Where to for the lending market in financial year 2021/22?

As we move ever so quickly into the new FY for 2022, there are a few things that we wanted to cover off on as we run to December.

In the last few months we all know how bullish the property market has been with records tumbling all over the place. Not least here in Canberra where our property prices have in many cases risen by as much as 20%.

However, the train must pull into the station at some time. Banks in conjunction with the RBA have been trying to slow this train down and some might say successfully as we start the see the beginnings of the property market cooling, as winter is want to do anyway.

All of the major banks have also started increasing their rates, moving especially on the 3, 4 and 5 year rates. So, IF you were thinking about fixing your loan interest rates the time could be now!

We are of the opinion that we will start to see rates move again out of cycle (increase) especially as the UK, Europe and the US move into their summer period and their economies start to improve. The economy in Australia has been mostly consistent with inflation seeing growth, the dollar remaining down and up till now internal tourism seeing a spike in growth. What happens in NSW over the next month or two will determine what the next growth period will look like for Australia.

It would also seem from their actions that lenders are doing everything they can to get this property market to pull up, with their ridiculous delays and the poor valuations despite supporting evidence on the market – one might believe that the valuers have been instructed to not actually value the market!

Banks of all shapes and sizes are still struggling with the volume of loans being submitted (so they say). However, it has been suggested that lenders, especially the majors, have been playing a deliberate game of trying to pull clients back into dealing direct with the banks.  As the banks tend only to favour themselves in anything they do it makes it that much more important to have a vocale on your side, who is in your corner with your best interests at heart.  The banks are also getting more pedantic with their documentation requirements so having someone guide you and make sure you have the right documentation to support your application is really valuable as it will reduce delays.

There are still some lenders out there who are agile, can get things done quickly and are sharp on their rates. I know that most people want their loan to be with a bank they know and they have some aspect of trust with which is why the big guys get the lions share of the market. Perhaps it’s time to see what the smaller lenders can do for you so we can help keep more of your money in your pocket – not the lenders!

So, if you are interested in getting your existing loan/s reviewed or looking for new finance, give us a call!

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