It's been another action packed month with competition for houses at all time highs which is resulting in prices rising! We've seen a lot of active buyers struggling to secure their next home as they find themselves in multiple offer situations and being outbid. Find out how to put yourself in the best position possible below.
The rental market is also competitive with rental prices creeping up too. If you've got a tenant renewal coming up it might be worth reviewing the rent and your loan to help improve your cash flow. Find out more below.
Interest Rate Update
We've seen more lenders drop their short term (1-3 year) fixed rates again this month to be more competitive but we're still seeing high processing times from most of the big lenders (up to 35 days!), so if you're thinking of buying and need a 14 day finance clause to be competitive in the market then it's important to talk to your broker up front to assess your options.
Here are some of the market leading rates as of April 2021.
We've also started to see lenders creeping up their 4+ year fixed rates. Now more than ever is the perfect time to review your home loan and take advantage of the low rates, it won't last forever!
To find out if you qualify for any of the above rates contact us today.
RBA cash rate
The RBA cash rate has remained the same at 0.1%.
Some of the key takeaways from this meeting were:
- The economic recovery in Australia is well under way and is stronger than had been expected.
- The unemployment rate fell to 5.8% in February and the number of people with a job has returned to the pre-pandemic level.
- Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.
- The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. The Board does not expect these conditions to be met until 2024 at the earliest.
If you want to see what else was discussed then click HERE
Give yourself a competitive edge when buying a home
For those of you looking to purchase you would know how hard it is to secure a house with all the competition around, but there are things you can do to give yourself the best chance and it's not just by offering more money!
In today's competitive market it's important to ensure you have everything organised upfront. Most agents and vendors won't even consider you if you can't meet at least a 14 day finance clause. So by getting your pre-approval done upfront, selecting your solicitor and determining your buying clauses you will be able to make a strong offer and move quickly when putting in an offer. This will also put you in the good books with the agent as they know you are serious and there is less chance of things going wrong.
Don't forget that not all homeowners are driven by getting the highest price, it's not uncommon to find people moving interstate or overseas and are on a fixed timeframe. Talk with the agent to find out what their biggest motives for selling are.
If you don't know where to start and looking for some guidance then check out our latest Blog, Steps To Buying A Property. Alternatively, send us an email or give us a call where we would be more than happy to help guide you through the process.
Is now the right time to sell?
This is a question we are getting asked more frequently and the answer is.... it depends! Ok so this might sound like an easy way out of answering the question but it's not as simple as a Yes or No. Everybody and the situation they are in is different so yes while the market is "hot" that doesn't mean that selling now is a good idea for you, your family or your finances.
The real question is why do you want to sell? Are you looking to relocate or change suburb? Looking for a bigger home?
If you would like us to help you review your situation to see if now is the right time we are more than happy to help, reach out and give us a call or email.
Citi Bank to sell off and exit the Australian consumer and mortgage market
Citi has commenced a sale process of its Australian consumer business, which includes mortgages, credit cards, retail banking and wealth management for high-net-worth individuals.
The sale comes as Citi looks to exit its consumer banking business in 13 markets, including Australia, following a “strategic review” which it undertook to focus its investment and resources to the businesses “that can drive stronger growth, deliver scale and improve returns over the long run”.
In Australia, the sale of the consumer business will enable Citi to focus its investment and resources to its institutional business, which includes investment banking, capital markets and advisory, markets and securities services, commercial banking and treasury and trade solutions.
Read more of the story HERE
Do you own an Investment property?
If yes when was the last time you reviewed your finances and mortgage for it? With lenders starting to increase their 4+ year fixed rates you may only have 3-4 years of these record low interest rates to take advantage of.
Contact us today to see how much you could potentially save.
If you would like to find out more information on any of the above topics or would like to see how we can help you with your mortgage Contact us.
WARNING: The contents of this communication are not designed to replace credit advice. We have not taken into account your needs, objectives or financial situation. The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. The comparison rate is calculated on a $150,000 secured loan over a 25 year term at 60% LVR.