The wait time to process an application continues to grow, but this does not appear to have put off borrowers with application levels at all time highs. Lenders are doing their best to encourage borrowers with all-time low interest rate and many have announced an extension to their cash-back offers. Savvy borrowers can pocket up to $4000 from lenders just by swapping their home loan to a more competitive lender/product. Many lenders are now offering interest rates starting with a two which seems to further encourage borrowers to make the switch.
During this past 12 months of uncertainty, borrowers have turned to their brokers in record numbers to find a suitable home loan. A September quarter 2020 study by CoreLogic has found that more than 60% of all residential home loan settlements were completed via a broker. Considering a broker’s unique position to consider a fair cross-section of the market, and fight for a fair price this is not surprising.
At the end of 2020 CoreLogic reported a +3.73% change in the Sydney Home value index with buyers seemingly unperturbed by the COVID downturn. Owner Occupiers and Investors alike are all reporting a shortage of stock with many industry watchers predicting a bumper year for house prices in 2021 as the new year starts to see even more properties put onto the market. Hopefully the momentum from the end of 2020 can be resumed in 2021.
Please contact the Infocus Lending Advisory for any questions or further information regarding your mortgage and lending requirements.