Investors and homeowners alike have been asking “have the recent rate cuts produced a wave of confidence in the housing market?” We asked our brokers what they thought and if they believed this will impact on home lending moving forward.
When asked about the impact of recent interest rate cuts on home lending, industry our professionals informed us that had indeed seen an influx of first home buyers (FHBs) utilising their services to access the loan market. Extensive marketing by the major lenders had enticed them to investigate their borrowing capacity and further to see what options were available given the recent property market corrections.
Our brokers went on to say that the consumers most likely to benefit from interest rate cuts are current mortgagors and FHBs. It appears that those clients with the most to gain from the interest rate drops are those who are in a position to consider the benefits of a refinance package, a loan consolidation or those entering the market for the first time.
Our brokers report that they are already seeing a boost in consumer confidence, with both enquiry and application levels lifting across the loan products available.
The interest rate cuts and changes to the servicing calculations used to test borrowing capacity have significantly improved affordability for consumers. The improvements include:
- allowing faster repayments,
- a better opportunity to get ahead on a mortgage
- the added community benefit of improving their capacity to spend, which has flow-on effects to the rest of the economy.
We have seen APRAs changes to stress-testing limits start to filter through and when coupled with the possibility of another RBA rate cut, consumers have been given permission to look for a better deal, and they are getting them!
Investors shouldn’t feel left out. Our brokers have noted that investors with current loans dating more than 2 years should make enquiries about a re-finance also. New and/or first-time investors should not be put off by the focus on FHB and existing mortgagors. Instead, they should speak with a broker, spend a few hours gathering the required information and then put that broker to work saving them money. Our clients have reported some outstanding opportunities and our brokers are driven towards finding a solution for all situations. It just takes a phone call to get started.
To speak with a broker at Launch Money about a loan for your home, investment property or vehicle, call our team on (02) 9009 2457. Alternatively, you can email your questions to: firstname.lastname@example.org
About the Author:
May holds a Bachelor of Mathematics/Finance, is multi lingual and holds accreditation with the FBAA. May has demonstrated her commitment to client satisfaction in an outstanding career in finance and lending spanning 8 years. Rising through the ranks within a top tier lending institution, customer satisfaction became the cornerstone of her successful career as a lending consultant. Today, May heads up Launch Money, bringing her customer service skills to the business and ensuring our clients receive the best possible result for their lending needs. May’s key priority in all her dealings is to ensure our clients are well positioned to make educated decisions and activate their prosperity through tailored finance solutions.
May Chong can be contacted on (02) 9009 2457 or by email on email@example.com
Disclaimer: The information, analysis, provocations, suggestions and opinions contained within this email are provided by Launch Money Pty Ltd (ACN: 163 989 562). You should consider whether the information or advice contained in this article is appropriate to you having regard to these factors before acting on it. You should seek personalised advice from your financial adviser and your accountant before making any financial decision in relation to matters discussed in this article.