Posts Tagged ‘interest rate’

A recent survey by Lender Mortgage Insurer, QBE, gives some interesting statistics.  In March this year First Home Buyer (FHB) activity dropped to it’s lowest level in 6 years.  It reached it’s all time high in May 2009 when FHB activity represented 28.5% of the home loan market.

$359,786 – The average FHB Loan size  

60% – The proportion that believes they will have trouble making their repayments due to the increased cost of living.

60% – The proportion that consider the interest rate to be the most important consideration in choosing a mortgage.

76% – The proportion of FHB’s that want to buy a pre-existing house.

There is more to refinancing than meets the eye.  Let’s look at the three main drivers behind refinancing:

1. Debt consolidation.
2. Better interest rate
3. Release of equity

Let’s look at the release of equity. Most of my refinancing activity comes through my investor clients. Investors are starting to fill the gap that was created by first home buyers. They are building a little bit of equity in their property and then refinancing so that they can buy another property.  It is like “leap frogging” into the next property.  Your equity provides the deposit and costs for the investment property. These funds are tax deductible, as it is the purpose of the funds that the ATO looks at rather than the security offered.

Releasing equity is a great way to start building your property portfolio.

If you have property in Lake Macquarie, Newcastle, Cessnock, Maitland, Central Coast or Port Stephens  and would like a no cost Rp Data property report just follow the link below

 No cost Rp Data Property Report

If you have multiple credit cards, I suggest that you target the card with the least amount of debt. Pay the minimum amount on the remaining cards each month and then pay as much as possible each month until it is paid down.  This will give you a psychological boost as you have achieved a small goal and gained a financial benefit.    You can then target the next card paying the minimum amount plus the amount you were paying on the smaller card and so the cycle goes on.

As a point to remember, if you are paying more off your home loan and have credit card debt, you are better to pay the minimum repayment on your home loan and pay that money off the credit card as your card is at a much higher rate of interest of say 18 – 21%.