Blog Entries tagged 'new car finance'

The benefits of using a mortgage broker

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

There has been press recently concerning the benefits of using a mortgage broker when looking for home finance and car finance � yes, a mortgage broker will generally be able to assist you with your car finance as well as standard home finance and investment loans.

The mortgage broker business boomed during the 1990s when there was a plethora of home finance and car finance loan products launched into the market. With increased competition from the non-bank sector and mortgage manage [...]

Where are home finance interest rates heading?

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

The good news is that home finance interest rates are heading south! The Reserve bank of Australia like other banks around the world has been effectively reducing the cost of home finance by cutting the Official Cash Rate over the past few months. Australia saw a drop of 1% in the cash rate in October and then another 0.75% in November and the likelihood is that the RBA will pass on a further rate cut in December.

Some economists are forecasting that variable rate home finance will [...]

A mortgage broker can save you time and money

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

In Australia many lenders rely on a mortgage broker or mortgage brokers to generate new business for them. Many Australian banks closed their branch offices during the late 1980s as they turned to technology and internet banking to grow their businesses. The branch network was considered expensive to run. The banks believe it is far better to pay a mortgage broker to generate home finance loans and pay him a commission, only on success. The mortgage broker may interview and submit a number of ho [...]

A mortgage broker is worth his weight in gold

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

A mortgage broker is worth his weight in gold

I recently decided to refinance my home loan and my investment loan and it was suggested to me that there was little need for a mortgage broker because it was easier enough to go direct to a bank and apply for a loan. I thought that I would speak with my own bank. The first frustration was I could not actually contact my branch direct. I had to phone a 1300 number which was a call centre operation outside of Australia. No one could assist me imme [...]

Australian Mortgage Broker

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

I read an article recently that suggested that borrowers who use a mortgage broker pay more for their loan than if they go direct to the bank. It is extraordinary when this sort of poorly researched misinformation is published in a magazine.

I have been involved ion the mortgage industry in Australia for over 25 years and during that time I have seen the growth of the mortgage broker market. In the early 1980s a mortgage broker was often affiliated with a stock or share broker. Pri [...]

Home finance interest rates getting lower by the day in Australia

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

First home buyers, investors and those looking to upgrade their property by way of home improvements or the purchase of a bigger home are all in a better position to do so than they were some six months ago when home finance interest rates were looking like hitting 10% p.a. In mid-2008 the Reserve Bank of Australia was lifting interest rates to curb inflation knowing that an increase in the Official Cash Rate would soon be passed on to home finance and investment loans. Home finance interest rat [...]

HOME FINANCE BENFITS FROM WORLDWIDE CREDIT CRUNCH

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

There are not too many benefits coming out of the world wide credit crisis, but one at least, is the reducing home finance interest rates that we are now experiencing in Australia. Home finance is becoming more affordable as the Reserve Bank of Australia (RBA) drops interest rates. In October interest rates reduced by 1% p.a and then in November they reduced again by a further 0.75%. While the banks and other lending institutions may not always pass on the full rate reduction to their home finan [...]

Car finance becoming increasingly scarce in Australia

Vicky Edema — Mon, 01 Dec 2008 00:00:00 +0100

The world economic global crisis has had a huge and negative impact on the car finance industry in Australia because the major suppliers of car finance here have recently withdrawn from the car finance market. GE Money and GMAC who are believed to have had at least 60% of the car finance market in Australia have suddenly withdrawn from this market. While GE Money has continued to play in the credit card market where it has been increasing interest rates in Australia (as have many other lenders) [...]

Car Finance under threat in Australia but there is still good car finance available

Vicky Edema — Tue, 11 Nov 2008 00:00:00 +0100

Car dealers and lease brokers are anxious as a result of GE Money�s withdrawal from the Australian car finance market. Only in September GE Money was reassuring business partners that it was �here for the long term� was �funded for 2008�
and had �liquidity� at �competitive rates�. This all went out the window recently when GE Money announced that it was withdrawing from the car finance markets in Australia and New Zealand. GE Money claims that the cost of funding car finance has become too expe [...]

