While the housing market is strong, there are signs it’s slowing. Under these conditions knowing whether buyers can get finance will be key.
The white-hot price gains of March moderated in April. Sydney auction clearance rates of about 90 per cent in March have also slowed to about 80 per cent and Melbourne has ticked down from close to 80 per cent towards the mid-70s.
Big home price increases, fewer buyers and the removal of government incentives were combining to slow the market, REA Group said last week. The market is likely to settle at a lower, albeit still strong, level as affordability becomes a greater problem and lenders raise lending costs.
Big price increases mean that, for some, simply getting finance is too much of a stretch.
And yet, not all banks are the same; while most banks will lend up to six times a household income, a handful will stretch to eight times income.
Good brokers know that simply whacking in mortgage application to the cheapest lender is not going to cut it for a would-be home buyer.
On top of that, some lenders are taking ages to even look at a loan application. A recent survey by Momentum Media showed Westpac, St.George Banking Group and ANZ experience turnarounds above 20 days. Meanwhile Macquarie, ING and AMP can be as quick as six to seven days.
There is increased speculation that the banks will be forced to rein in the property market; home values continue to rise, even if not at the rate seen in March. CoreLogic’s daily home value index has risen 1.2 per cent since the start of May.
But not all banks will respond in the same way. For those thinking about a career in mortgage broking and wanting to know how brokers will thrive in the current property market, The Futurus Group are holding a careers seminar on Wednesday 2 June in North Sydney at 6pm. To register your interest, click here How To Kick-Start A Mortgage Broking Career – Sticky Tickets