Property buyers might be winding down in preparation for the summer break but mortgage lenders are keeping up a hefty pace.
With strong competition across the entire lending market, now could be a good time to review your loan arrangements, either existing or new, to see if there are savings and benefits to be made in this very competitive environment.
We are already seeing evidence of significantly discounted “packaged” deals for borrowers, particularly those refinancing from another institution.
Speculation about new lending restrictions on banks – macro prudential controls – also appears to be further fuelling the competition between lenders. These restrictions could potentially affect both the type of loan products being offered (e.g. interest only) and the type of borrowers (first home, investor etc.). Whether or not these restrictions are ever put in place, it has created a further sense of urgency in the lending markets to lock in current products and customers under existing regulations.
For existing property owners, the upcoming summer holiday period might be a good time to check in with your broker or institution to see what is on offer. For many investors, this is also a good opportunity to access the substantial equity that has been built up and unlock some of those funds for the next purchase.
Until next time,