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The Bond Market Says Your Home Loan Rates Will Fall

Normally if you are going to lock your money away for a period of time you would expect to get a higher return. Same as if you are looking for a fixed rate home loan, the longer the time frame the higher the rates should be as an offset of time and risk. The bond market is the same, long term rates should be much higher than short term rates to take into account the same dynamics.

Currently 1 to 10 year bond rates are below or at the Target Cash rate set by the Reserve Bank of Australia. The cash rate is 4.10% while the 5 year bond rate is 3.875% . Normally it should be between 0.25 and 0.75% above the rate depending on the market outlook and is actually currently 0.225% below the RBA’s target cash rate. Like wise all the medium term rates are below the target cash rate set by the RBA, for example the 1 year rate is 3.97% , 0.013% below it while the difference between 10 Year Bond rate and cash rate has dropped to zero.

This normally means that the market expects to see interest rates drop. A little in the next year and possibly more in 2 to 10 years.

Bond Market Says Home Loan Rates Will Fall

Bond Market Says Home Loan Rates Will Fall

What does this mean for you as a home owner or potential owner? It means that home loan interest rates could possibly have peaked and some relief is on the way. It can also mean increased activity and prices as historically when interest rates fall, property prices increase. This is to some extent why we have seen the increase this year in prices in metro centres as buyer are trying to “get in” before the price rise happens which has been exacerbated also by a lack of supply, especially in new home construction.

If you want to avoid the stampede that happens as rates go down, now may be a good time to think about getting your finances in order and planning your next real estate move, whether it’s your first home , an upgrade or another investment property .

For a free assessment with your Origin Finance broker call 1300 30 67 67 or fill in the enquiry form on this page.

Early Spring Selling Season Sees Dramatic Increase in Available Property to Buy in Sydney and Melbourne, Now is the Time to Get Preapproved for a Loan as Demand is Increasing to Match Activity as People Fear Missing Out on the Next Boom

The early spring selling season has gotten off to a strong start in Sydney and Melbourne, with a dramatic increase in available property to buy. This is good news for buyers, who are now spoilt for choice.

There are a number of factors that are driving the increase in available property. One factor is uncertainty about interest rates. As interest rates rise, it becomes more expensive for homeowners to borrow money, so they are more likely to sell their homes. Another factor is the pent up demand from sellers wanting to take advantage of the solid buyer demand to upgrade or down size so they are more likely to list their homes.

The increase in available property is particularly pronounced in Sydney and Melbourne. These two cities have been the most affected by the recent property market downturn. As a result, there are now more homes available for sale in Sydney and Melbourne than at any time in the past few years.

This is good news for buyers, who are now in a stronger position to negotiate a good deal. However, it is important to remember that the property market is still volatile, so it is important to get preapproved for a loan before you start making offers.

Getting preapproved for a loan will give you an idea of how much you can borrow and what your monthly payments will be. This will give you a strong bargaining position when you are making offers on properties.

It is also important to keep an eye on the interest rates. If interest rates continue to rise, it could make it more difficult for buyers to afford to buy a home. Therefore, it is important to act now if you are thinking of buying a property. If rates fall as is anticipated by the bond market, purchasers can borrow more creating more demand.

In addition to the factors mentioned above, there are a few other reasons why now is a good time to get preapproved for a loan:

  • The lending criteria are still relatively relaxed, so it is easier to get approved for a loan.
  • There are still a good number of properties available, so you have more choice.
  • The competition from other buyers is not as intense as it may be later in the year.

If you are considering buying a property in Sydney or Melbourne, I recommend getting preapproved for a loan as soon as possible. This will give you the peace of mind of knowing that you are financially ready to make an offer on a property.

Here are some additional tips for buyers in the early spring selling season:

  • Be prepared to act quickly. Properties are selling quickly, so you need to be prepared to make an offer as soon as you find a property you like.
  • Be prepared to negotiate. Sellers are more likely to negotiate if they have multiple offers on their property.
  • Get preapproved for a loan. This will give you a strong bargaining position and will make the buying process smoother.
  • Be patient. The property market is still volatile, so it may take some time to find the right property.

By following these tips, you can increase your chances of success in the early spring selling season.

