There are some promising signs lately for the market moving forward for me as a Mortgage Broker and for you as a Borrower.
Firstly it seems that Fixed Interest Rates are falling across the board. Personally I’ve always considered these as forward forecaster for where variable rates will go. If fixed rates are going up, variable will generally follow a few weeks/months later and vice versa when they start to fall.
To me this has to be good for the economy. I’m no Economist by any stretch of the imagination, but lower rates you would think can only help.
The next positive I’ve seen this week is that we now have a lender doing 97% loans with only 3% genuine savings, plus they will also then add on the Lenders Mortgage Insurance. This is another positive sign. It’s not for everyone and there are pretty strict guidelines for it but it’s another step in the right direction. All other lenders out there are only doing 90-95% loans which obviously mean bigger deposits. The lesser deposit requirements at least mean a few more people have a chance of getting into their first home instead of paying the ever-increasing rents out there.
Obviously these are just my thoughts and opinions, but as a Mortgage Broker it does excite me to see some positive moves instead of all the negativity from the banks over the last 2 or so years. Business is picking up week-by-week which is a great indicator and it is nice to see First Home Buyers returning to the market also.
Onward and upward!