Are you one of the lucky ones still with a low fixed interest rate from ‘the good old days’? If so, congratulations! There are not many left.
Some have recently asked me about the mortgage cliff so much of the media was predicting: That time has come and gone; and we have not seen the masses falling off any cliff.
Most recent data show only a small increase in mortgage arrears, and that is off very low levels, so of no real significance. The principal reason has been put down to low unemployment. Where home loan borrowers maintain their jobs, they can generally find a way to maintain their home loan repayments.
Refinancing has also assisted. Whilst some borrowers have been trapped and unable to move banks to lower rates where required, for most borrowers, they have managed to find a way. Perhaps that is tied in with the continued rise in home loans being processed via the mortgage broker channel? It is notable that 74% of all residential mortgage loans are now being processed to banks via brokers. Broker service and credit advice has certainly helped borrowers navigate the challenging times.
Brokers exist to help you to the best loan and structure, but also to make the experience of purchasing a house stress-free. If you have a great broker, keep in touch, ask questions, learn from them. If you need a broker with experience and integrity, give us a call.
Integrity Finance Australia has been serving the community since 2006. If you have any questions on the issues raised in this article or borrowing capacity or your home loan in general, then please email support@ifafinance.com.au , or call us on 03 9511 8883.