Well 2019 will certainly be a year to remember with respect to housing interest rates in Australia. The RBA have declared our official cash rate will hold this month at 0.75%. That means we are currently offering home loan interest rates in the high 2’s or early 3’s. - lower than what the country was experiencing before the great War (some 100 years ago)! For borrowers, record low interest rates continue to make property investing an attractive form of wealth creation, however in some areas, it is also creating a false sense of security with many selling agents spruiking low interest rates means you can bid higher because you can borrow more! First homebuyers continue to take advantage of stamp duty exemption and reductions yet the residual effect of the Royal Commission recommendations into banking practices is making borrowing tighter than ever and this often throws a proverbial spanner and unwanted anxiety in the works for some applicants due to very tight scrutinising and assessment of loan applications. Very tricky times in lender land, we can tell you…...
 
First Home Buyers

On 1st January 2020, a new government incentive to help first home buyers into the market comes into effect. At the time of writing, details were still patchy with various interpretations of what and how this will work and the benefit to first home buyers. Hopefully, this will be positive news for young borrowers helping them get into the market. We shall report on information as it comes to hand in our regular newsletters.       

Our Year in Review

At VFS, we had some internal changes through the year and continue to do what are passionate about - simply helping borrowers take control of their finances and save money by making sure they have the right home loan package in place at the right rate. We have been able to assist new Australian families purchase their first homes, up-graders get into their next property, finance a handful of new constructions and help many investors improve their overall financing portfolio. It’s been a busy year and we have enjoyed every moment!

The most commonly asked question throughout 2019 was ………

What happens when the cash rate gets to zero?

The standard answer was …..

We simply have no idea……. this is new territory for everybody and we never thought we would ever see rates this low in our lifetime!

We would like to take this opportunity to thank all of our borrowers, investors and partners throughout 2019 for choosing VFS and for your continued support. We wish you all a warm and prosperous festive season filled with love, laughter and fun times. May 2020 bring everyone good health and everything that you could possibly wish for.

And most importantly, just as we do at the end of every year as the new year approaches, we give you a gentle reminder to make time to get your finances in order. Please call me on 0438 041 111 to arrange a confidential discussion early in the new year and get the ball rolling.

As always, enjoy life, work hard, play safe and remember that we are always here to help you
 
‘Take the Confusion Out of Lending’
 
All the best
 
Peter Vinci - 0438 041 111