Borrowers’ preference for fixed rate home loans is continuing at an unrelenting pace regardless of recent cash rate cuts, national loan approval data from Mortgage Choice has revealed.

Fixed rate loans accounted for 24% of all new home loan approvals during December 2011, up from 21% in November and well above the 12-month average of 15%. Demand for this loan type has risen for seven consecutive months, increasing 13 percentage points since May 2011.

Company spokesperson Belinda Williamson said, “Consecutive cash rate cuts in November and December 2011 have not swayed Australian borrowers’ desire for fixed rate loans.”

“It is possible borrowers’ need for certainty around their home loan repayments, coupled with the affordability of fixed rate loans are the driving forces behind demand for this loan type.

“During December fixed rates were significantly lower than variable rates, in some cases the difference was one percentage point or more.

“Our loan data shows fixed rates are now more in demand than they have been in over three and a half years at the expense of variable rates, which have lost popularity among new borrowers.

“Customer demand for variable rate loans fell from 79% to 76%, well down on the 12-month average of 85%. The most popular variable rate home loan with new borrowers, ongoing discount rate loans, slipped from 44% to 41%, also well below the 12-month average of 35%.”

Basic variable loan demand rose marginally to 15% of all approvals in December, up from 14% in November while standard variable loan demand fell slightly to 16% from 17%. Interest in line of credit loans dropped to 3% from 4% and the uptake of introductory rate loans was steady at 1%.

For more information visit: www.mortgagechoice.com.au

Even more water is needed for regular top-ups. All up, a home with a pool uses 10 per cent more water than a home without a pool.

But surprisingly, water isn’t the only conservation concern – swimming pools are energy intensive too. According to the NSW Government, running a pool pump will increase your household energy use (and your carbon footprint) by 17 per cent and that’s not including energy needed for pool heating.

So does this mean we should fill in our swimming pools? Has the backyard pool become an extravagant luxury this planet can no longer afford? While we can argue back and forth on the pros and cons of a swimming pool there are a number of ways to cut down on pool energy and water use.

Slash water wastage

An uncovered pool can lose up to one-and-a-half times its total volume in one year through evaporation. In Sydney and Brisbane, rainfall can come close to replacing half the evaporation, assuming that it falls at the right time and in the right amounts so the pool doesn’t overflow. Yet in a dry city like Perth, rain compensates for only 10 per cent of the water lost.

There is one really simple way to save water – invest in a pool cover and reduce evaporation by up to 97 percent. For an outlay of $500 – $1,500 you can purchase a cover that will also prevent heat loss at night, thereby extending the swimming season and saving on heating costs.

As an added bonus, covers also keep leaves and dirt out of the pool and reduce the evaporation of the chemicals used to keep the pool clean.

The type of filter you use can also make a big difference to water efficiency. Sand filters can waste up to 15,000 litres of water each year because they require backwashing to clean the filter. Cartridge filters, on the other hand, can be cleaned with a quick rinse from the hose, saving water and reducing the amount of pool chemicals dumped into the sewer.

Finally, make sure you have no leaks – one drip per second adds up to 7,000 wasted litres a year.

Top up with rainwater

No matter how vigilant you are at preventing water loss, the pool will need an occasional top-up. A simple idea is to attach an inexpensive rainwater diverter to a downpipe to direct water into your pool. Some models on the market can also prevent the first flush of leaves entering your pool.

Just bear in mind that during a large downpour you may need to divert the flow back to the stormwater to ensure the pool doesn’t overflow. A better but more expensive solution is to install a rainwater tank so you can store water for when you need it.

Create a zero-emission pool

It’s an expensive exercise to operate your pool pump continuously – just running it for eight hours a day will cost about $650 per year and emit four tonnes of greenhouse gas emissions.

The solution is to purchase a solar pump that will cost nothing to run.

Many pool owners like to extend the swimming season by heating their pool – but how do you avoid puffing more greenhouse gases into the air? The answer is to go solar.

If your roof is unsuitable, a heat pump is another greenhouse friendly option. Heat pumps work by absorbing heat from the air and transferring it to stored water – a bit like a reverse refrigerator. While they use electricity, the amount required is tiny. Traditionally used for household hot water they are now available to heat swimming pools. Since warm water evaporates faster than cold water it’s even more important to cover a heated pool – it will also reduce heat loss.

