Results Home Loans
December 2023 Update
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Rate Movements
As of 08 November 2023, RBA lifts rates by +0.25 bringing Cash Rate to 4.10%.
RBA Cash Rate in December 2013 was 2.50%.
Westpac
Peak of 4.35% in November 2023, then dropping to 2.85% by December 2025
NAB
Peak of 4.60% by February 2024, then dropping to 3.10% by March 2026
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 3.35% 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.
Less than 50% of future FHBs likely to use brokers
According to a new report from the Finance Brokers Association of Australasia (FBAA), less than half of future first-time mortgage borrowers are likely to choose mortgage brokers. The study, called Consumer Access to Mortgages 2023, revealed that only around 44% of future first-time borrowers prefer the mortgage broking channel. The majority, 56%, favor the proprietary channel, including existing relationships.
The research, conducted by Agile Market Intelligence and based on 1,263 responses, highlights that people aged 30 to 39 are most likely to use a mortgage broker (56%), followed by those in the 40–49 age group at 49%. Meanwhile, those over 60 and between 50 and 59 prefer the proprietary channel (70% and 55%, respectively).
Respondents mentioned ease and convenience as the main reasons for choosing their preferred channel. The FBAA sees this as both a challenge and an opportunity for brokers, emphasising the need to educate and reach first-time borrowers.
The report also notes that broker client loyalty is higher than in the proprietary channel, and mortgage broking has a higher rate of extremely satisfied clients. Additionally, the research indicates that 41% of Australians have experienced a worsening financial situation in the last 12 months, with 10% believing it significantly worsened. About one in three Australian mortgage holders may be facing mortgage stress, with repayments exceeding 30% of household income. Rising costs and the highest interest rates in a decade contribute to this stress, and the FBAA suggests that relief is needed for affected borrowers.
Case study
Overcoming Valuation Challenges with Precision and Expertise
Our clients were looking to secure financing for their property with ample land. The couple faced repeated setbacks in their loan application process. The primary hurdle was an unexpected issue with the property valuation.
The valuation report noted the land size in hectares, whereas the unit of measurement in the region was acres. This discrepancy led to a series of loan rejections from the bank, causing frustration and uncertainty for the clients.
Recognising the crux of the problem, we initiated discussions with the valuation team, seeking to rectify the misunderstanding promptly.
We engaged in extensive conversations with the valuation team, providing additional context about the property and emphasising the need for alignment with the correct measurements. We kept out clients informed about the progress and allaying their concerns.
Understanding the nuances of the valuation process, we bridged the communication gap between the valuation team and the lending institution and we highlighted the property’s value beyond the measurement discrepancy.
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.