Due to high commodity prices, private investments are increasing especially in the resources sector and inflation is within the two to three percent target range. Market competition, better wages and the strong Australian dollar have all contributed to the cash rate non-movement. The Reserve Bank last adjusted the official cash rate in November 2010 from 4.5 percent to 4.75 percent.

To help you decide whether or not to refinance, you must ask yourself if your current loan deal is still the best for you. Better loan deals will come out from time to time and it could be more suitable for your needs and your lifestyle. Also, newer loan deals do not only offer better rates but better features such as redraw as well. Therefore, you must carefully weigh all options first before making a choice.

You must also ask yourself if it is worth refinancing. When looking at the advantages that refinancing can give financially, you must not focus on the monthly repayments only. You must look at any cost of refinancing. Also, the amount of money that you need will determine if you need to refinance to apply for a personal loan. If you need only a small amount, you can apply for a personal loan for repayments are lower. Otherwise, refinancing would be the wiser option.

When you refinance, you must pay an exit fee for your current home loan and this could be as much as several thousand dollars. Calculate how long it will take before the difference between the repayments of your current loan and the repayments of your new loan can compensate the exit fee. It might even take you years before you can break even. You must also include the loan’s features in knowing the total cost.

If you have several debts like credit card debts or other loans, refinancing is worth considering. If those debts are attracting a high interest rate, debt consolidation through refinancing can decrease the interest rates of your home loan. It can also slash your expenses to get your budget under control.

Like your home loan, the costs of refinancing will be paid over a long period of time and it will reflect on the overall interest amount that you pay. It may offer financial relief in the short term but it can lead you to paying more in the long run. Therefore, refinancing is a very serious decision.

The banking reforms were introduced by Treasurer Wayne Swan and they were geared to make the non-banking sector more competitive against the major Australian banks which can keep mortgage rates low. The reforms include the cancellation on mortgage exit fees and the monitoring of rate adjustments by the big four banks.

Competition can bring prices lower and the market’s liquidity can improve. On the other hand, Swan is happy about the support for the reforms from the community especially the smaller lenders and non-banking lenders. However, the situation of the global economy can cancel out the reforms that will be made.

If you are looking for a great home loan in the Western Australian market contact AFE home loans today, a home loan by West Australian’s for West Australians

It is hard to gauge the direction of house prices for the next 12 months. Meanwhile, the vacancy for rental properties decreased to 3.5 percent and it can go as low as 2.5 percent by March this year.

With lower vacancies, rental fees main increase and vacant rental properties will be highly contested. High rental prices can also make households decide to buy their own home at bargain prices. Data from the Australian Bureau of Statistics states that the house price index for the last quarter of 2010 went down to 3.2 percent.

This rate is two percent lower than the rate during the same quarter in 2009 and Perth is the only state capital that went down. The decline of the Perth house price index is a nine-year low. This also signifies that the index went down for the third consecutive quarter as results from the third quarter of 2010 showed a decline of 1.8 percent.

The decline of the index is pointed to the decrease in prices of houses that are worth at least $1 million. Currently, the ABS shows that the index of the Perth property market is at 198 which is a 15-month low. The median property price in Perth went down by 0.9 percent in November 2010 and 2.3 percent in entire 2010 to bring the price at $465,000.

Though the appetite of Western Australian households for big properties are still there, they must be designed in such a way they can be renovated into two or three separate homes in the future. If you are looking for a home in Western Australia Contact AFE Home Loans, home loans by West Australians for West Australians.

House prices and unit prices went down by 1.5 percent and 5.6 percent respectively throughout the year. In December, house prices and unit prices in Perth went down by 0.6 percent and 2.3 percent respectively. By the end of 2010, the median house price in Perth is $487,000 while the median unit price is $400,000.

In contrast, the Australian median house price went up by 0.2 percent in December to $475,000. This translates to an increase of 0.4 percent for the fourth quarter of last year and an increase of 4.7 percent annually. Other than Perth, Brisbane is the only Australian state capital which had falling median house prices. Brisbane’s median price for 2010 is one percent lower than its 2009 rate.

With more interest rate hikes predicted they will take their toll on house prices. However, the futures market is predicting a full rate hike by March 2012. So now may be the right time to invest in a property searching for the right home loan as well as the right property is increasingly important.

