Fluctuating Mortgage Policies, Brokers To The Rescue

Published by Otto Dargan on April 21, 2021

The policies in the mortgage industries and the property market movement seem to be constantly changing due to the easing of COVID-19 restrictions.

Banks are changing their rates a lot at the moment, partly to get ahead of any changes that come from the Reserve Bank of Australia (RBA). The fixed rates and variable rates are the lowest they’ve ever been.

But banks are also rolling back some of the COVID-19 measures put in place to encourage lending.

It can be hard to follow these changes and work out which lender is the right option for you.

The lowest rates aren’t always the best option for all borrowers, that’s when you need the help of a mortgage broker.

Regulations may get more stringent

With house prices moving fast, there is a lot of speculation about what regulations could look like if the Australian Prudential Regulation Authority (APRA) or another organisation decides to slow the growth.

Previously, regulations had been targeted at slowing down investors because they were often the reason behind a property bubble. However, the property market growth right now is fuelled by owner-occupiers and first home buyers, so many of previous regulations are not suitable.

We’ll likely see some regulations come into play towards the end of 2021 if prices continue to rise, but we don’t yet know what shape they will take.

Rising interest of investors in apartments?

With Australia transitioning safely into the post-COVID property market, apartments seem to be catching the eyes of property investors.

Buyers are still out there, and they’re still hungry for property. This means prices will continue to rise.

And while apartment prices are not as hot as standalone home or semi-detached property prices, they could be a good option for investors who have access to capital and are looking to buy and hold for long term profit.

If prices continue to fall in the apartment market, keen investors could make their move. However, there could be some restrictions on what lending banks will support if the market is cold.

This again brings us back to our advice for you on using a mortgage broker.

A mortgage broker will be able to review your options and make the best suggestion for investors looking to capitalise in the apartment market slowdown.

Will the government lift the first home loan threshold?

Major banks have predicted that property prices could rise as much as 17% this year.

I strongly support first-home buyer incentives, but we know supply is restricted and the states need to streamline approval processes for land development and residential construction,” said National Australia Bank chief executive Ross McEwan.

With the property prices still on the rise, the government might consider lifting the First Home Loan Deposit Scheme (FHLDS) threshold.

We’ll make sure to give you an update on the FHLDS scheme if the government moves forward with its consideration.

Get into the property market with the help of a mortgage broker!

Having a mortgage broker by your side might be a vital step for you now more than ever. Our mortgage brokers are aware of the current market conditions and work in your best interest.

Call us on 1300 889 743 or fill in our free assessment form to speak with one of our mortgage brokers about your situation.