Welcome to our latest newsletter for our dear referral partners! We are excited to share with you the latest interest rate updates and practical property insights for your clients. Stay tuned for valuable information to help you and your clients make informed financial decisions!
Big Four snapshot
At the time of writing, of the Big Four banks:
Westpac typically offers a competitive variable rate of 6.25% for home loans targeting owner-occupiers, available to those who can make a 20% deposit and choose principal and interest repayment plans.
Concurrently, Commonwealth Bank advertises a variable interest rate of 6.82% for home loans designed for investment properties, with a 20% deposit and on an interest-only repayment basis.
For owner-occupiers in search of a 2-year fixed home loan, ANZ offers an average interest rate of 6.54%, provided to customers who make a 20% deposit and select principal and interest repayments.
Regarding quick turnaround time, NAB, ANZ, and Westpac usually complete the initial assessment within 0 to 3 days of submission. Commonwealth Bank's turnaround time is still 4-8 days.
Notable non-major lenders
It can pay to think beyond the big banks, which is why there are some non-major lenders worth mentioning:
ING Direct currently offers a competitive variable 6.14% interest rate for your owner-occupier clients. This applies to your clients opting for a principal and interest repayment plan with a 20% deposit.
If your clients are looking for a 2-year fixed home loan, Me Bank is currently providing a 5.79% interest rate for owner-occupier home loans. This applies to your clients who have 20-40% deposits and opt-in for principal and interest repayments.
Beyond Bank is notable for providing a variable interest rate of 6.44% for investment property loans. This applies to clients who opt for interest-only payments and have less than 80% LVR.
We have a few lenders on our panel such as St George, Resimac, and Brighten that only add 1% on top of the usual rate during the assessment, whereas the majority of lenders usually add 3%. This applies to your clients that would like to refinance.
Market insights for your clients
Rentvesting on the rise
Soaring house prices in Australia have led many young Australians to opt for rentvesting, buying investment properties while renting elsewhere, to overcome the barrier of high property costs. This trend offers flexibility and potential financial benefits, with digital-only home loan providers catering to this market. Rentvesting is growing in popularity in some states while declining in others, reflecting changing preferences among first-home buyers.
Impact of travel savings
Australians are saving an average of $528 monthly by cutting back on travel, with Millennials leading at $743 per month. The 20% are using savings to pay down mortgages, and 42% to boost offset/savings accounts. This reflects a trend towards long-term budgeting, with one in four planning to reduce travel spending, indicating a shift towards smarter spending and shared property ownership among younger.
Property Market Predictions
The property market is expected to see significant value growth in Sydney, Melbourne, and Canberra, with predictions of up to a 10% increase by the end of 2024, driven by factors like strong population growth and housing shortages. Lower-to-median-priced homes in Sydney and Canberra are likely to see the strongest value increases, while Melbourne's luxury market is expected to outperform.
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