29 Jul Record property prices lead to record loan sizes
The size of the average home loan climbed to a record $626,055 at the end of May, according to the Australian Bureau of Statistics. That was 7.1% higher than the year before.
Why have loan sizes become so large? Because home values have also been increasing. Australia’s median property price reached a record $794,000 in June, which was 8.0% higher than the year before, according to CoreLogic.
This can pose a challenge for consumers, because if you can’t get a large enough mortgage, you might not be able to buy your dream home.
That’s why it’s important you work with a mortgage broker.
You might not realise that the amount of money one bank is willing to lend you can be very different from the amount another will lend you; the gap can exceed $100,000, because banks assess risk differently and try to attract different types of customers. At Finestream, we work with a large and diverse panel of lenders, so we can negotiate, on your behalf, with lenders that are more likely to look favourably upon someone with your situation.
That way, you’ll improve your chances of qualifying for a great loan and buying your dream home.
Book a time to talk with us about your borrowing power.