The last housing bubble sent many homeowners into foreclosure. However, as the global economy recovers, so does the lenders’ confidence in lending money to those who can meet their standards. This opens up more chances of getting your loan approved, especially if you have a near-perfect credit history.
Good news is that some financial institutions do offer flexible and client-centric package house mortgages and re-mortgages, in order to cater to wider range of customers. Home loan information from Newcastle Permanent suggests that flexible loan packages are perfect for those who are looking to get discounted rates but on a condition that the existing loan must meet the minimum amount of $250,000, and so on. However, the offer is available for a limited time only.
Another reason why today is the best time to get a home loan, or refinance your existing mortgage even, is the fact that one in four customers have successfully re-opened their mortgages in the last couple of years, according to Bankwest’s recent study. Even the new survey conducted by the Australian Finance Group has revealed that four in ten mortgages are now underway for refinancing. You may take this as a sign of great improvement since 2010 when bank repossessions are ubiquitous; and thus, adding some confidence in your purchasing power.
Besides, as the industry is still on its way to full recovery, the interest rates and house prices are still a bit low. Lots of discount offers on home loans are up on the market, and as they say, it is always best to strike while the iron is hot. Do not wait till the demand gains full steam ahead, otherwise, you might be forced into renting an apartment again.
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But lenders have been more finicky these days…
Understandably, though, lenders have the right to be firm as to whom they grant money to and the payment terms for it. The goal is to prevent another crisis from happening again soon, which homeowners worldwide have greatly suffered from. Right now, the average debt-to-income percentage is 43%, relatively lower than the previous years.
Credit rating standards may have increased and debt-to-income percentage has declined but it is all for the good reasons – to only select people capable of paying mortgages in the long run so that foreclosures can be avoided. If you have good credit ratings and a stable cash flow, what do you have to lose?
The real estate industry outlook
Come 2020, the real estate industry will reach its peak, according to the fearless prediction by PWC. The organization believes that asset managers and realtors will change the real estate landscape by being more competitive than ever. The intense competition could be influenced by the emergence of new risks, opportunities, collaborations with relevant government agencies, and technological innovation.
Thus, in a successful investor’s point of view, the peak is the best time to sell properties as the demands, prices and interest rates are relatively high, and then ride it out till the housing bubble pops out again to buy a discounted property.
Should you start applying for a home loan soon?
Low interest rates, flexible home loan offers, and fast approval for the qualified applicants. This looks having a new ray of hope radiating over the horizon for potential and seasoned home buyers who are trying to get back on their feet.
You can either wait it out till the industry fully recovers but the housing costs may have already been increasing faster than salary increments by then, or get a home loan today while job opportunities are expanding and start enjoying the fruits of your labor.