Home loan market in 30 seconds: Rates are super low
The property market continues to sizzle and home lenders are upping the ante: Low rates are the focus and bonus offers are also on the table. But where do you start?
3 questions first ...
1. Home loans costs are lower than ever but housing prices are mostly higher. How to budget? Start with the first deposit in relation to your likely price point, plus interest rate comparisons.
2. Is it worth locking in my home loan to a fixed rate? Fixed loans seem more favourable now, but be aware of revert rates - they tend to jump up.
3. The property market looks busier than ever, should I wait? This depends on your budget. Areas in high demand and close to CBDs make it hard to secure a bargain and therefore a smaller loan.
The low-down in the remaining 20 seconds ...
Home loans sub 2% interest rate: Since the RBA rate cut in November, home loans starting with ‘1’ are the norm - the majority of sub-2% offers belonging to the fixed rate group. For example, Westpac just slashed its fixed rate loans by up to 20 basis points, a move that has seen them join the sub-2% p.a. club.
Auctions are super busy ahead of Easter: 1,587 capital city homes went under the hammer in the week ending 7 March, with clearance rates coming in at 85% (avg), as per CoreLogic.
Young Australians want property: More than 71% of 14-22 year-olds say they would like to own a home in the future, a national survey by Bankwest shows.
Investors are back and taking out home loans: There's been a 9.4% increase in new investor loan commitments for January, says the ABS. In NSW, that number is at 6.7%, the highest it’s been since June 2018.
Refinancing loans are popular: 472,597 mortgages have been refinanced in the last 12 months, about 8% of the 6 million mortgages in Australia, says the ABS and APRA.
Okay then, need more? We can help answer some of your initial questions right here. Why not start by comparing some of the competitive offers in our home loans hub.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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