Right now, the banks are more interested in competing for deposits than they are for loans, and even if you did find a friendly bank you will almost certainly end up confused, as there are now over 1000 different home loan products in the market. Sorting through them is just as tricky as working out which phone plan is best for you.

A useful guide is the comparison rate sheet that all lenders are required by government legislation to provide, but keep in mind that it is only a starting point. Even though it includes the basic loan costs, such as set-up fees, interest rates and ongoing charges, it does not include bank fees that are only charged in certain circumstances. These include fixed loan early termination fees and redraw fees.

But there is more to a loan than the interest rate and the fees and charges. One of the most important things to consider is flexibility. You might believe that a no-frills loan with low fees is perfect for you right now because your affairs are simple and your present intentions are to stay in the one house for many years, but keep in mind that change is always with us, and your present loan may not be appropriate if things change.

What happens if you decide to move house, or borrow some money for renovations or investment, or need to reduce your repayments when the kids are at high school? If you have a no-frills loan it might not have a redraw facility and you might be required to take out a second mortgage for the extra money. Naturally the bank will be looking for a higher interest rate on the second mortgage.

Offset accounts are also a highly desirable feature. If you deposit money in a normal interest-bearing account you will probably earn less than 2 per cent a year and then lose at least a third of that in tax. However, when you deposit money in an offset account the notional interest credited should be the same as that charged on the housing loan.

And it gets even better: instead of the interest being credited to your account, leaving you liable for tax, the interest is taken off the principal on your non-deductible home loan. So funds in an offset account earn you the same as the loan rate (currently around 5 per cent) after tax. That’s equivalent to getting more than 7 per cent before tax on an interest-bearing deposit.

You can put offset accounts to good use if you intend to move home and keep the old one. This is because you can build up funds in the offset account instead of paying them off the housing loan. There is no difference in the interest costs, as the offset account is credited at the same rate charged on the housing loan, but there can be a huge difference when you decide to make the move.

Think about two neighbours who started with a housing loan of $400,000 some years ago. Karen used all her resources to reduce the loan as fast as possible, while Katya banked all her spare money into the offset account, leaving the original loan high. Today, Karen owes only $100,000; Katya has a debt of $400,000 with almost $300,000 in the offset account. They both decide to upgrade to another residence, but want to keep the old one as a rental.

Katya is far better placed for tax purposes, as she can simply withdraw the $300,000 she has in the offset account for a deposit on the new home, leaving a debt of $400,000 on the existing house – this debt is now deductible as she is renting the house out. In contrast, Karen will be paying tax on a large portion of the rents from the original property as it has a very low debt, while suffering the burden of a huge non-deductible debt on her new home.

Story Source: www.smh.com.au

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

Conditions in the global economy have improved over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth was stronger over the second half of 2016, supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a boost to Australia’s national income…

The Bank’s central scenario remains for economic growth to be around 3 per cent over the next couple of years. Growth will be boosted by further increases in resource exports and by the period of declining mining investment coming to an end. Consumption growth is expected to pick up from recent outcomes, but to remain moderate. Some further pick-up in non-mining business investment is also expected.

The outlook continues to be supported by the low level of interest rates. Financial institutions remain in a position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country. The unemployment rate has moved a little higher recently, but growth in full-time employment turned positive late in 2016. The forward-looking indicators point to continued expansion in employment over the period ahead.

Inflation remains quite low. The December quarter outcome was as expected, with both headline and underlying inflation of around 1½ per cent. The Bank’s inflation forecasts are largely unchanged. The continuing subdued growth in labour costs means that inflation is expected to remain low for some time. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent, with the rise in underlying inflation expected to be a bit more gradual.

Conditions in the housing market vary considerably around the country. In some markets, conditions have strengthened further and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for a couple of decades. Borrowing for housing has picked up a little, with stronger demand by investors. With leverage increasing, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments.

Taking account of the available information, and having eased monetary policy in 2016, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Story Source: Media Release – Reserve Bank Of Australia

But, we can help! Contact us today for a free home loan review & together we can talk about what could help you now and what could benefit you in the future.

Interest rates & market conditions are constantly changing & competition amongst lenders is still strong.

BUT… this doesn’t mean you need to find the time to look through hundreds of home loan offers. We can help! Contact us today for a FREE home loan review & let us do the heavy lifting for you.

The research group’s quarterly property survey found that median prices across Australia reached $614,000 in the March quarter, an increase of 11.3 per cent on the previous year.

The two big capital cities recorded double-digit growth, while the three smaller capitals reported losses.

Sydney prices jumped 16.9 per cent to $783,000, while Melbourne’s climbed by 11.7 per cent to $604,000.

