Interest rate outlook – the news is good

“Will rates rise?” It’s the question all home owners are asking following intense speculation in late 2017 that a rate hike could be imminent.

James takes a measured view, saying, “We’re certainly getting mixed messages about interest rates, and while most economists are leaning to a rate rise towards the end of 2018, jobs growth will be the thing that decides how rates move. Overall though, I see 2018 as a year of stable interest rates – subject to any unforeseen event.”

Your home loan – get it checked out

Rates may be on hold but there’s no room for complacency.

James describes today’s mortgage market as “the most competitive I’ve ever seen. Lenders are offering more features, competitive rates, and they are eager for your business.”

“I urge anyone who’s had the same home loan for two or three years to organise a home loan health check to be sure your mortgage is keeping up.”

He adds, “In my opinion, 50% of home owners who’ve had their loan for a while could get a better deal if they had their mortgage reviewed by a broker.”

Could you be the one in two who could secure a better deal? Talk to your Aussie Broker to find out.

The property market – conditions vary

“There’s no such thing as a single property market in Australia,” says James. “The fact is, we have lots of different micro markets and conditions vary widely between them.

“Queensland is definitely one to watch. The Gold Coast in particular is seeing solid growth, and while in Brisbane there are a lot of apartments compared to people, the city is enjoying solid growth so it’s not a long term problem.”

He adds, “Sydney and Melbourne will continue to be property powerhouses over the long term. Migration, especially into Victoria, will really pump up ongoing demand for housing.”

According to James, the property markets in Tasmania and Canberra are “doing really well” and even Western Australia, which copped the brunt of the resource sector slow down “is starting to stabilise and pick up.”

Meanwhile, he says the South Australian market is “very stable, with constant, quality growth.”

To know more about property market conditions in your patch, give your Aussie Broker a call to tap into the latest data from industry heavyweight CoreLogic.

Investors – follow a plan

In 2017 we saw banking watchdog APRA introduce new initiatives, leading to a clampdown on investor lending, and subsequently, higher rates for investment and interest-only loans.

James points out, “APRA put these rules in place for consumer protection. By using regulatory levers APRA was aiming for a more normalised real estate market. Moreover, the lifting of rates for investment loans put the issue of responsible lending firmly in the spotlight and that’s a good thing.”

So what can investors expect?

“Look, in many parts of Australia – especially the east coast, the property market remains buoyant,” says James. “But now is not the time to invest aggressively. Rather, it’s a time to be investing according to a plan – one that addresses how you will manage your loan over the longer term.”

Consumers are in a good place

The upshot of it all is that the home loan market is competitive, and James says “This continues to put consumers in a good place. Yes, property prices will soften in some areas and strengthen in others but there’s nothing to indicate any material change.”

He sums up by saying, “Mortgage broking is all about giving consumers a good deal, and taking advantage of that commitment can help you make the most of all that 2018 has to offer.”

Talk to your Aussie Broker to see how you can benefit from today’s competitive mortgage market.