Month In Review - March
Another busy month! We've seen a lot of active buyers in the market and still a low level of new stock hitting the market. As a result, we have seen prices definitely on the move. 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 cashflow. Find out more below.
Interest Rate Update
We've seen more lenders drop their rates again this month to be more competitive but we're still seeing high processing times from most of the big lenders, so if you are thinking of a 14 day finance clause 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 March 2021.
We've also started to see some lenders creeping up their 4 year fixed rates. Now more than ever is the perfect time to review your home loan!
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 Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3% 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.
- There has been strong growth in employment and a welcome decline in the unemployment rate to 6.4 per cent. Retail spending has been strong and most of the households and businesses that had deferred loan repayments have now recommenced repayments.
- The recovery is expected to continue, with the central scenario being for GDP to grow by 3½ per cent over both 2021 and 2022. GDP is expected to return to its end-2019 level by the middle of this year.
If you want to see what else was discussed then click HERE
COVID mortgage holidays are ending on the 28th March!
If you're not ready to come off your payment holiday and need some more time please make sure you contact your lender ASAP. There are still options available to you should you need it.
We are also here and more than willing to help guide you through the process should you need it.
Find out more information on our Facebook page HERE
Responsible lending debate postponed till May
The National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 – which focuses on amending the credit laws so that they remove responsible lending obligations (RLOs) and extend the best interests duty to more credit assistance providers, among other changes – will not be debated in Senate until the next period of sittings.
This bill will replace the prescriptive one-size-fits-all approach that has evolved in relation to the interpretation of responsible lending and provide flexibility for lenders to assess each applicant for credit on a case-by-case basis. This should allow lenders to streamline their processes and reduce their processing times.
Relief packages available to flood victims
It's been a very wet month and sadly a lot of people have lost their homes and businesses as a result. If you have been affected by the floods and need financial help most lenders have options available to help get you through these difficult times. Please don't hesitate to contact your lender should you need assistance.
Mortgage broker complaints remain below 1%
Less than 1 per cent of the complaints received by the financial complaints authority around banking and finance products related to mortgage brokers, AFCA data showed.
According to figures provided to The Adviser by the Australian Financial Complaints Authority (AFCA) for the period between 1 July 2020 and 31 December 2020, the authority received a total of 21,218 complaints about banking and finance products. Out of this, mortgage brokers received only 121 complaints relating to banking and finance products, comprising 0.57 per cent of all banking and finance complaints, AFCA said.
A big win for the broking industry which only cements the value we add to consumers.
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.