Australian Mortgage and Loan Information

Big Bank Rip-Off Exposed

The bad news of the day is that the RBA has increased its cash benchmark
rate by 25 basis points (to 4.25%).

The RBA has been spooked by real-estate data indicating an Australia wide increase in property prices.

Making it hard to borrow or hard to repay is one way to curb home owner or prospective home buyer enthusiasm.

So what can we do? Already Australia’s biggest home lender the Commonwealth Bank, has announced that it will increase its variable rate by the .25% starting this Friday. The rest of bailed out banks will no doubt follow suit in the days ahead.

Try and pay off all your loans and credit cards as quickly as possible. Chop up your card if you can, or at least take some time to understand how a debt consolidation loan may help. Sell your second car, car pool or take the bus. Switch to Naked DSL instead of a land telephone line. Search for a cheaper power supplier or embrace solar energy. Put in a water tank. Grow a veggie garden. Start jogging instead of going out. (You can meet some really interesting people jogging on the beach.) Brew your own beer. Get the idea? I think we are headed for a big recession, but the RBA thinks it has some divine providence after it flukes the idea of dropping of interest rates in 2008 and 2009.

Better to be ready, and who knows, luxury items and big TV’s may be cheaper next year.

Foot note: When rates go up banks make mistakes. Check your Home loan statements

Are Loan Break Costs Deductible?

Are you thinking of selling your rental property to take advantage of the first home owner property bubble? Do you have a fixed rate loan?

If you are going to break a fixed interest loan agreement to sell a rental property, you should be able to claim the penalty interest as an outright tax deduction. This is because the penalty interest is a discharge cost and specifically allowed by the tax office. You must have received rental income in the year of your claim or it will not be an immediate deduction. The penalty interest and fees will be added to the cost base of your property if you have not been getting income. You won’t miss out on a tax break either way. Ask your accountant for clarification.

Check with your lender before you consider selling your rental property. You need to know exactly what fees and penalties you are up for! Also, check your current loan statements for errors.

Invest in the US property market while it is down, Americans are a tenacious breed, property will bounce back. Click here to find out how to get your shot at some big profits

Home loan and mortgage holders are at more risk than ever of getting overcharged interest and fees by their lenders. Essentially, getting ripped off by their home loan lenders.

The reduction in staff and extra pressure on the remaining staff have increased the possibility that lenders will make mistakes on your accounts. With interest rates falling, there is an even bigger chance that the mistakes will be in favour of your lender.

Be vigilant with your credit and home loan statements. For some years now I have been using a PC based software package made here in Australia called Mortgage Watchdog.

Mortgage Watchdog software is easy to install and use. It also has the credibility for Banks and other lenders to authorise refunds based on its calculations.

If you have a current mortgage or you have been lucky enough to have paid one out recently, I suggest you check out your lenders calculations. Put Mortgage Watchdog on your Christmas list.

Has your bank overcharged you? – Download this mortgage software to check your interest charges and claim your refund today!

Hail the Reserve Bank Board for acting quickly and decisively on interest rates.

As a result and despite all the doom and gloom, bail out and prop up talk, property prices and auction clearance rates seemed to have stabilised.

Experts are predicting home loan rates are going to fall way below any previous historical low of the last fifity years. So, It is time to evaluate your current or proposed mortgage, or test “what if” scenario’s if you are considering refinancing or consolidating debt.

Loan calculators and other recourses available on the web can help you test these “what if’s”. And the best thing is they are generally free and flexible enough that you can do things like calculate the effect of interest rate rise and falls or compare loans. In most cases you can print out the results. If not then just print the web-page.

Most calculators are easy to use. Generally it is all a matter of putting your numbers in the boxes and then clicking on the calculate button. You can have a bit of serious fun just playing with them. I have gathered what I consider the best Home Loan Mortgage calculators below:

List of Calculators
Loan Comparison
Loan Payment with Amortization Schedule
Mortgage Consolidation & Refinancing
Variable vs Fixed Interest Rate
Debt Consolidation
Accelerated Debt Payoff
Loan Statement Mistake Finder

Has your bank overcharged you? – Download this mortgage software to check your interest charges and claim your refund today!

When the Board of Reserve Bank of Australia announce a rate cut, they are talking about a thing called the cash rate. The cash rate is the overnight money market interest rate. The overnight money market is where many home loan lenders source some of their money for home loan mortgage lending.

The recent cut of .75% in this rate should bring about further relief for home mortgage borrowers who have standard variable or market rate loans. This recent cut is the third in three months and now sees the cash rate at 5.25%. There is usually a gap of around 1.8 to 2.50% from the cash rate to the rate your lender may be charging you. This gap plus account keeping fees is your lenders profit. Historically home loan rates will take a week or so to come down. So check your next statement and remind your lender of the cut if they have not made the change.

When ever there is a change of interest rate, there is an opportunity for you lender to make a mistake with your mortgage interest figures. And unless you pick it up you could be adding years to your loan and be ripped off thousands of dollars. I implore you to get some mortgage checking software. Check all your statements including your credit cards.

The headline should have read: Don’t get your hopes up for a home loan interest rate cut next month.

The murmur from the reserve bank is rates on hold for October because of the aussie dollars slide against the greenback. A lower exchange rate for the Aussie dollar against the US dollar means our products will once again be more attractively priced in the great consumer nations of the world, triggering an organic recovery of sorts. So maybe no need for an official rate cut by the Reserve Bank of Australia to stimulate growth.

Competition between the major banks and other lenders is the only hope for a Home Loan interest rate cut next month. However, the major banks are enjoying their old feeling of dominance as home loan mortgage borrowers seek the perceived safety of a major brand for their lending needs. Remember, most have not passed on last months cut. So the mortgage stress will continue.

Keep an eye on the fixed rate home loan mortgage rates. If they start to go up, look out for a rate rise.

Whatever happens with home loan mortgage interest rates, you can be sure mistakes will be made on mortgage statements. I am sad to admit, but I have let such a mistake slip under my radar. Well not entirely. I bought the Mortgage Watchdog home loan statement checker PC based software back in 2004. I use it regularly on all my investment and non investment home loans. The mortgage checking software sits on my laptop ready to serve me. And serve me it has, by discovering interest overcharges on a line of credit interest only home mortgage I operate as my base account. I have not had a mistake for some time now and I have to admit I got a little complacent. I had not used it for a few months as rates have been steady and I have been busy.

Well, I am glad I have the mortgage checker. You see, my lender has been nice enough to drop my interest rate inline with the official interest rate drop. They told me in a nice note on my statement. However, after using my mortgage statement checking software today to check my latest statement, I find they have continued to charge the old rate. I have an appointment with my mortgage broker tomorrow to sort it out. Please check your all your loan statements, even the credit card and store accounts. Lenders are quick to charge you if you make a mistake with a payment, don’t let them have it all their way. Be vigilant with your credit and home loan statements.

Even one late payment or a small blemish on your credit record can make getting or refinancing a home loan mortgage difficult.

So where do you go for help? Your Bank? Maybe, but their representatives are usually looking for the easy deals and will drop you to the bottom of their “to do list” at the first sign of a hot easy deal prospect. I suggest a reputable mortgage broker, they have a vested interest in doing the right thing by you. They are looking for a customer that will stick by them for years, not until they get a promotion like the bank Johnny’s and Jane‘s.

So, do you need help to get a loan for that property you must have or to refinance and consolidate loans and debts? I have been referring my friends and relatives to a group called the Home Loan Club. In many cases Home Loan Club has help save them and their business from being financially embarrassed or even bankruptcy.

Do any of the following situations apply to you or someone you know?:strong>