Welcome back to the Mintwell Minute… with a new record being hit and property prices being the highest they’ve been in 30 years, we wanted to understand what this means for first-home buyers and, well, anyone seeking to buy a property in Australia who requires a home loan. With all this in motion, we also wanted to reach out to anyone in this position, equip you with some tips, and let you know our experts are here to help you navigate the journey, no matter how challenging it may appear. With all that said, let’s go!
With new data revealing that property prices are rising at their fastest rate in 30 years, banks are preparing to implement lending restrictions by the end of the year. This prompts cause for concern not only for anyone hoping to buy a property, but it is forcing first-home buyers out of the market completely.
With property prices across Australia at a record high, it is having a causal effect on mortgage prices. Data from the Australian Bureau of Statistics showed the average new mortgage is greater than $400,000 in every state and territory for the first time on record. In August, the same data showed loans for housing dropped 4.3%. Experts are concerned that first-home buyers, already faced with a tough market to enter, will be completely pushed out of the market with this intervention by banks further limiting their ability to get a loan.
Don’t fret just yet, not all hope is lost…
Although everything is pointing in a seemingly dire direction, we promise that there are things you can do to assist yourself in this situation and boost your mortgage approval chances. Here are our Top 3 pointers:
Number 1, think again before spending your hard-earned moolah on want-not-need items
You may not think it, but lenders are a lot more interested in your lifestyle expenditures than you know. If you’re purchasing a lot of your income on arbitrary things and making a habit of it, lenders may conclude that your spending habits are not in line with your ability to pay off your mortgage. Especially if you’re saving less than you spend. If you have spare cash, make sure you are putting this away to go towards your mortgage in a savings account or similar. This, on the contrary, will showcase your determination to save and pay off your loans efficiently.
Number 2, check your lenders’ processing times
The time it takes to get your mortgage approved, could be time wasted on securing your ideal property that is going up in value simultaneously. During these times it’s especially important and even more so that you choose a mortgage broker who has relationships with lenders to ensure speedy approval times. Our advice? Step one, choose a fantastic mortgage broker. Step two, get a low-down on the various lenders and what their turn-around times are like.
Number 3, rely on professional advice
The mortgage arena is changing drastically and it’s these times that call for expert advice from professionals who understand the complexities and furthermore, how to navigate them. Choosing a fantastic mortgage broker who will be able to lead you to an equally fantastic lender is your best bet. A broker should be chosen on a multitude of qualities, though the most significant being their ability to understand your individual needs and goals, their expertise in the field, and finally their relationships with lenders.
At Mintwell, our expert mortgage brokers are there to help you thrive throughout the journey of you acquiring property and getting a loan that suits your circumstances. With relationships with over 50 lenders, you can rest assured that they can provide you with the best lender. To tap into their expertise, please reach out. It’s all about the journey here at Mintwell.