3 min read | 25 Mar, 2021
Aussie home buying intentions at a record high
It’s the topic on everyone’s lips. Home buying has proved a popular discussion point of late, with increasingly more Australians thinking about making their move on the property market.
According to the Commonwealth Bank Household Spending Intentions (HSI) series, home buying intentions soared higher in February, with the number reaching a record-high since 2015 when the series first began.
Both mortgage applications and Google searches were up in February in comparison to the month and year prior.1
Did you miss your chance to buy a house while prices were low?
No one likes the feeling of missing out on an affordable deal. As property prices continue to rise while homebuying interest stays strong, you may be left wondering, am I too late?
The good news for prospective buyers is that due to property values rising, more homes will likely be on sale. The bad news? You may have to act fast.
CBA predicts that residential property prices in Australia are expected to be up 8% in 2021 and 6% in 2022, with house prices in particular expected to be 9% higher this year.
Current low interest rates are encouraging buyers to borrow more, with the average wage earner able to spend $41,000 more at auction than a year ago, but as prices rise they’re getting less for their cash.
With cheaper mortgage repayments, a borrower on an average income of $89,000 who has saved a 20% deposit could have a budget of $806,250, research from comparison website Canstar found.2
How can a pre-approval help you before house hunting?
A home loan pre-approval is an initial assessment from a lender where they agree, in principle only, to lend you a certain amount of money to buy a property.
How can a conditional pre-approval help you in negotiating your property purchase?
It could give you a good idea of your budget when house hunting
It could also let you know the type of loan you can afford
It lasts three to six months, which could be more than enough time for you
Depending on the circumstances, it could make the home loan approval process much faster
Having pre-approval could make you seem like a more serious buyer to a real estate agent
Getting a pre-approval can potentially shave time and stress off your house hunt. Speak to one of our home loan consultants to get to the next steps to getting your pre-approval with a lender.
Here’s how you get started online:
Step 1. Select your state below.
Step 2. After answering a few questions, you’ll be given possible home loan options to start comparing straight away and work out your estimated borrowing capacity and break down your repayment and upfront costs.
Select your State
How can you improve your borrowing power?
Is your borrowing capacity getting in the way of your property aspirations? There are a few ways you may be able to give it a boost and get into your dream home sooner:
- Reduce your debt.
- Lower your credit card limits.
- Increase your credit score.
- Trim your expenses.
- Keep saving.
*Terms and conditions, fees and charges, and normal lending criteria apply. Read More
^Comparison rate based on a loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example or examples given and may not include all fees and charges. Different terms, fees and other loan amounts may result in a different comparison rate.
** Terms and conditions apply, cashback offers are provided directly by some lenders and may only be available for particular loan products. Cashback offers are not always available with advertised loan products. Ask us to learn more.