HomeMate.com.au

A BIS report is claiming that capital city home prices are set to rise by 20% over the next three years.

Affordable housing is something that both the Reserve Bank of Australia and the Rudd Government value, and home loan interest rate rises will be a part of what I believe are futile moves to dampen demand. How will rising housing prices and rising interest rates make homes more affordable?

The highest fertility rate in Australia’s history, the lowest death rate in Australia’s history and the highest migration numbers in Australia’s history, and a surging economy tell the story of why Australia has a shortage of housing stock and the demand to buy a home, and these facts also points to the remedy, without having to dampen demand with interest rate hikes.

To keep interest rates low and to provide affordable housing, Australia has to make it a priority to develop residential land, and to build homes to an over supply situation. That will have to mean developing new more efficient methods of developing land and building homes.

In the mean time, some say we may have to reduce migration, and curb the baby boom, though both would be short sighted moves, as with Australia’s ageing population we will need to see  these growing to provide workers and business development to sustain that growing segment.

Investing in a new home right now looks very tempting with the last ten years showing a doubling in value over the period, rising rents and low home loan interest rates.

And the housing shortage does not look like going away anytime soon, even if mortgage rates rise dramatically, because we all have to live somewhere, and for most of us, on the streets is not an option.

Author: Rick Adlam Mr Mortgage

Some things in mortgage lending never change. In an ongoing saga the Big Four banks have again been belted in a customer satisfaction survey that puts them well behind credit unions and building societies.

NAB, Commonwealth, Westpac and ANZ Banks are the most disliked for high fees, shabby service and reluctance to pass on full interest rate cuts.

Choice says boycott banks

Consumer group Choice says customers should boycott banks behaving badly.

While people are unhappy with their mortgage lenders, they are apathetic and stick with their bank because they say it is too hard to switch, or believe “better the devil you know”.

The Big Four, expected to post a collective $15.7 billion profit for the past year, languished at the bottom of the satisfaction ladder for everyday banking. Credit unions and building societies topped the charts.

Credit unions most liked for everyday banking

Credit Union Australia and Teachers Credit Union snared the best overall score for everyday banking at 84 per cent, followed by Bendigo Bank on 82 per cent.

Niche banks do best with mortgage home loans

ME Bank, ING Direct and Bankwest customers were happiest with home loans.

Credit card ranking highest for niche banks and Credit Unions

For credit cards, ME Bank, Bendigo Bank and Credit Union of Australia got top billing

GE Money collected the wooden spoon for credit cards.

It Pays to shop around for your home loan.

Author: Rick Adlam Mr Mortgage