Also crucial for optimum operation is an easy-to-install solar controller that monitors and regulates water temperature.

Cut down on chemicals

Pools use rather a lot of nasty chemicals – of which chlorine is the most significant. The concentrated liquid form of chlorine, sodium hypochlorite (or bleach), is extremely corrosive and regarded as highly toxic by the US EPA. For these reasons it should be securely stored and kept out of reach of children. It is acutely toxic to aquatic organisms, which is another reason to avoid sand filters, which create high volumes of chlorinated backwash.

The need for chlorine can be minimised through your choice of water treatment system. UV and ozone systems cut down the amount of chlorine needed by 70 to 80 per cent, and ionisers also reduce the need for chlorine.

Salt chlorinators have the advantage that you don’t need to handle chlorine although you’ll still end up with sodium hypochlorite in the pool solution.

You can also reduce chlorine use by keeping your pool clean and preventing its evaporation with a pool cover. Avoid locating plants that drop their leaves close to the pool and ensure filters are cleaned regularly. To avoid chemicals altogether consider a natural swimming pool.

The upshot?

Pools may be an unparalleled summer luxury – let’s face it, there’s nothing quite like a midnight dip on a hot summer night – but they are certainly not the eco-friendliest addition you can make to your backyard.

If you are going to have a pool, there are ways to make yours the greenest in the neighbourhood. With rainwater and solar power, you can reduce your pool’s impact to near zero.

Of course, for those of us lucky enough to live near the sea, a river, lake or mountain stream, nature provides the greenest swimming pool of all.

Read more here.

Story source: www.yonderr.com.au

The Australian Bureau of Statistics (ABS) said on Monday that total housing finance by value fell 2.5 per cent in October, seasonally adjusted, to $20.458 billion.

The ABS data also showed that the value of home loans was largely unchanged from October 2010, when it was reported at $20.593 billion.

The number of home loans approved in October 2011 rose 0.7 per cent.

National Australia Bank chief economist Robert Henderson said Monday’s data showed the housing market was still deteriorating.

Mr Henderson said it was a fairly dismal report on the housing market, with falling lending in value terms and construction and investment lending both weak.

Recent data, including the national accounts figures released last week, have highlighted the weakness of the housing sector.

"It is clear that over the foreseeable future Australia will fall well short of building the number of new homes required for both owner-occupiers and renters," Housing Industry Association chief economist Harley Dale said.

"Amidst the growing risks to our economy from the situation in Europe, now is the time to be providing stimulus to the new home building sector while at the same time reinvigorating the housing supply reform process, which currently lies dormant."

Commonwealth Bank of Australia senior economist Michael Workman said Monday’s ABS figures were a little softer than he expected.

"If you go back and look at the data over the last 15 years or so, housing credit growth still remains exceptionally weak.

"So, for the housing market, it’s strongly biased towards the buyers rather than sellers and it looks like it’s going to stay that way."

Mr Workman said the Australian dollar and local bond futures were largely unaffected by the data.

RBC Capital Markets fixed income and currency strategist Michael Turner said the October housing figures were a little dated.

"China has already reported trade data for November, and the finance data do not reflect the November and December (monetary) policy easing (in Australia)," he said.

"As such, there are limited implications for markets.

"We expect more timely domestic data to better reflect the softening in global growth in coming months, which should justify further easing (of interest rates) and a move to accommodative territory in 2012."

ICAP senior economist Adam Carr said the housing data showed the Australian lending market was recovering even before the Reserve Bank of Australia (RBA) cut interest rates.

The cash rate is now at 4.25 per cent after two consecutive 25-basis point cuts in November and December.

"The 50-basis points worth of cuts we’ve seen will likely see lending growth accelerate over coming months, which will start to add to the strong private demand numbers we’ve seen to date," Mr Carr said.

Story source: www.ninemsn.com.au

The RBA announced the rate cut at 2.30pm AEDT today following the board’s final meeting for the year.

It’s the second interest rate cut in as many months after the RBA lowered the cash rate on Melbourne Cup day in November.

In a statement issued with the announcement, RBA Governor Glenn Stevens said there had been "considerable turbulence" in financial markets and said financing conditions had become more difficult.