However, there are also some risks to consider.

  • Interest rates are expected to continue to rise, which could make it more expensive to borrow money.
  • The property market could slow down further, making it more difficult to sell your home in the future.
  • There is a risk of overpaying for a property if you buy at the top of the market.

If you are considering buying a property, it is important to weigh the risks and rewards carefully. If you are confident that you can afford the monthly payments and that you are buying a property that you will be happy with for the long term, then now may be a good time to buy.

Ultimately, the decision of whether or not to buy a property is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.

For a free assessment with your Origin Finance broker call 1300 30 67 67 or fill in the enquiry form on this page.

Spring: The Season of Property Sales in Australia – Secure Your Financing for a Stronger Negotiation

Spring is undeniably the most dynamic time for property sales in Australia. As the days become longer, the weather warms up, and nature comes alive, so does the real estate market. If you are a home buyer looking to take advantage of the bustling spring property market, now is the time to get prepared. One essential step in ensuring a smooth and successful home-buying experience is to organize your finance through a mortgage broker. In this article, we’ll delve into why spring is the peak season for property sales, and how using a mortgage broker can give you the upper hand in securing your dream home.

The Spring Property Market in Australia

Spring’s allure as the prime season for property sales in Australia is influenced by various factors:

  1. Optimal Weather: The milder weather and blooming gardens make properties look more appealing, increasing the number of buyers interested in attending open house inspections.
  2. End of Year Move: Families often wait until the last part of the year to move, reducing disruptions for children and allowing them to settle into their new home before the new academic year.
  3. Increased Inventory: Many sellers choose to list their properties during spring, leading to a surge in available homes on the market, providing buyers with a wide range of options.
  4. Motivated Sellers: Sellers who list their properties in spring are often motivated to secure a sale before the year-end, which can work in favour of buyers.

Why Organize Finance through a Mortgage Broker

  1. Expert Guidance: A mortgage broker is a licensed professional who specializes in home loans. They have access to a vast network of lenders and can provide you with expert advice on the most suitable loan options tailored to your financial situation and needs.
  2. Save Time and Effort: A mortgage broker streamlines the application process, saving you from the hassle of individually approaching multiple lenders. They handle the paperwork and negotiation, making the entire process more efficient.
  3. Access to Multiple Lenders: Unlike dealing directly with a single bank, mortgage brokers can present you with a range of options from various lenders, increasing your chances of finding a competitive loan with favourable terms.
  4. Customized Solutions: Mortgage brokers work closely with you to understand your financial goals and limitations, offering personalized solutions that align with your requirements.
  5. Pre-Approval Advantage: By organizing your finance through a mortgage broker and obtaining pre-approval for a loan, you enter the property market with a stronger position. Pre-approval demonstrates to sellers that you are a serious buyer and gives you a competitive edge in negotiations.

Some additional tips for home buyers in spring:

  1. Be realistic about your budget. The spring market can be competitive, so it’s important to be realistic about what you can afford.
  2. Be prepared to compromise. You may not be able to find the perfect property, so be prepared to compromise on some things.
  3. Don’t be afraid to negotiate. The seller is usually willing to negotiate on the price, so don’t be afraid to ask for a lower price.
  4. Be patient. It may take some time to find the right property, so be patient and don’t give up.

Conclusion

Spring is the peak season for property sales in Australia, and it offers home buyers an excellent opportunity to find their dream home. To maximize your chances of success in the competitive spring market, it’s crucial to be financially prepared. Working with a mortgage broker provides you with expert guidance, access to multiple lenders, and a stronger position through pre-approval. So, don’t wait any longer. Take action now to organize your finance and embark on your journey to finding the perfect property this spring!

Call your Origin Broker on 1300 30 6767 or fill in the enquiry form on this page.

 

 

At Origin Finance, We Put You First

Origin Finance is one of Australia’s most respected mortgage brokers. We provide our clients with access to a large panel of lenders with an extensive range of home loan products. Many of these lenders are well-known banks, many others are household names who only lend through brokers; others still are specialist lenders who can meet diverse financial circumstances. Origin helps you make the right home or investment loan choice. Call us today 1300 30 67 67.

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