Perth grew 8.4 per cent to $611,000, Brisbane increased 6.0 per cent to $467,000 and Adelaide rose by 4.1 per cent to $450,000.

Canberra prices fell 1.6 per cent to $558,000. Prices in Darwin and Hobart increased over the year but fell over the quarter.

Darwin’s median house price reached $675,000 – an annual gain of 3.2 per cent and a quarterly decline of 1.6 per cent.

Hobart reported a median of $326,000 – an annual gain of 3.2 per cent and a quarterly decline of 2.5 per cent.

Meanwhile, national median unit prices grew 8.3 per cent over the year to reach $460,000.

Sydney jumped 12.7 per cent, while Melbourne and Perth climbed by 5.4 per cent.

There were also price rises of 2.7 per cent for Darwin, 1.0 per cent for Adelaide and 0.5 per cent for Brisbane.

Canberra prices fell 0.9 per cent, while the Hobart market slumped 8.4 per cent.

Australian Property Monitors’ senior economist Andrew Wilson said the “Sydney boom has well and truly faded”, while the national market has also cooled.
“The moderation of boom-time results in Sydney can be expected to continue as emerging affordability barriers and declining investor activity impacts the market,” he said.
“Nationally, the December quarter 2013 is likely to be the high water mark in the cycle for growth rates.

“Following the impact of historically low interest rates, local supply and demand factors are reasserting their predominant influence, particularly in regard to employment and incomes growth.”

Now could be the best time for you to review your loan(s).  Contact us today for a FREE finance review & let us help you Strengthen Your Financial Future.

Original Story Source: www.theadviser.com.au

The Australian dollar initially jumped on the rates decision, briefly reaching a four-month high of just over 93 US cents, but had eased back to 92.65 US cents by 3:28pm (AEDT) once traders digested the RBA governor’s statement, where Glenn Stevens again described the currency as “high by historical standards”.

“The decline in the exchange rate from its highs a year ago will assist in achieving balanced growth in the economy, but less so than previously as a result of the rise over the past few months,” he lamented.

RBC Capital Markets senior economist Su-Lin Ong says the Reserve Bank had to express some discomfort about the currency or risk it jumping further.

“It’s a bit of an unspoken acknowledgment that there’s not much the RBA can do about the exchange rate,” she told Reuters.  “To have said absolutely nothing new on the exchange rate would have been a green light for it to go a lot higher, but adding that small line has just sort of capped it for now.”

However, there is considerable disagreement emerging amongst analysts about the medium-term outlook for rates, with some economists forecasting rate rises later this year, some expecting the first increase sometime next year, and a shrinking handful still predicting one more rate cut.

Home price data released last week has raised expectations that rate rises may come sooner than previously expected, with the figures showing the biggest monthly surge in the 18-year history of RP Data – Rismark’s index.  The surge in home prices rated only a passing mention in the governor’s statement though.

“Interest rates are very low and savers continue to look for higher returns in response to low rates on safe instruments,” Mr Stevens observed.  ”Credit growth is slowly picking up. Dwelling prices have increased significantly over the past year.”

Now could be the best time for you to review your loan(s).  With interest rates still at record lows if you’re paying over 5.00% on a Standard Variable Rate you could be paying too much.  Contact us today for a FREE finance review & let us help you Strengthen Your Financial Future.

Original Story Source :: abc.net.au

Sydney maintained its place as the highest clearing auction market, but its figure of 77.9% was down on previous weeks, which have been generally above 80%.  There were 963 auctions for the week in the harbour city, but numbers are expected to rise in the early weeks of April.

Melbourne picked up the pace for both listings and clearances this week, with a clearance rate of 71.7% from 1149 auctions. This was up from 67% last week.

Brisbane’s market has stalled, with just 37.3% of the 127 auctions cleared, while Adelaide (59.3%), Perth (57.1%), Tasmania (54.5%) and Canberra (53.3%) had reasonably solid weeks.

The five major capitals all recorded home value growth for the week; Sydney and Brisbane sharing top spoils with 0.5%. Melbourne was next with 0.4% and is maintaining the early pace as the best performer for 2014, with 3.9% growth for the month and 6.3% for the year so far.

Sydney continues to dominate the private treaty market, with 2294 house sales yielding a new record high median price of $729,750, which is worlds above the other major capitals.  Sydney units also hit new heights with a median of $580,000 from 1,354 sales.

If you’re looking to buy a property the first step is to ensure affordability.  Contact us today for a FREE finance review and let us help Strengthen Your Financial Future.