"This, together with precautionary behaviour by firms and households, means that the likelihood of a further material slowing in global growth has increased," Mr Stevens said in a statement accompanying the decision on Tuesday.

Economics analyst Ross Greenwood said Europe’s debt crisis would have been a significant factor in the RBA’s decision.

"The Reserve Bank indicated that it is still concerned about the European economic situation and the prospects of a global slowdown hurting Australia and its export markets," Greenwood told ninemsn.

While it’s good news for mortgage holders and borrowers, Greenwood cautioned consumers not to expect the banks to pass on the full interest rate.

Analysts were divided about whether the RBA would cut the rate today, with a survey of 14 economists conducted by AAP revealing seven tipping a cut, and seven predicting rates would stay on hold for another month.

Story source: www.ninemsn.com.au

Seven of the 14 economists surveyed by AAP say the RBA will cut the cash rate to 4.25 per cent from 4.5 per cent on December 6.

On Melbourne Cup day, the Reserve Bank of Australia (RBA) cut the cash rate from 4.75 per cent, saying that recent information suggested inflation had been contained.

With inflation no longer a problem, the bias for the RBA is now firmly leaning towards rate cuts, with 10 of the 14 economists forecasting rate cuts by the middle of 2012.

Citigroup head of economics Paul Brennan is expecting the RBA to cut rates on Tuesday, despite expectations of strong economic growth in the September quarter.

"We see this as a policy of least regret given that the outlook for global growth has continued to weaken in the past month to well below trend," Mr Brennan said.

"We see scope to lower the cash rate to the bottom of the neutral range over the next few months, which would imply a cash rate of four per cent over the next three months."

The biggest risk to economic growth comes from Europe, which may well go into recession, or start another financial crisis, as several members of the euro struggle to meet debt repayments.

There are also local risks to economic growth.

In the past month the RBA, Treasury and the Organisation for Economic Co-operation and Development (OECD) have cut economic growth forecasts for 2012.

In addition to that, official figures for October showed a 10.7 per cent fall in building approvals and retail spending only rising 0.2 per cent.

On the other hand Australia’s mining boom is still going strong, with the sector making its biggest ever contribution to economic growth.

Nomura Australia chief economist Stephen Roberts said he doesn’t expect the cash rate to move for the foreseeable future unless something bad happens overseas.

"My forecast is that they are going to leave it at 4.5 per cent," he said.

"I’m assuming they will hold it neutral all the way through to the end of 2012 but my proviso is if Europe generally does go to hell in a handbasket, then they can drop interest rates a long way."

NAB senior economist Spiros Papadopoulos said the RBA won’t cut on Tuesday but by early next year the pressure will build for another rate cut.

"Obviously there’s a risk that they might cut interest rates next week, given everything that’s been happening offshore in the last couple of weeks," he said.

"On balance, given the fact that the domestic economy has been holding up okay we don’t think they need to rush in to cutting rates."

Story source: www.ninemsn.com.au

At 1027 AEDT, the benchmark S&P/ASX200 index was down 58 points, or 1.39 per cent, at 4,105 points, while the broader All Ordinaries index had fallen 57.2 points, or 1.35 per cent, to 4,176.4 points.

On the ASX 24, the December share price index futures contract was down 69 points at 4,117 points, with 10,034 contracts traded.

Some 19 of the 20 stocks on the S&P/ASX20 were in negative territory at the open, with the worst performer Rio Tinto, down 2.99 per cent, or $1.97, at $63.93.

Austock Securities senior client adviser and strategist Michael Heffernan said there had been a "knee-jerk" reaction to worries about the US debt problems on offshore markets.

Mr Heffernan said the Australian market had followed suit, but falls here had not been as steep as those overseas.

"We are down a fairly muted 1.5 per cent," Mr Heffernan said.

"It is a bit early to say how it will all pan out over the day, but 1.5 per cent down when America was down two per cent and Europe was down 2.5-three per cent is not a bad effort.

"As I keep saying, there is fantastic value for good shares on our market at the moment."

The worst-performing sector at the open were metals and minerals stocks, down 2.01 per cent according to IRESS data, while metals and minerals companies were two per cent lower.

US stocks were hit hard during the overnight session. The Dow Jones Industrial Average backpedalled 2.11 per cent, the S&P500 slipped 1.86 per cent and the NASDAQ declined 1.92 per cent.

