The housing market in Australia is on a tear, with property prices in all capital cities surging to record highs. These record-high property values coincide with historically low-interest rates, record low wages, and record-high household debt. These unprecedented price hikes are not sustainable. But, despite low-interest rates, borrowers in Australia continue to borrow more than ever. The banks in Australia are bolstering lending standards, with increased staff and resources being allocated to the home loan sector. The second-largest bank by assets, Australia and New Zealand Banking Group Ltd., is adding more staff to support its home loan business and limiting the growth of investors.
Hire a Broker to Get Australian Home Loans, There are many advantages to using a mortgage broker. In addition to providing expert advice and a range of services, a broker also receives a commission from lenders. This commission is paid upfront and in a deferred manner based on the outstanding balance of the loan. A mortgage broker should be able to explain any fees and commissions upfront. In addition, some brokers have a list of clients and have many years of experience.
Lending agents often promote particular mortgage products, mainly due to the commissions they receive. However, a mortgage broker has a vested interest in getting their clients the best deals. As their bread and butter, a mortgage broker will always strive to help you secure the best deal. In addition to providing expert advice, a good broker will build rapport with you and help you enjoy dividends in the future.
When applying for a home loan, the most common type is a variable rate. This means that the interest rate is determined by the lender but can change as the official cash rate is adjusted by the Reserve Bank of Australia. Low-interest rates are advantageous to borrowers but also put them at risk for future increases. To ensure that your loan payments stay within your budget, consider taking out a fixed-rate mortgage.
If you are considering taking out an Australian home loan, you may be interested in saving money as part of the repayment process. There are many ways to save money on home loans, including setting up an offset account to reduce variable loan interest. These accounts can include up to 10 different savings accounts, which can be beneficial for separating your spending and savings. The Australian Securities and Investments Commission (ASIC) has conducted research revealing that Australians often save their spare cash into a savings account, either manually or automatically. Australians often choose to save with term deposits, transaction accounts, and home loan offset accounts. The primary reasons for saving are often for a rainy day, holiday, or home renovation.