- The Savvy Promise
The Australian property market is a restless one that can see things heat up and cool down in a matter of months, and with everyone trying to get a slice of a property market worth $7.5 trillion it pays to keep up to date.
Where do we currently stand in numbers?
Whether you are a first-time property owner, or you own multiple properties, you know that investing in property is no child’s play and comes in high numbers when it comes to purchasing it. Property for Australians is an investment that can accrue wealth. According to Corelogic Housing market update for March 2018, 52.2% of household wealth is held in housing. The total number of property sales that exchange hands is 462,593 p.a. which has resulted in $296.4 billion being made in sales. But building this investment nest does not come cheap. There is currently $1.73 trillion in outstanding debt.
Lending is on a steady increase
Despite the fluctuation of various property markets in Australia and the increasing property prices, home loan lending is on a steady rise. The value of home loan lending rose to its highest level in February since August 2017. The Australian Bureau of Statistics recorded a 1.3% increase in the borrowing of value to owner-occupiers. A 1% increase in lending might appear to be a small number, but this one percent led to the home lending market experiencing a rise to $33.5 billion in lending. The number of first time home buyers took a slight hit in numbers. The ABS reported that the first home buyer commitments as a percentage of total owner-occupied housing finance commitments fell to 17.4% in March 2018 from 17.9% in February 2018.
Millennials come out strong
Roy Morgan revealed that the home lending market has experienced a change in terms of who borrows from a mortgage broker. The data revealed that 48.6% of existing home borrowers that used a mortgage broker over the past five years to finance their current loans were Millennials. Generation X (1961-1975) followed with 38.8%. Generation Z (1991-2005) held a considerable place in holding fourth place with 3.5% of Generation Z approaching a mortgage broker to finance their current loans.
How you choose your mortgage broker matters
When it comes to financing your mortgage the type of mortgage broker you choose matters when it comes to securing a loan that is value for money. Getting an approved mortgage broker is the first step, but the most vital thing to do is compare. Compare the customer service along with the price range that is offered to you for your mortgage. You could research reviews on the particular mortgage broker you are considering on choosing as your lender. This will mark the difference in you saving thousands of dollars or missing out on good deals that can save you money that can be used elsewhere.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.