Home Loans unbeatable deals still exit

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Home Loans unbeatable deals still exit

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Home Loans unbeatable deals continue to exist , you just need to know where to find them. Mortgage Broker What If We Finance believes whether you are an owner occupied borrower or property investor great deals still exist.

However, there have been considerable changes in the market and this means a competitive borrower from 2 years ago may now be not as competitive. Some of the changes that have occurred include:

a. higher interest rates for interest only loans
b. tightening credit criteria
c. higher interest rates for property investors

While these changes have impacted the market there, What If We Finance advises the increased competition for your business means certain lenders will aggressively compete for your business and great deals can still be found.

Why the Changes?

APRA was one of the primary catalysts for the changes in the home loan market. APRA advised lenders late 2014 that changes are required to address the following key areas:

  • higher risk mortgage lending — for example, high loan-to-income loans, high loan-to-valuation (LVR) loans, interest-only loans to owner occupiers, and loans with very long terms;
  • strong growth in lending to property investors — portfolio growth materially above a threshold of 10 per cent will be an important risk indicator for APRA supervisors in considering the need for further action;
  • loan affordability tests for new borrowers

To use APRA’s words more supervision is required of lenders to ensure “sound lending practices” are required.

While these changes are in way a bad thing lenders have reacted differently based on the outcome of their review and this means it is time for you to review your home loan.

So what should you do?

Contact your mortgage broker today if any of the following items apply:

  • you have not reviewed your home loan in the past 18 to 24 months then do not wait
  • you are paying more for interest only borrowing then time for a home loan review
  • you are a property investor
  • your fixed rate home loan is about to expire

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