By Brad Smith on Thursday, February 26, 2009 2:40 PM

Last Friday we reported (http://tinyurl.com/dzpgum) that Wizard Home Loans borrowers would suffer from the decision made by its parent company GE Money not to pass on any of the RBA’s 3rd February rate cut of 100 basis points. The news this week looks much brighter for 16,000 of these Wizard customers with word that Commonwealth Bank (CBA) will be acquiring a large portfolio of Wizard’s home loans and has plans to pass on the full 1% rate reduction to those borrowers. Read More »

By Brad Smith on Wednesday, February 25, 2009 5:12 PM

Significant increases to the Federal Government’s First-Home Owners Grant s in October 2008 have contributed to a housing boom in Australia among those entering the market for the first time. Reports today suggest that the number of 1st Home Buyers doubled from 5,385 in November to 11,130 in December after the grant was doubled (to $14,000) for those buying existing homes and tripled (to $21,000) for those building a new home. And in 2009 the trend has been even more positive with almost 25,000 1st home buyers entering the market in less than the 2 months gone this year. Read More »

By Brad Smith on Tuesday, February 24, 2009 11:24 AM

Reports this morning that Treasury advised the Government to scrap the 30% rebate on private health insurance immediately after it took office in late 2007. The rebate scheme was a policy initiative introduced by the Howard government in 1999 to encourage more people to take out health insurance with one of the many Australian private health funds to reduce the burden on the public health system. The rebates are said to amount to roughly $3.5 billion of government spending annually and the Treasury brief to Treasurer Wayne Swan suggested that this was “very poor policy” and “would be better used to improve public hospitals”, according to Fairfax Newspapers. Read More »

By Brad Smith on Monday, February 23, 2009 11:10 AM

CBA to introduce 3% min deposits
By Brad Smith, Editor


The Commonwealth Bank of Australia (CBA) has today joined its major lender rivals nab and ANZ in cutting its Loan to Valuation Ratio (LVR), meaning that home buyers will now need a deposit of at least 3% of the property price in order to borrow from biggest lender in Australia. With the federal government granting first-home buyers $14,000 for an existing home purchase and $21,000 to build a new dwelling, coupled with rapidly falling interest rates, there is a fear that borrowers could over-extend themselves in the softening economic conditions. The introduction of the higher minimum deposit requirements at least ensures that borrowers who have some “skin in the game…are more committed to continue their repayments” according to CBA executive Ross McEwen in The Australian Read More »

By Brad Smith on Friday, February 20, 2009 1:17 PM

GE & Wizard pass on 0% of rate cut
By Brad Smith, Editor

Concerns today for GE Money and Wizard home loan borrowers with news that you will not be enjoying any of the benefits of the RBA’s February 1% reduction to the official cash rate. The RBA rates announcement, made more than a fortnight ago, was immediately followed up by all of the big 4 banks as well as St George passing on the full value of the 1% rate cut (as reported here http://tinyurl.com/ba4lge). The decision by GE Money makes it the only big lender in the country not to pass on at least a partial rate reduction to its borrowers. Read More »

By Brad Smith on Thursday, February 19, 2009 1:15 PM

More Australians buying Private Health Insurance
By Brad Smith, Editor

Some very positive news today for private health funds with reports suggesting that the December 2008 quarter produced the highest Australian private health insurance membership levels in 7 years. Despite plenty of doom and gloom forecasted by the funds after October’s changes by the Government to the Medicare levy surcharge, 54,000 more Australians took out private health insurance cover over that 3 month period. The increased membership figures counter dire warnings from funds that the Medicare changes would cripple the industry and will undermine government lobbying by the funds for increases to current premium levels. Read More »

By Brad Smith on Wednesday, February 18, 2009 10:40 AM

Westpac admits home loan error
By Brad Smith, Editor

Admissions overnight from Westpac, reported in today’s Herald Sun that the bank had “unfairly denied customers a special fixed rate home loan offer” that had been advertised in December 2008, sending a warning to Australian borrowers to shop around and ensure that you are really getting the best deal from your bank before committing to a loan.
Read More »

By Brad Smith on Tuesday, February 17, 2009 1:42 PM

Housing now more affordable
By Brad Smith, Editor

Finally some positive news in the consumer finance pages today with yesterday’s release of the Housing Industry Association - Commonwealth Bank First Home Buyer Affordability Index. Whilst the key economic indicators, such as rising unemployment and declining GDP, continue to paint a gloomy forecast for 2009, the Index shows that housing affordability is at a 5 year high around the country and “mortgage stress” levels are also declining for the better. And as HIA chief executive Chris Lamont told The Australian “conditions for first-home owners would get even better in the first quarter of 2009 as the one percentage point drop in interest rates earlier this month filtered through.” Read More »

By Brad Smith on Monday, February 16, 2009 12:00 PM

Babies at greater risk in public hospitals
By Brad Smith, Editor

Following on from last Thursday’s blog post (http://tinyurl.com/ao8fvk), some further evidence in today’s news that private health insurance is worth plenty of consideration for those that don’t already have it. According to a joint Australian National University & UNSW study published in the Medical Journal of Australia, women giving birth in public hospitals are 3 times more likely to suffer serious complications, either to their own health or that of their newborn. The study looked at the outcomes of almost 790,000 births over a 4 year period (2001-04), with about 1/3rd of these in private hospitals. Read More »

By Brad Smith on Friday, February 13, 2009 11:45 AM

Stimulus package to pass in Senate
By Brad Smith, Editor

The past 24 hours has been quite the rollercoaster ride for the Rudd Government and its proposed $42 billion economic stimulus package but the news now appears to be all positive with a deal being struck last night between Treasurer Wayne Swan, Water Minister Penny Wong, and key cross-bench Independent Senator Nick Xenophon that should see the amended proposal finally pass through the Senate. Read More »