The Australian residential market continues to defy expectations, recording growth over the past few months. Despite this, we are still seeing a number of challenging situations for many of our clients that require creative thinking and calling on our well-developed relationships with both bank and non-bank lenders.
One major issue that we’re seeing is around ‘lending appetite’ - that is, loans are being approved but at lower amounts than have been applied for, some for as much as $100,000 (which is a significant amount when you look at it as a percentage of the total purchase price or loan amount).
Despite interest rate rises (no need to bang on about those, we’re all very aware), we are seeing some stabilisation in that area and there is an expectation that lending appetite will slowly but surely return.
As well as this, we are seeing extremely low levels of stock in the market right now which are impacting every customer segment, and people are very reluctant to sell their current property if there is nothing for them to trade up into. And who is going to consider getting out of the property market with the rental situation in Sydney right now? So the market is extremely stagnant, with very little movement or opportunity for people to either enter or upgrade as their family grows. Downsizers are looking ok for the most part, but if they have to rent in the interim, well, that puts them firmly in this crazy state of affairs as well.
Contact our Home Loan Specialist Ollie Lum, and book an appointment for a complimentary and confidential meeting with him today. He is one of the best in the business, and works with a huge range of lenders to ensure that you get the best result. You can learn more about him by checking out his YouTube and LinkedIn.