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Media Releases
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| -- HOMEBUYERS SHOW POSITIVE START TO NEW YEAR-- |
| Comment by Finance Consultant Les Scott |
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The New Year has kicked off well for homebuyers with our Home Loan Service showing a distinct increase in activity in home loan inquiries from a range of homebuyers. These inquires are coming from a cross section of people including First Home Buyers, those upgrading to new owner occupied homes, home renovations, refinancing and investors.
First Home Buyers have been pretty quiet over recent times since the increase in house prices in the last few years. However now that home prices have slowed, creating a more stable housing market First Home Buyers seem to be more confident in purchasing their own home. This stable housing market coupled with a stable home loan interest rate environment and competitive home loan products have created a good opportunity for young people to buy their first home.
The announcement this week by the Reserve Bank to leave the cash rate at 5.5% continues to support the stable interest rate environment. This decision by the Reserve Bank means that we have not seen any movement in the cash rate for almost a year with the last change in the cash rate on 2 March 2005.
The competition amongst lenders to increase or maintain their share of the home loan market is very strong at the moment and homebuyers can only benefit from this situation. Almost on a daily basis we are receiving notices from lenders reducing interest rates, offering reductions in fees and changes to features on home loan products.
The home loan introducer/broker business has witnessed an increase in competition over recent years, which can only help the homebuyer. There are clear benefits for homebuyers in dealing with a broker. A homebuyer’s current bank may not be able to approve a loan for them or have the best loan for that homebuyer. It may well be that another lender can assist and has a more suitable loan product. With so many lenders and so many loan products to choose from the service of Home Loan Introducers/Brokers is the best avenue for homebuyers to search out the most suitable home loan. The important thing for the homebuyer in choosing a home loan introducer/broker is that they are dealing with an experienced genuine person with a good knowledge of finance. The broker should be acting solely in the interests of the homebuyer at “arms length” from any competing factors. |
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Les Scott is a principal in Les Scott and Associates-Home Loan Specialists
Phone 07 3288 6400, mobile 0427 064 650, Email:les@homeloanspecialists.net www.homeloanspecialists.net |
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