As we finish off the first quarter of the year, we're here with our latest newsletter packed with updates and practical insights for your clients. Your ongoing support and partnership mean a lot to us as we navigate the road ahead together. Let's dive into what this month has in store!
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 6.64% 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. Commonwealth Bank increased its turnaround time to 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:
Bank of Queensland currently offers a competitive 5.79% 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.
Heritage Bank is currently providing a 5.99% variable rate for owner-occupier home loans featuring a 70% Loan-to-Value ratio (LVR) with 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.
Adelaide Bank is also providing a variable rate of 6.09% for your owner-occupier clients who have an 80% LVR and opt for principal and interest repayment.
Market insights for your clients
REIA confirms WA as most affordable state
The latest REIA Housing Affordability Report indicates that Western Australia remains the most affordable state for housing, although there has been a slight 2.2% decline in affordability over the December 2023 quarter. Homeowners in Western Australia now need 26.7% of their family income to cover loan repayments.
Women and property
In general, females (68.2%) possessed slightly higher rates of dwelling ownership compared to males (67.4%). Among Gen Z individuals, more than half of males (51.6%) own a dwelling, while just over a quarter of females (27.3%) do. Across genders, 14.1% of males own at least one residential investment property, whereas 12.5% of females do.
Impact of COVID-19 on housing trends
Four years after the World Health Organization's COVID-19 pandemic declaration, CoreLogic's Tim Lawless highlights seven significant shifts in housing trends.
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