Finance Update June 2022 | by Jonathan Valentino

June 10, 2022
by Hannah Carney

Our trusted broker Jonathan has assisted a number of our clients get a mortgage, refinance and provide general updates on what we’re seeing in the market. If you would like to speak with Jonathan today, get in touch – Call 9939 5400.

The Reserve Bank of Australia (RBA) increased the official cash rate by 50 basis points to 0.85% at Tuesday’s board meeting marking the first back-to-back rate rise in 12 years. With all four of the major banks raising rates by 0.50%, it looks likely that most lenders will follow the RBA increase.

For homeowners, now is the time to be contacting your bank or mortgage broker to ensure you are in the best position possible. Many banks are offering huge cash rebates for refinancing, so exploring your options could lead you to saving thousands a year on your mortgage.

Finance Market Update

Lender Service Levels
• Service levels remain at “normalised” levels across banks for PAYG / Salaried borrowers.

• For complex applications (i.e. self-employed, high LVR, multiple applicants, etc.) turnaround times are much longer.

Pricing & Credit
• Banks continue to promote cash back offers for new customer’s refinancing their existing loans to the bank.

• As we approach the end of FY2022 and start FY2023, Self-Employed borrowers will have the option to present either the 2021 financial year tax returns OR full year 2022 financials to verify their income. The 2021 set of financials can be used all the way up until 31 December 2022 before banks start to require the 2022 year.

• Fixed rates continue to increase across the board. ANZ, Westpac / St George, and CBA all announcing further increases in the first week of June. The average 3-year fixed rate at the Big Four is now sitting at 4.99% (Owner Occupied, P&I). We are seeing a greater trend towards variable rates over fixed rates in line with market movements shown in the graph below.

With interest rates gradually rising in small increments, the next few months may present your best opportunity to secure a great deal on a property and still get a considerably low interest rate. Ensure you are working closely with your mortgage broker or bank, so that when the opportunity presents itself, you can act quickly.

If you would like speak Jonathan, get in touch | 9939 5400 or email info@schwarzre.com.au 

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