Results Home Loans
June 2024 Update
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Rate Movements
As of 19 June 2024, RBA has decided to leave rates unchanged, keeping the Cash Rate at 4.35%.
RBA Cash Rate in June 2014 was 2.50%.
Westpac
Peak of 4.35% in November 2023, then dropping to 3.10% by December 2025
NAB
Peak of 4.35% in November 2023, then dropping to 3.10% by November 2025
CBA
Peak of 4.35% in November 2023, then dropping to 3.10% by December 2025
ANZ
Peak of 4.35% in November 2023, then dropping to 3.60% by December 2025
CURRENT INTEREST RATES FOR HOME OWNERS
Based on a $500,000 loan over a 30 year term at 80% LVR with Principal and Interest repayments.
CURRENT INTEREST RATES FOR INVESTORS
Based on a $500,000 loan over a 30 year term at 80% LVR with Interest Only repayments.
Lender Turnaround Times
As at 19/06/2024
Under 24 hrs
2 Days
3 + Days
Industry News
RBA to hold the line in June decision
Major bank economists expect the Reserve Bank of Australia (RBA) to keep the cash rate at 4.35% in June. Westpac’s Matthew Hassan says recent data shows restrictive policies are helping control inflation but the outlook remains uncertain. Commonwealth Bank’s Gareth Aird notes that economic data aligns with RBA forecasts, particularly on unemployment, suggesting no rate change is needed. ANZ has postponed its cash rate cut prediction to February 2025 from November 2024, citing the current effectiveness of monetary policies.
ANZ has changed its forecast for the Reserve Bank of Australia’s (RBA) cash rate cut from November 2024 to February 2025.
Adam Boyton, ANZ’s head of Australian economics, mentioned that while they initially expected a rate cut in November 2024, they had always cautioned it might be delayed. Key factors leading to this change include:
- Q1 national accounts showed stronger household consumption.
- The labor market’s performance suggested the economy’s trend growth might be as low as 2%.
- Government consumption continued to support GDP growth and employment.
- Stronger-than-expected March quarter Consumer Price Index (CPI) data made it difficult to be confident inflation would return to the 2-3% target band by November.
The April CPI rose by 3.6%, testing the RBA’s patience. Despite the economy slowing, balancing demand and supply is taking longer than expected.
Following the expected rate cut in February 2025, ANZ anticipates another easing likely in April or May, with three 25-bps cuts expected by the end of 2025.
At this time, other major banks (CBA, NAB, and Westpac) have not shifted their rate cut forecasts from late 2024. However, CBA’s Gareth Aird indicated the challenging inflation situation might delay their predicted cut.
RBA governor Michele Bullock emphasised the central bank’s data-dependence and neutrality, noting they will raise rates again if inflation rebounds.
Most competitive interest rate
Based on a loan of $500,000 at an 80% LVR
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5.79%
Navigating financing challenges
We understand that securing financing for tiny homes can be challenging, with traditional lenders often hesitant to support unconventional housing projects. That’s where MoneyPlace stands apart. Our flexible approach to personal loans could accommodate the unique needs of tiny home buyers, providing the lending they need to turn their vision into reality.
So how can MoneyPlace help?
- Loans of up to $80k or up to $160k for the household.
- Unsecured rates starting from 7.24% p.a. (7.24% p.a comparison rate*)
- No monthly, ongoing fees or exit fees
- Fast and easy online application process
- Funds the same day as approval
Go tiny or go home with MoneyPlace
In the ever-evolving housing landscape, one trend stands out as both innovative and practical: tiny homes. It’s important to recognise and capitalise on emerging opportunities. That’s why MoneyPlace offers tailored personal loans to support the tiny home movement, empowering your clients to embrace a unique way of living.
Meeting demand in a growing market
Recent insights from industry experts highlight a surge in demand for tiny home financing. With more Australians exploring alternative housing solutions, the need for accessible lending options has never been greater.
Affordable and sustainable living
Tiny homes provide an exciting solution beyond simply downsizing; they offer sustainable and affordable living, particularly relevant to many Australians today. As housing costs soar and supply remains limited, tiny homes offer a pathway to attainable and environmentally conscious living without sacrificing quality or comfort.
Case study
Successful SMSF Loan Application for New Zealand Clients Purchasing Investment Property in Western Australia
Our clients, Ward and Karen, are New Zealand citizens residing in Melbourne. They sought to expand their investment portfolio through their Self-Managed Superannuation Fund (SMSF), “Carrick Superannuation Fund,” by purchasing an investment property in Western Australia. This case study highlights the complexities and challenges we navigated to secure their SMSF loan and ensure a smooth settlement process.
The SMSF loan application presented several unique challenges:
Interstate Legal Nuances: Different states in Australia have varying legal requirements for property transactions. In this case, Western Australia’s laws required the Security Trust Deed to be signed before the contract of sale to avoid additional stamp duty.
Documentation Errors: During the process, we discovered that the conveyancers had mistakenly completed the Contract of Sale with the purchaser as the Trustee company name instead of the Bare trust for the SMSF.
Residency Requirements: As New Zealand citizens, Ward and Karen needed to be physically present in Australia at the time of settlement.
Understanding Legal Requirements:
Collaborative Efforts: This involved multiple discussions with legal experts and conveyancers to ensure compliance with Western Australian law. Our persistence and attention to detail paid off as we understood and implemented the required legal sequence.
Addressing Documentation Errors:
We coordinated with the conveyancers to amend the documentation. This required detailed explanations and careful revisions to ensure the property was correctly purchased under the Bare Trustee “Carrick Bare Holdings Pty Ltd.”
Ensuring Compliance with Residency Requirements:
We maintained open communication with Ward and Karen, explaining the necessity of their presence in Australia at the time of settlement. This was crucial due to their status as New Zealand citizens.
Outcome
Despite the complexities, we successfully navigated all the challenges:
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Legal Compliance: The Security Trust Deed was signed in the correct sequence, ensuring no additional stamp duty was incurred.
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Correct Documentation: The error in the purchase documentation was rectified, ensuring the property was correctly purchased under the Bare Trustee.
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Successful Settlement: Ward and Karen were present in Australia at the time of settlement, complying with all legal requirements.
This case underscores the importance of thorough knowledge of interstate legal requirements, meticulous attention to detail in documentation, and proactive client communication. Our ability to navigate these challenges ensured a successful outcome for Ward and Karen, allowing them to expand their investment portfolio smoothly through their SMSF.
Please see our SMSF Property Loan Guide below:
Thank You!
The value of a strong network and reliable partnerships cannot be overstated, and your referrals have not only brought us new business opportunities but have also reinforced the belief that we are on the right path to providing exceptional products and services to our customers.
So we wanted to take a moment to express our deepest appreciation for the outstanding support and collaboration we have received from you as our referral partner.
Your willingness to recommend our company to your own network speaks volumes about the trust you place in us, and we are honored to have earned such trust.
We truly appreciate the effort you put into every referral. Please know that we are always here to reciprocate your kindness and support. Should you ever require assistance or need a reliable partner for any venture, please don't hesitate to reach out to us.