Guest Blog | Tina Howes | Aria Financial
2023 has taken off with a bang for me. A brand new business- Aria Financial, a new aggregator, new systems and a few other new things. Watch this space.
“What you can’t afford to do at the moment is to try find your own lender who may be the cheapest but takes 4 weeks to assess your application”
As a broker, I’m feeling more needed than ever. With so much uncertainty around, you need to deal with someone who you trust and who can give you some certainty in this environment, especially when cash flow is tight. With downward pressure on how much you can borrow, it becomes even more relevant to find the lender whose credit policies work best for you and the best deal, given the rising cost of living.
Some of the painful parts of 2022 have continued
- The cost of living, combined with mortgage repayments rising, is resulting in some people finding it tough to make ends meet.
- Fortunately, many mortgage holders have super low fixed rates taken out during the pandemic and are yet to feel the pinch of the rate rises. But that’s set to end shortly as these fixed rate periods start rolling off.
- We are still hearing about inflation rising and further interest rate rises are to be expected in the first quarter of this year. However, it is suggested that we will see rates start to drop early next year with some predicting that may happen earlier.
- Everyone’s Borrowing capacity (that is how much money the banks will lend to you) continues to decline as rates rise, putting some downward pressure on property prices in some areas.
- The media continues to hype up talk about property prices dropping due to people having no choice but to sell when they can’t afford the higher repayments. Think 2% on a fixed rate coming on to 6% on a variable rate. Ouch! Whether this mass sell off actually going to happen in any significant way, remains to be seen.
“Many who have been sitting on the sidelines are now wanting to be ready to buy and are seeing great value in the markets around Australia”
What’s new for 2023?
- We have seen the new First Home buyer reforms in NSW come into effect with first home buyers having the option to pay the annual tax on properties up to $1,500,000 instead of a lump sum payment.
- Refinance activity has been hotter than ever for those not necessarily looking to buy but looking to save money in any way they can.
- Many clients that who have been sitting on the sidelines in 2022 waiting for prices to cool, are now getting back in touch and wanting to be ready to buy and are seeing great value in the markets around Australia.
- It was mentioned in the media this week that there may be some easing from APRA in the way banks assess home loans, especially for those who do not meet current bank lending criteria and are simply wishing to refinance. I mean, if a client has been making repayments at a higher rate on their existing home loan, why shouldn’t they be able to take their business to another lender at a LOWER rate. More on this soon hopefully.
The key thing right now and what you can’t afford to do at the moment is to find your own lender who may be the cheapest but takes 4 weeks to assess your application, only to decline it. This hurts your credit score.
If refinancing is something you want to look at, see a good broker who will advise you on the best lender, one who is most likely to approve your loan, and who can do an upfront property valuation to ensure the equity required it there.
If you’d like to speak with Tina about refinancing your loans, or having your borrowing capacity assessed then you can get in touch with her here:
Mobile: 0456 533 439