A Lens on Lendinghttps://viridianadvisory.com.au/wp-content/themes/movedo/images/empty/thumbnail.jpg150150Shona KlibingaitisShona Klibingaitishttps://secure.gravatar.com/avatar/312d8b9402dded6f4de0edc43723df25?s=96&d=mm&r=g
The past 12 months has been a busy one for all things lending. With mortgage rates remaining at record lows, and investors coming back into the market in a rush, the Australian housing market has boomed.
We also know that the residential market tends to dominate dinner party conversations across the country and to help with this we find turning to Julian from 1Group Property Advisory helps.
Looking at some key points for this financial year…
Even with the big jump in investor loans, owner-occupiers dominate the market to an extent not seen this century!
At the Reserve Bank Australia’s (RBAs) June policy meeting, the decision was made to keep official rates on hold at 0.10%. This confirmed their previous belief to not raise cash rates until wage growth is ‘materially higher than it is currently’.
This indicates that the low interest rate that has helped the property boom is it set to continue.
And what to look out for next year…
Mortgage rates remain at record lows, but with the RBA’s Term Funding Facility ending in a few weeks, the window for locking in could be narrowing.
Some are suggesting that mortgage rates have hit record lows and bottomed out. With a Big 4 bank increasing fixed loan offers for owner occupiers, maybe it is true….
3 charts that take a snapshot of the housing market:
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