Upon the announcement of the increase of the RBA official cash rate, many of the major banks increased their rates by at least 0.35 percent. With the Australian dollar equalling the US dollar, the economic improvement of Australia has its repercussions as well.

The Reserve Bank increased the official cash rate due to the impending increase of the inflation rate due to higher demand for goods. However, the impending decision was met by criticism by businesses, consumer groups and social lobby groups.

With the unexpected rate rise, economists claim that the RBA is not aware that a lot of people are having a hard time to cope with more expensive costs of living and yet they would take the burden of a surging economy. Due to the rate increase, mortgage holders in the eastern part of Australia who do not directly benefit from the income of the mining sector have to pay the additional mortgage amount too.

Many have said that the mining industry must take the brunt of the blame and that the RBA has taken a gamble by increasing the official cash rate. While most of the industrialised nations are still trying to bounce back from the global financial crisis, Australia is out of the struggle.

If this rate rise has affected you and your home loan contact AFE, your gateway to a better WA home loan.

The RBA is confident that the economy will surge next year due to an increase in trade activity which brings additional income to the country without being highly watchful of inflation activity. RBA Governor Glenn Stevens was not surprised with the 2.4 percent inflation rate for the third quarter of 2010 but he is aware that the pressure for an upward swing of inflation is still there.

With the Asian economy growing and the North Atlantic economy still unstable, Stevens said that the Australian economy might incur expansionary shock due to high trade activity and modest surplus. Inflation is set to rise over the medium term and the balance of risks has shifted to a period of modest monetary tightening.

The Reserve Bank of Australia thinks that the official cash rate hike is necessary with more rate hikes expected next year due to the reduction of the unemployment as well as the general outlook of the economy continuing to improve.

However, the pressure is with Canberra for Stevens mentioned that the impact of public spending has decreased. Interest rates are still within decade-long averages and this serves as a warning that the economy might return to its 2006 and 2007 status.

The exclusive suburb of Dalkeith has the highest sales with $239 million, whilst four of the top five spots of the best-selling suburbs are Western Perth suburbs. Seventy-four units have been sold in Dalkeith earning $239.6 million. The median price in this suburb is a $2.7 million and the total value of properties sold increased by 0.7 percent.

The second best-selling suburb is Canning Vale which sold 413 properties totalling $234.2 million. With a median property price of $550,000, Canning Vale posted an 8.9 percent growth.

Whilst many suburbs in Perth have experienced an increase in property value the median land prices in Perth decreased by 7.5 percent during the second quarter of 2010. Although the median property prices in Perth decreased, the median price of property is $227,000 which is about two percent higher than its rate last year. Translated the median price of a property is worth an average of $470 per square metre.

If you are looking for a property in Western Australia contact AFE Home Loans we can help you get a home loan that suits you.

As the name suggests the fixed home loan gives you a fixed payment rate no matter what happens with the market interest rate though it is usually relatively higher than variable rate loans. Fixed rate home loans protect you from extreme interest rate hikes that will affect those with a variable rate loan.

A fixed home loan is not open to flexible repayments. A borrower can potentially be penalised if extra repayments are made, and there can also be high corresponding exit fees. On the plus side of fixed home loans though, because repayments remain the same throughout the term of your loan, budgeting is made easier.

On the other hand, the variable home loan allows a borrower to pay in varied amounts for the deal’s duration and can particularly take advantage of extra loan repayments when interest rates are low.  More borrowers opt for this option since market conditions can be somewhat volatile. The variable home loan interest rate is heavily dependent on the market interest rate so repayments can either be high or low.

Variable home loans also have more features like the redraw facility. It also allows you to make extra repayments anytime you want to and there might not be any exit fees if you switch from one variable loan to another.

You can also have a loan with fixed and variable characteristics with the split loan. The split loan allows you to pay part of your loan off with a variable rate and the remainder with a fixed rate making the most of both fixed and variable rate home loan types.

However, this type of loan is vulnerable to both disadvantages that a fixed and a flexible home loan might bring. If you are looking for a new loan and need assistance deciding between a fixed, variable and split home loan rates contact New Loan.

First, you must consider the location of your property. This can be based on travel time to work and its proximity to schools, shopping areas and public places like sporting facilities and parks. You must also check how often and how much public transportation there is in the area.

Then, make a list of what you like about where you are currently living. List the things that you like and you do not like in the area where you are living right now. You must also make a list in order of priority of features you would like in your next property for example the number of bedrooms, the size of the backyard, whether the property has a garage and the view.

After making a list, you must find out the prices of properties that will fall under your preference, what properties you can afford and what you can afford to borrow. Be observant of the trends in the market and the statistics of sales in the suburb. If you are ready to buy the property, make sure that you can afford it.

When you have determined the type of property and how much you can afford to spend it is also then important to that your home loan is the right one for you, contact AFE home loans we can help you secure the right home loan for you.