Worried you’re moving against the grain? Looking to buy at the wrong time? You’d be forgiven for thinking so, as the Commonwealth Bank’s Home Buyer Index (HBI) indicated that a number of capital city markets (particularly Sydney and Melbourne) are actually shifting in favour of sellers at the moment.

While this is the case, it shouldn’t preclude you from taking out a home loan and making a fantastic bid for your dream home. After all, it looks like a lot of home buyers are actually feeling pretty confident!

More money, less problems

Genworth’s Streets Ahead report surveyed more than 2,000 Australians about their prospects for purchasing property, and the September edition has indicated that home buyer confidence is actually at its highest point since the global financial crisis.

This is predominantly because of a decline in the proportion of people that are using more than 50 per cent of their income to take care of home loan payments. In the previous edition, this was 29 per cent of respondents, but has since dropped to 23 per cent.

For those worried about how a regular or investment home loan might stretch the budget, this will be good news. As interest rates stay low, people are sacrificing less of their day-to-day funds to meet mortgage requirements. This could be the sign you need to move forward!

First home loans on the low?

One group that actually saw their confidence take a hit, however, was first home buyers. This group hit a record high level of confidence (102.1 on the index) in March, which has since fallen back to 98.4 in the September report.

Many more people taking out a first home loan are experiencing mortgage stress, which has generated the decline. This is where forward planning and budget-setting with the help of a mortgage broker could prove useful. As professionals with extensive experience providing a huge range of home loan products, brokers understand how each type of lending will suit each person’s financial situation.

The Australian Securities and Investments Commission notes that despite embarrassment about mortgage stress, it’s important for people to talk to professionals in this situation.

As positivity swells among a lot of buyers, you might be thinking about joining the wave of confidence. If this is the case, don’t hesitate to get in touch with the team at Smartline. Our mortgage advisers are ready to help you find the financial setup that enables you to buy a dream home.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.