Welcome to our first newsletter of 2024! As we embark on another year together, we're excited to share updates and insights that would be useful for your clients. Thank you for your continued collaboration and trust in our shared journey ahead.
Big Four Snapshot
At the time of writing, of the Big Four banks:
Westpac typically offers the most competitive variable rate of 6.2% for home loans aimed at owner-occupiers, applicable to those who can provide a 20% deposit and opt for principal and interest repayment plans.
Meanwhile, Commonwealth Bank is currently promoting a variable interest rate of 6.86% for home loans tailored for investment properties, assuming a 20% deposit and interest-only repayment terms.
For owner-occupiers seeking a 2-year fixed home loan, ANZ presents an average interest rate of 6.54%. This rate applies to customers with a 20% deposit who opt for principal and interest repayments.
NAB stands out for its quick turnaround time, completing the initial assessment within 0 to 3 days of submission. The Commonwealth Bank's turnaround time has shortened from 4-8 days to 0-3 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:
Macquarie currently offers a competitive 6.15% interest rate for your owner-occupier clients seeking a 2-year fixed home loan. This applies to your clients opting for a principal and interest repayment plan with a 20% deposit.
If your clients are essential workers, they are in luck! Teachers Mutual Bank is currently providing a 6.09% variable rate for owner-occupier home loans featuring a 60% Loan-to-Value ratio (LVR) with principal and interest repayments.
FirstMac is notable for currently providing a variable interest rate of 6.59% for investment property loans. This applies to clients who opt for interest-only payments and have less than 90% LVR.
Bank of Queensland is offering up to $2000 cashback to your clients who want to refinance their loans. This is for clients with an 80% Loan-to-Value ratio with principal and interest payments.
Heritage Bank is also providing a variable rate of 6.04% for your owner-occupier clients who have an 80% LVR and opt for principal and interest repayment.
Market insights for your clients
National property prices soaring
Average property prices across the nation have continued to surge, despite higher interest rates and cost of living pressures. However, not all markets experienced the same conditions. Looking at quarterly results, Perth, Adelaide, and Brisbane had the strongest growth, while Sydney is in the top four capitals for annual change. Regional dwelling value growth is strong too, at 9.5% over the last 12 months.
Auction season kicks off strong
Meanwhile, auction results are off to a hot start for 2024. Property analytics firm CoreLogic said the 1671 auctions held in capital cities last week was the second-biggest start to the auction season since it began keeping records in 2008. Melbourne hosted 603 auctions, while Sydney saw 562 homes go under the hammer in January. Both markets recorded clearance rates above 70%, which is welcome news for sellers.
Rising rental rates
The news is also good for property investors. Inflation might be slowing, but rent prices rose 7.1% in the 12 months to November, way higher than the consumer price index, reflecting low vacancy rates and a continuing tight rental market.
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