Black and White Finance update - April 2017
To keep our family, friends and clients ahead of what is happening in the market for April 2017 see below.
Changes to be aware of:
- There are still a few lenders allowing you to apply cheaper owner occupied rates to both owner-occupied and investment loans, meaning you can get owner occupied rates for your entire portfolio of residential home loans. For these lenders, it is not about the purpose but the security that determines the product and therefore the rate.
- Interest only rates on home loans are more expensive, in comparison to principal and interest repayment rates.
- The major banks have rate hiked out of cycle and will again, most likely in the future.
- Living expenses are something that each application needs more detail around, along with detailed reasoning for proceeding with interest only as a repayment type.
- Fixed rates are becoming more attractive, some lenders offering 3.99% fixed for 3 years for both investment and owner-occupied loans as long as the repayments are made on a principal and interest basis.
The banks are continuing to monitor serviceability of loans very tightly and are taking a very risk adverse approach here. This is making it even more difficult for people to get into the housing market even if they have the deposit saved or help from family. Experienced brokers are more important than ever at the moment.
Always feel free to ask any questions and if you think of anyone else we may help, please pass on my details. I'd really appreciate that as referrals are very important to my business!
Peter Vassilis
Black and White Finance