Latest News - February
Want a Home Loan? Here’s Some Good News
Getting a home loan might become a little easier – or faster at least – if Federal Government changes to the Credit Act are introduced.
The Government is proposing to relax the rules around responsible bank lending, specifically, the need for borrowers to list in detail every living expense, from your Netflix subscription to your last Uber Eats delivery.
Announced last September as a way to boost economic recovery post-COVID by making access to credit easier (encouraging spending), changes to the Credit Act are due to come into effect next month.
The banks are supportive of this change and any borrower that’s gone through the process of applying for a bank loan would agree. It’s time consuming, stressful and exhausting. It can slow down approvals by three months. And, according to the Commonwealth Bank of Australia (CBA), that level of detail isn’t particularly useful anyway.
On the flip side, having more buyers in the market competing for the same amount of homes might push property prices higher. The CBA forecast a rise of 8 per cent in the median house price over the course of this year, without taking the relaxed lending rules into account.
In any case, if you’re thinking about buying a home the proposed changes will make it easier to do so. Combined with record low interest rates and a swag of Government financial incentives, the time is right for home buyers to pounce!