Mortgage Business
Low rates don’t automatically boost house prices: PIPA By Sarah Simpkins 28 July 2021
Analysis of cash rate changes has found property price growth is less dependent on low interest rates than commonly believed, according to a property industry body.
Peter Koulizos, chair of the Property Investment Professionals of Australia (PIPA), has completed an analysis of the Australian Bureau of Statistics’ established house price indexes for three periods over the past two decades, when interest rates were stable.
He deemed that low interest rates have not automatically translated to significant rises in house prices.
From September 2016 to September 2019, the cash rate was merely 1.5 per cent and the weighted average across eight capital cities saw the established house price index increase by 1.24 per cent over t
Mortgage Business
Refinances at record monthly high in NSW, Qld By Malavika Santhebennur 26 July 2021
Refinancing has soared to near record highs across the eastern states amid low-interest rates and prospects of rate rises, according to PEXA research.
Digital property settlements platform Property Exchange Australia’s (PEXA) Refinance Insights for the 2021 financial year (FY2021) has revealed that over 11,000 refinances in NSW and 5,000 refinances in Queensland were completed in June 2021.
These volumes are the highest observed in the past two years, according to PEXA.
In Victoria, nearly 11,500 refinances were completed in June 2021, equalling its previous record in June 2020.
This is significant because the high refinance levels experienced in June 2020 were likely driven by the double interest rate cut in March 2020 trig
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Mortgage Business
ABA launches Banking Code review By Sarah Simpkins 07 July 2021
The Australian Banking Association has commissioned an independent review of the Banking Code of Practice, with an industry consultation calling for submissions.
As put by Anna Bligh, chief executive of the Australian Banking Association (ABA), the Banking Code of Practice is a “rule book… that sets out clear rights for customers” and is enforceable by law.
The code, maintained by the ABA, is reviewed at least once every three years. It has been in place since 1993.
But the code is being assessed for any necessary updates, with a review being undertaken by former Treasury deputy secretary Mike Callaghan, who also chaired the government’s recent retirement income review.