Original Story Source :: news.com.au

Instead of cutting their monthly mortgage payments in line with interest rates, a large number of borrowers are paying the same amount, and paying off the loan more quickly.

The International Monetary Fund this month said these mortgage ”buffers” – held in mortgage offset and redraw facilities – were worth 14% of outstanding home loans or more than $160 billion.  Put another way, the country’s households have 23 months’ worth of minimum mortgage payments to fall back on if things go pear-shaped. For the economy, these buffers mean households could absorb temporary shocks, such as higher unemployment.

Another advantage of paying off a mortgage early is it gives you a guaranteed return equal to your home loan interest rate.  In contrast, making an investment in shares has the potential to pay higher returns, but this is not guaranteed. It could also result in loss.

”Repaying your home loan at whatever the interest rate is at the time is akin to receiving that return on another investment, but this investment’s guaranteed,” Hewison Private Wealth director Andrew Hewison says.

It may sound obvious, but paying off debt faster will also free up cash to invest elsewhere.  AMP financial planner Andrew Heaven says when it comes to paying off debt, the top priority should be reducing ”bad debt” such as a personal loan used to pay for a holiday.  The next priority is to reduce ”good debt” – held against economic assets, such as a home.  ”That enables you to have free cash flow to redraw that money to go and invest.”

Of course, there are some instances when it may make sense not to pay down mortgage debt so quickly. Hewison says that for some people closing in on retirement it can make sense to make concessionally taxed super contributions instead.

Overall though, it appears households have been pretty sensible in paying off their mortgages ahead of schedule.

If you’re looking to refinance or you’re unsure of what to do with your loans, contact us today for a FREE finance review and let Infinity Partners Finance help you Strengthen Your Financial Future.

Original Story Source :: watoday.com.au

Research from RaboDirect found those with self-managed super funds (SMSF) were happier and in better health than their non-SMSF counterparts. Fifty-three per cent of survey respondents with SMSFs said yes to “I am completely happy with my life” compared to 48% of those with standard super funds.

It was the same when it came to health. Fifty-four per cent said they were in “excellent health” compared to 46 per cent of respondents with standard super funds.  An explanation for the disparity in results could be due to SMSF holders having a sense of control over their retirement savings, and therefore one less thing to feel disenfranchised about.

RaboDirect group executive manager Greg McSweeney said: “Regardless of where people currently have their super invested, we could all take a cue from SMSF investors by taking a more proactive approach to our financial outlook. By actively taking control of our finances, we may get some of the peace of mind and health benefits that SMSF investors enjoy. Whether that means simply starting a budget, or moving your money from a low interest account to a true savings account, there are steps to take to be more in control of our financial future.”

A third of SMSF respondents also expected to have more than $1 million in retirement savings while only 10% of those with other funds expected a bountiful booty of the same amount, probably another factor in the happiness responses.

Setting yourself up for retirement is just one of the ways you can Strengthen Your Financial Future.  Contact us today for a FREE finance review to see where we can help you on your journey to happiness & prosperity.

Original Story Source :: news.com.au

1.  You can tell a competitive mortgage by its interest rate: Not always. Set-up and exit costs and ongoing fees add to the expense of a loan. When comparing mortgages, look at the comparison rate which takes all fees, costs and introductory rates into account.
2. If your bank won’t give you a mortgage, no lender will. Lenders have different policies and criteria. A mortgage broker can often find you a lender.
3. The best home loan rates are online. Online lenders may have competitive rates, but many borrowers need personalised service, so an online lender may not be the best option.
4. Special introductory interest rates are the best deal. Lenders often use discounted, introductory or honeymoon offers to attract customers, but once the special rate is over, the loan reverts to a much higher interest rate. Always look at a lender’s comparison rate.
5. It’s not wise to borrow outside the big four banks. During the global financial crisis, the government guarantee of bank deposits prompted this myth, but the guarantee extends to deposits, not loans. Some of the best deals are from smaller lenders, and now that the government has banned exit fees, consumers have the power to refinance to a better deal.
6. You can save on your loan by correctly timing a fixed-rate loan. If we could predict interest-rate movements, economists would be out of a job. Variable rate loans generally perform better long term, while fixed-rate loans provide certainty for borrowers short term.
7. Lenders mortgage insurance covers my repayments if I get sick. Lenders mortgage insurance covers you for nothing. It insures the lender in the event that you default on your loan and the property is sold at a loss.

As always, research & collect as much information as possible, ensure you know your own goals and, if you’re confused, consult an expert.  Why not contact us today for a FREE finance review to help you Strengthen Your Financial Future.

Original Story Source : The Age

While a sharp rise in new home building raises the prospect of rises later in the year.  The Australian dollar fell by a quarter of a US cent after decision.

