And with the condition of the housing market uncertain now, now may be a good time to lock in interest rates.
That is the advice of Nardia Barrett, managing director of Penrith based mortgage broker firm Mooney Financial Services.
She said: “There are some extremely competitive fixed rates on the market and locking in will give you the certainty of knowing what your monthly repayment will be for whichever period you lock in for.
“The cash rate has remained at historic lows of 1.5 per cent for the nineteenth consecutive month in May and with the continued decrease of property prices in Sydney we find many property owners are refinancing for many reasons.
“Renovations, debt consolidation, investment property purchases and those who are negotiating for better rates and lower fees are just a few.”
Ms Barrett said a growing number of borrowers were turning to smaller lending institutions over the major banks “as these lenders are offering great rates with low fees as an incentive to win their business.”
Despite reports the real estate market in Sydney had cooled, Ms Barrett said the impact on the lending market had been “minimal for our clients” so far.
“We are however starting to see issues with property valuations noting the extended time on the market along with lower valuations meaning clients do not have the equity they once had.
“We are seeing first home buyers returning to the market. An oversupply of properties on the market gives buyers more choice and more bargaining power.”
Mooney Financial Services can negotiate better loan rates with the lender on behalf of their clients.
“It is important to speak with your broker before deciding to lock in your interest rate to ensure a fixed rate meets your needs,” Ms Barrett said.
“The advantage of using a mortgage broker is that we have access to 34 different lenders and hundreds of products so we can find the right loan to suit your needs as opposed to approaching one lender with a couple of products which they try to fit you into but may not necessarily be the product that will work the best for you and your family.”
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