Mortgage Experts Blog
Lending competition returning
Today I am writing about some significant changes to lenders polices (It seems lenders are back and wanting business). Competition is finally returning to the lending market!
As has been widely reported competition has been poor between lenders over the last few years but there finally seems to be some real competition returning to the market. I currently have access to a number of great special offers from major banks as well as regional and non banks which could potentially save you thousands of dollars a year in interest and fees. The other big news is that some of the more overzealous lending policies adopted by lenders during the last few years are being unwound. While still frustratingly difficult to get some credit worthy loans approved it seems the tide has turned and I can envisage it getting a bit easier over the next year. This spring if you are considering buying or know someone who is please keep me in mind and feel free to pass on my details.
Housing market update
My tip is that prices will mostly stay stagnant into the middle of next year. They way I see it is there are currently competing forces that will keep prices in a state of equilibrium. We have very low unemployment and the lack of new supply of dwellings being built is putting upwards pressure on prices. However higher interest rates (although still quite low but likely to rise) and general price rises over the past 18 months means that affordability is at historic lows and this will work to keep a lid on prices.
Of course there will be differences from local market to local market. My view is the lowest end of the market which has seen the biggest overall percentage gains over the last few years may have a pull back in prices of around 5% - 10% while the rest of the market will be mostly stable.
Could you benefit from a no obligation home loan health check?
If you haven’t looked at your loans in a while or you are fed up with your current lender you may benefit from a “home loan health check” or as I like to call it the “don’t b*tch switch”. I can quickly assess if your current set up is competitive and if switching lenders makes economic sense. You have nothing to lose and a lot to gain. Even just a 0.3% pa difference in interest rate on a $500,000 loan means an extra $1500 a year in your pocket. If you are interested please contact me for a no obligation chat, just click on the link below for contact options. And don’t worry I don’t charge fees at any stage and all personal and financial information you provide me is in complete confidence.