Happy Holidays - Time To Close Off Another Year!
The year has flown by in the blink of an eye! For borrowers, interest rate stability and record low interest rates continued to dominate throughout the whole year. First homebuyers have taken advantage of stamp duty exemption and reductions plus we’ve seen the infamous Royal Commission looking into banking practices and wanting to propose major changes. We have also witnessed the official RBA cash rate remain at 1.50% with many economists now actually scratching their heads in disbelief not really knowing what to forecast over the next 2-3 years.
First Time Borrowers
First time borrowers made the most of the stamp duty savings which came into effect on 1st July 2017 – so whilst the new ruling saw some pockets of the Melbourne market initially inflate sale prices above true market value, the ever obvious market correction these past 6 months has been a great benefit for many first home buyers.
Our Year in Review
At VFS, we continue to do what we love doing, and that is simply help borrowers take back control of their finances and help them save money by making sure they have the right home loan package in place at the right rate. We have been fortunate to help people from all over Australia (and abroad) secure their place in the Australian property market. We’ve also been able to assist newly-arrived families purchase their first homes, help up-graders get into new properties and numerous investors improve their property financing portfolio. It’s been consistently busy and we have enjoyed every moment!
The most commonly asked question throughout 2018 was ………
Why are fixed rates higher than variable at the moment?
The standard answer was …..
With no shift in the cash rate for coming up to two years, banks are buying money cheap so fixing is not a cost-effective option for them, however this will change again, it’s a cycle that often repeats - (When variable rates are high, fixed rates are low)
We would like to take this opportunity to thank all of our borrowers, investors and partners throughout 2018 for choosing VFS and for your continued support. We wish everybody a warm and prosperous festive season filled with love, laughter and fun times. Here’s hoping 2019 brings everybody good health and everything that you could possibly wish for.
And most importantly, just as we do every year, with 2019 approaching, remember 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’
Peter Vinci - 0438 041 111