Over the last few months banks have moved the goal posts to meet the demands made on them by the Reserve Bank, resulting in tougher lending criteria.
Five trends we're seeing as a results of this are:
1. It has become harder to borrow money for most, whether a First Home Buyer, Investor or new Immigrant
2. We have seen a slowdown in the volume of pre-approvals in the past two months.
3. Seems to be a bit more Buyer activity now from people with existing pre-approvals who have been waiting for the hot prices to cool off.
4. Buyers are not willing to chase properties as much as we have enjoyed this past 12 months,
5. Large number of houses being listed before Christmas, Buyers are deciding that the timing might be right to enter the market.
With an increase of Buyers, many of whom are not willing to pay heated prices, we now find that it is the Vendors expectations that need to be considered if they are to meet this new market. Often what we find is that Vendors are concerned that if they do not sell their property for top dollar that they may not be able to afford their next move.
We are talking to Vendors about their mortgage structure, and with some advice we’re able to allow to increase their lending on the new home, all while leaving the mortgage repayments at a level that suits their lifestyle and budget, therefore eliminating fear and reducing the sale expectations.
How Rothbury can help
The Rothbury team is available to offer you an obligation free opportunity to discuss your home lending needs, whether you are a Vendor or Buyer. We understand the lending terms and conditions of the lenders and can tailor your loan to ensure that you receive the best possible deal. Please feel free to contact us any time for a discussion regarding your specific mortgage needs.
About the AuthorName: Jon O’Connor
Jon is the General Manager of Rothbury Life & Morgages, a nationwide life insurance and mortgage advisory operation for Rothbury Insurance Brokers
Jon is the General Manager of Rothbury Life & Morgages, a nationwide life insurance and mortgage advisory operation for Rothbury Insurance BrokersClose