Usually around this time of year, as the days get lighter, longer and less chilly, and the flowers start to come out, people get a bit busier with regards to buying or selling their houses.

We can expect to see the usual promotions from the banks offering this deal or that deal, to capture market share. With heaps of media around that, get in touch with us to have a chat, and let us help you to weed out the right solution for your needs, whether it is a new home for yourselves, or a new investment property… Here are some interesting things to note:

Lending Criteria

Banks appear to be “cherry picking” deals at the moment, providing good service levels to 20% depositors with good serviceability (easily meet repayments), and not spending a lot of time on marginal deals that don’t tick their box.

For those that don’t have 20% deposit, there are heaps of options, and some banks are lending in this area. One bank in particular will offer 5% deposit home loans, where there is low levels of “other debt” and good household income

Interest Rates

Banks have dropped their fixed interest rates recently for clients who have at least 20% equity in their property, so we can see some very low 4’s% for the 1 year fixed terms and we can now see an under 5% interest rate for 5 year fixed. There used to be an old saying in the bank “If you can get a 5 year fixed rate under 6%, then grab it”. This can provide certainty of repayments for some families.

Incentives

We are still seeing a range of incentives offered by the banks, this is offered on a case by case basis depending on the amount of lending and the LVR

Over the last few months our average loan size has been $380,000.

This would normally attract approximately $2000-$3500 in cash contributions, if the LVR was under 80%, conditions on repayment of this apply if the loan is paid off within 2-4 years depending on the individual bank. Ever deal is assessed on a case by case basis.

This would apply if you are selling your home and also re-structuring the debt, or repaying in full completely (lotto etc)

Non Bank lenders

Heaps of options for those people that don’t fit normal bank criteria. Typically, a good solution for asset rich and cash poor customers, looking for a short or long-term solution to their needs, bridging finance for example.

These guys charge fees and have higher interest rates. The rates can be anywhere from 0.5% – 6% greater than what you can get at banks. So, lets have a chat about that, to ensure it makes sense for you, given every other financial factor.

Unsecured Lending / Personal Loans

We are experiencing excellent turn-around times with the lenders we work with. Interest rates are from 9.99-15.75%. These are priced on a case by case basis. Debt consolidation can make sense when you are preparing to apply for a home loan, as it can shrink your outgoing expenses, freeing up your incomes for buying that house you want.