Bankwest announces 3.99% 3 yr Fixed for O/O

Bankwest announces new 3 year fixed on the Complete Home Loan Package, 3.99%.

Why is our product better than other fixed rates starting with a 3???

Benefits:
LVR Max 90% incl LMI
Offset available @ 40%
Surplus redraw available, refer to product specs for conditions
Interest only at no extra rate loading
Ability to pay 10k into the loan by each anniversary, (if you split the loan each split can pay 10k per year as well)

The rate lock fee is 0.15% of the fixed rate loan amount or $450.00, whichever is greater.

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Tze Mee Teo- Singapore

Thanks so much for the professional and excellent services you have provided, appreciated it.

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Low inflation gives RBA a green light for a pre-election rate cut

If the Reserve Bank is inclined to cut interest rates but is hesitant because of the election campaign, it now has the perfect excuse.

The most widely quoted measure of underlying inflation is running at an annual rate of just 1.7 per cent, which is below the RBA’s target and well short of expectations.

The RBA’s forecast, published in February, was for an underlying inflation rate of 2 per cent, with inflation in the March quarter of 0.5 per cent.

The actual underlying inflation rate in the quarter was less than half that, at 0.2 per cent.

Why might the bank be inclined to cut rates? The economy has been doing better than expected.

According to the national accounts, the economy entered 2016 growing at a solid annual rate of 3 per cent.

Employment is growing at an annual rate of 2 per cent, with the unemployment rate down at 5.7 per cent in March. This is against the background of a rebound in iron ore and coal prices.

However, the surge in iron or and coal prices is unlikely to be sustained and the Australian dollar has appreciated by more than is justified by the increase in export prices.

 As a result there appears to have been a significant tightening of monetary conditions since the beginning of the year which, if it is sustained, could be a serious impediment to the non-mining business investment and the economy’s successful transition out of the mining investment boom.

Partly reflecting this, the minutes of the RBA’s April board meeting reported that the board considered it appropriate for monetary policy to be “very accommodative”.

This phrase attracted attention because monetary policy previously had been described as simply accommodative.

The board probably was not then adopting a much stronger easing bias, because the statement by the governor, Glenn Stevens, after the meeting contained no hint of such a change.

 But the March quarter inflation number undoubtedly could send people’s think in that direction.

Stevens already has demonstrated that he is prepared to change interest rates in the midst of an election campaign if that is deemed appropriate.

However, the closer the move is to its proximate cause, the better.

Therefore, if the RBA concludes that it is very likely to want to cut the cash rate between now and the election, now might be a good time to do it.

 

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*Breaking News* Westpac pull out of non-resident lending

***Please contact us if you have been affected by Westpacs decision to remove itself from non-resident lending effecting 26th April, 2016

David & Partners, Australian Mortgage Advisors has exclusive access to all lenders that deal in the non-resident area and can assist you for your Australian purchase.

 

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RBA likely to look through weak inflation rate

Core inflation is likely to have eased further in the first quarter this year, but this won’t be enough to force a cut to the cash rate, according to most economists.

They say the Reserve Bank of Australia’s focus on the improving labour market, along with business confidence and growth means it will look through softer consumer price data when it is published on Wednesday.

Headline inflation for the first three months is widely expected to come in at around 0.2 per cent quarter-on-quarter, and 1.7 per cent year-on-year, according to the latest Bloomberg survey of economists.

This compares with 0.4 per cent and 1.7 per cent, respectively, in the final quarter of 2015, with lower petrol prices likely to account for the difference.

The more important core inflation rate, too, is likely to come in slightly lower than in the 2015 fourth quarter, say economists. Core inflation excludes volatile items such as fuel.

Bank of America Merril Lynch, for one, sees it slipping below the bottom of the RBA’s target band of 2 per cent to 3 per cent for the first time since 2012.

The sort of disinflationary pressure – which can discourage consumer spending and business investment – has forced extreme monetary easing in Europe and Japan.

However, Australia is different, says BoAML, because of falling unemployment and improved economic indicators. The Australian dollar’s depreciation – which briefly reversed recently – will also translate into higher import prices, it says.

 “We forecast 0.5 per cent quarter-on-quarter for the core measure of inflation, which would see the annual measure decelerate to 1.9 per cent year-on-year,” wrote Australian economist Alex Joiner.

“Given the improvement in activity data, in our view, the RBA can tolerate this temporary deceleration below its target bound.”

However, a lower-than-expected quarterly reading, of 0.3 per cent for example, would push the year-on-year rate to its weakest on record. This, says BoAML, might force a cut to the cash rate – although it seems unlikely.

“On our forecast, we expect that the core rate of inflation will only dip below the target band temporarily, with the large adjustment in the exchange rate, which has only partially reversed recently, still putting upward pressure on [import] prices,” wrote Joiner.

 “Our forecast is also underpinned by wages growth being unlikely to decelerate materially further.”

National Australia Bank also expects a subdued headline CPI, of 0.1 per cent for the quarter and 1.6 per cent year-on-year, and a weak core reading.

“This quarter’s subdued outcome is expected to be driven by further large falls in petrol – down 11 per cent quarter-on-quarter – and fruit prices – down 9 per cent quarter-on-quarter – with subdued pressures from low wages and rental CPI growth,” wrote senior economist David de Garis.

“A subdued inflation outlook, of course, provides scope to ease policy should that be appropriate to support demand,” he said, “but in NAB’s opinion that support is currently not needed, with business conditions at pre-GFC levels and the unemployment rate at 5.7 per cent.

