Are we at the peak of the market? Good news for homebuyers with the release of the federal budget and inner city Townhouses are taking off.
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 upfront to assess your options.
Here are some of the market leading rates as of May 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 underway.
- The unemployment rate fell to 5.6% in March 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
Federal Budget 2021/22
This year's budget is sounding very promising in helping people get onto the property ladder with a range of new schemes and updates to some of the existing ones. These range from:
Tax Cuts
Increase in the FHSSS from $30k to $50k
New 'Family Home Guarantee' designed to help single parent families get on the property ladder
Additional 10,000 places for the FHLDS scheme
Plus the continuation of the existing grants
For more information on the above grants click HERE. Alternatively, contact us today and we would be more than happy to go through it all with you.
Are we at the peak of the market?
Total inquiries for home buyers and people attending open homes have begun to plateau. Although we might be seeing fewer people at open homes we are still seeing the total amount of offers remain the same and competition still pushing the prices higher. Last month we have seen 50+ groups through an open and more recently we are seeing 35+ per open. These are still very good numbers regardless and if you are trying to find a new home you will know how hard it is.
We interpret this data that we are near the top of the market and will be watching closely over the coming months for signs of it slowing down. If you are thinking of selling now could be a perfect time.
As we are seeing house prices rise we are also seeing the townhouse market starting to pick up as houses are now becoming unaffordable for most people. If you would like some impartial advice on selling or buying we are happy to help.
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.