Home Loans Changes of 2016 - Are you ready?
I hope you've have a good year of health and wealth. Certainly if you own property on the east coast of the country you would have experienced a little wealth gain over the last 12 months considering this time last year there were talks of a major slow down.
Change has been a huge theme throughout the world this year, and for home and mortgage holders change is something we certainly got in the last 12 months! Just to recap some of the many changes:
- Early in the year we saw the reserve bank drop rates, and the banks held back on passing part of this on
- Following this, a bunch of other changes were put in place by lenders to slow down investment growth
- Regulation pressured lenders to reduce the amount of funds they could lend investors by enforcing harsher requirements (Still in place)
- Banks increased rates on investment lending (Starting to ease)
- In more recent times, some lenders are increasing rates on interest only loans which appears to be the next focus (Starting to happen)
- Offshore lending became a focus as banks started to reduce their exposure to lending for overseas buyers leaving some buyers stranded if they bought off the plan
- Lenders open the flood gates to attract new business mid year. Maximum discounts being offered for new refinance, cashback offers of up to $1500 to bring over new loans. This has now scaled right back in terms of rate discounting for most lenders
- Fixed rates start to increase with several major banks increasing fixed rates up to 60bps citing increased funding costs
More importantly if you have an investment home loan but have moved into your home you could very well be entitled to a lower interest rate. If you have an interest only loan and prepared to pay principle and interest you may again be entitled to renegotiate your loan.
If you are not sure, feel free to connect with me via
All the best and wishing you a Merry and Safe Xmas this season.