More borrowers are taking advantage of the record low interest rates to refinance their home loans, according to recent research. It seems that the main contributor to the increase in lending activity is due to borrowers refinancing their existing home loans.
According to the Deloitte Australian Mortgage Report for 2015, mortgage settlement activity has increased by 20% last year and experts predict that loan settlements will increase further in 2015 from 6 to 10%.
According to the Deloitte Australian Mortgage Report 2015, when asked 'what categories of consumers will drive the greatest growth over the next three years?', 100% believed it would be refinancers and upgraders.
“Lending growth has been in refinances, with new lending at lower levels of around 3 to 4%. The market has also seen an increase in demand by investors," said Frank Granis, industry expert from Macquarie.
The lower interest rates and rising property prices are attracting more investors to the property market, according to Angela Middleton from ME Bank.
"Overall, investors are dominating buyer activity at the moment; although this includes an increasing number of first home buyers who are using an investment strategy to get into the property market. Recent statistics show 30 per cent of first home buyers are investors," she said.
So, whether you are an experienced investor or looking to dip your toes into the property market for the first time, now is the time to start doing your research and see whether there is a finance option available to suit
According to this report, one of the most important factors for consumers when choosing a mortgage provider is the accessibility of online services.
"Consumers expect funders to have the ability to service and support them through technology," according to Frank Ganis from Macquarie.
"Consumers are basing their decision on what happens post settlement. At least being able to access their account online, manage it and perform other functions online," he said.
Borrowers are becoming more savvy and want to take control of their home loan research. With more tools and information available online, it is possible to research and apply for a home loan online yourself.
State Custodians pioneered online lending. What makes us different is that we provide a great depth of information on our website so you get a full understanding of our home loans and lending in general from the comfort of your own home. But we don’t leave it there. We have experienced Lending Specialists who are there to provide personalized assistance and work hard to find solutions. They can recommend a State Custodians loan or loans from 30+ lenders on our lending panel. Our borrowers appreciate this expertise with over one third of all new loans resulting from a recommendation from an existing customer.
Quick and easy tools on our website can allow you to calculate repayments on our different loans, get a fast pre approval, apply for a home loan online with an instant result on submission, or research the current property market.