With the purchase of a new or existing residential property, we offer a maximum LVR of 95% inclusive of LMI. For those already in the market, the same applies for refinancing of a home loan or construction loan.
There is NO exception to this is for any interest-only loans where the maximum LVR remains at 90% for all purposes plus LMI
Concerned about Property Prices Drop!
For Aussies that purchased their property in the last three years, over 60% are worried about losing money on a property and over 57% are worried about owing more than it’s worth. While only 15% of home owners who purchased over three years ago regret what they paid for their property.
Most buyers survey expressed concern about losing money on their property, being in negative equity and regret about what price they paid compared to those who bought more than three years ago.
Although concerns were most acute among those who purchased a home at or near the highs, almost half of those who bought beyond three years ago also said they were worried about falling values, with over a third also expressing concern that they could lose money on their home.
While this is only one survey, the results underline why some are concerned about a change in consumer behaviour as a result of the housing downturn, especially at a time when wage growth remains weak and savings levels are low.
Given that outlook, it means Australia’s economic fortunes in the years ahead will be largely determined by what happens in the labour market.
Right now, things are looking fairly optimistic on that front with unemployment at six-year lows, employment growth still strong and wage growth slowly picking up.
However, should only a small proportion of households begin to trim their spending levels as a result of the housing downturn — as the ME survey suggests — that could spill-over into the broader economy, potentially creating headwinds for economic activity and employment growth.
That, in turn, could also see the current housing market correction turn into something more significant.
There’s a lot of “ifs” and “buts”, certainly, but the risks of falling home prices spilling over into other parts of the economy cannot be simply dismissed & as Head of Home Loan & Business Insider has a reassuring message for all those clients, “There’s little point worrying about what will happen to prices short-term if you’re intending to live in a property long-term”!
To ensure you get the best insight and to have the right solution whether you are a first home buyer, upgrader or wanting to save on current interest by refinancing don’t hesitate to give DBIJ Finance P/L a call.
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