Welcome to this month’s edition of the Dot Monthly!
First and foremost, I’d like to take this opportunity to wish you all a happy end of a financial year! We look forward to making the 2020 financial year a cracking one for you as we embark on this journey together.
Since the last blog, we’ve seen 2 interest rate cuts! With the most recent being announced yesterday. This takes the cash rate to an unprecedented 1%, which is great news for all mortgage holders however not so great for the stuttering economy and those who rely on their savings to generate an income.
Let’s get into this month’s topics –
Broker Market-share Hits Record 60%
Mortgage brokers have achieved their highest ever residential home loan market share. The Mortgage & Finance Association of Australia says brokers arranged 60% of mortgages in Australia during the March Quarter, and 90% of mortgage broker customers are happy with the service they receive.
It says this represents a strong customer vote of confidence in the mortgage broker channel and the future looks bright for the country’s 17,000 brokers.
More and more Australians are seeking the professional guidance of mortgage brokers as credit Conditions become tighter.
Lending for property hits the lowest in more than 40 years, RBA says
The first official data on lending since the country’s federal election suggests the pace of credit growth continued to slow during May as finance for property investors hit an unprecedented annual low.
Lending to businesses and property buyers grew only marginally in May, while the fall in personal loans accelerated, statistics from the Reserve Bank suggest.
The numbers show overall private sector credit grew 0.2 per cent – meeting market expectations and matching April’s result – and that mortgage credit growth slowed to 0.2 per cent in May from the previous month’s 0.3 per cent. Credit to business rose 0.1 per cent and personal credit fell 0.6 per cent.
The monthly drop in personal credit – households’ borrowing for purchases other than real estate – pushed the annual movement to a nine and a half year low.
What has Dot been up to for the month?
Don’t forget to read up on the 15 year itch which is an E book I’ve authored to equip you with strategies to pay off your mortgage in under 15 years. The e book is available on the website or you can get in touch via email to request a complimentary copy.
As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email Connecting@dotfinancial.com.au or you can call us on 1300 000 DOT (368).