Mortgage News From Australia – Bucking the Big Banks
Mortgage News From Australia
The latest mortgage news from Australia shows that borrowers are looking to buck the big banks and opt for smaller lenders that can offer better rates and flexible lending terms. With house prices rising at the fastest rate in over 30 years, Aussies are spoilt for choice. Large banks have been increasing the interest rates on fixed-rate mortgages for years, but the Australian Prudential Regulation Authority has now instructed the nation’s banks to review new home loan applications to ensure that they can meet repayments at three percentage points above the loan product rate.
With record low rates driving borrowers away from the big banks, online lenders are increasingly taking their place. With more Australians now borrowing up to 95% of the property’s value, these online lenders are competing with them for business. Consumers also want loans that are funded quickly. For those looking for a fast, easy and convenient Mortgage News, it may be time to look into an alternative lender. Alternatively, you can visit your local bank and talk to a mortgage broker.
As the housing market continues to recover, Australian banks are preparing for the influx of new borrowers. Record low interest rates and a wage subsidy program called JobKeeper have encouraged people to buy their first homes. Additionally, government policies like the Guaranteed Home Loan Program (HouseKeeper) and the 5% deposit requirement for first home buyers have made online lenders the preferred choice for many. In addition, the growing trend of consumers looking for fast home loan funding has also helped these online companies thrive.
Bucking the Big Banks
The resurgence of the housing market in Australia is a boon for Australian banks. As the market recovers, more homebuyers are turning to online lenders for their loans. Despite the risk associated with online lenders, the rise of the number of consumers who are choosing these lenders is good news for consumers. As the housing market continues to improve, Australia’s major banks will be able to maintain their profits by lending more money and offering a better customer experience.
The latest Australian mortgage news also reflects the increasing popularity of online lenders. According to the Australian Prudential Regulation Authority, new residential mortgage lending increased by 20.2% in the year that ended in November 2018. The record-low policy interest rate and the job creation programs in Australia have encouraged more people to buy homes. However, while the current government has continued to support these policies, they are also facing a growing risk of losing money in the process.
Fortunately, Australian banks are benefiting from the resurgence in the housing market. Their mortgage book has grown dramatically in recent years, and the banks have responded to this demand by lowering their interest rates. As a result, loan volumes are also rising. The Australian housing market is an excellent example of this dynamic. In this country, there is no reason to wait until the housing market is back to normal. While the Australian banking system will be unaffected by the slowdown, the major lenders will have to find ways to adapt.