With the cash rate remaining stable at 6.25%, a historically low rate that has been maintained since November 2006, variable rate mortgages should stay put at around 7.5%. The average fixed rate loan should continue to hover at around 7.3% and 7.5%, depending on the length of the term.
Regardless, potential property purchasers – homebuyers and investors alike – would be savvy to investigate how much money they can actually borrow before commencing their search for a property.
Local Mortgage Choice loan consultant, Anne Sayle said this way borrowers will avoid the disappointment of finding the perfect property and then discovering they can’t afford it.
"I have many customers who find their ideal property then meet with me to apply for a loan and are extremely disheartened to hear they cannot borrow the amount they need for that particular property. In fact, the annual Mortgage Choice Franchisee Survey found that 19% of customers nationally find the property first," she said.
"A loan pre-approval, which usually lasts around three to six months, is a great way to avoid this setback and to save buyers time spent on looking into properties outside their attainable price range.
"Reputable mortgage brokers such as I do not charge customers for service and can provide value to those looking to enter the property market by saving them much of the time, money and stress that can be exerted by visiting many lenders separately.
"It is a consumer service that borrowers can easily take advantage of in order to clarify their pre-purchase financial situation."
Another important point regarding the current property market is that, with super laws coming into effect 1 July 2007, a number of property investors have listed their properties for sale in the hope that they can input proceeds into their superannuation fund.
Some are listing at a lower price than they would otherwise in order to speed up the sale and this is giving prospective property buyers a better chance of finding a suitable property at an achievable price.
With the market looking healthier nationally over the last couple of months, it is a good time for prospective buyers to do their research, obtain a pre-approval and go searching for property in a stable rate environment.
CALL Anne Sayle on 9885 1207 or visit www.mortgagechoice. com.au/anne.sayle.