1. Home loan repayments to increase
The financial markets expect the RBAto start putting up rates in 2018. This means repayments could also increase, typically by $50 for every 25 b.p. rise on a $400,000 loan. With any rate rise, borrowers are likely to turn to brokers to ensure they are getting the best deal possible. #HomeLoan #Mortgage
2. Property prices to cool
Banking regulators want to see a slowdown in house price growth, and that’s what we expect in 2018. Limits on investor and interest-only loan growth may remain for the foreseeable future, which may continue to dampen investor activity and cool property prices. We’re already seeing this intervention starting to take effect. Brokers will continue to play a critical role in explaining the ever-evolving regulatory changes affecting property investors and advising them of the best lending options available.
3. More borrowers may switch loan type
The big switch is on in the mortgage market. In the past six months, the number of interest-only loans held by the banks have dropped by around $36bn, according to APRA. The trend of switching to principal and interest loans may continue in 2018, and is an important transformation that brokers can continue to assist their clients with. #Loanswitch #refinance
4. First home buyers to make a comeback
With investors taking a step back, first home buyers may find more opportunities in 2018. They will continue to benefit from competitive interest rates, new concessions (if eligible) and ample apartment stock, although checks should always be made to ensure quality buys. With more first home buyer activity, brokers may expect to spend more time with their first-timer clients, coaching them through the journey as they get their foot in the door. #firsthomebuyer #firsthome #newhome
5. Upgraders may continue to renovate
We’ve seen a substantial increase in renovation loan applications in 2017, a trend that we’re likely to see well into 2018 as home owners choose to renovate over moving. Upgraders are avoiding exorbitant moving costs such as stamp duty. We’re seeing some more top-ups as people take advantage of lower interest rates and leverage the extra equity in their property in order to finance renovations. #Renovation #InterestRate
6. Owner occupiers to win from competitive lending rates
With limits on investor and interest-only growth, banks are competing over a smaller piece of the lending pie, and are offering some great deals for owner occupiers. Brokers may see more consumers take action, stimulated by heightened advertising activity among banks. #ownerOccupied #HomeOwner
We are 30 years ahead of schedule, in the least favourite category – Population. Sydney is the most favoured hub in the Asian Region as a stable economy and a great place to live. #Sydney #NSW #Population #Visa#migrants
Sydney’s projected population increase over the next 20-years will be driven almost entirely by net overseas migration (i.e. 1.53 million or 77,000 people a year). We need to become a little bit more nimble and flexible with Family Visa, allowing other familywho live here to help the new comers.
We want to help the #FirstHomeBuyers – some who are born here, but now there are many who have migrated here. Banks are still using the same old credit methodology and the yard stick, for good credit. We need for all types of people to coexist – some who may never take on a mortgage but may buy a luxury car if they buy a car at a higher rate. Some people will work well into their 70’s, so they should be allowed to look at a 25 year loan term at age 50.
Responsible lending must and should exist, but so should options. Please comment as I am very keen to see some level of change in the products being offered in the market place.
I am a migrant, Australia is home and I wantto see it thrive, but we certainly need something more after the Mining boom.
Maybe like #ElonMusk says - we can produce energy and sell to China.
What do you think? Let me know at 0425 341 086. Read more on my Facebook Page.