Big changes are shaking up the home loan market and your Aussie Broker can explain what it could mean for your home-buying plans
18 July 2019|4 minute read
The home loan market doesn’t stand still for long, and recent developments are dishing up opportunities for home buyers. We bring you up to speed on four key changes you need to know about.
At no time in recent history have interest been as low as they are right now.
The official cash rate is currently sitting at a tiny 0.25%, and plenty of home loans have rates that start with a ‘2’. That means there is exceptional value in today’s loan market and lenders are competing for your business.
Record-low interest rates could make your new home is more affordable, so don’t miss out – check back in with your Aussie Broker.
Great news for first home buyers, upgraders and investors: Your borrowing power may have increased.
In mid-2019, bank regulator APRA relaxed the assessment rate lenders are required to use to check home loan eligibility. Coupled with today’s amazingly low home loan rates, it means your borrowing power may have increased, and your dream home could be more achievable than you think.
Your Aussie Broker can tell you exactly what your borrowing power is to help you plan a clear home buying budget.
First home owners have rushed in to take advantage of the new First Home Loan Deposit Scheme (FHLDS), in place since 1 January 2020.
The Scheme lets first home buyers purchase a place of their own with a deposit of just 5% and no Lenders Mortgage Insurance. However, it’s only available to 10,000 first home buyers annually. So it’s first in, best dressed.
The 5,000 FHLDS places available through the big banks have all been taken. But there are still places available with 25 other lenders. Your Aussie Broker can explain which lenders are involved, and whether you are eligible to tap into the savings of the FHLDS.
Even if you’re not ready to buy right now, it’s worth having a chat with your Aussie Broker. Come 1 July 2020, a fresh round of 10,000 FHLDS places will be up for grabs, and now is the time to prepare.
Homes values nationally have been rising over recent months. And despite recent uncertainty, buyers are still actively competing at auctions.
Moreover, research group CoreLogic says property vendors may see no reason to lower their prices despite an unsure outlook.
The upshot is that there are no guarantees that holding out could see you pick up a bargain.
What’s more certain is that the combination of low home loan rates, accommodating lender policies and new first home buyer incentives make now the time to reconnect with your local Aussie Broker to see how you could start nailing those property goals.