It was a similar picture across Europe where bourses in London, Paris and Frankfurt finished deep in the red.

Market players headed for the exits amid worrying news about the levels of US government debt, as well as warnings from one of the credit ratings agencies about a possible downgrade for France.

The spot price of gold in Sydney was $US1,675.3 per fine ounce, down $US44.88 from Monday’s local close of $US1,720.18 per ounce.

Gold stocks were down 1.99 per cent, according to IRESS data.

National turnover was 412.1 million securities worth $626.8 million, with falling stocks outnumbering rising stocks by almost six to one.

Story source: www.ninemsn.com.au

1. Bring your lunch
Pack your lunch in reusable containers. As well as contributing less to the already overwhelmed landfills, you will save money and your health. Don’t forget to pack a bottle (reusable of course!) of water, real utensils, and a cloth napkin. If you prefer to eat take out, try bringing reusable containers with you for your over-the-counter soup, salad or whatever.

2. Get involved
If your boss isn’t interested in making overall changes, you can still bring in a green cleaner for your desk, or put a bottle of eco dish detergent in the kitchen. Bring your own plate/cup/mug/bowl/utensils and store them in a desk drawer. People will notice and it might start a (good) trend. Find an electronic waste recycling place and help facilitate the office to take old stuff there. Put signs on office and bathroom doors reminding people to recycle and to shut down their computer at the end of the day.

3. Wash more, dry clean less
What are you wearing? Perc (perchloroethylene) the main chemical in dry cleaning solvent is a classified hazardous chemical and has been linked to cancer in lab animals. You know the smell. The chemical gets trapped in the plastic bags. Then we put those trapped items in our closets, close the door, and sleep next to the closet with the windows shut all night long. Bad idea. If you have perc-cleaned clothes you need to remove the plastic and air your clothes for several hours to let the chemicals evaporate. Better alternatives to conventional dry cleaning include sponge cleaning or hand washing. This works, even for wool. Speaking of wool, avoid mothballs. The vapours are carcinogenic and if a child swallows one, it could kill them. Use things like lavender, cedar, and temperature (stick sweaters in your freezer) for moths.

4. Transportation
How do you get to work in the morning? Public transportation is preferable to driving. Carpooling is a good option where public transport is unavailable. Walking or biking are obviously the best options, as is telecommuting (you’ll save money on petrol, too).

5. Open Windows
Studies show indoor air to be worse than outdoor air. Ventilation is key, especially if you’re sitting near a photocopier. And put a plant on your desk – some are known to act as air filters (aloe vera/ficus for formaldehyde; spider plant for carbon monoxide, and several others).

To read the full story, click here

Story source: www.yonderr.com.au

1. Cleaning Products

Whether you’re using an independent cleaning person or the building management has staff in place, now is the time to switch cleaning products to greener versions to drastically reduce indoor air pollution and to avoid adding questionable chemical residue to our waterways. Obviously this is easier to do when you don’t have to go through building management.

But even if you can get a building to change one product to green, you’ll really be making a difference.

2. Energy Initiatives

Change light bulbs to energy efficient ones and put up signs reminding staff to pull the plug at the end of the day on things like coffee makers and microwaves, and to turn the power off on their computers.

Standby on many computers equals energy guzzler.

3. Paper Products

Set up a digital file sharing system and make an initiative to print as little as possible. Paper should be 100 per cent recycled, and either unbleached, or bleached without chlorine. When you do print, use both sides. Speaking of printing – refill ink cartridges rather than buying new and if that’s not possible there are plenty of places where you can take them for recycling.

Reuse anything that is printed on one side only as scrap paper, reducing the need for new notebooks in the office. New notebooks, toilet paper, paper towels, business cards and more can all be found in eco-friendlier versions. If you send out lots of mailings at work, choose eco packing materials.

Reuse boxes, shred papers for packing material and look for padded envelopes containing recycled fibre.

Consider cancelling all your newspaper and magazine subscriptions and go online instead.

