Recently I spoke to some customer who received an email from their bank. Or at least they thought it was from their bank. The email asked them to login to their account, to confirm their address. There was a link on the email, and the customers clicked that link, and logged on to what they thought was their bank.
Upon logging on, the website said that there was a problem with the bank, and try to login later. The customers thought nothing of it, and went away thinking they will try to log on the their internet banking later on that night.
The customers went back on logged on later to their internet banking a couple of days later. This time they typed their banks web address straight into their browser, not clicking the link that was supplied in the email. Once they had logged on, they realised that a fair sum of money had been transferred out their bank account and their linked credit card account. They hadn’t transferred the money, or used their credit card, and didn’t recognize the accounts where their money had been spent.
Upon ringing the bank, they had realised that someone else had gone and logged into their internet banking, then transferred some money out of their accounts on a few occasions. After the bank asked some questions, the bank had advised the customers, that if they do send bank emails, they never have a web address in the emails that they send. The customers let the bank know that the website looked exactly like the banks website, and they thought they were logging on to their internet banking.
What happened was the email the customers opened, had a link to a website that looked exactly like the banks website, even though it wasn’t. The website was designed to get the customers login details, which the customers did input. Once the customers login was input, and the login button clicked, the website sent those details to whoever made the website. Once these people (I will call them criminals) had the login details, they were free to access the customer’s bank account anytime, which they did.
In this particular case, the bank, after some investigation, refunded the customers the money that was stolen from them luckily.
The reason why I am telling this story is to remind everyone to be very careful if you get an email from your bank. It might not be your bank, and the website it leads too may look exactly like your bank or lenders website. Generally speaking if banks do send emails, they don’t have web addresses in them. This is a security measure from the bank, as they are aware that fraudulent emails are on the increase. It is good advice to always type in the banks web address into your browser, and once the bank website is displayed, check the URL (web address) to make sure it is your bank or lender that you have reached, before you input your login details.
If you have any questions or comments, please leave below. If you would like more personal mortgage information, or to contact a mortgage broker, please contact us anytime.
Tuesday, April 19, 2011
Wednesday, April 13, 2011
Sunday, April 10, 2011
My Home Loan Was Declined. Will Another Bank Look At My Application?
This is a question I have received via email, which today will remain anonymous. My bank declined my mortgage application today. I would still like to purchase the property I have put on offer on. Can I apply for another home loan with another bank right now? Well the short answer to this question is yes you can, lets look at what we would need to know.
We would need to know why your current bank or lender declined your home loan application, to help decide where or if we can lodge a new home loan application. There could be many reasons why the loan was refused. It could be that your particular bank or lender didn’t count your overtime, they didn’t like the property that you have brought, you may not have been in your job long enough, there may have been a credit default on your credit file, the reasons are endless.
Once we know the reason why your home loan application was declined, we can look at different options with other lenders. All banks and lenders have different credit policies, so just because one bank doesn’t accept your home loan application, it doesn’t mean that another bank or lender won’t. This is where an experienced mortgage broker can help, as the mortgage broker will have knowledge of the different credit policies and lending criteria that each lender has, and may be able to find a suitable loan for you, even if one bank has already said no to your application.
With the particular example above, the bank wouldn’t accept the customer’s overtime, which was a necessary part of his job. The customer’s application was submitted to another bank, whose credit policy allowed overtime, and the customers home loan was approved. He was able to purchase the property he had put an offer on, and very happy that he could.
If your current bank or lender has declined your home loan application, it might be a good time to consider contacting an experienced mortgage broker to go through other mortgage options. If you have put an offer on a property, there still might be enough time with the finance clause on the real estate contract, to apply for another home loan. A finance extension too, might be able to be organised, if your real estate finance contract clause is nearing its end.
Monday, April 4, 2011
The RBA Keeps Interest Rates On Hold.
Some welcome relief for mortgage holders today, with the Reserve Bank Of Australia keeping the official cash rate on hold at 4.75%. In his statement, the Reserve Bank governor noted that inflation is still around the 2 to 3% target, and employment growth has steadied, with unemployment remaining around 5%. The RBA expects inflation to remain in the 2 to 3% for the near future.
This, combined with some of the recent natural disasters, may help to keep interest rates on hold for the short term. Lets hope so. The RBA Governor, Glenn Stevens did note however, that there has been strengthening growth in wages, and our terms of trade are at the highest levels since the 1950s. This may increase pressure for an interest rate adjustment, if inflation should start to rise.
The Statement by the RBA -
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan will have a noticeable effect on Japanese production in the near term, although the impact on the broader Asian region is expected to be limited. Commodity prices, including oil prices, have risen over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative.
Australia's terms of trade are at their highest level since the early 1950s and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income. The natural disasters over the summer have reduced output and the resumption of coal production in flooded mines is taking longer than initially expected. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way.
Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend. Business balance sheets generally are being strengthened, and the run‑up in household leverage has abated.
Growth in employment has moderated over recent months and the unemployment rate has held steady at 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
Inflation is consistent with the medium-term objective of monetary policy, having declined significantly from its peak in 2008. These moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices. Production losses due to weather are temporarily raising prices for some agricultural produce, which will boost the March quarter CPI, but these prices should fall back later in the year. Overall, looking through these temporary effects, the Bank expects that inflation over the year ahead will continue to be consistent with the 2–3 per cent target.
At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate in view of the general macroeconomic outlook.
If you have any questions or comments, please leave below. If you would like to contact a mortgage broker, for more personal financial information, please contact us anytime.
Sunday, April 3, 2011
What Is An Introductory Rate Home Loan?
Today we will look at what an introductory rate home loan is. An introductory home loan is generally a home loan with a discounted interest rate for a period of time. After the introductory period the home loan will usually revert to a higher interest rate.
Introductory rate home loans are generally will have variable interest rates. There are some good introductory rate home loans available today. Some are better than others, it really depends on the interest rate offered, how long the introductory interest rate period lasts for, any fees associated with the home loan (like application or monthly fees) and what the interest rate reverts too after the introductory period has finished.
If you are considering an introductory rate mortgage, it is wise to take into account the fees associated with the home loan, and consider what your repayments might be after the introductory interest rate period has finished. The interest rates on introductory rate home loans after the initial cheaper period can be more expensive than a discounted basic home loan, so even though at the start you may think you have a good interest rate, it may change after the introductory rate period has finished.
With some banks or lenders you may be able to switch the introductory rate home loan to another mortgage after the introductory rate period has finished. There may be a switch fee involved, which can cost from $300 or more. Some banks or lenders though, with introductory rate home loans, may not enable switching of the home loan, or the fee could be quite high if you want to change to a different mortgage after the introductory rate period has finished.
It is important to understand all the costs involved with your home loan. As with some introductory home loans, it may appear cheaper, based on the starting interest rate, but in fact, it may be more expensive in the end, when you consider all the costs involved.
A good mortgage broker will be able to help you understand the costs with introductory rate home loans, and compare them to other home loans, to see which are more suitable to your needs and are more cost effective.
If you have any questions or comments, please leave below. If you would like to speak to a mortgage broker, please contact us anytime.
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