Looking for approval?
It might be reassuring to hear that the Australian Bureau of Statistics (ABS) has shown 2014 home loan approvals are off to their strongest start in five years.
So far in the first two months of 2014, 13 per cent more home loans were approved than the same time in 2013. The data also showed it’s the highest total of January and February approvals since 2009. Homeowners and buyers are returning to the market and they’re building momentum.
52,460 home loans were approved in February, a two percent rise from January, and with February being the shortest month of the year, approvals for March and April could set new records. In the shortest month of the year there were only 227 fewer home loan approvals than the best month in 2013. Considering this, we expect to see demand for finance growing and reaching new highs throughout 2014.
With no clear indication on where rates are going to head next, you can benefit from the rate stability and banks aggressively competing for new business. Without the cash rate moving, banks and lenders are offering other incentives to get new customers, such as cash back offers.
Fixed rates haven’t been this competitive in years. Lenders are adjusting rates in opposite directions for different rate terms - for example the longer you fix your rate for, the lower your rate might be. The long period of rate stability has been great for more cautious consumers.
We’ve seen many buyers take up variable rates because of their relative stability over the past year, while retaining their flexbility - it can be easier to build a budget around repayments that are stable.
If you’d like to know more about what’s happening in the market at the moment, call me to make an appointment. I’ll talk you through the finer points of finding the right loan for you, or refinancing your current loan to take advantage of the favourable conditions.