10% of the purchase price. 

So for you first home buyers out there, I would be seriously thinking of taking action whilst the FHOG is at $14,000 or start a serious savings plan.

Finding That Home, Sweet Home

 I have had lots of enquiries from First Home Buyers since the increase to the First Home Owners Grant.  Below are some ideas for you if you are out and about searching for that “home, sweet home”

·         Sometimes properties can sell for less than the asking price. Therefore, if the property you like is not up for auction, adopt a bargaining frame of mind. You may be pleasantly surprised.

·         Be prepared to look at a lot of places to gauge the quality and price. To avoid getting addresses confused with one another, take a criteria check-list with you and attach it to any advertising material you have. Keep a basic check to include your wish list and a ‘pro’s and con’s’ table.

·         It can also help to take digital photos of the property. If the owner and real estate agent agree, this can help to jog your memory of what it looked like.

·         If you’re in the market for a unit or townhouse, consider common walls, the noise from the neighbours (if possible); whether the grounds and the complex are kept clean and tidy; if security doors are operational; if there are restrictions on pets, parking and how the common areas are used; and the cost of body corporate fees.

·         Check with the Local Council, State Government and Department of Main Roads as to whether there are any future plans for the neighbourhood you’ll be buying into – in case a free way or supermarket are planned for development outside your door.

Windfall For First Home Buyers

With the recent changes to the First Home Owners Grant, I have put together a summary below of "Frequently Asked Questions".

What are the new rules surrounding the Commonwealth’s First Home Owners Grant?

First Home Buyers Grant doubled to $14,000 for an existing home purchased between now and June 30 2009

First Home Buyers Grant tripled to $21,000 for newly built homes purchased between now and

June 30 2009

Who gets the First Home Buyers Grant?

Those who buy an existing home between now and June 30, 2009, will get a $14,000 payment.

Those who sign the contract to build a new home before June 30, 2009 will get a $21,000 payment.

Will you get the money if you exchanged contracts to buy a new home before 14 October?

No, only contracts signed on October 14, 2008 and up until June 30 2009 are eligible.

Will you get the $21,000 first home buyer grant if your new house is not completed before June 30 2009?

Yes. You just need to sign a contract to have the house built before June 30 2009.

How Do You See Your Home???