Good preparation is the key to achieve your dream home with the right home loan.
The Reserve Bank of Australia announced no change to interest rates in October 2013, but research from finder.com.au found that this event is failing to have much effect on the Australia property market.
Many borrowers at the time were buying up properties enthusiastically while those who were slower to react were missing out and being left with the crumbs, or with a property they didn’t really want.
Interest rates still and lowers in October 2013
The Reserve Bank kept 2.50 percent as the cash rate, which was the lowest recorded at the time. This has fuelled competition between lenders while home buyers are out searching for a bargain.
Comparing home loans online
Our research here at finder.com.au estimated that Google searches for a home loan would top 3.6 million during October 2013. In October alone, settled home loans were forecasted to reach 63,000.
Research from finder.com.au also revealed that from the time a potential borrower commences his or her search for a suitable home loan, the time it takes to reach settlement took approximately 17 weeks. Borrowers typically spend 8-11 weeks shopping around with 6 weeks’ settlement.
The team at finder.com.au has studied Internet traffic and provided answers to more than 7,000 questions about products and home loans, which is becoming a powerful tool in predicting the behaviour of borrowers. Most people turn to the Internet as their primary means of searching for the best deals.
The trend in October 2013 was showing that the heat on home buying is set to continue. The auction market highlighted this swing by the notable increase in rates in auction clearances recently, with Sydney leading the way followed by Melbourne. Buyers are so desperate to get their hands on property that many homes are sold before they are even listed. We advise potential homeowners to get their home loan finances organised first so that nothing is holding them back if the right property hits the market.
Home loan comparisons online are crucial
One of the most important things to do is to jump online and start comparing home loan providers while ensuring you have cash available, which is equivalent to 10 percent of the value of your dream home. This will cover the deposit of 5 percent of the property's value plus other costs that come with purchasing a home, including stamp duty and the establishment fees.
It is easy to get carried away at an auction and place a bid that does not fall into your financial capability. The money you are able to afford should be imprinted in your mind so that you do not over bid and forcing yourself into a financial dilemma.
In October 2013, State Custodians was offering a 4.49 percent variable home loan. With this competitive rate and the decrease in repayment on a $300,000 loan by $400 in the last two years, means it's a great time for a well prepared home seeker to bite the bullet and buy.