More guidance and education needed for buying a house
Property owners and prospective first home buyers are increasingly in need of more guidance and education on home lending.
Borrowers are uncertain
Despite the stable cash rate, borrowers should still wary of any potential hike in their borrowing costs.
In the post GFC era lenders have frequently adjusted home loan rates independently of movements in the official cash rate. This has been done to help ensure that their lending rates more accurately reflect their true cost of capital.
Clear guidance and education is needed
While industry guidance is great, having a trusted professional (that’s us!) watching out for market changes on your behalf is even better.
That’s because over the last couple of years there has been an additional degree of complexity in the home loan market – and we can help decipher what that all means for you.
Lenders have been squeezed by regulators which led to a degree of credit rationing and higher borrowing costs for investors. This also negatively effected those wishing to borrow interest only loan terms.
Why were lenders squeezed?
A while ago the Reserve Bank introduced a range of measures that tightened lending standards to curb growth in risky lending.
The Reserve Banks interventions are viewed by most as appropriate at the time that they were implemented. However the housing market is now in a very different position. We have already seen the LVR on property investment lending dropped and other restrictions change for first home buyers.
It will be important for the Reserve Bank to monitor developments in the housing market. This will ensure that we have appropriate policy settings to ride out any cyclical changes smoothly.
Want some guidance and education?
Now more than ever borrowers are needing someone to help guide them through uncertain and changing lending times.
That’s where we can help. We have our ear to the ground when it comes to all industry movements, which means you don’t have to stress about doing so.
So if you’d like to find out more about how we can help you navigate the tricky lending times ahead, get in touch today.
Either give us a call on 0800 55 76 54 or book in a time using the below button:
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.