1. Rising Interest Rates
Staying informed about the latest trends in the mortgage industry can help you make the most of your home loan. In this article, we explore key developments in the Australian mortgage industry and what they could mean for borrowers.
2. Popularity of Variable Rates
With the anticipation of rising interest rates, variable rate mortgages are expected to become more popular2. These loans offer flexibility, allowing borrowers to take advantage of any future decreases in interest rates.
3. Increased Competition Among Lenders
Australian banks have been offering cash-back incentives and discounted rates to compete for a share of the mortgage business3. This increased competition could mean better deals for borrowers, as lenders vie for their business.
These loans offer flexibility, allowing borrowers to take advantage of any future decreases in interest rates.
Mortgage Savings
4. Property Values on the Rise
Property values in Australia have been increasing, recording growth of 0.8% for August 20234. Rising property values can impact the amount you can borrow, as well as your equity if you’re already a homeowner.
5. The ‘Fixed-Rate Cliff’
Despite reaching the ‘fixed-rate cliff’ – a point at which many homeowners’ fixed-rate loans revert to a higher variable rate – mortgage arrears remain low1. This suggests that many borrowers are managing their loans effectively, even in the face of potential rate increases.
6. Shifting Market Size
The market size of the mortgage industry in Australia has seen an average decline of 8.0% per year between 2017 and 20225. However, the market continues to evolve with new trends and factors shaping the industry6.
Understanding these trends can help you navigate the mortgage market more effectively. For tailored advice on how these trends could impact your specific circumstances, consider consulting with a financial adviser or mortgage broker.
Footnotes
- Macquarie ↩ ↩2
- Property Update ↩ ↩2
- S&P Global ↩
- Forbes ↩
- IBISWorld ↩
- LinkedIn ↩