4. Stock Your Kitchen

Much of the waste that is created during the day in an office is takeout food containers, coffee cups and water bottles. If you have a kitchen, use it. Simple things can make a huge difference. Fill a cupboard with reusable mugs, plates, glasses, and utensils. Stick a bottle of eco dish soap by the sink. Put in an under the sink water filter. Plug a coffee maker into the wall. Take it a step further by filling it with Fair Trade/organic coffee and putting organic milk in the fridge. You don’t need plastic or wooden stirrers when you have spoons in the cupboard. Sugar and tea also come in Fair Trade/organic versions. Bulk sugar has less packaging than individually wrapped paper packets. Coffee filters, like all paper products, now come in unbleached versions.  If you have a microwave, put a few microwave safe glass containers in the cupboard (it’s not a good idea to put plastic in the microwave).

If you have a bottle of hand soap or sanitizer in the kitchen, make sure it doesn’t contain an antibacterial (like Triclosan).

5. Try carbon offsetting your business

Whether you’re a unique boutique, a mobile business or a large company – or something in between, you’re impacting the environment and if you want to do more about carbon emissions and the boss thinks it’s a good idea, try offsetting.  Carbon offsetting is a way for businesses (and individuals) to invest in in projects that prevent or reduce greenhouse gas emissions from being released into the atmosphere.  Check out the various options and pricing at Yonderr.

If you have any other tips to help create greener workplaces we would love to hear from you – drop us a line today.

To read the full story, please click here

Story source: www.yonderr.com.au

Westpac took just 15 minutes to pass on the Reserve Bank of Australia’s (RBA) 0.25 percentage point rate cut in full on Tuesday. It will lower its standard variable home loan rate (SVR) to 7.61 per cent from November 14.

Westpac is the nation’s second biggest mortgage lender by market share,

Bank of Queensland (BOQ), and Commonwealth Bank (CBA), Australia’s biggest home lender, followed suit, cutting their SVR to 7.61 per cent and 7.56 per cent respectively.

BOQ’s rate cut will take effect on November 11, and CBA’s on November 4.

ANZ Banking Group and National Australia Bank (NAB) said their interest rates were under review.

The cuts by the bigger Sydney-headquartered lenders come almost two years after Westpac ignited public outrage by lifting its SVR by 45 basis points after the RBA’s rate hike of 25 basis points.

Last November CBA did the same, with its rivals passing on rate rises of between 35 and 43 basis points, helping to prompt a Senate inquiry into competition within the banking sector.

NAB has consistently tried to undercut its rivals to win market share, and last Thursday posted a record annual cash profit of $5.5 billion on strong growth in home lending and deposits.

Westpac retail and business banking group executive Rob Coombe said economic weakness in Europe was having a negative effect on Australian business and consumer confidence.

"A reduction in interest rates will provide a timely boost to sentiment and generate a positive flow-on effect for the broader Australian economy," he said in a statement.

The rate cut will reduce repayments on an average $250,000 mortgage by about $41 per month, he said.

BOQ managing director Stuart Grimshaw announced the rate cut on his first day with the bank as its new boss, saying that with Christmas approaching it was the right thing to do.

CBA has 27.8 per cent of Australia’s home loan market.

Westpac has a 26.4 per cent share, while NAB has 15.6 per cent, ANZ 14.3 per cent, Suncorp 2.8 per cent, Bendigo and Adelaide Bank 2.6 per cent and BOQ 2.2 per cent according to figures from the banking regulator.

Westpac will report its annual result on Wednesday followed by ANZ’s profit result on Thursday.

Story source: www.ninemsn.com.au

The cut continues what is becoming a tradition, with the Reserve Bank changing the cash rate on Melbourne Cup Day for the sixth year in a row.

It is also the first time in a year that rates have shifted in either direction, with last year’s race tarnished by a surprise 25 basis point bump.

The Reserve Bank’s decision comes after the TD Securities-Melbourne Institute data revealed inflationary pressure was at a 19-month low.

The Institute’s inflation gauge showed a 0.1 percent rise in headline and trimmed mean measures, prompted largely by a massive drop in fruit and vegetable prices.

The rise keeps inflation at a 19-month low of 2.6 percent, well within the Reserve Bank’s target band.

The Reserve Bank last cut interest rates in April 2009. Following a steady climb in 2010, interest rates have stayed on hold since last November.

The last time the Reserve Bank stayed put on Melbourne Cup day was in 2005, midway through the cash rate’s year-long stint at 5.5 percent.

Story source: www.ninemsn.com.au