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The RBA has maintained the cash rate at 4.35% for the eighth consecutive meeting, despite inflation falling to 2.8% in the September quarter, the lowest in nearly four years. What has changed though is the associated wording. The RBA’s communication linked to the decision indicates increased confidence that inflation is returning to target levels, suggesting a potential rate cut as early as February 2025.
It’s hard to believe but it’s that time of year again, when the pace of life slow’s for a while, and people come together with family and friends to celebrate Christmas or to make the most the holiday season.
To all of our wonderful referrers, we’re truly grateful for your support over the past 12 month, and we hope you all have a wonderful few weeks over the Christmas/New Years period.
Our office will be closed for a few weeks so we can recharge our batteries in anticipation of a very busy 2025.
In this week’s newsletter, we take a look at the potential traps when accessing superannuation for a home deposit.
Digital home loans are mortgage products offered entirely online, from application to settlement, without the need for in-person interaction.
Powered by technology and automation, these loans promise convenience, speed, and often competitive interest rates. Borrowers can complete the process digitally, with many platforms using AI to assess applications quickly, making them appealing for tech-savvy individuals seeking a streamlined experience.
However, digital home loans may not be the best choice for every borrower. Here’s why:
Suitability: Whilst digital home loans may promise much, they are not necessarily the loan that is in the best interest of the borrower i.e they do not take into account the current and future needs of the borrower.
Limited Personalisation: Digital platforms often rely on standardised processes, which may not account for unique financial circumstances, such as irregular income or complex property transactions. Borrowers who need tailored advice or creative solutions may find these loans inflexible.
Lack of Human Interaction: While the digital process is convenient, borrowers navigating complex situations may benefit from the expertise of a broker who can provide nuanced guidance and address specific concerns.
Self-Directed Process: Digital home loans require borrowers to manage the process themselves, which can be overwhelming for first-time buyers or those unfamiliar with home financing.
Technology Barriers: Some borrowers may face challenges with the digital platforms due to technical issues or a lack of digital literacy.
While digital home loans are innovative and efficient, borrowers wll generally find a better mortgage solution via a broker.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
