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Latest News

Latest News

Young couple with keys to new house

Are 40-year home loans the solution for desperate first-home buyers?

Great Southern Bank has just announced a 40-year variable home loan product tailored to first-home buyers seeking lower monthly repayments. Per internal research at the customer-owned banking giant, 29% of Gen Zedders and Millennials would consider taking out a 40-year loan, as would 19% of Gen Xers, if it meant lower monthly repayments. Ask and ye shall receive – Great Southern Bank has made the products available to all Australian citizens aged between 18 and 40, for first-home buyer owner-occupiers only, at a maximum 90% LVR. Launching the product, Rolf Stromsoe, chief customer officer, said: "For some Australians having lower monthly repayments is the difference between renting and buying their first home. "This could be their 'starter home loan' – exactly what they need to get their foot in the door at the beginnings of their home ownership journey."

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boq logo

BOQ Commercial

BOQ has policies tailored to support small business clients, and we have made a number of changes to make it even more attractive for your clients. BOQ Specialist is a full-service bank, with over 30 years' experience, offering a broad range of personal and business products and services for medical, dental and veterinary professionals. Some examples include Accounting policy, BOQ Specialist offers tailored products specifically for accountants. Accounting case study: Existing accountant at a 6-partner firm was offered a 10% stake in the business with a purchase price of $950,000. Clients owned a residential property mortgaged to 90% with no equity available. The existing lender was able to assist but required the business to guarantee the debt, and the PPR tied in as secondary security. BOQ was able to lend the client $950,000 secured against his personal guarantee and the value of shares to be purchased, excluding the accounting practice and residential property. Simultaneously, BOQ refinanced the clients PPR up to 90% (no LMI).

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interest rates on a see saw

Sharp 2 year fixed rates

The majority of buyers remain reluctant to move off their variable loans to a fix, given the likelihood of the RBA slashing the cash rate at least once again before the year comes to a close. While more immediate data is not available, barely 2% of new loan commitments in August 2024 were fixes, according to Australian Bureau of Statistics data. People think there are more rate cuts to come, so the temptation is to wait & see what happens.

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