Experts predict that the Reserve Bank of Australia board will increase the interest rates more than once this year and it may cause median house prices to drop further. In a glimmer of hope, the rental yield for houses and units in Perth remain unchanged from November at 4 percent and 4.3 percent respectively. However, those rates are down by 0.2 percent and 0.1 percentage points respectively from their rates in December 2009.

However, the rate is 14 percent lower than the rates from September to November 2009 and experts figure out that the discrepancy will widen this year. Forecasts show that new housing construction will drop by 20 percent. From June to October 2010, new home sales have either risen or fallen while November’s new home sales of 1060 units is just 16 better than October’s rate.

If you are looking for a new home or investment property contact AFE we can help you find a great home loan, our home loans are by West Australians for West Australian’s.

In the current set-up, the lender can issue home loans that are as much as ten times the annual rental income of the property. Debt can be lessened if the limit for home loans is lessened as well. Property buyers would be on equal footing as the only way to beat other buyers

Australian property prices are increasing at present the main reason for it being borrower’s willingness to take on more debt to beat other property buyers.

The key therefore is to be careful when looking for a home loan to ensure that you can make repayments even with eventual rate rises expected to come in the coming months. Speak to an AFE home loans consultant today, we can assist you will a home loan to suit your needs.

The decrease in new home building activity is due to the building of social housing and apartment units. However, the building activity for new unit housing in the third quarter of 2010 is at 1002 which is about 800 units lower than the figure recorded for the second quarter of the year according to the Australian Bureau of Statistics.

New houses in Western Australia that were constructed starting the third quarter of the year is a 4427 which is about 300 units lower than the record during the second quarter. Also, the volume of the third quarter of 2010 is the second lowest figure since the 3771 units built during the second quarter of 2009.

The figures for the third quarter of 2010 is lower than expected due to the policy of the federal government on social housing, home building in 2011 will remain soft.

If you are looking at a new or old property in Western Australia and are looking for the right loan enquire with AFE home loans, home loans for West Australians by West Australians.

It is expected that the demand for fixed home loan rates will increase further. In January 2010, fixed home loan demand was at 0.88 percent. The demand has significantly increased by November 2010 at 10.9 percent. Though fixed home loan rates have increased, one in nine new borrowers wish like to fix a portion or their entire loan.

Borrowers value peace of mind when it comes to repayments. Fixed rate home loans usually last for three years and their repayments are not affected by either upward or downward interest rate adjustments.

There has also been an increased influx of inquiries from homeowners that are seeking for smaller properties to reduce their home loan borrowers are feeling the effects of the latest RBA official cash rate increase.

Though the RBA did not adjust the 4.75 percent official cash rate in December, there have been predictions that the rate can go as high as much as six percent by the end of 2011 and more borrowers are gearing for the future with fixed rate home loans.

Prior to this, only 821 first home buyer grants were paid in April 2007. The first home buyer grants for October 2010 marks that ninth time in ten years that first home buyer grant volume fell below 1000.

From September 2010 to October 2010, first home buyer grants went down by 7.6 percent. October’s rate is also 60 percent lower than the 2419 first home grants in June 2009 which was the height of the housing stimulus for home buyers. During that time, $14,000 was given to first home buyers purchasing existing homes while those who were to have their first home constructed were given $21,000.

From the total number of grants for October, 293 are for new dwellings and this marks a two-year low. For all the first home applications for October, the median property value in Perth was $417,500 while the price in other areas in Western Australia was approximately $333,000. Compared to September’s rates, these median prices are down by 1.2 percent and 3.2 percent respectively.

Though the median value of Western Australia suburb properties are still high, Perth’s October median price was at a seven-month low. First home buyers comprised of almost one-quarter of the property purchasers in the state despite the reduction of the first home buyer grant and the weakening status of the housing market in Western Australia.

For the first nine months of 2010, the suburbs of Canning Vale, Baldivis and Banksia Grove have the most number of first home owner grants paid with 114, 113 and 78 respectively. Not far behind are Ellenbrook, Butler and Bertram with 77, 71 and 65 respectively. At the bottom of the list are Success, Innaloo and Perth which all have 38 first home buyer grant approvals.