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Posts Tagged ‘Credit’

RBA says No Housing Crisis Here

Posted by Tamara McDowell on June 9, 2010

Speaking on recent developments in the housing market the RBA’s Head of Financial Stability, Luci Ellis recently stated that any housing collapse like that seen in the US at the start of the global financial crisis is unlikely to occur in Australia.

Ellis notes that if the current benign picture of the financing of the housing market is to continue it is crucial that lending standards in the mortgage market remain prudent.

“Past experience has clearly shown that in the long run, you don’t improve housing affordability by easing lending standards. That just gets capitalised in the price.

“In fact, easing mortgage lending standards too far can be outright damaging to long-run affordability. This has been amply demonstrated in the recent United States housing meltdown,” Ellis said.

In Australia, lending standards never eased that far, and conditions didn’t get that grim.

Ellis notes that first-home buyers have long faced greater risk than more established home owners who have more equity in their homes. She states that there appears to have not been a drop in lending standards to first-time buyers, even when the First Home Owners Boost was in effect.

“Indeed, across the mortgage market as a whole, lending standards are a little tighter than they were a couple of years ago,” says Ellis.

In summary Ellis said that the global economic slump may still have a way to go and with consumer confidence still low financial conditions could remain tight for several years.

Mortgage holders should expect then, that current lending criteria will remain in force – which generally means borrowers will be required to provide a minimum deposit of  5 per cent as well as provide evidence that genuine savings forms part of that deposit.

Borrowers who require assistance finding a home loan, or who are looking for a low deposit option, should talk to a good mortgage broker for assistance.

Posted in Bank & Lender News, House Prices, Interest Rates, Loans, Mortgage Broker Service, Real Estate News | Tagged: , , , , , , , , | Leave a Comment »

How your Credit Report affects YOU..

Posted by Tamara McDowell on March 19, 2010

If  you want a mortgage, a personal loan, a credit card, a business loan, interest free credit for furniture, or any kind of credit, your credit report usually has to be reasonable.

An impaired credit report can affect your ability to purchase a house, to obtain any new credit cards, to increase limits on existing credit cards, to obtain an overdraft from your bank or most other kinds of credit facilities.

When you start to see early warning signs of debt beginning to become hard to manage..take steps to immediately address your debt problems and protect your credit report. Taking early action will keep your credit report clean and help you in your success when applying for future credit.As soon as you begin to overextend yourself and you find yourself defaulting on payments you are heading to a situation where you are in danger of ruining your credit report.

This will limit the number of credit vehicles available to you. Most banks will not consider a loan and/or issue a credit card. Only the lenders that specialise in lending to higher risk clients will be in a position to lend you money. Those loans will be at above average interest rates to compensate for your perceived higher risk.

These higher rates put you at more risk to default on a loan as your loan will be much more expensive than the average person’s. This illustrates how having a bad credit report can affect you in the long term. It makes it easier for you to get in financial trouble. 

Your credit report is an indicator of your ability to manage money. As well as containing negative information it should also contain positive information about previous credit applications. This information supports any application you make in the future and should help you secure an approval any time you make an application.

Posted in Loans, Mortgage Broker Service, Your Credit | Tagged: , , , , | Leave a Comment »

What is a Credit Report?

Posted by Tamara McDowell on March 18, 2010

A credit report is simply your credit history. It is a record of the credit applications you have applied for; any credit defaults against you; any serious credit infringements and financial information, which are held on the public record.

It is important to maintain a positive credit report. Every time you apply for credit an enquiry is recorded on your credit report. When you apply for any credit such as a loan or a credit card the credit provider is likely to review your credit report. If you have defaults listed or any serious infringements, it is these negative listings that may determine whether your credit application is approved or rejected.

Your credit report will influence credit providers. If used correctly, credit can be a useful tool for people as it allows them to borrow money and pay it back at an agreed rate. If your credit is serviced and managed correctly then your credit report will always be good. Read the rest of this entry »

Posted in Loans, Your Credit | Tagged: , , , , , | 1 Comment »

How your Credit Report affects YOU

Posted by Tamara McDowell on February 3, 2010

If  you want a mortgage, a personal loan, a credit card, a business loan, interest free credit for furniture, or any kind of credit, your credit report usually has to be reasonable.

An impaired credit report can affect your ability to purchase a house, to obtain any new credit cards, to increase limits on existing credit cards, to obtain an overdraft from your bank or most other kinds of credit facilities.

When you start to see early warning signs of debt beginning to become hard to manage..take steps to immediately address your debt problems and protect your credit report. Taking early action will keep your credit report clean and help you in your success when applying for future credit.As soon as you begin to overextend yourself and you find yourself defaulting on payments you are heading to a situation where you are in danger of ruining your credit report.

This will limit the number of credit vehicles available to you. Most banks will not consider a loan and/or issue a credit card. Only the lenders that specialise in lending to higher risk clients will be in a position to lend you money. Those loans will be at above average interest rates to compensate for your perceived higher risk.

These higher rates put you at more risk to default on a loan as your loan will be much more expensive than the average person’s. This illustrates how having a bad credit report can affect you in the long term. It makes it easier for you to get in financial trouble. 

Your credit report is an indicator of your ability to manage money. As well as containing negative information it should also contain positive information about previous credit applications. This information supports any application you make in the future and should help you secure an approval any time you make an application.

Posted in Mortgage Broker Service, Your Credit | Tagged: , , , | Leave a Comment »