5 tips for entering the market in 2022
The Australian Bureau of Statistics (ABS) reported on 1 February 2022 that housing loans rose 4.4 per cent in December 2021, driven by a 5.3 per cent increase in loans for owner-occupiers. Western Australia saw the strongest rise, up 7.1 per cent, for owner-occupier loans. (Source ABS 1/2/22)
If you are looking to enter the housing market this year, want to refinance your existing mortgage or invest in a second property, speak to our in-house broker.
Here are our top tips
- Use a mortgage broker
Selecting a lender is crucial, so we work closely with you to understand your needs to find the right deal for you! We offer free advice, and don’t favour one lender over another. We then negotiate with the lenders on your behalf to facilitate them competing for your business. Don’t just ask what a bank can offer, there are many lenders that may suit your personal circumstances better.
- Make sure your credit rating is good
This will be based on your previous borrowing or repayment history, and also when you have applied for credit. When it comes to looking at what mortgages are available, it can work in your favour with the lenders if you have a good credit score. You can check your credit rating using sites like www.canstar.com.au for free and review what is potentially giving you a bad rating. If you find information you believe is inaccurate on your credit report, you contact the lender or creditor. Read one of our case studies here where a simple correction resulted in a much better mortgage rate.
- Don’t delay!
It can take quite a while for the process to complete from starting to having the mortgage accepted. There is noise that interests may soon rise, therefore get in now and find the right home loan for you. House prices are also still increasing, although not at the pace they were. In January 2022, according to the CoreLogic National Home Value Index, Perth housing values were up 0.6 per cent (monthly) and 11.2 per cent (annually).
- Work out your incomings and outgoings – and be honest!
We have a free borrowing power calculator here. We actually have a collection of over 20 calculators that will allow you to work through a number of scenarios and help plan your financial situation.
- Get a pre-approved loan
If you haven’t started your property search, or are still looking, a pre-approved loan can be useful. It gives you a clear picture of what your spending limits are and gives you peace of mind that if you find a property you’re really interested in, you can move quickly to make an offer. And it may put you in a stronger negotiating position than other potential buyers who don’t have pre-approval. Of course, even with a pre-approval, a subject to finance clause is an important protection in any sale contract.
We are here to help. Contact us on 0407 209 759 or provide your contact details here and we will get back to you!
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