There has been excellent downward movement this week in short term interest rates, with most banks offering 4.95% or lower for 1 year fixed terms for those customers under 80% LVR. Funding limits in this space are largely unchanged and therefore these reductions are solely in response to the banks wanting to grab what business is available in the 80% and under space. This was predicted to happen and is good for the borrower who does have a 20% deposit.
Finally, back to low deposit loans. I have been advertising on More FM to ask if Tony Mounce Mortgages can help in the low deposit space. The important thing is for us to get in front of the client to see what we can do to help, be it the Welcome Home Loan, pulling in mum and dad, a second mortgage or caveat funding for the deposit shortfall. Although these options are not ideal (apart from the Welcome Home Loan) at least they may enable our client to get a foot on the property ladder.
Certainly interesting times ahead to see what does happen to the housing market and all stake holders.