4 reasons why you should use a mortgage broker in 2018
Are you looking to purchase a property in 2018? A member of our team can help you get the most ideal home loan for your circumstances.
We believe using a broker always gives people an added edge when on the hunt for a dream home, but there may be more reasons than usual for seeking extra assistance next year.
1. Housing affordability likely to fall
Recent research all points to housing affordability issues continuing in 2018.
The proportion of median family income required to meet the average loan repayment was 31.4 per cent in the second quarter of this year, according to the latest Real Estate Institute of Australia and Adelaide Bank figures.
This was a 1 percentage point increase on the December 2016 quarter, and nearly 2 percentage points higher year on year. Brokers can help you navigate the market and get more bang for your buck should the buying environment become a bit less friendly.
2. Interest rates could rise
A number of market experts are predicting that the Reserve Bank of Australia key cash rate will increase next year.
The Shadow Reserve Bank board, a panel of economists at the Australian National University, said the probability of a necessary rate hike within the next six months rose from 69 to 73 per cent between September and October.
A rise in the cash rate will likely have a knock-on effect for mortgages, so you may have to research and compare low interest home loans more diligently in 2018. Why not let a broker help? Brokers have access to a wide range of lenders and products that can be tailored to your specific circumstances.
3. Investors starting to feel the pinch
Earlier this year, the Australian Prudential Regulatory Authority introduced new rules that tightened lending criteria for investors and hiked the price of interest-only mortgages.
The move appears to already be having an impact on the market. Property investment lending dropped 6.2 per cent between August and September, according to the latest Australian Bureau of Statistics data shows.
Investors may continue to feel the pinch in 2018, but having a broker on your side could deliver significant savings on your next home loan. Brokers can scour the market for low-interest loans and present you with a variety of options, while offering crucial insights and impartial information.
4. More people are using brokers
A growing number of real estate investors turned to mortgage brokers last year, and many more intend to use a professional for their next property purchase.
An annual survey from Property Investment Professionals of Australia found that 73 per cent of investors relied on a broker for their last mortgage and 83 per cent expect to finance their next home loan this way.
While the research focused specifically on property investors, brokers have the skills and experience to help buyers across all demographics.
Contact the team at Premium Portfolio Finance today to see how our specialists can get the ball rolling on your next purchase.
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