Late July 2019 in the Top End and the weather is cracking. The dry continues with low temperatures and cool breezes. There are concerns that a late wet is being predicted which will place more pressure on the water tables across the Territory.
To explain the title of this newsletter; interest rates are hitting all time lows. For an update, providing best value interest rate selections, follow this link: https://arafin.com.au/interest-rates. As always, first contact your existing lender and point out that you are a loyal customer and the advertised rate should be the rate that you pay. If they won't come to the party contact us.
So that is one out of three.
Next comes the drop in the serviceability ceiling which is being taken up by more lenders each day. For quite some time Australians have been struggling with an assessment rate of 7.25% or higher. This has meant that potential borrowers have had have a 'take home pay' that would show their capacity to make loan repayments at a value significantly more, than the actual required repayment.
While there is sound logic in not letting people over borrow, by throttling the lending market, the result has been many potential buyers have been locked out of the market.
If previously unable to borrow because of loan size, (often a problem in the expensive market that is the Territory), it could be time to revisit your lending capacity. Drop me a line or call and we can assess your borrowing power under the new serviceability ceilings.
Two out of three done.
The third idea regards the first positive article, not published by those involved in the marketing of real estate, that I have seen in quite a while. To quote: "Commonwealth Bank of Australia, the nation’s largest property lender, claims there are clear signs the residential property market is bottoming and set for a rebound after two years in the doldrums." Read the article in full here: https://arafin.com.au/cba-market-bottoming-out
Not quite three out three
Given the current comments coming from financial institutions such as the Commonwealth Bank perhaps we will start seeing 'green shoots' in the future property market. Great time if you are a first home buyer though. Have a look at the current state of subsidies available here : https://arafin.com.au/first-home-buyer.
For more information on a Mortgage Broker for a Home Loan in Darwin call Nick Kirlew today on 0447 499 794. You can access our Mortgage Calculator here.