The ABS said earlier today the number of houses and apartments approved by councils for construction had jumped 6.8% to 17,500 between December and January, extending the trend of rising interest in home building following strong growth in capital city house prices.  “The flow of approvals is now tracking close to that seen in early 2010 when activity in the property market was underpinned by generous government grants and subsidy programs,” Tom Kennedy, an economist at JP Morgan, said, referring to programs since wound back by state and federal governments.  “It is clear that activity in the building sector is trending higher, with this momentum to persist in 2014,” he said, noting the particular strong bounce in Victoria and NSW.

The rate of home building in January was more than 34% higher than a year ago, foreshadowing less upward pressure on house prices as more supply emerges.

Meeting amid mounting fears war could break out between the Ukraine and Russia, the Reserve Bank’s board said rising local house prices, the strong pick-up in home building, and improved corporate profitability and confidence were evidence its policy of sustained low interest rates was working.  Financial markets expect no change in interest rates this calendar year but most expected rates to increase early next year as the economy starts to recover.

Now could be the best time for you to review your loan(s).  With interest rates still at record lows if you’re paying over 5.00% on a Standard Variable Rate you could be paying too much.  Contact us today for a FREE finance review & let us help you Strengthen Your Financial Future.

Original Story Source :: theaustralian.com.au

Historically-low interest rates, intense competition in the mortgage market and continuous pricing discounts has resulted in customers refinancing their loan every three to four years.

In 2009 the average life of a loan was seven years but that’s now been cut almost in half as customers continue to get hungrier than ever to score better deals.

Australian Bureau of Statistics data found the number of refinanced home loans had continued to grow at a steady pace since January 2010.  The number of home loans refinanced has almost doubled from about 9200 home loans in January 2010 and 16,500 in December 2013.

Since the banning of mortgage exit frees in July 2011 the proportion of refinanced home loans has averaged 33% compared to 29% to the reforms kicking in.  ABS data also found at the end of 2013 the average home loan size was $322,000 compared to $274,000 five years ago.

There are many reasons to refinance your loans.  Think about staying ahead with your home loan(s) and with the current low interest rate environment it may help you pay them off faster.  Focus on paying down mortgage debt and if refinancing will help you, let us assist by Strengthening Your Financial Future.  Contact us today for a FREE finance review.

Original Story Source :: news.com.au

Multiple lenders are offering home loans spanning four decades but experts are concerned about the extended mortgage periods that stretch out across an entire working life.  A recent survey found there are 17 40-year home loan deals available on the market from seven different lenders.

On a $400,000 loan with an average interest rate of 7% the customer would end up forking out an additional $235,000 in interest costs than they would if they chose a 30-year-old loan period.

The Mortgage and Finance Association of Australia’s chief executive officer, Phil Naylor, warned people against taking out these lengthy mortgage periods.  “If you let the mortgage run the full 40 years you end up paying a mountain of interest,’’ he said.  “For the extra interest you pay over the course of the loan that probably far outweighs the benefit you get by paying smaller payments each month.”

If you’re considering refinancing or you are a new borrower looking to enter the market, don’t be fooled by the ‘too good to be true’ offers in the market today.  Let us help you Strengthen Your Financial Future by contacting us today for a FREE finance review.

Original Story Source: news.com.au

“On present indications, the most prudent course is likely to be a period of stability in interest rates,” RBA governor Glenn Stevens said in a statement accompanying the decision. “In the Board’s judgment, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target.”

In the latter half of 2013 Mr Stevens on several occasions said the Australian dollar was uncomfortably high. However, in recent weeks the Australian dollar has stayed below 90 US cents, which seemed to please the RBA governor. “The exchange rate has declined further, which, if sustained, will assist in achieving balanced growth in the economy,” Mr Stevens said.

This is a great sign for existing borrowers & new ones. Whether you’re looking to refinance, invest or purchase your dream home now may be the best time to Strengthen Your Financial Future. Contact us today for a FREE finance review.

Original story source: ninemsn.com.au

Slater & Gordon superannuation lawyer Andrew Weinmann says insurance is “the forgotten area” of super and most people have very little understanding of it.  Put simply, people can get a lump-sum payment if they die or become totally and permanently disabled (TPD), or receive ongoing payments through income protection insurance if unable to work.

“Having the right amount of insurance provides peace of mind,” Weinmann says.  “It is usually much cheaper to get insurance through your super fund than to buy it direct from an insurer. Still, you should check that you are getting good value. The difference in premiums between super funds can run into thousands of dollars each year, and the most expensive insurance is up to 20 times the cost of the cheapest.”

