From independent rate hikes to tighter lending criteria, Aussie CEO James Symond, explains why a conversation with your Aussie Broker is definitely worthwhile.
“Information is power in the current mortgage market,” says Symond. “But most home buyers don’t have the time to thoroughly research their options – and that could mean missing out.”
Already, more than one in two (56%) home loans are arranged with the help of a mortgage broker according to Deloitte Access Economics.
“Over the last 25 years we have seen a phenomenal rise in the number of people turning to brokers. It’s testimony to the service and value that mortgage brokers provide,” notes Symond.
Lenders are looking for their preferred borrower
Adding to the complexity of the market, Symond says home loan lenders are focusing on different types of borrowers.
“Lenders are all competing for their own slice of the home buyer pie,” he explains. “Some are targeting first home buyers with a large deposit. Others are targeting investors. The trouble is, consumers have no way of knowing which lender covers their particular needs.”
Further clouding the picture, Symond says “Banks are tightening their home loan rates on one hand, yet on the other hand we are seeing falling home loan rates. It’s all part of lenders fishing for the share of the market that they are interested in.”
Are comparison sites helpful?
“All information that home buyers can pull together is good, provided it is taken in context,” says Symond. “However, there is no substitute for a face to face meeting with someone who can dive deeper into your needs. That’s what a mortgage broker does – and unlike a website, your broker will be with you for life.”
According to Symond, relying on comparison sites can even lead to disappointment. “We see this all the time,” he says. “It can be a big time waster, and very demoralising, to apply for a loan that seems to tick all the boxes only to find that you’re not eligible.”
Flex your buying power
Along with the right home loan, Symond says it’s important not to pay too much for a home.
“In a market that’s softer or stabilising, buyers can’t afford to be emotional,” he explains. “This is not the time to pay silly amounts over what you intended. Stick tightly to your buying budget.”
Record low interest rates and weaker home values in a number of cities are giving first time buyers excellent buying opportunities, and Symond says first home buyers are definitely on the comeback trail.
“We are seeing a meaningful rise in first home buyers across the country,” notes Symond. “First home buyers are really on the front foot. They know there are pockets of value they can afford to buy in.”
Having the right home loan matters
Nonetheless, having the right home loan in place can be the thing that gets buyers across the line. “No matter whether you’re a first home buyer or an existing home owner, pick up the phone and make an appointment with your local Aussie Broker,” says Symond.
He adds, “For over a quarter of a century we’ve helped hundreds of thousands of Australians find a new or better deal on their home loan, and I am so confident that meeting with an Aussie Broker will be time well spent, I guarantee it. Under Aussie’s ‘Worth your While’ Guarantee if a customer does not think it was time well spent, $100 is theirs*.”
Talk to an Aussie Broker to put our ‘Worth your While’ Guarantee to the test.
*Terms and conditions apply, visit www.aussie.com.au.