Results Home Loans
March 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 19 March 2024, RBA has decided to leave rates unchanged, keeping the Cash Rate at 4.35%.
RBA Cash Rate in March 2014 was 2.50%.
Westpac
Peak of 4.35% in November 2023, then dropping to 3.10% 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 15/03/2024
Under 24 hrs
2 Days
3 + Days
Industry News
How borrowers are faring with arrears
Recent data indicates a rise in mortgage arrears. Moody’s Investors Service has reported an increase in mortgage delinquencies, with ‘prime-quality’ home loans over 30 days in arrears rising to 1.62% in December 2023. Additionally, the Council of Financial Regulators notes a surge in hardship applications.
Overall broker insights:
* Loan Market Geelong note impacts on dual-income families and those facing maternity leave.
* Mortgage Choice Berwick suggests strategies like budgeting and refinancing.
* Social Financial observes clients selling properties to manage finances.
* Yellow Brick Road Earlwood emphasises the importance of constant client communication and reviews to address financial strains.
We expect a quite month from the RBA
Mortgage brokers are expecting to see the Reserve Bank of Australia (RBA) continue to hold the cash rate steady at 4.35 per cent in its second monetary policy meeting of the year (19 March).
Although RBA governor Michele Bullock stated after the February monetary policy meeting that interest rate cuts may occur before inflation returns to target, the consensus among the market, economists, and brokers still sees a rate hold in March.
Case study
Bridging Loan
Alice and Chris, a couple looking to upsize their home reached out to us last year unsure of their options and not knowing what their home may sell for or when.
They had found their dream home however they needed to sell their existing home to finance the purchase of their new home.
After detailed discussions, we tailored a bridging loan solution for them to provide the necessary funds to bridge the gap between the sale of their existing home and the purchase of the new property.
As such, Alice and Chris were able to put their current home on the market while simultaneously making an offer on their dream home. This looked a little like this:
- Existing property value $1m – $1.1m
- Existing home loan $445k
- New Home Purchase Price $1.15m + Costs ($70k)
- Interest capitalised over 12 month bridging term (no repayments)
- End debt (once existing home sold) of $732k which included a buffer for renovation costs
This meant we could restructure their application from a bridging loan to a standard home loan prior to settlement.
Although the bridging loan was not needed in the end, the option to have an approved bridging loan in place meant that Alice and Chris had peace of mind throughout the process and did not have to stress about having their home sold in time for their upcoming settlement.
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.