“With inflation expectations well anchored, the RBA can still hold faith that inflation should move back towards the middle of the 2 per cent to 3 per cent target band over the forecast horizon,” said David de Garis.

Aside from the CPI, there is little of note on the domestic front to drive local sentiment this week, save for first-quarter import and export prices, March credit data and and a speech in Jakarta on Friday by RBA assistant governor Guy Debelle.

According to futures pricing, the Australian stock market is set to open the holiday-shortened week up nearly 0.5 per cent on Tuesday, following gains across the world last week.

The US Federal Reserve will steal back the limelight early on Thursday Australian time when its Open Market Committee meets to decide its next move.

All Fed-watchers expect the US central bank to leave the main reference rate at 0.25-0.5 per cent, but the accompanying statement will provide clues on whether it may lift interest rates again in June.

The Reserve Bank of New Zealand is also widely tipped to leave the official cash rate at 2.25 per cent when it meets on Thursday.

 

 

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Election 2016: Malcolm Turnbull rules out negative gearing changes

Prime Minister Malcolm Turnbull has pledged no changes to negative gearing or the capital gains tax discount, guaranteeing property values will be a key election battleground.

The ‘no change’ promise on negative gearing was reported in Sunday newspapers. But Prime Minister Malcolm Turnbull and Treasurer Scott Morrison called a joint media conference in Sydney to continue their attack on Labor’s housing policy, which will limit negative gearing to new properties and halve the 50 per cent capital gains tax discount.

“The changes Labor is proposing will devalue every home in Australia,” Mr Turnbull said.

“Labor’s got a trifecta. They want to discourage investment, jack up rents and reduce home values.”

A statement from the PM’s office specifically rules out changes to both negative gearing and the capital gains tax discount.

After being criticised for allowing the Opposition to set the policy agenda, the Coalition on Saturday announced a $1 billion plan to subsidise dental treatment for children and concession-card holders.

Employment Minister Michaelia Cash also confirmed the government would release an updated industrial relations policy ahead of the election on July 2.

But much of the attention is on negative gearing.

 Mr Turnbull told reporters that Labor wanted to undermine the value of people’s homes, increase rents and deny small businesses the opportunity to invest.

“Under Labor’s policy you would not be able to negatively gear a shop or a factory or an office.

“You also wouldn’t be able to negatively gear shares. What Labor is doing is standing the way of small business and enterprise and entrepreneurship.”

Unlike when the government announced it would not proceed with a GST increase, Mr Turnbull did not produce Treasury modelling on the effects of negative gearing.

 “This is an issue of common sense,” he said when asked why he didn’t refer to any modelling.

“A third of the buyers in the residential property market are investors. If you take one third of buyers out of the market, all other things being equal prices are going to fall.”

Mr Turnbull said supply was the main barrier to more affordable housing.

He would not be drawn on renewed reports the budget will contain personal income tax cuts.

 Mr Morrison, who previously told Federal Parliament that the Coalition planned to deal with the “excesses” of negative gearing, has dubbed Labor’s policy a “housing tax”.

“We have the common sense to know we have to leave the system as it is,” he said.

“So it’s for the Labor Party, who are proposing a housing tax, to explain their policy and why they think that’ll be good for people who are just simply trying to get ahead.”

Shadow treasurer Chris Bowen said government had made it clear that for the those people struggling to get in the housing market, “he doesn’t care less”.

“He doesn’t have a plan for housing affordability. His plan for the election is to run a scare campaign,” he told reporters in Sydney.

Earlier on Sunday, Senator Cash told Sky News that the government would respond to the Productivity Commission’s recommendations from a review of the workplace relations system before the poll.

She said she had been consulting with unions and employers over the 69 recommendations in the commission’s final report released in December.

“We are now finalising our response. It will be laid out ahead of the election,” she said.

Opposition finance spokesman Tony Burke told the ABC Labor was against cutting penalty rates.

Opposition Leader Bill Shorten on Thursday said he would accept the findings of the Fair Work Commission, which is investigating penalty rates in the retail and hospitality sectors.

“We support having an independent umpire…that’s what (Mr Shorten) was referring to, but beyond that we believe people deserve penalty rates,” Mr Burke told ABC TV on Sunday.

 

 

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Foreign buyers: Victoria Treasurer announces hike in stamp duty

Foreign buyers will have to pay more stamp duty on residential real estate, and higher land tax, under Victorian government reforms that could raise an extra $500 million over four years.

Treasurer Tim Pallas on Friday said next week’s budget will increase the stamp duty surcharge for foreign buyers from three to seven per cent, and the land tax surcharge for absentee owners from 0.5 to 1.5 per cent.

“Victorians would say we deserve a contribution back into the state services from foreign purchases,” Mr Pallas told radio station 3AW.

Labor first introduced the surcharges for overseas property owners in last year’s budget, which Mr Pallas said had seen
“no adverse” effect on the property market, with foreign investment continuing to grow.

“We think it is fair, that if you are purchasing in the state of Victoria and you haven’t made a long term investment in the delivery of amenity that makes Melbourne such a desirable place to live then there a should be an additional payment,” he said.

“We think it is a modest, but a valuable contribution.”

Shadow Treasurer Michael O’Brien said Premier Daniel Andrews had broken a promise by raising taxes.

And he warned that the tax hike would be paid for by Victorian renters, who would be slugged by landlords.

“Victorians know you simply can’t believe a word this man says when it comes to tax or financial management,” he said.

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