When buying insurance through super, your monthly premiums can effectively be paid by your compulsory employer super contributions flowing into your fund. This means no money is coming from your pocket or household budget, although advisers often recommend you add a little extra money to super to top up the nest egg.  Weinmann says rule changes this month have made it compulsory for super funds to provide death and TPD insurance to members of their basic MySuper products, on an opt-out basis.  “MySuper is the new super account that most funds will offer as the default option.”

The Australian Securities and Investments Commission’s moneysmart.gov.au website says insurance through super is often cheaper because the funds buy it in bulk, but people should first check if the super fund has any limits on the type of insurance or cover available.

The New Year is a time when many of us reflect on our financial situation, including our insurances & superannuation, and set financial goals for ourselves and our families for the year ahead.  Sean, Belinda and the team are ready to assist you to reach these goals.  Contact us today for a FREE finance review and start the year off knowing where you are headed.

Original Story Source: news.com.au

In the three months to September 30, the proportion of income required to meet home loan repayments fell by 0.1 percentage points to 31.8%, marking the fifth consecutive quarter of affordability improvement.  Homes are more affordable than the corresponding period in 2011, when it took 34.4% of take-home pay to service a mortgage with in some parts of Australia it is cheaper to buy than rent.

Better affordability has led to more first home buyers taking up a mortgage, with their ranks swelling to 19% of the market in the September quarter, from 17.9% during the previous quarter.

The ACT continues to be Australia’s most affordable housing market, with just 18.9% of income needed to pay off a loan.  In NSW, 36.5% of pay was needed to meet mortgage repayments, and this state posted the biggest quarterly improvement in affordability.  Queensland and the Northern Territory also became more affordable during the September quarter.

The national improvement in housing affordability occurred as average home loans grew by 1% to $320,542, taking average monthly loan repayments to $2,176 or $544 a week.

During the same period, the Reserve Bank of Australia (RBA) left interest rates on hold at 3.5%.

Do you have your eye on your dream home, looking to downsize or upsize?  With interest rates at record lows and a review in the cash rate not due until February, now may be the best time to Strengthen Your Financial Future.  Contact us today for a FREE finance review.

Original Story Source :: ninemsn.com.au

We are back in business for 2014 and ready to Strengthen Your Financial Future.

The New Year is  a time when many of us reflect on our financial situation and set  financial goals for ourselves and our families for the year ahead.

Sean, Belinda and the team are ready to assist you to reach these goals.

Contact us today for a FREE finance review and start the year off knowing where you are headed.

Infinity Partners Finance will be closed from 5.30 p.m. on Thursday 19 December 2013.  Our office will re-open at 8.30 a.m. on Wednesday 8 January 2014.

We would like to also take this opportunity to wish you & your family a Merry Christmas and a safe & prosperous New Year.

Market analysis by realestate.com.au has found that nationwide a hefty 41% of buyers in the market across September and October were prepared to bid above the asking price.  The figure dwarfs the 23% of buyers prepared to do so at the same time last year.

Properties priced between $500,000 and $1.5 million are the hottest range being sought by home buyers around the nation, with 39% of buyers looking in the range.

“The research indicates that investors are returning to the market,” said realestate.com.au general manager of sales and operations, Arthur Charlaftis.  “With low interest rates and a limited number of properties available, 49% of buyers believe that property prices will continue to increase in the next six months, so if you’re considering selling, it’s a great time to take action.”  He said the figures showed a significant increase in market confidence from 2012.  Melbourne and Sydney are leading the charge, but significant improvements have been recorded across every state except Tasmania.  The auction market is also proving particularly strong with 52 % of those bidding at auction going above the reserve price.

Got your eye on that dream home, looking to downsize or upsize?  With interest rates at record lows and a review in the cash rate not due until February 2014, now may be the best time to Strengthen Your Financial Future.  Contact us today for a FREE finance review.

Original Story Source: news.com.au

RBA governor Glenn Stevens said in a statement that current monetary policy settings were appropriate. But he continued to stress that the Australian dollar was “still uncomfortably high”.  ”The board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target,” he said.

The move, which was tipped by economists and financial markets, came as better-than-expected retail sales figures for October boosted expectations that previous rate cuts were supporting growth in non-mining industries.

Retail sales rose a seasonally adjusted 0.5% in October on the back of increased spending on food, clothing and at restaurants, Bureau of Statistics data has shown.  New building approvals data for October remained resilient, slipping slightly but not as much as analysts had expected.

The RBA has also continued to flag below-trend growth for the current financial year. Bureau of Statistics data to be released this week is expected show that third-quarter GDP rose by 0.7%, with year-on-year growth reaching 2.5%.

