STONEY MONEY MATTERS

STONE MONEY MATTERS

As you may have heard, there’s some macro and micro economic changes being talked about that will also help buyers. The RBA is seen as a near certainty to drop rates by 0.25% Tuesday week (4th June) and APRA (the body that governs the banks) is looking at relaxing the assessment rate the banks need to use to determine an applicant’s borrowing capacity. These two measures will have several significant effects: -

 It will reduce every variable loan mortgage holder’s monthly repayment’s,

1. It will increase new applicant borrowing capacity given the same income and expenses,
2. It will make it easier for people with multiple properties/mortgages to refinance,
3. It will stimulate activity and increase the amount of discretionary income in the economy.

 All the above outcomes are welcome news to our industry. It will give buyers the confidence to buy knowing the banks will make it a little easier for them to borrow, potential vendors will hopefully be encouraged to finally list and everyone will give a big sigh of relief and be happy to get on with life.

 In regard to interest rates, while we are still waiting on the RBA meeting, several banks have decreased their fixed rate loans in anticipation of a rate cut. There are two mainstream banks now offering 3 year fixed rates for owner occupiers with principle and interest payments below 3.50%, and there are more than half a dozen lenders offering variable rates below 3.70%. With refinance and new purchase cashback being offered by others, the choice is endless and it is therefore even more important that your buyers, vendors, landlords reach out to a Stone Money Broker to make sure they get the absolute best loan for the needs.

www.stonemoney.com.au

www.stonerealestate.com.au