We have heard a number of announcements recently that will be music to your ears if you are considering purchasing a property.
The Coalition victory at the federal election is great news for property buyers and has brought some stability and confidence to the property market.
Investors can take heart that there are no changes on the horizon to capital gains tax or negative gearing. Labor’s property tax policy changes threatened to affect investment returns and exert further downwards pressure on property prices. Many experts now expect the price declines across much of the country to stabilise sooner rather than later.
We are also hopeful that the tight lending conditions will start to relax after APRA’s recently proposed removal of the minimum interest rate serviceability buffer. Currently, borrowers must be able to make repayments at a minimum 7 per cent interest rate to pass the serviceability test. If the changes eventuate, borrowers could be looking at an increase in their borrowing capacity, assuming their lender changes their serviceability buffer in line with APRA.
Compounding this, the cash rate still looks set to drop at least 50 basis points this year, and possibly more, so borrowers can expect to see at least some of these savings flow through on their interest repayments.*
First home buyers should also be excited about the Coalition’s First Home Loan Deposit Scheme being introduced in January next year. The government has said first home buyers may be able to access a loan with just a 5 per cent deposit, with the government guaranteeing the rest of the typical 20 per cent deposit. This would allow first home buyers to get into the market more quickly and easily, and avoid paying lenders mortgage insurance.^
And the final piece of good news is that the Coalition does not intend to radically change mortgage broker remuneration for now, which means we will be able to continue to assist our clients to get great loans and competitive deals for the foreseeable future!
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.