Mortgage News

Another weekend of solid sales and high demand over properties has given more proof to experts that a buoyant and strong real estate market is expected this coming year. Clearance rates were upwards of 84% over the weekend compared to last year relative figures of only around 74%. Report’s state there is a lot of pressure on the market right now, with increasing demand on existing properties and that buyers would be soon forced to either move outwards instead or downgrade their purchases stated the SMH.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the pressure facing the real estate market could result in purchasers placing greater emphasis on their mortgage product search in order to obtain the best possible deal, resulting in non-bank lenders being considered more for business.

SMH reports that Fujitsu Consulting has indicated that mortgage related stress has hit new highs as interest rates costs have kept increasing with no new developments in the job sector. Considered “high stress households” on the edge of selling has increased by 2% since the last report. Since 2005, the average mortgage amount has risen by a staggering 40%, though over the same time, incomes have not risen that much to compensate. The consumers who entered the mortgage market within the last 18 months were considered the ones most risk, with anyone entering the market quite recently warned to be vigilant as interest rates were expected to rise over the coming year.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that anyone who was experiencing mortgage related stresses should consult their financial expert, be it an accountant or financial planner. Refinancing into a better featured product at a lower rate can help “stressed” households move into a better financial position.