By Andrew Browne of TAG Financial Group
There is no denying, the recent Banking Royal Commission stifled the appetite of Australia’s banks to take on new loans. And that lack of interest was painfully felt by many West Australians looking to borrow.
But the good news is, since weathering the storm, the lending climate has improved significantly.
Australia’s Official Cash Rate was as high as 4.75% in late 2011. Now it is at a historic low of just 1.0%. This is great news for anyone with a loan or looking to borrow.
Coupled with the Australian Prudential Regulation Authority’s recent regulatory changes including –
- removal of interest only lending restrictions, and
- relaxed serviceability assessment requirements
more opportunities exist for both investors, as well as home hunters, looking to return to the Perth property market.
Further, competition within the banking sector is once again increasing, and competition is always good for the customer…
Non-traditional lenders, as well as new online only banks, are looking to steal market share from the Big Four.
Plus, foreign banks from all over the world including Europe, the UK, Asia, China, Japan, the US and Canada have been growing their Australian presence at their fastest rate since the GFC some 10 years ago.
This all combines to create significantly improved lending opportunities for those with sound financial capacity.
It also means banks are sharpening their pencils for existing borrowers, with lower interest rates available for many who are willing to seek
‘Book a FREE home loan health check’
At TAG we encourage regular reviews of your lending to ensure your loans are meeting your requirements, and that you aren’t over paying when it comes to your interest rate. And given the recent events discussed above, now is the time to take advantage of the opportunities on offer.
For those looking to return to the Perth property market, an expert who is working for ‘you’, not for the banks, will be best positioned to source you a deal that takes advantage of the improved lending conditions. The Team at TAG are just such experts, so we encourage you to pick up the phone and get us on your side.
It might be the smartest call you make this year!
Call me on 0413 787 441 and you can learn more about Tag Financial Group at www.taggroup.com.au