Results Home Loans
January 2024 Update
What’s been going on this month?
Stay current with Results Home Loans and any updates in the market
Rate Movements
As of 08 November 2023, RBA lifts rates by +0.25 bringing Cash Rate to 4.10%.
RBA Cash Rate in February 2014 was 2.50%.
Westpac
Peak of 4.35% in November 2023, then dropping to 2.85% by December 2025
NAB
Peak of 4.35% in November 2023, then dropping to 3.10% by November 2025
CBA
Peak of 4.35% in November 2023, then dropping to 2.85% by June 2025
ANZ
Peak of 4.35% in November 2023, then dropping to 3.60% by June 2025
CURRENT INTEREST RATES FOR HOME OWNERS
Based on a $500,000 loan over a 30 year term at 80% LVR with Principal and Interest repayments.
CURRENT INTEREST RATES FOR INVESTORS
Based on a $500,000 loan over a 30 year term at 80% LVR with Interest Only repayments.
Lender Turnaround Times
As at 25/01/2024
Under 24 hrs
2 Days
3 + Days
Are investors set to make a return in 2024?
More investors are being encouraged to enter the property market as tight market conditions persist.
Rapid growth in rents and a shortage of rental properties have stimulated more investor activity, with the number of investors taking out loans for property still sitting above pre-COVID-19 levels, new PropTrack data has revealed. The surge comes following a drop in investor activity in 2022 and despite higher interest rates.
According to PropTrack, many investors began selling off their properties in the last few years due to the significant uncertainty about the economy brought on by the pandemic due to border closures. However, investor activity has been back on the rise the past few months.
“The re-emergence in investor activity in 2023 heralds good news for the overall health of the market. This will help to drive more new construction, which will slowly rebalance supply and demand in the rental market,” PropTrack senior economist Paul Ryan said.
Indeed, the latest Lending Indicators data released by the Australian Bureau of Statistics has revealed that the value of new loan commitments for investor housing rose 1.9 per cent in November 2023 to $9.7 billion, bringing it 18 per cent higher than the same period in 2022.
Members of the broking industry have told The Adviser that they are also anticipating investor lending demand to be strong this year.
Speaking to The Adviser, mortgage broker and owner of Mortgage Choice Berwick, David Thurmond, stated that there’s “a lot of interest from investors because there’s a correlation between the top of the rate cycle and an increase in property values”.
Case study
Overcoming Financing Challenges for Construction Enhancement
We recently encountered a unique financing challenge while assisting our clients, who had sold their primary residence to fund the construction of their new home on a recently acquired block of land in Lakes Entrance. The clients, now residing in a rental property, sought additional funds of $176k for various construction elements, including a pool, fence, solar installation, and landscaping.
We approached several financial institutions to explore financing options for our clients. The responses varied, highlighting the complexity of securing funding during the construction phase.
While Westpac initially presented a mixed response, further engagement with the credit team revealed a potential pathway for approval.
An exception was provided, and specific supporting documents were outlined, including a building contract, a letter from the builder detailing completed and pending stages, evidence of funds, and quotes for non-structural work.
Navigating financing during the construction phase poses challenges, but careful consideration of lender responses and a tailored approach can unlock solutions. In this case, Westpac’s conditional approval process demonstrates the importance of thorough documentation and engagement with the credit team.
Through persistent efforts and effective communication, we successfully resolved the valuation issue. The bank, now equipped with a clearer understanding of the property’s worth, approved the loan application.
This case underscores the crucial role that mortgage brokers play in navigating complex situations and highlights how having a skilled mortgage broker on your side can make all the difference in turning homeownership dreams into reality.
Thank You!
The value of a strong network and reliable partnerships cannot be overstated, and your referrals have not only brought us new business opportunities but have also reinforced the belief that we are on the right path to providing exceptional products and services to our customers.
So we wanted to take a moment to express our deepest appreciation for the outstanding support and collaboration we have received from you as our referral partner.
Your willingness to recommend our company to your own network speaks volumes about the trust you place in us, and we are honored to have earned such trust.
We truly appreciate the effort you put into every referral. Please know that we are always here to reciprocate your kindness and support. Should you ever require assistance or need a reliable partner for any venture, please don't hesitate to reach out to us.