Australia’s leading mortgage broker, Aussie Home Loans, believes home buyers will enjoy better buying conditions in the 2018-2019 financial year, with housing affordability improving on the back of weaker property prices.
Aussie Chief Executive, Mr James Symond says that while sluggish wages growth and ever-tightening lending conditions are still cause for concern, the easing or reversal of price growth in some markets will be a welcome change.
“The Housing Industry Association’s recent report showed easing property prices have improved affordability in five of Australia’s capital cities in the June 2018 quarter, with Hobart, Adelaide and Melbourne the exceptions.
“Perth continues to be Australia’s most affordable capital city and represents excellent value for first home buyers and investors. I expect we will see a return to growth in that market very soon as buyers capitalise on its market conditions,” he added.
Mr Symond also pointed to Aussie’s recent 25 Years of Housing Trends report which showed loan serviceability levels have improved over the last 25 years. The proportion of annual household income required to service a mortgage (based on a 20 per cent deposit) is currently tracking at 36 per cent, up from 27 per cent in 2001, but down from its peak of 51 per cent of annual income in June 2008.
“A new report released this week by Deloitte Access Economics shows that mortgage brokers make mortgage markets work better, providing information and improving choice and competition for borrowers. It’s for these reasons and more that there’s never been a better time for a borrower to use a mortgage broker. Brokers intimately know the various lending criteria and policies of different lenders, and so can help borrowers secure the right loan faster and easier than going it alone,” Mr Symond explained.
To make a free appointment with an Aussie Broker, visit www.aussie.com.au.