During uncertain times, there are even more aspects to think about when making a decision to buy a property.
Various restrictions have been imposed at times during the pandemic, resulting in virtual tours of properties and online auctions. For some people, this may make the home buying process more efficient, while others prefer to physically view a property before committing to such a big purchase.
No one knows exactly what will happen to employment rates and house prices in the future, but we’ve listed some basic points to consider when determining if now is the right time to buy a home.
Current interest rate environment
Lending and deposit interest rates remain low across the board, with the current official cash rate at a record low of 0.25%, as determined by the Reserve Bank of Australia. Obtaining a home loan in a low interest rate environment can help to make extra repayments, meaning that the loan can be paid off sooner and with less interest charged. The interest rate on our Premier Package Home Loan is also at a record-low.
The importance of research
Despite a consensus that buyers may have more bargaining power to secure their ideal property, it’s still important to do your research. Ensure to research the suburb, surrounding areas, latest auction clearance rates and similar property sales, particularly from the past 3-6 months.
Your personal situation
You might have a stable job and income and even have already been planning to purchase a home around this time. This means that you may have a higher chance of being approved for a loan. Alternatively, you may have been planning to purchase a home in six months’ time, but now decide to wait even longer to see how the market plays out.
First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme is a government initiative helping Australians purchase their first home sooner. It means that eligible buyers can purchase their first home with a minimum deposit of 5% of the property’s value, without paying additional fees such as Lenders Mortgage Insurance. With a new financial year just begun, more places have become available.
For further information and to discuss the right options for you, contact our lending specialists on 1300 654 822.