After retreating during the early stages of the pandemic, it appears that investor interest in the property market has come roaring back. At least, that’s the picture painted by the latest home loan data from the Australian Bureau of Statistics (ABS).
Australian homeowners are continuing to pay a high price for their loyalty, with the latest figures from the Reserve Bank revealing that interest rates on existing home loans are currently 39 basis points higher, on average, than they are on new loans.
According to a recent survey of 2,000 Australians done by NAB, 42% of recent home buyers moved to improve their new working from home lifestyles.
When the head of the nation’s biggest bank, CommBank, publicly admits that profits are being ‘shredded’ due to intense competition from rival lenders with ‘cut price’ mortgages, it’s time for big bank home loan customers to take stock.
Buying property in Australia has become a growing obstacle for many first time home buyers. That’s why so many Aussies now consider buying with a family member, CommBank research shows.
Well Home Loans has taken pole position as the mortgage lender with the lowest variable home loan rate (80% LVR) being tracked in the Mozo database following a rate cut last Friday.
ING has made a number of changes to its home loan suite today, cutting variable rates by as many as 25 basis points while also hiking fixed rates across 2, 3, 4, and 5-year terms.
Anyone looking to refinance or move up the property ladder has a smorgasbord of options available to them nowadays, but one major bank lender is going out of its way to stand out from the pack. HSBC has cut the variable rate on its popular Home Value Loan to an ultra-low 1.97% (1.98% comparison rate*) for borrowers with 30% deposit or equity.
ANZ has become the latest big four bank to reduce a variable mortgage rate in recent weeks, announcing a 23 basis point cut to one of its basic home loans this morning.
The Australian Prudential Regulation Authority (APRA) has announced that future property buyers will have to prove that they can repay their mortgage if rates rise by 3%.