If you’ve been sitting back waiting for the right time to press “go” on a home loan, 2020 could be the year for you. A good mixture of a stable property market and economy is creating conditions that can help you make the right decision for you and your property goals. Make sure you take these points into account when making your choice.
Interest rates are the lowest ever
As of late 2019, the Reserve Bank’s official cash rate sites at 0.75%. Those numbers have been trending down since early 2008, as monetary policy continues to focus on stimulation of the economy. Low interest rates are obviously good for prospective home buyers. Banks and lenders usually follow the lead, or the trend at least, of the Reserve Bank. And if they don’t there will surely be someone else in the market who is willing to. This means finding an interest rate within your budget should be easier. Lower interest rates mean lower repayments and is usually the first thing most home buyers look at when hunting for a mortgage.
Banks are under the pump
The recent royal commission has shone a light on some of the big banks in a way that is less than flattering. This means that smaller banks are having their time in the sun. When home buyers take a closer look at lenders like Newcastle Permanent, they will find smaller banks are anything but faceless and will always work hard to find a suitable home loan for a customer. Take a look at Newcastle Permanent’s home loan offering here. This means actively listening, identifying products with the customer’s goals and dreams in mind and providing ongoing support over the life of the loan. They work hard to provide mortgage products and outcomes that are tailored to the exact needs of every client. This is great news for home buyers, whether you’re buying your first home or your fifth.
Take advantage of the strong competition
Given historically low interest rates and a focus on the practices of the big banks, home buyers can take advantage of the strong competition both those factors together can create. On top of that, with so many home loan options available, doing your research can pay big dividends. It also means you can take a closer look at some of the home loan options on the market. Look closely at what features they offer. You might be able to get a better deal that suits you in the long run as well as find a great interest rate. And don’t forget to ask about customer service. Being a number isn’t good enough in today’s mortgage market. Find a lender you can trust, and you know will be there for you when you need it.
The market is good, as is affordability
According to the industry, house prices are on the way up, as is affordability. Late 2019 figures have pointed to housing affordability improving in all states and territories. While average loans have risen, low interest rates and increased income are driving the affordability changes. And, of course, there is always the property market. The end of 2019 saw Melbourne and Sydney leading a recovery, with weighted average media prices up across all eight major Australian cities. Of course Coronavirus will impact things greatly, but looking to banks like Newcastle Permanent may be the answer. You can find there website by clicking this link.