Finance Update May 2024

Home loan commitments rise by 13.3%
As we move further into the year, we are seeing more buyers enter the market. This in turn is pushing property prices up and therefore the size of loans buyers are borrowing is also rising. 

Prices have risen in 88.4% of suburbs
Australia has hundreds of different property markets, which are often at different points in their cycle, so it’s common for there to be many markets where prices are increasing and many where they’re decreasing. Right now, though, the vast majority are in growth mode.

The Sydney housing market has seen a rise of 98.6% since this same time last year which is great news for sellers! This increase in property prices is due to there being a under supply in housing stock and an above average number of buyers thus driving property values higher. 

Borrowers staying on top of mortgages
Despite the rise in inflation and interest rates over the past two years, “nearly all borrowers continue to service their debts on schedule”, according to the latest Financial Stability Review from the Reserve Bank of Australia (RBA). Most mortgagors have experienced an increase in their minimum scheduled payments of 30-60% since the first increase in the cash rate in May 2022. Regardless, borrowers have found a way to get by! 

Need help with your loan?
The team at The Finance Co. Group are all specialised brokers who will be able to assist with tailored loan solutions, guidance, support and have access to specialised lenders which aid in maximising your chance of approval. Please reach out to them on 8004 5020 if you need any help with a loan or refinancing.