Despite the cash rate being left at 2.5%, interest rates are still at their lowest in recent history.  Let Infinity Partners Finance help you Strengthen Your Financial Future.  Contact us today for a FREE finance review and take advantage of the current rates being offered by a variety of lenders.

New analysis by research house DEXX & R has found that of the nation’s $914 billion in retirement income assets expected by 2023, about 62% will be held in retirement phase assets.

DEXX & R’s Managing Director Mark Kachor said the strong enticement to lure Australians towards SMSFs would most likely spiral upwards in the coming decade as more and more people shift away from retail, corporate and industry funds.  “There are many people directly or indirectly pushing the SMSF concept,” he said.  “The real reason these have been actively promoted by financial advisers and also by other trusted advisers such as accountants and real estate companies … is that you can take control of what is inside your fund.”

Latest Australian Taxation Office statistics show in June this year there were more than 509,000 SMSFs with more than 963,000 members. These figures have continued to trend upwards, rising from June 2012 when there were 475,000 SMSFs and more than 899,000 members.  The report tipped that the strong growth in SMSF assets to fund a retirement income, together with a retiree’s diminishing appetite for risk and a preference for certainty of an income at retirement age, would boost fixed income investments.  It also forecasts growth in medium and long-term inflation-linked bonds by both Commonwealth and State Governments in Australia to provide stable income streams.

SMSF Professionals’ Association of Australia chief executive Andrea Slattery said self-managed super would continue to trend upwards in the next decade.  “Self-managed super funds have been consistently growing over a long period of time at 2500 to 3000 per month because people are engaged and they are interested in controlling their savings and retirement investments,” she said.  “The majority of them are professionals or self-employed who make their own decisions anyway and we will expect to see that continue.”

Have you been thinking about borrowing in your SMSF? Infinity Partners Finance has access to a number of SMSF lenders.  Let us help you Strengthen Your Financial Future by completing a FREE finance review.  Contact us today!

Original Story Source: news.com.au

The fixed rates reversal began in September, with eight lenders increasing prices. Another 10 hiked in October, including all four majors – by as much as 0.3%. By contrast, 58 lenders cut fixed rates in August.

The number of fixed-rate loans written in 2013 across Australia has increased by 534% compared to 2010 levels.  Earlier this year fixed rates accounted for 21% of all loans written. That has since dropped back to 16% with the average fixed rate loan size increasing.  The increase in loan sizes suggests fixed-rate borrowers have been willing to pay more for property.

RP Data head of corporate affairs Craig Mackenzie said low fixed-rates had encouraged more investors to join the fray.  “With growth in rental yields … and low fixed rates, investors are likely to have been influenced into the market given they are able to cover their funding costs more fully and look towards expected capital growth in future years,” Mr Mackenzie said.

“At some point the music is going to stop,” Mr Braddick, ANZ’s Head of Property said.

Have you been thinking about locking in a fixed rate but haven’t found the ‘time’ to do it yet?  Now is a great time to act while rates are still low.  Contact us today for a FREE finance review so we can help you Strengthen Your Financial Future and take advantage of these potential savings.

Original Story Source: ninemsn.com.au

The decision to leave the cash rate on hold for Melbourne Cup day was widely tipped by economists, given recent improvements in the unemployment rate, retail sales and building approvals.

In a statement, RBA governor Glenn Stevens said the economy was likely to keep growing at a slightly slower than average pace in the short term “as the economy adjusts to lower levels of mining investment”.  The RBA board took note of the rise in household and business confidence since the September federal election, but said it was still too early to tell “how persistent this will be”.

The bank says it will take a while for the full effects of the many rate cuts already delivered to show.  “Housing and equity markets have strengthened further, trends which should in time be supportive of investment,” Mr Stevens said.

Mr Stevens also described the exchange rate as still too high.  “The Australian dollar, while below its level earlier in the year, is still uncomfortably high,” he noted.  “A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy.”  The dollar fell after the announcement and at 2:38pm (AEDT) it was buying 94.8 US cents.

Despite the cash rate being left at 2.5% interest rates are still at their lowest in recent history.  Let Infinity Partners Finance help you Strengthen Your Financial Future.  Contact us today for a FREE finance review and take advantage of the current rates being offered by a variety of lenders.

To begin, get out your bank statements and identify all the common, recurring fees you pay. Think account keeping and transaction costs, foreign exchange fees, late payment penalties, overdrawn account charges and ATM withdrawals.  Once all the fees have been listed, the next step is to see whether they’re fair compared with industry averages and how you can change your behaviour to trim them. Because, apart from getting a better deal, good planning and awareness of fees is the quickest way to cut them.

