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Lending - 6 min read
Since the beginning of the year, around 40 Australian lenders have dropped their fixed rates, causing many to wonder, “Is this the year to buy that dream home?”
Lower interest rates give buyers more purchasing power, and that’s why so many people are in high spirits over the recent news.
For buyers with cash on hand for deposits, lenders may be willing to negotiate for lower rates they’re not publicly advertising. They know it’s an excellent time to lock in buyers, and they may be willing to sacrifice a bit on the front end to secure trustworthy borrowers for the next 15 to 30 years.
But is 2019 really a good year for you to purchase your dream home? In this post, we’ll look at several factors you should take into consideration before purchasing a new home/investment.
Rates are low right now, and if you’re ready, it’s a perfect time to shop for your dream home. If you need a little time to prepare, however, it seems that you may have some breathing room.
Stagnant employment and wage figures will prevent the RBA from tinkering too much with interest rates for the near future. This is good news for home buyers, if not for job seekers and workers.
Because of the economic outlook, you don’t need to feel too much pressure to snatch up a fleeting interest rate. You can pursue a loan methodically and carefully, as you always should when making a long-term commitment that will have extensive influence on your future finances. And if you’re ready now, proceed with confidence that you couldn’t have picked a better time.
Before you start shopping for your dream home, take a step back and consider your budget. Low interest rates don’t help much if you stretch yourself too thin for a fruitful financial future. You should be able to cover all of your daily expenses and still have extra for rainy days and investing.
If you don’t currently plan and track your income and expenses, start now. A realistic, thoughtful budget allows you to set and achieve both short- and long-term goals. Your budget will also help you to know how much you can afford before you start looking for a home.
Once you’ve decided the time is right for purchasing your dream home, the work begins. Prepare your finances for the loan process for a smooth transaction and successful outcomes. Here’s how.
How will the purchase of your dream home affect your financial life? Will you stay on track for retirement? Will your taxes be affected? Will you need to make any changes to your will or estate planning? By talking these issues through with your financial adviser, you can approach your purchase with confidence.
For the best rates, work with a broker who can use his or her contacts and volume discounts. Save time and money by having your broker shop around and assist you through your dream home purchase.
To get in touch with one of our wealth advisers here at Altus, set up a time for a consultation. We look forward to helping you make the most of these historically low interest rates.
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