• Credit history default – Forestry Investment

    I was recently approached by an accountant who was doing the tax returns for a new client. The client wanted a home loan to purchase a new house in the Hunter Valley. But, they were aware that they had received a credit history default since they had bought their Wollongong home. Lending policies have changed recently but a default is not something that too many lenders will accept when applying for a home loan. The default came about because they had received advice from a solicitor. The advise was to cease making the repayments on the loan they had for a series of  forestry investments they had made. This advice…

  • Reserve Bank Sets New Record for Low Interest Rates

    Reserve Bank Interest Rates Today the Reserve Bank announced a target “cash rate” of 2.50 percent, the lowest ever recorded in Australia. On a $300,000 home loan, this interest rate reduction  will reduce repayments by nearly $60 a month  For those looking to purchase a new home,  these lower rates are going to encourage buyers however you should use caution as interest rates aren’t always going to be this low. If the volatility of interest rates makes you unsure about what future Reserve bank decisions might mean, now might be a good time to consider a fixed rate loan. Future changes in interest rates could effect your living standards, to…