As a yardstick, the average Australian household pays $8.94 each week in bank fees, so at the very least you should be aiming to get below that. But with good planning, it’s not impossible to bring that down to near zero.  There are mortgage products that carry no monthly fee, credit cards without an annual cost and transaction accounts that charge nothing provided you only withdraw from the right ATMs. Making these accounts work is good planning.  Of course, the more features and flexibility an account has, the more expensive fees tend to be, so the trick is to figure out what features you need and find a product that fits.

Once you’ve compared your current accounts with the market and identified savings, it’s time to ask a few questions.  When heading into these discussions with the bank, it’s vital to understand that whatever level of customer you are, there is significant value attached to your business.  Banks know that a simple savings account can lead to a credit card that can lead to a mortgage and a lifetime of fees, so don’t underestimate your bargaining power.

Ask what each fee is for, what they’re providing in return, and what can be offered by way of a better deal. Nine times out of ten the bank will put concessions on the table.  It’s also worth asking what you need to do to have fees waived altogether. Most banks will offer to waive account keeping fees if you make a certain number of transactions each month, so find out what these waiver levels are.  Similarly, there might be waivers for bundling products with the same provider.  Of course, you still need to work out the sums on bundling but if it fits the bill then it can be a money saving move that centralises all your finances.

All sounds a bit hard?  Then let Infinity Partners Finance help you Strengthen Your Financial Future by doing the legwork for you.  Contact us today for a FREE finance review!

NSW Premier Barry O’Farrell has committed NSW Government agencies to providing a coordinated response to the current bushfire emergency and provide support to those in need.  “This morning I have spoken to the Prime Minister and I can assure all affected communities that everything is being done by the State and Federal Governments get urgent help to people needing assistance.”

In the first instance, people who have lost their homes in the fire should contact Centrelink and their own insurer.  For those unable to return home, evacuation centres have been set up and staff from the Department of Family and Community Services together with non-government organisations are coordinating emergency housing, clothing, toiletries, blankets, food and counselling.

Home Loans : Contact your lender directly to see how they may assist you or provide additional support.  Many lenders have Disaster Relief Packages available to their customers.  It is best to discuss this with them directly as there are a number of options available regarding repayments, credit cards, business loans, personal loans etc.

Disaster Relief Grants : Financial assistance is available under the NSW Disaster Relief Scheme for people affected by disaster who are experiencing financial hardship and who are unable to meet the cost of repairs for essential housing contents and/or structural repairs to their homes.  To apply for financial assistance call 1800 018 444.

School Closures & HSC : The Board of Studies NSW has advised HSC students in bushfire affected areas to contact their school if they are unsure if exams will occur, or if it is unsafe for them to reach an examination venue.  If a student is cut off from their exam centre by a natural disaster, they may attend a neighbouring school on exam day, if it is safe to do so.  Students unable to attend an examination due to a natural disaster are eligible to lodge an Illness/Misadventure appeal to ensure they are not disadvantaged.  Parents and carers should contact their school directly to check on closures – however, most of the closures of government schools are listed online.

Donations: The Salvation Army has commenced an October 2013 Bush Fire Appeal.  To donate, please call 13 72 58 or make a donation online. We are currently advised that the evacuation centres are suitable resources and do not require blankets or other items.

General Advice: People should continue to monitor their local radio stations and/or go online to the NSW Rural Fire Service website or the State Emergency Services website for the latest information related to current NSW bushfires.  The RFS Bush Fire line is 1800 679 737.  In all emergencies remember to call Triple Zero (000)

Infinity Partners Finance would be more than happy to assist where we can.  We understand this is an extremely hard time.  Please do not hesitate to contact us if you need any further information regarding your lender and their Disaster Relief Package.

Recent research shows the home loan market is where most banks are trying to entice new customers with bonuses.  Discounted rates of up to 1%, the waiving of hundreds of dollars in application fees, cash-back offers and even store gift cards are among the deals being offered to customers by the major banks and smaller lenders.

Customers should take care before signing up for a product simply because it offers an attractive incentive.  All that glitters is not gold, signing up on a home loan purely on a cash-back offer or a fee waiver could see you miss out on tens of thousands of dollars of savings that you could have got with a lower rate elsewhere.  They are nice one-offs but they are not going to help over the entire life of the loan, so the interest rate is the core. While a fee waiver or cash back may appear to provide immediate financial relief, the key is to find a combination of competitive pricing, product flexibility and a strong service proposition.

Unsure of all of the offers & products out there?  We’re here to Strengthen Your Financial Future.  Let us do all of the running around & hard work for you.  Contact us today for a FREE finance review.