Car finance in Australia � don�t go with the dealership until you have checked out other car finance

Vicky Edema — Tue, 21 Oct 2008 00:00:00 +0100

The mistake many buyers make when they are looking to purchase a new car is to settle their car finance with the dealership. Certainly there may be times that the car finance offered by the dealer is competitive but as a general rule you will find a better car finance package through other financiers in the car finance space. All too often, buyers of a new car are swept up in the emotion of driving that beautiful vehicle out of the car lot as soon as possible and think that the quickest way to d [...]

Don�t deal with just any mortgage broker � deal with a mortgage broker who is a member of the Mortga

Vicky Edema — Mon, 20 Oct 2008 00:00:00 +0100

I am an Australian citizen based in the UK and have been looking to purchase a property in Australia in anticipation of my returning home over the next few years. I had initially thought I would apply to my own bank but after speaking with an expatriate friend who recommended I seek the services of a mortgage broker, I did exactly that.

I asked my buddy what one should look out for when retaining the services of a mortgage broker? His advice was to deal with a mortgage broker who i [...]

In Australia, what does a mortgage broker offer you?

Vicky Edema — Mon, 20 Oct 2008 00:00:00 +0100

While the banks have been trying hard to undermine the role of a mortgage broker in the new home loan application process, there is no doubt that borrowers who utilise the services of a mortgage broker are much better informed and invariably obtain a home loan that is better suited to their needs.

If a home loan borrower approaches their own bank for a home loan one would hope that the bank will offer them the best deal they have available for that customer. A mortgage broker can o [...]

Do not underestimate the value of a mortgage broker in Australia

Vicky Edema — Mon, 20 Oct 2008 00:00:00 +0100

Many banks have recently taken advantage of the global credit crunch to reduce the commissions paid to a mortgage broker within a bank�s mortgage broker distribution network. Over the past 15 or so years, the majority if not all of the banks have relied on mortgage brokers to generate a significant portion of their new business. Why did the banks cultivate this distribution channel so fervently? The banks paid commission to a mortgage broker only once a home loan had settled. This was seen to be [...]

A new car loan from the dealer is not always the best choice for your new car finance

Vicky Edema — Mon, 08 Sep 2008 00:00:00 +0100

When purchasing a new car it is always very easy to be swept away in the excitement of it all and want to take delivery as quickly as possible. To do this it is simply a matter of agreeing on the price of your new car and signing the necessary documents for a new car loan. All done and dusted. But just how much more have you paid for your new car and your new car loan because of your �want it now� approach?

Probably more than you think. Car dealers can be very persuasive and once t [...]

Found the perfect new car � now find the perfect new car loan!

Vicky Edema — Mon, 08 Sep 2008 00:00:00 +0100

If you are lucky enough to be looking for a new car then make sure that before signing up for the new car and the new car finance you check out the price competitiveness and the options available for a new car loan.

While most buyers believe they are in the box seat when negotiating the purchase price of a new car and the terms of a new car loan the reality is that more often than not a better deal can be had if you step back and check out your options thoroughly. Purchasing a new c [...]

Looking for a new car loan? Then look beyond the caryard!

Vicky Edema — Mon, 08 Sep 2008 00:00:00 +0100

Last weekend I was out looking to buy a new car � a Holden Calais 60th anniversary edition in fact. I had been to a few dealerships and finally made a decision to buy. The salesman asked whether I had pre-arranged a new car loan. I hadn�t done so and as a result I was ushered into the office and bombarded with a whole heap of numbers relating to a proposed new car loan. What I couldn�t understand was how instead of telling me an interest rate the dealer focused on the monthly instalm [...]

Looking for a new car loan in Australia � then use a broker

Vicky Edema — Mon, 01 Sep 2008 00:00:00 +0100

Quite often when you are looking to buy a new car, the dealership will put considerable pressure on you to sign up for the finance with them. This was my experience recently when I purchased a new car. It would certainly have been more convenient to simply sign up at the dealership but I decided to check out other options and phoned my mortgage broker (he had helped me find a cheap home loan and I knew he also had access to cheap rates for people after a new car loan).

What I disco [...]