Shock news from the Reserve Bank! The cash rate has been sliced down from 0.25% to a tiny 0.1% as the economy continues to grapple with the impact of the coronavirus pandemic.
This is an all-time low cash rate, and the rate cut could mean that very soon Australian home owners could pocket valuable savings on loan repayments.
If you’re unsure how your lender has responded, waste no time getting in touch with your Mortgage Choice at Oatley to know the rate you’re paying – and whether you could do better in today’s ultra-competitive lending market.
Home owners still rushing to land a better deal
As home loan interest rates dip below 2.5%, Australians are embracing the opportunity to score a better deal on their home loan.
In October, seven out of ten home valuations related to a refinance1, continued a hot trend supported by a variety of lender incentives including popular cashback deals.
Be sure to speak with your Mortgage Choice broker today to know if switching to a new loan or lender can help you save. It can help you get ahead financially in 2021!
10,000 new places added to First Home Loan Deposit Scheme
The 2020/21 Federal Budget saw an extra 10,000 places become available in the very popular First Home Loan Deposit Scheme2. Designed to help first home owners get into the market sooner, the Scheme makes it possible to buy with just 5% deposit without the need to pay lenders mortgage insurance.
To date, 20,000 first home owners have benefited from the Scheme, and chances are the newly announced 10,000 extra spots will be snapped up fast!
Hurry in to your Mortgage Choice broker to know if you’re eligible for the Scheme – and what you can do to reserve your spot. While you’re there, your Mortgage Choice home loan expert can also explain the wealth of other grants and incentives available to first home owners in your area.
Over 11,000 Australians sign up for $25,000 HomeBuilder cash grant
In the space of just a few weeks, almost 11,400 Australians have taken advantage of the $25,000 HomeBuilder grant3. The vast majority of applicants (8,884) plan to use the $25,000 cash to build a new home, with the balance using the grant to fund a major renovation.
With HomeBuilder set to end on 31 December 2020 – and no extension announced in the latest Federal Budget, it is critical that you speak with your Mortgage Choice broker for expert guidance on whether you could be in the running for this valuable $25,000 helping hand to create your dream home.
Property market shines through pandemic
The resilience of Australia’s housing market has been nothing short of remarkable during COVID-19. CoreLogic says September marked a “striking turn in market sentiment”, with consumer confidence rising, an uptick in new listings, and rising values recorded across six of the eight capital cities.
Faced with tough lockdown restrictions, Melbourne recorded a 0.9% fall in values in September, while Sydney saw very little movement with a slight 0.3% decline in values. However, both cities are still ahead compared to a year ago, with a 12-month increase in home values of 7.7% in Sydney and 3.1% in Melbourne.
Elsewhere, home owners saw an uptick in their biggest asset – ranging from a 1.6% monthly rise in Darwin values, followed by a 0.8% climb in Adelaide through to a welcome 0.2% rise in Perth property values for September.
As we head towards the end of 2020, it’s time to plan ahead for the New Year. Your Mortgage Choice broker can explain how you can harness the power of record low rates, a healthy home market, and a wealth of government support to build or renovate your ideal home.
Capital city values4
Brisbane $504,902, Sydney $859,943, Canberra $644,581, Melbourne $666,796, Hobart $489,059, Adelaide $449,803 &Perth $445,717
1. https://www.corelogic.com.au/sites/default/files/2020-10/Early%20Market%20Indicators%20%28AU%29%20-%202020-10-11.pdf?utm_medium=email&utm_source=newsletter&utm_campaign=emi_aus_subscribers_20201012
2. https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/speeches/budget-speech-2020-21
3. https://ministers.treasury.gov.au/ministers/michael-sukkar-2019/media-releases/homebuilder-top-pops-highly-effective-immediate-and
4. https://www.corelogic.com.au/news/australian-housing-values-record-fourth-month-decline-down-04-august-trends-beginning-diverge Issued 1 Sept 2020
Our mission is to find the right home loan for your individual needs and to always have your best interests at heart. Plain and simple. Which is why we have such a wide range of lenders to choose from. We can search through hundreds of products to find something tailored to your situation. ~
Our free, downloadable guide explains the costs and steps associated with the purchase of an investment property, positive/negative gearing as well as pros and cons of houses vs. units.