Financial research shows Australians racked up more than $22.5 billion on credit cards in the lead-up to Christmas last year and took out a further $757 million in cash advances.  The earlier you start to budget, the more money – and stress – you’ll save.

Further research indicated that Australians planned to spend around $511 each, or $8.5 billion as a nation, on Christmas gifts however, a third felt pressure to spend more than they could afford, with around half planning to use a credit card to cover the gap.  This year could be another cash-strapped one for many, but with a bit of forward thinking you can have the Christmas you want for less.

Consumer Action Law Centre spokesperson Denise Boyd says now is the time to work out your budget and plan what you’re going to buy.  “Make a list of all the people you plan to buy presents for so there are no unexpected costs,” she says.

“Where possible, avoid putting purchases on credit – other options such as lay-by are far cheaper and have less risk.  “If you do need to put something on credit, make sure you think about how and when you’re going to be able to pay it off. And try to pay off your debt as soon as possible to avoid having to pay interest on top of the principal.”

We’re here to Strengthen Your Financial Future and make sure you head into the New Year off on the right foot.  Contact us today for a FREE finance review BEFORE the hangover begins.

Mr Bloxham said while rising housing prices are a necessary part of the re-balancing of growth that the RBA hopes will occur, they’ll be worried if they accelerate too much.  The central bank has steadily reduced the cash rate since early November 2010 when it was 4.75%.  Economists believe the bank will wait to find out what has happened to inflation in the September quarter as well as getting a further reading on unemployment before deciding whether rates need to come down further before Christmas.

The Reserve Bank board will also consider the effect its rate cuts are having on property markets, particularly in Sydney and Perth. Although it is likely to share the government’s view that higher prices will support much-needed growth in housing construction, it is also aware that low interest rates can spark excessive house price growth despite subdued economic conditions.  Lenders are continuing to shake up the home loan market by competing to cut rates.  Fixed rate reductions can be an indicator that the cash rate will follow so this could be a sign of another rate drop on Melbourne Cup next month.

With interest rates at record lows, why not consider protecting yourself from any future rate rises by fixing a portion of your loan…  This may help you sleep better at night…  Contact us today to Strengthen Your Financial Future with a FREE review and assessment of your current products and rates and how they compare to what is available in today’s competitive market.

Original Story Source: news.com.au

A rate cut in October has been ruled out by economists as too early but the decision in November is seen as a possibility after the US Federal Reserve’s decision earlier this week to keep the money printing presses running at full throttle.  This boosted the risk appetite in the markets and sent the currency up almost 2c to a peak of US95.29c overnight – its highest level since June.

After a sharp descent from USD in April, the Australian dollar is again showing signs that it will push back towards parity, analysts said. “The rise in the currency raises the risks of another cut,” senior economist Felicity Emmett said.  “The hurdle for another rate cut is relatively high, given the policy is already at a very stimulatory setting, although we continue to see downside basis to rates and are forecasting a possible rate cut at the November board meeting.”

The RBA has slashed official rates by 2.25% to a record low of 2.5% since this cutting cycle began in November 2011.  This has knocked an estimated $450 off the monthly repayments on the average $300,000 mortgage.

“While the RBA has reiterated that any move is not imminent, declining mining investment, restrained non-mining investment, soft consumer spending, rising unemployment, the bounce back in the Australian dollar and benign inflations indicate the risks are still tilted towards another rate cut,” AMP Capital chief economist Shane Oliver said.

Given the uncertainty of any further rate cuts now is a great time to make your move.  Contact us today to Strengthen Your Financial Future with a FREE finance review.

Original Story Source: news.com.au

“Home loans are one of our most expensive costs but it’s one of those set-and-forget things,” says Canstar finance editor and commentator Justine Davies.  “There’s too many other things on the to-do list so people just don’t review the rate they’re on and it can really fluctuate over time.”

In an analysis of variable rate mortgages from more than 100 lenders, Canstar found that on a loan of $300,000, which is the national average loan amount, the difference between the average and cheapest loan was $160 per month, and $1900 per year.  Over 25 years, that’s about $48,000.

Ms Davies said home owners with variable loans should be keeping a constant eye on the interest rates they are paying as well as the market average.  If you’re paying more than the average it’s time to negotiate or find a new lender.

“There’s well over 100 lenders out there, so it can certainly seem daunting to people if they have to start shopping around and they’re not quite sure how to do that,” Ms Davies said.

How much could you be saving on your monthly loan repayments?  Let us help you Strengthen Your Financial Future, contact us today for a FREE finance review.  We can do all the hard work for you!