Home loan and commercial finance tips from a mortgage broker - delivered weekly

1. Will the RBA drop interest rates today? Unlikely.

The inflation data is finally back in the central bank’s 2–3 per cent range, which is the first time since March 2021. Still very unlikely for an RBA rate cut, as there is increasing services inflation, and we are still at the top of the 2-3 per cent range.

Short term 30 day Inter-bank market (in the pic below) is indicating no change until at least February 2025.

An RBA cut today is very unlikely.

2. Current leading home loan rates:

Currently, many lenders are reducing their variable and fixed rates, which enhances borrowing capacity for your clients. Notable options include Macquarie Bank's 2-year fixed rate at 5.49% and People's First Choice Credit Union's variable rate at 5.89%, with the latter offering aggressive borrowing capacity.

Your individual circumstances—like debt, assets, and income—are crucial in determining the best option. If you would like to talk to a broker about a detailed assessment of your borrowing capacity, simply give me a call, book a telephone appointment, or fill out this online fact find: https://shorturl.at/hXX2g

3. Why would your buyers use Bridging Finance?

So what are the benefits of Bridging Finance?

Bridging finance empowers buyers to purchase their next home before selling their current property, offering up to 12 months to complete the sale. Here are the main advantages:

Avoid Temporary Living Costs: With the average home sale taking about nine weeks, many homeowners spend around $8,300 on temporary accommodations. Bridging finance allows buyers to secure their next home without the hassle of short-term rentals.

Seize Opportunities: In a competitive market, timing is crucial. Bridging finance enables clients to act quickly when they find their dream home, alleviating the pressure to compromise on their ideal choice.

Access Home Equity: Buyers can leverage their home’s equity for renovations before selling, enhancing its value and maximizing profits when they list the property.

Flexibility with Settlements: Bridging finance streamlines the process, allowing clients to handle one sale at a time for a smoother transition.

4. Partner with me.

If you're a real estate agent, accountant or planner, refer your client to me for help with debt structure, borrowing capacity and rates. To get started, just provide the full name, email, and mobile number of your first client, and I’ll handle the rest while keeping you updated.

Loan Market Matthew Stack - 0423 237 242

[email protected]

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