Don't Deal With Cowboys

The Mortgage Industry Association of Australia (MIAA) has warned home loan borrowers to check the bona fides of any mortgage professional they deal with. The MIAA says borrowers at any stage of the mortgage process need to be more discerning with the decisions they make and the mortgage professional they use.

MIAA chief executive Phil Naylor says there have been instances where mortgage brokers and lenders claim to be an MIAA member, when in fact they are not. Dealing with a broker who does not have their best interests at heart or is not adequately qualified can have a devastating impact on a borrower’s finances, he says. “People should check our website or call their nearest MIAA state office for clarification of any mortgage professional’s membership status,” Naylor said.

Dealing with a broker who is a member of the MIAA offers borrowers a level of consumer protection. Members have some level of industry training, are committed to a code of practice and are subject to an internal disciplinary tribunal which has the power to censure, suspend and expel members on the basis of misconduct. Borrowers who do use an MIAA member also have access to the Mortgage Industry Ombudsman Service as a last resort.

All brokers who work with Financial Gain Australia are members of the MIAA

Australia’s rapidly growing population of millionaires hold a staggering 40% of their fortunes in property, according to new research from Merrill Lynch and CapGemini, which shows wealth in the Asia Pacific region has now rebounded to pre-GFC levels.

In fact the Herald Sun reported that there are a RECORD number of everyday Australians joining the millionaires’ club, up to 15 new millionaires a day and mostly on the back of Real Estate.

The Herald Sun reported that Capital city property prices rose upwards of 20 per cent in the 12 months to April 2009, elevating many Australians to millionaire status on their bricks and mortar alone.

Australia’s wealthy appear to be using property as a sort of replacement for fixed income assets such as bonds, which are standard part of the portfolios of the wealthy in the US and Europe but are harder to access in Australia.

THE Reserve Bank’s decision to sit on its hands for another month does not change the prospect that interest rates will soon head higher.

Melbourne Cup day on November 2 may well be the first increase, followed by several more increases next year.

In his statement after Tuesday’s monthly board meeting, Glenn Stevens stuck to his central scenario.

The Chinese growth story remains on track even amid deepening pessimism in the US and as Europe’s sovereign debt and banking crisis spreads to Ireland.

That means the already “very high” prices for our iron ore and coal exports will boost national income “very substantially” as they flow into mining company profits, dividends, taxes and wages.

This also will underpin the huge wave of mining and energy project construction.

In a nutshell this will mean higher interest rates for those of us with mortgages and the probability of a stronger dollar.

Australia’s housing industry lifted further in the June quarter, with dwelling commencements data released this week showing a rise of almost fifty per cent on last year’s activity.

Figures from the Australian Bureau of Statistics shows that the total number of dwelling units commenced in the June quarter, seasonally adjusted, rose 0.8% following a rise of 9.1% in the March quarter. This figure is 43.8 per cent higher than in the June quarter 2009.

With Christmas just around the corner the friendly staff here at Financial Gain Australia thought it would be nice to offer some Christmas gift ideas.

Of course with all that time on your hands the most obvious would be a book of some description especially finance related.

Westpac 6.76%

ANZ 6.66%

St George 6.86%

CBA 6.61%

mba – Adelaide Bank
(0.80% upfront and 0.25% trail) 6.24%

* Rates sourced from Cannex 9/12/2009

We will be working up until the 23rd of December and closed on the 24th.

Back at work on the 4th of January.

Have a great Christmas and Happy New Year

2 Bedroom apartment. renting for $400 per week , Purchase Price 250k

Macquarie bank is lending again however you need to have at least a 20% deposit.

After another week on the balmy Gold Coast Financial Gain’s NZ Director heads back over seas courtesy of Emirates…