Illegal bank fees?

A class action brought by 34000 customers of ANZ has been given the green light to proceed to further hearings. It's only a partial win by these customers however gives comfort to customers of other banks. If the courts rule that ANZ's fees for late payments, amongst others, are indeed illegal, we can bet that the other banks will scramble to refund customers before a similar class action is brought against them.

Your bank giving YOU money: priceless!

We're not alone...

and we're not talking about ET.

We've thought for a while that interest rates in Oz had gone as high as they were likely to in this cycle. We figured there'd be a rate cut in November and would not be surprised to see another one or two by Easter. It seems some economists are coming around to the same way of thinking.

Westpac and JPMorgan have predicted more rate cuts than this. Of course, there will be PR departments for both intent on gaining exposure which relies on dramatic headlines. We're more pragmatic.

It's always nice to have others agree with you.

I'm now predicting a Sydney Swans premiership in 2012. Anyone care to join in?

Interest rates plummet

Someone can see the writing on the wall. Actually, it seems everyone can. Fixed rates continue to fall with the latest offering 5.99% fixed for 2 or 3 years. What does that say about variable rate expectations? As always, talk to your broker before fixing and remember you don't have to fix your whole loan.

And a new bank rides into town from 1st Dec - Heritage Bank. Until now a building society based in Toowoomba, Heritage is the latest entity to be given a banking licence. Now if they would only open some branches in Victoria......

Hellenic balancing acts and your mortgage

5 years ago, who would have thought that the outcome of a referendum in Greece could have a big impact on your home loan interest rate? It's quite likely that this will be the case. If Greece decides to go it alone and opt out of the euro, the ramifications could well be felt here.

Which way would rates go? Good question - money markets may tighten up again and funding costs increase, pushing up rates OR the global economy could take another hit and the Reserve Bank may decide that, as inflation seems to be under control in Australia, reducing interest rates will stimulate domestic spending. We're leaning towards the latter option as Christmas approaches and retailers are still doing it tough. Job losses aren't the ideal way to start a new year, and cutting interest rates is one sure way to keep shop assistants in their jobs.

What do you think?

Sell, sell, sell!

Have you been offered a home loan with your cheque deposit lately? No? Shouldn't be long now then.....Pre-Christmas sales push linked to staff bonuses

Great offer for property investors

From now until 9th October 2011, a complete property depreciation report from Deppro, the depreciation specialists, can be purchased for $330 (incl GST). That's $270 off!

We've used Deppro ourselves so are happy to be able to provide this great offer to our clients, friends and followers - and anyone else you'd care to share it with.

Getting a depreciation schedule prepared on your investment property can make a big difference to the cost of your investment. Have a chat to your accountant. I bet he or she would recommend a report.

If you would like to know more about the offer, or about Deppro, get in touch with us now and we'll get the information to you straight away.

To take advantage of this offer right now click here.

The "Blacklist" makes it's public debut.

Today in Melbourne's The Age newspaper the lender's blacklist made it's official media debut! The list is compiled by all major lenders and has apartment projects that the lenders have concerns about. What does this mean for you; it confirms that in ALL circumstances you should have a "Subject to Finance" clause inserted into any Contract of Sale that you may sign. You can read all the details by clicking here.

Also spotted (well, it would have been hard to miss) was a full page ad by CBA advertising that it would match or beat any other MAJOR lenders' interest rate. In a spring marketing gimmick, Commonwealth Bank said that it "guaranteed" it would beat any "currently advertised rate from ANZ, NAB or Westpac".

The pledge excludes "subsidiaries", which rules out a lot of Westpac's offerings through St George, BankSA, Bank of Melbourne, RAMS (and many other lenders) offering more competitive packages than the big 4. It also speaks down to consumers thinking they are unable to grasp the reality that is "not all about rate" - service, extras and convenience play a much bigger role now than ever before.

I can't help but wonder how the CBA can do this. Last year on Melbourne Cup Day they went above the RBA increase stating that "cost of funds" was the reason and, again only last month at the AGM, Mr Norris CEO stated that the "cost of funds" would keep rates up and that a rise outside of an RBA increase could be on the cards. I wonder what's happened? Could it be that the decreasing size of their mortgage portfolio has them scouting for business at any cost?

If you believed that banks didn't want your business, think again. They are at war with each other in mortgage land right now and of course, when at war, the truth is usually the first casualty.