Lending update – April 2021


Lending updateEarlier this month the RBA again reinforced its view that the cash rate will not be increase until at least the year 2024.




This continued view appears to have translated into further falls in interest rates at most lenders across the board. Lenders are rewarding safer, or lower loan-to-value ratio (LVR), borrowers with lower variable rates. Additionally, fixed rates still continue to slide with many lenders now offering fixed rates from 2-5 years under 2%.

This flood of low rates shows that banks continue to compete more and more with each other for business, however the time from submission to actual processing of an application is still at all-time highs. Clients can be left waiting for weeks before a response, however cash-back offers continue to be extended with many lenders now offering $3-5k for clients to make the swap.

With lending volumes at all-time highs, the RBA has hinted that it will be ‘monitoring trends in housing borrowing carefully’. Anecdotal reports from buyers in capital cities like Sydney are that open houses have queues out the door and the average number of days on market is shrinking as buyers rush to snap up any stock on the market. Valuations of existing properties have also started returning higher than expected which all points to early indicators that the market is heating up towards the predicted 10% gain in prices this year and again next year.


This information and any advice in this website is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, property, tax, credit or personal financial advice and should not be relied on as such. You should obtain advice relevant to your circumstances before making decisions in relation to any matters discussed. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. The case studies are hypothetical, for illustration purposes only and are not based on actual returns. You should seek specialist advice from a tax professional to confirm the impact of any advice on your overall personal tax position. Taxation information is based on our interpretation of the relevant laws as applied at the date of this communication. Nothing in this website represents an offer or solicitation in relation to property, securities, investments, financial services or credit in any jurisdiction. While every care has been taken in the preparation of this information, it may not remain current after the date of publication and Infocus Advisory and its related bodies corporate make no representation as to its accuracy or completeness.