Money Matters with Melody September 2018 newsletter

September 2018 newsletter


Compared to the past couple of years, we are heading into a very different Spring property sale season and it may be a good time to grab a bargain.

According to Core Logic, national dwelling values were down for the eleventh consecutive month suggesting spring selling conditions may deliver vendors a challenge amidst rising advertised stock levels, tight credit and indications that mortgage rates are tracking higher.


Not all markets are the same with the three-month trend showing Melbourne is now Australia’s weakest capital city housing market, with dwelling values falling 2.0% over the three months ending August.  Perth isn’t far behind, with values down 1.9% over the past three months and Sydney values falling 1.2%.

Adelaide rose to the top of the quarterly performance stakes over the three months to the end of August, taking over from Hobart. Adelaide dwelling values were half a percent higher over the past three months, with quarterly gains also recorded in Canberra (+0.4%) as well as Hobart and Brisbane, both up +0.1%.

Not sure of your property value!
Remember to ask me for your free property report


To find out more about your finance options, call me today 0409 271 975.
Kind regards,

Melody Torrens
Mortgage & Finance Broker
Money Matters with Melody


  • Limited time special offer A $1,250 bonus is available for new to bank clients with an eligible Home Loan Banking Bundle.
  • 2 Year Fixed rate at 3.69%*
  • Split loan with a variable portion available
  • No annual fee on selected credit cards
  • Loan size $250,000 up to $750,000.
  • Available to both PAYG and Self Employed clients
  • Non -genuine savings up to 90% incl LMI
  • Permanent employees still on probation are considered
  • Maternity leave - back to work income included.

Speak to me today for further information about this and other opportunities on offer!
*(Comparison rate 4.86%)


Click here to get in touch today


Offset accounts and redraw facilities are both common home loan features.
They provide similar benefits but operate differently. Both options allow you to use any extra
income or savings to reduce the balance of your loan, thereby reducing your interest repayments.
An offset account is just like an everyday bank account, except it is linked to your home loan. Your
salary can be deposited into the account and direct debits can be established to pay your regular
accounts. Your offset account will come with a debit card which you can use to make everyday
The major benefit of using an offset account is the balance will offset daily against the home loan
principal, reducing the amount of interest you pay. For instance, if a borrower has a $400,000 home
loan and $50,000 in a 100% offset account, they will be charged interest on the combined balance of
In choosing an offset account it is important to ensure the lender is offering a 100% offset as some
only offer partial offsets which limits the interest reduction. AN offset account is generally
considered as a premium feature and may come with a monthly or annual fee.
A redraw facility allows borrowers to make additional deposits in their mortgage accounts. Those
deposits are offset against the balance of the home loan, reducing monthly interest calculations.
Money in a redraw can with withdrawn but is usually not available for immediate access as the
money needs to transfer from the mortgage to an everyday account.
There may be a minimum redraw amount and there may be a limit on how many redraws you can
make in a year. Most redraw facilities are free however there are some which charge a fee for
The advantage of a redraw facility is that the money is going into the home loan account and
reduces the interest cost on the home loan, while providing day-to-day access to the cash for
transaction. It is better suited top people whose priority is to focus on paying off their mortgages.
Offset account
 Reduces the interest you pay and reduces the life of your loan
 Redraw on the amount in the offset account without incurring a fee
 A fee or higher mortgage interest rate may be charged for having the offset facility included
in your home loan package
 May not be effective for those who are not good at managing a budget.
 Unlikely to be available on a fixed rate loan.
Redraw facility
 Reduces the interest you pay and reduces the life of your loan
 Can be available with fixed rate loans
 A good solution for those who do not wish to have immediate access to their savings.
 May be charged a fee for dipping into extra repayments you’ve made
 Less flexible, as you may have a minimum on how much you can redraw or need to wait for
money to transfer between the mortgage and everyday bank account.
For borrowers to get value out of an offset that charges a fee, they would need to evaluate how
much they should hold in their offset account to compensate for any fees and determine whether it
is viable.
Your Mortgage & Finance Brokers recommendation is a great place to start when choosing an offset
or redraw facility and needs to be considered in conjunction with interest rates, fees and an existing
financial relationship

So what does this mean for you?
When the major banks hike their variable rates, other lenders tend to follow suit. It means that no
matter which lender you're with, there are no guarantees that you won’t face higher home loan
There is a solution
Here are three key facts you need to know.
1. You don’t have to just wear a higher rate.
2. The home loan market is very competitive and many lenders are happy to offer a good deal
to entice new customers.
3. Loyalty to a particular lender won't serve you. When big banks lift their home loan rates
independent of the RBA, they work on the assumption that home owners will just accept
higher repayments rather than take action to get a better deal1
Let's work together to help you beat rising home loan rates!
Act now
Now's the time to give us a call. We can help you:
 understand how much your monthly repayments have risen by
 check if your home loan is still competitive
 work out if you could secure a better deal to meet your objectives
 put strategies in place to help you manage a higher home loan rate
Not all lenders have increased rates. Don't wait to find out that your lender has jumped on the
bandwagon of higher rates. Give us a call today.
The sooner you act, the sooner you can have a strategy in place to chart a course through higher
interest rates.
The content of this newsletter is written expressly for education purposes and is based on the opinions of the authors. The authors and
agents for the authors are unable to accept any liability or responsibility whatsoever to any error or omission or any loss or damage of any
kind sustained by a person or entity arising from the use of this information. It is recommended that you seek professional advice relevant
to your specific circumstances before acting on the information based in this document.

A cool-season favourite, peas are great whether they are eaten raw or cooked. Add these tasty and versatile fritters to your as the ultimate winter treat.
View Recipe